The Swiss cabinet has rejected a comprehensive trade agreement with the EU, known as the EU-Swiss Institutional Framework Agreement. On May 26, the government said that there remain “substantial” differences between Switzerland and the EU and that the conditions for signing the agreement were not met, adding that it has informed the EU that negotiations are over. Trade between Switzerland and the EU is ruled by more than 100 bilateral agreements that will remain in effect. The EU had been pushing for an updated trade agreement, but the move was seen by the Swiss as infringing national sovereignty.
The European Commission said it regrets the decision ”given the progress that has been made over the last years to make the Institutional Framework Agreement a reality.” It also said that the agreement ”was intended as the foundation to enhance and develop EU-Swiss bilateral relations for the future. Its core purpose was to ensure that anyone operating in the EU Single Market, to which Switzerland has significant access, faces the same conditions. That is fundamentally a matter of fairness and legal certainty. Privileged access to the Single Market must mean abiding by the same rules and obligations.” It added that without this agreement, the modernization of the trade relationship ”will not be possible, and our bilateral agreements will inevitably age.” A trade agreement between the two parties was introduced in 1972 and updated 20 years ago after the Swiss voted in 1992 against joining the European Economic Area.
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