US, Switzerland, and Liechtenstein Announce Intent to Negotiate New Trade Agreement
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Today, the United States, Switzerland, and Liechtenstein announced their intention to negotiate an Agreement on Fair, Balanced, and Reciprocal Trade. The agreement aims to foster a dynamic and mutually beneficial trading relationship, driving job creation and economic growth within all three markets. Participants expressed a shared desire for fairer, easier, and more significant trade, alongside secure supply chains and a welcoming environment for high-quality investment.
Switzerland specifically committed to balancing trade with the US by increasing purchases of U.S.goods, encouraging investment in the US, and reducing tariff and non-tariff barriers. Negotiations are expected to begin promptly, with a goal of meaningful progress – and potential conclusion – by the first quarter of 2026, contingent upon domestic processes.
Key areas of focus for the negotiations include:
1. Investment, Commercial Considerations, and Opportunities
* Increased Investment: Switzerland aims to facilitate at least $200 billion in investment into the US across all 50 states over the next five years, focusing on manufacturing and R&D jobs. Liechtenstein intends to encourage at least $300 million in investment and a 50% increase in US jobs created by its private sector over the same period. One-third of these investments are targeted for completion by the end of 2026.The US will consider these investment efforts when applying reciprocal tariffs and will collaborate with Switzerland and Liechtenstein to promote further investment and job creation.
* Workforce Development: The Participants will encourage enterprises to develop training and apprenticeship programs, including Registered Apprenticeships, for U.S. workers in high-growth sectors.
* Addressing Trade Distortions: Switzerland, Liechtenstein, and the US will collaborate to address potential trade and investment distortions caused by industrial subsidies or state-owned enterprises.
* Facilitating Cross-Border Investment: the Participants intend to create an optimal environment for cross-border investments and job creation.
2. Tariffs
* Unified Treatment: Recognizing the existing customs agreement between Switzerland and Liechtenstein, the US intends to apply the same tariff treatment to both nations.
* Improved Market Access for US Goods: Switzerland and Liechtenstein plan to eliminate duties on all U.S. industrial goods, seafood, and select agricultural products, and implement tariff rate quotas for other U.S. agricultural goods.
* Reciprocal Tariffs: The US intends to apply a tariff of either its most-favored-nation (MFN) rate or 15% (MFN tariff plus a reciprocal tariff) on originating goods from Switzerland and Liechtenstein. certain products listed in the “Potential Tariff Adjustments for Aligned Partners” Annex to Executive Order 14346 will only be subject to the US MFN tariff rate.
* MFN and Section 232 Tariffs: The US intends to ensure consistent application of MFN tariffs and Section 232 tariffs (Trade Expansion Act of 1962).
US,Switzerland,and Liechtenstein Advance Trade and Economic Cooperation
On November 14,2024,the United States,Switzerland,and Liechtenstein announced intentions to deepen their trade and economic partnership through a series of commitments focused on reducing trade barriers,promoting digital trade,and enhancing economic security. This agreement, while not legally binding, signals a strengthened relationship between these nations and a shared approach to global economic challenges.
Trade Facilitation and Government Procurement
the core of the agreement centers on streamlining trade processes and improving access to government procurement opportunities.Key commitments include:
* Enhanced Customs Cooperation: The US and Switzerland aim to leverage technology for faster, more efficient border procedures. This includes implementing full pre-arrival processing, paperless trade systems, and digitized customs procedures. https://ustr.gov/news/united-states-switzerland-and-liechtenstein-announce-intent-deepen-trade-and-economic-partnership
* Government Procurement Access: The agreement expands reciprocal access to government procurement markets.Importantly, it clarifies that countries not party to these agreements will not receive the same non-discriminatory treatment in central government procurement, and that participating nations may implement further measures within their national procurement frameworks to ensure this. https://ustr.gov/news/united-states-switzerland-and-liechtenstein-announce-intent-deepen-trade-and-economic-partnership
Digital Trade and Technology
Recognizing the growing importance of the digital economy, the agreement outlines several initiatives to foster cross-border digital trade:
* Digital Services Tax moratorium: Switzerland and Liechtenstein reaffirm their commitment to refrain from imposing digital services taxes. This aligns with ongoing international efforts to establish a unified approach to taxing the digital economy.
* Data Flows and Interoperability: The participants intend to facilitate secure and trusted cross-border data flows, addressing data localization requirements while respecting legitimate public policy objectives. They also plan to explore ways to improve interoperability between their respective data privacy frameworks, aiming to simplify secure data transfers.
* Electronic Transmission Duty Moratorium: The US, Switzerland, and Liechtenstein support extending the existing moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO). This moratorium is crucial for maintaining the free flow of digital information and services.https://www.wto.org/english/tratop_e/ecom_e/moratorium_e.htm
Economic Security
The agreement also addresses concerns related to economic security and resilience:
* Addressing Non-Market Policies: The participants commit to strengthening cooperation in addressing non-market policies and practices employed by third countries that may distort trade and investment.
* Sanctions Enforcement: Recognizing the importance of coordinated action, the US, Switzerland, and Liechtenstein intend to enhance cooperation regarding the enforcement of economic and trade sanctions. This includes strengthening collaboration on U.S. export controls.
* Investment Review and Supply Chain Security: Switzerland and Liechtenstein will cooperate with the United States on reviewing inbound investments based on national security considerations. They also plan to work together to secure and improve the resilience of supply chains in sectors of mutual interest.
Implementation and Legal Status
The participants intend to coordinate the timing of their domestic processes to ensure the effective implementation of the agreement. It is crucial to note that this document is not a legally binding treaty. It represents a statement of intent and a framework for future cooperation. https://ustr.gov/news/united-states-switzerland-and-liechtenstein-announce-intent-deepen-trade-and-economic-partnership
This agreement underscores the commitment of the United States, Switzerland, and Liechtenstein to fostering a more open, secure, and predictable global economic environment.
date: 2025-11-15 02:56:00