Brexit: UK, Switzerland reached trade agreement
The United Kingdom has reached an agreement with Switzerland that will allow it to continue trade without any additional tariffs after it leaves the European Union.
The Department for International Trade (DIT) says that trading on these preferential terms, rather than those set by the World Trade Organisation (WTO), will “deliver significant savings and help to safeguard British jobs”.
The UK is set to leave the EU on 29 March. Question marks linger over the departure date as Theresa May still struggles to strike a negotiated deal that can win the backing of parliament.
The trading relationship between the UK and Switzerland was worth £32.1bn in 2017.
DIT says that with the agreement the British car industry, which has consistently warned against a no-deal Brexit, could avoid up to £8m a year in tariff charges on their exports that would apply if the agreement had not been reached. Aluminium, metal and precious stones exporters could avoid up to £4m in tariff charges.
DIT says that with the agreement the British car industry, which has consistently warned against a no-deal Brexit, could avoid up to £8m a year in tariff charges on their exports that would apply if the agreement had not been reached. Aluminium, metal and precious stones exporters could avoid up to £4m in tariff charges.
However, the deal does not include financial services – the UK’s most valuable asset – as there is no comprehensive agreement between Switzerland and the EU on financial services.
Signing the agreement in Bern today, international trade secretary Liam Fox said: “Switzerland is one of the most valuable trading partners that we are seeking continuity for, accounting for more than £32bn worth of trade a year.
“Not only will this help to support jobs throughout the UK but it will also be a solid foundation for us to build an even stronger trading relationship with Switzerland as we leave the EU.”
Last year the government said it wanted to replicate the EU’s trade agreements “as far as possible”. At the World Economic Forum in Davos last month, Fox said the UK had agreed “in principle” a free trade agreement with Israel, while South Africa separately said it was close to signing a deal with the UK.
A similar continuity agreement has been announced with Israel, and “mutual recognition” deals have been agreed with Australia and New Zealand.
But the head of the Confederation of British Industry, Carolyn Fairbairn, said yesterday the “unfolding nightmare” of Britain’s exit meant that major trade partners like Japan and South Korea were reluctant to sign deals until they knew the exact shape of future EU-Britain ties.
“It will be the decisions that businesses take about jobs and investment — and they will reduce them — so you have less potential to trade globally, that will mean less investment in the future and that will mean fewer jobs in the future,” she told Sky News.