EU - Switzerland : the road ahead

An intricate network of agreements

Beyond the mere geography, Switzerland and the EU have developed a close trade and political relationship, based on more than 100 bilateral agreements. Over time, the relationship has been marked by ups and downs. Switzerland has been seeking an increased access to the EU market, whilst rejecting any adhesion to the bloc or the European Economic Area and striving to maintain the specificities of its political system and its sovereignty. The EU has been keen on deepening the relation, though at the same time endeavoring to ensure the integrity of the Single Market. 

The EU and Switzerland started negotiations on an institutional framework agreement in 2014. Divergences in visions and interests, misunderstandings and political calculations, among other, resulted in the negotiations dragging on for years and getting stuck in a quagmire in 2021.

The way forward

After 10 years of a highly sinuous journey, at the end of last year the EU and Switzerland finally reached a consensus, in the form of a package of agreements which seeks to:

• Settle institutional issues, by inserting institutional clauses in the market access agreements

• Ensure the association of Switzerland to Horizon Europe, after 4 years of exclusion from the EU research and innovation program

• Reinforce cooperation in different areas, incl. health, with a focus on cross-border threats and Switzerland’s involvement in the ECDC activities

• Lay down the foundations for a structured political dialogue

  
  

Until the package is formally adopted, transitional rules are applying. The Swiss Federal Council is currently carrying out a public consultation on the implementing measures and is expected to adopt the dispatch to Parliament in Q1 2026. The European Commission presented in June draft Council decisions for the conclusion and signing of the agreements.

The agreement is an essential step to stabilize a troubled relationship, but additional efforts will be needed to maintain the close trade and political ties. 

Finding stability in an erratic world

Both parties have an interest in the continuous deepening of bilateral trade, as the EU is Switzerland’s largest trading partner and Switzerland is the EU’s 4th largest partner. The ongoing trade war waged by the US strengthens the yearning for certainty. The unexpected 39% tariff which slapped most Swiss exports as of 7 August reinforces the necessity for Switzerland to ensure unimpeded access to other key markets. This is particularly true for pharmaceuticals, the main driver of Swiss exports, as President Trump threatened to impose tariffs of up to 250%, pending the outcome of the ongoing Section 242 investigation by the Department of Commerce, which is due by the end of the year.