Switzerland signs free trade agreement with Mercosur states
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Switzerland signs free trade agreement with Mercosur states
Swiss Economics Minister Guy Parmelin and representatives of the other European Free Trade Association states (EFTA) signed the free trade agreement with the Mercosur states in Rio de Janeiro on Tuesday. It enables “significant customs savings” for Swiss companies.
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The signing of the free trade agreement between the four EFTA states Switzerland, Iceland, Liechtenstein, Norway and Mercosur (Argentina, Brazil, Paraguay and Uruguay) is a significant milestone in Swiss trade policy, announced the Federal Department of Economic Affairs, Education and Research (EAER) on Tuesday evening.
After 14 rounds of negotiations, an agreement has been reached. With 270 million consumers, Mercosur is already an attractive target market with considerable growth potential for the Swiss export industry. According to the EAER, Switzerland exported goods worth more than CHF4 billion ($5.08 billion) to the four Mercosur states in 2024, an increase of over a third compared to 2014.
The agreement corresponds to the EFTA free trade agreement recently concluded with third countries and has a comprehensive sectoral scope. Once the transitional periods have expired, around 96% of Swiss exports to the Mercosur states will be fully exempt from customs duties under the agreement.
In view of the high tariffs in the Mercosur states, the free trade agreement will therefore enable “significant tariff savings for Swiss companies of over CHF155 million per year”. This means that, alongside the agreements with the EU and China, it offers the greatest potential for tariff savings of all Swiss free trade agreements and is in a similar range to the agreement with India.
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Switzerland grants the Mercosur states a total of 25 bilateral import quotas for sensitive agricultural products, including meat. Most of the quotas are limited (less than 2% of total Swiss consumption) or their volume corresponds to current imports. They are therefore manageable for Swiss agriculture.
The agreement also removes technical barriers to trade and protects intellectual property, including designations of origin such as “Gruyère”. It also facilitates market access for Swiss service providers and investors, creates new opportunities in public procurement and generally strengthens bilateral economic relations, the EAER added.
It also contains a comprehensive, legally binding chapter and an additional declaration on trade and sustainable development.
Translated from German by DeepL/jdp
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