WT/TPR/S/425 /Rev.1  
28 September  2022 
(22-7215) Page: 1/204 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
SWITZERLAND AND LIECHTENSTEIN  
Revision  
This report, prepared for the sixth joint Trade Policy Review of Switzerland and Liechtenstein, has 
been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by 
the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh 
Agreement Establishing the World Trade Organization), sought clarification from Switzerland and 
Liechtenstein on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Mr  Mark Koulen 
(tel. 022 739 5224), Mr  Pierre  Latrille (tel.  022 739 5266), Ms  Katie Waters (tel.  022 739 5067), 
Mr Michael  Kolie (tel.  022 739 5931), and Ms Takako  Ikezuki ( tel. 022 739 5534).  
 
Document WT/TPR/G/425 contains the policy statement s submitted by Switzerland and 
Liechtenstein.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.   WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 2 - 
 
 CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  9 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  15 
1.1   Main Features of the Economy  ................................ ................................ ..................... 15 
1.1.1    Switzerland  ................................ ................................ ................................ ............. 15 
1.1.2    Liechtenstein  ................................ ................................ ................................ ........... 16 
1.2   Recent Economic Developments  ................................ ................................ ................... 17 
1.2.1    Switzerland  ................................ ................................ ................................ ............. 17 
1.2.2    Liechtenstein  ................................ ................................ ................................ ........... 19 
1.2.2.1    Fiscal policy  ................................ ................................ ................................ .......... 19 
1.2.2.2    Monetary policy and exchange rate  ................................ ................................ ......... 20 
1.2.2.3    Balance of payments  ................................ ................................ ............................. 22 
1.3   Structural Challenges  ................................ ................................ ................................ ..24 
1.3.1    Switzerland  ................................ ................................ ................................ ............. 24 
1.3.2    Liechtenstein  ................................ ................................ ................................ ........... 27 
1.4   Developments in Trade and Investment  ................................ ................................ ........ 27 
1.4.1    Trends and patterns in merchandise and services trade  ................................ ................ 27 
1.4.2    Trends and patterns in FDI  ................................ ................................ ....................... 33 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  34 
2.1   General Framework  ................................ ................................ ................................ ....34 
2.1.1   Switzerland  ................................ ................................ ................................ ............. 34 
2.1.2    Liechtenstein  ................................ ................................ ................................ ........... 36 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 37 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 38 
2.3.1    WTO ................................ ................................ ................................ ...................... 38 
2.3.2    Regional trade agreements (RTAs)  ................................ ................................ ............. 42 
2.3.2.1    Switzerland and Liechtenstein Customs Union ................................ ........................... 42 
2.3.2.2    European Free Trade Association (EFTA)  ................................ ................................ ..43 
2.3.2.3    European Economic Area (EEA)  ................................ ................................ ............... 45 
2.3.2.4    Switzerland's bilateral agreements with the European  Union ................................ .......47 
2.3.2.5    Switzerland's bilateral agreements with other trading partners  ................................ ...49 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 50 
2.3.3.1    Non-reciprocal preferential arrangements  ................................ ................................ 50 
2.4   Investment Regime and Business Environment  ................................ .............................. 50 
2.4.1    Switzerland  ................................ ................................ ................................ ............. 50 
2.4.2    Liechtenstein  ................................ ................................ ................................ ........... 53 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  55 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 55 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 55 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 58 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 3 - 
 
 3.1.3    Tariffs  ................................ ................................ ................................ .................... 58 
3.1.3.1    Applied MFN tariff  ................................ ................................ ................................ .58 
3.1.3.2    Tariff rate quotas  ................................ ................................ ................................ ..61 
3.1.3.3    Bound duties  ................................ ................................ ................................ ........ 63 
3.1.3.4    Other duties and charges  ................................ ................................ ....................... 63 
3.1.3.5    Tariff exemptions and reductions  ................................ ................................ ............ 64 
3.1.3.6    Tariff preferences  ................................ ................................ ................................ ..66 
3.1.4    Import prohibitions, restrictions, and licensing  ................................ ............................ 69 
3.1.5    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 71 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 72 
3.2.1    Customs procedures and requirements  ................................ ................................ .......72 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 72 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 73 
3.2.4    Export support and promotion  ................................ ................................ ................... 75 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..76 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......78 
3.3.1    Taxation and incentives  ................................ ................................ ............................ 78 
3.3.1.1    Corporate income tax  ................................ ................................ ............................ 78 
3.3.1.2    Indirect taxes  ................................ ................................ ................................ .......79 
3.3.1.2.1   VAT ................................ ................................ ................................ .................. 80 
3.3.1.2.2    Excises  ................................ ................................ ................................ ............. 81 
3.3.1.3    Incentives and other assistance  ................................ ................................ .............. 84 
3.3.1.3.1    Switzerland  ................................ ................................ ................................ .......84 
3.3.2   Standards and other technical requirements  ................................ ............................... 87 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....91 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 94 
3.3.4.1    Competition policy – Switzerland  ................................ ................................ ............ 94 
3.3.4.2    Competition policy – Liechtenstein  ................................ ................................ .......... 97 
3.3.4.3    Price controls – Switzerland  ................................ ................................ .................... 97 
3.3.4.4    Price controls – Liechtenstein  ................................ ................................ ................. 98 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 98 
3.3.6    Government procurement  ................................ ................................ .......................  101 
3.3.6.1    Overview  ................................ ................................ ................................ ...........  101 
3.3.6.2    Switzerland  ................................ ................................ ................................ ........  102 
3.3.7    Intellectual property rights  ................................ ................................ ......................  104 
3.3.7.1    Trade -related intellectual property rights  ................................ ...............................  104 
3.3.7.2    Economic context  ................................ ................................ ................................  106 
3.3.7.3    Structure and use of the IP system  ................................ ................................ ....... 107 
3.3.7.4    International initiatives and WTO participation  ................................ ........................  108 
3.3.7.5    Copyright and related rights  ................................ ................................ .................  110 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 4 - 
 
 3.3.7.6    Trademarks  ................................ ................................ ................................ ........  111 
3.3.7.7    Geographical indications  ................................ ................................ ......................  112 
3.3.7.8    Patents  ................................ ................................ ................................ ..............  113 
3.3.7.9    Plant varieties  ................................ ................................ ................................ .... 114 
3.3.7.10    Enforcement  ................................ ................................ ................................ ..... 114 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  116  
4.1   Agriculture  ................................ ................................ ................................ ...............  116 
4.1.1    Overview and recent policy developments  ................................ ................................ . 116 
4.1.2    Market access  ................................ ................................ ................................ ....... 119 
4.1.2. 1   Applied MFN tariffs  ................................ ................................ ..............................  119 
4.1.2.1.1    Tariff escalation  ................................ ................................ ...............................  119 
4.1.2.1.2    Adjustable tariffs  ................................ ................................ ..............................  119 
4.1.2.1.3    Seasonal tariffs  ................................ ................................ ................................  120 
4.1.2.1.4    Tariff quotas  ................................ ................................ ................................ .... 121 
4.1.3    Domestic support ................................ ................................ ................................ ... 121 
4.1.3.1    Direct payments  ................................ ................................ ................................ . 122 
4.1.3.2    Market support measures  ................................ ................................ .....................  125 
4.1.3.3    Milk ................................ ................................ ................................ ...................  126 
4.1.3.4    Grains, oilseeds, and sugar  ................................ ................................ ..................  126 
4.1.4    Export subsidies  ................................ ................................ ................................ .... 127 
4.1.5    Evolution of support  ................................ ................................ ...............................  128 
4.2   Mining and Energy  ................................ ................................ ................................ .... 129 
4.2.1    Mining  ................................ ................................ ................................ ..................  129 
4.2.1.1    Switzerland  ................................ ................................ ................................ ........  129 
4.2.1.2    Liechtenstein  ................................ ................................ ................................ ...... 129 
4.2.2    Energy  ................................ ................................ ................................ .................  130 
4.2.2.1    Switzerland  ................................ ................................ ................................ ........  130 
4.2.2. 1.1   Economic developments  ................................ ................................ ....................  130 
4.2.2.1.2    Policy developments  ................................ ................................ .........................  135 
4.2.2.1.2.1    Environmental issues  ................................ ................................ .....................  135 
4.2.2.1.2.2    Electricity  ................................ ................................ ................................ ..... 137 
4.2.2.1.2.3    Nuclear energy  ................................ ................................ ..............................  140 
4.2.2.1.2.4    Renewable energies (including hydropower)  ................................ .....................  140 
4.2.2.1.2.5    Oil ................................ ................................ ................................ ...............  140 
4.2.2.1.2.6    Gas ................................ ................................ ................................ .............  141 
4.2.2.2    Liechtenstein  ................................ ................................ ................................ ...... 142 
4.3   Manufacturing  ................................ ................................ ................................ ..........  143 
4.3.1    Switzerland  ................................ ................................ ................................ ...........  143 
4.3.2    Liechtenstein  ................................ ................................ ................................ .........  146 
4.4   Services  ................................ ................................ ................................ ..................  147 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 5 - 
 
 4.4.1    Telecommunications services  ................................ ................................ ..................  147 
4.4.1.1    Switzerland  ................................ ................................ ................................ ........  147 
4.4.1.2    Liechten stein ................................ ................................ ................................ ...... 153 
4.4.2    Financial services  ................................ ................................ ................................ ... 157 
4.4.2.1    Switzerland  ................................ ................................ ................................ ........  157 
4.4.2. 1.1   Overview of the economic evolution and of the market structure of the financial 
services sector  ................................ ................................ ................................ .................  157 
4.4.2.1.1.1    Overview o f the economic evolution and of the market structure of banking services
 ................................ ................................ ................................ ................................ ..... 158 
4.4.2.1.1.2    Overview of the economic evolution and  of the market structure of insurance services
 ................................ ................................ ................................ ................................ ..... 159 
4.4.2.1.1.3    Overview of the economic evolution and of the market structure of pension fund 
services and stock exchange and securities services  ................................ .............................  160 
4.4.2.1.2    Evolution of the overall regulatory framework  ................................ ......................  160 
4.4.2.1.2.1    Regulatory framework for banking services  ................................ .......................  161 
4.4.2.1.2.2    Regulatory framework for insurance services  ................................ ....................  163 
4.4.2.1.2.3    Regulatory framework for financial market infrastructures  ................................ .. 165 
4.4.2.1.2.4    Regulato ry framework for pension fund services  ................................ ................  166 
4.4.2.1.2.5    Regulatory framework for mutual fund services  ................................ .................  166 
4.4.2.1.2.6    Regulatory framework for fintech  ................................ ................................ .... 167 
4.4.2.2    Liechtenstein  ................................ ................................ ................................ ...... 168 
4.4.2.2.1    Overview of economic and regulatory developments in the financial services sector .. 168 
4.4.2.2.1.1    Economic and regulatory developments in the asset management and investment 
undertakin gs sector  ................................ ................................ ................................ ..........  170 
4.4.2.2.1.2    Economic and regulatory developments in the insurance sector  ...........................  171 
4.4.2.2.1.3    Economic and regulatory developments in the fintech e -payments and 
cryptocurrencies sector  ................................ ................................ ................................ ..... 172 
4.4.3    Transport services  ................................ ................................ ................................ . 174 
4.4.3.1    Switzerland  ................................ ................................ ................................ ........  174 
4.4.3. 1.1   Surface transport services  ................................ ................................ .................  174 
4.4.3.1.1.1    Road transport services  ................................ ................................ ..................  174 
4.4.3.1.1.2    Railway transport services  ................................ ................................ ..............  175 
4.4.3.1.1.3    Pipeline transport services  ................................ ................................ ..............  176 
4.4.3.1.1.4    Inland waterways transport services  ................................ ................................  176 
4.4.3.1.1.5    Maritime transport services  ................................ ................................ ............  177 
4.4.3.1.1.6    Freight forwarding and logistics services  ................................ ...........................  178 
4.4.3.1.1.7    Air transport services  ................................ ................................ .....................  179 
4.4.3.2    Liechtenstein  ................................ ................................ ................................ ...... 182 
4.4.3.2.1    Road freight and passenger transport services  ................................ .....................  182 
4.4.3.2.2    Rail transport services  ................................ ................................ ......................  182 
4.4.3.2.3    Air transport services  ................................ ................................ ........................  183 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 184  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 6 - 
 
 CHARTS  
 
Chart 1.1 Gross domestic product by economic activity for Switzerland, 2020  ........................... 15 
Chart 1.2 Gross domestic product by economic activity for Liechtenstein, 2019  ......................... 16 
Chart 1.3 Federal revenues, 2020  ................................ ................................ ........................ 20 
Chart 1.4 Product composition of merchandise trade, 2016 and 2020  ................................ .......30 
Chart 1.5 Direction of merchandise trade, 2016 and 2020  ................................ ....................... 31 
Chart 3.1 Breakdown of estimated applied MFN tariffs, 2016 and 2021  ................................ .....61 
Chart 3.2 Breakdown of applied MFN and preferential tariffs, 2021  ................................ ........... 67 
Chart 3.3 Swiss imports by tariff regimes, 2020  ................................ ................................ .....69 
Chart 3.4 The positive relationship between innova tion and development ................................  105 
Chart 3.5 Charges for the use of intellectual property, n.i.e, 2015 -20 ................................ ..... 106 
Chart 4.1 Level and composition of support to agricultural producers  ................................ ..... 129 
Chart 4.2 Gross energy consumption by source, 2015 and 2020  ................................ ............  133 
Chart 4.3 Electricity generation by source, 2015 and 2020  ................................ ....................  134 
Chart 4.4 Total CO 2 emissions, 2015 -19 ................................ ................................ .............  135 
Chart 4.5 Types of plants and measures financed by the grid surcharge ................................ .. 139 
Chart 4.6 Energy consumption, 2020  ................................ ................................ ..................  142 
Chart 4.7 Production structure  ................................ ................................ ...........................  144 
Chart 4.8 Employment share of manufacturing, 2000 -21 ................................ ......................  145 
Chart 4.9 Domestic and international passenger flights,  
January to December 2019 and 2020  ................................ ................................ .................  180 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators for Switzerland, 2016 -20 ................................ ....17 
Table 1.2 Selected macroeconomic indicators for Liechtenstein, 2016 -20 ................................ ..19 
Table 1.3 Balance of payments, 2016 -20 ................................ ................................ .............. 23 
Table 1.4 Trade in services by sector and destination/origin , 2016 -20 ................................ ......32 
Table 2.1 Selected referenda and popular initiatives, 1  January  2017 to 31  January  2022 ........... 34 
Table 2.2 Main trade and investment -related laws in Switzerland, January 2022  ........................ 35 
Table 2.3 Main trade and investment -related laws in Liechtenstein, January 2022  ...................... 36 
Table 2.4 Notifications made by Switzerland to the WTO, 1  January  2017 to 31  January  2022 .....39 
Table 2.5 Notifications made by Liechtenstein to the WTO, 1  January  2017 to 31  January  2022 ...41 
Table 2.6 Switzerland's main bilateral agreements with the European  Union, 2021  ..................... 48 
Table 3.1 Main customs -related laws and regulations, January 2022  ................................ ........ 55 
Table 3.2 Physical inspections on imports by customs, 2017 -21 ................................ ............... 57 
Table  3.3 Structure of MFN tariffs, 2021  ................................ ................................ ............... 60 
Table  3.4 Preferential tariff rate quotas, by tariff regime, 2021  ................................ ................ 62 
Table  3.5 Guarantee fund c ontributions, 2021  ................................ ................................ .......63 
Table 3.6 Guarantee fund contributions, applied tariffs and bound tariffs  ................................ ..64 
Table 3.7 Suspension of customs duties in the textiles sector, 2015 -19 and 2019 -23 ................. 65 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 7 - 
 
 Table 3.8 Key features of tariff exemptions and reductions, 2021  ................................ ............. 65 
Table 3.9 Tariffs under preferential agreements, 2021  ................................ ............................ 67 
Table 3.10 Selected products subject to import prohibitions,  2021 ................................ ........... 70 
Table 3.11 Physical inspections on exports by customs, 2017 -21 ................................ ............. 72 
Table 3.12 Selected export controls in Switzerland and Liechtenstein, January 2022  .................. 73 
Table 3.13 Export finance, insurance, and guarantee products available from SERV, 2021  .......... 77 
Table 3.14 Liechtenstein corporate taxes and other selected taxes  ................................ ........... 79 
Table 3.15 Taxation of alcoholic beverages  ................................ ................................ ............ 84 
Table 3.16 Competition enforcement statistics 2018 -20 ................................ .......................... 96 
Table 3.17 Government procurement in Switzerland, 2016 -20 ................................ ...............  103 
Table 3.18 Switzerla nd: Applications for trademarks, industrial designs, and patents,  
and patents granted, 2016 -20 ................................ ................................ ...........................  108 
Table 3.19 Liechtenstein: Applic ations for trademarks, industrial designs, and patents,  
and patents granted, 2016 -20 ................................ ................................ ...........................  108 
Table 4.1 Farms according to size classes, 2019 and 2020  ................................ ....................  116 
Table 4.2 Direct payments, 2017 -20 ................................ ................................ ..................  123 
Table 4.3 Liechtenstein's direct payments, 2016 -20 ................................ .............................  125 
Table 4.4 Market support and direct payments, 2017 -20 ................................ .......................  125 
Table 4.5 Crop premiums 2017 -19 ................................ ................................ .....................  127 
Table 4.6 OECD PSE for Switzerland, 2016 -20 ................................ ................................ ..... 128 
Table 4.7 Energy balance of Switzerland, 2015 -20 ................................ ...............................  130 
Table 4.8 Imports of petroleum oils, 2015 -20 ................................ ................................ ...... 131 
Table 4.9 Imports of gas, 2015 -20 ................................ ................................ .....................  132 
Table 4.10 Imports of coal, 2015 -20 ................................ ................................ ..................  132 
Table 4.11 Imports of electrical energy, 2015 -20 ................................ ................................ . 132 
Table 4.12 Transformation process of primary energy supply, 2020  ................................ ....... 133 
Table 4.13 Final energy consumption, 2020 ................................ ................................ .........  135 
Table 4.14 Contribution to GVA of the various manufacturing subsectors, 2016 -20 ..................  144 
Table 4.15 Contrib ution to employment of the various manufacturing subsectors, 2016 -21 ....... 145 
Table 4.16 Structure of employment in the manufacturing sect or by company size, 2020  .........  147 
Table 4.17 Evolution of the contribution of the telecommunications and ICT sectors  
to GVA and to total employment, 2015 -20 ................................ ................................ ..........  148 
Table 4.18 Telecom tariffs, 2015 -20 ................................ ................................ ...................  149 
Table 4.19 Access/interconnection rates, 2015 -20................................ ................................  149 
Table 4.20 Retail mobile roaming rates, Q4  2020 ................................ ................................ . 149 
Table 4.21 ICT prices trends by type of basket, 2020  ................................ ...........................  149 
Table 4.22 Contribution of the financial services sector and its subsectors  
to GVA and total employment, 2014 -20 ................................ ................................ ..............  157 
Table 4.23 Evo lution of main indicators of the banking system, 2015 -20 ................................ . 169 
Table 4.24 Passenger and freight traffic handled at Swiss international  
airports, 2015 and 2020  ................................ ................................ ................................ ... 179 
Table 4.25 Main features of recent air transport agreements  ................................ .................  181 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 8 - 
 
  
BOXES  
 
Box 2.1 Liechtenstein's Market Control and Surveillance Mechanism  ................................ ......... 46 
Box 4.1 Measures to reduce nitrogen and phosphorus losses through the direct payments  
system and the reduction of the risk associated with the use of pesticide s in Switzerland  ..........  124 
Box 4.2 Main economic indicators of Switzerland's telecommunications sector  .........................  148 
Box 4.3 Switzerland telecommunications market structure  ................................ ....................  150 
Box 4.4 Telecom sector  ................................ ................................ ................................ .... 154 
Box 4.5 Ev olution of the market structure and of the main economic indicators of  
the banking sector  ................................ ................................ ................................ ...........  158 
Box 4.6 Evolution of the market structure and of the main economic indicators  
of the insurance sector  ................................ ................................ ................................ ..... 159 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise imports by product group for Switzerland, 2016 -20 ...........................  184 
Table A1.2 Merchandise exports by product group for Switzerland, 2016 -20 ............................  185 
Table A1.3 Merchandise imports by origin for Switzerla nd, 2016 -20 ................................ ....... 186 
Table A1.4 Merchandise exports by destination for Switzerland, 2016 -20 ................................  187 
Table A1.5 Merchandise imports by origin for Liechtenstein, 2016 -20 ................................ ..... 188 
Table A1.6 Merchandise exports by destination for Liechtenstein, 2016 -20 ..............................  189 
Table A1.7 FDI by economic activity, 2016 -20 ................................ ................................ ..... 190 
Table A1.8 Foreign direct investment by selected trading partners, 2016 -20 ...........................  192 
 
 
Table A2.1 Switzerland and Liechtenstein's RTAs in force, January 2022  ................................ . 194 
Table A2.2 Work and residence permits: rules and procedures for EU/EFTA citizens,  
January 2022  ................................ ................................ ................................ ..................  196 
 
 
Table A3.1 MFN applied tariff summary, 2021  ................................ ................................ ...... 197 
Table A3.2 Swiss imports by preferential tariff regimes, 2020  ................................ ................  199 
 
 
Table A4.1 Switzerland's major traded agricultural products, 2016 -20 ................................ .... 201 
Table A4.2 WTO tariff quotas for agricultural products  ................................ ..........................  203 
 
 
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 9 - 
 
 SUMMARY  
1. Switzerland and Liechtenstein are among the top high -per capita income countries in the world 
and are very well integrated into international trade. They both benefit from stron g democratic 
institutions, educated populations, and a specialization in value -added production. Their fiscal 
situation is sound and their unemployment traditionally low. Services account for about three 
quarters of the Swiss economy. One particularity of the Liechtenstein economy is the importance of 
manufacturing, representing 40% of GDP in 2019. During the review period, and prior to the 
COVID -19 pandemic, real GDP growth in Switzerland was positive, ranging from 1.2% in 2019 to 
2.9% in 2018. GDP growth in Liechtenstein tends to be more volatile because of the small size of 
the economy. After three years of real GDP growth, Liechtenstein's GDP contracted by 2.3% in 2019. 
Because of the COVID -19 pandemic, real GDP growth fell by 2.4% in 2020 in Switzerland , and 
further in Liechtenstein. Thanks to strong financial buffers and a prompt response by the 
Governments, the pandemic is not expected to have negative effects on long -term economic 
prospects.  
2. Switzerland has recorded fiscal surpluses in most years sinc e 2016. The application of a debt 
brake rule has meant that government spending and liabilities remain far below the average OECD 
level. The impact of the COVID -19 pandemic resulted in a change from a fiscal surplus of 1.3% in 
2019 to a fiscal deficit of 2 .8% in 2020. In recent years, the Swiss National Bank pursued a very 
accommodative monetary policy, mainly through a negative interest rate and, where necessary, 
foreign exchange market interventions. It played an important role in crisis management in the  
context of the COVID -19 pandemic, for example, by intervening more strongly in foreign exchange 
markets to counter the upward pressure on the Swiss franc. Issues that have been raised regarding 
Swiss monetary policy include the increasing difficulty of ac hieving the price stability objective and 
the need to address certain structural factors that account for the persistent appreciation pressures 
faced by the Swiss franc since the 2008 -09 financial crisis.  
3. While Switzerland and Liechtenstein enjoy favourabl e economic conditions, they also face 
similar challenges, including the ageing of the population, low productivity growth, adaptation to 
digitalization, climate change, and risks posed by high levels of household debt.  
4. Switzerland's current account remaine d in surplus but overall declined steadily between 2016 
and 2019 and registered a very sharp decline in 2020. The long -term evolution of the structure of 
Swiss merchandise exports reveals a growing specialization in certain product sectors that are 
relatively unaffected by exchange rate movements. Chemical and pharmaceutical products now 
account for more than half of Swiss merchandise exports. While the trade goods balance reached a 
record surplus in 2020, the services trade balance continued its lon g-term decline. Europe continues 
to account for more than 70% of Swiss merchandise imports and more than 50% of its merchandise 
exports, although in the long term its share in Swiss merchandise imports and exports has declined 
somewhat. In the case of Liec htenstein, 78% of merchandise imports (excluding trade with 
Switzerland) originate in Europe and 61% of merchandise exports (excluding trade with Switzerland) 
are destined for Europe. Switzerland ranks among the world's top 10 economies in terms of inward 
and outward foreign direct investment (FDI) stock, with an inward FDI stock that is heavily 
concentrated in services. FDI inflows to Switzerland have fallen since 2015 and were negative in 
2018-20. The recent negative FDI inflows reflect the conduit nature  of Switzerland's annual FDI 
inflows, as FDI in Switzerland is made mainly through intermediate companies in European holding 
companies.  
5. Given the two countries' limited domestic markets and export orientation, trade policy in both 
is focused on promoting and guaranteeing open markets, with an increased emphasis on sustainable 
development. Both countries are active members of the WTO, supporting the Buenos  Aires 
Declaration on Women and Trade and participating in the joint statement initiatives (JSIs) on 
e-commerce, MSMEs, and domestic regulation of trade in services. In addition, Switzerland 
participates in the JSI on investment facilitation for development. Over the review period, 
Switzerland was involved in one WTO dispute settlement case as complainant. Both countries 
maintain a solid record of notifications to the WTO, with those outstanding only in the areas of tariff 
quotas and domestic support, for both countries, and subsidies for Switzerland. Notifications are 
also pending for some RTAs.  
6. Switzerland  and Liechtenstein form a customs union; they have a common currency; and their 
policies are aligned in various other areas. Both economies are members of the European Free Trade WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 10 - 
 
 Association (EFTA) under the auspices of which they have concluded an extensi ve range of RTAs 
(29 RTAs with 39  economies). Liechtenstein is in a unique position due to its participation in the 
Customs Union with Switzerland (which covers goods) and its simultaneous membership in the 
European Economic Area (EEA). Over the review per iod, new EFTA RTAs entered into force with 
Georgia, the Philippines, Ecuador, and Indonesia, and existing EFTA RTAs with Israel and Turkey 
were revised. Switzerland concluded a new RTA with the United  Kingdom (with application of goods 
aspects to Liechtens tein). Another RTA was concluded between EEA -EFTA members and the 
United  Kingdom (with non -goods aspects applying to Liechtenstein)).  
7. In May  2021, Switzerland announced its decision not to sign the Institutional Framework 
Agreement with the European  Union,  largely due to concerns about wage protection and state aid. 
Since this Agreement was to encompass and upgrade the extensive set of bilateral agreements in 
place, the failure to reach agreement on the framework has raised questions about the future of 
those bilateral agreements, including, for example, the mutual recognition agreement between 
Switzerland and the European  Union -EEA. 
8. Both Switzerland and Liechtenstein are open to investment, with few restrictions on FDI, 
although state monopolies operate in a few areas. The Swiss Federal Council is drafting a law on the 
control of foreign investments, which will be published for consultations at the end of March  2022.  
9. Over the review period, Switzerland and Liechtenstein launched strategies to digitally 
transform government services and render them more efficient and cost -effective. Switzerland is 
also taking steps to reform legal and regulatory processes, including through the issuance of new 
regulatory impact assessment guidelines and the launch of consultat ions on a new Business Relief 
Act. Liechtenstein revised its Business Act to introduce simplified registration procedures for certain 
types of business activity.  
10. A major customs reform initiative is ongoing in Switzerland; its objective is to meet future 
challenges of increased traffic and trade as well as to take advantage of digitalization opportunities. 
This will result in, inter alia, enhanced customs security measures and the introduction of a 
fully-fledged single window system (Passar) to replace the existing systems (e -dec and the New 
Computerized Transit System (NCTS)). Switzerland undertakes customs clearance operations, 
including the collection of taxes and duties, at Liechtenstein's customs posts on its behalf.  
11. The Switzerland -Liechtenstein tariff  is fully composed of specific rates. The simple average 
tariff in 2021 was 7.2% based on AVE estimates. High tariffs prevail on agricultural products (simple 
average applied tariff of 25.4%, with tariffs ranging from 0% to 671.3%). Highest tariffs apply t o 
out-of-quota imports of fresh or chilled lollo lettuce. Tariff quotas apply to a number of agricultural 
products, comprising 3.7% of all tariff lines in 2021 (down from 3.8% in 2016). Seasonal tariffs 
apply to 95 products and are levied mostly on fruits and vegetables produced domestically, and most 
of which are also subject to tariff quotas. As at the time of the previous Review, applied MFN tariffs 
may exceed bound rates for certain goods due to fees levied on imports by compulsory stock 
organizations.  
12. During the review period, temporary tariff reductions were granted on certain feed items, 
medical goods, and textiles and intermediate materials to respond to emergency situations or 
respond to industry needs. The Swiss Government has announced that all du ties on industrial goods 
will be eliminated on 1  January  2024.  
13. As at the time of the previous Review, Switzerland and Liechtenstein apply import and export 
prohibitions and restrictions largely for reasons of security, health, and protection of the 
environ ment. Additionally, some import and export prohibitions are applied related to sanctions. 
Temporary export controls were introduced between March and June  2020 for certain goods related 
to the COVID -19 pandemic. Neither Switzerland nor Liechtenstein has an y specific legislation on 
contingency measures; they have no specialized authorities in place to initiate and conduct 
anti-dumping and countervailing investigations; and they have no anti -dumping, countervailing, or 
safeguard measures in place.  
14. No export t axes or duties are levied. Switzerland Global Enterprise, a private non -profit 
association mandated by the State Secretariat for Economic Affairs, continues to help SMEs in 
Switzerland and Liechtenstein to export their products and services; over the revie w period, it WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 11 - 
 
 formed new partnerships and expanded its services. Swiss Export Risk Insurance (SERV) continues 
to provide export finance and insurance services to companies registered in Switzerland where there 
is a gap in private -sector provision; in respon se to the COVID -19 pandemic, it simplified certain 
processes to assist exporters. Export finance, insurance, and guarantees are provided only by the 
private sector in Liechtenstein.  
15. During the period under review, Switzerland and Liechtenstein implemented new reforms to 
comply with international standards on corporate income tax. Consequently, the European  Union 
withdrew both countries from its taxation grey list. While competitive corporate tax regimes have 
been one of the countries' strengths, both Govern ments raised concerns about the implementation 
of the future international corporate tax framework. However, they indicated that other features of 
their economies and additional measures will maintain their attractiveness for companies. 
Switzerland and Lie chtenstein apply similar excise taxes on products causing a risk to human health 
or to the environment.  
16. The mutual recognition agreement (MRA) between Switzerland and the European Union -EEA 
is based on harmonized technical regulations in 20 sectors. Switze rland regularly supports specific 
trade concerns (STCs) in the TBT Committee to raise concerns regarding planned or adopted 
measures of trading partners. Neither Switzerland nor Liechtenstein was subject to an STC during 
the review period. Liechtenstein fo llows Swiss and the relevant EU technical regulations, and it does 
not have its own regulatory mechanism for technical regulations.  
17. In June  2017, Switzerland notified to the WTO the framework of legislative acts that entered 
into force along with its new f ood legislation, intended to harmonize Swiss law with EU law. 
Switzerland also applied a new regulation on plant health, which is aligned with the updated EU 
regulation. Under the Customs Union Treaty, Liechtenstein applies Switzerland's sanitary and 
phyto sanitary measures. No STCs were raised during the review period regarding Switzerland's or 
Liechtenstein's sanitary and phytosanitary measures.  
18. Switzerland amended its Cartel Law by introducing the concept of undertakings with relative 
market power and a n ew item on restrictions on procurement and amended the Law Against Unfair 
Competition by introducing a prohibition on geo -blocking by private parties. As previously, 
Switzerland's Competition Commission prioritized the fight against hard -core horizontal an d vertical 
cartels as well as market foreclosures. The Government continued to consider the modernization of 
the Swiss system for merger control. Liechtenstein does not have a national competition law or 
competition authority, and it is subject to EEA comp etition rules that are applied by the EFTA 
Surveillance Authority. During the review period, no competition cases concerning Liechtenstein 
were referred to the EFTA Surveillance Authority.  
19. Switzerland's regime of price surveillance and prevention of abusiv e pricing by public and 
private monopolies or enterprises with market power remained unchanged. Under the Law on Price 
Surveillance, the Price Supervisor is responsible for observing price developments and preventing 
abusive price increases or abusive pric e maintenance in any market where the price level is not the 
consequence of effective competition. At the federal level, Switzerland maintains administrative 
prices for medicines, electricity, gas, water, basic telecommunications services, airport taxes, a nd 
notary services. Liechtenstein maintains price controls on public transport, telecommunications, 
postal and medical services, and drugs and medical equipment.  
20. Alcosuisse's monopoly on the importation of ethanol ended in 2019 with the liberalization of 
the ethanol market. Switzerland notified the WTO Working Party on State Trading Enterprises in 
December  2020 that imports of ethanol and spirits are allowed without restrictions and without the 
need for any permit. The Swiss cantons hold a monopoly on the i mport and sale of various types of 
salt. Plans have been announced for the privatization of PostFinance Ltd., a wholly owned subsidiary 
of Swiss Post, which is one of the five state -owned enterprises in Switzerland that are wholly or 
majority -owned by the Confederation. There were no major changes regarding state ownership and 
privatization in Liechtenstein.  
21. Amendments to the Swiss Federal Law on Public Procurement and the implementing Ordinance 
that entered into force in January  2021 aimed to implement the revised Government Procurement 
Agreement and to achieve more harmonization of federal and cantonal laws on public procurement. 
The main changes concern the increased emphasis on quality and sustainability aspects of public WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 12 - 
 
 procu rement, the definition of technical terms and scope of application, the regulation of 
additional/subsequent procurement, the prevention of corruption, and the introduction of more 
flexible instruments, such as dialogue, framework agreements, electronic pro curement, electronic 
auctions, and shorter timelines. An important development at the sub -federal level was the adoption 
and entry into force of a revised Intercantonal Agreement on Government Procurement. 
Liechtenstein amended its Law on Sectoral Public P rocurement and its Law on Public Procurement 
to implement four EU directives.  
22. Switzerland is one of the world's most innovative economies and a net exporter of intellectual 
property. During the review period, Switzerland took further steps to implement its  "Swissness" 
legislation. It reinforced the protection of the "Swiss Made" designation through amendments to the 
Federal Law on the Protection of Trademarks and to the Federal Law on the Protection of Coats of 
Arms and Other Public Signs and by adopting or dinances that extend the scope of the Swissness 
regulation to additional products, including watches and food products. The Federal Law on Copyright 
and Related Rights was revised to reflect technological developments and to address online piracy 
more effe ctively. In addition to FTAs with comprehensive provisions on intellectual property and an 
agreement on geographical indications concluded with Georgia, Switzerland became a party to the 
Geneva Act of the Lisbon Agreement on Appellations of Origin and Geog raphical Indications 
(December  2021), the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who 
Are Blind, Visually Impaired or Otherwise Print Disabled (May  2020), and the Beijing Treaty on 
Audiovisual Performances (May  2020). As a resu lt of the customs union between Switzerland and 
Liechtenstein, Liechtenstein's intellectual property system is deeply integrated and intertwined with 
the Swiss intellectual property system. Liechtenstein amended its copyright law to implement two 
EU direct ives. 
23. Switzerland is a net importer of agricultural and food products. Despite the small size of its 
agriculture sector, both in terms of its contribution to GDP (0.7% in 2020) and total employment 
(2.7%), Switzerland places great importance on agriculture  due to its multifunctionality in terms of, 
inter alia, food security, environmental protection, and the maintenance of its cultural landscapes. 
In 2017, a new article was adopted in the Federal Constitution calling for a guarantee of sufficient 
food supplies for the Swiss population, in the long term. A complex and comprehensive set of trade 
instruments, including domestic support and border measures, continues to be implemented, with a 
view to ensuring the viability of Swiss agriculture. In 2018, the  authorities decided to abolish export 
subsidies for agricultural products, and the related contributions were allocated to eligible producers 
as a market support measure for cereals and marketed milk. In Liechtenstein, agriculture is 
marginal, and Switzer land acts on its behalf on Customs Union matters, such as with respect to 
imports and exports of agricultural products.  
24. Switzerland's Energy 2050 Strategy results from a decision taken in the early 2010s to 
progressively phase out nuclear energy and to pro mote energy efficiency and the production of 
renewable energy. To implement the strategy, a completely revised Federal Energy Law entered into 
force in January  2018 that sets out targets for energy production and consumption, defines energy 
efficiency stan dards, and provides incentives for investment in renewable energy production. As part 
of an Electricity Networks Strategy, a new Federal Law on the Conversion and Expansion of the 
Electricity Grid was adopted; most of its provisions entered into force in J une 2019, and aim to 
facilitate the development of electricity networks. In 2020, Switzerland updated its Nationally 
Determined Contribution under the Paris Agreement to commit to reduce greenhouse gas emissions 
by at least 50% by 2030, compared to 1990 le vels, and to achieve climate neutrality by 2050. 
Following the rejection by the Swiss electorate in June  2021 of a comprehensive revision of the Swiss 
CO2 Law, the Federal Assembly in December  2021 adopted a partial amendment to temporarily 
prolong some li mited and unchallenged aspects of the CO 2 Law during the period 2022 -24. A new 
proposal for a comprehensive revision of the CO 2 Law to continue to reduce greenhouse gas 
submissions beyond this period is currently the subject of consultations. Although Swit zerland is 
closely integrated in the European electricity network, the conditions for electricity trade with the 
European  Union are suboptimal because of the absence of a formal agreement with the European 
Union.  
25. Liechtenstein adopted measures to increase energy efficiency, increase use of renewable 
energy, and reduce greenhouse gas emissions as part of its Energy Strategy 2020 originally adopted 
in 2012. In 2020, Liechtenstein adopted a new Energy Strategy 2030 and Energy Vision 2050, the 
purpose of which is to further increase the use of energy from renewable sources. Liechtenstein's 
CO2 Law derives directly from the Swiss CO 2 Law but differs with respect to the allocation of the WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 13 - 
 
 revenues from the CO 2 tax. In its Nationally Determined Contribution under th e Paris Agreement, 
Liechtenstein has committed to achieve a reduction of 40% of its greenhouse gas emissions by 2030 
compared to 1990 levels.  
26. Switzerland and Liechtenstein have strong manufacturing sectors. The contribution to the 
Swiss economy (in terms o f gross value added) of the manufacturing sector increased in recent 
years. The increase was particularly significant in the largest subsector, chemical and pharmaceutical 
products. Other prominent subsectors are computers, electronics, watches and clocks;  machinery 
and equipment; and fabricated metals. Within Swiss manufacturing, there is a long -term trend 
towards a growing share of high -end products. The Swiss Federal Council recently reiterated its 
opposition to the adoption of an industrial policy to su pport particular industry branches. 
Liechtenstein's manufacturing sector accounts for a share in GDP and employment far higher than 
in other developed countries. The sector is very diversified with the most important subsectors being 
mechanical engineering ; vehicle construction; food production; and basic metals and fabricated 
metals. The Government recently identified research and innovation as a priority in its 2021 -25 
strategy.  
27. Switzerland has a modern telecommunications sector using the latest technolog ies, including 
5G. Prices of telecommunications services remain high by international standards although the gap 
appears to be narrowing progressively. There were no significant changes in the Swiss 
telecommunications services market during the review peri od in terms of the main actors, market 
shares, foreign ownership, and state ownership. The Swiss telecommunications regulatory 
framework was updated to adapt it to technological evolutions and to alleviate administrative 
burdens on operators to facilitate market entry. A comprehensive revision of the 
Telecommunications Law in 2019 that entered into force in January  2021 introduces many changes, 
including, for example, the adoption of the principle of Internet neutrality, the abolition of the general 
notific ation requirement for all providers of telecommunications services, new and strengthened 
transparency provisions regarding roaming services, and new methods to measure and publicize the 
quality of fixed and mobile Internet access.  
28. The telecommunications se rvices sector in Liechtenstein is based on a vertical separation 
regime agreed between the electricity supplier, which owns, operates, and maintains a major part 
of the fixed communications network, and the major provider of telecommunications services. Th e 
main changes made during the review period to the regulatory framework for telecommunications 
services resulted from the application of EU regulations and directives on telecommunications. These 
concerned, among other things, roaming services, the introd uction of an obligation for the incumbent 
to offer VoIP wholesale services on non -discriminatory and transparent terms, national voice call 
termination prices, number portability, and universal service provisions.  
29. Switzerland's financial services sector is  mature and sophisticated, but its share in GDP has 
declined since the 2008 financial crisis due to factors such as changes in the international taxation 
framework and the global wealth management business and low interest rates. In view of this more 
challenging competitive environment, the Federal Council launched a new strategy for the financial 
services sector in 2020 that rests on three main pillars: (i)  the creation of more favourable conditions 
for innovation; (ii)  the promotion of international inter connectedness and open markets; and 
(iii) more emphasis on sustainability. The review period witnessed many changes in the general 
regulatory framework for financial services, with the adoption of the Financial Market Infrastructure 
Law, which entered into  force in 2016, the Financial Services Law and the Financial Institutions Law, 
which both entered into force in 2020, and changes to legislation in the areas of money laundering 
and the financing of terrorism. In addition, there were changes in regulations  that pertain more 
specifically to each of the subsectors of the financial services industry. For example, in banking, 
steps were taken to align Swiss legislation with the Basel  III international banking standards.  
30. Liechtenstein's financial services sector  to a large extent faces the same challenges as the 
Swiss financial services sector, but its situation differs in two important respects. First, 
Liechtenstein's EEA membership means that the financial services sector has access to a very large 
market via p assporting. Second, the absence of investment banking from Liechtenstein's financial 
services sector has made it more resistant to the low interest rate environment. Liechtenstein 
reinforced its rules on money laundering and terrorist financing and adapted  its domestic legislation 
on banking, asset management companies, and collective investment schemes to implement 
relevant EU directives. In 2019, Liechtenstein became the first country to adopt comprehensive 
legislation on trustworthy technology (TT) servi ce providers. The Token and TT Service Provider Law, WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 14 - 
 
 which entered into force in January  2020, is autonomous legislation that does not derive from an 
EEA transposition of the EU acquis.  
31. During the period under review, Switzerland continued to improve its r oad infrastructure to 
alleviate transit problems. The domestic legal framework for road transport services remained 
largely unchanged. With respect to railway services, Switzerland continued to align its regime with 
that of the European  Union by implementi ng key elements of the EU third railway package in 2020 
and 2021. These include, inter alia, the creation of an independent body responsible for the 
allocation of train paths, and the strengthening of passenger rights regarding delays, cancellations, 
liabilities, and the transport of bicycles. Inland waterways transport, transport on the Rhine, and 
maritime transport stricto  sensu  constitute a somewhat important, though often neglected, activity. 
Registration of seagoing commercial vessels is subject to ver y strict requirements. A major 
development was the termination in 2017 of a 60 -year-old policy whereby Switzerland was providing 
federal mortgage guarantees for the construction of Swiss -flagged ships. The air transport industry 
was severely affected by th e economic consequences of the COVID -19 pandemic and was subject to 
several individual rescue plans for airports, airlines, and auxiliary providers both at the cantonal and 
federal levels.  
 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 15 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.1   Switzerland  
1.1.  Switzerland is a high -income country with a population of less than nine million. It enjoys 
favourable economic conditions, with strong and transparent democratic institutions  that support 
trade and investment. The country ranks high in economic complexity1, with a specialization in 
value -added production and an educated population. Main economic sectors are manufacturing 
(18.7% of GDP in 2020), led by the chemical and pharmac eutical sector; real estate, professional 
and support service activities (18.0%)2; and trade and repair of motor vehicles and motorcycles 
(15.1%). Aggregated, services account for more than 70% of its GDP (Chart  1.1). There was no 
major change in the dist ribution of GDP per economic activity between 2016 and 2020.3 The 
economy is managed with fiscal prudence, and the fiscal balance is traditionally in surplus  
(Table  1.1). Switzerland's unemployment rate is low, below 3.5% during the review period. Trade 
accounts for over 117% of GDP. The customs union between Switzerland and Liechtenstein is 
surrounded by the European  Union, by far its main trade partner (Section  1.4). Due to Switzerland's 
close relationship with the European  Union, the end of negotiations  on the institutional framework 
agreement (Sections  2.3.2.4 and 3.3.2) raises questions on the definition of their future relationship.  
Chart 1.1 Gross domestic product by economic activity for Switzerland, 20 20 
 
Note:  Percentage of current GDP at basic prices.  
Source:  State Secretariat for Economic Affairs (SECO), Economic Situation .  
1.2.  Despite Switzerland being a landlocked country without any significant natural resources, it is 
well integrated into international trade. According to the 2021 Foreign Economic Policy Strategy, 
Switzerland is one of the countries that benefit the most from globalization.4 Most imports and 
exports (78% and 86% , respectively, in volume) transit by land (railway and road transportation).5 
Switzerland's railway density is the highest in Europe and the 4th worldwide, as the Government 
intends to favour rail over road transportation.6 Transport of merchandise by air grew during the 
 
1 Switzerland ranks 2nd worldwide for economic complexity. Routley, N. (2019), "These Are the Most 
Complex Economies around the Globe", WEF, 2 December. Viewed at: 
https://www.we forum.org/agenda/2019/12/countries -ranked -by-their-economic -complexity . 
2 Including real estate, legal, accounting, management, architecture, and engineering activities, 
scientific research and development, scientific and technical activities, and administrative and support service 
activities.  
3 It can be noted that in constant  2015 prices, the chemical and pharmaceutical sector's share increased 
from 6% to 8.2% between 2016 and 2020.  
4 Federal Council (2021), Switzerland's Foreign Economic Policy Strategy .  
5 Federal Office for Customs and Border Security  (FOCBS) , Means of Tran sport. Viewed at: 
https://www.bazg.admin.ch/bazg/en/home/topics/swiss -foreign -trade -statistics/daten/verkehrsmittel.html .  
6 Union des Transports Publics, Faits et arguments concernant les transports publics suisses 2020 -2021. 
Viewed at: https://www.voev.ch/fr/Services/Publications/Faits -et-arguments -concernant -les-TP-suisses . 
Agriculture, forestry and fishing
0.7%
Manufacturing
18.7%
Electricity, gas, steam and air 
conditioning supply
1.8%Construction
5.1%Trade, repair of motor vehicles 
and motorcycles
15.1%Transportation and storage; 
information and communication
7.9%Financial service activities
5.5%Insurance service activities
4.2%Real estate, professional, 
scientific and technical 
activities; administration and 
support service activities
18.0%Public administration
10.7%
Human health and social work 
activities
8.0%
Other services
4.0%
Other 0.4%
Source: State Secretariat for Economic Affairs (SECO), Economic situation. Viewed at: 
https://www.seco.admin.ch/seco/en/home.html.Services 
73.3%Chart 1.[CHE] Gross domestic product by economic activity, 2020
Note:          Based on current prices. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 16 - 
 
  past decade, and half of Switzerland' s exportation (in value) leaves the country by air.7 Switzerland 
has efficient airport infrastructure, with most of the merchandise trade transiting through the Zurich 
airport. In 2020, 8% of total trade, notably crude oil and petroleum products, was tran sported by 
the Rhine river at the Basel ports.8 Switzerland tops the 2020 UNCTAD Global E -Commerce Index, 
thanks not only to very high Internet access and use by its population, but also due to the quality 
of transportation and postal services allowing fo r efficient delivery.9 The Universal Postal Union 2021 
report confirmed that Switzerland retained the world's highest score on the Integrated Index for 
Postal Development.10 
1.1.2   Liechtenstein  
1.3.  Liechtenstein is a small country with a total territory of 160  km2 and a population of less than 
40,000. It has one of the highest GDP per  capita in the world, second only to Monaco. However, the 
authorities emphasize that for comparative purposes GDP per  capita is of limited relevance due to 
the large number of inward cr oss-border commuters (since 2017, there have been more employees 
than inhabitants). Thus, GDP per employed person in full -time equivalent s is seen as a more accurate 
measure, and was estimated at CHF  186,880 in 2019. Liechtenstein benefits from stable poli tical 
institutions and an exceptionally low gross public debt in relation to GDP of 0.6%.11 Its 
unemployment rate is also exceptionally low, below 2% over the review period. Manufacturing 
accounts for 40.1% of the GDP in 2019, followed by professional, sci entific, and technical activities 
(14.1%), and financial and insurance activities (11.5%). Services represent 54.1% of the GDP 
(Chart  1.2). There has been no major change in the distribution of GDP per sector between 2016 
and 2019. Manufacturing as a whole  gained 2  percentage points while financial and insurance 
services followed the opposite trend (from 13.3% to 11.5%). As a member of the European Economic 
Area (EEA), Liechtenstein participates in the single market among the European  Union and EEA/EFTA 
countries, which is designed to provide for the free movement of goods, services, persons, and 
capital. Liechtenstein and Switzerland share the same currency, the Swiss franc (CHF), and a 
customs union. All international trade in goods is transported to and f rom Liechtenstein via the road 
network.12 
Chart 1.2 Gross domestic product by economic activity for Liechtenstein, 2019  
 
Note:  Percentage of current GDP at basic prices.  
Source:  Liechtenstein Office of Statis tics, eTab. Viewed at: https://etab.llv.li/PXWeb/pxweb/en/eTab/ . 
 
7 FOCBS , Means of Transport .  
8 Federal Statistical Office (FSO), Goods Trans port by Air, Water and Pipeline . Viewed at: 
https://www.bfs.admin.ch/bfs/en/home/statistics/mobility -transport/goods -transport/air -water-pipeline.html . 
9 UNCTAD (2021), "Switzerland Climbs to Top of Global E -Commerce Index", 17  February.  
10 Universal Postal Union (2021), Postal Development Report 2021 , October.  
11 Government of the Principality of Liechtenstein (2021), Economic and Finan cial Data on Liechtenstein , 
data as of 24  June 2021, p. 38. Viewed at: https://www.liechtenstein -
institut.li/application/files/3316/3058/6915/Economic -and-financial -data-2021-1-.pdf. 
12 Information provi ded by the authorities.  
Agriculture, forestry and 
fishing , 0.1%
Mining and quarrying , 0.1%
Machinery and 
equipment , 19.8%
Transport 
equipment , 4.1%Food products, 
beverages and 
tobacco products , 
3.4%Other 
manfacturing , 
12.9%Electricity, gas, steam and air 
conditioning supply,
Water supply, sewerage, waste 
management and remediation 
activities , 1.3%Construction , 4.3%Wholesale and retail trade; 
repair of motor vehicles and 
motorcycles , 4.9%Financial and 
insurance activities , 
11.5%Real estate activities , 6.5%Professional, scientific and 
technical activities , 14.1%
Public administration and 
defence; compulsory social 
security , 6.0%
Human health and social work 
activities , 2.5%
Other services , 8.6%
Source: Liechtenstein Office of Statistics, eTab. Viewed at: https://etab.llv.li/PXWeb/pxweb/en/eTab/.Services 
54.1%Chart 1.[LIE] Gross domestic product by economic activity, 2019
Manufacturing
40.1%WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 17 - 
 
  1.2  Recent Economic Developments  
1.2.1   Switzerland  
1.4.  During the review period and prior to the COVID -19 pandemic, real GDP growth was positive, 
ranging from 1.2% to 2.9% from 2016 to 2019. Prior to 2020, the fiscal balance was in surplus. In 
December  2019, the Federal Department of Economic Affairs, Education and Research ( EAER) 
published a report to evaluate the implementation of the 20 16-2019 New Growth Policy. The three 
pillars of the policy were enhancing productivity, strengthening the resilience of the economy 
(e.g. enhanced "too -big-to-fail" regulation), and reducing negative externalities of economic growth 
(e.g. climate and energ y policy). Most measures were deemed as either completed or in completion. 
However, measures on the development of bilateral relations with the European  Union were rated 
as unsuccessful.13 
1.5.  The impact of the COVID -19 pandemic on the Swiss economy led to the  biggest drop in GDP 
per capita registered in decades. However, comparatively, the effects of the COVID -19 pandemic 
remained contained. Real GDP growth fell by 2.4% compared to 5.9% for the EU -27.14 Pre-existing 
financial buffers and sound economic feature s helped mitigate the impact. In addition to 
diversification between sectors, the Swiss Foreign Economic Policy Strategy noted that diversification 
of trade partners is key to avoid supply shortages for a medium -sized economy such as Switzerland 
(Section  1.4.1).15 The OECD also noted that high trust in the Government and the highly effective 
health system enabled less strict lockdowns than in many countries.16 In December 2021, the Swiss 
National Bank (SNB) declared that GDP in the third quarter of 2021 had surpassed pre -COVID -19 
GDP for the first time since the beginning of the crisis, and the SNB estimated that GDP growth will 
reach 3.5% in 2021 and 3% in 202 2.17 
1.6.  Table  1.1 gives an overview of selected macroeconomic indicators for Switzerland from 2016 
to 2020.  
Table 1.1 Selected macroeconomic indicators for Switzerland, 2016 -20 
  2016  2017  2018  2019  2020  
Nominal  GDP (CHF billion)  685.4  693.7  719.3  727.2  706.2  
Nominal GDP (USD billion)  695.9  704.5  735.4  731.9  752.9  
Real GDP (percentage change, reference year = 
2015)  2.0 1.6 2.9 1.2 -2.4 
Nominal GDP per capita (CHF  '000) 81.4 81.8 84.2 84.5 81.5 
Nominal GDP per capita (USD  '000) 82.6 83.0 86.1 85.0 86.8 
Population (million)a  8.4 8.5 8.5 8.6 8.7 
Unemployment rate (annual average, %)  3.3 3.1 2.6 2.3 3.1 
  Men 3.5 3.2 2.6 2.4 3.3 
  Women  3.1 2.9 2.5 2.2 3.0 
General government finances (% of GDP)b     
  
  Revenue  32.3 33.1 32.6 32.8 33.6 
  Expenditure  32.1 32.0 31.3 31.5 36.5 
  Overall fiscal balance  0.2 1.1 1.3 1.3 -2.8 
  Gross debt ratio as defined by the IMF  40.5 41.2 39.3 39.8 42.4 
  Debt ratio (Maastricht)  27.4 27.7 25.8 25.9 27.8 
  Tax-to-GDP ratio      
  
   General government  26.7 27.4 26.9 27.3 27.7 
    Confederation  9.3 9.9 9.6 9.8 9.2 
    Cantons  6.7 6.7 6.7 6.9 7.1 
    Municipalities  4.2 4.2 4.2 4.2 4.4 
    Social security funds  6.5 6.5 6.4 6.5 6.9 
Money and credit      
  
CPI (percentage change)  -0.43 0.53 0.94 0.36 -0.73 
 
13 EAER (2019), Rapport final du DEFR sur l 'état de mise en œuvre de la politique de croissance 
2016-2019, 6 December  2019.  
14 Eurostat, Real GDP Growth Rate – Volume . Viewed at: 
https://ec.europa.eu/eurostat/databrowser/view/tec00115/default/table?lang=en . 
15 Federal Council (2021), Switzerland's Foreign Economic Policy Strategy , p. 39. 
16 OECD (2022), OECD Economic Surveys: Switzerland 2022 , p. 10.  
17 SNB (2021), Bulletin trimestriel Q4 2021 , p. 5.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 18 - 
 
    2016  2017  2018  2019  2020  
Broad money (M3, percentage change, end of 
period)  3.08 3.54 3.16 0.78 6.47 
Yield on government bonds – 10 years (%)c -0.36 -0.07 0.03 -0.49 -0.52 
External sector      
  
CHF/EUR (period average)  1.09 1.11 1.15 1.11 1.07 
CHF/USD (period average)  0.99 0.98 0.98 0.99 0.94 
Nominal exchange rate indexd  158 157 156 159 169 
Real exchange rate indexd 116 114 111 112 116 
Current account (% of GDP)  8.0 6.3 6.1 5.4 2.8 
Trade (goods and services, based on BoP) (% of 
GDP) 120.6  120.5  121.0  120.1  117.5  
External debt (% GDP)  267.1  279.6  254.6  266.4  280.2  
Total reserves (includes gold, USD billion)   679.6   812.2   788.3   853.5   1,082.8  
a Permanent resident population at the end of the period.  
b Based on Government Finance Statistics model. 2020 forecast.  
c Annual average calculated on the basis of monthly data.  
d Trade -weighted against 54 trading partners, January 2000 = 100. An increase means appreciation of 
the Swiss franc.  
Source:  Federal Finance Administration  (FFA) , Data. Viewed at: 
https://www.efv.admin.ch/efv/en/home.html ; SNB, Statistics. Viewed at: https://www.snb.ch/en/ ; 
and SECO, Economic Situation. Viewed at: https://www.seco.admin.ch/seco/en/home.html . 
1.7.  Thus, the economy had favourable pre -existing conditions to weather the worldw ide disruption 
brought by the COVID -19 pandemic. The Government's prompt response also contributed to this 
overall positive assessment. In its latest Article  IV Consultation Report on Switzerland, the 
International Monetary Fund (IMF) commended the Governm ent's early, strong, and sustained 
response.18 For 2020, the Confederation approved a total of expenditure and guarantees of 10% of 
GDP19, mostly aiming at avoiding job losses, and maintaining employees' wages and companies' 
liquidity. In practice, actual support was below the maximum approved support, and totalled 
CHF 15 billion in expenditure and CHF  17.5 billion in guarantees.20 Specific sectors particularly hit 
by the pandemic benefited from targeted measures: professional and mass sports, culture, prin t 
media, public transport, aviation, and tourism.21 Cantons also granted additional support measures 
such as funding short -time work, loan guarantees, interest -free loans, or granting more flexibility to 
pay utility fees.22 Together, cantons' and communes'  pandemic -related expenditures totalled 
CHF 3 billion for 2020.23 For the year 2021, the Confederation did not grant support in the form of 
sureties and guarantees but only through expenditures , which amounted to CHF  14 billion.24 
1.8.  The authorities indicate that the New Growth Policy for 2016 -2019 was the last policy of this 
sort (the first New Growth Policy was introduced for the period 2004 -2007). Alternatively, the 
Federal Council published in May  2021 its "normalization strategy" base d on three  phases: 
progressive wa iving of extraordinary economic stabilization measures until April  2022; maintaining 
measures helping companies and individuals adapt to structural economic changes (e.g. support 
innovation, promote targeted tourism activit ies); and fostering sustainable growth enablers and 
revitalize the economy (e.g. digitalization, climate regulation, less administrative burden).25 The 
third phase intends to ensure long -term recovery of the economy after the COVID -19 pandemic. In 
February  2022, the Government published a report on the strengthening of the Swiss economic 
position. In order to secure the recovery of the entire economy in the long term and increase growth 
 
18 IMF (2021), Switzerland: Staff Report for the 2021 Article  IV Consultation , IMF Country Report 
No. 21/130, p.  23.  
19 Based on GDP for 2020.  
20 FFA, Covid -19: Impact on Federal Finances,  as of February 2022. Viewed at: 
https://www.efv.admin.ch/efv/en/home/aktuell/brennpunkt/covid19.html . 
21 EAER and Federal Department of Finance , Federal M easures for the Economy . Viewed at: 
https://covid19.easygov.swiss/en/federal -measures/ . Agriculture also benefited from specific measures, which 
are detailed in Section  4.1, but support gra nted was marginal.  
22 Radio Télévision Suisse (RTS)  (2020),  The French Speaking Cantons Take Measures to Help Their 
Economy",  18 March.  
23 Federal Department of Finance (2021 ), 2021 Report on the Long -Term Sustainability of Public 
Finances in Switzerland , p. 19.  
24 FFA, Covid -19: Impact on Federal Finances,  as of February 2022.  
25 SECO (2021), " Coronavirus: The Federal Council Plans to Normalize Economic Policy ", 26 May. 
Viewed  at: https://www.seco.admin.ch/seco/fr/home/seco/nsb -news.msg -id-83685.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 19 - 
 
  potential, the Federal Council aims to: (i)  promote external openness; (ii) strengthen and improve 
the quality of the labour force; (iii)  facilitate entrepreneurship and innovation; (iv)  improve the 
competitive dynamics of the internal market; (v)  further optimize the tax system and ensure sound 
public finances; and (vi)  contribute to decarbonization through climate policy.26 
1.2.2   Liechtenstein  
1.9.  After three  years of real GDP growth, Liechtenstein's GDP contracted by 2.3% in 2019 and 
further in 2020 .27 Compared to Switzerland's economy, Liechtenstein's is more sensitive to 
internatio nal shocks due to the small size of the economy, where domestic demand is unable to act 
as a buffer against international shocks28, and thus real GDP growth is more volatile. Liechtenstein 
has a structural trade balance surplus for goods (Tables  A1.5 and A 1.6). Even if direct exports 
decreased from around CHF  3.3 billion in 2016 to CHF  2.8 billion in 2020, imports also contracted 
from around CHF  1.8 billion to CHF  1.6 billion (excluding exports and imports between Liechtenstein 
and Switzerland, and trade in  gold bars, other precious metals, coins, precious and semi -precious 
stones, and works of arts and antiques).29 Table  1.2 provides information on selected 
macroeconomic indicators for Liechtenstein.  
Table 1.2 Selected macroeconomic indicators for Liechtenstein, 2016 -20 
 2016 2017 2018 2019 2020 
Nominal GDP (CHF million)a 6,146.2  6,375.2  6,544.6  6,387.4  5,741 
GDP (USD million)a 6,239.5  6,474.8  6,691.5  6,428.2  6,120 
Real GDP growth (percentage change)  2.5 4.1 1.9 -2.3 .. 
GNI per inhabitant (CHF  1,000)  156.4 175.1 176.9 161.6 .. 
Population (No. '000)  37.8 38.1 38.4 38.7 39.1 
Unemployment rate in %  2.3 1.9 1.7 1.5 1.9 
Females  2.3 2.0 1.9 1.7 2.0 
Males 2.3 1.8 1.5 1.5 1.8 
CPIb -0.4 0.5 0.9 0.4 -0.7 
Public finance (% of GDP)        
  Revenue  23.9 23.4 23.8 25.5 .. 
  Expenditure  20.7 20.5 20.4 21.8 .. 
   Net lending (+)/ net borrowing ( -) 3.2 2.9 3.4 3.7 .. 
.. Not available.  
a Information provided by the authorities, based on estimated GDP for 2020. Viewed at: 
https://www.llv.li/files/as/schaetzrechnung_bip_2020.pdf . CHF/USD exchange rate was applied . 
b Government of the Principality of Liechtenstein (2021), Economic and Financial Data on 
Liechtenstein , data as of 24  June 2021. Viewed at: https://www.liechtenstein -
institut.li/application/files/3316/3058/6915/Economic -and-financial -data-2021-1-.pdf. 
Source:  Liechtenstein Office of Statistics, eTab.  
1.2.2.1   Fiscal policy  
1.10.   Switzerland has recorded fiscal surpluses in most years since  2016 (Table  1.1), as 
government spending and financial liabilities have remained far below the average OECD level.30 
The debt ratio as defined in the Maastricht criteria stood at 27.4% in 2016 and 27.8% in 2019 
(Table  1.1). A key element in Switzerland's fiscal  policy in recent years has been the application of 
a "debt brake" rule31 at the federal level and similar fiscal rules by the cantons to control the rise of 
public debt.32 Both the OECD and the IMF have suggested that in practice the debt brake rule tends  
to skew policy to being tighter than intended and that there is scope to make greater use of the 
available fiscal space to support the economy and achieve a better balance between monetary and 
 
26 Federal Council (2022), Renforcement de la place économique suisse . 
27 For 2020, GDP change in nom inal terms is estimated to be -10.1%.  
28 Brunhart, A. and Geiger, M. (2020), "The Implications of the Covid -19 Pandemic for the Liechtenstein 
Economy", in Liechtenstein Institute's Financial Stability Report 2020 . 
29 Government of the Principality of Liechte nstein (2021), Economic and Financial Data on Liechtenstein , 
data as of 24  June 2021.  
30 OECD (2019), OECD Economic Surveys: Switzerland , pp. 25 -26.  
31 Federal Department of Finance, The Debt Brake . Viewed at: 
https://www.efd.admin.ch/efd/en/home/finanzpolitik/the -debt-brake.html . 
32 OECD (2019), OECD Economic Surveys: Switzerland , p. 26.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 20 - 
 
  fiscal policy.33 The COVID -19 pandemic has had a significant i mpact on public finances, as evidenced 
by the change from a fiscal surplus of 1.3% in 2019 to a fiscal deficit of 2.8% in 2020.  
1.11.   In 2020, direct federal tax accounted for one third of federal revenues, followed by VAT on 
domestic goods and services (16.6%) and VAT on imports (14.1%) (Chart  1.3). Import duties 
account for 1.7% of federal revenues. It is noteworthy that while the share of agriculture in total 
imports is only 5%, agricultural products generated 57% of customs duties levied in 2020.34 
Chart 1.3 Federal revenues, 2020  
(CHF billion, % of total revenues)  
 
Source:  WTO Secretariat calculations, based on data from the FFA and Federal Department of Finance.  
1.12.   Switzerland's tax -to-GDP ratio (Table  1.1) is significantly below the OECD average. In 2020, 
Switzerland ranked 31st out of the OECD members with respect to the tax -to-GDP ratio. The tax 
structure also differs from the OECD average in that it is characterized by: (i)  higher revenues from 
taxes on pers onal income, profits, and gains; taxes on corporate income and gains; and property 
taxes; (ii)  a lower proportion of revenues from social security contributions, value added taxes, and 
goods and services; and (iii)  no revenues from payroll taxes.  
1.13.   According  to a recent report, government expenditures rose from 32% of GDP in 2019 to 35% 
of GDP in 2020 and 2021 due to the COVID -19 crisis.35 More than 80% of the COVID -19-related 
additional expenditures were borne by the Federal Government. While this ratio will  fall in the short 
term to the same level as in 2019, in the long term government expenditure is expected to increase 
to 35% as a consequence of demographic changes that will involve greater expenditures on old -age 
and survivors insurance, disability insur ance, healthcare, long -term care, and education.36 
1.2.2.2   Monetary policy and exchange rate  
1.14.  The constitutional mandate of the SNB is to conduct monetary policy in the interest of the 
country as a whole. The National Bank Act requires the SNB to ensure price stabi lity while taking due 
account of economic developments. To implement this mandate, the key elements of the SNB's 
monetary policy strategy are a definition of price stability, a conditional inflation forecast, and the 
 
33 OECD (2019), OECD Economic Survey s: Switzerland , pp. 26 -27; and IMF Country Report No.  21/130, 
p. 12.  
34 Federal Customs Administration (FCA) (2021), Swiss Foreign Trade in 2020 , p. 35. 
35 The figures in this report on government expenditures as  a percentage of GDP are calculated on the 
basis of a model  that differs from the model used to calculate the data on government expenditures in 
Table  1.1. 
36 Federal Department of Finance (2021), 2021 Report on the Long -Term Sustainability of Public 
Finances in Switzerland .  
WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 21 - 
 
  SNB policy rate. Price stability is def ined as a rise in the Swiss consumer price index (CPI) of less 
than 2% per year. To ensure price stability, the SNB uses its monetary policy operations to influence 
the interest rate environment. The inflation forecast, which is published quarterly by the SNB, 
pertains to the three subsequent years and reflects the medium -term focus of monetary policy. While 
the inflation forecast is the main indicator informing the SNB's monetary policy decisions, the SNB 
also takes into consideration other indicators of d omestic and international economic and monetary 
developments and of financial stability.37 The SNB determines the level of the SNB policy rate, which 
it uses to communicate its monetary policy decisions and aims to keep the secured short -term money 
market rates close to the SNB policy rate.38 
1.15.  Since January  2015, the SNB has implemented monetary policy primarily through a negative 
interest rate applied to sight deposits held by banks and other financial market participants at the 
SNB39, which has been kept a t -0.75%, and foreign exchange market interventions, where 
necessary.40 In the latter regard, Switzerland considers that the SNB's foreign exchange market 
interventions are necessary to create the appropriate monetary conditions that ensure price stability 
and rejects the accusation that Switzerland is a "currency manipulator ", as that term is used in 
reports by the U.S. Treasury on foreign exchange policies of major trading partners. According to the 
SNB, although price stability as the fundamental objective of independent monetary policy requires 
flexible exchange rates, in a small open economy such as Switzerland exchange rate movements 
must be considered in the conduct of monetary policy because of their impact on inflation and the 
economy. A key issue for Switzerland in this regard is the impact of appreciation of the Swis s franc 
when domestic and foreign investors use the franc as a haven in times of uncertainty.41 
1.16.  In 2020, the COVID -19 pandemic created challenges for monetary policy because of the 
economic downturn, negative inflation42, and the strong upward pressure on the Swiss franc. The 
SNB points out that its contribution to crisis management in the context of the COVID -19 pandemic 
has consisted of three main elements. First, the SNB countered the upward pressure on the Swiss 
franc by intervening more strongly in the  foreign exchange market43 and by keeping the SNB policy 
rate and the negative interest rate on sight deposits unchanged. Second, the low interest levels 
created favourable financing conditions for Swiss business and the public sector. Third, the SNB took 
measures to support the supply of credit and liquidity to the economy by increasing banks' latitude 
for lending. This involved the creation of the SNB COVID -19 refinancing facility (CRF)44, the 
deactivation of the countercyclical capital buffer (CCyB)45, and the increase of the thresholds above 
which sight deposits are subject to the negative interest rate.46 In March  2020, the SNB also 
participated in the standing swap arrangements with the U.S. Federal Reserve to enhance the 
provision of US  dollar liquidity.  
1.17.   The SNB maintained its very accommodative monetary policy in 2021, continuing to rely on 
the negative interest rate and foreign exchange market interventions as key monetary policy 
 
37 The SNB's inflation forecast is condi tional in the sense that it reflects how the SNB expects prices to 
evolve, assuming an unchanged interest rate.  
38 SNB (2021), Annual Report 2020 , pp. 23 -24. 
39 The negative interest rate applies to deposits that exceed certain exemption thresholds. The rule s on 
the exemption thresholds were revised in November 2019. SNB (2021), Annual Report 2020 , pp. 66, 69 -70. 
40 Switzerland's de jure  exchange rate arrangement is free floating. In 2020, the IMF reclassified the 
de facto exchange rate from floating to crawl -like. IMF Country Report No.  21/130, Informational Annex, p.  3.  
For classification as a crawl -like arrangement, the exchange rate must remain within a narrow margin of 2% 
relative to a statistically identified trend for six months or more (except for a specified number of outliers). 
IMF, Exchange Rate Classification Me thodology . Viewed at: https://www.elibrary -
areaer.imf.org/Pages/ERClassifcation.aspx .  
41 SNB (2021), Annual Report 2020 , p. 24.  
42 As measured by the CPI, inflation fell from 0. 4% in 2019 to -0.7% in 2020. The core inflation rate fell 
from 0.4% in 2019 to 0.1% in 2020.  
43 In 2020, the SNB purchased foreign exchange worth CHF  110 billion.  
44 The CRF was introduced in March 2020 to allow banks to provide COVID -19 loans to businesses at an 
interest rate of 0%. The CRF allowed banks to obtain liquidity at the SNB policy rate of -0.75%, with federally 
guaranteed COVID -19 loans serving as collateral. The CRF was expanded in May 2020. SNB (2021), Annual 
Report 2020 , pp. 70 -71. The CRF is s till operational, with the number of loans refinanced at the SNB gradually 
declining as firms repay COVID -19 loans taken out in 2020.  
45 After consulting with the Swiss Financial Market Supervisory Authority, the SNB submitted a proposal 
to the Federal Coun cil to deactivate the CCyB, which was accepted.  
46 SNB (2021), Annual Report 2020 , pp. 13, 47 -48. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 22 - 
 
  instruments. In September  2021, the SNB's conditional inflat ion forecast was 0.5% for 2021, 0.7% 
for 2022, and 0.6% for 2023.47 Its recent quarterly monetary policy assessments provide that :  
The SNB is maintaining its expansionary monetary policy with a view to ensuring price 
stability and providing ongoing suppor t to the Swiss economy in its recovery from the 
impact of the coronavirus pandemic. It is keeping the SNB policy rate and interest rate 
on sight deposits at the SNB at -0.75%, and remains willing to intervene in the foreign 
exchange market as necessary, to  counter upward pressure on the Swiss franc. In so 
doing, it takes the overall currency situation into consideration. The Swiss franc remains 
highly valued.48  
1.18.  In its June  2021 Article  IV Consultation Report, the IMF agrees that the SNB is rightly keeping 
monetary policy accommodative, particularly in light of expected prolonged negative or very low 
inflation rates.49 The IMF raises two  issues with respect to Swiss monetary policy. First, following the 
COVID -19 pandemic it may be increasingly difficult for the SNB to achieve its price stability objective 
as the pandemic may have worsened the long -standing challenge of low inflation. In this regard, the 
IMF suggests there may be a need to review the SNB's monetary policy framework to consider the 
possible nee d for new instruments to achieve price stability.50 Second, the appreciation pressures on 
the Swiss franc that have been persistent since the 2008 -09 global financial crisis should be eased 
"in a fundamental way" by addressing certain structural factors, n otably the limited outflows of 
private investment due to several factors contributing to "home bias" and the fact that Swiss firms 
do not tap domestic savings.51 
1.19.  The Swiss franc appreciated in 2020 in nominal and real effective exchange rate terms by 6% 
and 4%, respectively (Table  1.1).52 Because inflation was lower in Switzerland than in many of its 
trading partners, the Swiss franc appreciated less strongly in real terms than in nominal terms.  
1.20.   As noted in the previous Review, foreign exchange intervention s undertaken by the SNB to 
prevent appreciation of the Swiss franc from undermining price stability have resulted in a large 
increase in currency reserves since the financial crisis.53 This trend continued during the review 
period.54 The total level of cur rency reserves increased from CHF  603 billion at the end of 2015 to 
CHF 962 billion at the end of 202055, principally because of purchases of foreign currencies.  
1.2.2.3   Balance of payments  
1.21.   Switzerland's current account is traditionally in surplus but has been on a downward trend 
since the end of the global financial crisis, with substantial year -to-year fluctuations. A wide range 
of factors have contributed to such year -to-year fluctuations, often with offsetting effects, including 
commodity trading, financial and  insurance activities, and net FDI earnings affected by headquarters 
of large multinationals as well as by numerous finance and holding companies .56 In the last few 
years, a decline in investment income, particularly of net FDI earnings , contributed to the lower 
current account balance. Certain subcomponents  of goods trade (e.g.  pharmaceuticals and gold) 
and services trade can also lead to important f luctuations in the current account.  
1.22.   During the period covered by the present Review, the current account remained in surplus 
but overall declined steadily between 2016 and 2019 and registered a very sharp decline from 2019 
 
47 SNB (2021), "Monetary Policy Assessment of 23  September  2021: Swiss National Bank Maintains 
Expansionary Monetary Policy", p. 1.  
48 SNB (2021), "Monetary Policy Assessment of 17  June 2021: Swiss National Bank Maintains 
Expansionary Monetary Policy", p. 1; SNB (2021), "Monetary Policy Assessment of 23  September  2021: Swiss 
National Bank Maintains Expansionary Monetary Policy", p. 1; an d SNB (2021), Quarterly Bulletin , Vol. 39, 
No. 3, September.  
49 IMF Country Report No.  21/130, pp. 14 -15. 
50 IMF Country Report No.  21/130, pp. 15 -16. 
51 IMF Country Report No.  21/130, pp. 16 -17. 
52 For a recent publication by the SNB of a comprehensive set of  tables and charts of exchange rate 
developments see: https://data.snb.ch/en/publishingSet/WKI . 
53 WTO document WT/TPR/S/355/Rev.1, 22  September  2017, para.  1.15.  
54 See also IMF (2019), Switzerland -Selected Issues , IMF Country Report No.  19/181.  
55 SNB (2017), Annual Report 2016 , p. 78; and SNB (2021), Annual Report 2020 , p. 92.  
56 WTO document, WT/TPR/S/355/Rev.1, 22  September  2017, para.  1.15.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 23 - 
 
  to 2020 (Table  1.3). While the surplus on the goods balance57 increas ed during most of the period, 
primary income played an important role in the decline in the current account balance between 2016 
and 2019, particularly as a result of the decline in net FDI income. Services and secondary income 
also contributed to the rece nt decline in the current account surplus but to a lesser extent. The sharp 
decline in the current account in 2020 was more broadly based and , in addition to the deficit on the 
primary and secondary income balances58, also reflected changes in the goods an d services 
balances.  
1.23.   The Swiss capital account showed substantial fluctuations during the review period 
(Table  1.3). The capital account reports transactions involving non -produced and non -financial 
assets (e.g. IP rights) as well as other transfers (e.g. debt reduction measures, settlements). The 
fluctuations in the Swiss capital account represent such one -off transactions.  
Table 1.3 Balance of payments, 2016 -20a 
(CHF billion)   
2016  2017  2018  2019  2020  
Current account  54.8 43.4 43.8 39.5 19.9 
Goods (net)  60.7 63.5 70.7 70.8 58.2 
  Receipts  322.1  323.6  338.0  340.5  330.2  
  Expenses  261.4  260.1  267.3  269.7  271.9  
Services (net)  4.3 -2.0 4.2 0.8 -9.3 
  Receipts  123.8  125.0  134.6  132.2  109.3  
  Expenses  119.5  127.0  130.3  131.4  118.6  
Primary income (net)  -0.7 -5.0 -22.2 -19.8 -13.3 
  Receipts  145.4  169.8  175.4  177.0  136.2  
  Expenses  146.1  174.8  197.6  196.9  149.4  
   Labour income  -23.2 -24.0 -24.6 -25.7 -24.8 
    Receipts  2.5 2.6 2.5 2.5 2.8 
    Expenses  25.7 26.5 27.1 28.2 27.5 
   Investment income  22.5 18.9 2.4 5.9 11.5 
    Receipts  142.9  167.2  172.9  174.5  133.4  
    Expenses  120.4  148.3  170.5  168.7  121.9  
Secondary income (net)  -9.4 -13.0 -9.0 -12.2 -15.8 
  Receipts  42.2 47.7 43.8 46.9 44.7 
  Expenses  51.7 60.7 52.8 59.1 60.4 
Capital account (net)  -4.7 1.1 14.1 -2.4 0.5 
  Receipts  3.7 2.1 17.6 14.8 1.0 
  Expenses  8.4 1.0 3.4 17.2 0.4 
Financial account (excluding derivatives)  63.8 24.0 79.7 52.0 39.5 
  Net acquisition of financial assets  251.1  125.6  -134.7  51.9 -79.1 
  Net incurrence of liabilities  187.3  101.5  -214.5  -0.1 -118.6  
  Direct investment (net)  16.1 -87.9 123.9  49.3 118.8  
   Net acquisition of financial assets  180.6  54.5 -33.5 58.0 -126.3  
   Net incurrence of liabilities  164.6  142.4  -157.4  8.6 -245.2  
  Portfolio investment (net)  5.2 26.3 10.0 5.5 30.8 
   Net acquisition of financial assets  -0.5 -11.8 -12.4 0.1 24.0 
   Net incurrence of liabilities  -5.8 -38.1 -22.4 -5.4 -6.8 
  Other investment (net)  -34.6 24.3 -67.7 -18.8 -226.9  
   Net acquisition of financial assets  -6.1 21.5 -102.3  -22.1 -93.5 
   Net incurrence of liabilities  28.5 -2.8 -34.6 -3.3 133.4  
  Reserve assets (net)  77.1 61.4 13.5 16.0 116.7  
Derivatives (net)  7.8 -1.5 4.1 2.3 -9.4 
Statistical difference  21.4 -22.0 25.9 17.2 9.6 
a Including Liechtenstein.  
Source:  SNB, Swiss Balance of Payments . Viewed at: https://data.snb.ch/en/topics/aube#!/cube/bopovera . 
 
57 As discussed in the Report prepared for the previous Re view, a peculiar characteristic of Swiss 
balance on trade in goods, as recorded in balance -of-payments statistics, is the importance of merchanting, 
i.e. "the purchase of goods in other economies and the subsequent resale of the same goods to another 
econo my without the goods being imported into or exported from Switzerland/Liechtenstein". SNB, Notes – 
Balance of Payments and International Investment Position . Viewed at: 
https://data.snb.ch/en/topics/aube#!/doc/explanations_aube_bopauverm#tranha . 
58 The authorities note that secondary income traditionally drives the current account balance downward 
and is a volatile component of the current account; in this regard, the d evelopments over recent years do not 
deviate substantially from the historical norm.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 24 - 
 
  1.3  Structural Challenges  
1.3.1   Switzerland  
1.24.   Despite an overall robust economy, Switzerland faces some structural challenges. Low 
productivity growth, adaptation to digitalization, the ageing of the population, climate change, and 
household debt could have impacts in the near to long term.  
1.25.   Switzerland is a "high price island" due to remaining restrictions o n the openness of the 
economy and a high purchasing power.59 Prices are on average 59% higher than in the 
European  Union.60 This situation leads to a substantial " tourisme d'achat " whereby Swiss consumers 
prefer to buy in neighbouring countries. Estimates set this loss for Swiss companies at CHF  11 billion 
per year in food purchases alone.61 In 2019, the Federal Council acknowledged that competition in 
the domestic market and external openness of the economy were among the economy's 
weaknesses.62 The 2021 F oreign Economic Policy Strategy confirmed that open markets allow 
consumers to access a more diverse range of products and take advantage of lower prices. Greater 
trade integration with the European  Union was supposed to counter the high prices phenomenon,  
thanks to the Cassis de Dijon principle (Section  3.3.2) and through lower tariff barriers.63 In 2017, 
a popular initiative "Against the high -prices island – For fair prices" was proposed to counter abuses 
of dominant position and restrictions on competition. The initiative was ultimately withdrawn in 
favour of the counter project approved by the Federal Assembly in 2021 (Section  3.3.4.1).  
1.26.   Openness and fair competition are also leverages for productivity.64 One of Switzerland's main 
strengths is its high level of productivity and innovation (Section  3.3.7.1 ). Over the review period, 
Switzerland mai ntained its ranking as the most innovative country in the world from the Global  
Innovation Index65, and tertiary attainment has continued to grow.66 According to the International 
Labour Organization, Switzerland ranks 8th worldwide for labour productivity .67 However, low 
productivity growth is perceived as a source of concern. For the period 2010 -18, Switzerland's rank 
on labour productivity growth was 25th out of 36 member States examined by the OECD.68 The 2019 
Report of the Federal Council on the Swiss Economy noted that other countries have been catching 
up on productivity while the contribution of labour productivity to growth has diminished. The 
association of research -based pharmaceutical companies in Switze rland echoed this concern in 
its 2021 report, acknowledging that while labour productivity in the pharmaceutical industry has 
increased substantially in the past 25 years, other countries were becoming stronger competitors. 
According to the report, the COV ID-19 pandemic will increase competition even further.69 In 
February  2022, the Federal Council's report on strengthening the Swiss economic p osition  noted that 
measures taken to foster a dynamic competition in the domestic market should increase Swiss 
comp anies' productivity growth.70 
 
59 SECO, Suppression of Tariffs on Industrial Products . Viewed at: 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaf
tsbeziehungen/Warenverkehr/Tarifpolitik/Aufhebung_Industriezoelle.html . 
60 Federal Statisti cal Office , Price Level Indices . Viewed at: 
https://www.bfs.admin.ch/bfs/en/home/statistics/prices/international -price-comparisons/price -level-
indices.html .  
61 Gebhard, C. -A. (2021), "Food Tourism: Good or Bad for the Economy?" (in French), Le Temps , 
2 November.  
62 SECO (2019), Report of the Federal Council on the Swiss Economy , 6 December, p.  35. 
63 Fedlex, FF 2019 4665, p.  4683.  
64 SECO (2019), Report of the Federal Council on the Swiss Economy , 6 December, p. 22.  
65 The INSEAD GII measures 132 economies around the world using indicators, including the quality of 
universities and the availability of microfinance and venture capital, to gauge innovation capabilities and 
measurable  results. INSEAD, Global Innovation Index . Viewed at: 
https://knowledge.insead.edu/entrepreneurship -innovation/global -innovation -index -2930. 
66 Tertiary at tainment in population aged 25 to 64 has increased steadily since 2013 from 37% to 45% 
in 2020. OECD, Country Statistical Profile: Switzerland  2021.  
67 ILO, Statistics on Labour Productivity . Viewed at: https://ilostat.ilo.org/topics/labour -productivity/ . 
68 In constant Purchasing Power Parity (PPP). SECO (2019), Report of the Federal Council on the Swiss 
Economy , 6 December  2019, p.  12. 
69 BAK Economics AG, Study on Behalf of Interpharma on the Importance of the Pharmaceutical 
Industry for Switzerland , December 2021.  
70 Federal Council (2022), Renforcement de la place économique suisse . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 25 - 
 
  1.27.   Ensuring that Swiss companies not only manage the digital transformation of the economy 
but are proactive and lead this transformation, thanks to skilled and productive workers, will be 
critical for maintaining the current pro ductivity rankings. Conscious that leading economies in the 
21st century will have taken advantage of digitalization, Switzerland was early engaged in innovative 
sectors such as FinTech and cryptocurrency (Section  4.4.2.1.2.6 ).71 On average, 15% of annual 
GDP growth over the past 20  years has been attributable to investment in information and 
communication technologies (ICT).72 In 2016, Switzerland unveiled the Digital Switzerland Strategy, 
which is to be renewed every two years. It aims, inter alia, at fos tering the economy's attractiveness 
by adopting a proactive approach towards digitalization and putting in place favourable conditions 
for digital innovation and providing the conditions to help Swiss companies become leaders in ICT 
adoption.73 Nevertheles s, the OECD noted in 2019 that Swiss firms were slower to adopt digital 
technology than in leading countries and that there had been shortages of IT skills among the Swiss 
work force.74 In late 2021, the private sector deplored labour shortages in engineer ing and 
cybersecurity especially.75 
1.28.   The ageing of the population represents a looming challenge for productivity and for the 
Government's fiscal balance. Between 2013 and 2020 in Switzerland, the proportion of young people 
below 15  years old stagnated from  14.9% to 15.0%, whereas the proportion for people aged 65 and 
above increased from 17.5% to 18.7%.76 The IMF in 2021 strongly recommended implementing new 
pension reforms.77 In 2021, the Federal Assembly  approved increasing the retirement age for women 
to 65, similar to that for men. But the consequences of an ageing population on the economy and 
on public spending will be substantial and other measures on pension reforms were being considered 
at the time of writing.78 
1.29.   In 2021, the Government published a r eport on the long -term sustainability of public finances 
in Switzerland, in which it established several scenarios under the assumption that no political 
measures were taken. In the positive scenario, demographic -dependent expenditure for the general 
government increases from 17.2% of GDP in 2019 to 20.1% in 2050 (20.4% in the negative 
scenario). Consequently, the Maastricht debt ratio would rise from 25.9% of GDP in 2019 to just 
over 45% over the projection horizon in the positive scenario (51 .2% in the negative scenario), with 
cantons' and communes' debt ratio reporting the main increases. The report, from the Federal 
Department of Finance, concluded that new reforms will be needed by no later than the beginning 
of the 2030s.79 
1.30.   According to th e Federal Department of Finance, climate change is likely the greatest 
long-term challenge for Switzerland aside from the ageing of the population.80 Even if Switzerland 
is not among the countries most vulnerable to climate change81, it will still be impac ted by its 
consequences and the Government indicates that in no way does it lessen its duty to contribute to 
international efforts  to contain climate change .82 In 2017, a country -wide study highlighted negative 
impacts of climate change on agriculture and forestry, as well as on productivity of workers in major 
urban areas, among others.83 Impacts on the economy as a whole are difficult to assess, however, 
in 2020, the Federal Office for the Environment mentioned one estimate of a 12% reduction in Swiss 
 
71 OECD (2019), OECD Economic Surveys: Switzerland 2019 , p. 21. 
72 Federal Council  (2021), Switzerland's Foreign Economic Policy Strategy . 
73 Federal Council, Digital Switzerland Strategy.  Viewed at: https://www.digitaldi alog.swiss/fr/champs -
d-action/economie . 
74 OECD (2019), OECD Economic Surveys: Switzerland 2019 , p. 4. 
75 RTS (2021), " The Need for Labour Is Increasing Sharply in Switzerland ", 25 November. Viewed at: 
https://www.rts.ch/info/economie/12668661 -le-besoin -de-maindoeuvre -augmente -fortement -en-suisse.html . 
76 OECD, Country Statistical Profile: Switzerland 2021 . 
77 IMF Country Report No.  21/130.  
78 Swissinfo  (2021), "Pension Reform Passes in Parliament but Set to Be Challenged to Vote", 
15 December.  
79 Federal Department of Finance (2021), 2021 Report on the Long -Term Sustainability of Public 
Finances in Switzerland , pp. 39 and 41.  
80 Federal Department of Finance (2021), 2021 Report on the Long -Term Sustainability of Public 
Finances in Switzerland , p. 63. 
81 Swiss  Re Institute (2021), The Economics of Climate Change: No Action Not an Option . 
82 Federal Department of Finance (2021), 2021 Report on the Long -Term Sustainability of Public 
Finances in Switzerland , p. 5.  
83 National Centre for Climate Services (NCCS), Risks and Opportunities of Climate Change in 
Switzerland's Major Regions .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 26 - 
 
  GDP by the end of the century if worldwide CO 2 emissions are not curbed.84 In its 2021 Article  IV 
Consultation Report, the IMF called for decisive actions to achieve Switzerland's climate change 
targets.85 
1.31.   In January  2021, the Government unveiled its long -term policy strategy on climate change to 
be carbon neutral by 2050. It notably aims at reducing carbon emissions along entire value chains 
in Switzerland but also taking into consideration goods and services imported, applying the principle 
of circular ec onomy to the extent possible.86 Three  quarters of the total Switzerland carbon footprint 
is created abroad. The Government thus promotes sustainability provisions in free trade 
agreements.87 After the rejection of the revised CO 2 Act by popular vote in 202 1, the Government 
submitted a new proposal on 17  December  2021 to meet the objectives of its long -term climate 
strategy (Section  4.2.2.1.2.1 ). 
1.32.   While the Government's fiscal situation is sound, household debt is much higher than public 
debt, at about 130% o f GDP.88 Swiss household debt is among the highest in the world (more than 
twice the EU average in percentage of GDP).89 Several studies from international organizations (such 
as the OECD (2019 and 2022), and to a lesser extent the IMF90) and from the SNB noted the risk 
over the housing market91, characterized by high prices and a high level of mortgage debt. In 
November  2021, the Swiss Financial Market Supervisory Authority (FINMA) warned of overheating 
and heightened risks in the real estate and mortgage market. According to its report, as mortgages 
are the most important pillar of business for the majority of banks, a real estate crisis would have 
significant consequences for Swiss financial stability.92 The SNB indicated in its 2021 Financial 
Stability R eport that it was closely monitoring developments in the mortgage and real estate markets 
in order to assess if countercyclical measures had to be implemented.93 
1.33.   Switzerland's unemployment rate is structurally low. Over the review period, it remained at 
maximum 3.3%, compared to a range of around 6% -9% for the EU average.94 Nevertheless, 
unemployment is unbalanced between Swiss citizens and foreigners. Between January  2016 and 
September  2021, the monthly unemployment rate for Swiss citizens ranged between 1.6% and 
2.5%, while the range for foreigners was between 3.5% and 6.9 %. Moreover, the job market is still 
characterized by gender imbalances: in 2018 (most recent data), the average wage of women was 
19% lower than that of men. If 54.6% of this difference is explained by objective factors such as 
professional position or le vel of education, 45.4% was still unexplained. The gender gap is slightly 
lower in the public than in the private sector, and the share of unexplained factors, reflecting a 
possible discrimination, is lower in the public sector.95 The authorities indicate that they do not 
expect the COVID -19 pandemic to have a major impact on the gender wage gap. In 2020, the 
Federal Law of 24 March  1995 on Gender Equality (RS 151.1) was updated to introduce a mandatory 
requirement for companies employing more than 100  workers to undergo an analysis of salary 
equality by an independent entity.96 The Equality Strategy approved in 2021 is based on four pillars, 
the second being "continued promotion of equality in the professional life". The Federal Council 
intends to eliminate  any gender -based salary discrimination. The implementing measures should be 
adopted or put in place by 2023.97 In addition to salary discrimination, women sometimes face 
 
84 NCCS (20 20), Climate Change in Switzerland , p. 74. 
85 IMF Country Report No.  21/130, p.  2. 
86 Federal Council (2021), Switzerland's Long -Term Climate Strategy , p. 16. 
87 Federal Council  (2021), Switzerland's Foreign Economic Policy Strategy . 
88 Avenir Suisse  (2020), " L'endettement privé suisse est -il trop élevé? ", 1 October. Viewed at: 
https://www.avenir -suisse.ch/fr/lendettement -prive-suisse -est-il-trop-eleve/ . 
89 SECO (2019), Report of the Federal Council on the Swiss Economy , p. 29. 
90 OECD (2019), OECD Economic Surveys: Switzerland 2019 , p. 4; OECD (2022), OECD Economic 
Surveys: Switzerland 2022 , p. 10; and IMF Country Report No.  21/130.  
91 SNB (2020), 113th Annual Report , p. 109. 
92 FINMA (2021), FINMA Risk Monitor . 
93 SNB (2021), Financial Report , pp. 5 -6 and 14.  
94 Eurostat, Unemployment Statistics . Viewed at: https:// ec.europa.eu/eurostat/statistics -
explained/index.php?title=Unemployment_statistics . 
95 FSO, Wage Gap . Viewed at: https://www.bfs.admin.ch/bfs/en/home/statistics/work -income/wages -
income -employment -labour -costs/wage -levels -switzerland/wage -gap.html . 
96 Federal Office for Gender Equality , Loi sur l'égalité . Viewed at: 
https://www.ebg.admin.ch/ebg/fr/home/themes/droit/loi -sur-l-egalite.html . 
97 Federal Council (2021), The Federal Council Adopts National Gender Equality Strategy , 28 April. 
Viewed at: https://www.admin.ch/gov/en/start/documentation/media -releases/media -releases -federal -
council.msg -id-83294.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 27 - 
 
  disincentives to participate in the labour force as joint taxation of income leads to  high marginal tax 
rates for second earners in the case of married couples. The introduction of individual taxation would 
improve the incentives to work. The Federal Council plans to conduct the consultation procedure in 
autumn 2022.98 
1.3.2   Liechtenstein  
1.34.   Liecht enstein faces similar challenges to Switzerland's regarding productivity growth, 
household debt, and the ageing of its population. While the Government's fiscal situation is sound, 
Liechtenstein household's debt reaches 120% of GDP. In 2021, the Financial Market Authority 
estimated that current policies to address household debt were largely appropriate, but it proposed 
targeted measures to address the related vulnerabilities in the long term such as closing data gaps 
in the real estate market, or increasin g risk awareness among lenders and borrowers.99 
1.35.   Liechtenstein's level of productivity (measured in GDP/employees) is especially high at 
CHF 165,566 (compared to CHF  142,516 in Switzerland and CHF  101,562 in Austria, its two 
neighbouring countries). Liechte nstein is ahead of all OECD countries in terms of R&D spending as 
a share of GDP (5.7%). Public spending represents only 2% of total R&D expenditures (compared 
to the EU average of 30%), which are thus almost exclusively conducted by the private sector. As  
for Switzerland, however, the Government acknowledged in its 2021 Economic Report that 
productivity has not been very dynamic for the past two decades.100 
1.36.   In Liechtenstein also, the ageing of the population is an indisputable trend. According to the 
Govern ment, between 2007 and 2019, in none of the EU/EFTA States had the proportion of 
inhabitants aged 65 or more increase d as rapidly as in Liechtenstein.101 The Government Plan 
2021-2025 calls for the development of a comprehensive strategy to address the chal lenges 
associated with an ageing population.  
1.4  Developments in Trade and Investment  
1.4.1   Trends and patterns in merchandise and services trade  
1.37.   Important trends during the period under review included the growing prominence of the 
chemical and pharmaceutical sector as the main driver of Swiss exports of goods and changes in the 
geographic orientation of Swiss foreign trade.102 
1.38.   The value of Switzerland's merchandise exports increased steadily and by nearly 15% from 
CHF 210.5  billion in 2016 to CHF  242.3  billion in 2019, before declining by 7% to CHF  225.3  billion 
in 2020 (Table  A1.2). The value of merchandise imports increased by 18%, from CHF  173.5  billion 
in 2016 to CHF  205.2  billion in 2019, and declined by 11% to CHF  182.3  billion in 2020 (Tabl e A1.1).  
The goods trade balance reached a record value of CHF  43 billion in 2020 as the decline in imports 
exceeded the decline in exports (Tables  A1.1 and A1.2).103 In 2021, exports and imports of goods 
are expected to increase by 7.7% and 4.0%, respectiv ely.104 
1.39.   The decline in the value of exports and imports in 2020 to a large extent reflects the collapse 
of Swiss foreign trade in the second quarter resulting from the COVID -19 pandemic. The value of 
weekly exports dropped by nearly 25%, from the beginning of the year to the most stringent phase 
 
98 Information provided by the authorities.  
99 Information provided by the authorities.  
100 Government of the Principality of Liechtenstein (2021), Economic and Financial Data on 
Liechtenstein , data as of 24  June 2021.  
101 Government of the Principality of Lie chtenstein (2021), Economic and Financial Data on 
Liechtenstein , data as of 24  June 2021.  
102 Regarding statistics on merchandise trade in this subsection and in the annexes, it should be noted 
that as explained by the Swiss authorities, "[t] he Principality of Liechtenstein and the enclave of Büsingen 
belong to the Swiss customs territory and are included in the foreign trade statistics, whereas the valleys of 
Samnaun and Sampuoir are excluded". FOCBS , Survey . Viewed at : 
https://www.bazg.admin.ch/bazg/en/home/topics/swiss -foreign -trade -statistics/methoden -
metadaten/methoden/erhebung.html . 
103 The widening of the Swiss trade balance is a long -term trend. Between 2010 and 2020, the trade 
balance more than doubled. FCA (2 021), Annual Report: Swiss Foreign Trade in 2020 , p. 6.  
104 SECO (2021), Konjunkturtendenzen Winter 2021/2022 , p. 21.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 28 - 
 
  of the Swiss containment measures while the value of imports declined by about 30%.105 A recent 
study shows that this collapse of Swis s foreign trade in goods in 2020 was due to the impact of the 
COVID -19 pandemic on demand and supply factors. On the demand side, the study finds that the 
evolution of exports to specific trading partners is correlated with COVID -19 infection rates in the 
trading partner but not with the stringency of containment measures applied by the trading partner. 
On the supply side, the study finds that the evolution of imports from specific partners is correlated 
with both COVID -19 infection rates and the stringency  of containment measures applied by the 
exporting countries. Neither protective measures nor exchange rate movements played a significant 
role in the decline of Swiss trade in 2020.106 
1.40.   The main product groups in Swiss merchandise exports are: (i)  chemical a nd pharmaceutical 
products; (ii)  precision instruments, clocks and watches and jewellery; and (iii)  machines, 
appliances and electronics (Table  A1.2; Chart  1.4). The long -term evolution of the structure of Swiss 
merchandise exports shows considerable diffe rences between sectors. There has been growing 
specialization in certain fast -growing sectors where exports have been relatively unaffected by 
exchange rate developments. The chemical and pharmaceutical sector has emerged as the main 
driver of Swiss mercha ndise exports, a position that it reinforced during the review period. Exports 
of chemical and pharmaceutical products107 reached CHF  116.4  billion in 2020108 and for the first 
time accounted for more than half of all merchandise exports (excluding precious stones) 
(Table  A1.2; Chart  1.4). Despite a decline in its share of the value of Swiss merchandise during the 
period 2016 -20 (Table  A1.2; Chart  1.4), the product group of precision instruments, clocks and 
watches and jewellery has also experienced a long -term increase in its share of the value of Swiss 
merchandise exports.109 On the other hand, exports have stagnated in certain sectors that are more 
sensitive to exchange rate conditions.110 The shares of machines and metals in Swiss merchandise 
exports decline d significantly during the last two decades111, a trend that continued during the period 
2016-20 (Table  A1.2; Chart  1.4). The chemical and pharmaceutical product group was also the only 
one to register an increase of exports in 2020.112 For all other product  groups, very substantial 
declines in the value of exports were recorded in 2020.113 
1.41.   A recent analysis finds that, based on the value added in exports, chemical and 
pharmaceutical products contributed more than 40% of the growth of Switzerland's GDP between  
2010 and 2020.114 
1.42.   The main product groups in Swiss merchandise imports are: (i)  chemical and pharmaceutical 
products; (ii)  machines, appliances and electronics; and (iii)  precision instruments, clocks and 
watches and jewellery (Table  A1.1; Chart  1.4). The share of  chemical and pharmaceutical products 
increased during the review period while the share of machines, appliances and electronics remained 
stable and the share of precision instruments, clocks and watches and jewellery declined 
 
105 Büchel, K., Legge, S., Pochon, V., and Wegmüller, P. (2020), "Swiss Trade During the COVID -19 
Pandemic: An Early Appraisal", Swiss Journal  of Economics and Statistics , 156:22, p.5.  
106 Büchel, K., Legge, S., Pochon, V., and Wegmüller, P. (2020), "Swiss Trade During the COVID -19 
Pandemic: An Early Appraisal", Swiss Journal of Economics and Statistics , 156:22, pp. 10 -12. 
107 Pharmaceutical product s, diagnoses and vitamins make up 85% of the chemical and pharmaceutical 
products group. FCA  (2021) , Annual Report: Swiss Foreign Trade in 2020 , p. 10.  
108 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 8.  
109 Büchel, K., Legge, S., Pochon, V., and Wegmüller, P . 2020), "Swiss Trade During the COVID -19 
Pandemic: An Early Appraisal", Swiss Journal of Economics and Statistics , 156:22.  
110 OECD (2019), Economic Surveys: Switzerland 2019 , p. 9.  
111 Machines accounted for 13.2% of the value of Swiss mercha ndise exports in 2019 compared to 
22.4% in 2005, and metals accounted for 5.6% of Swiss merchandise exports in 2019 compared to 7.4% in 
2005. Büchel, K., Legge, S., Pochon, V., and Wegmüller, P. (2020), "Swiss Trade During the COVID -19 
Pandemic: An Early A ppraisal", Swiss Journal of Economics and Statistics , 156:22, p.3.  
112 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p.8. The top export markets for the 
chemical and pharmaceutical sector are the United  States (22.35%), Germany (14.9%), Italy (5.9% ), 
China  (5.7%), and Spain (5%). FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 10.  
113 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 8. Regarding the growth in exports of 
pharmaceutical products in 2020, it has been observed that th is may be explained in part by the fact that 
foreign demand for Swiss pharmaceutical products is particularly inelastic with respect to economic and 
exchange rate shocks. Büchel, K., Legge, S., Pochon, V., and Wegmüller, P. (2020), "Swiss Trade During the 
COVID -19 Pandemic: An Early Appraisal", Swiss Journal of Economics and Statistics , 156:22, p. 6.  
114 SECO (2021), Tendances Conjoncturelles , Automne, pp. 16 -17. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 29 - 
 
  (Table  A1.1). The dec line in imports in 2020 affected nearly all product groups, except for food, 
beverages and tobacco; and textiles, clothing and shoes.115 
1.43.   The positive trade balance is driven mainly by the chemical and pharmaceutical sector, with 
an export surplus of CHF  65.2 billion in 2020, followed by watches (CHF  14.4 billion) and precision 
instruments (CHF  7.7 billion). In all other product groups, imports exceeded exports, with the largest 
import surpluses recorded for vehicles (CHF  -12.8 billion); textiles, clothing and shoes 
(CHF -7.7 billion); energy sources (CHF  -3.7 billion); and food, beverages and tobacco 
(CHF -2.5 billion).116 
1.44.   Aside from growing product specialization, another change that can be observed during the 
review period concerns the geographica l orientation of Switzerland's merchandise exports, with 
China and the United  States increasing their relative importance (Table  A1.4; Chart  1.5).117 The 
main destinations for Swiss merchandise exports in 2020 were Germany, the United  States, China, 
Italy, France, the United  Kingdom, Spain, Japan, Austria, and the Netherlands (Table  A1.4).118 The 
share of the EU -27 in Swiss merchandise exports remained stable between 2016 and 2020, but the 
share of the United  Kingdom fell sharply (Table  A1.4; Chart  1.5).119 Europe remains the main 
destination for exports of goods, but the decline in its share of Swiss exports during the review 
period reflects a long -term trend.120 
1.45.   The main countries of origin of Swiss imports in 2020 were Germany, Italy, China, France, 
the Un ited States, Austria, Spain, the United  Kingdom, the Netherlands, and Ireland (Table  A1.3).  
Among the 10  largest sources of Swiss imports, there were declines in imports from Germany, Italy, 
France, the United  States, and the United  Kingdom121 and increased  imports from China and 
Spain.122 Although Europe remained the main source of Swiss merchandise imports in 2020, the 
decline in its share in Swiss imports between 2016 and 2020 (Table  A1.3; Chart  1.5) is consistent 
with a long -term trend .123 
1.46.   In 2020, the mai n destinations of exports of goods from Liechtenstein were Germany, the 
United  States, Austria, France, and China. The EU -27 accounted for 58.2% of Liechtenstein's 
merchandise exports (Table  A1.6). The main sources of merchandise imports into Liechtenstein  in 
2020 were Germany, Austria, China, and the United  States. The EU -27 represented 75.8% of 
Liechtenstein's merchandise imports (Table  A1.5).  It should be noted, however, that the statistics 
on Liechtenstein's trade in goods do not cover trade with and vi a Switzerland . 
 
115 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 22.  
116 FCA (2021), Annual Report: Swi ss Foreign Trade in 2020 , p. 7.  
117 This change reflects a long -term trend. Between 2005 and 2019, the share of the United  States in 
Swiss merchandise exports increased from 10.4% to 17.3% and that of China increased from 2.1% to 5.5%. 
Büchel, K., Legge, S., Pochon, V., and Wegmüller, P. (2 020), "Swiss Trade During the COVID -19 Pandemic: An 
Early Appraisal", Swiss Journal of Economics and Statistics , 156:22.  
118 See also FCA (2021), Annual Report: Swiss Foreign Trade in 202 0, p. 19. Regarding the role of the 
United  States and China in Swiss fo reign trade, a recent study based on the gravity model applied to 
international trade confirms the importance of both distance and size of trading partner as determinants of the 
geographical pattern of Swiss foreign trade. The study finds a negative relati onship between trade and distance 
in that "a 1% increase in distance leads to a 0.8% decrease in imports and exports" and a positive and 
disproportionate relationship between trade and size of trading partner in that "if the size of the economy 
grows by 1% , imports increase by 1.3% and exports by 1.2%". FCA (2021), Annual Report: Swiss Foreign 
Trade in 2020 , p. 31. 
119 The authorities indicate that, apart from the possible impact of Brexit, the decline in exports to the 
United Kingdom is at least partially a reflection due to certain statistical factors, for example, in respect of 
goods first shipped to the European  Union and subsequently exported to the United Kingdom.  
120 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 18. 
121 Imports from the United  Kingdom declined by 45% in 2020.  
122 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 26.  
122 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 25.  
123 FCA (2021), Annual Report: Swiss Foreign Trade in 2020 , p. 24.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 30 - 
 
  Chart 1.4 Product composition of merchandise trade, 2016 and 2020  
 
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques. Based on Swiss national 
nomenclature, "nature of goods", created by the FCA (now the FOCBS) . 
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS.  
WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 31 - 
 
  Chart 1.5 Direction of merchandise trade, 2016 and 2020  
 
Note:  Calculations based on total "business cycle" (total 1) withou t gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on trade statistics provided by the authorities.  
1.47.   Switzerland's recent Foreign Economic Policy Strategy define s as one central area of action 
boosting resilience through diversification by creating conditions allowing economic actors to 
diversify, both geographically and in terms of suppliers and customers.124 Regarding the challenges 
posed by the pandemic for glob al supply chains, the Strategy notes that "Switzerland's 
geographically diversified economic relations largely mitigated the supply bottlenecks during the 
COVID -19 crisis" and that "Switzerland's value and logistic chains proved relatively resilient on the  
whole".125 
 
124 Federal Council  (2021), Switzerland's Foreign Economic Policy Strategy , p. 6.  
125 Federal Council  (2021), Switzerland's Foreign Economic Policy Strategy , p. 22.  
WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 32 - 
 
  1.48.   In 2019, there were 52,163 exporting companies. Large companies (at least 250  employees) 
dominated merchandise exports, with a share of 58%, while medium -sized companies 
(50-249 employees) accounted for 29%. While 84% of Swiss exporting companie s are small 
companies (fewer than 50 employees), they accounted for only 13% of merchandise exports.126 The 
shares of large and medium -sized companies in Swiss merchandise imports were, respectively, 39% 
and 32%, while small companies (94% of the total numb er of importing companies) accounted for 
27% of imports.127 
1.49.   The review period witnessed a continuation of the long -term trend towards a declining 
services trade balance.128 The growth of Switzerland's services exports was modest in recent 
years.129 Services exports increased to CHF  132 billion in 2019 and fell by 17% to CHF 109.3  billion 
in 2020, when tourism and transport were the services sectors most strongly affected by the 
economic impact of the COVID -19 pandemic. Services imports increased fro m CHF  119.5  billion in 
2016 to CHF  131.4  billion in 2019 and declined by 10% in 2020 to CHF  118.6  billion in 2020 
(Table  1.4). Exports and imports of services in 2021 are expected to increase by 8.5% and 7%, 
respectively.130 Licence fees accounted for the largest share in services exports during the review 
period, followed by financial services, tourism, and transport. Similarly, licence fees also constituted 
the largest share of services imports, followed by research and dev elopment services, tourism, and 
telecommunications, computer and information services (Table  1.4). 
Table 1.4 Trade in services by sector and destination/origin, 2016 -20 
(CHF billion, %)   2016  2017  2018  2019  2020 
Total exports (CHF billion)   123.8   125.0   134.6   132.2   109.3  
By sector       
   Licence fees  20.6 19.9 22.5 22.5 19.9 
   Financial services  15.7 15.9 15.6 16.3 18.8 
   Transport  9.7 10.7 11.2 11.3 11.1 
Telecommunications, computer and information 
services  11.5 10.7 9.5 8.5 9.3 
   Tourism  13.3 13.6 13.1 13.6 8.6 
   Insurance and pension services  6.2 6.6 5.4 5.8 6.7 
   Technical, trade -related, and other business services  8.0 7.7 5.8 5.2 6.7 
   Consulting services  4.9 5.4 5.4 5.1 6.5 
   Research and development services  4.7 3.9 4.7 4.8 5.3 
   Other services  5.4 5.6 6.7 7.0 7.2 
By major destinations       
   EU-27 38.7  41.4  40.5  40.0  39.4  
     Germany  12.0  11.6  11.5  10.8  10.3  
     France  6.7  6.2  6.2  6.2  5.7  
     Italy 4.8  4.9  4.7  4.6  4.6  
   United Kingdom  7.4  7.4  8.6  9.7  11.4  
   United  States  20.2  18.5  16.4  16.4  15.1  
   China  3.0  3.3  3.5  3.5  3.1  
   Singaporea 1.5  2.0  2.3  2.0  2.0  
   Japan  2.0  1.9  1.9  2.0  2.0  
Total imports (CHF billion)   119.5  127.0   130.3   131.4   118.6  
By sector       
   Licence fees  17.0 16.7 18.1 17.1 20.9 
   Research and development services  13.6 15.7 15.7 15.6 16.9 
   Telecommunications, computer and information 
services  13.7 13.7 11.8 12.0 12.5 
   Consulting services  12.8 11.8 12.0 12.2 11.9 
   Technical, trade -related, and other business services  8.7 9.4 7.4 8.2 10.1 
   Transport  8.6 9.0 10.3 10.0 9.3 
   Tourism  14.5 14.8 14.3 14.3 8.1 
   Financial services  2.9 2.9 2.9 2.6 2.8 
   Insurance and pension services  1.3 1.3 1.3 1.5 1.7 
   Other services  6.6 4.7 6.2 6.5 5.7 
 
126 FCA (2021) Annual Report: Swiss Foreign Trade in 202 0, pp. 19 -20. 
127 FCA (2021), Annual Report: Swiss Foreign T rade in 202 0, pp. 26-27. 
128 WTO document WT/TPR/S/355/Rev.1, 22  September  2017, para.  1.36.  
129 OECD (2019), OECD Economic Survey s: Switzerland , p. 9. Exports of financial services increased 
during the review period but have stagnated when considered over a longer period.  
130 SECO (2021), Konjunkturtendenzen Winter 2021/2022 , p. 21.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 33 - 
 
   2016  2017  2018  2019  2020 
By major origin       
   EU-27 43.0  42.6  43.4  43.4  41.3  
     Germany  13.7  14.1  14.0  13.5  13.3  
     France  6.8  6.2  6.0  6.1  5.2  
     Italy 5.0  4.9  5.2  5.0  4.0  
   United Kingdom  9.1  8.5  8.5  8.8  8.5  
   United  States  25.8  28.3  26.6  26.2  27.6  
   Japan  2.0  2.0  1.9  2.3  2.9  
   China  1.4  1.6  1.8  1.8  1.8  
   Indiaa 1.3  1.3  1.4  1.6  1.8  
a No data on research and development services.  
Source:  SNB, Swiss Balance of Payments . Viewed at: https://data.snb.ch/en/topics/aube#!/cube/bopovera . 
1.50.   The principal individual country markets for Swiss services exports are the United  States, the 
United Kingdom, Germany, and France. Th e EU-27 accounted for around 40% of Swiss services 
exports during the review period. The major sources of Swiss services imports are the United  States, 
Germany, and the United Kingdom, with the EU -27 accounting for 43% of Swiss services imports 
during the review period (Table  1.4). 
1.4.2   Trends and patterns in FDI  
1.51.   Switzerland continues to rank among the top 10 economies in terms of inward and outward 
FDI stock.131 Switzerland's inward FDI stock is heavily concentrated in services, particularly finance 
and holding companies (Table  A1.7). Swiss outward FDI is also dominated by services but is 
somewhat more diversified, as manufacturing accounts for more than one thir d of the outward FDI 
stock (Table  A1.7).  
1.52.   FDI flows to Switzerland have fallen since 2015 and were negative in 2018 -20, reflecting net 
disinvestment as non -resident investors effected substantial withdrawals from resident companies, 
particularly by reducing  equity capital as part of corporate restructuring. As in the case of the 
Netherlands, the recent negative FDI inflows to Switzerland reflect the conduit nature of 
Switzerland's annual FDI flows.132 Direct investment in Switzerland is made mainly through 
intermediate companies in European holding company locations.133 Most of the disinvestment 
occurred in the category of finance and holding companies. The amount of net disinvestment 
amounted to CHF  82 billion in 2018, CHF  105 billion in 2019, and CHF  153 billion in 2020 
(Table  A1.7). Inward FDI stock decreased by CHF  160 billion in 2020 to CHF  1,216  billion. Outward 
flows fell dramatically from 2016 to 2017 and turned negative in 2019. The net disinvestment abroad 
amounted to CHF  34 billion in 2020, compared t o CHF  54 billion in 2019, and was due primarily to 
finance and holding companies (Table  A1.7). Outward FDI stock increased slightly during the review 
period (Table  A1.7). In 2020, outward FDI stock amounted to CHF  1,460  billion, a decline of 
CHF 17 billion  compared to 2019.  
1.53.   The geographical orientation of Swiss outward FDI and provenance of inward FDI is contained 
in Table  A1.8.  
 
 
131 It should be noted that because of the monetary union between Switzerland and Liechtenstein, the 
statistics on inward and outward FDI in this subsection also cover Liechtenstein.   
132 UNCTAD (2021), UNCTAD World Investment Report 2021 , p. 76.  
133 SNB (2021), Direct Investment 2020 , pp. 13 -14. In terms of immediate investors, the 
European  Union represents 73% of the inward capital stock in 2020 and the United  States 13%; by contrast, 
when analysed in terms of ultimate beneficial owners, the European  Union accounts for 29% and the 
United States for 47% of the inward capital stock. SNB (2021), Direct Investment 2020 , p. 15.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 34 - 
 
 2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.1   Switzerland  
2.1.  The Swiss Confederation is a federal state comprising 26  cantons. Approximately 2,300  local 
authorities (communes) form the third political administrative level. The principle of subsidiarity 
applies; thus, matters are  dealt with at the lowest political level possible. The Federal Constitution 
assigns exclusive responsibility for certain tasks to the Confederation, including foreign and security 
policy, customs and monetary matters, nationally applicable legislation, an d defence. Subjects not 
expressly designated as federal matters are the responsibility of the cantons. The cantons thus 
exercise considerable autonomy in several areas, including taxation, health, education, and cultural 
policies. Over the review period, t here were three amendments to the Constitution1, one of which 
(on food security) may have trade -related implications (Section  4.1). The main features and 
responsibilities of the different levels of government are described in Switzerland's previous Review  
and remain unchanged.2 
2.2.  Due to Switzerland's system of direct democracy, certain matters are subject to mandatory 
referendum or optional referendum. Mandatory referenda are for amendments to the Federal 
Constitution, accession to organizations for collect ive security or to supranational communities, and 
certain emergency acts. Matters subject to optional referendum include federal laws, federal 
decrees, and international treaties. A trade agreement may be subject to optional referendum if it 
contains impor tant legal norms or requires federal implementing legislation3; one such referendum 
was held on the Economic Partnership Agreement between the European Free Trade Association 
(EFTA) States and Indonesia during the review period (Table  2.1). A popular init iative may, in 
principle, be organized by any Swiss citizen eligible to vote. In practice, initiatives are tabled by 
ad hoc committees supported by social groups with (or against) recommendations of the political 
parties.4 From 1  January  2017 to 31  January  2022, there were 25  votes on federal decrees and 
17 votes on popular initiatives.5 Referenda held over the review period that have, or could have had, 
an impact on trade and investment in Switzerland are set out in Table  2.1. Voters may also be invited 
to decide on cantonal and communal matters in local referenda.  
Table 2.1 Selected referenda and popular initiatives, 1  January  2017 to 31  January  2022  
Subject (votation date)  Outcome  
Popular initiative "Reducing taxes on wages, taxing capital fairly" (26/09/2021)  Rejected  
Popular initiative "For clean drinking water and healthy food – no subsidies for the use of 
pesticides and the use of antibiotics for proph ylaxis" (13/06/2021)  Rejected  
Popular initiative "for a Switzerland free from synthetic pesticides" (13/06/2021)  Rejected  
Federal decree on the legal basis for ordinances of the Federal Council to overcome the 
COVID -19 epidemic (COVID -19 Act) (13/06/2021 ) Accepted  
Federal decree on the reduction of greenhouse gas emissions (CO 2 Act) (13/06/2021)  Rejected  
Federal decree on Electronic Identification Services (07/03/2021)  Rejected  
Federal decree approving the Broad Economic Partnership Agreement between the EFTA States 
and Indonesia (07/03/2021)  Accepted  
Popular initiative "responsible companies – to protect people and the environment" 
(29/11/2020)  Rejected  
Popular initiative "for a ban on financing producers of war material" (29/11/2020)  Reject ed 
Popular initiative "for moderate immigration" (limitation initiative) (27/09/2020)  Rejected  
Federal decree on tax reform and AHV financing (19/05/2019)  Accepted  
 
1 Amendments were made to the following articles of the Constitution: Article  104a on Food Security in 
2017 (AS 2017 6735); Article  88 on Cycle Paths as well as Footpaths and Hiking Trails in 2019 (AS 2019 525) ; 
and Article  10a on Prohibition of Veiling One's Face in 2021 (AS 2021 310). Each amendment was made as a 
reaction to a related popular initiative.  
2 WTO document WT/TPR/S/355/Rev.1, 22  September  2017.  
3 Feder al Constitution, Article  141.1(d).  
4 Requirements for initiating popular initiatives and for challenging or initiating referenda on matters 
subject to optional referenda are described in Switzerland's previous Review. WTO document 
WT/TPR/S/355/Rev.1, 22  September  2017.  
5 Details of these referenda on a chronological basis, as well as their outcomes, were viewed at: 
https://www.bk.admin.ch/ch/f/pore/va/vab_2_2_4_1.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 35 - 
 
 Subject (votation date)  Outcome  
Federal decree approving and implementing the exchange of notes between Switzerland and the 
European  Union concerning the adoption of directive (EU) 2017/853 amending the EU directive 
on weapons (development of the Schengen acquis) (19/05/2019)  Accepted  
Popular initiative "for healthy food produced under fair and ecological c onditions" (fair food 
initiative) (23/09/2018)  Rejected  
Popular initiative "for food security. Agriculture concerns us all" (23/09/2018)  Rejected  
Federal law on gambling (10/06/2018)  Accepted  
Federal decree on the new financial regime 2021 (04/03/2018)  Accepted  
Federal decree on food security (direct counter -project to the popular initiative "for food 
security") (24/09/2017)  Accepted  
Law on Energy (21/05/2017)  Accepted  
Federal decree on improving tax conditions with a view to strengthening the competitiveness of 
Swiss business (Corporate Tax Reform Act III)  Rejected  
Source:  Federal Chancellery. Viewed at: https://www.bk.admin.ch/ch/f/pore/va/vab_2_2_4_1.html . 
2.3.  A new law on government procurement entered into force in January  2017, and there have 
been several amendments to existing trade and investment -related laws in Switzerland (Table  2.2). 
The substance of these changes is described in the relevant subsections of Section  3. New sectoral 
laws were enacted on energy, gambling, and financial services.  
Table 2.2 Main trade and investment -related laws in Switzerland, January 2022  
Legislation  Entry into force/  
Latest amendment  Reference  
Customs Law of 18  March 2005a 1 May 2007/2020  RS 631.0  
Ordinance on Attestation of the Non -Preferential Origin of 
Goods of 9  April 2008a  1 May 2008/2014  
 RS 649.31  
Federal Law on Customs Tariffs of 9  October 1986a 1 January  1988/2021  RS 632.10  
Federal Law on the Internal Market of 6  October  1995 1 July 1996/2019  RS 943.02  
Federal Law on External Economic Measures of 25  June 
1982a 1 January  1983/2006  RS 946.201  
Federal Law on the Application of International Sanctions of 
22 March 2002a 1 January  2003/2020  RS 946.231  
Federal Law on National Economic Supply of 17  June 2016a  1 June 2017/20 20 RS 531  
Federal Law Regulating Value -Added Tax of 12  June 2009a 1 January  2010/2015  RS 641.20  
Federal laws on taxation of tobacco, beer, alcohol, motor 
vehicles and mineral oils, 1932 -2006a 1933-2007/2021  RS 641.31; 
641.411; 680; 
641.51; and 
641.61  
Federal Law on War Material of 13  December 1996a 1 April 1998/2020  RS 514.51  
Federal Law on Export Promotion of 6  October  2000 1 March  2001/2019  RS 946.14  
Federal Law on Swiss Insurance against Export Risks of 
16 December  2005 1 June 2006/2014  RS 946.10  
Federal Law on Technical Barriers to Trade of 
6 October  1995a  1 July 1996/2017  RS 946.51  
Federal Law on Protection against Hazardous Substances and 
Preparations of 15  December 2000a 1 January  2005/2020  RS 813.1  
Federal Law on Medicinal Products and Medical Devices of 
15 December 2000a 1 January  2002/2020  RS 812.21  
Federal Law on Foodstuffs and Utility Articles  1 May 2017/2021  RS 817.0  
Federal Law on the Protection of Animals of 
16 December  2005a 1 September  2008/2020  RS 45 5 
Federal Law against Unfair Competition of 19  December  1986 1 March  1988/2021  RS 241  
Federal Law on Cartels and Other Impediments to 
Competition of 6  October  1995 1 February  1996/2021  RS 251  
Law on Price Surveillance of 20  December  1985 1 July 1986/2012  RS 942.20  
Federal Law on Government Procurement of 21  June 2019a 1 January  2021  RS 172.056  
Federal Laws on intellectual property and protection of data, 
1931-2001a 1932-2002/2021  RS 23 et seq .  
a Also applicable to Liechtenstein, due to the Customs Treaty.  
Source:  Fedlex. Viewed at: https://www.fedlex.admin.ch/fr/cc/internal -law/1 . 
2.4.  As indicated by the authorities, the process to propose new, or to amend  existing, primary laws 
and major subordinate regulations is launched by the Federal Council through a formal online WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 36 - 
 
 consultation, which lasts for at least 12  weeks.6 There is an official list of stakeholders that is 
consulted systematically. Domestic or foreign companies that are not on the official list may also 
make comments, as can members of the general public. The consultation documents include a 
summary of the consequences of the project. At the end of the legislative process, the dispatch sent 
to the Federal Assembly  entails detailed information about the potential impacts and the alternatives 
examined (including a summary of regulatory impact assessment (RIA)).  
2.5.  Switzerland continues to maintain RIA requirements  with a view to ensuring evidence -based 
decision -making and the development of quality legislation . RIA rules were  revised in 
December  20197, reportedly due to concerns about the underuse of RIA tools and their insufficient 
quality.8 Under the new rules, RIAs apply to all federal laws and regulations and should be 
proportionate to their economic importance. The novel first stage in the process is a review of a 
checklist of points9, undertaken by the administrative unit responsible fo r drafting the 
law/regulation. The unit must report on the results of this checklist in its proposal to the Federal 
Council. If the legislative project potentially has medium to large economic consequences, an 
in-depth RIA must then be undertaken, which is  carried out by the responsible unit together with 
the State Secretariat for Economic Affairs (SECO), and the results are published online. All in -depth 
RIAs are published online. The obligation to quantify regulatory costs has been extended and 
systematiz ed, such as for all new regulations that cause additional regulatory costs for more than 
1,000 companies or that place a particular burden on an economic sector. Under Article  3.2(6) of 
the new RIA rules, weblinks to RIA documents need to be provided in ex planatory reports for public 
consultations.10 These reports contain answers to relevant legal questions and a summary of all RIA 
questions (e.g. on the expected impact of the regulation or on alternative regulatory options that 
had been considered). SECO i ssues guidelines for conducting RIAs, and reviews selected RIAs to 
provide non -public opinions on their quality.11 
2.1.2   Liechtenstein  
2.6.  Over the review period, Liechtenstein introduced a new Business Act (LR 930.1) 
(Section  2.4.2), a Blockchain Act (Law on Tokens  and TT Service Providers), and legislation on data 
protection. It also amended laws on the provision of services, public procurement, intellectual 
property rights, and taxes (Table  2.3). The substance of most of these changes is described in the 
relevant subsections of Section  3. 
Table 2.3 Main trade and investment -related laws in Liechtenstein, January 2022  
Legislation  Entry into force/  
latest amendment  Reference  
Business Act  30 September  2020/2020  LR 930.1  
Law on the Provision of Services  9 December  2010/2018  LR 930.4  
Law on the Promotion of Liechtenstein as a Business and 
Tourism Location (Location Promotion Act)  1 January  2012 LR 935.20  
Law Concerning the Application of International Sanctions  29 January  2009/2019  LR 946.21  
Law on National and Municipal Taxes (Tax Act)  18 November  2010/2021  LR 640.0  
Law against Unfair Competition  29 December  1992/2016  LR 240  
Law on the Award of Public Works, Delivery and  Service 
Contracts (Law on Public Procurement)  2 September  1998/2020  LR 172.05  
Law on Copyright and Related Rights (Copyright Act)  23 July 1999/2021  LR 231.1  
 
6 The webpage for p ublic consultations is: 
https://www.fedlex.admin.ch/de/consultation -procedures/ongoing . 
7 Federal Council Directives Concerning the Regulatory Impact Analysis Applicable to Fede ral Legislative 
Projects. Viewed at: 
https://www.seco.admin.ch/dam/seco/fr/dokumente/Wirtschaft/Wirtschaft spolitik/RFA/rfa_richtlinien.pdf.down
load.pdf/Directives -AIR.pdf . 
8 As reported by the OECD, the Swiss Federal Audit Office reviewed the quality of the Swiss RIA 
framework in 2016 and found that available RIA tools were underused and that close to 30% of R IAs examined 
were of insufficient quality. OECD (2018), OECD Regulatory Policy Outlook 2018 , Country Profiles: Switzerland . 
9 This so -called "quick check" addresses five points: (i)  necessity and possibility of state intervention; 
(ii) possible options; (iii)  consequences for different groups in society; (iv)  consequences for the economy as a 
whole; and (v)  practical aspects of execution . The checklist and a manual on the method and procedure to 
apply the RIA are found at: www.seco.admin.ch/rfa . 
10 These explanatory reports may be viewed at: 
https://www.fedlex.admin.ch/de/consultation -procedures/ongoing . 
11 SECO.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 37 - 
 
 Legislation  Entry into force/  
latest amendment  Reference  
Law on the Protection of Topographies of Semiconductor 
Products (Topography Law)  23 July 1999/2018  LR 231.2  
Law on the Exercise of Copyrights and Related Rights by 
Collecting Societies  12 June 2018  LR 231.3  
Law on the Protection of Trade Marks and Indications of Origin 
(Trade Mark Protection Act)  20 February  1997 LR 232.11  
Law on th e Protection of Design (Design Act)  28 April 2016  LR 232.12  
Data Protection Act  7 December  2018 LR 235.1  
Law on Tokens and TT Service Providers (Blockchain Act)  1 January  2020/2021  LR 950.6  
Source:  Liechtenstein Gazette.  
2.7.  As indicated by the authorities, the majority of changes to existing laws and regulations and 
most new laws and regulations are due to the implementation of EU law as a consequence of 
Liechtenstein's participation in the European Economic Area (EEA). No public consultations a re 
undertaken for these laws/regulations. The public can comment on all other draft primary laws in 
public online consultations.12 When the Government proposes a motion to the Federal  Assembly , it 
must contain an impact assessment that follows a fixed form at covering a justification for the motion, 
its main elements, the public consultation, its constitutionality/legality, and its effects on the 
workload and use of resources of the administration.13 The authorities drew attention to the fact that 
the small size of the public administration and the many possibilities for direct contact with policy 
makers favour stakeholder feedback in general.  
2.2  Trade Policy Formulation and Objectives  
2.8.  SECO, within the S wiss Federal Department for Economic Affairs , Education and Research  
remains the main agency dealing with economic policy issues in Switzerland. SECO's responsibilities 
include formulating and implementing trade policy and representing Switzerland in multi lateral 
institutions.  
2.9.  As noted by the authorities at the time of the previous Review, Switzerland has a small 
domestic market and its exports represent a sizeable share of GDP; as such, Switzerland owes its 
prosperity to the international competitiveness of its enterprises, their capacity to innovate, and 
their specialization in the production of high value -added goods and services. To maintain 
Switzerland's advantages, its trade policy takes into account the broader context of its growth p olicy. 
Central to this policy is increased labour productivity and the strengthening of competitiveness and 
innovative spirit. Trade policy aims to promote and guarantee open markets, while contributing to 
sustainable development, and it encompasses trade facilitation to reduce costs for companies 
participating in global supply chains.14 This focus remains the same.  
2.10.   Trade policy for the medium to long term will also be guided by Switzerland's new Foreign 
Economic Policy Strategy, which was adopted by the Fe deral Council on 24  November  2021.15 While 
not representing a fundamental change in direction for Switzerland's foreign economic policy, the 
new Strategy focuses on global market integration with trade policy objectives featuring prominently 
in central act ion areas.16 It seeks to ensure foreign policy preserves and increase the country's 
prosperity, achieve Sustainable Development Goals, take into account the changing geopolitical 
environment and perceived emergence of new protectionist tendencies, and meet  the demands of 
sustainable development and increasing digitalization. Trade policies are also developed in the 
 
12 Public consultations were viewed at: https://www.llv.li/inhalt/11076/amtsstelle n/vernehmlassungen . 
The currently running consultations were viewed at: 
https://www.llv.li/inhalt/11494/amtsstellen/laufende -vernehmlassungen . Stakeholders' inputs to con sultations 
are published at: 
https://www.llv.li/inhalt/12458/amtsstellen/externe -stellungnahmen -zu-vernehmlassungsberichten . 
13 Reports and motion s were viewed at: https://bua.regierung.li/BuA/default.aspx?modus=nr . 
14 WTO document WT/TPR/M/355, 11  July 2017.  
15 Federal Council (2021),  Switzerland's Foreign Economic Policy Strategy . This replaces the foreign 
economic policy strategy issued in 2004, as updated in 2009 and 2014.  
16 For example, action areas identified in the strategy, inter alia, include prioritization of a multilateral 
approach to asserting Switzerland's interests, keepin g import and export trade as open and regulated as 
possible, focusing on main trading partners while maintaining an independent position in the changing 
geopolitical environment, and boosting resilience to crisis situations by enabling access to geographic ally 
diverse and resilient markets.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 38 - 
 
 context of other national strategies, such as the 2030 Sustainable Development Strategy and its 
associated 2021 -2023 Action Plan, adopted in Jun e 2021.17 
2.11.   The Office of Economic Affairs continues to implement Liechtenstein's economic policy, and 
the Office of Foreign Affairs coordinates Liechtenstein's membership in international agreements 
(including the WTO and EFTA), treaties, and conventions, i ncluding the administration of its rights 
and obligations. The two offices do not have their own specific trade policy/strategy but have been 
implementing the Government's overall foreign policy as most recently updated in 2019, the trade 
elements of which  are Liechtenstein's reliance on the four pillars of the Customs and Monetary Union 
with Switzerland, the EEA, EFTA, and the WTO, as well as financial centre policy.18 Liechtenstein's 
trade policy objectives are also incorporated into the 2021 -2025 Governm ent Programme, which 
seeks, inter alia, to ensure economic sustainability through continued access to the European 
internal market, expanded access to foreign markets in a way that is as free of obstacles and 
discrimination as possible, and an increase in Liechtenstein's network of double -taxation 
agreements.19 
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.12.   Switzerland and Liechtenstein are original Members of the World Trade Organization. They 
grant at least MFN treatment to all Members of the WTO, except those sub ject to economic sanctions 
(Section  3.1.4). Both countries are signatories to the Agreement on Government Procurement (GPA) 
(including the Revised GPA, which Liechtenstein ratified in 2013 and Switzerland in 2020, as well as 
the Information Technology Agre ement. In addition, Switzerland is a signatory to the agreements 
on trade in pharmaceutical products and trade in civil aircraft. Switzerland and Liechtenstein 
accepted the WTO  Agreement on Trade Facilitation in September 2015. Both countries support the 
Buenos Aires Declaration on Women and Trade and participate in the following joint statement 
initiatives (JSIs): e -commerce; micro, small, and medium -sized enterprises (MSMEs); and domestic 
regulation of trade in services. In addition, Switzerland participa tes in the JSI on investment 
facilitation for development.  
2.13.   In the Doha Development Agenda negotiations, both Switzerland and Liechtenstein have been 
participating in the G -10 group and the W52 sponsors.20 Additionally, Switzerland is among the 
Friends of A mbition (NAMA) and Friends of A -D Negotiations (FANs). Switzerland and Liechtenstein 
are participating in the structured discussions on trade and environmental sustainability launched at 
the WTO's Trade and Environment Week in 2020 and sponsoring the Minis terial Statement on Fossil 
Fuel Subsidies Reform. Switzerland has also joined the informal dialogue on plastics pollution and 
environmentally sustainable plastics trade. Switzerland joined the discussions launched in July  2019 
on the proposed Agreement on Climate Change, Trade and Sustainability (ACCTS).  
2.14.   From 1  January  2017 to 31  January  2022, Switzerland was involved in one WTO dispute 
settlement case as complainant (DS556: United  States – Certain Measures on Steel and Aluminium 
Products ) and none as respo ndent. It also reserved its third -party rights in 22  disputes involving 
other WTO Members.21 Liechtenstein has not been involved in any dispute settlement cases as 
complainant, respondent, or third party. Over the same period, Switzerland submitted 
187 notifications to the WTO (including revisions) (Table  2.4). As previously, Switzerland's 
notifications frequently include Liechtenstein, although Liechtenstein also provides separate 
notifications for certain measures. Liechtenstein submitted 31 notifications  over the review period 
(Table  2.5). As of 31  January  2022, notifications were outstanding for Switzerland and Liechtenstein 
 
17 Federal Office for Spatial Development, 2030 Sustainable Development Strategy .  
18 Ministry of Foreign Affairs, Education, and Cultural Affairs (2016), Liechtenstein Foreign Policy ; and 
Government of the Principality of Liechtenstein (2019), Priorities and Objectives of Liechtenstein Foreign Policy . 
19 Government Programme 2021 -2025. Vie wed (in German) at: 
https://www.regierung.li/files/attachments/20211005 -Broschuere -Regierungsprogramm -2021-2025-63769046
9875425556.pdf?t=637707485734142794&nid=14871&groupnr=14871&lang=de . 
20 W52 sponsors are the s ponsors of a proposal for "modalities" in negotiations on geographical 
indications (the multilateral register for w ines and spirits and extending the higher level of protection beyond 
wines and spirits) and "disclosure" (patent applicants to disclose the origin of genetic resources and traditional 
knowledge used in the inventions). WTO document TN/C/W/52, 19  July 2008.  
21 DS542, DS544, DS547, DS548, DS550, DS551, DS552, DS554, DS557, DS558, DS559, DS560, 
DS561, DS564, DS566, DS577, DS583, DS585, DS595, DS597, DS602, and DS604.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 39 - 
 
 in the area of agriculture (e.g.  tariff quotas, domestic support), and for Switzerland in the area of 
subsidies. Notifications are also pending for EFTA's RTAs with the Gulf Cooperation Council (GCC), 
Ecuador, and Indonesia.  
Table 2.4 Notifications made by Switzerland to the WTO, 1  January  2017 to 
31 January  2022  
Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreement on Agriculture  
Articles 10 and 18.2  G/AG/N/CHE/79, 18/01/2017  
G/AG/N/CHE/82, 11/10/2017  
G/AG/N/CHE/89 -91, 20/02/2019  
G/AG/N/CHE/100 -102, 26/03/2020  
G/AG/N/CHE/106 -107, 04/05/2021  
G/AG/N/CHE/110 -111, 05/10/2021  
G/AG/N/CHE/116, 21/01/2022  Export subsidies; annual  
Article  18.2 G/AG/N/CHE/84, 07/02/2018  
G/AG/N/CHE/87, 31/10/2018  
G/AG/N/CHE/88, 02/11/2018  
G/AG/N/CHE/94 -95, 02/10/2019  
G/AG/N/CHE/109, 11/05/2021  
G/AG/N/CHE/114, 10/12/2021  Domestic support; annual  
Article  18.2 G/AG/N/CHE/108, 06/05/2021  Administration of tariff quotas; annual  
Article  18.2 G/AG/N/CHE/80, 12/09/2017  
G/AG/N/CHE/92, 24/06/2019  
G/AG/N/CHE/98, 08/01/2020  
G/AG/N/CHE/103, 29/10/2020  
G/AG/N/CHE/113, 09/12/2021  Imports under tariff quotas; annual  
Article  18.3 G/AG/N/CHE/96, 03/10/2019  New or modified domestic support 
measures exempt from reduction; ad hoc   
Articles 5.7 and 18.2  G/AG/N/CHE/78, 16/01/2017  
G/AG/N/CHE/83, 17/01/2018  
G/AG/N/CHE/93, 29/07/2019  
G/AG/N/CHE/99, 09/01/2020  
G/AG/N/CHE/104, 20/01/2021  
G/AG/N/CHE/115, 20/01/2022  Special safeguard provisions; annual  
Article  16.2  G/AG/N/CHE/81, 29/07/2017  
G/AG/N/CHE/85, 27/02/2018  
G/AG/N/CHE/86/Rev.1, 24/06/2019  
G/AG/N/CHE/97, 05/11/2019  
G/AG/N/CHE/105, 01/02/2021  
G/AG/N/CHE/112, 11/11/2021  Actions taken within the framework of 
the Decision on Measures Concerning the 
Possible Negative Effects of the Reform 
Programme on Least -Developed and Net 
Food-Importing Developing Countries; 
annual  
Agreement on Government Procurement  
Appendix I of GPA 
1994 GPA/THR/CHE/1, 09/01/2018  
GPA/THR/CHE/2, 07/01/2020  
GPA/THR/CHE/3, 21/12/2021  Threshold values in national currencies; 
every two years  
Article  XIX:5 of GPA 
1994 GPA/STAT(17)/CHE/1, 03/12/2018  
GPA/STAT(18)/CHE/1, 28/08/2019  
GPA/STAT(19)/CHE/1, 28/10/2020  
GPA/STAT(20)/CHE/1, 28/07/2021  Statistics; annual  
Article  XXII:5 of the 
Revised GPA  GPA/LEGIS/CHE/1, 06/01/2021  Domestic legislation; ad hoc  
Article  XXII:8 of the 
Revised GPA  GPA/WPS/STAT/28, 18/05/2018  Work Programme on the Collection and 
Reporting of Statistical Data; once  
Agreement on Import Licensing Procedures  
Articles 1.4(a) and 
8.2(b)  G/LIC/N/1/CHE/4, 22/09/2017  
G/LIC/N/1/CHE/5, 04/12/2017  
G/LIC/N/1/CHE/6/Rev.1, 02/02/2018  Laws and regulations; once  
Articles 5.1 -5.4 G/LIC/N/2/CHE/3, 07/03/2019  
G/LIC/N/2/CHE/4 -6, 01/10/2019  Laws and regulations; once  
Article  7.3 G/LIC/N/3/CHE/13, 22/09/2017  
G/LIC/N/3/CHE/14, 03/10/2018  
G/LIC/N/3/CHE/15, 08/10/2019  
G/LIC/N/3/CHE/16, 08/10/2020  
G/LIC/N/3/CHE/17, 04/10/2021  Completion of  questionnaire; annual  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 40 - 
 
 Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreement on Rules of Origin  
Article  5 and Annex  II, 
para. 4 G/RO/LDC/N/CHE/1, 27/06/2017  
G/RO/N/182, 15/04/2019  
G/RO/N/192, 20/01/2020  Changes in laws and regulations (rules of 
origin in effect); ad hoc   
Agreement on Subsidies and Countervailing Measures  
Articles  25.1 and 
XVI:1 of the 
GATT  1994 G/SCM/N/315/CHE, 13/02/2018  
G/SCM/N/343/CHE, 02/07/2019  Subsidy programmes; every three years 
for full notifications, annual for changes  
Agreement on Technical Barriers to Trade (latest notification)  
Article  2.10 G/TBT/N/CHE/246, 24/04/2020  Technical regulations, ad hoc  
Article  2.9 57 notifications from 
G/TBT/N/CHE/212, 01/02/2017 to 
G/TBT/N/CHE/267, 21/01/2022  Technical regulations, ad hoc  
Articles 2.9 and 5.6  G/TBT/N/CHE/214 -215, 07/02/2017  
G/TBT/N/CHE/217, 08/05/2017  
G/TBT/N/CHE/218, 09/05/2017  
G/TBT/N/CHE/220 -223, 24/07/2017  Technical regulations, ad hoc  
Article  5.6 G/TBT/N/CHE/253, 08/01/2021  Conformity assessment procedures; 
ad hoc 
Article  5.7 G/TBT/N/CHE/244, 11/04/2020  
G/TBT/N/CHE/245, 16/04/2020  Technical regulations, ad hoc  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article  7, Annex B  14 notifications from 
G/SPS/N/CHE/73, 21  June 2017 to  
G/SPS/N/CHE/86, 24/01/2022  Sanitary and phytosanitary measures; 
ad hoc 
Agreement on Trade Facilitation  
Articles 22:1 and 22:2  G/TFA/N/CHE/1, 30/06/2017  
G/TFA/N/CHE/3, 26/03/2019  
G/TFA/N/CHE/4, 16/09/2021  Notification of technical assistance and 
support for capacity -building; ad hoc  
Articles  1.4, 10.4.3, 
10.6.2, and 12.2.2  G/TFA/N/CHE/2/Rev.1, 08/10/2020  Notification on procedures for importation, 
exportation, and transit; ad hoc   
Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS)  
Article  63.2 IP/N/1/CHE/15; IP/N/1/CHE/G/30  
IP/N/1/CHE/14; IP/N/1/CHE/G/29  
IP/N/1/CHE/13; IP/N/1/CHE/ G/28 
IP/N/1/CHE/12; IP/N/1/CHE/G/27  
IP/N/1/CHE/11; IP/N/1/CHE/G/26  
IP/N/1/CHE/10; IP/N/1/CHE/G/25  
IP/N/1/CHE/9; IP/N/1/CHE/D/10  
IP/N/1/CHE/8; IP/N/1/CHE/D/9; 
IP/N/1/CHE/E/3  
IP/N/1/CHE/7; IP/N/1/CHE/C/9  
18/04/2017  
IP/N/1/CHE/23; IP/N/1/CHE/E/5; 
IP/N/1/CHE/G/33; IP/N/1/CHE/T/7, 
19/04/2017  Laws and regulations; once  
Agreement on Trade -Related Investment Measures (TRIMs)  
Article  5.1 G/TRIMS/N/1/CHE/1, 20/09/1995  Trade -related investment measures; once  
Article  6.2 G/TRIMS/N/2/Rev.1, 28/07/1997  Publications in which TRIMs may be found; 
ad hoc 
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  G/MA/QR/N/CHE/2, 31/08/2017  
G/MA/QR/N/CHE/3, 22/07/2020  Notifications of quantitative restrictio ns; 
every two years  
General Agreement on Trade in Services  
Article  III:3 S/C/N/873, 03/02/2017  
S/C/N/897, 23/10/2017  
S/C/N/922, 25/01/2019  
S/C/N/987, 12/02/2020  
S/C/N/988, 12/02/2020  
S/C/N/1044, 11/02/2021  
S/C/N/1074, 21/01/2022  Laws/regulations; ad hoc  
Article  III:4 and/or 
IV:2 S/ENQ/78/Rev.17, 07/06/2018  
S/ENQ/78/Rev.18, 01/02/2019  Enquiry point; once only  
Article  V:7(a)  WT/REG386/N/1, S/C/N/891, 
30/08/2017  
WT/REG394/N/1, S/C/N/919, 
29/10/2018  Economic integration agreements; ad hoc  
Article  VII:4 S/C/N/1039, 12/01/2021  Autonomous recognition measures; ad hoc  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 41 - 
 
 Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
General Agreement on Tariffs and Trade 1994  
Article  XVII:4(a)  
 G/STR/N/17/CHE, 09/05/2018  
G/STR/N/18/CHE/Rev.1, 21/12/2020  
 Notification on state trading enterprises; 
every three years for full notifications, on 
an annual basis for changes (as from 
2004, every two years)  
Article  XXIV:7(a)  WT/REG386/N/1, S/C/N/891, 
30/08/2017  
WT/REG394/N/1, S/C/N/919, 
29/10/2018  Agreement estab lishing a free -trade area; 
ad hoc  
Article  XXVIII:5  G/MA/343, 22/09/2017  
G/MA/377, 28/09/2020  Modification of the Schedule of 
Concessions (reservation of the right to 
modify the Schedule during a three -year 
period); every three years  
Source:  WTO Secretariat.  
Table 2.5 Notifications made by Liechtenstein to the WTO, 1  January  2017 to 
31 January  2022  
Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreement on Government Procurement  
Article  XIX:4 -5 of the 
Revised GPA  GPA/STAT(17)/LIE/1, 24/10/2018  
GPA/STAT(18)/LIE/1, 09/10/2019  
GPA/STAT(19)/LIE/1, 19/01/2021  
GPA/STAT(20)/LIE/1, 27/10/2021  Statistics; annual  
Article  VVII:5 of the 
Revised GPA  GPA/LEGIS/LIE/1, 24/07/2018  Domestic legislation; ad hoc  
Appendix I of GPA 
1994 GPA/THR/LIE/1/Rev.1, 19/02/2018  
GPA/THR/LIE/2, 08/01/2020  
GPA/THR/LIE/3, 21/12/2021  Threshold values in national currencies; 
every two years  
Agreement on Import Licensing Pro cedures  
Articles 1.4(a) and 
8.2(b)  G/LIC/N/1/LIE/4 -5, 09/01/2018  
G/LIC/N/1/LIE/6, 23/02/2018  Laws and regulations; once  
Article  7.3 G/LIC/N/3/CHE/15, 08/10/2019  
G/LIC/N/3/CHE/16, 08/10/2020  
G/LIC/N/3/CHE/17, 04/10/2021  Completion of questionnaire; annual  
Agreement on Trade Facilitation  
WT/L/931  G/TFA/N/LIE/1, 14/03/2018  Notification of technical assistance and 
support for capacity -building; ad hoc  
Agreement on Rules of Origin  
Article  5 and 
Annex  II, para.  4 G/RO/N/182, 15/04/2019  
G/RO/N/192, 20/01/2020  Changes in laws and regulations (rules 
of origin in effect); ad hoc   
Agreement on Subsidies and Countervailing Measures  
Articles  25.1 and 
XVI.1 of the 
GATT  1994 G/SCM/N/315/LIE, 26/03/2018  
G/SCM/N/343/LIE; 26/08/2021  
G/SCM/N/372/LIE, 26/08/2021  Subsidy programmes; every three 
years for full notifications, annual for 
changes  
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  G/MA/QR/N/LIE/2, 12/01/2018  
G/MA/QR/N/CHE/3, 22/07/2020  
G/MA/QR/N/LIE/3, 07/01/2022  Notifications of quantitative 
restrictions; every two years  
General Agreement on Trade in Services  
Article  V:7(a)  WT/REG386/N/1;  
S/C/N/891, 30/08/2017  
WT/REG394/N/1;  
S/C/N/919, 29/10/2018  Economic integration agreements; 
ad hoc 
General Agreement on Tariffs and Trade 1994  
Article  XVII:4(a)  G/STR/N/17/LIE, 23/05/2018  
 Notification on state trading 
enterprises; every three years for full 
notifications, on an annual basis for 
changes (as from 2004, every two 
years ) 
Article  XXIV:7(a)  WT/REG386/N/1;  
S/C/N/891, 30/08/2017  
WT/REG394/N/1;  
S/C/N/919, 29/10/2018  
WT/REG437/N/1, 18/01/2021  Agreement establishing a free -trade 
area; ad hoc  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 42 - 
 
 Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Article  XXVIII:5  G/MA/342, 22/09/2017  
G/MA/377, 28/09/2020  Modification of the Schedule of 
Concessions (reservation of the right to 
modify the Schedule during a 
three -year period); every three years  
Source:  WTO Secretariat.  
2.3.2   Regional trade agreements (RTAs)  
2.15.   Switzerland selects its potential RTA partners  on the basis of four criteria: (i)  their current 
and potential economic importance; (ii)  the extent of existing or potential discrimination resulting 
from RTAs between a prospective partner and major competitors of Switzerland; (iii)  the willingness 
of prospective partners to enter into negotiations and the corresponding prospects for success; and 
(iv) other considerations including how an RTA could contribute to economic stabilization and 
development of a prospective partner or its compatibility with Swis s foreign policy objectives.22 
2.16.   As at January  2022, Switzerland had RTAs in force with 73 economies, comprising its customs 
union with Liechtenstein; its bilateral accords with the European  Union; its participation in EFTA with 
Liechtenstein, Iceland, and N orway; EFTA's RTAs with 39 economies; and Switzerland's bilateral 
RTAs with the Faroe Islands, Japan, China, and the United Kingdom (Table  A2.1). Liechtenstein's 
network of RTAs is the largely the same, as it is a member of EFTA. However, its relationship with 
the European  Union is governed by its participation in the EEA; its relationship with the 
United  Kingdom in areas other than goods is governed by the EFTA -EEA members' RTA with the 
United  Kingdom, and Liechtenstein applies only the goods aspects of Sw itzerland's bilateral 
agreements. Almost all RTAs that have been notified to the WTO have been considered by the 
Committee on Regional Trade Agreements (CRTA) (Table  A2.1).  
2.17.   A study was recently commissioned by SECO to assess the extent to which Swiss compa nies 
use the tariff preferences available through RTAs (both with respect to their imports and exports). 
The findings were that overall in 2018, free trade agreements (FTAs) enabled Swiss importers to 
save CHF  2.5 billion in customs duties (corresponding t o an average utilization rate of 73% for 
imports). With respect to exports, the utilization rate was 80% in 2018, representing savings of 
CHF 1.8 billion in customs duties.23 A monitor has been developed for each trading partner, with 
data for 2019. A seco nd study mandated by SECO examined, in greater depth, the savings on duties 
accruing to different categories of importers. It found that both SMEs and large companies benefited 
equally from FTAs during the period 2016 -19, enjoying duty savings of 87% and 8 6%, respectively, 
when compared to the duties that would have been paid in the absence of FTAs. The average savings 
on duties for all categories of importers was 84% for the same period. Based on these results, SECO 
conducted a survey of importing companie s to identify the reasons for non -utilization of RTAs by 
some Swiss firms. Reportedly, the main reason was that companies are not sufficiently informed 
about the conditions that must be met in order to benefit from FTAs. The fulfilment of rules of origin 
also seemed to play a significant role. The authorities indicate that SECO is continuing to analyse 
the results of this questionnaire with a view to determining if further work can help promote 
increased use of Switzerland's FTAs by businesses.  
2.3.2.1   Switzerland and Liechtenstein Customs Union  
2.18.   The 1923 Swiss Liechtenstein Customs Union Treaty ties the two countries together with a 
common regime for goods24 and, following Liechtenstein's unilateral introduction of the Swiss franc 
in 1924, also a common currency.25 Switzerland acts on Liechtenstein's behalf on customs union 
matters, notably trade policy measures affecting imports and exports of goods, and agriculture. The 
EFTA Convention regulates the bilateral relationship in services, government procure ment, consumer 
 
22 SECO, Objectives and Strategy .  
23 SECO, Use of Free Trade Agreements .  
24 As set out in Articl e 4 and 5 of the Customs Union Treaty (LE 0.631.112), certain Swiss federal 
regulations, especially in customs, are applicable in Liechtenstein. This also applies to trade and customs 
agreements Switzerland concludes with third parties (Article  7). Pursuan t to Article  9, the annexes to the 
Treaty contain the Swiss regulations that are directly applicable to Liechtenstein (Annex I) and the Swiss 
treaties that are directly applicable to Liechtenstein (Annex II); these are periodically updated.  
25 The two count ries formalized their common currency arrangement in the Currency Treaty of 
19 June 1980.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 43 - 
 
 protection, investment, and certain intellectual property rights. In addition, Switzerland and 
Liechtenstein have concluded a large number of treaties (more than 100 bilateral treaties and 
numerous multilateral agreements).26 
2.3.2.2   European Free T rade Association (EFTA)  
2.19.   Switzerland is a founding member of EFTA, and Liechtenstein acceded in 1991. The other 
members of EFTA are Iceland and Norway. The EFTA Convention, as revised in 2002, provides for 
free trade within EFTA in industrial goods, trade i n services, investment, land and air transport, 
public procurement, protection of intellectual property rights, mutual recognition of conformity 
assessments, free movement of persons, social security, and mutual recognition of diplomas. The 
Convention is u pdated on a continuous basis to ensure, wherever possible, that contractual relations 
between the EFTA States develop in parallel with changes in agreements between EFTA States and 
the European  Union. Since 2017, amendments have entered into force reflecti ng developments in 
air transport, the free movement of goods, and rules of origin and administrative cooperation.27 
2.20.   As of 1  November  2021, EFTA members had 29 RTAs in force with 39 economies outside of 
the European  Union. Additionally, EFTA -EEA members sig ned an RTA with the United  Kingdom in 
July 2021, which entered into force on 1  December  2021 (Section  2.3.2.5).28 Most of these have 
been considered by the WTO CRTA. All of these RTAs provide for tariff liberalization, and 14 provide 
for services liberaliz ation (Table  A2.1). Preferential tariff rates for 2021 are contained in Table  3.9 
and Chart  3.2. 
2.21.   In 2021, Switzerland together with its EFTA partners developed new measures to increase 
the transparency in all phases of RTA processes (preparation, negotiati ons, and follow -up activities). 
Measures include the publication on the EFTA website of a description of the objectives of the 
negotiation and the initial proposals, followed by information documents after each round of 
negotiations. EFTA RTA joint committ ee (JC) work has become more transparent with the publication 
of JC agendas as well as reports on the corresponding discussions.  
2.22.   Since 2010, with the elaboration of a model chapter on trade and sustainable development 
by the EFTA States, sustainability pro visions have been integrated into all new Swiss RTAs. In 2019, 
the model chapter was revised to include new themes such as climate protection, the sustainable 
management of forest and maritime resources, the preservation of biological diversity, sustainabl e 
agriculture, sustainable supply chains, responsible business conduct, and gender equality and 
inclusive trade. The mechanism for dispute resolution in these areas was reinforced by introducing 
a panel of experts as a supplementary instrument for resolvin g differences.  
2.23.    Over the review period, new wide -ranging RTAs entered into force between EFTA and 
Georgia, the Philippines, Ecuador, and Indonesia. A revised agricultural agreement between EFTA 
and Israel entered into force on 1  August  2021, and a moderniz ed RTA between EFTA and Turkey 
entered into force on 1  October  2021.  
2.24.   The RTA between EFTA and Georgia entered into force on 1  May 2018. Under the agreement, 
Switzerland and Liechtenstein abolished customs duties on all imports of non -agricultural products 
and some agricultural products originating in Georgia upon entry into force of the agreement; 1,181 
eight-digit tariff lines at the HS eight-digit level remain dutiable on agricultural products. Switzerland 
and Liechtenstein also provide a duty -free in -quota tariff for 313 eight -digit tariff lines, within the 
limits of their WTO tariff rate quota (TRQ) concessions. Services commitments follow a positive list 
approach. Liechtenstein's services commitments contain GATS -plus commitments on certain 
business, communication, distribution, financial, and tourism and travel -related services. 
Switzerland made GATS -plus commitments in certain business, construction and related 
engineering, environmental services, tourism and travel -related, and transport s ervices. The 
agreement contains sector -specific provisions on financial services, telecommunication services, 
maritime transport and related service, and energy -related services. It also contains rules and 
commitments on government procurement as well as p rovisions on sustainable development 
 
26 These treaties were viewed (using the search term "Liechtenstein") at: 
https://www.fedlex.admin.ch/de/search?text=liechtenstein&collection=treaties&itemsPerPage=50&currentPage
=1. 
27 EFTA, The EFTA Convention . 
28 EFTA (2021), "EEA EFTA States Sign a Free Trade Agreement with the UK", 8  July.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 44 - 
 
 (including environment and labour). The agreement was considered by the CRTA in April  2019 and 
a full description of the agreement, and the concessions made by the respective parties, is contained 
in the factual present ation prepared by the WTO Secretariat.29 
2.25.   The RTA between EFTA and the Philippines entered into force on 1  June 2018, at which point 
Switzerland and Liechtenstein abolished customs duties on all imports of non -agricultural products 
and some imports of agric ultural products. There are 1,491 agricultural tariff lines (at the 8 -digit 
level) that remain dutiable. Switzerland and Liechtenstein also provide a duty -free in -quota tariff for 
33 eight -digit tariff lines, within the limits of its WTO TRQ concessions. S ervices commitments follow 
a positive list approach. Liechtenstein's services commitments contain GATS -plus commitments on 
certain business, communication, distribution, financial, and tourism and travel -related services. 
Switzerland made GATS -plus commitm ents in certain business, construction and related 
engineering, environmental services, tourism and travel -related, and transport services. The 
agreement contains sector -specific provisions on financial services, telecommunication services, 
maritime transp ort and related services, and energy -related services. It contains rules, but not 
commitments, on government procurement as well as provisions on environment and labour within 
the chapter on sustainable development. The agreement was considered by the CRTA  on 
18 November  2020 and a full description of the agreement, and the concessions made by the 
respective parties is contained in the factual presentation prepared by the WTO Secretariat.30 
2.26.   The RTA between EFTA and Ecuador entered into force on 1  November  2020. EFTA States 
abolished tariffs on all non -agricultural products upon entry into force of the agreement. Preferential 
market access concessions granted by Switzerland on agricultural products take the form of a 
reduction or elimination of customs duties  within the limits of WTO TRQs or seasonal limitations. 
Switzerland grants Ecuador preferential treatment for cut flowers and other plants, certain 
vegetables (especially broccoli) and fruits, as well as preparations based on these products, and for 
the An dean grains quinoa and amaranth. Services commitments follow a positive list approach, and 
the agreement contains sector -specific provisions on financial services, telecommunication services, 
movement of natural persons supplying services, and maritime tra nsport services. Switzerland 
committed to some improvements compared to the GATS in the areas of installers and maintainers, 
non-compulsory education, and contractual service suppliers. Liechtenstein's services commitments 
contain GATS -plus commitments on certain business, communication, distribution, financial, and 
tourism and travel -related services. The agreement contains rules and commitments on government 
procurement as well as provisions on environment and labour within the chapter on trade and 
sustai nable development. An early announcement of this agreement was made to the WTO, but it 
has not yet been formally notified. The authorities indicate that the notification of this RTA to the 
WTO is being prepared.  
2.27.   The RTA between EFTA and Indonesia entered i nto force on 1  November  2021. EFTA States 
abolished tariffs on all non -agricultural and several agricultural products (some 2,392 tariff lines at 
the HS 8 -digit level) upon entry into force of the agreement. Preferential market access concessions 
on agricu ltural products are made through the reduction or elimination of customs duties (including 
within WTO quotas), rebates on applied duties, and bilateral TRQs on a range of agricultural product 
categories. The agreement contains concessions in the form of bi lateral quotas on sustainably 
produced palm oil. Additionally, tariff -free market access is granted for palm oil when imported 
temporarily for processing and export, when destined for technical purposes, or for the production 
of soups and sauces. If Switze rland grants concessions to other major palm oil producers, these 
must be also extended to Indonesia at its request. Services commitments follow the positive list 
approach, and the agreement contains sector -specific provisions on financial services, 
teleco mmunications services, movement of natural persons supplying services, recognition of 
qualifications of service suppliers, recognition of certificates of competency and training of seafarers, 
and tourism and travel services. For Switzerland, improvements w ere undertaken in Mode  4 for 
Contractual Service Suppliers (CSS), installers and maintainers, professional services, special trade 
construction work, commission agents' services, education services in the fields of batik and cooking, 
and maritime transport . Liechtenstein's services commitments contain GATS -plus commitments on 
certain business, communication, distribution, financial, and tourism and travel -related services. The 
agreement covers environment and labour under its chapter on trade and sustainabl e 
 
29 WTO document WT/REG386/1, 15  January  2019.  
30 WTO document WT/REG394/1, 3  September  2020.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 45 - 
 
 development.31 An early announcement of this agreement was made to the WTO, but it has not yet 
been formally notified. According to the authorities, preparations for the notification are ongoing.  
2.28.   The revised agricultural agreement between EFTA and Israel  introduces amendments to 
Protocol A on Processed Agricultural Products and Annex 1 on product coverage.32 Products with new 
or improved market access granted by Switzerland include coffee, tea, degras, tapioca, jams, coffee 
extracts, and certain fruit pre parations. Additionally, a previous exchange of letters is replaced by a 
bilateral agricultural agreement through which improved concessions are granted by Switzerland for, 
inter alia, plants, cut flowers, a broad spectrum of fruits and vegetables, spices,  meat preserves and 
preparations, and preserves of fruits and vegetables.  
2.29.   The modernized RTA between EFTA and Turkey, inter alia, introduces commitments on trade 
in services (previously it was a goods -only agreement), as well as provisions on labour and th e 
environment in a chapter on trade and sustainable development. Additionally, the bilateral 
agricultural agreements have been updated to include concessions previously granted autonomously 
through an exchange of letters, as well as new concessions for, inter alia, cheeses, cucumbers and 
pickles, olive oil, nuts, preserved capers and artichokes, fruit juices, and sweet wines.33 Service 
commitments are scheduled using a positive list approach, and the modernized RTA contains specific 
provisions on recognitio n of qualifications of service suppliers, movement of natural persons, 
electronic commerce, telecommunications services, co -productions, health services, tourism and 
travel services, and international road transport and logistics services. GATS -plus commit ments were 
made for Mode  4 (for information and communication technology (ICT) and CSS professionals and 
installers and maintainers) and for freight transport (excluding cabotage).  
2.30.   The EFTA and MERCOSUR countries concluded the substance of their negotiatio ns for an FTA 
in August 2019; the legal review of the texts is under way.34 The adhesion of Guatemala to the FTA 
between EFTA and the Central American States is still pending, awaiting the ratification of the 
protocol of accession (and negotiations with Ho nduras are on hold).35 Negotiations are under way 
for new RTAs between EFTA and India, Malaysia, the Republic of Moldova, and Viet  Nam. 
Negotiations are also under way to modernize the RTAs with Chile, the South  African Customs Union 
(SACU), and Mexico. It is foreseen that nego tiations will start on RTAs between EFTA and Kosovo 
and Thailand.36 
2.3.2.3   European Economic Area (EEA)  
2.31.   Liechtenstein has been a member of the EEA since 1  May 1995 and an associated Schengen 
member since 2011.37 The EEA makes Liechtenstein, Iceland, and Norway fu ll participants in the 
European  Union's internal market based on the principles of non -discrimination and the free 
movement of goods, persons, services, and capital in all areas covered by the Agreement, which 
include competition policy and state aid. Unde r the EEA Agreement, EEA States are required to 
transpose internal market legislation into domestic law within agreed timeframes. From 
January  2017 to October  2021, 2,580 EU legal acts were incorporated into the EEA Agreement, 
bringing the total to 11,353.  As at the end of May  2021, Liechtenstein had fully transposed all EU 
 
31 Federal Department of Economic Affairs, Education and Research, Fact Sheet: Comprehensive 
Economic Partnership Agreement (CEPA) between the EFTA States and Indonesia .  
32 EFTA (2021), "Entry into Force of the EFTA -Israel Revised Bilateral Agricultural Agreements", 
2 August. Viewed at: 
https://www.efta.int/Free -Trade/news/Entry -force-EFTA-Israel -revised -bilateral -agricultural -agreements -5253
61; and Free Trade Agreements and Trade Relations by Partners – Israel . Viewed at: 
https://www.efta.int/free -trade/free -trade -agreements/israel . 
33 EFTA (2021), "Modernised EFTA -Turkey Free Trade Agreement Enters into Force", 1  October. 
Viewed  at: 
https://www.efta.int/Free -Trade/news/Modernised -EFTA-Turkey -free-trade-agreement -enters -force-525956  
and https://www.efta.int/free -trade/Free -Trade -Agreement/Turkey . 
34 SECO, MERCOSUR . MERCOSUR comprises Argentina, Brazil , Paraguay, and Uruguay.  
35 EFTA, Free Trade Agreement – Central American States (Costa  Rica, Guatemala and Panama) . 
Viewed  at: https://www.efta.int/free -trade/Free -Trade -Agreement/Central -American -States . 
36 References to Kosovo in this Report shall be understood in the context of UN Security Council 
Resolution 1244 (1999).  
37 The Schengen Agreements created an area without internal borders, enabling the free circulat ion of 
persons without border checks. For further information on the Schengen Agreements and the Schengen area, 
see https://ec.europa.eu/home -affairs/poli cies/schengen -borders -and-visa/schengen -area_en . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 46 - 
 
 directives and regulations, except for three directives relating to mutual recognition of professionals, 
the environment (both outstanding for more than two years), and intellectual prop erty.38 
2.32.   There have been no changes to the institutional and procedural arrangements for consensus 
decision -making by the EEA Joint Committee (EEAJC) (which represents EEA EFTA States) and the 
European External Action Service (EEAS) (which represents the Eu ropean  Union) on including new 
legal texts in the EEA Agreement. Because of this requirement for a consensus decision and because 
the EEAJC meets only periodically39, there is generally a time lag for entry into force of the EU acquis 
communautaire  in the EEA EFTA States. However, as before, simplified procedures apply to urgent 
measures, e.g. safeguards or SPS measures, ensuring simultaneous implementation in EFTA EEA 
States and EU member States. Implementation of the internal market structure is ensured b y 
monitoring by the EFTA Surveillance Authority and the judicial functions of the EFTA Court.40 
2.33.   The EEA Agreement does not cover the EU Common Agricultural and Fisheries Policy, the 
Common Trade Policy, the Common Foreign and Security Policy, Justice and H ome Affairs (although 
all EFTA States have joined the Schengen area), and the Economic and Monetary Union. However, 
Article  118 encourages cooperation beyond the four freedoms and in new areas. EEA  EFTA States 
have voluntarily joined various EU programmes and activities, e.g. in education and training, youth 
and sport (Erasmus+); in technology, research and innovation (Digital Europe); and in the internal 
market (Single Market Programme). Liechtenstein has observer status in several EU agencies (such 
as the  European Medicines Agency, European Banking Authority, European Insurance and 
Occupational Pensions Authority, and European Securities and Markets Authority) and participates 
in five programmes in the current EU programme cycle (2021 -27): Erasmus+, Digita l Europe, Single 
Market Programme, Creative Europe, and the European Solidarity Corps.  
2.34.   Liechtenstein continues to maintain a Market Control and Surveillance Mechanism (MCSM) to 
comply with Swiss import requirements in cases where customs tariffs or non -tariff requirements 
are different in Switzerland and the EEA for certain products. This system ensures the parallel 
marketability of goods in Liechtenstein under Swiss and EEA rules, as required by Liechtenstein's 
membership in both the Customs Union with Swi tzerland and the EEA (Box  2.1). The institutional 
responsibilities and fines for infringing MCSM provisions that are part of this system are set by the 
Act on the Marketability of Goods (LR 947.1).41 
Box 2.1 Liechtenstein's Market Control and Surveillance Mechanism  
As a consequence of Liechtenstein's EEA membership since 1 May 1995, and in order to maintain the Customs 
Union with Switzerland (Switzerland is not an EEA member), Liecht enstein must ensure the parallel 
marketability of goods under Swiss and EEA rules within its territory. Liechtenstein maintains a Market Control 
and Surveillance Mechanism (MCSM), applicable to imports subject to customs tariffs or non -tariff 
requirements that are different in the EEA and Switzerland, for this purpose. The MCSM aims at ensuring that 
goods that do not satisfy Swiss import requirements do not enter the Swiss market via the open border. The 
MCSM has been accepted by the other EEA members (EEA Council Decision No.  1/95).  
The MCSM applies to professional traders, i.e. distributors/dealers/importers, and to three categories of goods 
(LGBl. 2009/394, Annex 1): (i)  products on which Swiss and EEA import requirements remain different 
(e.g. pharmaceu ticals, chemicals/goods hazardous to the environment, genetically modified organisms, some 
telecom equipment); (ii)  goods subject to different tariffs under the 1972 FTA between Switzerland and the 
European  Union on the one hand, and the EEA Agreement on t he other (fish and fish products); and (iii)  salt, 
as Liechtenstein exempts salt of EEA origin from the otherwise applicable Swiss salt monopoly.  
Under the MCSM, the Swiss FOCBS clears all imports to Liechtenstein, collects duties, and informs the 
Liechte nstein Office of Economic Affairs (OEA) by sending an electronic copy of the customs documents for 
further processing. Where customs tariffs differ, the OEA reimburses importers the duties paid and informs 
them of their obligations, including the submissio n of proof of sale in Liechtenstein. When in doubt 
(e.g. wrongful reimbursement or non -payment of customs duties, re -export of goods to Switzerland that do 
 
38 EFTA Surveillance Authority, Internal Market Scoreboard, September 2021 . Viewed at: 
https://www .eftasurv.int/cms/sites/default/files/documents/gopro/Final%20Scoreboard_No_48.pdf . 
39 EFTA, EEA Joint Committee . Viewed at: 
https://www.efta.int/eea/eea -institutions/eea -joint-committee . 
40 EFTA Surveillance Authority. Viewed at: https://www.eftasurv.int/ ; and EFTA Court. Viewed at: 
https://eftacourt.int/ . 
41 WTO document WT/TPR/S/355/Rev.1, 22  September  2017, Box 2.1. As indicated by the authorities, 
where customs tariffs differ it is now the Office of Economic Affairs (not the Swiss Customs) that reimburses 
importers for the duties paid. Additionally, fines for infringements of MCSM provisions are now CHF  500,000 
(rather than up to 20 times the amount of the customs duties wrongfully reimbursed or unpaid).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 47 - 
 
 not satisfy their market requirements), the Liechtenstein administration may launch further investig ations. 
Businesses involved in the production and import of the relevant goods must appoint an official contact person 
for this purpose. Wholesalers and retailers must keep proof of sales and provide notices in their stores that 
product use is limited to t he Liechtenstein territory. Infringements of MCSM provisions are liable to fines of 
up to 20 times the amount of the customs duties wrongfully reimbursed or unpaid, or imprisonment for up to 
6 months. Circumvention is liable to fines up to CHF  500,000 or i mprisonment for up to six months. In case 
of an import ban, fines are up to 9 times the value or imprisonment for up to 12 months. Infringements 
identified so far have not entailed any criminal action; only written reprimands have been issued.  
Source:  WTO Secretariat.  
2.35.   Liechtenstein also continues to provide funding through the EEA Grants system to contribute 
to social and economic equality in Europe and strengthen relations between EEA members and the 
15 beneficiary states in Europe. Over the 20 14-21 funding period, EEA Grants amounted to 
EUR 1.5 billion, with Liechtenstein contributing around 1.2%.42 
2.3.2.4   Switzerland's bilateral agreements with the European  Union  
2.36.   Switzerland's relationship with the European  Union remains governed by over 100 bilatera l 
agreements.43 The main agreements are contained in Table  2.6. Many of these agreements require 
regular updates, especially those that are based on harmonization or equivalence of the relevant 
regulations of Switzerland and of the European  Union. Over the  review period, Switzerland and the 
European  Union undertook updates in several areas, normally within the Joint Committee of the 
respective agreement44, including updates to: (i)  the Agreement on Mutual Recognition in 
Conformity Assessment45; (ii)  the dir ect insurance agreement46; (iii)  customs facilitation and 
security47; (iv)  Annexes 11 and 12 to the Agreement on Agriculture48; (v) the Air Transport 
Agreement49; (vi) the Land Transport Agreement50; and (vii)  Protocols  2 and 3 of the Free Trade 
Agreement.51 
2.37.   In 2017, an agreement on the automatic exchange of information entered into force for 
Switzerland; this supersedes the 2005 agreement on the taxation of savings income.52 The 2017 
agreement is based on the global standard on automatic exchange of inform ation (AEOI) adopted 
by the Organisation for Economic Co -operation and Development (OECD) and involves the exchange 
of financial account information between Switzerland and the EU member States on an annual basis, 
with a view to tackling tax evasion. The a greement essentially contains three elements: AEOI 
according to the OECD's global standard; the exchange of information upon request according to 
Article  26 of the 2014 OECD Model Tax Convention; and the withholding tax exemption of 
cross-border payments o f dividends, interest, and royalties between associated companies (which 
was already part of the 2005 agreement). Additionally, a new agreement between Switzerland and 
the European  Union entered into force in January  2020 to couple the greenhouse gas emission 
 
42 EEA Grants, About Us . Viewed at: https://eeagrants.org/ about -us. 
43 Fedlex, EU Sectoral Agreements  (in German). Viewed at: 
https://www.fedlex.admin.ch/de/sector -specific -agreements/EU -acts-register . 
44 Fedlex, Online Regis ter of Joint Committee Decisions  (in French). Viewed at: 
https://www.fedlex.admin.ch/fr/sector -specific -agreements/joint -committees -decisions -register. 
45 SECO (2017), "Update of the Agreement on Technical Barriers to Swiss -EU Trade" (in French), 
28 July; and SECO (2017), "Update of the Agreement on the Mutual Recognition of Conformity Assessments" 
(in French), 22  December.  
46 SECO (2018), "Switzerlan d and EU Adapt Their Insurance Agreement", 5  July. 
47 A joint committee decision modifying Chapter III of and Annexes I and II to the agreement has been 
applied on a provisional basis since 15  March  2021 ( https://www.fedlex.admin.ch/eli/oc/2021/2 50/fr). From 
the Swiss side, this update is subject to approval by the Federal Assembly  
(https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-84828.html ). 
48 Joint Committee Decisions No.  1 of 2017; No.  1 of 2018; and No.  1 of 2020.  
49 Fedlex. Viewed at: 
https://www.fedlex.admin.ch/fr/sec tor-specific -agreements/joint -committees -decisions -register/5 . 
50 Fedlex. Viewed at: 
https://www.fedlex.admin.ch/fr/sector -specific -agreements/jo int-committees -decisions -register/6 . 
51 Fedlex. Viewed at: 
https://www.fedlex.admin.ch/fr/sector -specific -agreements/joint -committees -decisions -register/17 ; and 
https://www.fedlex.admin.ch/eli/cc/2021/727/de .  
52 Europa, Interinstitutional File 2015/0075 (NLE), 2015/0076 (NLE), 21  May 2015. Viewed at: 
https:// data.consilium.europa.eu/doc/document/ST -8297-2015-INIT/en/pdf . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 48 - 
 
 allowance trading schemes of the European  Union and Switzerland, and a new EU -Switzerland Joint 
Committee was established in this regard.53 
Table 2.6 Switzerland's ma in bilateral agreements with the European  Union, 2021  
Agreement (date of entry into 
force for Switzerland)  Coverage  
Free Trade Agreement (1973)  Establishes free trade area for industrial goods and covers trade in processed 
agricultural products. Abolishes customs duties and prohibits quantitative 
restrictions.  
Insurance Agreement (1993)  Freedom of establishment, on a reciprocal basis, for agencies and branches of 
agencies undertaking non -life insurance, or the option to acquire such undertakings.  
Bilateral Agreements I (2002)a  Agreements on: (i)  free movement of persons; (ii)  technical barriers to trade; 
(iii) public procurement; (iv)  agriculture ; (v) research; (vi)  air transport; and 
(vii) land transport. Guillotine clause applies.b 
Bilateral Agreements II (2005)  Agreements on: (i)  Switzerland's participation in the European  Union's Schengen 
and Dublin regimes; (ii)  automatic exchange of information; (iii)  the fight against 
fraudc; (iv) processed agricultural products ; (v) Creative Europe (the 
European  Union's MEDIA programme); (vi)  environment; (vii)  statistics; 
(viii) certain EU pensions; and (ix)  education, vocational education and training, 
and young people.  
Customs facilitation and security 
(2011)  Facilitates customs clearance for goods t raded between Switzerland and the 
European  Union and coordinates cooperation at border posts. Sets out terms of 
cooperation on customs security and exempts Switzerland from certain measures 
applying to third countries (i.e. prior declaration requirement).  
a With respect to the Agreement on Agriculture, the agreement was extended to include the veterinary 
sector in 2009 and to mutual recognition of protected designations of origin and protected 
geographical indications in 2011.  
b The guillotine clause stipulates that if one of the agreements was terminated, the others would also 
automatically cease to have effect. The EU Framework Programme for Research and Innovation has 
a limited lifetime, as such the agreement for Switzerland's association in the res earch area was by 
default limited in time, and its expiration did not trigger automatic termination of the entire 
Bilateral  I package.  
c The entry into force of the agreement on the fight against fraud is pending, as Ireland's ratification 
of the agreement is still outstanding.  
Source:  Federal Department of Foreign Affairs (2021), The Main Bilateral Agreements between Switzerland 
and the EU , February; and  Federal Council, Overview of the Bilateral Agreements .  
2.38.   In May  2021, the Federal Council decid ed not to sign an institutional framework agreement 
with the European  Union that would have established an institutional framework for five of the 
bilateral agreements in place. According to the authorities, the key areas of concern for Switzerland 
related  to the Citizens' Rights Directive (CRD), with provisions on wage protection and state aid not 
producing the outcomes needed by the Swiss. For Switzerland to have incorporated the CRD into 
the Agreement on the Free Movement of Persons, exemptions would hav e been needed to ensure 
rights enjoyed by persons accorded freedom of movement would not be extended, since this would 
result in higher social security costs.54 This impasse has had an immediate impact on the pending 
update of the Switzerland -EU/EEA mutual  recognition agreement with respect to medical devices 
(Section  3.3.2).55 Moreover, negotiations ongoing at the time of Switzerland's previous Review in 
areas of the electricity market, public health, and food security have been stalled since 2018. In 
2021 the European Commission decided to treat Switzerland as a non -associated third country in 
the EU 2021 -2027 Framework Programme for Research and Innovation, Horizon Europe, and its 
related programmes and initiatives (the Euratom programme, the Internationa l Thermonuclear 
Experimental Reactor programme, and the Digital Europe Programme). This means that Switzerland 
 
53 Federal Office for the Environment, Linking the Swiss and EU Emissions Trading Systems . Viewed at: 
https://www.bafu.admin.ch/bafu/en/home/topics/climate/info -specialists/reduction -measures/ets/linking -swiss
-eu.html ; and Fedlex. Viewed at: 
https://www.fedlex.admin.ch/fr/sector -specific -agreements/joint -committees -decisions -register/23 .  
54 Federal Department of Foreign Affairs (2021), "No Signing of Swiss -EU Institutional Agreement", 
26 May. 
55 This update  would have been needed by 26  May 2021, at which time the European  Union's Medical 
Device Regulation and the corresponding new Swiss law were to become applicable. Since the update could not 
be carried out, the Federal Council adopted measures on 19  May 2021 to ensure market surveillance for 
medical devices as well as their safe future supply.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 49 - 
 
 can participate in a limited way in around two thirds of calls for proposals, with Switzerland providing 
funding of the participation of its rese arch and innovation actors.56 
2.39.   On 30  September  2021, the Federal Assembly  decided to release Switzerland's second 
contribution to selected EU member States. As indicated by the authorities, this is part of a series 
of measures that have been adopted since M ay 2021 aimed at stabilizing and pursuing bilateral 
relations with the European  Union. Switzerland and the European  Union also aim to establish a 
structured high -level political dialogue, which could lead to a common agenda for future cooperation. 
In addit ion, an internal review of Swiss domestic law is ongoing to examine whether autonomous 
amendments to Swiss legislation might contribute to the stabilization of Swiss –EU relations.  
2.3.2.5   Switzerland's bilateral agreements with other trading partners  
2.40.   Switzerland h as concluded bilateral RTAs with the Faroe Islands (1995), Japan (2009), 
China  (2014), and the United  Kingdom (2021). Provisions related to trade in goods in Switzerland's 
RTAs apply to Liechtenstein by virtue of the 1923 Customs Union Treaty. Other elemen ts of the 
RTAs, such as trade in services, are not extended to Liechtenstein. Preferential tariff rates for 2021 
are contained in Table  3.9 and Chart  3.2. As indicated by the authorities, Switzerland is not currently 
negotiating any new bilateral agreements.  
2.41.   Following the United  Kingdom's departure from the European  Union, Switzerland's relations 
with the United  Kingdom have been governed by several new bilateral agreements (from 
January  2021). These are: (i)  the Agreement on Scheduled Air Services ; (ii) the Agreement on the 
International Carriage of Passengers and Goods by Road; (iii)  the Agreement on Direct Insurance 
other than Life Insurance; (iv)  the Agreement on Trade; (v)  the Citizens' Rights Agreement; (vi)  the 
Services Mobility Agreement; (v ii) the Agreement on mutual recognition of authorized economic 
operator (AEO) status; (viii)  the Social Security Agreement; and (ix)  the Police Cooperation 
Agreement.57 These agreements are based on the Mind the Gap strategy, which aims to preserve 
mutual rights and obligations and ensure legal continuity in these areas. The strategy also envisages 
future enhanced cooperation (Mind the Gap+). According to the authorities, potential areas for such 
enhanced cooperation are, for example, trade and financial se rvices. The Agreement on the Free 
Movement of Persons between Switzerland and the United Kingdom no longer applies from 
1 January  2021. British citizens' access to the Swiss job market is now governed by the Federal Act 
on Foreign Nationals and Integration . Additionally, the Federal Council opened a quota for 2021 
permitting 3,500 UK nationals to work in Switzerland. An additional agreement between Switzerland, 
the United  Kingdom, and Liechtenstein of 11  February  2019 extends the provisions on goods of the 
Switzerland -United Kingdom RTA to Liechtenstein.58 The following new bilateral agreements between 
Switzerland and the United  Kingdom also apply to Liechtenstein: the Agreement on the International 
Carriage of Passengers and Goods by Road;  the Agreement on Trade; and the Agreement on mutual 
recognition of AEO status.  
2.42.   Together with its EEA EFTA partners, Liechtenstein concluded a Separation Agreement with 
the United Kingdom, which has been provisionally applied since 1  January 2021. The Separation 
Agreement m irrors the relevant parts of the EU -UK Withdrawal Agreement and secures the rights of 
EEA EFTA and UK citizens that were already residing or working in the EEA EFTA States or the 
United  Kingdom, respectively, at the end of the transition period. Furthermor e, Liechtenstein, 
Iceland, and Norway concluded a comprehensive FTA with the United Kingdom. The agreement 
covers the full range of trade in goods, services and investment, digital trade, capital movements, 
government procurement, intellectual property, co mpetition, subsidies, small and medium -sized 
enterprises (SMEs), good regulatory practices and regulatory cooperation, recognition of 
professional qualifications, trade, and sustainable development. However, the provisions in this 
 
56 State Secretariat for Education, Research and Innovation, Horizon Europe and Euratom . Viewed at: 
https://www.sbfi.admin.ch/sbfi/en/home/research -and-innovation/international -cooperation -r-and-i/eu-frame
work-programmes -for-research/horizon -europe.htm l/. 
57 SECO (2020), "New Agreements between Switzerland and United Kingdom Take Effect", 
29 December.  
58 The text of this agreement was viewed at: 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/782493/C
S_Liechtenstein_1.2019_Trade.pdf . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 50 - 
 
 agreement on trade in goo ds do not apply to Liechtenstein. Trade in goods between Liechtenstein 
and the United Kingdom is exclusively governed by the UK -Swiss Trade Agreement.  
2.3.3   Other agreements and arrangements  
2.3.3.1   Non-reciprocal preferential arrangements  
2.43.   There were no changes to Switz erland's Generalized System of Preferences ( GSP) scheme 
over the review period. The scheme has also been applicable to Liechtenstein since 1972 by virtue 
of the Customs Union Treaty. Duty -free and quota -free access for all imports from LDCs is provided 
within the GSP scheme. As indicated in the previous Review, countries that have joined an 
international debt relief initiative supported by Switzerland and have not yet eliminated their debt 
may be deemed equivalent to LDCs by Switzerland; currently this prov ision applies to the 
Côte d'Ivoire. For the other developing countries, the GSP scheme provides tariff exemptions or 
reductions on around 7,000 tariff lines (at the 8 -digit level). Reportedly there is no explicit smooth 
transition provision in the Swiss GS P scheme, with former LDCs being accorded LDC treatment for 
some time after graduation from the LDC category.59 In June 2017, Switzerland notified to the WTO 
its preferential rules of origin for LDCs using the template mand ated by the 2015 Ministerial 
Decision.60 Preferential tariff rates for 2021 are contained in Table  3.9 and Chart  3.2. 
2.44.   Proof of origin must be su bmitted to claim GSP treatment. As indicated in Switzerland's 
previous Review, a new self -certification system (the Registered Exporter System (REX system)) 
was introduced in January  2017.61 It aims to reduce the administrative burden of documentary and 
procedural requirements for LDCs and GSP beneficiaries by not requiring exporters of originating 
products that fulfil the requirements of the REX system to obtain certificates of origin (Form A) from 
a competent authority. Instead, exporters must complete a Statement on Origin (SoO) on a 
commercial document themselves; this does not have to be validated by an authority in their 
country. Since the SoO is valid without an original signature, the document can be transmitted 
(e.g. via email to the declarant in Sw itzerland).  
2.4  Investment Regime and Business Environment  
2.4.1   Switzerland  
2.45.   Switzerland continues to provide a very stable and supportive environment for investors and 
businesses. This is reflected in Switzerland's top rankings in a variety of different indices. Fo r 
example, it was ranked in fifth place out of 141  economies in the World Economic Forum's 
(WEF)  2019 Global Competitiveness Index62; in fourth place out of 178  economies in the Heritage 
Foundation's 2021 Index of Economic Freedom63; in joint third place i n Transparency 
International's  2020 Corruption Perceptions Index64; in first place out of 152  economies in UNCTAD's 
Business -to-Consumer E -Commerce Index65; and in first place out of 64  economies in the 
International Institute for Management Development's (IMD) 2021 World Competitiveness 
Ranking.66 However, it was ranked below the OECD average in the OECD's 2018 product market 
regulation economy -wide indicator.67 Switzerland has, inter alia, received high scores for its 
macroeconomic stability, well -developed and stable financial market, skilled workforce and 
well-functioning labour market, capacity to adapt and innovate, strong enforcement of property 
rights, and fair and independent judicial system. On the other hand, its trade regime, with high tra de 
 
59 UN LDC Portal. Viewed at: https://www.un.org/ldcportal/preferential market access switzerland gsp/ . 
60 WTO documents WT/MIN(1 5)/47, WT/L/97/Add.1, 21 December 2015; and G/RO/LDC/N/CHE/1, 
27 June 2017.  
61 Switzerland applies the REX system together with the European  Union and Norway.  
62 World Economic Forum (2019), The Global Competitiveness Report 2019 . 
63 Heritage Foundation, 2021 Index of Economic Freedom .  
64 Transparency International, Corruption Perceptions Index 2020 . 
65 UNCTAD (2021), "Switzerland Climbs to Top of Global E -Commerce Index", 17  February. This index 
ranks countries on their readiness to engage in online commerce.  
66 IMD (2021), "Europe Dominates, China Rises, and the US Remains Stable in 2021 World 
Competitiveness Ranking", June.  
67 OECD, 2018 Product Market Regulation: Country Note . The product market regulation economy -wide 
indicator measures the distortions that can be induced through the involvement of the State in the economy, 
as well as the barriers to entry and expansion faced by domestic and foreign firms in different sectors of the 
economy.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 51 - 
 
 barriers (in agriculture) and tariff complexity, has been singled out by the WEF as a key area where 
there is room for improvement. The level of public ownership in the economy has been seen as a 
barrier to competition by the OECD.68 Liechtenstein is no t featured  in these indices.  
2.46.   Switzerland does not have a specific law governing investment and, so far, there is no 
investment screening mechanism in place. However, in spring 2020, the Government was tasked to 
draft possible legislation to implement the m otion "Protection of the Swiss economy through 
investment controls" (18.3021), which proposed to create the legal basis to control direct 
investments from abroad in Swiss companies, in particular by setting up an approval authority 
responsible for controll ing the transactions concerned.69 On 25  August  2021, the Federal Council 
defined the parameters for the control of foreign investments, which include that investment control 
is intended to avert possible threats or threats to public order or security due t o takeovers of 
domestic companies by foreign investors and, in addition, it should be possible to prevent significant 
distortions of competition in takeovers by foreign state or state -affiliated investors. It foresees a 
two-stage test procedure by SECO.70 The draft law is expected to be published for consultations at 
the end of March  2022, and following the consultation and redrafting processes, the revised draft 
law will be submitted to the Federal Assembly . The authorities indicate that the aim of the Fed eral 
Government is to remain open to foreign direct investment (FDI) and any investment controls should 
be compatible with Switzerland's obligations under international law.  
2.47.   To start and run a business in Switzerland, one representative, not necessarily th e owner of 
the company, must be domiciled in Switzerland. This requirement does not apply to sole 
proprietorships, general and limited partnerships, associations, and foundations. The duration and 
costs of registration vary depending on, inter alia, the co mplexity of the case and the legal form. 
The basic forms of business entity in Switzerland have not changed since its previous Review.71 As 
before, all commercial enterprises must be registered in the commercial register to receive their own 
legal personal ity and status. According to official sources, it generally takes between two and four 
weeks to legally establish a company in Switzerland, generally at a cost of between CHF  2,000 and 
CHF 8,000.72 With respect to work permit requirements for EU/EFTA citiz ens, the main change 
introduced over the review period was the abolition of quotas for the EU -2 (Bulgaria and Romania) 
on 1 June 2019 as provided for by the phased opening set out in the Free Movement of Persons 
Agreement. Croatians will benefit from full freedom of movement from 1  January  2022. Rules and 
procedures for non -EU/EFTA citizens to obtain work and residence permits remain unchanged and 
are described in Switzerland's previous Review73; however, there have been adjustments to quotas74 
(Table  A2.2) . 
2.48.   Switzerland is open to investment, although restrictions persist in a few activities where state 
monopolies operate (namely rail transport, postal, insurance, and commercial services). There are 
also domicile requirements in the areas of air transport, m aritime transport, hydroelectric and 
nuclear power, operation of oil and gas pipelines, and transportation of explosive materials. 
Additionally, certain professions, particularly in the healthcare, education, technical, and legal 
sectors, are regulated; fo reign qualifications must be recognized by the relevant Swiss authorities 
 
68 Federal Council (2021), "The Federal Council Defines the Basic Par ameters for Swiss Investment 
Control" (in German), 25 August.  
69 Federal Assembly. Viewed at: 
https://www.parlament.ch/fr/ratsbetrieb/suche -curia-vista/ge schaeft?AffairId=20183021 . 
70 Federal Council (2021), "The Federal Council Defines the Basic Parameters for Swiss Investment 
Control" (in German), 25  August.  
71 These are formation of a new, or acquisition of an existing incorporated (stock corporation (AG)  or 
limited liability company (GmbH)) or unincorporated company (sole proprietorship, limited partnership, or 
general partnership); establishment of a branch office; formation of a joint venture (unincorporated or 
incorporated company); or formation of a s trategic alliance with or without an equity interest. WTO document 
WT/TPR/S/355/Rev.1, 22  September  2017. See also information provided on the Federal Council's SME Portal. 
Viewed at: 
https://www.kmu.admin.ch/kmu/en/home/concrete -know -how/setting -up-sme/starting -business/commercial -r
egister%20/registering -company.html . 
72 Switzerland Global Enterprise  (S-GE) (2020), Handbook for Investors: Switzerland as a Business 
Location . 
73 WTO document WT/TPR/S/355/Rev.1, 22  September  2017.  
74 There is a new annual quota of 4,500 permits for "B" permits (compared to 3,500 permits 
previo usly). For the "L" permit, the annual quota is now 4,000 permits instead of 5,000 permits. A "C" permit 
may still be issued after five years of uninterrupted residence in Switzerland for US citizens, but there is no 
right to it.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 52 - 
 
 before these professions may be practiced. Switzerland imposes restrictions on the purchase of real 
estate for homes/residences, with authorization requirements depending on the purc haser's 
nationality and residence. All foreign nationals may acquire real estate for professional, commercial, 
or industrial purposes without needing an authorization (exceptions apply to real estate earmarked 
for construction, trade, or rental accommodati on). The authorities indicate that no new FDI 
restrictions have been introduced since January  2017. Incentives to support businesses are 
described in Section  3.3.1.  
2.49.   Mandated by the Confederation and the cantons, the non -profit organization Switzerland 
Global Enterprise (S -GE), inter alia, provides support to foreign companies investing and establishing 
in Switzerland (see also Section  3.2.4). This includes providing information on the Swiss general 
framework, what Switzerland has to offer as a business loca tion, and procedures for setting up a 
company.75 The cantons carry out their own investment promotion activities.  
2.50.   Switzerland has an extensive network of bilateral investment protection agreements covering 
115 economies.76 During the review period, a new a greement entered into force with Guyana. 
Switzerland has signed double taxation avoidance agreements with 120 economies (of which 6 were 
not yet in effect as of 31  January  2022).77 It also signed several tax information exchange 
agreements.78 
2.51.   On 28  April 2021, the Federal Council opened consultations on a Business Relief Act and the 
introduction of a regulatory brake. With the Relief Act, the Federal Council wants to consistently 
ensure that existing regulations and new bills are developed to be not more burdensome than 
necessary. According to the authorities, the results of the consultation are currently being evaluated 
and the Federal Council will adopt a dispatch to the Federal As sembly  in 2022.79 Furthermore, various 
strategies exist to digitally transform government services and render them more efficient and 
cost-effective. The latter include Digital Switzerland80, the eGovernment strategy for the period 
2020-2381, and the ICT S trategy 2020 -23.82 These measures have included:  
• The launch of the EasyGov.swiss online window in November  2017 
(https://www.easygov.swiss/easygov/ ) for interactions between companies and the 
authorities. The system, which has been subject to ongoing upgrades, now allows company 
founders to complete online all the administrative procedures needed to create their 
structure. The window enables access to over 30 administrative services, including 
registration in the commercial register and registration for value -added tax, social insurance, 
and accident insurance. As of end -2021, it had over 50,000 companies registered.83 
 
• Electronic VAT reporting (Section 3.3.1).  
 
• The simplification of customs pro cedures through the implementation of the DaziT platform 
(Section  3.1.1). This also applies to Liechtenstein.  
 
 
75 S-GE (2020), Handbook for Investors: Switzerland as a Business Location . 
76 SECO, Overview of BITS . 
77 State Secretariat for International Finance, Tax Agreements . 
78 Fedlex, International Law  (in German). Viewed at: 
https://www.fedlex.admin.ch/de/cc/international -law/0.65 . 
79 SECO (2021), "Allégement des coûts de la réglementation pour les entreprises et frein à la 
réglementation: ouverture des consultations", 28  April. Viewed at: 
https://www.seco.admin.ch/seco/fr/home/seco/nsb -news.msg -id-83285.html . 
80 Federal Council , Digital Switzerland Strategy . The strategy defines 41 goals in 9 fields of action: 
(i) education, research, and innovation; (ii)  infrastructure; (iii)  security; (iv)  environment protection, natural 
resources, and energy; (v)  political participation and e -government; (vi)  the economy; (vii)  data, digital 
content, and artificial intelligence; (viii)  social affairs, healthcare, and culture; and (ix)  international 
commitment.  
81 Federal Council , 2020-2023 eGovernment Strategy Switzerland . This replaces the four -year strategy 
from 2016 to 2019 and aims to steer the digital transformation of government services and public 
administrations at all government levels.  
82 Federal Council , Federal ICT Strategy 2020 -2023. This replaces strategies governing the periods 
2016-19 and 2012 -15. It sets out the Government's objectives to ensure that federal i nformation technology 
meets business needs.  
83 As indicated by the authorities, a study on the cost and time savings from EasyGov is undertaken 
every four years. The last report was in 2018, and the next report will be released in the spring of 2022.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 53 - 
 
 • A decision to eliminate tariffs on industrial goods, which will enter into force on 
1 January  2024 (Section  3.1.3). This also applies to Liechten stein.  
 
• The launch of a project in 2017 to digitalize the country's justice system from 2025; this will 
involve the replacement of all paper documents with electronic files as well as the 
implementation of an online entry portal for judicial proceedings.84 
2.4.2   Liechtenstein  
2.52.   Liechtenstein does not have a specific investment code. As at the time of its previous Review, 
most sectors are open to foreign investment, with the following restrictions: citizenship/residency 
requirements (see below); restrictions on the purchase of real estate85; restrictions on the 
production, trade, and transport of electricity and gas (subject to state monopoly); and restrictions 
applied to a number of financial services (asset management, investment consulting, and assuming 
trusteeshi ps) when these are provided on a professional basis by trustees or trust companies. 
Additionally, the right to water belongs to the Liechtenstein State, and a concession is required for 
its use.86 The authorities confirm that no new FDI restrictions have b een introduced since 
January  2017.  
2.53.   To be commercially active, domestic and foreign -owned businesses must obtain a commercial 
licence from the Office of Economic Affairs, unless specific licensing requirements exist. A 
prerequisite for obtaining this licenc e is that the investor him/herself is an EEA or Swiss citizen or 
meets the five years' prior -residence and professional -qualification requirements. If foreign 
businesses do not meet these criteria, they may appoint a managing director who fulfils them. All  
entities (of natural or legal persons) must have an office and/or business premises in Liechtenstein 
that is suitable to carry out the business.  
2.54.   On 1 January  2021, a new Business Act came into effect in Liechtenstein that changes the 
general licensing pro cedure for established trades to a registration and licensing procedure.  As 
indicated by the authorities, the total revision of the Business Act was a consequence of the ruling 
of the EFTA Court in Case E -19/15 ( EFTA Surveillance Authority v the Principali ty of Liechtenstein ). 
In this ruling, the EFTA Court ruled that Liechtenstein was in violation of Services Directive 
2006/123/EC, the freedom of establishment, and the freedom to provide services under Articles  31 
and 36 of the Agreement on the European Ec onomic Area. The revision also served to implement 
the obligations arising from the 4th Money Laundering Directive (EU) 2015/849, as well as the 
recommendations of the Financial Action Task Force from 2012 regarding background checks of 
beneficial owners f or individual businesses.  It introduces simplified registration procedures for simple 
trades, such that the trade can be exercised upon fulfilling the requirements, registering the trade, 
and submitting the relevant evidence. The Office of Economic Affairs  checks the documents 
afterwards and, if conditions are met, registers the person/entity into the trade register (previously, 
each trade had to be licensed by the Office of Economic Affairs prior to starting the activity). For 
qualified trades87 and for three trades for reasons of reliability examination88, a licence must be 
applied for before starting the activity, and the requirements are checked by the Office of Economics, 
which thereafter issues the business licence. The procedure for cross -border service providers has 
not changed; as before, the authorization for the temporary and occasional provision of services in 
Liechtenstein requires in all cases a business establishment and a lawful exercise of commercial 
activity in the country of esta blishment. Cross -border providers wanting to pursue a simple trade in 
 
84 Harm onization of Information in the Justice System (in German). Viewed at: 
https://www.his -programm.ch/de/Projekte/Justitia -40. 
85 All acquisitions of real estate are subject to a prior authori zation, which is granted only if the 
legitimate interest of the acquirer is fulfilled. The legitimate interest is given if an actual and proven 
requirement for living or business purposes is given and a prior residence of 12 years has been completed. 
Non-residents are excluded from the acquisition of real estate. An actual and proven requirement is given if: 
(i) the acquisition of real estate is to serve additional private housing needs of residents already domiciled in 
Liechtenstein; (ii)  the acquisition o f real estate is to serve future private housing needs of Liechtenstein 
citizens; (iii)  the acquisition of real estate is needed to establish or expand domestic commercial or industrial 
premises; or (iv)  the particular property is reserved for agricultural  use and if it serves the buyer to produce 
agricultural products. An actual and proven requirement is not given on the grounds of the seller's interests 
alone.  
86 Law on the Right to Water, LR 721.10.  
87 Qualified trades are set out in the Business Act and the corresponding ordinances.  
88 These three trades concern electrical engineering, as set out in the Business Act and the 
corresponding ordinances . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 54 - 
 
 Liechtenstein can operate without additional notification to the Office of Economics. Providers who 
want to pursue a qualified trade must register in advance with the Office of Economics  and enclose 
the required documents. Additionally low -threshold activities such as domestic secondary 
employment are excluded from the Trade Act.89 
2.55.   Liechtenstein has not concluded any bilateral investment protection treaties and is not party 
to any multila teral conventions on investment protection. Liechtenstein has ratified the Multilateral 
Convention on Administrative Assistance in Tax Matters and signed the Multilateral Competent 
Authority Agreement on the Exchange of Country -by-Country Reports. It is pa rty to the Multilateral 
Convention to Implement Tax Treaty -Related Measures to Prevent Base Erosion and Profit Shifting. 
Furthermore, Liechtenstein and the European  Union have concluded an agreement on the automatic 
exchange of financial account informatio n to improve international tax compliance. As of 
1 November  2021, Liechtenstein had concluded 21  double taxation agreements and 27  tax 
information exchange agreements . 
2.56.   Investment promotion in Liechtenstein is undertaken by Liechtenstein Marketing and the 
Office of Economic Affairs. Liechtenstein Marketing, inter alia, provides publicly available online 
information in English and in German on the Liechtenstein business location, the services available 
to entrepreneurs, and the possibilities to live and work in Liechtenstein.90 The Office of Economic 
Affairs has implemented a Single Point of Contact for companies, which is directed at all interested 
persons and companies in Liechtenstein, Switzerland, and the EEA  EFTA States91; this provides a 
range of se rvices, at no cost, to assist investors. With respect to Liechtenstein's efforts to develop 
the country into a leading digital business location, the Government and the Princely House 
developed a Digital Liechtenstein initiative in 2017. This brings togeth er stakeholders in business, 
politics, and science and has five fields of action: (i)  network and politics; (ii)  communication; 
(iii) talent; (iv)  events; and (v)  innovations and start -ups.92 Other initiatives are the publication of 
the Digital Roadmap str ategy paper and the Cyber Security campaign. According to the authorities, 
the focus has been on improving e -government procedures, particularly on reducing the regulatory 
burden on SMEs. Additionally, a project to create a service portal for companies, di gitizing the 
processes of company formation, administration, and liquidation, was launched in December  2021 
and will go live in December  2022.  
2.57.   Other steps to improve the business environment included the creation of an Innovation Lab 
as a working group for  business cases and new business ideas. This is part of a broader Innovation 
Framework in Liechtenstein, with a specific but not exclusive focus on the financial sector.  
  
 
89 Office of Economics Liechtenstein. Viewed at: 
https://www.llv.li/inhalt/11393/amtsstellen/marktuberwachung . 
90 Liechtenstein Marketing. Viewed at: https://www.liechtenstein -business.li/ . 
91 Office of Economics Liechtenstein. Viewed at: 
https://www.llv.li/inhalt/118972/amtsstellen/unternehmensgrundung -in-liechtenstein -eap. 
92 Digital Liechtenstein. Viewed at: https://www.digital -liechtenstein.li/initiative . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 55 - 
 
 3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  Since 1 January  2022, the Federal Office for Customs and Border Security (FOCBS) has been 
implementing customs procedures in Switzerland; it replaced the Federal Customs Administration 
(FCA). Customs is undergoing a digital and organizational transformation from  2018 to 2026 under 
the DaziT framework, the objective of which is to meet future challenges of increased traffic and 
trade as well as to take advantage of digitalization opportunities. Benefits are expected to include 
reduced regulatory costs, more effici ent collection of receipts, and increased security through 
effective controls. Certain concrete trade facilitation initiatives have already been undertaken (see 
below). Additionally, several future measures are foreseen, including the introduction of the I mport 
Control System  2 (ICS2), Phases  2 and 3, in 2023 and 2024, respectively1, and a new goods traffic 
system (Passar) as from 2023 (see below).2 The customs clearance of imports, exports, and goods 
in transit in Liechtenstein is carried out by the FOCB S on its behalf as set out in the 1923 Customs 
Treaty between the two countries. The Office of Economic Affairs in Liechtenstein is responsible for 
other customs procedures in the country, in particular with respect to trade in goods with European 
Economic  Area (EEA) countries, such as post -clearance verification.  
3.2.  The Customs Law and its related regulations (ordinances) govern customs procedures in both 
Switzerland and Liechtenstein (Table  3.1). The Customs Law was amended in 2018 to, inter alia, 
incorporate developments to the Schengen acquis3, and in 2020 to reflect the FCA's change of name 
to the FOCBS from 2022.4 There have been various changes to customs regulations over the review 
period; no change had a direct impact on customs procedures.  Customs laws and procedures in 
Switzerland are similar to the Customs Code of the European  Union with the same procedures 
(exceptions include end -use and free zone procedures), and similar terminology and definitions.  
Table 3.1 Main customs -related laws and regulations, January 2022  
Legislation  Entry into force 
(reference)  Latest amendments / 
(reference)  
Customs Law  18/03/2007  
(RS 631.0)   2018 (RO 2018 3161)  
2020 (RO 2020 2743)  
Customs Ordinance  01/11/2006  
(RS 631.01)  2018 (RO 2018 3929)  
2018 (RO 2018 4671)  
2020 (RO 2020 2741)  
Ordinance of the Federal Department of Finance (DFF) on 
Customs  04/04/2007  
(RS 631.011)  2018 (RO 2018 4329)  
2020 (RO 2020 2135)  
2021 (RO 2021 589)  
2021 (RO 2021 858)  
Ordinance of the Federal Customs Administration (FOCBS) 
on Customs  04/04/2007  
(RS 631.013)  2018 (RO 2018 4045)  
2021 (RO 2021 589)  
Ordinance of the DFF on Processing  04/04/2007  
(RS 631.016)  2021 (RO 2021 589)  
Source:  Fedlex, Customs .  
 
1 ICS2 is a large -scale EU information system (with the participation of Switzerland) supporting the 
processes of: (i)  lodging the Entry Summary Declaration (advance cargo information) to customs; (ii)  security 
and safety analysis by customs; (iii)  the arrival of means of transport and presentation of goods to customs 
authorities; and (iv)  control by the customs authorities of goods where necessary. This syste m has three 
operational release phases. Under Phase 2, operators will have to complete the entry summary declaration 
(ENS) dataset for all goods arriving by air transport. Under Phase 3, the ENS dataset will have to be lodged for 
all goods carried on marit ime and inland waterways, or by road and rail.  
2 FOCBS, DaziT Transformation Programme . Viewed at: 
https://www.bazg.admin.ch/bazg/en/home/topics/dazit.html ; and FOCBS, Schedule . Viewe d at: 
https://www.bazg.admin.ch/bazg/en/home/themen/dazit/zeitplan.html . 
3 RO 2018 3161. The Schengen acquis refers the laws and regulations, including, inter alia, the 
Schen gen Agreement, that enable the implementation and functioning of the Schengen Area. Further 
information on the Schengen Area may be viewed at: 
https://ec. europa.eu/home -affairs/policies/schengen -borders -and-visa/schengen -area_fr . 
4 RO 2020 2743.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 56 - 
 
 3.3.  The Ordinance of the FOCBS on Customs governs, inter alia, the customs declaration 
requirements and customs clearance processes in Switzerland and Lichtenstein. Since 2013, it has 
been mandatory for companies to submit their customs declarations (Form 11.0 10) electronically 
(unless imported goods are not intended to be sold or traded (see below)). Switzerland currently 
does not have a fully -fledged single window system, as customs declarations may currently be made 
through a variety of different portals, na mely: (i)  the e -dec import customs clearance system for 
users registered with and authorized by the Directorate General of Customs5; (ii) the e -dec web 
Internet application (which works without prior registration); (iii)  the NCTS system (for goods in 
transit in road traffic); or (iv)  the RailControl system (for rail freight transport).6 Customs duties 
may be paid through e -dec. To apply for import permits, importers must go to the responsible federal 
office. As part of the DaziT customs reform process, e -dec and the NCTS will be replaced by a single 
window system (Passar), which will be introduced progressively between 2023 and 2025; this will, 
inter alia, enable importers and exporters to apply for permits through the platform.  
3.4.  Persons importing goods no t intended to be sold or traded may still make self -declarations to 
customs in paper form and submit them in declaration boxes at selected border crossings, or they 
can use the recently launched QuickZoll application (see below).7  
3.5.  Documents required to s upport the customs declaration include authorizations, transport 
documents, commercial invoices, delivery notes, loading lists, weight certificates, proofs of origin, 
taxation instructions, certificates of analysis, and official attestations.8  
3.6.  Since 1  January  2011, with the entry into force of the Agreement between Switzerland and the 
European  Union on the Simplification of Customs Formalities and Customs Security Measures 
(Table  2.6), prior notification for imports and exports between Switzerland, Liecht enstein, the 
EU member States, and Norway has not been required. Advance cargo information must be 
submitted for imports from other economies; required timelines vary depending on the transport 
mode.9 
3.7.  Prior import declarations may be submitted, but they a re not mandatory. Goods subject to 
tariff rate quotas may be declared at the earliest on the day on which they are presented to customs. 
Other goods may be declared at the customs office at the earliest on the working day before the 
goods enter the customs  territory. In both of these cases, the prior declaration corresponds to a 
final customs declaration and the data transmitted is binding.  
3.8.  Commercial merchandise may only be cleared through specific customs offices during office 
hours; at the largest borde r crossings, customs offices are open 24 hours per day. Border measures 
taken by the FCA (now the FOCBS) in response to the COVID -19 pandemic included the temporary 
closure of 130 smaller border crossings around Switzerland and Liechtenstein and simplified  
importation procedures for certain goods constituting vital supplies, such as foodstuffs and medical 
supplies.   
3.9.  Goods are selected for physical or documentary inspection mainly based on risk criteria 
recorded in the customs clearance and pre -clearance sys tems. These include: (i)  certain categories 
of goods (e.g. where the tariff number is known to be mis -declared in order to evade import 
duties,  products subject to the Convention on International Trade in Endangered Species of Wild 
Fauna and Flores (CITES ), cultural goods, products and equipment containing fluorinated 
greenhouse gases, dual -use goods, and goods where there are veterinary or phytosanitary controls 
on animals and food); (ii)  a specific combination of goods and countries (e.g. prohibitions and  
restrictions to import and export certain goods originating in or exported to some 
 
5 FOCBS, Declaring Goods . The e -dec import system also incorporates an "e -dec easy" facility for small 
consignments that benefit from a simplified declaration proc ess. Detailed information on the eligibility criteria 
for the use of e -dec easy was viewed at: 
https://www.ezv.admin.ch/ezv/fr/home/declaration -en-douane/declaration -pour-entreprises/e -dec-importation
/declaration -en-douane -simplifiee -pour-les-petits -envois -dans-la-.html. To become authorized by the FOCBS to 
use the e -dec system, customers need the right software (developed by themselves or by an IT service 
provider). They must also register with the FOCBS and request a certificate or the secure sending of data.  
6 FOCBS , Declaration for Companies .  
7 FOCBS, Declaration B ox.  
8 These requirements are set out in Article  80 of the Customs Ordinance (RS  631.01).  
9 Submission of advance cargo information is being progressively integrated into the Import Control 
System (for imports) and Passar (for exports).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 57 - 
 
 countries/territories including the Democratic People's Republic of Korea); and (iii)  an aversely 
known consignee/consignor. Some controls are also decided based on risk in dicators that can only 
be observed visually. Examples of selection criteria for a physical check that are not recorded in 
customs clearance systems include invoices with incomplete information or erased items or imports 
with unusual packaging or broken sea ls. Over the review period, physical inspections were 
undertaken for around 0.2% to 0.3% of customs clearances on an annual basis (Table  3.2).  
Table 3.2 Physical inspections on imports by customs, 2017 -21 
 Value (CHF)  Number of customs 
clearances  Number of physical 
checks (%)  
2017 271,513,588,091  21,056,688  64,648 (0.3)  
2018 280,944,033,101  22,037,607  57,361 (0.3)  
2019 283,977,487,729  22,914,490  50,484 (0.2)  
2020 278,095,692,614  26,734,907  45,657 (0.2) 
2021 287,326,578,675  32,489,720  52,151 (0.2)  
Source:  Information provided by the authorities.  
3.10.   All tariffs in Switzerland and Liechtenstein are specific duties (Section  3.1.3) and do not need 
a customs valuation, as the gross weight (weight of goods plus packaging) is used to calculate the 
duty. For value added tax (VAT) and some other taxes, such a s the automobile duty, which are 
collected at the border and are based on value, the invoice value is used (Section  3.3.1).  
3.11.   Switzerland and Liechtenstein accepted the Agreement on Trade Facilitation (TFA) in 
September  2015. They have implemented all of th eir commitments under the TFA10, and submitted 
various TFA -related notifications over the review period (Tables  2.4 and 2.5).  
3.12.   Over the review period, Switzerland took some concrete trade -facilitating steps under the 
DaziT transformation programme. Initiat ives affecting merchandise trade that have been launched 
so far are:  
• The QuickZoll app, which allows individuals to register goods for import and pay taxes 
directly. These goods must be for private use or for giving away (i.e. not for sale). These 
goods ca n be imported into Switzerland and cleared via all border crossings and no 
registration is required. However, the QuickZoll app cannot be used for imports subject 
to restrictions, permits, or bans .11 
 
• The Activ app, which enables the faster border crossing  of drivers of haulage and 
transport companies with regular transit trips to and from, or through, Switzerland. 
When drivers approach the border crossing, the customs declaration recorded in the 
Activ app is transmitted. Now in its initial phase, the app h as been rolled out at selected 
customs offices.12 
3.13.   Switzerland and Liechtenstein have operated an Authorized Economic Operator (AEO) 
programme since 2011 for resident companies registered in the commercial register in either 
country; these are based on the World Customs Organization's (WCO) SAFE Framework of Standards 
to Secure and Facilitate Global Trade.13 The legal and regulatory bases for this programme are the 
Customs Act (Article  42a), the Customs Ordinance (Article  112a-s), and AEO Guidelines. General  
requirements to benefit from AEO status are an appropriate record of compliance, a satisfactory 
system of managing records, proven financial solvency, and appropriate security and safety 
standards. Accreditation by the FOCBS is based on risk analysis and inspection; the special 
characteristics of small and medium -sized enterprises (SMEs) are considered. Benefits granted to 
AEOs are reduced security checks at customs and priority treatment of consignments for 
 
10 WTO TFA database . Viewed at: https://tfadatabase.org/members/switzerland  and 
https://tfadatabase.org/members/liechtenstein . 
11 FCA, Customs Clearance via App (QuickZoll)  (in German). Viewed at: 
https://www.ezv.admin.ch/ezv/de/home/information -private/waren -anmelden/einfuhr -in-die-schweiz/anmelde
n-per-app.html . 
12 FOCBS , Activ. 
13 WCO (2021), WCO SAFE Framework of Standards . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 58 - 
 
 inspection.14 No fees are charged for the granting of AEO status and as at end -January  2022 there 
were 144 certified AEOs. In 2016, amendments to the Customs Act enabled Switzerland to conclude 
on its own international treaties relating to the mutual recognition of AEO s. So far, Switzerland has 
concluded AEO mutual recognition agreements (MRAs) with the European  Union (01/01/2011), 
Norway (01/07/2017), China (01/09/2017), and the United  Kingdom and Northern Ireland 
(01/09/2021). These agreements also apply to Liechtenst ein. Similar agreements are planned with 
Japan and under consideration with the United  States. The agreements allow certified AEOs to 
benefit from the common advantages set out in the MRA with the respective partner State.  
3.14.   Appeals against decisions by the  FOCBS may be made in the first instance by writing to the 
customs office (by post or an electronic form) where the customs declaration was made, within 
60 days of the decision. Appeals are free if they are successful. However, if they are not successful, 
the complainant must bear administrative costs of the appeal. The FOCBS undertakes an initial 
review of the appeal to indicate to the complainant whether there is a chance of success. In instances 
where there is no response from the complainant to this ini tial review, a fee of CHF  100 is charged 
for the decision not to initiate proceedings. Rulings by the FOCBS may be appealed to the courts. In 
2021, there were 110 appeals to the FCA (now the FOCBS) and 36 cases before the Federal 
Administrative Tribunal.15 
3.15.   From 2017 to 2020, the FCA (now the FOCBS) seized 66,186 branded counterfeit items at 
the border. Of these 49,767 items were commercial merchandise imports and 16,419 were 
counterfeits in tourist traffic. Most of the imported merchandise seized was in the  bags and wallets, 
watches and jewellery, and glasses subcategories. Most of the counterfeit items entering the country 
through tourism were in the bags and wallets, and clothes, scarves, hats, and belts subcategories.   
3.1.2   Rules of origin  
3.16.   Switzerland and Liec htenstein do not maintain non -preferential rules of origin for imports. 
Preferential rules of origin are set out in the Ordinance of 23 May 2012 on the Delivery of Proofs of 
Origin (RS  946.32) and the Ordinance of 30  March  2011 on Rules of Origin for Preferential Tariffs 
for Developing Countries (RS  946.39). On 1  January  2022, a few modifications were made to 
RS 946.39 reflecting the change from HS  2017 to HS  2022.16  
3.17.   The various regional trade agreements in force between Switzerland and Liechtenstein and 
third countries include the rules of origin applicable to those agreements (Section  2.3). The general 
rule applied is that sufficiently worked or processed means non -originating material should not 
represent more than a specific percentage with respect  to the ex -works price or that a change in HS 
heading at the 2 -, 4-, or 6 -digit level (with some additional limits to the value of non -originating 
material) applies. Specific rules may apply to some products and the wholly obtained criteria may 
be used for  some agricultural products.  
3.1.3   Tariffs  
3.1.3.1   Applied MFN tariff  
3.18.   Switzerland and Liechtenstein form a customs union (Section  2.3.2.1). The FOCBS collects all 
taxes and duties at the border (including customs duties and VAT); as set out in the Customs Treaty, 
Liechtenstein receives a transfer using a population -based formula. In 2020, the customs duties 
collected by the FCA (now the FOCBS) constituted 1.7% of federal receipts, compared with 1.5% in 
2015 (Section  1). Liechtenstein's share amounted to CHF  4,415,533.   
 
14 FOCBS. Viewed at: 
https://www.ezv.admin.ch/ezv/fr/home/inf os-pour-entreprises/declarer -des-marchandises/operateur -economi
que-agree --aeo-.html. 
15 Of the appeals to the customs office in 2021, 37 were under examination, 36 were refused, 5 were 
accepted, 15 were not achieved, 14 were withdrawals, and 3 were re -exami nations. With respect to the cases 
before the Federal Administrative Court, 26 were opened, 3 were confirmed, and in 7 cases there was a 
decision of non -entry into the matter.  
16 Modifications were also made to RS  948.31, RS  946.311, and RS  946.32 in 2021 t hrough 
RO 2021 589, which reflect changes brought about by the package of ordinances on the reorganization of the 
FDA (Section  3.1.1).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 59 - 
 
 3.19.   Under the Federal Law on Customs Tariffs, the Federal Council may modify tariffs through an 
ordinance, when deemed necessary.17 The modifications are temporary until their approval by the 
Federal Assembly. Liechtenstein does not participate in decision -making regarding routine changes 
under the Customs Tariff Act (RS  632.10). However, it does have a political say, for instance, when 
it comes to multilateral tariff negotiations.  
3.20.   The 2021 common customs tariff schedule of Switzerland and Liechtenstein is bas ed on HS17 
and comprises 8,845 tariff lines (including in -quota tariff lines) at the 8 -digit level (some 230 more 
tariff lines than at the time of the previous Review).18 The Swiss FOCBS continues to maintain a 
public online database, Tares, containing inf ormation on applied MFN and preferential duties and 
other measures including tariff rate quotas, additional charges (i.e. other duties and charges 
(ODCs)), and authorization requirements (i.e. import permits).19 In October 2021, the Federal 
Assembly approv ed the abolition of industrial tariffs (all duties in Chapters  25-97 with a few 
exceptions for certain tariff lines within Chapters 35  and 38, which are considered to be agricultural 
goods) and the simplification of the tariff structure. This will enter in to force on 1  January  2024.20 
3.21.   The Switzerland -Liechtenstein tariff schedule exclusively consists of specific duties that are 
generally based on gross weight (i.e. CHF  5 per 100  kg gross).21 As indicated in previous Reviews, 
the authorities consider this to  be efficient in terms of processing times and the number of staff 
involved, allowing for swift and accurate assessment of individual consignments.22 They also consider 
specific duties as transparent and offering the necessary predictability to ensure the smooth 
functioning of the import regime. They indicate that Switzerland does not plan to move to an 
ad valorem  regime. However, during previous Reviews, various WTO Members expressed concerns 
about the transparency of specific duties and recommended that a dopting an ad valorem  regime 
should be considered.23 
3.22.   As in previous years, given that the level of protection by means of specific duties is not 
evident for the purposes of the Secretariat's analysis, ad valorem  equivalents (AVEs) have been 
estimated to ma ke this assessment. As before, AVEs used in this report were calculated by the 
Secretariat as the ratio of specific duties to import unit values24, estimated using the ratio of import 
values to import quantities in 2020 (at the HS 8 -digit level). If there were no imports in 2020, 2019 
import data were used.  
3.23.   As in previous years, the limitations  of estimated AVEs should be kept in mind:  
• First, if there are no imports, the estimates of AVEs are not calculated. A lack of imports 
does not necessarily imply tha t the tariff is high; it may be that there is no domestic demand 
for a particular product. For the purpose of the 2021 tariff analysis, it was not possible to 
estimate AVEs for approximately 4% of all tariff lines.  
 
• Second, the estimates of AVEs are affected by variations in import prices through 
fluctuations in world market prices and/or exchange rates even though the tariff rates remain 
the same. As indicated by the authorities, the appreciation of the Swiss franc has also 
affected AVEs.  
 
 
17 Federal Law on Customs Tariffs (RS  632.10).  
18 8,525 tariff lines (excluding in -quota lines) were taken into account i n all tariff calculations. At the 
time of the previous Review, the 2016 tariff structure was based on the HS 2012 system and comprised 
8,299  tariff lines at the 8 -digit level.  
19 FOCBS, Tares . Viewed at: 
https://xtares.admin.ch/tares/login/loginFormFiller.do;jsessionid=6SYXOPHrPODHAFkOd4yE7PIqnv3zXxIIQh04
_hIKh9yyWbk6v69F! -380934499?l=en . The authorities confir m that no new functions have been added to the 
database over the review period.  
20 FOCBS. Viewed at: 
https://www.bazg.admin.ch/bazg/de/ho me/aktuell/medieninformationen/medienmitteilungen.msg -id-
87027.html . 
21 In rare cases, duties are based on, for example, pieces or litres.  
22 WTO document WT/TPR/S/13, 26  April 1996.  
23 WTO document WT/TPR/M/355, 11  July 2017.  
24 AVEs can be estimated using tw o main methods: the duty -collection ratio (the ratio of tariff revenue 
to the import value) and the unit value method (the ratio of specific duties to import prices). For details on 
AVEs, see WTO documents WT/TPR/S/77, 6  November  2000, Box III.1; and TN/MA /S/10, 20  May 2003.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 60 - 
 
 • Third, the  unit values used may vary depending on the source of imports and whether they 
qualify for a tariff concession or exemption, resulting in a wide variation in AVEs without any 
change in customs duties.  
3.24.   One feature of a specific duty is that it provides a re lative level of protection that is inversely 
related to the price of the imported good. Therefore, a specific duty places a relatively heavier burden 
on lower priced goods compared to higher priced goods in the same tariff line (although in this 
regard, th e Swiss authorities note that it also offers an incentive for higher quality of imports ). In 
isolated cases, a lower specific duty under a preferential tariff arrangement (e.g. the Generalized 
System of Preferences (GSP)) may have an AVE that is higher tha n the AVE of the MFN specific duty 
because imports from the GSP recipients have lower unit prices than the MFN imports.25 In order to 
take this into consideration in this section, the calculated import values were based on total Swiss 
imports (i.e. all tra ding partners) for each tariff line concerned. Nevertheless, it must be noted that 
about 80% of tariff lines (i.e. including applied MFN duty -free) are duty -free (zero) under preferential 
agreements and, therefore, are always lower than the MFN duty regard less of unit prices.  
3.25.   In the context of this Review, the Swiss authorities reiterate their reservations about the 
methodology given the above -mentioned limitations on estimating AVEs.  
3.26.   Overall, the simple average applied tariff for 2021 was 7.2% (down from 9.0% in 2016) 
(Table  3.3). The overall standard deviation has been reduced significantly from 42.4 to 28.0, 
indicating a reduction in tariff dispersion. This was due to changes in tariff peaks when comparing 
2016 (when the maximum tariff was estimated at 1 ,850.6%) and 2021 (when the maximum tariff 
was estimated at 671.3%). Agricultural products (WTO definition) remain highly protected with a 
simple average applied rate of 25.4% in 2021 (30.8% in 2016); tariffs range from zero to 671.3% 
(on an AVE basis). Th e simple average tariff for non -agricultural products (WTO definition) is 1.7% 
(2.3% in 2016); tariffs range from zero to 59.9% (Table  3.3 and Table  A3.1).  
Table  3.3 Structure of MFN tariffs, 2021  
(%)   
Applied MFN tariff  Final  
 boundb   
2016a 2021b 
1. Bound tariff lines (% of all tariff lines)  n.a. n.a. 99.0 
2. Simple average tariff rate  9.0 7.2 11.7  
Agricultural products (WTO definition)  30.8 25.4 43.0  
Non-agricultural products (WTO definition)  2.3 1.7 2.3  
Agriculture, hunting, forestry and fishing (ISIC 1)  22.3 21.9 36.2  
Mining and quarrying (ISIC 2)  0.6 0.7 0.7  
Manufacturing (ISIC 3)  7.8 5.8 9.3 
3.  Specific tariffs (% of all tariff lines)  100.0  100.0  100.0   
of which: duty -free tariff lines (% of all tariff lines)  19.7 26.9 17.5 
4.  Simple average rate of dutiable lines only  11.4 10.0 14.4 
5. Tariff quotas (% of all tariff lines)  3.8 3.7 3.7 
6. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  4.1 4.0 4.5 
7. Domestic tariff peaks (% of all tariff lines)c 6.4 6.5 7.7 
8 International tariff peaks (% of all tariff lines)d 9.0 8.0 11.8 
9. Overall standard deviation of applied rates  42.4 28.0 39.2 
10. Nuisance applied rates (% of all tariff lines)e 38.3 37.2 37.7 
11. Total number of tariff lines at the 8 -digit level  8,299  8,525  8,525  
n.a. Not applicable.  
a Ad valorem  equivalents (AVEs) were estimated based on 2015 import data at the 8 -digit tariff.  
 If no import data were available for 2015, 2014 import data were used in calculations.  
b AVEs were estimated based on 2020 import data at the 8 -digit tariff.  
 If no impor t data were available for 2020, 2019 import data were used in calculations.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  All tariff calculations exclude the 320 in -quota lines.  
 The tariff schedules are based on HS12 nomenclature for 2016 and on HS17 nomenclature for 2017.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
 
25 By way of example, see WTO document WT/TPR/S/355/Rev.1, 22  September  2017, Table  3.2. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 61 - 
 
 3.27.   The maximum rate on an AVE basis of 671.3% is applied to out -of-quota imports of fresh or 
chilled lollo lettuce (excluding red lollo lettuce), from 1  March to 20  December, out of tariff q uota 
(0705 1949 ); followed by fresh or chilled red lollo lettuce, from 1  March to 20  December, out of tariff 
quota (0705 1939, 663.4%); then fresh or chilled cut -and-come -again chicory, from 1  March to 
20 December, out of tariff quota (0705 2969, 608.3%), and frozen breasts of fowls of the species 
Gallus domesticus , out of tariff quota (0207 1489, 536.0%). Rates higher than 100% only apply to 
agriculture, mainly in vegetables (HS  07), meat (HS  02), and dairy products (HS  04). Within 
agriculture, animals and  animal products, and dairy products are the product groups with the highest 
import duties. Some agricultural product groups such as animals and animal products; dairy 
products; and fruits, vegetables, and plants display higher standard deviations, implyin g larger tariff 
ranges within these product categories (Table  A3.1).  
3.28.   Some 85.5% of all tariff lines carry rates of 10% or below (compared with 83.9% in 2016) 
(Chart  3.1). Duty -free treatment applies to 26.9% of tariff lines, up from 19.7% in 2016, inter alia, 
due to the temporary suspension of tariffs on textile products (Section  3.1.3.5) as well as 
Information Technology Agreement (ITA) expansion.26 Duty-free treatment covers a wide range of 
products such as fish and crustaceans, nuts, fruits, tea, some c ereals, certain organic chemicals, 
medical equipment, agricultural equipment, furniture, and products granted duty -free treatment 
under the Pharmaceutical Initiatives, the ITA, ITA expansion, and the Agreement on Trade in Civil 
Aircraft.  
Chart 3.1 Breakdown of estimated applied MFN tariffs, 2016 and 2021  
 
Note:  Figures above the bars refer to the percentage of total lines. Calculations exclude in -quota rates. 
They do not add to 100% since some AVEs were not av ailable (4.1% and 4.0% of all lines in 2016 
and 2021, respectively).  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and WTO document 
WT/TPR/S/355/Rev.1, 22  September  2017.  
3.1.3.2   Tariff rate quotas  
3.29.   Tariff rate quotas apply to a number of agricultural products, comprising 3.7% of all tariff 
lines in 2021 (down from 3.8% in 2016) (Table  3.3). These mainly cover edible vegetables, meat 
and edible meat offal, fruit juices, fresh fruits, cut flowers, live animals, dairy products, wine , and 
certain cereals. Tariff rate quotas can be autonomously increased, mainly to mitigate domestic 
 
26 The elimination of duty rates due to ITA expansion was mainly for items under HS Chapters 85 
and 90. 
19.764.2
4.6
1.6 1.1 0.84.026.958.6
3.9
1.50.9 0.73.6
01,0002,0003,0004,0005,0006,000
0 >0-10 >10-20 >20-30 >30-40 >40-50 >502016 (Total number of tariff lines: 8,299)
2021 (Total number of tariff lines: 8,525)Chart 3. [CHE -LIE] Breakdown of applied MFN tariffs 2016 and 2021
(Number of tariff lines)
WTO Secretariat calculations, based on data provided by the authorities; and WTO document WT/TPR/S/355, 11 April 2017. Source:Figures above the bars refer to the percentage of total lines.  Calculations exclude in -quota rates .  They do not add to 100% since some AVEs 
were not available (4.1% and 4.0% of all lines in 2016 and 2021, respectively).  Note:WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 62 - 
 
 shortages.27 The process of quota allocation varies according to the product (Section  4.1). Tariff rate 
quotas  are managed by an electronic application ("e -quota") during the customs declaration.  
3.30.   Switzerland provides either preferential in -quota rates within its MFN tariff rate quotas  or 
specific bilateral tariff rate quotas . Switzerland has 320 applied MFN in -quota tariff lines. Under 
certain regional trade agreements, Switzerland has opened specific bilateral tariff rate quotas for 
certain products (Table  3.4).  
Table  3.4 Preferential tariff rate quotas, by tariff  regime, 2021  
  Tariff preferences on products 
covered by WTO TQs  Specific bilateral tariff  
rate quotas  
  (Number of tariff lines at the 8 -digit level)  
MFN applied duty rates  320 n.a.  
European Free Trade Association (EFTA)  190  n.a.  
European  Union  42 48 
Bilateral agreements  
China  262  n.a.  
Japan  136 4 
Faroe Islands  3 n.a.  
EFTA agreements  
Albania  100 2 
Bosnia and Herzegovina  108 3 
Canada  7 1 
Chile 171 3 
Colombia  188 3 
Costa Rica  148  n.a.  
Ecuador  134  3 
Egypt  86 7 
Gulf Cooperation Council (GCC)  44  n.a.  
Georgia  196 n.a.  
Hong Kong, China  32 n.a.  
Israel  51 2 
Indonesia  151 10 
Jordan  80 1 
Korea, Republic of  186 n.a.  
Lebanon  102 2 
Mexico  43 n.a.  
Montenegro  107 5 
Morocco  95 n.a.  
North  Macedonia  69 n.a.  
Palestinian Authority  32 n.a.  
Panama  78 n.a.  
Peru 188  3 
Philippines  35  3 
Southern African Customs Union (SACU) 
excl. Lesotho  191 12 
Serbia  107 n.a.  
Singapore  8 n.a.  
Tunisia  18 1 
Turkey  52 6 
Ukraine  125 1 
United Kingdom  37 45 
Non-reciprocal   
GSP 183  3 
LDCa n.a.  n.a. 
n.a. Not applicable.  
a LDCs benefit from the duty -free and quota -free treatment.  
Note:  The tariff schedule separates tariff lines for in -quota (320 at the 8 -digit tariff line level) and 
out-of-quota tariffs (318 at the 8 -digit tariff -line level). Calculations are based on applied tariffs valid 
in December 2021. The figures correspond to numbers of in -quota tariff lines; the preferences cover 
all and partial (ex -out) tariff lines at the 8 -digit level.  
Source:  Information provided by the Swiss authorities.  
 
27 The legal basis for TQ modifications is Art icle 21 of the Law on Agriculture (RS  910.1).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 63 - 
 
 3.31.   Seasonal tariffs apply to 95 products and are levied mostly on fruits and vegetables produced 
domestically, most of which are also subject to TQs.  
3.1.3.3   Bound duties  
3.32.   Switzerland -Liechtenstein tariff commitments are formulated as specific duties. As a result of 
the Uruguay Round, 99% of the Switzerland -Liechtenstein tariff lines are bound. Unbound tariff lines 
cover 83 tariff lines (at the HS 8 -digit level) for gas, petroleum, and related produc ts. The simple 
average bound tariff for 2021 was estimated at 11.7% (43.0% for agricultural products and 2.3% 
for non -agricultural products) and 17.5% of all tariff lines are duty -free (WTO definition) (Table  3.3).  
3.1.3.4   Other duties and charges  
3.33.   Switzerland and  Liechtenstein have bound ODCs on the tariff lines covered in their schedule 
of concessions at zero. However, two of the private -sector compulsory stock organizations operating 
the Swiss Government's compulsory stock requirements (namely CARBURA and Réserv esuisse) 
apply levies uniquely on imports to finance storage costs and associated risks through their so -called 
"guarantee funds". These levies are collected by the two organizations, with import data being 
provided by the FOCBS. The other organizations' ( Helvecura, Agricura, and Provisiogas) guarantee 
funds are financed by charges on both imported and domestically produced goods when they are 
placed on the market (i.e. they are included in the sales price with the cost being borne by the 
consumer).28 Charg es are the same for imported and domestically produced goods. The guarantee 
fund contributions for 2021 are set out in Table  3.5. Compulsory stocks are also available to 
Liechtenstein. Over the review period, there have been no changes to the commodity gro ups subject 
to compulsory stockpiling.  
Table  3.5 Guarantee fund contributions, 2021  
  Guarantee fund contribution (GFC)  
Réservesuisse (foodstuffs)  
Animal feed  CHF 0 -4.0/100  kg gross  
Cereals for human 
consumption  CHF 0 -4.0/100  kg gross  
Rice for human 
consumption  CHF 0 -5.2/100  kg gross  
Coffee  CHF 0 -5.22/100  kg gross (depending on the yield factor, a higher contribution is 
levied for extracts, essences, and concentrates of coffee)   
Edible fats and oil CHF 0 -17.65/100  kg gross  
Sugar  CHF 0 -7.0/100  kg gross  
CARBURA (energy)  
Car gasoline  CHF 3.00/100  kg gross  
Diesel oil  CHF 4.50/100  kg gross  
Jet fuel  CHF 7.00/100  kg gross  
Heating oil  CHF -15/m3 a 
 
Agricura   
Fertilizers  CHF 3.00/100  kg gross  
Helvecura   
Therapeutic 
products  0-2.2%/price ex -factory   
Provisiogas  
Natural gas, 
liquefied/gaseous 
state CHF 0.017 ct/kWh  
a As indicated by the authorities, due to declining consumption, the volume of heating oil stocks is 
being reduced. These specific surpluses are being returned to importers of heating oil through 
negative guarantee fund contributions.  
Source:  Compiled by WTO Secretariat, based on information provided the authorities; and Réservesuisse, 
Tariffs of the Guarantee Fund Contributi ons.  
 
28 Federal Office for National Economic Supply, Organisations of Compulsory Stocks . Viewed at: 
https://www .bwl.admin.ch/bwl/en/home/themen/pflichtlager/pflichtlagerorganisationen.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 64 - 
 
 3.34.   As at the time of the previous Review, since ODCs are bound  at zero and applied tariffs often 
equal the bound rates, it is possible that the sum of tariff and guarantee fund contributions may 
exceed Switzerland's bound commitments on several tariff lines (Table  3.6). 
Table 3.6 Guarantee fund contributions, applied tariffs and bound tariffs  
Tariff code  Item  Guarantee  
fund 
contribution  
(CHF 100 kg  
gross)  2021  
applied tariff  
(CHF 100  kg gross)  Bound tariff  
(CHF 100  kg gross)  
Rice    
10061090  Rice (paddy or rough), for direct 
consumption  5.20 0.0 0.0 
10061090  Rice (paddy or rough), for further 
processing  3.12 0.0 0.0 
10062090  Rice, husked (cargo or brown)  5.20 0.0 0.0 
10063090  Rice, semi -milled or wholly milled  5.20 0.8 0.8 
10064090  Broken rice 5.20 0.8 0.8 
Coffee     
09012100  Coffee, roasted, not decaffeinated  5.22 63.0 63.0 
09012200  Coffee, roasted, decaffeinated  5.22 63.0 63.0 
21011100  Extracts, essences and 
concentrates of coffee (unmixed)  10.28  182.0  182.0  
21011100  Extracts, essences and 
concentrates of coffee, unmixed 
(processing traffic)  8.86 182.0  182.0  
21011100  Coffee extract, liquid/frozen  3.08 182.0  182.0  
21011219  Coffee extract, mixed, other, more 
than 60%  10.28  182.0  182.0  
21011219  Coffee extract, mixed, other, more 
than 10% but not more than 20%  2.06 182.0  182.0  
21011219  Coffee extract, mixed, other, more 
than 20% but not more than 30%  3.08 182.0  182.0  
21011219  Coffee extract, mixed, other, more 
than 50% but not more than 60%  6.17 182.0  182.0  
Fats and oils     
15179068  Other edible oils/fats, of a milkfat 
content by weight exceeding 10% 
but not exceeding 15%, other, 
other packing type  17.31  236.7  254.0  
Source:  Information complied by the WTO Secretariat, based on information from Réservesuisse. Viewed at: 
https://www.reservesuisse.ch/tariffs -of-the-guarantee -fund-contributions/?lang=en  
[November  2021]; and tariff data provided by the authorities.  
3.1.3.5   Tariff exemptions and reductions  
3.35.   In 2019, the Federal Council renewed and expanded a temporary reduction on customs duties 
on textiles, which had been in place from 2015 to 2019. The Ordinance on the Temporary Reduction 
of Customs Duties on Textile Materials and Intermediate Materials (RO 2019 1611; RS  632.102.1) 
entered into force on 1  July 2019 and will have effect until 31  December  2023. It covers 522 tariff 
lines (at the HS 8 -digit tariff line level) in Chapters 50, 51, 52, 53, 54, 55, 56, 58, 59, and 60, of 
which 15 tariff lines may not benefit from the suspension programme if these items are used for 
retail sale or are in ready -to-use form. All importers, irrespe ctive of their origin, may benefit from 
tariff suspensions. This represents a significant increase in the number of duty -free tariffs compared 
with the previous regime (Table  3.7). It was put in place in response to a request from the Swiss 
Textiles Associ ation, whose member companies rely heavily on imports of input and intermediary 
materials for production.29 
 
29 Federal Council (2019), "Federal Council Once Again Lowers Customs Duties for Textile Industry", 
1 May.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 65 - 
 
 Table 3.7 Suspension of customs duties in the textiles sector, 2015 -19 and 2019 -23 
(No. of tariff lin es at the 8 -digit code by HS 2 -digit code)  
HS code  Product description  2015 -19a 2019 -23b 
50 Silk n.a. 13 
51 Wool, fine or coarse animal hair; horsehair yarn and 
woven fabric  n.a. 41 
52 Cotton  7 164 
53 Other vegetable textile fibres; paper yarn and woven 
fabrics of paper yarn  n.a. 15 
54 Man-made filaments; strip and the like of man -made 
textile materials  21 77 
55 Man-made staple fibres  2 152 
56 Wadding, felt and nonwovens; special yarns; twine, 
cordage, ropes and cables and articles thereof  3 3 
58 Special woven fabrics; tufted textile fabrics; lace; 
tapestries; trimmings; embroidery  5 5 
59 Impregnated, coated, covered or laminated textile 
fabrics; textile articles of a kind suitable for industrial 
use 7 7 
60 Knitted or crocheted fabrics  16 45 
Total 61 522 
n.a. Not applicable.  
a Decision made on 18  November  2015. Effective period from 1  January  2016 to 1  July 2019.  
b Decision made on 1  May 2019. Effective period from 1  July 2019 to 1  January  2024.  
Source:  Ordinance on the Temporary Reduction of Customs Duties on Textiles (RO 2015 4935); and 
Ordinance on the Temporary Reduction of Customs Duties on Textile Materials an d Intermediate 
Materials (RO 2019 1611).  
3.36.   Beside the tariff suspension system, Switzerland and Lichtenstein maintain various tariff 
exemptions and reductions under different laws and ordinances.  
3.37.   Under the Federal Law on Customs Tariffs, the Federal Council may reduce tariffs or exempt 
imports from duties in exceptional circumstances such as shortages of foodstuffs or other essential 
goods.30 On 20  August  2018, owing to drought conditions, the Federal Council temporarily 
eliminated customs duties on four feed ing lines of the Swiss customs tariff31; zero duties for these 
lines were in effect from 1  September until 31  October  2018. In addition, on 8  April 2020, the 
Federal Council set a zero duty for certain medical goods comprising 41  tariff lines32; this was in 
effect between 10  April 2020 and 9  October  2020 inclusive.  
3.38.   In addition, a variety of customs duty reliefs in the form of different schemes are provided 
when entering the customs union between Switzerland and Liechtenstein, such as the temporar y 
admission of goods/inward processing, customs relief by type of use and for animal feed, duty -free 
warehouses, and open customs warehouses. There have been no substantive changes to these 
provisions since January  2017 (Table  3.8). 
Table 3.8 Key features of tariff exemptions and reductions, 2021  
Scheme  Summary  Relevant 
laws/ 
ordinance  
Duty-free 
movement of 
goods  • Goods eligible for exemption under international conventions (the exemption can 
be restricted or suspended temporarily or durably for goods from countries that 
do not grant reciprocity)  
• Customs privileges for diplomats: exemption from customs duties and VAT is 
granted on the importation of goods that are intended for the official use of 
embassies, consulates, international organizations and missions as well as for the 
personal use of members of representations who have diplomatic status  
• Coffins, and funerary urns and ornaments  
• Prizes, commemorative badges, and gifts of honour  
• Stocks on dining cars of international trains; and stocks, spare parts, and 
equipment on board boats and aircrafts  
• Legal payment means, bonds, manuscripts and documents with no value for 
collection, stamps, as well as foreign public transport tickets  RS 631.0  
RS 631.01  
 
30 Federal Law on Customs Tariffs (RS  632.10), Section  3. 
31 RO 2018 304 7.  
32 RO 2020 1197.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 66 - 
 
 Scheme  Summary  Relevant 
laws/ 
ordinance  
• Items for retur ning residents, wedding trousseau (e.g. items for household, 
wedding gifts), and inheritance  
• Goods for charitable institutions and for poor persons  
• Cars for disabled people  
• Objects for teaching and research  
• Works of art and exhibition objects for museums  
• Instruments and devices for medical examination or treatment of patients in 
hospitals or similar facilities  
• Studies and works of Swiss artists staying temporarily abroad for study  
• Border trade, and animals from border waters  
• Commercial samples and specimens   
• Indigenous packing material  
• The Confederation's war material  
• Capital goods and capital items of foreign companies that transfer their activities 
to the customs territory  
Temporary 
imports  The Federal Council may provide partial or full exemption from import duties on 
foreign goods for temporary admission into the customs territory or on indigenous 
goods after temporary admission into the foreign customs territory.  
 
The temporary admission procedure is generally restricted to two yea rs (but a 
one-year extension may be requested no more than three times) after which the 
goods are re -exported without being modified. Customs offices require a deposit 
equivalent to the import duties, which would be payable in the case of permanent 
importa tion (release into free circulation). In the case of a full and punctual 
re-exportation of the goods, the deposit is returned. Almost all goods can be imported 
under temporary admission. The main categories of goods eligible for temporary 
admission include  professional equipment, goods for exhibitions and trade fairs, 
certain means of transport (e.g. racing motor vehicles) and packaging.  RS 631.0  
RS 631.01  
Inward -processing 
regime  Goods under the inward -processing regime may be subject to partial or full exemption 
from import duties when entering Switzerland. In addition, in certain cases, imported 
goods can be exempted from VAT.  
 
The inward -processing procedure can be applied to goods that are temporarily 
processed in Switzerland. Under the scheme, the imported goods must be intended 
for re -exportation within 12 months of the date of the temporary importation after 
having undergone manufacturing, processing, or repair. The approval of the Swiss 
FOCBS is required.  RS 631.0  
RS 631.01  
RS 631.016  
Duty relief  
By type of use  Goods may be imported at reduced duties depending on their final use. Importers 
that wish to claim for the duty relief must present an end -use commitment and obtain 
a permit from the General Directorate of Customs. Annex 1 of Ordinance on Customs 
Relief (RS  631.012) determines goods being brought into the customs territory under 
the customs tariff relief scheme. The scheme covers mainly agric ultural products and 
certain manufacturing products.  RS 631.0  
RS 631.01  
RS 631.012  
Food for zoo, 
laboratory, and 
other animals  Exemptions from customs duties may apply to forage products intended for animal 
food (e.g. animals in zoos, animals used for scientific purposes, wild animals, fish, 
dogs, cats and other animals kept in apartments, not for the purpose of food 
production).  RS 631.0  
RS 631.01  
RS 631.012  
Duty-free 
warehouses  Goods can be temporarily stored without paying import duties. Goods are moved via 
the transit procedure from the border to the duty -free warehouse. After temporary 
storage, the goods can be either imported or exported from the customs territory as 
part of the transit procedure.  
 
The following goods can be temporarily stored in a duty -free warehouse without 
paying tax: highly taxed goo ds or goods subject to a quota, and goods stored on a 
temporary basis whose end use is not yet certain.  RS 631.0  
RS 631.01  
RS 631.013  
 
Open customs 
warehouses 
(OCWs)  A warehouse operator can store their own or third -party foreign goods (within Swiss 
customs territory). Goods are moved in transit from the border to the warehouse 
(approved place) without any customs duties or taxes being paid. The main benefits 
of an OCW are: (i)  temporary storage without paying any import duties; (ii)  import 
duties mus t be paid after the end of stockpiling for goods for sale in the customs 
territory; and (iii)  goods remain at a warehouse and do not have to be sent to a 
specific customs office for any clearance formalities.  RS 631.0  
RS 631.01  
RS 631.013  
 
Source:  Information compiled by the WTO Secretariat, based on laws and ordinances as noted in the table; 
and the Swiss FOCBS, Import Procedure . Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/information -companies/declaring -goods/importation -into-s
witzerland.html  [December  2021].  
3.1.3.6   Tariff preferences  
3.39.   Under the customs union between Switzerland and Lichtenstein, all goods are freely traded 
betwe en the two countries. However, they remain subject to the Market Control and Surveillance 
Mechanism (Section  2.3.2.3). The bilateral agreements between the European  Union and WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 67 - 
 
 Switzerland and the EEA Agreement (for Lichtenstein) provide for free trade in mo st non -agricultural 
products with a valid certificate of origin. In addition to the European  Union and the EFTA 
Convention, Switzerland and Liechtenstein have engaged in several FTAs within the ambit of EFTA 
and four bilateral agreements with China, the Fa roe Islands, Japan, and the United  Kingdom 
(Section  2.3.2).  
3.40.   Under the RTAs (i.e. reciprocal free trade agreements), on average 59.4% of all tariff lines in 
2021 (excluding applied MFN duty -free), which represent a further 26.9% of all tariff lines (excludi ng 
in-quota tariff lines) are eligible for preferential tariff rates at zero or at reduced rates (i.e. lower 
than the applied MFN rate) with a proof of origin (Chart  3.2). Again, preferential tariff rates are 
formulated as specific duties.  
Chart 3.2 Breakdown of applied MFN and preferential tariffs, 2021  
 
a Calculations are based on applied tariffs valid in December  2021.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.41.   Under RTAs, duty -free treatment is granted to at least 99.9% of non -agricultural imports, 
while preferences are granted on a limited range of agricultural products (WTO definition). As a 
result, the simple average tariff rates for agriculture are in general just slightly lower than the 
average MFN tariff rate of 25.4%, ranging from between 22% to 25.2%. Tariffs on non -agricultural 
products (WTO definition) are  nearly  all zero (Table  3.9). 
Table 3.9 Tariffs under preferential agreements, 2021  
  Simple average tariff (%)a  Duty -free lines in total  
  All WTO 
agriculture  WTO non - 
agriculture  All WTO 
agriculture  WTO non - 
agriculture  
MFN applied duty rates  7.2 25.4 1.7 26.9 19.5 29.3 
EFTA 5.3 22.8 0.0 85.4 42.3 99.9 
European  Union  5.3 23.0 0.0 81.7 30.3 99.0 
Bilateral agreements  
China  5.2 22.0 0.0 86.0 45.0 99.8 
Japan  5.5 23.8 0.0 83.8 35.8 99.9 
Faroe Islands  5.8 25.2 0.0 80.0 20.6 99.9 
01,0002,0003,0004,0005,0006,0007,0008,0009,000
MFN applied duty rates
Albania
Bosnia and Herzegovina
Canada
Chile
China
Colombia
Costa Rica
Ecuador
EFTA
Egypt
EU
GCC
Georgia
Hong Kong, China
Indonesia
Israel
Japan
Jordan
Korea, Republic of
Lebanon
Mexico
Montenegro
Morocco
North Macedonia
Palestinian authority
Panama
Peru
Philippines
SACU excl. Lesotho
SACU-Lesotho
Serbia
Singapore
Faroe Islands
Tunisia
Turkey
Ukraine
United Kingdom
GSP
LDCMFN duty -free
Dutiable lines (no preferential rate)Duty-free
Reduced ratePreferential tariff 
rates
WTO Secretariat calculations, based on data provided by the authorities. Source:Chart 3.2 Breakdown of applied MFN and preferential tariffs, 2021
(Number of tariff lines)
Calculations are based on applied tariffs valid in December 2021. Note:
a
a
aWT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 68 - 
 
   Simple average tariff (%)a  Duty -free lines in total  
  All WTO 
agriculture  WTO non - 
agriculture  All WTO 
agriculture  WTO non - 
agriculture  
United Kingdom  5.3 23.0 0.0 81.7 30.3 99.0 
EFTA agreements  
Albania  5.5 23.9 0.0 83.3 33.9 99.9 
Bosnia and Herzegovina  5.4 23.5 0.0 83.8 35.7 99.9 
Canada  5.6 24.2 0.0 81.4 26.1 100.0  
Chile 5.5 24.0 0.0 82.9 32.3 99.9 
Colombia  5.3 23.0 0.0 84.9 40.3 99.9 
Costa Rica  5.5 23.9 0.0 83.6 35.0 99.9 
Ecuador  5.4 23.3 0.0 84.6 39.1 99.9 
Egypt  5.5 23.9 0.0 82.8 31.9 99.9 
GCC 5.5 24.0 0.0 83.0 32.8 99.9 
Georgia  5.3 23.0 0.0 85.3 41.8 99.9 
Hong Kong, China  5.5 24.2 0.0 82.5 30.6 99.9 
Indonesiab 5.0 21.6 0.0 85.7 43.5 99.9 
Israelb 5.5 24.1 0.0 82.9 32.3 99.9 
Jordan  5.6 24.2 0.0 81.0 25.1 99.9 
Korea, Republic of  5.5 23.8 0.0 83.8 35.9 99.9 
Lebanon  5.5 24.0 0.0 83.0 32.8 99.9 
Mexico  5.7 24.9 0.0 81.8 28.0 99.9 
Montenegro  5.5 23.8 0.0 83.4 34.4 99.9 
Morocco  5.5 24.1 0.0 81.6 27.3 99.9 
North  Macedonia  5.5 24.1 0.0 81.8 28.1 99.9 
Palestinian Authority  5.5 24.2 0.0 81.3 25.8 99.9 
Panama  5.5 24.0 0.0 82.9 32.4 99.9 
Peru 5.3 23.1 0.0 84.8 40.1 99.9 
Philippines  5.5 23.8 0.0 82.5 30.9 99.9 
SACU – Lesothob 0.0 0.0 0.0 100.0  100.0  100.0  
SACU excl. Lesotho  5.4 23.5 0.0 84.3 37.9 99.9 
Serbia  5.4 23.7 0.0 83.4 34.4 99.9 
Singapore  5.5 24.2 0.0 81.9 28.4 99.9 
Tunisia  5.6 24.5 0.0 80.6 23.3 99.8 
Turkeyb 5.3 22.8 0.0 84.0 36.7 99.9 
Ukraine  5.5 24.0 0.0 82.8 32.1 99.9 
Non-reciprocal  
GSP 5.7 23.8 0.3 77.5 36.8 91.2 
GSP – Democratic People's 
Republic of Korea  5.9 23.8 0.5 77.0 36.8 90.6 
GSP – Brazil  5.7 23.8 0.3 77.5 36.7 91.2 
LDCc 0.0 0.0 0.0 100.0  100.0  100.0  
a Ad valorem  equivalents (AVEs) were estimated based on 2020 import data at the 8 -digit tariff level. 
If no import data were available for 2020, 2019 import data were used in calculations.  
b Calculations are based on applied tariffs valid in December  2021.  
c Duty-free treatment for all products.  
Note:  All tariff calculations exclude in -quota lines. The tariff schedules are based on HS17 nomenclature, 
consisting of 8,525 tariff lines (at the 8 -digit tariff line level).  
Source:  WTO Secretariat calculations, based on dat a provided by the authorities.  
3.42.   In 2020, nearly 60% of the value of all imports into Switzerland entered duty -free. While a 
further 36.9% of imports were eligible for preferences, just over half of these entered using 
preferential tariff rates (Chart  3.3). Preference utilization varies significant among beneficiaries, for 
example, in 2020 it ranged from zero to 92.2% (Table  A3.2).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 69 - 
 
 Chart 3.3 Swiss imports by tariff regimes, 2020  
 
Note:  Calculations based on general total (total 2) with gold bars and other precious metals, coin, precious 
stones and gems, as well as works of art and antiques.  
Source:  WTO Secretariat estimates, based on statist ics provided by the Swiss authorities.  
3.43.   Within the framework of the GSP (Section  2.3.3.1), Switzerland and Liechtenstein grant 
non-reciprocal preferential tariff treatment for goods originating in beneficiary countries 
(71 developing countries and 48  LDCs b enefit from such preferences, with LDCs benefitting from 
duty-free and quota -free access for all products).33 Over the review period, the Philippines and 
Georgia were removed from the list of GSP beneficiaries in 2018, as were Ecuador in 2020 and 
Indonesia  from 2021. Preferences given to non -LDC GSP countries are more limited, especially for 
agricultural products, where the average tariff rate under the GSP is 23.8% compared to an average 
applied MFN rate of 25.4% (Table  3.9). According to data provided by the Swiss authorities, in  2020, 
CHF 5,974.1 million of imports from GSP beneficiaries (excluding GSP economies that have RTAs 
with Switzerland and Liechtenstein and LDCs) were eligible for tariff preferences and the preference 
utilization rate was 21.2%. T aking LDCs alone, approximately CHF  1,191.7  million of imports were 
eligible for preference and the preference utilization rate was 21.3% (Table  A3.2).  
3.1.4   Import prohibitions, restrictions, and licensing  
3.44.   As at the time of the previous Review, Switzerland and Liechtenstein continue to apply import 
prohibitions largely for reasons of security, health, and protection of the environment (Table  3.10). 
Additionally, some import prohibitions are applied by both Switzerland and Liechtenstein in the 
context of UN Secur ity Council Resolutions or EU sanctions regulations.34 Since the previous Review 
in 2017, additional import prohibitions or restrictions have been introduced in the context of 
sanctions against the Democratic People's Republic of Korea (especially textiles  and statues; 
machinery, electrical equipment and vessels; and fish, seafood, food of plant origin, and agricultural 
products) and the sanctions against Belarus (petroleum and petroleum products; potassium chloride 
products).  
 
33 Ordinance Determining the Preferential Customs Tariffs for Developing Countries (RS  632.11).  
34 The full list of current sanctions is available online from SECO. Viewed at: 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaf
tsbeziehungen/exportkontrollen -und-sanktionen/sanktionen -embargos/sanktionsmassnahmen.html . 
MFN duty -free
59.0%
MFN dutiable
4.0%Preference eligible, but 
entering MFN dutiable
16.1%Preferences used
20.8%
Total imports 
CHF 273.8 
billionChart 3.3 Swiss imports by tariff regimes, 2020
Source: WTO Secretariat estimates, based on statistics provided by the Swiss authorities. Calculations based on general total (total 2) with gold bars and other precious metals, coin, precious stones and gems 
as well as works of art and antiques.Note: WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 70 - 
 
 Table 3.10 Selected products subject to import prohibitions, 2021   
Products  Legal basis (agreement)  Purpose  
Endangered species and their 
products  Federal Law on the Movement of Protected Species 
of Fauna and Flora (RS  453), Federal Law on 
Fishing (RS  923.0), and Federal Law on Hunting 
(RS 922.0)  Environmental 
protection  
Mercury and products containing 
mercury  Federal Law on the Protection of the Environment 
(RS 814.01)  Environmental 
protection and human 
health protection  
Rough diamonds shipped from a 
country that is not a participant in 
the Kimberley Process 
Certification Scheme (KPCS)  Federal Law on the Application of International 
Sanctions (RS  946.231) and the Ordinance on 
International Trade in Rough Dia monds 
(RS 946.231.11)  Combating 
international trade in 
conflict diamonds  
Certain chemicals originating from 
non-member States of the 
Chemical Weapons Convention  Chemical Weapons Convention (RS  0.515.08), and 
Ordinance on the Control of Chemicals for Civil  and 
Military Purposes (RS  946.292.21)  Prevention of 
proliferation of 
weapons of mass 
destruction  
Certain dangerous chemical and 
pesticide products  Federal Law on the Protection Against Dangerous 
Substances and Preparations (RS  813.1)  Environmental 
protection and human 
health protection  
Ozone -depleting substances  Federal Law on Protection against Dangerous 
Substances and Preparations (RS  813.1), and 
Federal Law on the Protection of the Environment 
(RS 814.01)  Environmental 
protection  
Certain dangerous waste  Federal Law on the Protection of the Environment 
(RS 814.01)  Environment protection  
Fish coming from illegal, 
unreported, and unregulated 
(IUU) fishing  Federal Law on the Movement of Protected Species 
of Flora and Fauna (Ordonnance  sur le contrôle de 
l'origine licite des produits de la pêche maritime 
importés (RS  453.2))  Prevention of IUU 
fishing  
Nuclear, chemical, and biological 
weapons, anti -personnel mines as 
well as cluster munitions   Federal Act on War Materials  (RS 514.51)  Security  
Certain toxic and/or 
environmentally hazardous 
chemical substances  Ordinance on the Reduction of Risks relating to the 
Use of Certain Particularly Dangerous Substances, 
Preparations and Articles (RS  814.81)  Environmental 
protection and public 
health and safety  
Certain plants (including certain 
seeds), certain plants for  planting, 
tubers of Solanum spp (including 
potatoes), certain living parts of 
plants (including certain fruits and 
vegetables), certain bark, and soil 
are permanently or temporarily 
subject to an import prohibition 
(depending on the country of 
origin)  Ordinance on the Protection of Plants against 
Particularly Dangerous Harmful Organisms (Plant 
Health Ordinance, PgesV, RS 916.20)  
Interdepartmental Federal Department of Economic 
Affairs, Education and Research (EAER) and Federal 
Department of Environment, Tr ansport, Energy and 
Communication (DETEC) Ordinance on the Plant 
Health Ordinance (RS 916.201)  
FOAG Ordinance on Phytosanitary Measures for 
Agriculture and Horticulture (RS  916.202.1)  
FOEN Ordinance on Phytosanitary Measures for 
Forests (RS 916.202.2)  Plant health 
(prohibition concerns 
high-risk commodities)  
Certain mercury containing 
carbon -zinc batteries and 
alkali-manganese 
batteries/accumulators  Ordinance on the Reduction of Risks relating to the 
Use of Certain Particularly Dangerous Substances, 
Preparations and Articles (RS  814.81)  Environmental 
protection  
Misappropriated cultural property 
from Iraq and Syria  
 Ordinance on Measures against the Republic of Iraq 
(RS 946.206) and Ordinance on Measures against 
Syria (RS  946.231 .172.7)  Protection of cultural 
property  
 
Goods from the Crimea and 
Sebastopol if not accompanied by 
a certificate of origin issued by 
the Ukrainian authorities  Ordinance on Measures to Prevent the 
Circumvention of International Sanctions Related to 
the Situation in Ukraine (RS  946.231.176.72)  International law and 
security  
Note:  Several sanctions regimes are not included in the table, the details of which were viewed at: 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit
/Wirtschaftsbeziehungen/exportkon trollen -und-sanktionen/sanktionen -embargos/sanktionsmassnah
men.html . 
Source:  WTO documents WT/TPR/S/355/Rev.1, 22  September  2017; and G/MA/QR/N/CHE/3, 22  July 2020; 
and information provided by the authorities.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 71 - 
 
 3.45.   The import licensing regime of Switzerland an d Liechtenstein for 2021 was notified to the 
WTO in the same year.35 Changes over the review period to licensing and authorization requirements 
were the removal of import authorization requirements for alcohol with an ethanol content greater 
than 80% volum e on 1  January  2019 and the introduction of import licensing requirements to fulfil 
Switzerland's obligations under the Minamata Convention on Mercury, which it ratified in May 2017.  
3.46.   An automatic import licence (general import licence (PGI)) is required fo r a wide range of 
agricultural products (some 650 tariff lines at the HS 8 -digit level, including in -quota lines). It is 
obtained free of charge from the Federal Office of Agriculture ( FOAG), and it is for an unlimited 
duration; it is used for statistical reasons and for the management of TQs.36 Additionally, under 
Switzerland's compulsory reserves framework (Section  3.1.3.4) a PGI must be obtained from 
CARBURA for imports of fuels and from Réservesuisse for imports of food and feedstuffs.37 Automatic 
licences are granted on the condition that the importer has a reserve stock contract or pays a 
contribution to the guarantee funds administered by CARBURA or Réservesuisse.  
3.47.   Non-automatic licences are used for allocating some parts of certain TQs on agricultural  
products to authorized operators; they may be transferred to other authorized operators and are for 
limited periods. In accordance with Switzerland's notification38, the TQs in question are: live bovine 
animals (CHEQ002), animals for slaughter (CHEQ005 an d CHEQ006), some dairy produce 
(CHEQ007), cut flowers (CHEQ013), potatoes (CHEQ014), fresh and frozen vegetables (CHEQ015, 
CHEQ016), and fresh fruit (CHEQ017, CHEQ018, CHEQ019).39 
3.48.   For SPS reasons, certain imports of animals and animal products require an a uthorization 
from the Federal Food Safety and Veterinary Office. Imports from the European  Union, Norway, and 
Iceland are largely exempt from this requirement. Vegetable and vegetable products no longer need 
an authorization from the Federal Office for Agr iculture but must be accompanied by a phytosanitary 
certificate.  
3.49.   Licences are also required for: (i)  imports of species covered by the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora; (ii)  reproductive forestry 
materials; ( iii) organs, tissue, and cells of human origin intended to be transplanted; (iv)  blood, 
blood products, and immunological products; (v)  narcotics, psychotropic substances, and precursors 
used and marketed for legal purposes; (vi)  war materials and arms; (v ii) explosives and pyrotechnic 
articles for civilian use; (viii)  nuclear fuels, residues, and wastes; radioactive materials; 
(ix) mercury; (x)  dangerous waste; (xi)  dual-use goods; (xii)  certain dangerous chemical and 
pesticide goods; and (xiii)  ozone -depleting substances.40 
3.1.5   Anti-dumping, countervailing, and safeguard measures  
3.50.   As at the time of their previous Review, neither Switzerland nor Liechtenstein has any specific 
legislation on contingency measures, they have no specialized authorities in place to initiate and 
conduct anti -dumping and countervailing investigations, and they have no anti -dumping, 
countervailing, or safeguard measures in place. In the context of this Review, the authorities indicate 
that no legislative reforms are under  way to establish specific trade remedy regulations. However, 
they note that since the Agreement on Safeguards, the Anti -Dumping Agreement, and the 
 
35 WTO document G/LIC/N/3/CH E/17, 4  October  2021. Permit and licensing requirements are also 
contained in WTO document G/MA/QR/N/CHE/3, 22  July 2020.  
36 The goods falling under the PGI regime (including the agricultural goods subject to compulsory 
reserves) are contained in Annex 1 to  the Ordinance on the Importation of Agricultural Products (RS  916.01). 
The legal basis for general import licences is the Federal Law of 29 April 1998 on Agriculture (RS  910.1); this 
Law gives the Federal Council the right to determine the products subjec t to import licensing and also to 
abolish the system. The tariff lines for which a PGI is required are contained in the Tares database 
(www.tares.ch ). 
37 The Federal Council may impose authorization requirements for the i mport of goods that must be 
stockpiled. Viewed at: https://www.fedlex.admin.ch/eli/cc/2017/308/en . In 2021, s ome 530 tariff lines at the 
HS 8-digit level require a PGI from Réservesuisse. There  are no tariff lines that require a PGI from the FOAG 
and Réservesuisse.  
38 WTO document G/AG/N/CHE/108, 6  May 2021.  
39 The legal basis for these licences is the Federal Law of 29 April 1998 on Agriculture (RS  910.1), the 
Ordinance on the Importation of Agri cultural Products (RS  916.01), and other specific ordinances as set out in 
WTO document G/AG/N/CHE/108, 6  May 2021.  
40 WTO documents G/LIC/N/3/CHE/17, 4  October  2021; and G/MA/QR/N/CHE/3, 22  July 2020.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 72 - 
 
 Agreement on Subsidies and Countervailing Measures are integral parts of national law (under both 
Switzerland's and Liechtenstein's legal systems), these could serve as a legal basis for measures in 
the future.  
3.51.   Switzerland reserved the right to use the special agricultural safeguard under Article  5 of the 
Agreement on Agriculture for 1,176 tariff lines  but has not invoked it for any product since 1999.41 
3.52.   As noted in previous Reviews, in cases of emergency or when the national interest is at stake, 
the legislation provides for changes in tariff rates or the imposition of non -tariff measures.42 These 
provisions have not been used during the review period . 
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.53.   Export procedures for Switzerland and Liechtenstein remain similar to those for imports. An 
export declaration is required (for stat istical purposes) and goods must be exported within one day 
of submission of the customs declaration. The declaration must be made electronically through one 
of the various portals (e -dec, e -dec web, NCTS, or Rail Control) (Section  3.1.1). As indicated in 
Section  3.1.1, e -dec and the NCTS will progressively be integrated into a new customs single window 
(Passar).  Goods delivered to a duty -free or customs warehouse must be exported within six months 
of the submission of the customs declaration. Under a simpl ified export process (Libero export) that 
was introduced in July  2020, an authorized forwarding company can independently select export 
customs declarations in the IT system without presenting them at the customs counter and directly 
export and transport t he permitted goods. This is a temporary optimization in the export process 
until the introduction of Passar, when Libero export will become obsolete. Over the review period, 
physical inspections were undertaken for under 1% of customs clearances on an annu al basis 
(Table  3.11).  
Table 3.11 Physical inspections on exports by customs, 2017 -21 
 Value (CHF)  Number of 
customs 
clearances  Number of 
physical checks 
(%) 
2017 231,853,850,923  5,917,751  5,508 (0.09)  
2018 254,147,398,031  6,232,622  4,317 (0.07)  
2019 286,337,489,573  6,214,402  3,302 (0.05)  
2020 289,333,481,260  5,812,222  2,206 (0.04)  
2021 333,157,082,354  6,208,994  1,980 (0.03)  
Source:  Information provided by the authorities.  
3.54.   There have been no substantial changes to the legislation on non -preferential rules of origin 
for Switzerland and Liechtenstein applying to exports claiming Swiss or Liechtenstein origin .43 Under 
the non -preferential rules of origin, the country of origin is the country where the goods were wholly 
obtained or they have been sufficiently worked or processed, which is defined as having foreign 
content not exceeding 50% or 60% of the ex -works price, a change in the 4 -digit heading in the 
Harmonized System, or (in som e cases) subject to specific origin -conferring processing or working. 
Operations such as packing, cleaning, applying labels or brands, simple mixing, or slaughtering 
animals and cutting up of meat are insufficient working or processing for conferring origi n.44  
3.2.2   Taxes, charges, and levies  
3.55.   Export tariffs are provided for in the Federal Law on Customs Tariffs (Article  5), which gives 
the Federal Council the authority to raise rates in extraordinary circumstances or reduce or suspend 
 
41 WTO Agriculture Information Management System. Viewed at: http://agims.wto.org . 
42 For example, see Federal Law 9 October 1986 on Cust oms Tariffs of (RS  632.10), Articles 7 (national 
interest) and 11 (agricultural products); and Federal Law on External Economic Measures (RS  946.201), 
Article  1 (emergencies).  
43 Ordinance  of 9 April 2008 on Attestation of the Non -Preferential Origin of Goods (RS  946.31); and 
Ordinance of the EAER of 9 April 2008  on the Certification of the Non -Preferential Origin of Goods 
(RS 946.311).  
44 WTO document WT/TPR/S/355/Rev.1, 22  September  2017.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 73 - 
 
 their application.45 The it ems, in principle, subject to the export tariff are contained in the tariff book 
(Part 2); they are mostly scrap and waste metals and rough wood. However, in practice, tariffs on 
these items have been suspended.46 In the context of this Review, the authori ties confirm that 
neither Switzerland nor Liechtenstein applies any taxes, charges, or levies on exports. Exported 
goods are exempt from VAT (Section  3.3.1.2.1). Taxes levied on alcoholic beverages under the 
Alcohol Act and the Alcohol Ordinance are refund ed when the goods are exported.47 
3.56.   In general, there are no fees for customs services, although the FOCBS may charge a fee for 
some services, such as customs clearance outside of office hours.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.57.   As at the time of its previous Review, Switzerland and Liechtenstein maintain restrictions and 
prohibitions on exports based on foreign and security policy (see below) and on some goods on the 
grounds of safety, security, the environment, and compliance with internationa l conventions and 
treaties. These controls largely apply to products also subject to import controls (Section  3.1.4). 
Goods (products, technology, and software) subject export  controls in Switzerland and Liechtenstein 
are contained in Table  3.12 and were n otified to the WTO in 2020.  Over the review period, the only 
change to categories of products subject to export controls was the introduction on 17  March  2020 
of non -automatic export licences for certain goods related to the COVID -19 pandemic. These 
includ ed: (i)  protective glasses and visors; (ii)  oral-nasal protective equipment; (iii)  protective 
clothes; and (iv)  certain active substances or medicines containing certain active substances 
(propofol, rocuronium bromure, and atracurium besilate). These measu res expired on 
22 June 2020.48  
Table 3.12 Selected export controls in Switzerland and Liechtenstein, January 2022  
Product  Legal/regulatory basis  Type of 
restriction  
(Responsible 
entity)  Rationale  
(relevant treaty/  
convention, if applicable)  
Certain animals  
and plants  Federal Law on the Movement of Protected 
Species of Fauna and Flora (RS  453); 
Federal Law on Fishing (RS  923.0); Federal 
Law on Hunting (RS  922.0); Ordinance on 
the Control on the Mov ement of Protected 
Species of Fauna and Flora (RS  453.1)  Import licence 
(Federal Office of 
Food Security and 
Veterinary Affairs 
(FSVO )) Protection of certain species 
of wild fauna and flora  
(CITES)  
Forest 
reproductive 
material  Federal Law on Forests (RS  921.0);  
Ordinance on the Forests (RS  921.01); and  
Ordinance on Forest Reproductive Material 
(RS 921.552.1)  Import licence 
(Federal Office for 
the Environment 
(FOEN )) Ensure healthy material 
used reforestation  
Transplants  Federal Law on the Tra nsplantation of 
Organs, Tissues and Cells (RS  810.21); and  
Ordinance on the Transplantation of 
Organs, Tissues and Cells of Human Origin 
(RS 810.211)  Authorization 
(Federal Office of 
Public Health 
(FOPH )) Protection of donors and 
recipients  
Blood and 
blood and 
immunological 
products  Federal Act on Medicines and Medical 
Devices (RS  812.21); Ordinance on 
Authorizations in the Area of Medicines 
(RS 812.21.1)  Export licence 
(Swissmedic)  Protection of human and 
animal health  
Narcotic drugs, 
psychotropic 
substances and 
precursors  Federal Act on Narcotic Drugs and 
Psychotropic Substances (RS  812.121)  Export licence 
(Swissmedic)  Compliance with 
quantitative restrictions set 
by the UN International 
Narcotics Control Board 
(INCB)  
(UN conventions o n narcotic 
drugs; psychotropic 
substances; and illicit traffic 
in narcotic drugs)  
 
45 Federal Law on Customs Tariffs (RS  632.10 ). As specified in Article, 5, goods not listed in the export 
tariff are exempt from export duties.  
46 The 47 tariff lines (8 -digit level) listed in Part 2 of the tariff book are exempt from export tariffs. 
Viewed under "general tariff" at: 
https://www.ezv.admin.ch/ezv/fr/home/documentation/bases -legales/perception -de-redevances/bases -juridiq
ues-du-tarif-des-douanes.html . 
47 Alcohol Law RS 680 (Article  22, paras.  1 and 23bis ); and Alcohol Ordinance (RS  680.11, Article  60). 
48 This was notified to the WTO in WTO document G/MA/QR/N/CHE/3, 22  July 2020.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 74 - 
 
 Product  Legal/regulatory basis  Type of 
restriction  
(Responsible 
entity)  Rationale  
(relevant treaty/  
convention, if applicable)  
Mercury  Federal Law on the Protection of the 
Environment (RS  814.01), Federal Law on 
the Protection against Dangerous 
Substances and Preparations (RS  813.1), 
and Ordinance o n the reduction of Risks 
relating to the Use of Certain Particularly 
Dangerous Substances, Preparations and 
Articles (RS  814.81)  Export licence 
(FOEN ) Protection of human health 
and the environment  
Rough 
diamonds  Federal Act on the Application of 
Internat ional Sanctions (RS  946.231), and  
Ordinance on the International Trade in 
Rough Diamonds (RS  946.231.11)  Exports are only 
allowed between 
participants to the 
process and they 
must be 
accompanied by a 
certificate  
(State Secretariat 
for Economic 
Affairs (SEC O)) Prevent conflict diamonds 
from entering legitimate 
diamond trade  
(UN Security Council 
Resolution S/RES/1459 of 
2003 (Kimberley 
Certification Process))  
War materials  Federal Act on War Material (RS  514.51), 
and Ordinance on War Material 
(RS 514.511)  Export 
authorization 
(SECO)  Contributing to international 
and regional peace, security 
and stability as well as 
reducing human suffering 
(Arms Trade Treaty ). 
Prevent illicit trafficking in 
arms and their components 
as well as prevention of 
destabilizing accumulations 
of conventional arms  
(Wassenaar Arrangement).  
Weapons, 
weapon 
accessories and 
ammunition  Federal Act on Weapons, Weapon 
Accessories and Ammunition (RS  514.54), 
and Ordinance on Weapons, Weapon 
Accessories and Ammunition  
(RS 514.54 1) Export 
authorization 
(Central Arms 
Office)  Prevent illicit trafficking in 
arms and their components 
as well as prevention of 
destabilizing accumulations 
of conventional arms  
(Wassenaar Arrangement)  
Weapons, 
weapon 
accessories and 
ammunition;  
chemicals for 
civilian and 
military use  Federal Act on the Control of Goods Usable 
for Civil and Military Purposes and Specific 
Military Goods (RS  946.202), and 
Ordinance on the Control of Chemicals for 
Civil and Military Purposes  
(RS 946.202.21)  Export prohibition 
to states not party 
to the Chemical 
Weapons 
Convention.  
Export permit  
(SECO).  Non-proliferation of 
Weapons of Mass 
Destruction (UNSCR 1540)  
(Chemical Weapons 
Convention, Australia 
Group)  
 
Dual-use items  Federal Act on the Control of Goods Usab le 
for Civil and Military Purposes and Specific 
Military Goods (RS  946.202), and 
Ordinance on the Control of Civilian and 
Military Goods, Specific Military Goods and 
Strategic Goods (RS  946.202.1)  Export 
authorization 
(SECO) (except 
uranium – from the 
Federal Office of 
Energy)  Non-proliferation of 
Weapons of Mass 
Destruction (UNSCR 1540) 
as well as prevention of 
destabilizing accumulations 
of conventional arms and 
dual-use goods and 
technologies (Nuclear 
Suppliers Group, Zangger 
Committee, Missile 
Technolog y Control Regime, 
Australia Group, and the 
Wassenaar Arrangement, 
respectively)  
Certain 
hazardous 
chemicals and 
pesticides  Federal Act for Protection against 
Dangerous Substances and Preparations 
(RS 813.1), and Environmental Protection 
Act (RS  814.01)  Export permit  
(FOEN ) Protection of health and the 
environment  
(Rotterdam Convention)  
Ozone - 
depleting 
substances  Federal Act for Protection against 
Dangerous Substances and Preparations 
(RS 813.1), Environmental Protection Act 
(RS 814.01), and Ordinance on the 
Reduction of Risks associated with the Use 
of Particularly Dangerous Substances, 
Preparations and Articles (RS  814.81)  Export  
authorization 
(FOEN ) Protection of human health 
and the environment  
(Montreal Protocol)  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 75 - 
 
 Product  Legal/regulatory basis  Type of 
restriction  
(Responsible 
entity)  Rationale  
(relevant treaty/  
convention, if applicable)  
Dangerous 
waste  Environm ental Protection Act (RS  814.01), 
Ordinance on the Movement of Waste 
(RS 814.610), and DETEC Ordinance on 
Lists for the Movement of Waste  
(RS 814.610.1)  Export  
authorization 
(FOEN ) Ensure proper waste 
disposal  
Nuclear articles 
and radioactive 
waste  Nuclear Energy Act (RS 732.1) and  
Nuclear Energy Ordinance (RS  732.11)  Export licence 
(Federal Office of 
Energy)  Control within framework of 
the Non -Proliferation Treaty 
(Treaty on the 
Non-Proliferation of Nuclear 
Weapons)  
Note:  Several sanctions regimes  are not included in the table, the details of which were viewed at: 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit
/Wirtschaftsbeziehungen/exportkontrollen -und-sanktionen/sanktionen -embargos/sanktionsmassnah
men.html . 
Source:  WTO document G/MA/QR/N/CHE/3, 22  July 2020 (this notification also applies to Liechtenstein); and 
information provided by the authorities.  
3.58.   Under the Federal Law on the Implementation of International Sanctions, the Federal Council 
may, by means of ordinances, apply imp ort and export prohibitions and restraints based on 
international law, particularly decisions by the UN Security Council, the Organization for Security 
and Cooperation in Europe, or Switzerland's principal trading partners .49 There were no substantial 
changes to this law over the review period, and the list of economies subject to sanctions is contained 
on the State Secretariat for Economic Affairs (SECO) website.50  
3.59.   Concerning export embargoes, Liechtenstein implements the relevant UN Security Council 
Resolutions and generally aligns itself with the EU Common Foreign and Security Policy regarding 
export embargoes.  
3.2.4   Export support and promotion  
3.60.   On 1 January  2019, Switzerland repealed the 1974 Federal Law on the Import and Export of 
Processed Agricultural Pro ducts, under which exports of processed agricultural products could be 
granted export subsidies (Section  4.1.4). It was replaced by the Federal Law on the Importation  of 
Processed Agricultural Products (RS  632.111.72), which has provisions on customs dutie s on these 
products.51 
3.61.   Switzerland Global Enterprise (S -GE), a private non -profit association mandated by SECO, is 
responsible for supporting export -oriented SMEs in Switzerland and Liechtenstein in exporting their 
products and services. S -GE's services in clude information and consulting services; the provision  of 
market analysis; assistance in understanding the legal, fiscal, and regulatory specifics in target 
markets; assistance in business partner searches; the organization of "SWISS Pavilions" at 
intern ational trade fairs; the organization of business travel to meet potential business partners; the 
organization of export workshops; and support in target markets through Swiss Business Hubs and 
Trade Points.52 Over the review period, S -GE formed a variety of partnerships with, for example, 
industry associations, chambers of commerce, universities, private trade promotion organizations, 
and start -up funding organizations. New services developed have included an online "market finder" 
platform in partnership with Google Switzerland, which provides digital tools and practical 
information for the export sector.53 It also launched an analysis platform called GoGlobal Cockpit, 
which provides Swiss and Liechtenstein SMEs with customized analysis for their products in foreign 
markets including applicable customs tariffs and practical checklists.54 In response to the C OVID -19 
 
49 Federal Law on the Implementation of International Sanctions (R S 946.231).  
50 SECO. Viewed at: 
https://www.s eco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaf
tsbeziehungen/exportkontrollen -und-sanktionen/sanktionen -embargos/sanktionsmassnahmen.html .  
51 RS 632.111.72.  
52 S-GE, Our Services at a Glance .  
53 S-GE (2019), "Swi tzerland Global Enterprise and Impact Hub Switzerland  Announce Partnership", 
14 October ; and S -GE (2018), "Google Switzerland and S -GE Launch 'Market Finder'", 21  November.  
54 S-GE, Digital Export Platform: GoGlobal Cockpit .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 76 - 
 
 pandemic, S -GE expanded its digital offering, for example, through virtual trade fair participation or 
business missions. S -GE is represented in 31 target markets and regions through 23 Swiss Business 
Hubs and four Trade Points (the latter are smal ler offices), which are integrated into Swiss diplomatic 
missions abroad.55 
3.62.   S-GE's budget comprises mainly funding from Switzerland . The Liechtenstein Government has 
paid an annual financial contribution of CHF  100,000 excluding VAT since 2017. Fees levied  for its 
services and other revenues such as sponsorship income further contribute to S -GE's budget.  
Between 2017 and 2019, S -GE's export promotion budget averaged approximately CHF  28.5 million 
per year. Funding contributions by the Swiss Confederation ac counted for about 70% of the annual 
budget, fees levied for its services for about 27%, and other revenues for about 3%. In 2020, the 
first year of the pandemic, S -GE's budget amounted to about CHF  28.2 million. Funding contributions 
by the Swiss Confedera tion accounted for about 83% of the budget due to an additional crisis -related 
funding. Fees levied for services declined at the same time and accounted for about 14%. During 
the COVID -19 pandemic, S -GE provided extended assistance to SMEs experiencing urg ent 
challenges such as difficulties in delivery of goods. S -GE further used the additional funding of the 
Swiss Confederation in particular to expand its digital services to include virtual trade fair 
participations, business missions, events, client meeti ngs, and webinars.  
3.63.   Neither Switzerland nor Liechtenstein has export processing zones. Goods may be temporarily 
imported duty -free or with a duty drawback right for inward processing, and in certain cases VAT 
may be exempt upon importation.56 
3.2.5   Export financ e, insurance, and guarantees  
3.64.   In addition to private -sector export finance, insurance, and guarantees, Swiss Export Risk 
Insurance (SERV), which is owned by the Swiss Confederation, provides protection against 
non-payment, facilitates the financing of expor ts, and helps companies maintain their liquidity. It 
does not provide direct lending or policy cover for investments. SERV operates under the Federal 
Law of 16  December  2005 on Swiss Export Risk Insurance (RS  946.10) and the Ordinance of 
25 October  2006 on Swiss Export Risk Insurance (RS  946.101).57 As indicated in the previous 
Review, these provide that:  
• SERV should supplement and not replace insurance provided by the private sector by 
providing cover for risks that the private sector will not cover or for  which there is an 
inadequate supply of insurance;  
 
• SERV should be economically viable and not incur any long -term costs for the Swiss 
Confederation; and  
 
• SERV should comply with foreign policy objectives concerning, inter alia, the environment, 
developmen t, human rights, and democracy.  
3.65.   Under normal circumstances, to qualify for export insurance from SERV, the exporter must 
have a registered office in Switzerland and be listed in the Commercial Register, and the buyer must 
be domiciled outside Switzerland. Furthermore, the goods or services being exported must be of 
Swiss origin or, in most cases, have a total foreign content of no more than 50%. However, there 
are exceptions stated in the Ordinance (Article  3) for which lower Swiss content is allowed, for 
example, if the Swiss content is an essential part of the product or service, a newly developed 
product is exported, or a new market entered.  
3.66.   In April  2020, in response to the COVID -19 pandemic, SERV temporarily simplified its internal 
processes for applica tions for export transactions until the end of the Q1  2021. It also accepted 
applications for export transactions with a maximum risk duration of up to 24 months to EU member 
States, Australia, Iceland, Japan, Canada, New  Zealand, Norway, and the United  States, which were 
 
55 S-GE, Network .  
56 FOCBS, Processing Traffic . Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/information -companies/exempt ions--reliefs --preferential -tariffs -and-e
xport -contributio/importation -into-switzerland/processing -traffic.html . 
57 RS 946.10 and RS  946.101.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 77 - 
 
 declared temporarily "non -marketable" for private -sector providers.58 As indicated by the 
authorities, for these "non -marketable" risks, an insurance offer from SERV with premiums in line 
with the market is possible on an exceptional basis  if the policyholder can submit two refusals from 
private export credit insurers.59 
3.67.   Further support measures were introduced on 1  September  2020 through a temporary 
amendment to the SERV Ordinance with a view to helping Swiss exporters deal quickly and eas ily 
with their insurance products.60 Previously SERV could only increase coverage rates for counter 
guarantees and working capital insurance upon justified request.61 This justified request requirement 
was removed, and the following applies: a maximum coverage rate of the working capital ins urance 
of 95% and a maximum coverage of the counter guarantee of 100%. Previously the normal coverage 
rate was 80% for working capital insurance and 90% for counter guarantee insurance.  Additionally, 
the above -mentioned threshold of 50% of Swiss value -added of the total order value has been 
liberalized to 20% and export transactions with a Swiss value -added of less than 20% can still be 
insured if it is proven that the insurance complies with the objectives and principles of SERV's 
business policy. These me asures will be terminated on 31  December  2022.62 
3.68.   Insurance products available from SERV  are set out in Table  3.13. SERV continues to offer 
multi-buyer insurance, which allows an association to combine and insure the exports of several of 
its Swiss members to various foreign buyers; according to the authorities, this option is currently 
being used by members of the Association of Science Industries.   
Table 3.13 Export finance, insurance, and guarantee products a vailable from SERV, 2021  
Products  Cover 
ratio  Risks covered  
Exporters    
Supplier credit insurance  95% Political, transfer, force majeure , commercial  
Pre-shipment risk insurance  95% Political, commercial  
Contract bond insurance  95% Political, force majeure  
Counter guarantee  100%  Non-payment of the institution granting the contract bond  
Confiscation risk insurance  95% Political, force majeure  
Global insurance for members of the 
science industries  95% Political, transfer,  force maje ure, commercial  
Financial institutions    
Working capital insurance  95% Non-payment by exporter to financial institution  
Buyer credit insurance  95% Political, transfer, force majeure , commercial  
Letter of credit confirmation 
insurance  95% Political, transfer, force majeure , commercial  
Refinancing guarantee  100%  Non-payment of the institution granting the export credit  
Source:  SERV, Products for Exporters . Viewed at: 
https://www.serv -ch.com/en/products/products -for-exporters/ ; and Products for Financial 
Institutions . Viewed at: https://www.serv -ch.com/en/products/productfinancing/ . 
3.69.   SERV's net exposure has continued to increase steadily year -on-year from CHF  8,258  million 
at end -2017 to CHF  8,971  million at end -2020. Until 2020, SERV made an operating profit in all 
years except 2011 (a loss of CHF  55 million) and 2020 (a loss of CHF  81.5 million).63 New figures 
are published on a yearly basis, usually in April.  
 
58 SERV (2020), "Measures Due to the COVID -19 Pandemic", 17  April. Viewed at: 
https://www.serv -ch.com/organisation/news/detail/article/massnahmen -aufgrund -der-covid-19-pandemie . 
59 SERV (2021), Subsidiarity , version 7.5, 2  December.  
60 RO 2020 3599.  
61 A coun ter guarantee protects the bond -issuing bank against the risk that the exporter will be unable 
or unwilling to pay if the contract bond is called. Working capital insurance covers a working capital loan for a 
Swiss company's export that has been insured by  SERV. It protects the financial institution providing credit 
against insolvency or unwillingness to pay on the part of the exporter. SERV, Glossary . Viewed at: 
https://www.serv -ch.com/en/glossary/ . 
62 SERV. Viewed at: 
https://www.serv -ch.com/organisation/thema/detail/article/massnahmen -zur-unterstuetzung -der-schweizer -ex
portwirtschaft/ . 
63 SERV, Annual Reports  (2018 -20).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 78 - 
 
 3.70.   In Liechtenstein, all export finance, insurance, and guarantee facilities are only provided by 
the private sector. Companies based in Liechtenstein do not have access to SERV's products.  
3.3  Measures Affecting Production and Trade  
3.3.1   Taxation and incentives  
3.3.1.1   Corporate income tax  
3.71.   In Switzerland, corporate income tax is levied at the federal, cantonal, and communal levels.64 
Since the last Review, the federal tax has remained unchanged, at a flat rate of 8.5% on profits 
after tax. In contrast, noticeable changes occurred at the cantonal level with corporate income taxe s 
having dropped in all but three cantons since 2017. In 2017, total corporate income tax (federal + 
cantonal + communal) on pre -tax profit ranged from 12.32% in Lucerne to 24.16% in Geneva.65 In 
2021, the lowest rate of 11.85% applied in Zug, and the high est in Bern at 21.04%. The cantons' 
average of 14.87% is among the lowest in Europe and is very competitive in international 
comparisons.66  
3.72.   The Federal Act of 17  January  2018 on Tax Reform and AHV Financing (TRAF) (FF 2018 6077) 
entered into force on 1 January  202067, after being approved by referendum in 2019 (Table  2.1). 
Under the new law, previous tax privileges for companies operating mostly abroad (different 
treatment of domestic and foreign revenue) were abolished and all companies will abide by the same 
taxation rule applied in their respective canton. The reform, meant to ensure that the Swiss tax 
system complies with international standards, was proposed to the popular vote after the rejection 
in February  2017 of a previous version (Corporate T ax Reform III68). Thanks to the removal of 
preferential tax regimes no longer accepted internationally, and the introduction of a new set of 
internationally accepted rules, the European  Union withdrew Switzerland from its taxation grey list.69 
The TRAF als o includes a special tax deduction for companies called the patent box, whereby a 
maximum of 90% of profits from patents and comparable rights can be excluded from taxation. 
Some cantons chose to set much lower deduction rates (10% in Geneva). Further tax reductions for 
expenditure on research and development can be granted by the cantons, but these special 
arrangements can only be applied to the extent that at least 30% of a company's profits are taxed.70 
3.73.   The recent dynamic of more intense competition betw een cantons to attract more 
corporations through lower taxes and new incentives will likely be hindered by the future 
implementation of the international corporate tax agreement.71 In July  2021, a representative from 
the Swiss Government noted that the ref orm was not advantageous for the country, but that 
Switzerland could not prevent it from occurring.72 The OECD framework73, agreed on in 2021, plans 
a minimum taxation rate of 15% for multinational enterprises whose annual revenues exceed 
EUR 750 million ( approximately CHF  780 million). As the OECD also defines the tax base, all cantons 
could be affected by this change. The date of 1  January  2024 has been proposed by the Federal 
 
64 Cantons retain the right to allow their communes to levy taxes. Federal Department of Finance, Swiss 
Tax System . Viewed at: 
https://www.efd.admin.ch/efd/en/home/steuern/steuern -national/the -swiss -tax-system.html . 
65 KPMG (2018), Clarity on Swiss Taxes , p. 7.  
66 Data for 2021. KPMG (2018), Clarity on Swiss Taxes , pp. 8, 14-15.  
67 AHV is the old -age insurance system.  
68 This previous version did not include social compensation measures for the financing of the AHV as 
did the TRAF.  
69 Mission of Switzerland to the European  Union, Tax Policy – In Line with International Standards . 
Viewed at: https://www.eda.admin.ch/missions/mission -eu-brussels/en/home/key -issues/tax -policy.html ; and 
European Commission, Evolution of EU List of Tax Havens . Viewed at: 
https://ec.europa.eu/taxation_customs/system/files/2021 -02/eu_list_update_22_02_2021_en.pdf .  
70 Federal Department of Finance, Swiss Tax System . Viewed at: 
https://www.efd.admin.ch/efd/en/home/steuern/steuern -national/the -swiss -tax-system.html . 
71 Blick (2021), "Ueli Maurer Affirms It: Switzerland Must Raise Its Taxes", 17 October.  
72 RTS (2021), "Interview of Ueli Maurer: We Cannot Prevent Taxation Reform of Multinationals", 
11 July. 
73 OECD (2021), Statement on a Two -Pillar Solution to Address the Tax Challenges Arising from the 
Digitalisation of the Economy , 1 July.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 79 - 
 
 Council for implementation in Switzerland.74 In this context, potential measures proposed by the 
Government to maintain the attractiveness of the country for companies are a reform of the 
withholding tax, and the introduction of a tonnage tax.75 Under the Economic Transition Strategy 
COVID -19 establ ished by the Federal Council in June  2021, the third phase on "revitalization" also 
details measures to strengthen the attractiveness of Switzerland as a business location.76  
3.74.   Liechtenstein applies a flat rate of 12.5% for all legal persons.77 Since 1  January 2017, a 
minimum corporate income tax of CHF  1,800 applies if total assets of an operating entity exceeded 
CHF 500,000 during the last three years.78 Public undertakings not engaged in economic activities, 
occupational pension schemes, and legal persons  and special endowments of assets without legal 
personality that irrevocably and exclusively pursue charitable purposes of a non -profit making basis 
are tax exempt (Tax Act, Article  4). Changes to the Tax Act were introduced in 2018 to comply with 
EU regul ations, based on the criteria of the EU Code of Conduct Group (Business Taxation). They 
concerned the introduction of anti -avoidance rules regarding dividends and capital gains, the 
abolition of the deductibility of capital losses and depreciations from sh areholdings.79 Subsequent to 
these changes, the European  Union announced in October  2018 that Liechtenstein had completed 
the necessary reforms to comply with the EU good principles for taxation and that it was removed 
from the EU grey list.80 Since then, no change regarding corporate income tax has been introduced. 
After joining the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting in 2016, 
Liechtenstein abolished the intellectual property (IP) box regime with a grandfathering period that 
ended on 31  December  2020 (Section  3.3.7.2). The authorities indicate that the end of the IP box 
regime had only a limited impact on businesses. The 2017 -19 annual peer reviews of the Forum on 
Harmful Tax Practices did not make any further recommendation for  Liechtenstein. According to the 
authorities, the impact of the future implementation of the OECD taxation framework will not be 
insignificant, but should remain limited thanks to a proactive implementation to ensure certainty 
and stability for companies.  
3.75.   Table  3.14 presents Liechtenstein's corporate and other selected taxes, which have remained 
unchanged since the last Review, with the exception of taxes on private asset structures, which were 
increased from CHF  1,200 annually to CHF  1,800 in 2017.  
Table 3.14 Liechtenstein corporate taxes and other selected taxes  
Tax base  Standard tax rates  
Corporate income tax (annual): annual net income  12.5% (minimum CHF 1,800)  
Real-estate capital gains tax (per sale of real estate 
located in Liechtenstein)  Maximum 24%  
Private asset structuresa CHF 1,800 per annum  
Formation tax: formation of share capital (applicable 
only when the Swiss provisions on stamp duties do 
not apply)  Capital > CHF 1,000,000: 1%  
Capital > CH F 5,000,000: 0.5%  
Capital > CHF 10,000,000: 0.3%  
a Asset management and asset protection structures (PVS in German).  
Source:  Information provided by the authorities.  
3.3.1.2   Indirect taxes  
3.76.   Several indirect taxes are levied in Switzerland and Liechtenstein. Most tax revenues derive 
from the VAT, which applies uniformly in the common area formed by the two countries81, and 
 
74 Federal Council (2022), "Implementation of OECD Minimum Tax Rate by Constitutional Amendment", 
13 January. Viewed at: 
https://www.admin.ch/gov/en/start/document ation/media -releases.msg -id-86783.html .  
75 Potential measures also included the abolition of the stamp duty, which was refused by the Swiss 
people in February 2022. The authorities indicate that some of these measures were already considered prior 
to the O ECD taxation framework and are not a direct consequence, although their relevance will be even 
stronger once the framework is implemented.  
76 Information provided by the authorities.  
77 Tax Act of 23  September  2010 (LR 640.0), Articles 44 and 61.  
78 PwC, Liechtenstein: Corporate – Taxes on Corporate Income . 
79 Liechtenstein Legal Gazette No.  147/2018.  
80 European Commission, Evolution of EU List of Tax Havens .  
81 The valleys of Samnaun and Sampuoir are not part of the customs territory of Switzerland, and the  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 80 - 
 
 represents 30% of Switzerland's revenues82, and 23% of Liechtenstein's central government 
revenues.83 Switzerland and Liechtenstein apply similar excise taxes on products causing a risk to 
human health or to the environment, which are collected at the border by the Swiss authorities.84 
Since the last Review in 2017, there have been a few changes notably r elated to taxes levied for 
environmental reasons.  
3.77.   The different indirect taxes collected on importation by the FCA (now the FOCBS) totalled 
CHF 21.8 billion in 2020 (net of tax refunds). About half comes from the VAT. Among excise taxes 
collected on import ation, the petroleum tax and the tobacco tax yielded the most revenues.85  
3.3.1.2.1   VAT 
3.78.   The VAT, introduced in 1995, is levied on the supply of goods and services on the Swiss 
territory, as well as on imported goods and services.86 Domestic companies are liable to pay the tax 
as soon as their revenues (domestically and abroad combined) from supplies that are not exempted 
from the tax without credit exceed CHF  100,000 annually.87 The tax liability of foreign companies 
also requires the provision of services or suppli es on the Swiss territory. The Switzerland and 
Liechtenstein VAT rate is lower than in any EU country88, with a standard rate of 7.7%. Lower rates 
are applied to accommodation services (3.7%, special rate) and the supply of necessity goods 
(2.5%, reduced r ate).89 The standard and special rates were reduced on 1  January  2018 from 8% 
and 3.8%, respectively. The adjustment of the standard tax rate resulted from the removal in 2017 
of the additional levy used to fund the disability insurance ( -0.4 percentage po ints) and the 
introduction of a temporary funding of railway infrastructure through VAT running for the period 
2018-30 (+0.1  percentage point).90 
3.79.   In January  2019, a further revision of the VAT system entered into force concerning mail order 
companies. If a  mail order company generates a turnover of at least CHF  100,000 from supplies of 
goods imported into the Swiss territory that are exempted from import tax due to the insignificant 
tax amount (less than CHF  5, so-called small consignments), its deliveries will be treated as domestic 
supplies and the mail order company becomes liable to pay the domestic VAT on all consignments 
imported into the Swiss territory.91 Therefore, foreign mail order companies have to pay the VAT on 
their supplies regardless of the selling price, as do Swiss companies, and there is no longer a 
VAT-induced competitive disadvantage for Swiss companies.92 Reportedly, this measure had a 
limited effect, as only a few foreign mail order companies put themselves forward for registration. 
Thus, on 24  September  2021, the Federal Council proposed a new change to the system that will 
make online platforms liable to pay the tax on all sales of goods they facilitate. Thus, the platform 
(deemed supplier) on which the sale has been concluded, and no t the seller of the goods (underlying 
seller), has to impose the VAT.93 Foreign companies not using a platform, and which meet the 
CHF 100,000 threshold, will still remain liable to pay the VAT.94 
 
VAT Law is therefore only applied to services. However, the communes of Samnaun and Valsot must 
compensate the federal government for the loss of revenue fr om VAT not being applied to goods. See: Law on 
the Value -Added Tax, Article  4. 
82 Federal Department of Finance, Budget 2022 . Viewed at: https://bit.ly/3pZaJyi .  
83 Calculation based on Liechtenstein Office of Statistic s for 2020. Viewed at: 
http://etab.llv.li/PXWeb/pxweb/en/eTab/eTab__10%20Public%20finance/?rxid=3dd8519a -208a-4005-82aa-bb
7645379e 75.  
84 Information provided by the authorities.  
85 Information provided by the authorities.  
86 Electronically supplied services, such as the electronic provision of websites, software, or music or 
films, are included among those subjected to the VAT (VAT Or dinance, Article  10). 
87 The turnover threshold for non -profit sport or cultural associations and charitable institutions is 
CHF 150,000 from supplies of goods and services, which are not exempt from tax without credit.  
88 S-GE, Fiscalité des entreprises , p. 2. Only Andorra has a lower rate in Europe.  
89 Among them are tap water, food, medication, books and e -books, fertilizers (see complete list in 
Article  25 of the Federal Law of 12 June 2009 on the Value Added Tax (RS  641.20)). In its dispatch of 
24 Septem ber 2021, the Federal Council proposes to include menstrual hygienic products.  
90 Information provided by the authorities.  
91 Information provided by the authorities.  
92 Federal Tax Administration, Mail-Order Trade . Viewed at: 
https://www.estv.admin.ch/estv/en/home/value -added -tax/vat -tax-liability/mail -order -trade.html .  
93 Federal Council, Message concernant la modification de la loi sur la TVA, 24 September  2021.  
94 Information provided by the authorities.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 81 - 
 
 3.80.   Sectors exempted from the tax without credit include, inter alia, healthcare, education and 
training, culture, and some operations in the capital and insurance markets, as well as direct sale of 
agricultural products from farmers (Article  21 of the Ordinance on Value Added Tax). Exemptions 
from the VAT on imports apply, such as on goods imported for temporary admission, some artistic 
works, or energy transported through electric and gas networks (full list in Article  53). Imports of 
gold coins and fine gold, work on gold, and gold for investment purposes are exempt  from the tax 
with credit.95 The direct export of goods is also exempt from the VAT with credit.96 
3.81.   Since January  2021, all Swiss VAT returns should be submitted electronically using the ESTV 
SuisseTax or the VAT Return Easy online platforms (Section  2.4.1) . Upon request, declaration by 
paper form is still possible; the obligation for online submission is expected to be introduced in 
2023.97 In Liechtenstein, VAT returns can be filed electronically via the e -MWST platform.98 
3.3.1.2.2   Excises  
3.82.   Imported and domestically produced motor vehicles are subject to a tax of 4% of the vehicle's 
value in both Switzerland and Liechtenstein.99 The tax applies to commercial vehicles of 
HS Codes  8702 and 8704 with a unit weight not exceeding 1,600  kg used for the transpor t of people 
and merchandise, and on all passenger vehicles (HS Code 8703). Article  12 of the Federal Law of 
21 June 1996 on Motor Vehicles Taxation (RS  641.51) provides that tax exemptions can be granted 
to vehicles that are duty -exempted under specific ci rcumstances, heavy vehicles, or electric vehicles. 
The 4% tax does not apply to heavy vehicles that are taxed according to the Federal Law of 
19 December  1997 on Heavy Vehicles Charge (RS  641.81). Importers of motor vehicles that are 
registered for the fir st time must provide data on the vehicles' CO 2 emissions to the authorities. If 
emissions are above the target limit for the vehicle's kind, importers must pay a fee of CHF  104 per 
additional gramme of CO 2/km.100 
3.83.   Additional motor vehicle taxes can be levied by the cantons under their own rating scales, to 
incentivize the purchase of eco -friendly vehicles and introduce higher rates for the most polluting 
ones.101 While not all cantons apply additional taxes or incentives, some offer large incentives for 
eco-friendly vehicles, which can lead to a substantive change in the taxation of motor vehicles.102 
3.84.   Switzerland and Liechtenstein apply a petroleum tax on crude oil, other mineral oils, natural 
gas, their processed products, and a surtax on engine fuels. Th ese excise taxes are levied on both 
imported and domestically produced goods. Tax rates vary depending on the products and their end 
use.103 Engine fuels used in agriculture, forestry, professional fishing, and licensed transport 
companies benefit from tax reductions.104 Aircraft may be exempt from the tax.105 Receipts of the 
petroleum tax are shared between the Federal Treasury, road transport and aviation infrastructures, 
and agglomeration funds. In 2020, the tax generated 5.9% of all federal receipts.106 
 
95 Ordinance of 27  November  2009 on Value Added Tax (RS  641.201), Articles 44 and 113.  
96 FOCBS, Exportation from Switzerland . Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/information -companies/taxes -and-duties/exportation -from-switzerlan
d.html .  
97 Information provid ed by the authorities.  
98 Access to the online portal can be found at: https://mwst.llv.li/ .  
99 FOCBS , Automobile Tax . Viewed at: 
https://www.bazg.admin.ch/bazg/en/home/information -companies/taxes -and-duties/importation -into-switzerla
nd/automobile -tax.html .  
100 Modification of the ordinance on the reduction of CO 2 emissions of 24  November  2021 
(RO 2021 859).  
101 Touring Club Suisse, Impôt sur les véhicules en Suisse . Viewed at: https://www.tcs.ch/fr/tests -
conseils/conseils/ environnement -mobilite/taxe -automobile -cantons.php . 
102 Information provided by the authorities.  
103 Taxation rates as of 1  January  2022 are available at: 
https://www.ezv.admin.ch/ezv/fr/home/infos -pour-entreprises/impots -et-redevances/importation -en-suisse/ta
xe-sur-le-co_.html.  
104 Law of 21  June 1996 on the Taxation of Mineral Oils (RS  641.61), Article  18. 
105 Law of 21  June 1996 on the Taxation of Mineral Oils (RS  641.61), Article  17. 
106 FOCBS, Impôt sur les huiles minérales . Viewed at: 
https://www.ezv.admin.ch/ezv/fr/home/infos -pour-entreprises/impots -et-redevances/importation -en-suisse/im
pot-sur-les-huiles -minerales.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 82 - 
 
 3.85.   Biofuels, such as bioethanol or vegetable oils, can benefit from full tax relief if they meet 
environmental and social requirements.107 Biofuels must be traceable, and proof provided that their 
production was made on legally obtained land, respecting social no rms, without altering the land, 
and that their production must be overall less harmful to the environment than mineral fuels.108 As 
per the customs union, these provisions also apply in Liechtenstein.109 To compensate tax losses 
due to tax reliefs on biofuel s and to encourage the transition to "greener" fuels,110 the Federal Council 
decided in July  2020 to raise taxes on oil and diesel fuels, while maintaining a low tax burden on 
biofuels until the end of 2023.111 In 2020, biofuels represented 3.7% of total Swi ss fuel consumption, 
unchanged from 2019.112 
3.86.   The CO 2 levy, which entered into force on 1  January  2008, is designed to reduce the use of 
fossil fuels and thus the associated CO 2 emissions. The tax rate was originally set at CHF  12 
per tonne of CO 2, gradually  rising to CHF  60 per tonne in 2014, CHF  84 in 2016, CHF  96 in 2018, 
and reaching the maximum levy established in the legislation of CHF  120 in 2022.113 The rise decided 
in 2021 follows the acknowledgement that CO 2 emissions linked to the use of fuels have only dropped 
by 31% since 1990, below the initial minimum target of 33%. Around two thirds of the revenue from 
the CO 2 levy is redistributed to the population and the economy.114 With one third of the revenue 
(max.  CHF 450 million), the Confederation and the cantons support energy -efficient renovations and 
renewable heating energy through the buildings programme. Another CHF  25 million is allocated to 
the technology fund for the promotion of innovative companies. As a result of the rejection of the 
proposed reform of the Federal Act of 23  December  2011 on the Reduction of Greenhouse Gas 
Emissions (RS  641.71) (CO 2 Law), the tax cannot currently be raised beyond CHF  120. Following a 
partial revision of the CO 2 Law based on Parliamentary Initiative 21.477 ("Extensions of the 
reduction targets in the current CO 2 Law"), Swiss installation operators in certain sectors with a 
reduction commitment will remain exempt from the CO 2 levy. Under the new proposal for a revised 
CO2 law put under consultation by the Federal Council in December  2021 for the period 2025 -2030, 
all installation operators will be exempt from the tax if they commit to reduce their emissions from 
fuels and demonstrate how they intend to decrease these emissi ons down to zero in the long term.115 
Operators of installations participating in the Swiss Emissions Trading Scheme (ETS) can also 
continue to apply for a tax exemption. The ETS is regulated for an unlimited period of time and was 
not affected by the rejec tion of the revised CO 2 Act in 2021 (further information about the rejected 
revision of the CO 2 Law and its consequences can be found in Section  4.2.2.1.2.1 ). 
3.87.   In 2021, the Swiss people rejected the proposed reform of the Federal Act of 
23 December  2011 on the Reduction of Greenhouse Gas Emissions (RS  641.71) (CO 2 Act). Because 
of the "no" vote, the tax cannot currently be raised beyond CHF  120. Following a partial revision of 
the CO 2 Act based on Parliamentary Initiative 21.477 ("Extensions of the reduction  targets in the 
current CO 2 Act"), the obligation for fuel importers to compensate part of their CO 2 emissions by 
investing in projects for climate protection will be maintained, as well as the objective of a 50% 
reduction of greenhouse gas (GHG) from 1990  levels by 2030.116 The initiative was agreed upon by 
both chambers of the Federal Assembly in December  2021 in order to provide for a legal basis to 
 
107 FOCBS, Biofuels . Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/information -companies/taxes -and-duties/ importation -into-switzerland
/petroleum -tax/biofuels.html .  
108 Law of 21  June 1996 on the Taxation of Mineral Oils (RS  641.61), Article  12b-12c. 
109 Office of Environment (2019), Liechtenstein's Greenhouse Gas Inventory 1990 -2017, p. 309.  
110 Federal Council (2 020), "Le Conseil fédéral augmente les taux d'impôt de l'essence et de l'huile diesel 
de 3,7  centimes par litre", 1  July. Viewed at: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-79684.html .  
111 Ordinance of 20 November 1996 on the Taxation of Mineral Oils (RS 641.611).  
112 Federal Council (2021), "Faible baisse des émissions de CO2 dues aux combustibles : hausse 
automatique de la taxe en 2022", 7  July. Viewed at: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-84335.html .  
113 Federal Council (2021), "Fa ible baisse des émissions de CO2 dues aux combustibles : hausse 
automatique de la taxe en 2022", 7  July.  
114 Further information on the redistribution of the tax to the economy can be found in French on the 
FOEN website at: https://bit.ly/3r6X4ph . 
115 Federal Council (2021), "Politique climatique : le Conseil fédéral met la loi révisée sur le CO 2 en 
consultation", December. Viewed at: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-86492.html .  
116 As previously mentioned, the Federal Council has proposed for consultation a modification of the 
revised CO 2 Law for the period 2025 -30, which was still under consu ltation at the time of writing and 
maintains, inter alia, these two objectives.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 83 - 
 
 pursue the objectives of reductions of the Government and entered into force in 2022 for the period 
from 1  January  2022 to end -2024 (further information about the rejected revision of the CO 2 Act 
and its consequences can be found in Section  4.2.2.1.2.1 ). 
3.88.   In Liechtenstein, CO 2 levy revenues collected from households are not redistributed in the 
same manne r as they are in Switzerland, but are used as state income for the general state budget. 
Among revenues collected from the industries, one third is used for environmental policy measures 
such as for public transportation, and two thirds are redistributed t o the companies in proportion to 
the payroll of their employees.  The rejected reform of the CO 2 Law by the Swiss people ended the 
planned revision of the corresponding Liechtenstein CO 2 Law. Even though Swiss environmental 
taxes and levies are not immediat ely applicable in Liechtenstein, they are nonetheless synchronized 
as per the customs union.117 Liechtenstein thus applies its own legislation on environmental taxes 
and levies; however, rules and levels of taxation are identical to those applied by Switzer land. The 
authorities indicate that Liechtenstein's target of a 40% reduction in GHG emissions from 1990 by 
2030, as per the Paris Agreement, remains in place. The Liechtenstein authorities indicate that the 
corresponding legal basis in Liechtenstein's law  of Swiss Parliamentary Initiative 21.477 should be 
published in April  2022.  
3.89.   An incentive tax on volatile organic compounds (VOCs) was introduced in 2000 to protect the 
environment by encouraging a diminution of VOC emissions. The tax is levied by Switzerl and and 
Liechtenstein on both imports and domestic production. Since 2003, the tax rate has been set at 
CHF 3 per VOC kilogram. The tax is refunded upon exportation. Not all VOC products are subject to 
the tax: a positive list of substances and a positive list of products detail the products to which the 
tax applies.118 Substances and products containing less than 3% of VOC are exempted. Companies 
may be exempted from the tax provided that their stationary installation emits at least 50% less 
VOCs than the l imit allowed for similar installations, the off -gas purification installation is available 
more than 95% of the time, and emissions are reduced using the best available technology.119 During 
the COVID -19 pandemic, the Swiss authorities waived the tax on surface disinfectant until the end 
of 2021.120 The authorities estimate that since the inception of the VOC levy, emissions have declined 
by more than 40%, and currently represent almost 80,000 tonnes annually.121 A study on VOC 
emissions from 1995 to 2019 h ighlighted that the reduction is mainly attributable to the industry 
sector subject to the tax and to transport not subject to the tax.122 As for the CO 2 tax, the proceeds 
from the tax are redistributed to the population through the health insurance compani es 
(CHF 114 million in 2021123). 
3.90.   The tobacco tax is levied in Switzerland and Liechtenstein on imported and domestically 
produced cigarettes, cigars, and other tobacco products. In 2020, revenues from the tobacco tax 
amounted to CHF  2.1 billion.124 For cigarettes, the compound rate amounts to CHF  118.32 per 1,000 
cigarettes plus 25% ad valorem  of the retail selling price.125 According to 2019 data, the tobacco tax 
represented 52.5% of the price of the most commonly bought cigarette packets. Revenues are used 
to fund the AVS/AI126, and in addition, 0.3% of the price goes to the Tobacco Control Fund and 0.3% 
to the Domestic Tobacco Financing Fund.127 Noting the already high price of cigarettes in Switzerland 
compared to in neighbouring countries, the Fede ral Council decided in 2016 not to raise the tax 
further.128 In November  2020, the Federal Assembly tasked the Federal Council with preparing the 
 
117 For more information on environmental levies, see treaties LGBI 2010 Nr. 12 and LGBI 2010 Nr.  13.  
118 Available in Annex 1 and Annex 2 to the Ordinance of 12  November  1997 on the Incentive Tax on 
Volatile Organic Compounds (RS  814.018).  
119 Information prov ided by the authorities.  
120 FOCBS, Incentive Fee on Volatile Organic Compounds (VOC).  Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/information -companies/taxes -and-duties/importation -into-switzerland
/incentive -fee-on-volatile -organic -compounds --voc-.html. 
121 FOEN, VOC Incentive Tax . Viewed at: 
https://www.bafu.admin.ch/bafu/fr/home/themes/air/info -specialistes/mesures -de-protection -de-l-air/taxe -d_i
ncitation -sur-les-cov.html . 
122 FOEN, Aperçu des émissions de COV 2019.  
123 Information provided by the authorities.  
124 Information provided by the authorities.  
125 Federal Customs Administration, Tableau de calcul pour les cigarettes . Viewed at: 
https://bit.ly/3pqL5SK .  
126 Old-age, survivors, and disability federal insurance and invalidity insurance.  
127 Federal Office of Public Health, Les prix élevés font baisser la consommation . Viewed at: 
https://bit.ly/3pt6zhO .  
128 Fedlex, Message relatif à la modification de la loi sur l'imposition du tabac .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 84 - 
 
 future legislation for the taxation of e -cigarettes.129 A revised tobacco law, if not revoked, should 
enter into  force in 2023.130  
3.91.   According to Article  17 of the Ordinance of 15  September  2017 on Alcohol (RS  680.11), 
taxation depends on the alcohol component of beverages. Table  3.15 details the different applicable 
taxation rates in Switzerland and Liechtenstein, wh ich have remained unchanged since the last 
Review and apply to domestic and imported goods.131 Foodstuffs containing alcohol are taxed at the 
rate applicable to the alcoholic degree therein.132 Beverages whose alcohol component is inferior to 
1.2% are tax ex empt. Products with alcohol obtained through fermentation such as wines, ciders, 
fruit wines with a degree of alcohol inferior to 15%, or natural wine made of fresh grapes with 18% 
maximum of alcohol, provided that they are not added to distilled beverages , as well as bioethanol 
used as fuel, are tax exempt. The tax levy can be refunded upon exportation.133 Beers are subject 
to their own regulation and taxation under Federal Law of 6  October  2006 on Beer Taxation 
(RS 441.411). Small producers can benefit fro m a reduction of the tax rate.134 Ten per  cent of the 
revenues are directed to the cantons, which use them for activities combating the roots and 
consequences of alcoholism, while the rest is directed to the AVS.  
Table 3.15 Taxation of alcoholic beverages  
Product  Unit Tax rate 
(CHF)  Legal basis  Responsible agency  
Distilled spirits  LPA 29.00  RS 680 Federal Office for 
Customs and Border 
Security  (FOCBS)  
Sweet wine and vermoutha LPA 14.50  RS 680 FOCBS  
Alcopopsb LPA 116.00  RS 680 FOCBS  
Ethanol for consumption  LPA 29.00  RS 680 FOCBS  
Ethanol for industrial purposes  n.a. 0 RS 680 FOCBS  
Light beer (up to 10.0° Plato)  hl 16.88  RS 641.411, RS  817.0  FOCBS  
Normal and special beer (10.1° 
Plato to 14.0° Plato)  hl 25.32  RS 641.411, RS  817.0  FOCBS  
Strong beer (over 14° Plato)  hl 33.76  RS 641.411, RS  817.0  FOCBS  
Natural wine up to 18% alcohol 
by volume  n.a. 0 RS 817.0  Federal Food Safety and 
Veterinary Office  
a Including  wines made from fruit, berries, and other raw materials (15% to 22% alcoholic strength by 
volume; ex HS 2206); sweet wines, specialities, and mistelles (alcoholic strength by volume not 
exceeding 22% vol.; ex HS 2204.2150 and 2204.2950); and vermouths and  other wines of fresh 
grapes (alcoholic strength by volume not exceeding 22% vol.; HS 2205). Sweet wines with a 
minimum sugar content of 45  g/l and 15% to 18% alcoholic strength by volume are not subject to 
monopoly duties.  
b Sweetened alcoholic beverages  consisting of a mixture of spirits and lemonades, fruit juices, or other 
alcoholic or non -alcoholic beverages. Alcopops, because of the risk of consumption for the youth, is 
taxed at the high rate of CHF  116. 
Note:  LPA refers to litre of pure alcohol, and  hl refers to hectolitre.  
Source:  FOCBS , Taxation of Alcoholic Beverages .  
3.3.1.3   Incentives and other assistance  
3.3.1.3.1   Switzerland  
3.92.   Federal Law of 5  October  1990 on Financial Aid and Compensation (RS  616.1) establishes a 
framework for the granting of subsidies at the federal level. Subsidies can be granted when: (i)  the 
 
129 Federal Assembly , Imposition des cigarettes électroniques , 13 August  2019. Viewed at: 
https://www.parlament.ch/fr/ratsbetrieb/suche -curia-vista/geschaeft?AffairId=20193958 . 
130 RTS (2021), "La vente de cigarettes à des mineurs sera interdite dans toute la Suisse", 
22 September.  
131 FOCBS, Taxation of Alcoholic Beverages . Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/topics/alcohol/steuersaetze.html .  
132 Federal Law of 21  June 1932 on Alcohol (RS  680), Article  29. 
133 FOCBS , Exportation . Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/topics/alcohol/spirituosen_export.html .  
134 Ordinance on Alcohol , Article  24, and Federal Law of 6  October  2006 on Beer Taxation (RS  441.411) , 
Article  14.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 85 - 
 
 targeted activities are in the interest of the Confederation; (ii)  they cannot be accomplished by the 
cantons alone without the support of the Confederation; (iii)  there is no other funding source 
available; and (iv)  no other measure is more opportune.135 The dedicated amount must be 
proportionate to the interest of the b eneficiaries and to the interest of the Confederation.136 The 
cantons can add a complementary support.137 Subsidies can only be granted upon demand.138  
3.93.   Article  5 of the Law requires the Federal Council to review periodically, i.e. at least every six 
years, subsidies accorded by the Federal Government with a focus on the efficiency and effectiveness 
of individual programmes. Since 2014, each year, one or two of the seven federal departments 
review their subsidies. The procedure leads to a six -year cycl e, during which all subsidies granted 
by the Federal Government are examined. The Federal Council presents the results of each year's 
review in its financial statements. The review is divided into three components: summary of the 
main characteristics, crit ical evaluation, and potential measures to be implemented. A control of the 
implementation of proposed measures takes place every three years.139 
3.94.   In 2020, the Confederation granted CHF  57 billion in subsidies (not including tax exemptions), 
representing 65%  of total government spending. This rate is higher than in previous years (59% in 
2019140) due to increased spending to mitigate the impact of the COVID -19 pandemic on the 
economy.141 Compared to CHF 37 billion in 2015, total subsidies increased substantiall y during the 
period under review.142 Fifty-seven per  cent of subsidies were dedicated to social security, followed 
by training and research (13%) and transport (12%).  
3.95.   Switzerland's notifications to the WTO pursuant to Article  XVI:1 of the GATT  1994 and 
Article 25 of the SCM  Agreement provide information on subsidies accorded to agriculture and 
industry and can be found for the years 2016 to 2018 in WTO documents G/SCM/N/315/CHE and 
G/SCM/N/343/CHE. No data were available at the time of writing for 2019, 202 0, and 2021, and 
some data for 2016 -18 on the amounts budgeted per type of subsidies were also missing (Table  2.4). 
Liechtenstein notified in 2021 that for the period 2017 -20 it did not grant or maintain within its 
territory any subsidy within the meaning of Article  1.1 of the SCM  Agreement, which is specific within 
the meaning of Article  2 of the Agreement, or which operates directly or indirectly to increase exports 
from or reduce imports into its territory within the meaning of Article  XVI:1 of the GATT  1994.143  
3.96.   Switzerland continues to implement the 2006 Federal Law on Regional Policy. Under the 
framework of the Law, the New Regional Policy (NRP) programme, which started in 2008, aims at 
reducing regional disparities by creating or sustaining jobs in geo graphically targeted areas that are 
considered structurally weak (i.e.  having a low level of structural, economic, and social 
development). The NRP's perimeter includes areas in rural territory, in the mountains, or near the 
border, where about half of the  population lives. The authorities indicate that the perimeter can be 
reassessed if needed. The NRP can provide support in the form of grants and loans at reduced or 
zero-rate.144 The two main priorities of the 2016 -23 NRP phase are to promote industry and tourism, 
which benefited from 80% of grants distributed by the Confederation in 2020.145 For the period 
2008-21, average annual expenses reached CHF  38.7 million in loans and CHF  32 million in 
grants.146 Support provided by the NRP is shared between the Conf ederation and the cantons. Within 
the scope of the NRP programme, the Confederation may also grant tax relief on direct federal tax. 
Regulated under the Ordinance of 3  June 2016 on the Granting of Tax Relief within the Scope of the 
Regional Policy (SR  901.022), tax relief can apply to industrial companies and production -related 
service providers for projects that create new jobs in the company or restructure existing jobs. Tax 
 
135 Federal Law on Financial Aid and Compensation, Article  6. 
136 Federal Law on Financial Aid and Compensation, Article  7. 
137 Federal Law on Financial Aid and Compensation, Article  8. 
138 Federal Law on Financial Aid and Compensation, Article  15a. 
139 Federal Administration of Finance, Subventions, Examen des subventions. Viewed at: 
https://www.efv.admin.ch/efv/fr/home/themen/finanzpolitik_grundlagen/subv_subvueberpruef.html . 
140 Federal Administration of Finance, Subventions, Examen des subventions .  
141 Federal Department of Finance , Subventions de la Confédération en 2020 . Viewed at: 
https://bit.ly/2ZfAOOt .  
142 WTO document WT/TPR/S/355/Rev.1, 22  September  2017, Section  3.3.2.  
143 WTO document G/SCM/N/343/LIE, 26 August 2021.  
144 Regiosuisse, Nouvelle politique régionale.  Viewed at: https://regiosuisse.ch/fr/aides -financieres -
developpement -regional?id=5&name=Nouvelle -politique -r%C3%A9gionale --NPR-. 
145 Regiosuisse,  Contenu et priorités . Viewed at: https://regiosuisse.ch/fr/contenus -priorites -promotion . 
146 Grants are given for innovation projects; to create synergies; and to operate a knowledge system, 
fund studies, or monitor the NRP. Information provided by the authorit ies. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 86 - 
 
 relief support is more restricted than grants and loans support, and only targets  areas in which about 
10% of the population  lives. On average, during the period 2011 -20, six projects were approved 
each year for federal tax relief.147  
3.97.   In addition to support provided under the NRP by cantons, partial or full corporate tax credits 
are of fered on a case -by-case basis, depending on the cantons, for the creation or expansion of 
projects with particular local economic relevance.148 These tax -break incentives can be offered by 
the canton or the commune for up to 10  years.149 In this context, the  creation of at least 10 -20 new 
jobs is required and that the economic activity created is lasting.  
3.98.   Mandated by SECO, regiosuisse is Switzerland's network for regional development. Created 
in 2008 to accompany the implementation of the NPR, it now goes bey ond the NRP and supports the 
framework of cohesive regional development. Regiosuisse does not provide financial support, but 
has created an online tool to identify available support schemes in partnership with SECO, the 
Federal Office for Spatial Developme nt, the F OAG, and the Federal Office for the Environment 
(FOEN). Support is available in the form of: grants, loans, guarantee, tax reduction and indemnity.  
3.99.   Cross -border projects can benefit from financing in order to reinforce economic cooperation 
betwee n Switzerland and EU countries. Three programmes are offered in partnership with the 
European Union: Interreg (for innovative and sustainable projects in border regions and for 
transnational cooperation in larger regions, e.g. in the Alpine space), URBACT (targeted specifically 
towards urban development), and ESPON (the European Territorial Observatory Network targeting 
territorial development and spatial planning).150  
3.100.   Federal Law of 25  June 1976 on the Granting of Credit Guarantees and Loan Interest Servic e 
Contributions in Mountain Regions and Rural Areas in General (RS  901.2) was revoked in 
December  2018151, as its purpose had been replaced by Federal Law of October 2006 on Financial 
Aid for Guarantee Organizations for SMEs (RS  951.25), which sets the fram ework for the four loan 
guarantee cooperatives that currently exist.152 The revised guarantee cap increased from 
CHF 500,000 to CHF 1 million. The Confederation insures up to 65% of the associated risk of loss in 
assisting promising SMEs in obtaining bank l oans. In granting its aid, the Confederation considers 
the specific geographic needs, the availability of guarantees to all Switzerland, the gender aspect, 
and the complementarity of guarantees with market offers.153  
3.101.   In 2018, the Commission for Technology and Innovation was replaced by the Swiss 
Innovation Agency (Innosuisse), which is owned by the Confederation. Its aim is to foster 
science -based innovation beneficial for the economy and society. Innosuisse, inter alia, offers 
funding opportunit ies for science -based innovation projects, provides training and coaching to 
support entrepreneurial thinking and help SMEs start their innovation projects, supports networks 
and events in key innovation fields, and helps companies work together across bor ders and gain a 
foothold in the international market. From January 2021 to January 2023, Innosuisse also hosts the 
Swiss Innovation Power programme, which is meant to support science -based innovation in the 
context of the COVID -19 pandemic and is open to S wiss companies having less than 500 full -time 
equivalents.154  
3.102.   The SECO Start -up Fund (SSF) is a development loan facility established by SECO and 
managed by FINANCEcontact Ltd. The SSF supports Swiss -based start -ups and entrepreneurs with 
operations locate d in emerging markets. The SSF offers loans up to a maximum of CHF  500,000, 
repayable over seven years.155 Projects will be funded if they aim to leverage long -term development 
 
147 Information provided by the authorities.  
148 An example of such incentives for the Canton of Vaud is available here: 
https://www.vd.ch/themes/economie/soutien -aux-entreprises/exoneration -fiscale -temporaire -de-limpot -
cantonal -et-communal -icc/. 
149 S-GE (2020), Handbook for Investors: Switzerland as a Business Location , July, p.  99. 
150 Regiosuisse, Aides financières po ur le développement régional . 
151 FF 2018 7909 .  
152 SECO, Loan Guarantees for SMEs . Viewed at: https://bit.ly/3GiRGEN .  
153 Federal Law of Financial Aid for Guarantee Organizations towards SMEs.  
154 All support programmes by Innosuisse can be found at: 
https://www.innosuisse.ch/inno/en/home.html .  
155 The credit condition s and requirements, as well as the interest rate scale, can be found at: 
https://www.secostartupfund.ch/en/loan -application.html .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 87 - 
 
 opportunities in the targeted area (e.g. employment, new skills, and sustainable production). Since 
its inception in 1997, the SSF has supported 115 start -ups, among which 85 were still active as of 
2020. The Confederation has lent around CHF  31 million through the SSF since its creation.156 
3.103.   In Liechtenstein, only agricultur e receives sector -specific government subsidies 
(Section  4.1). SMEs in every sector can benefit from incentives such as the CHF  15,000 Innosuisse 
"innovation cheque" to pursue research and innovation activities in partnership with universities or 
R&D facil ities based in Switzerland or Liechtenstein. Applications have to be submitted to the Office 
of Economic Affairs and the cheque is transmitted to the research institutions that will work with the 
SME.157 In addition, SMEs can benefit from a "digital cheque"  to develop digital concepts, 
investments or training of staff, and grants to conduct projects for improving their energy efficiency. 
The maximum sum is CHF  60,000 per company (CHF  300,000 at the country level). Promoted 
projects must be implemented in Lie chtenstein, and companies must have been domiciled in 
Liechtenstein for at least five years. In the context of Liechtenstein's CO 2 reduction targets ( -40% 
compared to 1990 by 2030158), the Government provides financial subsidies for renewable energy 
use and  improved building insulation.159 Liechtenstein is part of the EU ETS and appl ies EU directive 
2003/87/EC, which includes optional exclusion of small emitters from the ETS.  
3.3.2   Standards and other technical requirements  
3.104.   In principle, the Confederation has the e xclusive authority for adopting technical 
regulations160, while the cantons are mainly responsible for implementation and market surveillance. 
Federal Law of 6  October  1995 on Technical Barriers to Trade (RS  946.51) indicates that technical 
regulations are drafted in a way that should not hinder trade, are as transparent as possible, and 
require as little administrative burden as necessary. Technical regulations are elaborated by the 
competent entity in coordination with SECO, taking into account existing in ternational standards to 
the extent possible.161 The Federal Council can conclude international agreements to facilitate, 
inter alia, trade and the recognition of conformity assessment results. Liechtenstein follows Swiss 
and the relevant EU technical regul ations, and it does not have its own regulatory mechanism for 
technical regulations.  
3.105.   SECO assumes responsibility, on behalf of the Swiss Government, for implementing the 
WTO Agreement on Technical Barriers to Trade. Any questions concerning Switzerland's 
implementation of the Agreement and requests for consultation should be addressed to SECO, which 
has assigned to the Swiss Information Centre for Technical Rules (switec) the task of setting up and 
managing Switzerland's WTO enquiry point. It provides infor mation on all current and proposed 
technical regulations stemming from the Federal Government, local institutions, or 
non-governmental bodies.162 Switzerland made 54 regular notifications to the Committee on 
Technical Barriers to Trade (TBT Committee) durin g the period 2017 -January  2022 (Table  2.4). 
Switzerland regularly supports specific trade concerns (STCs) in the TBT Committee to raise concerns 
regarding planned or adopted measures of trading partners. Neither Switzerland nor Liechtenstein 
was subject to  an STC during the review period.  
3.106.   Switzerland has concluded an MRA with the European  Union and the EEA/EFTA States (which 
include Liechtenstein). Both Switzerland and the EEA/EFTA States have concluded MRAs with 
 
156 Information provided by the authorities.  
157 Liechten stein Business, Innovation Cheque . Viewed at: 
https://www.liechtenstein -business.li/en/Service -for-entrepreneu rs/After -founding -the-company/financial -supp
ort/innovation -cheque .  
158 Office of Environment (2019), Liechtenstein's Greenhouse Gas Inventory, 1990 -2017, p. 310.  
159 Liechtenstein Business, Promotion of energy efficiency . Viewed at: https://www.liechtenstein -
business.li/en/Service -for-entrepreneurs/After -founding -the-company/financial -support/promotion -of-energy -
efficiency .  
160 Exemptions may apply, such as in the area of construction products or cableway installations, where 
the cantons can regulate specific aspects. Information provided by the authorities.  
161 Federal Law on Technical Barriers to Trade, Article  4. 
162 WTO document G/TBT/2/Add.7/Rev.2, 16  May 2014.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 88 - 
 
 Canada163 and with Turkey.164 Under an MRA, t he importing country will recognize the conformity 
assessment carried out in the exporting country, thus concerned products will benefit from facilitated 
placing of goods on the market. The MRA reduces technical barriers to trade by helping companies 
avoid  duplicate conformity assessments.165 The MRA concluded with the European  Union and the 
EEA/EFTA States in 2002 is based on harmonized technical regulations in 20  sectors, which 
represented around two thirds of the total bilateral trade with the European  Union in 2020.166 The 
Parties maintain a list of all conformity assessment bodies notified and recognized under the 
Agreement.167  
3.107.   While the Switzerland -EU/EEA MRA was updated in 2017 to maintain the mutual market 
access in 11 of its 20 sectors168, the inabilit y to reach agreement on the Swiss -EU institutional 
framework agreement in May  2021 (Section  2.3.2.4) questions the future of the MRA. The Federal 
Council announced that it intends to continue updating the MRA, as it is in both parties' interests to 
sustain  the Agreement.169 Swiss and EU technical regulations for medical devices are fully 
harmonized. Nevertheless, new EU standards for medical devices were introduced in May  2021, and 
the European  Union declined the update of the chapter on medical devices in t he MRA to reflect 
those changes and agree on the trade -facilitating effects. As a result, the MRA no longer covers 
medical devices in accordance with the Medical Devices Regulation (MDR) of the European  Union. 
Medical devices from the European  Union and fr om Switzerland must now comply with regulations 
applicable to third countries to enter both markets.170 
3.108.   An MRA was developed between Switzerland and the United  Kingdom to continue to facilitate 
trade in goods, where possible, following the United  Kingdom's departure from the European  Union. 
It covers 3 of the 20 sectors included in the Switzerland -EU/EEA MRA and replicates the same rights 
and obligations on motor vehicles, good laboratory practices, and good manufacturing practice 
inspection for medicinal pr oducts and batch certification. These product areas were chosen as the 
standards underlying their technical regulations were developed by international organizations to 
which both Switzerland and the United  Kingdom are members.171  
3.109.   Liechtenstein, along with Iceland and Norway, has also concluded an MRA with New  Zealand, 
which entered into force in 2000172, with Australia (2000, an updated version of 2018 has yet to 
enter into force173)174, and with the United  States (2006).175  
3.110.   EU and EEA goods not covered by the EU/EEA MRA can still benefit from facilitated market 
access under the Cassis de Dijon principle. Applied since 2010 by Switzerland and Liechtenstein, the 
 
163 The MRAs between Switzerland and Canada (concluded in 1998) and with the EEA -EFTA States and 
Canada (concluded in 2000) both cover the mutual recognition of conformity assessment results for me dicinal 
products (drugs good manufacturing practice (GMP) compliance certification), medical devices, 
telecommunications terminal equipment, electro -magnetic compatibility, electrical safety, and recreational 
craft.  
164 Under Protocol E of the 1992 EFTA -Turkey FTA, products included are industrial products whose list is 
available at: https://www.efta.int/mra/not -and-acc-conformity .  
165 S-GE (2018), Switzerland as a Production and Trading Hub .  
166 SECO (2021), Trade Statistics on the Swiss -EU Agreement on Mutual Recognition in Relation to 
Conformity Assessment (MRA) – 2020, 23 August.  
167 SECO, MRA Switzerland – EU. Viewed at: https://bit.ly/3jSG6qH .  
168 SECO (2 017), "Actualisation de l 'accord sur la reconnaissance mutuelle des évaluations de la 
conformité", 22  December. Viewed at: 
https://www.seco.admin .ch/seco/fr/home/seco/nsb -news/medienmitteilungen -2017.msg -id-69368.html .  
169 Federal Council (2021), "No Signing of Swiss -EU Institutional Agreement", 26  May. Viewed at: 
https://www.admin.ch/gov/en/start/documentation/media -releases.msg -id-83705.html .  
170 SNV (2021), "Fiche informative sur la rupture des négociations pour un accord -cadre institutionnel 
entre la Suisse et l 'UE".  
171 SECO, MRA Switzerland – UK. View ed at: 
https://www.seco.admin.ch/seco/en /home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Technische_Handelshemmnisse/Mutual_Recognition_Agreement_MRA0/mra_schweiz -uk.html .  
172 Sectors covered: pharmaceuticals (GMPs), medical devices, telecommunications terminal  equipment, 
low voltage equipment, electromagnetic compatibility (EMC), machinery, and pressure equipment.  
173 Information provided by the authorities.  
174 Sectors covered: EMC, pharmaceuticals (GMPs), medical devices, telecommunications terminal 
equipment, au tomotive products, pressure equipment, machinery, and low voltage equipment.  
175 Sectors covered were marine equipment under a first agreement, which was expanded to additional 
marine equipment in 2019. Under a second agreement, sectors covered are telecommu nications equipment, 
EMC, recreational crafts.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 89 - 
 
 Cassis de Dijon principle is a trade policy instrument to dismantl e technical barriers to imports from 
the European  Union and EFTA, and thereby enhance import competition and help reduce the high 
prices prevailing in Switzerland.176 Under the principle, products that are lawfully put on the market 
in the European  Union an d the EEA and comply with the technical requirements of the 
European  Union or the EEA markets (or those of the EU/EEA member States in case of partially or 
non-harmonized legislation) may be placed on the Swiss and Liechtenstein markets without any 
prior i nspection or other conformity assessment, even if the products do not fall under Swiss 
technical requirements. Exemptions apply to protect public interest for products that are subject to 
an import permit, import prohibition, authorization, notification pu rsuant to the Swiss legislation 
concerning chemicals, or an exemption granted by the Federal Council (negative list177).178 
Foodstuffs are in principle covered by the Cassis de Dijon principle but are subject to specific 
requirements, namely that foodstuffs fulfilling EU -EEA requirements but not Swiss requirements 
need to be authorized by the Federal Veterinary Office before being placed on the market.179  
3.111.   If the product does not fall under the scope of the above -mentioned MRAs or the Cassis de 
Dijon principle  (e.g. for animals, weapons, and watches), it must comply with Swiss technical 
regulations to be placed on the Swiss market. Information on the relevant regulations is available 
on the SECO portal.180 
3.112.   Labelling under Swiss legislation is extensively harmoni zed with EU regulations. Utility 
articles and food labelling requirements are determined by the Federal Department for Home Affairs 
and are laid out in Articles  36 (food), 37 (GMO food products)181, and 47 (utility articles) of the 2016 
Ordinance on Food Pr oducts and Utility Products (as amended in 2020). The specific label 
requirements for food products are detailed in Section  3.3.3. Chemical Ordinance RS  813.11 sets 
the mandatory labelling requirements for hazardous substances, such as product identifier l abels, 
hazard pictograms, signal words (guide to the severity of the hazard), hazard statements, safety 
instructions, manufacturer, ingredients, and other complementary information. According to the 
legislation, the label must be written in at least two of ficial Swiss languages. Chemical products 
placed on the market under the Cassis de Dijon principle can be labelled in the language of the Swiss 
region of sale only.182 The authorities indicate that the label of all chemical products will have to be 
written in at least the official language of the Swiss region where the product is supplied, at the 
latest by 2026.  
3.113.   In 2021, the association of Switzerland's cantonal chemists and Liechtenstein expressed 
concern that labelling of food products from online sellers was not satisfactory, with information 
missing on 78% of online shops. According to the Federal Law on Food Products, information 
available online should be identical to that figuring on the label of food sold physically.183 This 
requirement does not apply to foreign -based online platforms selling food, which do not fall under 
Swiss legislation and must be controlled by their home authorities, and thus Swiss consumers 
importing foreign food do it at their own risk.184  
3.114.   The "CE" marking of the European  Union i s not mandatory for products imported to or 
produced in Switzerland. However Swiss producers have the right to use the marking, and products 
exported from Switzerland to the European  Union must bear the marking if they fall under a category 
of products for  which the marking is mandatory.185  
 
176 For more information, see WTO document WT/TPR/S/280/Rev.1, 16  August  2013.  
177 SECO (2020), Exceptions au "principe Cassis de Dijon " (liste négative),  1 December. Viewed at: 
https://bit.ly/3nrUQ0l .  
178 S-GE (2018), Switzerland as a Production and Trading Hub .  
179 Information provided by the authorities.  
180 SECO, Portal of Swiss Technical Regulations . Viewed at: 
https://www.seco.admin.ch/seco/en/home/Auss enwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Technische_Handelshemmnisse/Importplattform0/Schweizer_Produktevorschriften.html .  
181 Further information on the labelling of GMO food products can be found at: https://bit.ly/3noM7fA .  
182 Common Notification Authority for Chemicals, Labelling . Viewed at: https://bit.ly/3BcUfES .  
183 Federal Department of Home Affairs,  Fiche d 'information à l 'usage des acteurs du commerce en ligne 
de denrées alimentaires. Viewed at: https://bit.ly/3pAAOn1 .  
184 FSVO, Buying Food Online  Viewed at: https://bit.ly/3py0tgg .  
185 The list of concerned products can be found at: 
https://www.s -ge.com/en/overview -ce-marking -directives .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 90 - 
 
 3.115.   Switzerland notified the TBT Committee in April  2020 of the introduction of temporary 
exemptions from the authorization requirements, as well as import requirements for placing 
medicinal products on the market. Equally, temporary exemptions from the conformity assessment 
procedures for medical devices and personal protective equipment were introduced. The aim of these 
temporary exemptions was to ensure an adequate supply of medicinal products, medical devices, 
and persona l protective equipment during the COVID -19 pandemic.186 This measure was abrogated 
by Ordinance  3 on COVID -19 measures of June  2020 (RO 2020 2195). In addition, Switzerland 
notified the SPS Committee that in light of the COVID -19 pandemic it decided to rela x labelling 
requirements for food products under certain conditions for a time -limited period of six months, so 
as to provide food manufacturers with more flexibility and to avoid reduced availability of foodstuff 
for consumers.187 
3.116.   Liechtenstein does not ap ply specific marking, labelling and packaging requirements but 
follows Swiss regulations.188 The Liechtenstein Act of 1995 on the marketability of goods, as 
amended in 2020, stipulates that goods produced either in conformity with Swiss or EEA regulations 
may be sold in Liechtenstein. The Technical Test, Measurement and Standards Body under the Office 
of Economic Affairs is responsible for checking technical regulations, directives, decisions, and 
ordinances of the European  Union and integrating them into Li echtenstein law if applicable, so as to 
facilitate free movement of goods.189  
3.117.   There has been no new development regarding the legal regime for conformity assessments 
procedures in Switzerland. The Swiss Accreditation Service (SAS), which is administrativel y 
subordinate to SECO, but otherwise independent with its own budget, is responsible for the 
accreditation of laboratories and inspection and certification bodies, taking into account internal 
norms. Any decision about allocating, refusing, suspending, or withdrawing an accreditation is made 
based on the Ordinance of 17  June 1996 on Accreditation and Designation (RS  946.512). Conformity 
assessments are done either by the manufacturer or an independent third party.190 The SAS also 
represents Switzerland in in ternational organizations for accreditation and conformity assessment.191  
3.118.   In Liechtenstein, conformity assessment bodies for certification, inspection, or calibration 
are accredited by the Liechtenstein Accreditation Service.192  
3.119.   The Swiss Association for Standardization (SNV) encourages the development of national, 
European, and international standards. It acts as an intermediary using inputs from experts and 
end-users to develop the standards. Standards are reviewed every three to five yea rs to be either 
confirmed, modified, or withdrawn. The SNV is a member of the International Organization for 
Standardization and the European Committee for Standardization. The sector -specific Swiss 
standardization bodies under the umbrella of the SNV are signatories to the WTO Code of Good 
Practice for the Preparation, Adoption, and Application of Standards.193 Approximately 98% of the 
28,363 standards currently in force are aligned with international or European standards, above the 
rate at the time of the  previous Review (96%). National standards are nonetheless predominant in 
the watch industry.194 
3.120.   Liechtenstein does not have a national standards body but is integrated into the 
standardization process for harmonized European standards based on EU Regulatio n No.  1025/2012 
on European standardization and participates financially in the mandates for their elaboration.195 
 
186 WTO document G/TBT/N/CHE/245, 16  April 2020.  
187 WTO document G/SPS/N/CHE/84, 24 April 2020.  
188 Information provided by the authorities.  
189 Liechtenstein Business, Customs – Amidst Two Economic Areas with Excellent Links . Viewed at: 
https://bit.ly/3B6jKrr .  
190 SECO, Conformity Assessment – Accredi tation . Viewed at: 
https://www.seco.admin.ch/seco/e n/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Technische_Handelshemmnisse/Konformitaetsbewertung_Akkreditierung.html .  
191 Swiss Accreditation Service SAS, Welcome to the Swiss Accreditation Service SAS . Viewed at: 
https://www.sas.admin.ch/sas/en/home.html .  
192 Two bodies are accredited for certification (SWISS LLOYD GmbH and Überwachungsgesellschaft für 
Gesteinsbaustoffe (Products)) and one for inspection (Überwa chungsgesellschaft für Gesteinsbaustoffe).  
193 WTO document G/TBT/2/dd.7/Rev.2, 16  May 2014.  
194 SNV (2021), Rapport annuel 2020 .  
195 Information provided by the authorities.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 91 - 
 
 3.3.3   Sanitary and phytosanitary requirements  
3.121.   In June  2017, Switzerland notified to the WTO the framework of legislative acts that entered 
into force in May  2017, along with Switzerland's new food legislation (Federal Law of 20  June 2014 
on Foodstuffs and Utility Articles (RS  817.0)).196 This major revision of the food regulation was 
intended to harmonize the Swiss law with EU law and to eliminate  trade barriers while maintaining 
already existing bilateral agreements.197 Nevertheless, some differences remain, as it is mandatory 
for all prepacked food products sold in Switzerland to include the country or region of production, 
contrary to some prepack ed food products sold in the European  Union. The new Swiss legislation 
includes many of the Codex Alimentarius and World Organisation for Animal Health (OIE) Terrestrial 
Animal Health Code standards.  
3.122.   Since the implementation of this revision, all food ite ms that are safe and meet the legal 
requirements are now allowed to be placed in the market; previously, food items were required to 
either be described in an ordinance or approved by the authorities.198 With the end of the former 
"positive principle", what  is not forbidden is now authorized.199 It is the responsibility of 
manufacturers, transporters, importers, exporters, and more broadly any party involved in the trade 
of food to ensure the appropriate self -check on the safety of the products. The relevant authorities 
can proceed to further controls. The Federal Food Safety and Veterinary Office (FSVO ) is responsible 
for food safety requirements and that imported food complies with applicable regulations.200 Imports 
or transit of animals and products containi ng material of animal origin from non -EU countries are 
submitted to controls from the Border Veterinary Service (operated by the FSVO) and must comply 
with the regulations of the Ordinance of 18  November  2015 on the Import, Transit and Export of 
Animals an d Animal Products in Transactions with Third Countries (RS  916.443.10).201 
3.123.   Under the new law, tobacco products are no longer included in the definition of food, but as 
long as a new tobacco law has not been enacted (in 2025 at the latest), the provisions of  the Food 
Law for tobacco and tobacco products will stay in force.202 Foodstuffs, objects and materials, 
cosmetic products, and toys must be traceable at any step of production, transformation, and 
distribution.203 Micro -enterprises (up to nine employees) be nefit from relaxed requirements in this 
regard to reduce their administrative burden.  
3.124.   Under the Customs Union Treaty, Liechtenstein applies Switzerland's SPS measures. Border 
veterinary controls for trade in animals and animal products between Switzerland , Liechtenstein, 
and the European  Union were abolished in 2009.204 Norway joined the common veterinary area in 
2012. Iceland is part of the common veterinary area only with regard to fishery products.205 The 
simplified import conditions for animals and anima l products imported from the European  Union are 
laid out under the Agreement on Agriculture between Switzerland and the European  Union of 1999 
(as amended in 2020). Liechtenstein joined the Agreement in 2007. Annex  11 of the Agreement, 
known as the Veterin ary Agreement, governs the control of certain animal diseases and their 
notification, trade between Switzerland and the European  Union of living animals and their products, 
imports from third countries, and animal breeding. Switzerland concluded a Veterina ry Agreement 
with New  Zealand, which entered into force in 2012 and recognizes the equivalence in their 
 
196 WTO document G/SPS/N/CHE/73, 21  June 2017.  
197 Federal Food Safety and Veterinary Off ice, Droit alimentaire 2017 – l'essentiel . Viewed at: 
https://bit.ly/3jyAVvK .  
198 WTO document G/SPS/N/CHE/73, 21  June 2017. The authorities confirm that this applies to both the 
European  Union and third countries.  
199 "Novel foods" (food not yet well -known by Swiss consumers) should still file applications for 
authorization, while foods  with specific nutritional features for consumers with special needs should be notified 
to the authorities.  
200 SECO, Foodstuffs, Animal Products, Animals, Plants and Means of Production . Viewed at: 
https://bit.ly/3ks2D uq.  
201 FSVO, Border Veterinary Service . Viewed at: 
https://www.blv.admin.ch/blv/en/home/das -blv/auftrag/vollzug/grenztieraerztlicher -dienst.html . 
202 Federal Law on Foodstuffs and Utility Articles, Article  73.  
203 Federal Law on Foodstuffs and Utility Articles, Article  28.  
204 FSVO, Veterinary Agreement between Switzerland and the EU . Viewed at: 
https://www.blv.admin.ch/blv/en/home/das -blv/kooperationen/internationale -abkommen/veterinaerabkomme
n-schweiz -eu.html .  
205 Non-fishery products from Iceland remain subject to contro ls. Information provided by the 
authorities.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 92 - 
 
 respective regulations for trade in several animal species.206 As per Article  16, the Agreement also 
applies to Liechtenstein.  
3.125.   Importers of live animals  and animal non -food products from the European  Union and from 
third countries, as well as importers of animal food products from third countries207, must be 
registered in TRACES (the European  Union's electronic information and traceability system)208, and 
in the case of Liechtenstein, the Food and Veterinary Office. Imports of food from animal origin from 
third countries should also be accompanied by a veterinary or health certificate delivered by a control 
entity from the country of exportation that has bee n approved by the common veterinary area.209 
Through its EEA  EFTA membership, Liechtenstein is a full member of the Rapid Alert System for 
Food and Feed along with all EU/EEA countries, while Switzerland is a partial member of the system 
as far as border re jections of product of animal origin are concerned.210 
3.126.   The specific label requirements for organic food are determined by the Federal Department 
of Economic Affairs, Education and Research  (EAER), and are set in the Ordinance of 
22 September  1997 on Organic Farming and the Labelling of Organically Produced Products and 
Foodstuffs (RS  910.18) as amended in 2021. Imported products may be labelled as organic if they 
have been produced and prepared in accordance with rules equivalent to those detailed in the 
Ordinance and that production is subject to an inspection procedure also equivalent to that laid out 
in the Ordinance. A list of countries that are able to guarantee that their products meet these 
conditions was established by  the FOAG.211 Since 2020, a "GMO free" label is available for food of 
animal origin, to help consumers make more informed choices.212 According to the Ordinance of 
26 November  2003 on the Declaration of Agriculture Products From Non -Permitted Productions 
Methods in Switzerland (RS  916.51) as amended in 2020, food imports produced in a manner 
prohibited in Switzerland must be labelled as such. Food products destined for exportation that are 
not compliant with Swiss requirements must be clearly labelled as meant for  exportation.  
3.127.   In 2015, the Government launched the Strategy on Antibiotic Resistance to protect human 
and animal health. Between 2008 and 2018, the consumption of antibiotics for veterinary purposes 
was halved.213 In 2019, a national information network wa s created to register veterinary antibiotics 
prescriptions.214 One of the Strategy's objectives is to conduct studies measuring the impact of 
cross-border trade in animals and animal products on antibiotic resistance. The Strategy also 
highlights the importance of international cooperation to tackle this challenge and notes 
Switzerland's participation in EU working groups on this subject.215 
3.128.   During the review period, Switzerland elaborated a new regulation on plant health. Swiss 
and EU phytosanitary reg ulations are harmonized, and thus the new Swiss legislation is aligned with 
the provisions of the EU Plant Health Regulation 2016/2031, which entered into force in 2016 and 
has been applicable since 14  December  2019 and replaced the Directive 2000/29/EC. T he 
fundamental Swiss provisions are contained in the Ordinance of 21  October  2018 on the Protection 
of Plants against Particularly Dangerous and Harmful Organisms (RS  916.20), which entered into 
force in 2020. It superseded the Ordinance of 27  October  2010 on Plant Protection (RS  916.20) and 
 
206 FSVO, International Agreements . Viewed at: 
https://www.blv.admin.ch/blv/en/home/das -blv/kooperationen/in ternationale -abkommen.html .  
207 Information provided by the authorities. Imports of animal food products from the European  Union 
do not need to be registered but only accompanied by a commercial document.  
208 FSVO, Imports  from the EU . Viewed at: 
https://www.blv.admin.ch/blv/en/home/import -und-export/import/importe -aus-der-eu.html ; and FSVO,  
Imports from Third Countries . Viewed at: 
https://www.blv.admin.ch/blv/en/home/import -und-export/import/importe -aus-drittstaaten.html .  
209 Information provided by the authorities.  
210 European Commission, Questions and Answers: Rapid Alert System for Food and Feed . Viewed at: 
https://ec.europa.eu/commission/presscorner/detail/en/MEMO_17_2461 .  
211 The list is available in the Ordinance of 11  November  2020 on Organic Agriculture (RS  910.184).  
212 Federal Council (2020), "Droit alimentaire: de nouvelles dispositions vont entrer en vi gueur", 
27 May. Viewed at: https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-79260.html . 
213 The FSVO 's Swiss Antibiotic Resistance Report 2020 , can be downloaded at: 
https://www.blv.admin.ch/blv/fr/home/tiere/tierarzneimittel/antibiotika/nationale -strategie -antibiotikaresistenz
en--star--.html#141_1461851316407__content_blv_fr_home_tiere_tierarzneimittel_ant ibiotika_nationale -stra
tegie-antibiotikaresistenzen --star--_jcr_content_par_tabs .  
214 FOPH  (2019), "La stratégie Antibiorésistance porte ses fruits", 15  November. Viewed at: 
https://www.bag.admin.ch/bag/fr/home/das -bag/aktuell/medienmitteilungen.msg -id-77095.html .  
215 Federal Council  (2015) , Stratégie Antibiorésistance , 18 November, pp. 49 -52. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 93 - 
 
 introduced stricter requirements and increased preventive measures. Its implementing provisions 
are set out in the Ordinance of 14  November  2019 on Plant Health (RS  916.201), which lists 
quarantine pests, regulated non -quarantine pests, and commodities for which importation from third 
countries is prohibited or which must be accompanied by a phytosanitary certificate or plant 
passport, or other specific relevant documents. The Ordinances of 29  November  2019 on 
Phytosanit ary Measures for Agriculture and Productive Horticulture (RS  916.202.1) and of 
29 November  2017 on Phytosanitary Measures for Forests (RS  916.202.2) specify in particular 
phytosanitary measures to prevent the introduction and spread of quarantine pests, as  well 
organisms that potentially fulfil the requirements to be regulated as quarantine pests.  
3.129.   The FOAG and the FOEN  jointly operate the Swiss Federal Plant Protection Service (SPPS). 
The SPPS aims at, inter alia, ensuring that imported products comply wit h the relevant plant 
legislation and thus at preventing the introduction of quarantine pests.  
3.130.   Switzerland, Liechtenstein, and the European  Union form a common phytosanitary area in 
which plants and plant products can in principle be traded freely216. Howeve r, for some, notably 
plants intended for planting and certain seeds, a plant passport issued by authorized operators or 
by the competent authority in the country concerned is required, which certifies that the plants meet 
the health requirements and that t he production sites are subject to regular official controls for 
domestic trade of plants within Switzerland and Liechtenstein and for trade with the 
European  Union.217  
3.131.   A phytosanitary certificate issued by an official authority is mandatory for all import s and 
exports from/to non -EU countries of plants and certain plant products, such as vegetables, fruits, 
cut flowers, and seeds, and border controls apply.218 Phytosanitary certificates for export are issued 
by the SPPS, which also carries out the phytosani tary import controls. Import permits are issued by 
the FOAG for certain plants and their products. Protected species must be accompanied by a CITES 
export permit issued by the country of origin.219  
3.132.   Switzerland is a member of the International Plant Protect ion Convention. It is also a 
member of the European and Mediterranean Plant Protection Organization (EPPO), which develops 
standards on plant protection products and phytosanitary measures and makes recommendations 
for the regulation of pests to its member  countries. Draft standards are first discussed by all EPPO 
members and adopted by consensus. Elaborated standards are then addressed as recommendations 
to EPPO member countries.220 
3.133.   Switzerland notified to the WTO in 2019 the creation of a legal basis for t he prohibition of 
importation of species of fauna and flora that can be easily confused with other protected and 
threatened species according to CITES.221  
3.134.   Special regulations apply to products that are, contain, or are derived from GMOs. An 
authorization i s required for placing these products on the market. After the authorization from the 
FSVO has been delivered, the manufacturers must regularly demonstrate to the FSVO that the 
characteristics of the authorized GMO food have not changed. The federal author ities will reassess 
the safety of the GMO based on the available science. The maximum duration of the authorization 
is 10 years. One soya line, three maize lines, two vitamins, two rennet enzymes, two types of sugar 
 
216 Unlike the common veterinary area, Norway and Iceland are no t included in the common 
phytosanitary area.  
217 Federal Office for Agriculture, Switzerland and the EU . Viewed at: 
https://www.blw.admin.ch/blw/en/home/nachhaltige -produktion/Pflanzengesundheit/handelmitpflanzenmateri
al/schweizundeu.html .  
218 Federal Office for Agriculture, Trade in Plant Material . Viewed at: 
https://www.blw.admin.ch/blw/en/home/nachhaltige -produktion/Pflanzengesundheit/handelmitpflanzenmateri
al.html . The only fruit that can still be brought into Switzerland or the European  Union fr om any other country 
without a phytosanitary certificate are pineapples, coconuts, durians, bananas, and dates.  
219 SECO, Foodstuffs, Animal Products, Animals, Plants and Means of Production . Viewed at: 
https://www.seco.admin.ch/seco/en/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Technische_Handelshemmnisse/Importplattform0/Schweizer_Produktevorschriften/Lebensmitte
l_landwirtschaftliche_Produkte.html .  
220 EPPO, EPPO S tandards . Viewed at: https://www.eppo.int/RESOURCES/eppo_standards .  
221 WTO document G/SPS/N/CHE/75, 6  August  2019.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 94 - 
 
 as an ingredient, and five processing ai ds are currently authorized in Switzerland for use in foods.222 
The moratorium on approvals for the cultivation of biotechnology crops was extended in 2021 for 
four more years as some regulatory aspects still needed to be clarified before its waiver. As of early 
2022, GMO cultivation is allowed in Switzerland only for research purposes.  
3.135.   Over the review period, no STC was raised in the SPS Committee regarding Switzerland's or 
Liechtenstein's SPS measures, while Switzerland supported four concerns raised by o ther 
Members.223 As Switzerland's SPS regulation is highly similar to the European  Union's, the 
authorities indicated in their responses to WTO Members' questions during the last Review that they 
were closely following the STCs being raised regarding EU SPS  measures. While Switzerland did not 
provide any SPS notification during the period 2011 -17, it submitted 14 regular notifications during 
the review period (Table  2.4), mostly related to harmonization of international SPS regulations such 
as from the World  Health Organization or the European  Union. Harmonization on SPS is all the more 
important as 60% of all Swiss exports in agricultural products go to the European  Union, while 77% 
of all Swiss imports in agricultural products come from the European  Union.224  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy – Switzerland  
3.136.   The Swiss legal framework regulating competition comprises three main elements: (i) the 
Federal Law on Cartels and Other Restraints of Competition of 6  October  1995 (Cartel Act); (ii ) the 
Federal Ordinance of 17  June 1996 on the Control of Concentrations of Undertakings (Merger Control 
Ordinance); and (iii)  the Federal Ordinance of 12  March  2004 on Sanctions Imposed for Unlawful 
Restraints of Competition (Cartel Act Sanctions Ordinance).225 The agreement between Switzerland 
and the European  Union concerning cooperation on the application of their competition laws, which 
entered into force on 1  December  2014, is also of relevance. This agreement is procedural in nature 
and does not entail any harmonization of substantive law. It  provides , in particular , for notification 
of enforcement measures and for coordination  and exchange of  confidential  information,  and it 
contains procedural guarantees for the concerned  companies .226 
3.137.   As regards new developments during the review period, the Federal Government continues 
to consider the modernization of the merger control system. Two studies were published on the 
subject, one in 2017 and the other in 2020.227 Additionally, in 2021, the Swi ss Federal Council 
submitted a proposed revision of the Cartel Act to a public consultation. The key element of the 
partial revision concerns the adoption of the SIEC (significant impediment to effective competition) 
test to align the Competition Commissio n's (COMCO ) control standards to international practice .228 
Other developments relate to a popular initiative on "fair prices", which was withdrawn after the 
Federal Parliament agreed on satisfactory legal adjustments. The package includes two aspects and 
will enter into force on 1  January  2022.229  
3.138.   One aspect consists of two amendments to the Cartel Act adopted by the Federal Parliament 
on 19  March  2021.230 The first amendment introduces the concept of undertakings with relative 
 
222 Information provided by the authorities in December  2021.  
223 Those four conc erns were on China's AQSIQ official certification requirements for food imports, 
general import restrictions due to BSE, China's administrative measures for registration of overseas 
manufacturers of imported food, and China's actions to COVID -19 that affec t trade in food and agricultural 
products. WTO documents G/SPS/R/95, 12  September  2019; and G/SPS/R/102, 17  September  2021.  
224 FSVO  (2021), Maintenance of Equivalence on Official Controls by Switzerland , March. Viewed at: 
https://ec.europa.eu/food/system/files/2021 -03/reg -com_ahw_20210315_pres_ocr -equi_che.pdf . 
225 COMCO, Competition . Viewed at: 
https://www.weko.admin.ch/weko/en/home/rechtliches_dokumentation/legislation.html . 
226 Official Journal  of the European Union  (2014), L 347/3, 3  December.  
227 SECO, Studies on Mergers Related to the Cartel Act Made by the Secretariat of the Economy. Viewed 
at: https://www.seco.admin.ch/seco/fr/home/wirtschaftslage ---
wirtschaftspolitik/wirschaftspolitik/Wettbewerbspolitik/kartellgesetz.html . 
228 Federal Council (2021), "Lois sur les cartels: le Conseil fédéral ouvre la consultation concernant la 
révision partielle" , 24 November. Viewed at: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-86059.html . 
229 Federal Council (2021), "Indirect Counter -Proposal to the Fair Prices Initiative Enacted", 
17 September. Viewed at: https://www.admin.ch/gov/en/start/documentation/media -releases.msg -id-
85152.html . 
230 Federal Law on Cartels and Other Restraints of Competition.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 95 - 
 
 market power into Swiss compet ition law: An undertaking will be considered to have relative market 
power if one or more other undertakings are dependent on it. While under the amendment only 
undertakings (as opposed to individuals and, generally, the public sector) can be dependent on an 
undertaking with relative market power, dependent undertakings can include both the customers 
and the suppliers of the company with relative market power. Dependence is considered to exist 
when there are no sufficient and reasonable options to switch to  other undertakings. The existing 
provisions for an abuse of a dominant position will also apply to an abuse of relative market power. 
However, in contrast to an unlawful abuse of a dominant position, an unlawful abuse of relative 
market power will not res ult in a direct sanction. The second amendment inserts into the list of 
measures that may constitute an abuse of a dominant position a new item relating to the freedom 
of procurement abroad: Restrictions of buyers' ability to purchase goods or services off ered in 
Switzerland and abroad at the market prices and conditions that are common in the respective 
industry abroad may be considered unlawful. It also clarifies that this new item applies to both 
undertakings in a dominant position and undertakings with relative market power.231 
3.139.   The other aspect of the package adopted by the Federal Assembly  amends the Federal Law 
Against Unfair Competition of 22  October  1992.232 Under the amendment, geo -blocking measures 
by private undertakings (i.e. geo -blocking measures that are not imposed by the State) are deemed 
unfair and therefore unlawful. This means that it is no longer possible in distance -selling situations 
(i.e. sales  by Internet, telephone, or catalogue) to discriminate against Swiss customers with regard 
to prices or terms of payment, except if there is an objective reason.233 This amendment does not 
apply to a list of sectors exempt from it, which include non -profit services, public transportation 
services, health services, and electronic communication services.234 
3.140.   Switzerland's competition authority consists of COMCO and its expert Secretariat. COMCO is 
not a full -time body and consists of 11  to 15 members who are ele cted by the Swiss Federal Council. 
Its members are professors of law or economics, legal practitioners, representatives of major 
industry associations, consumer organizations, and labour unions . COMCO is the main 
decision -making body and also takes decisio ns on fines. The Secretariat is a full -time body with 
expert staff. It carries out investigations in the area of competition law and prepares requests for 
decision for approval by COMCO, seeks comments from affected undertakings, and submits the 
request, t ogether with any comments, for decision to COMCO. COMCO's decisions can be appealed 
to the Federal Administrative Court, whose judgments can in turn be submitted to the Federal 
Supreme Court for final review.  
3.141.   As previously, COMCO prioritized the fight agai nst hard -core horizontal and vertical cartels 
as well as market foreclosures, which have the effect of reducing import competition. Between 2017 
and 2020, COMCO opened 20 investigations concerning anti -competitive agreements or abuse of a 
dominant position . In 2017, COMCO sanctioned Swiss Post for abuse of a dominant position on the 
market of mass mailing by commercial customers of letters above 50 grammes. In 2018, COMCO 
concluded an amicable settlement with the German company Rimowa for unlawfully prohibi ting 
dealers in Germany from exporting its products to Switzerland. In 2019, COMCO reached amicable 
settlements with, and sanctioned, several banks for a case relating to currency exchange rates 
(Forex). Traders from the " three-way banana split" cartel, which were working for Barclays, 
Citigroup, JP Morgan, the Royal Bank of Scotland (RBS) , and UBS, and traders from the "Essex 
express" cartel, which were working for Barclays, MUFG Bank, RBS , and UBS, had been shown to 
participate in price -fixing behaviour.  An investigation is still ongoing into Credit Suisse's activities 
related to this case. COMCO views amicable settlements as an attractive option both for affected 
companies and COMCO itself, because they result in a prompt end to investigations, may obviat e 
the need for recourse to judicial review, and may be associated with lower levels of sanctions. In 
2020, COMCO sanctioned UPC, which had acquired a dominant position in the broadcasting of 
ice-hockey games in Switzerland (2017 -22), for refusing to give i ts competitor Swisscom 
broadcasting options until 2020. Swisscom had been sanctioned for similar behaviour in the 
broadcasting of football and ice -hockey games in 2016. Also in 2020, COMCO sanctioned "energie 
wasser luzern" (ewl) and Erdgas Zentralschweiz AG (EGZ) for denying access to their natural gas 
 
231 Federal Council (2021), "Indirect Counter -Proposal to the Fair Prices Initiative Enacted", 
17 September. Viewed at: https://www.admin.ch/gov/en/start/documentation/media -releases.msg -id-
85152.html . 
232 Federal Law A gainst Unfair Competition.  
233 Federal Council (2021), "Indirect Counter -Proposal to the Fair Prices Initiative Enacted", 
17 September.  
234 Federal Law A gainst Unfair Competition, Article  3a, para.  2. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 96 - 
 
 network to third -party suppliers, thereby opening up the gas market in Central Switzerland. 
Bid-rigging was another investigation priority. Starting in 2017 , COMCO issued 10 decisions on 
bid-rigging investig ations in the Canton of Graubünden linked to construction projects. In 2020, 
based on a series of extensive investigations, the Secretariat concluded that relevant construction 
companies were colluding as part of a permanent consortium. Six of the 10 investigations still have 
pending judicial proceedings.235  
3.142.   As concerns merger control, COMCO during the review period assessed several planned 
concentrations. In 2017, COMCO decided not to approve a planned merger between Starticket and 
Ticketcorner, because Ticketcorner's dominant position in the area of ticket sales for various events 
would have been further reinforced by a merger with Starticket.236 
3.143.   Concerning other COMCO activities, COMCO engaged with federal and cantonal procuring 
entities to assist them in facilitating the detection of bid -rigging. It also contributed to the revision 
of the Federal Law on Public Procurement, which entered into force on 1  January  2021. Advocacy 
activities also form part of COMCO's responsibilities. For  example, during the review period, COMCO 
strongly supported the Federal Council's proposal to eliminate all tariffs on industrial goods.237 The 
Federal Assembly  adopted the proposal in 2021. Subject to the referendum period passing unused, 
the Federal Coun cil will decide on the date of entry into force by February  2022.238 
3.144.   During the review period, there were several court decisions in the area of competition law. 
In a landmark ruling, the Federal Supreme Court in 2017 published its reasoning in the Elmex/GA BA 
case. It decided that : (i) hard horizontal and vertical cartels are in principle significant restrictions 
of competition and unlawful, unless justified on grounds of economic efficiency ; and (ii)  not only 
agreements eliminating effective competition, bu t also agreements significantly restricting 
competition, can be sanctioned. The courts on the whole affirmed COMCO's decisions. Notably, the 
Federal Supreme Court in 2017 confirmed a judgment by the Federal Administrative Court, which 
had rejected an appea l by BMW AG against a COMCO sanction imposed on the company for 
prohibiting dealers outside Switzerland to export its products to Swiss customers. In the Altimum 
case, the Federal Supreme Court in 2018 confirmed COMCO's decision that the minimum resale 
prices that Altimum had imposed on its dealers constituted anti -competitive vertical agreements. It 
also clarified that what mattered was whether the purpose of such agreements was to bring about 
a significant restriction of competition and not whether the de alers effectively implemented the 
agreements. The Court also noted that a justification for the significant restrictions of competition 
would have been possible if the minimum prices had been necessary to enable specialized resellers 
to compete on quality (advice given to customers) with less specialized , more price -competitive 
stores. However, no such justification had been advanced in the Altimum case.239 In 2021, the 
Federal Supreme Court confirmed the impermissibility of price recommendations by three pr oducers 
of drugs for erectile dysfunction (Pfizer AG, Eli Lilly SA, and Bayer AG). The court qualified the price 
recommendations as a concerted practice because there was successful coordination with retailers 
and the recommendations had the effect of a fi xed price rather than a maximum price.  
3.145.   For statistical information on competition enforcement in Switzerland, see Table  3.16. 
Table 3.16 Competition enforcement statistics 2018 -20 
 2018  2019  2020  
1. Initiation of case investigations (number)     
a) Cases concerning anti -competitive agreements  5 1 5 
b) Cases concerning abuse of dominance  1 2 2 
c) Leniency applications  Not disclosed  Not disclosed  Not disclosed  
d) Notifications of mergers and acquisitions  34 40 35 
2. Completed cases (number)     
a) Anti -competitive agreements  4 11 3 
b) Abuse of dominance  0 0 3 
c) Settlements  2 10 5 
 
235 COMCO, Annual Reports , various issues.  
236 COMCO, Annual Report 2017 of the Competition Commission .  
237 COMCO, Annual Report 2019 of the Competition Commission .  
238 SECO website. Viewed at: 
https://www.seco.admin.ch/seco/de/home/ Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Warenverkehr/Tarifpolitik/Aufhebung_Industriezoelle.html . 
239 COMCO, Annual Reports , various issues.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 97 - 
 
  2018  2019  2020  
d) Mergers and acquisitions (total number of 
decisions and number of mergers and acquisitions 
that were not approved)  0 0 0 
3. Infringement penalties  
(number and CHF '000) 30,000  156,000  39,000  
4. Appeals (number of completed judicial 
review decisions)  8 10 16 
Source:  Information provided by the Swiss authorities.  
3.3.4.2   Competition policy – Liechtenstein  
3.146.   Liechtenstein does not have a national cartel law , a national merger control law , or a national 
competition authority .240 It is subject to the EEA rules relating to competition. The rules and 
regulations relating to competition in the EEA are set out in Articles  53 to 60 of the EEA Agreement 
and its Annex  XIV (Competition) , in particular, Articles 53 and 54 (which mirror Articles  101 and 102 
of the Treaty on the Functioning of the European Union). Protocols 21 to 25 of the EEA Agreement 
provide more detailed rules on competition, including incorporation of the relevant EU regulations 
and directives.241 Responsibilities for investigation and decisions on cases are set out in Article  56 of 
the EEA Agreement, which states that individual cases w here only trade between EFTA EEA States 
is affected are to be decided by the EFTA Surveillance Authority (ESA), in addition to some cases 
where the turnover in the EFTA EEA States of the undertakings concerned is 33% or more. The 
European Commission is res ponsible for cases affecting trade between EFTA EEA States and the 
member States of the European Union.  
3.147.   Pursuant to Liechtenstein's Law on the Implementation of Competition Rules in the European 
Economic Area242, the competent national competition authority responsible for implementing EEA 
competition rules and regulations is Liechtenstein's Office of Economic Affairs, except for matters 
falling within the jurisdiction of Liechtenstein's courts. The Office of Eco nomic Affairs does not decide 
competition cases, but implements relevant decisions taken by the ESA or EU authorities.  The Law 
on the Implementation of Competition Rules in the European Economic Area stipulates that 
complaints against decisions by the Offi ce of Economic Affairs may be lodged with Liechtenstein's 
Government, while government decisions may be challenged before Liechtenstein's Administrative 
Court.  During the review period, the Office of Economic Affairs did not implement any relevant ESA 
or EU decisions.  
3.148.   No statistical information on competition enforcement was provided by the Liechtenstein 
authorities. According to the authorities, there have not been any competition cases concerning 
Liechtenstein that were dealt with by the EFTA Surveillance  Authority.  
3.3.4.3   Price controls – Switzerland  
Switzerland's  regime of price surveillance and prevention of abusive pricing by public and 
private monopolies or enterprises with market power remains unchanged. In accordance with the 
Law on Price Surveillance, th e Price Supervisor, who is appointed by the Federal Council , has the 
responsibility of observing price developments and preventing abusive price increases or abusive 
price maintenance in any market where the price level is not the consequence of effective 
competition.243 Establishing the conditions for effective competition falls under the purview of 
COMCO. Price surveillance covers the prices of goods and services charged by public or private 
enterprises with market power as well as administered prices (i.e . prices set or approved by the 
State). Enterprises with market power may submit their planned price increases to the Price 
Supervisor. The Price Supervisor may also act on its own initiative or upon information from the 
public to determine whether there a re indications of abusive pricing. If abusive pricing by an 
enterprise is found, the Price Supervisor may attempt to reach an amicable settlement with the 
respective enterprise, failing which he or she is authorized to prohibit all or part of the price inc rease 
 
240 Liechtenstein's Office of Economic Affairs. Viewed at: 
https://www.llv.li/inhalt/184/amtsstellen/wettbewerbsrecht . 
241 Agreement on the European Economic Area (EEA Agreement).  
242 Law on the Implementation of Competition Rules in the European Economic Area, 23  May 1996.  
243 The Law stipulates that abusive pricing can be found only if prices on a given market are not the 
result of effective competition. The Law lists factors to take into  account, such as cost increases in the relevant 
market and prices in comparable markets.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 98 - 
 
 or order a reduction in price. Entities that fail to meet or attempt to avoid prices agreed by consent 
are liable to a fine of up to CHF  100,000.  
In the case of administered prices, the Price Supervisor may request the relevant State 
entity to incre ase abusive prices or to lower them. If the State entity does not follow the request, it 
must give its reasons. Switzerland maintains administered prices at the federal, cantonal , and 
municipal levels. Goods and services subject to administered prices incl ude medicines, electricity, 
gas, water, basic telecom services, airport taxes, and notary services. In addition, fees for hospital 
treatment and medical doctors are regulated at the cantonal level, and taxi tariffs, and tariffs for 
garbage and wastewater c ollection, amongst others, are regulated at the municipal level.  
Agricultural import threshold prices are a special case of price controls or administered 
prices, as they are also an instrument of agricultural protection (Section  4.1). For certain basic 
agricultural products (grains and oilseeds), Switzerland applies a system of threshold prices on 
imports to keep the duty -inclusive prices within certain price ranges. Variable MFN import duties244 
allow the authorities to control and stabilize the domestic p rices of the agricultural products 
concerned around the level of the statutory threshold prices.  
The Price Supervisor publishes an annual report on the main investigations.  During the 
period under review, the Price Supervisor opened multiple investigations  into abusive or 
administered prices, including against the hotel reservation platform Booking.com in 2017 and the 
incineration plant Limeco in 2018, as the communal rates that the latter had charged for waste 
disposal were high. The Price Supervisor reach ed amicable settlements or concluded price moratoria 
with a multitude of companies in a dominant position and with public monopolies. This was notably 
the case of the natural gas distribution group Holdigaz SA in 2017 and led to a price decrease for 
the co mpany 's clients averaging 3%. In 2018, the Price Supervisor concluded an agreement with 
the Swiss Federal Railways (SBB) that made it possible for consumers to make savings of up to 
CHF 80 million per annum. In 2020, a settlement was reached with Swisscom,  under which 
Swisscom had to lower the (rental) price that it charged other telecommunications suppliers for 
Swisscom's product Access Line Optical (ALO), which provides to the rights to use Swisscom 's 
unused fibre network (FTTH).  Customs clearance fees were also an area of interest to the Price 
Supervisor, as they were often higher than the value of the evaluated article itself. This problem 
was exacerbated by the COVID -19 crisis. In 2017, based on a parliamentary proposal, a legal basis 
was created that allowed the Federal Customs Administration, at the request of the Price Supervisor, 
to pronounce sanctions against companies that charged excessive customs clearance fees to their 
customers. In August  2020, however, the Federal Administrati ve Court found that legal basis to be 
inappropriate.245 
3.3.4.4   Price controls – Liechtenstein  
3.153.   Liechtenstein maintains price controls on public transport, telecommunications, postal and 
medical services, and drugs and medical equipment. Prices for electricity and n atural gas (except 
for grid access/transport) can be set individually by each electricity or natural gas supplier. The 
prices are composed of a tariff for the use of the network (regulated by the Energy Market 
Commission) and a tariff for the energy itself . Due to few alternative energy suppliers, most prices 
for electricity are de facto set by the two state -owned companies. Some customers  have already 
switched their electricity supplier, according to the authorities. A new natural gas supplier entered 
the market during the review period, resulting in lower natural gas prices.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.154.   Alcosuisse, the former profit centre of the Swiss Alcohol Board and sole importer of ethanol 
products, was sold to a private Swiss company in 2018. This follows the partial revision of the Alcohol 
Law in 2016 and of the Ordinance on Alcohol and the Alcohol Law in 2017.246 The Swiss Alcohol 
Board was integrated into the FCA (now the FOCBS). Alcosuisse's monopoly on the importation  of 
 
244 Within limits set by Switzerland's tariff bindings.  
245 Price Supervisor, Annual Reports , various issues.  
246 Federal Council (2017), "Entry into Force on 1  January  2018 of the Partially Revised Alcohol 
Legislation", 15  September. Viewed at: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-68128.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 99 - 
 
 ethanol was ended with the liberalization of the ethanol market in 2019.247 Switzerland notified the 
WTO Working Party on State Trading Enterprises in December 2020 that the private sector is allowed 
to import ethanol and spirits without restriction and  without any permit. The taxes, fixed by the 
Federal Council, have to be paid on imported goods as well as on domestic production. Domestically 
produced ethanol and spirits are produced by private -sector actors that, for control reasons, have 
been granted a concession by the Confederation (farmers, and industrial and professional 
producers).248 
3.155.   The Swiss cantons hold an ancient salt monopoly ( régale du sel ) that covers imports and 
sale of various types of salt. The monopoly is exercised by Salines Suisses SA , which is fully owned 
by the Swiss cantons and Liechtenstein. The merger between Salines de Bex SA (mainly owned by 
the Canton of Vaud) and Salines Suisse du Rhin SA (owned by all cantons, except Vaud, and 
Liechtenstein) was decided in 2014 and formally a chieved in 2021.249 Yearly revenues of the 
company range between CHF  60 million and CHF  70 million.250 The cantons, through Salines 
Suisses, fix the sales price of salt, which includes a tax ( droit de régale ) on imported and domestically 
produced salt. Road salt (HS 2501.0090), the most widely used salt type, is subject to a tax of 
CHF 1 per tonne.251 The intercantonal convention of 1973 regulates the sale of salt and guarantees 
its supply to all of Switzerland and Liechtenstein at a fixed price, shielded from  demand shocks or 
transportation costs throughout the two countries. In 2018, the Swiss Federal Audit Office argued 
for a renegotiation of salt prices that it deemed too high compared to Switzerland's neighbours. 
Salines Suisses responded that the higher p rice of salt is similar to the higher price of food 
commodities in general and that the current system allows the country to be self -sufficient and avoid 
any risk of shortage.252 Salines Suisses is a member of the European Salt Producers' Association.253  
3.156.   Specific conditions apply to importation of salt (i.e. specific maximum quantities and taxes 
are applicable) depending on the type of salt (e.g.  herbal salt, coarse sea salt, cosmetic salt). Only 
salt that cannot be provided by Salines Suisses can be importe d. Importation for private consumption 
below 50  kg of all types of salt, however, is allowed and tax -free. A demand can be made for the 
reimbursement of the tax on salts used for further processing before re -exportation.254 During the 
past decade, trade in salt sharply declined, with importation dropping by 69% between 2010 and 
2020 and exportation contracting by 91%.255 
3.157.   As a shareholder of Salines Suisses SA, Liechtenstein is supplied by the company. However, 
because of its EEA membership, Liechtenstein has replaced the monopoly tax with an excise duty 
on salt of EEA origin (and other EEA -originating products affected by the Swiss salt monopoly).256  
3.158.   At the federal level, Switzerland has five state -owned enterprises (SOEs) that are wholly or 
majority -owned by the Confederation. They fall under the category of "market services" among the 
activities outsourced by the Federal Council. Each is managed by the Federal Council according to 
strategic objectives reviewed and renewed every fou r years.257 The five companies are RUAG Holding 
AG (operating in the aerospace and defence sector), the Swiss Federal Railways (SBB), Swiss Post, 
Skyguide (Swiss Air Navigation Services), and Swisscom (telecommunications). No recent data are 
 
247 Federal Council (2018), "Federal Council Awards Sale of Alcosuisse AG" , 2 February. Viewed at: 
https://www.admin.ch/gov/en/start/documentation/media -releases.ms g-id-69703.html .  
248 WTO document G/STR/N/18/CHE/Rev.1, 21  December  2020.  
249 Salines Suisses (2021), " Salines Suisses SA and Saline de Bex fusionnent et achèvent le 
regroupement initié en 2014", 29  April. Viewed at: 
https://www.salz.ch/fr/salines -suisses -sa-et-saline-de-bex-sa-fusionnent -et-achevent -le-regroupement -initie-e
n-2014.  
250 Wuthrich, B. (2018), "Le monopole du sel coûte cher aux routes suisses", Le Temps , 27 March.  
251 FOCBS (2021) , "Exportations de sel 2020 : au plus bas depuis 30 ans ", 9 March. Viewed a t: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-82591.html .  
252 Salines Suisses, Interview de Urs Hofmeier . Viewed at: 
https://www.salz.ch/fr/histoires -de-sel/de -la-vie-et-du-sel/interview -de-urs-hofmeier -sur-la-regale -des-sels.  
253 Salines Suisses,  Nous assurons l 'approvisionnement en sel de toute la Suisse . Viewed at: 
https://www.salz.ch/fr/qui -sommes -nous.  
254 Salines Suisses, Régale des sels en Suisse. Viewed at: 
https://www.salz.ch/fr/qui -sommes -nous/regale -des-sels-en-suisse .  
255 FOCBS (2021), " Exportations de sel 2020 : au plus bas depuis 30 ans ", 9 March.  
256 The tax rate (per tonne) v aries according to end use, e.g. CHF  175 for packaged edible salt, CHF  1 
for road salt, CHF  0.94 for industrial use, and CHF  5 for other purposes.  
257 FFA, Enterprises and Institutions . Viewed at: 
https://www.efv.admin.ch/efv/en/home/themen/finanzpolitik_grundlagen/cgov/unternehmen_anstalten.html .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 100 - 
 
 available on co mpanies majority -owned by cantons. According to a 2017 study, cantons held shares 
in more than 500 companies.258 
3.159.   With the exception of RUAG, which is managed by the Federal Department of Defence, Civil 
Protection and Sport (DDPS) and the Federal Finance Adm inistration, all companies owned by the 
Federal Council are managed by the Federal Department of the Environment, Transport, Energy and 
Communications (DETEC) and the Federal Finance Administration. Skyguide is jointly managed by 
the DDPS. The Federal Coun cil, as the owner, retains the right to elect the board of directors, 
elaborate the strategic objectives, and approve the management report and annual accounts. The 
Federal Assembly  ensures that the Federal Council executes its ownership duties.259 Followin g a 
series of issues involving Swiss SOEs, a group of experts was mandated in 2019 to evaluate the 
Federal Council's ownership of Swiss Post, RUAG, SBB, and Swisscom. The report concluded that it 
was satisfied with the companies' ownership, noting however some areas for improvement 
(e.g. conflicting objectives and diverging views among the Departments).260 The Federal Council 
decided to adopt some of its recommendations, such as on greater transparency and compliance 
management.261 
3.160.   Every year, the Confederati on publishes a report on the achievements of the strategic 
objectives for the Swiss SOEs. For 2020, assessments of their performance were the following:  
• Swiss Post was profitable in 2020 and 2019, although profits decreased in 2020. It paid out 
annual divi dends to the Confederation of CHF  50 million in 2019 and 2020. In 2019, the 
Confederation decided to cut dividends from CHF  200 million to CHF  50 million due to the 
tighter economic situation and a changing postal market. Swiss Post received federal 
subsid ies of CHF  236 million in 2020, of which CHF  186 million was earmarked for the 
regional passenger transport CarPostal and the rest as indirect support to the press 
(reductions on the prices for the delivery of magazines and newspapers). Whereas the 
number of letters delivered declined, the rise of e -commerce led to an increase in package 
shipments. DETEC estimated that the company's objectives had been met overall .  
 
• The SBB partially met its objectives, according to DETEC. While the SBB recorded a profit o f 
CHF 463 million in 2019, the restrictions of the COVID -19 pandemic significantly reduced 
the use of public transportation and in 2020 the SBB recorded a loss of CHF  617 million. The 
Confederation granted CHF  2.7 million in subsidies to the SBB for the ye ar 2020 . 
 
• Swisscom does not receive federal subsidies. Profits totalled CHF  1.5 million in 2020, down 
by CHF  141 million from 2019. DETEC estimated that the company's objectives had been 
overall met. Swisscom is 51% owned by the Confederation . 
 
• RUAG Holdin g partially met the objectives set by the Federal Council. It recorded a loss of 
CHF 186 million, compared to a loss of CHF  25 million in 2019, notably due to a weak civil 
aviation sector in 2020. It does not receive subsidies from the Confederation .262 
 
• Skyguide received CHF  27.8 million in subsidies from the Confederation. Due to the 
disruption of air traffic caused by the COVID -19 pandemic, Skyguide registered a loss of 
CHF 165 million in 2020. Before the pandemic, it also recorded a loss of CHF  4 million  in 
2019. DETEC estimated that the company's objectives had been met overall.  
 
3.161.   The financial services provider Post Finance Ltd., a wholly owned subsidiary of Swiss Post, 
holds a banking licence. In 2021, the Federal Council announced that it intended to p rivatize this 
 
258 Federal Council (2017), Etat et concurrence , 8 December. Viewed at: 
https://www.seco.admin.ch/seco/fr/home/wirtschaftslage ---wirtschaftspolitik/wirschaftspolitik/Wettbewerbspoli
tik/staat -und-wettb ewerb.html .  
259 The Federal Assembly ensures that the Federal Council executes its ownership duties.  
260 Evaluation du gouvernement d 'entreprise de la Confédération fondée sur l 'analyse de quatre 
entreprises, 2019. Viewed at: https://www.newsd.admin.ch/newsd/message/attachments/57550.pdf . 
261 Federal Council (2019), "Le Conseil fédéral adopte des mesures à la suite du rapport d'experts sur le 
gouvernemen t d'entreprise", 26  June. Viewed at: 
https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg -id-75607.html . 
262 Federal Council, Rapport succinct 2020 d u Conseil fédéral sur l 'atteinte des objectifs stratégiques.  
Viewed at: https://www.newsd.admin.ch/newsd/message/attachments/66262.pdf .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 101 - 
 
 subsidiary. Plans for this privatization should be announced in the upcoming months.263 In 
January  2020, BGRB Holding AG created two sub -holdings: RUAG MRO, which will supply the Swiss 
Armed Forces, and RUAG International, which will be progre ssively privatized. This decision, enacted 
in 2019, was taken due to the fact that only a fraction of the group's activities was still directed 
towards providing equipment to the Swiss Armed Forces.264  
3.162.   There has been no major change regarding SOEs in Liech tenstein since the last Review. Fully 
or partially SOEs continue to hold exclusive rights or exercise monopoly powers over public 
passenger transport (through LIEmobil company, fully owned), certain postal services (Liechtenstein 
Postal Service, 75% public ly owned), the supply of energy (Liechtenstein Gas Supply and 
Liechtenstein Power Plants, fully owned), and telecommunications (Telecom Liechtenstein, in 2020 
the Government repurchased the minority shareholder's block of shares, increasing public ownershi p 
from 75.1% to 100%).265 The Government is also the majority holder of the Liechtensteinische 
Landesbank, which conducts banking business of all kinds for its own account and for the account 
of third parties in Liechtenstein and abroad.266 In November  2021, Swiss Post concluded the process 
of selling the previously held 25% share of Swiss Post in the Liechtenstein Postal Service to 
Liechtenstein, who is now the sole shareholder. Liechtenstein and Swiss Post also concluded a 
partnership agre ement to maintain a close relationship in the future.267 State -owned enterprises are 
legally obliged to periodically provide information to the Government on the implementation of their 
strategy, activities, and main financial performance indicators, and this information must then be 
reported by the Government to the Audit Committee of the Parliament.268 The authorities indicate 
that SOEs' employment represented 6.6% of total employment, unchanged from 2017 at the time 
of the previous Review . 
3.3.6   Government procurement  
3.3.6.1   Overview  
3.163.   Both Switzerland and Liechtenstein are parties to the Agreement on Government 
Procurement Agreement 2012 (GPA 2012). The GPA 2012 entered into force in Liechtenstein on 
6 April 2014. Switzerland was the last party to the G PA 1994 to accept the GPA 2012, due to its 
wish to complete a reform of its domestic government procurement laws. The GPA 2012 entered 
into force in Switzerland on 1  January  2021.269 
3.164.   With regards to the commitments undertaken through the GPA 2012, Switzerla nd offers 
comprehensive coverage of entities at all levels of government, including new central -level entities 
pertaining to the federal judiciary authorities and the federal prosecution authorities.270 On the basis 
of reciprocity, Switzerland extended its subcentral market access opportunities to Canadian 
companies. It also provided subcentral market access opportunities in specific sectors to suppliers 
from the Republic of Korea, Israel, and Japan.271 In Annex  3, the federal railway sector remains 
excluded.  At the same time, Switzerland  expanded its list of non -sensitive defence items covered. 
Switzerland made reservations on the application of the GPA 2012  to other signatories that had not 
extended comparable and effective access to certain entities and/or in certain activities to Swiss 
firms.272 
 
263 Federal Council (2021), "Le Conseil fé déral souhaite améliorer les conditions -cadres de PostFinance" , 
30 June. Viewed at: https://www.seco.admin.ch/seco/fr/home/seco/nsb -news.msg -id-84253.html .  
264 Federal Co uncil (2019), "Federal Council Decides on the Future of the RUAG Technology 
Corporation", 18  March. Viewed at: 
https://www.admin.ch/gov/en/start/documentation/ media -releases.msg -id-74367.html .  
265 Information provided by the authorities.  
266 Information provided by the authorities.  
267 Information provided by the authorities.  
268 Information provided by the authorities.  
269 WTO document GPA/LEGIS/CHE/1, 6 January  2021.  
270 WTO document WT/Let/1532, 21  February  2021, Annex 1 (central government entities) to 
Appendix  I to the GPA 2012.  
271 Fedlex, "Message relatif à l'approbation du Protocole portant amendement à l'accord sur les marchés 
publics de l'OMC", 21  March 2017. Viewed at: https://www.fedlex.admin.ch/eli/fga/2017/419/fr . 
272 See for instance, Annex 7 to Appendix I to the GPA 2012, General Notes 1.1, 1.2, and 1. 3 of 
Switzerland, WTO document W T/Let/1532, 21  February  2021. The reservations apply to, inter alia, Canada, the 
United  States, Japan, the Republic of Korea, Israel, Singapore, and Australia.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 102 - 
 
 3.165.   Liechtenstein equally provides comprehensive entity coverage and extended its 
commitments to procurement by its Parliament and Courts273, bodies of public law at the national 
level274, and procurement by postal service s acting under exclusive rights.275 In Annex  5, 
Liechtenstein dropped the exclusion of certain telecommunication services. It maintains some 
country -specific derogations.276 
3.166.   Switzerland and Liechtenstein are also bound by the EFTA Convention, which reaffirms their 
rights and obligations as contained in the GPA 2012 and broadens the scope of their commitments 
among EFTA members.277 EFTA member States undertake to encourage their covered entities to 
treat the suppliers and service providers of the other  member States in accordance with the 
principles of transparency and non -discrimination as set out in paragraph  2 of Article  37 of the EFTA 
Convention.278 EFTA has also concluded various FTAs with third countries containing chapters on 
government procuremen t. Several EFTA FTAs contain commitments on access to government 
procurement markets and  build on the GPA or substantially replicate its structure and content.  
3.167.   The EEA Agreement establishes a single market in public procurement between Iceland, 
Liechtenste in, and Norway, and the European  Union.279 A bilateral agreement concluded on 
21 June 1999 between the European  Union and Switzerland on certain aspects of public procurement 
filled the gap between the scopes of the GPA and the relevant provisions under the  EEA.280 
3.3.6.2   Switzerland   
3.168.   Switzerland's international commitments on public procurement have been implemented 
both at the federal level (central administration) and at the sub -federal level (cantonal and municipal 
administration). At the federal level, Switzerl and revised its Federal Law on Public Procurement and 
the implementing Federal Ordinance.281 Both the revised Law and the revised Ordinance entered 
into force on 1  January  2021. Besides implementing the GPA 2012, the objective of the revisions 
was to achiev e greater harmonization between the federal and cantonal laws governing government 
procurement.  
3.169.   At the sub -federal level, the majority of Swiss cantons still operate under the revised 
Intercantonal Agreement on Government Procurement from 2001, and its exe cutive directives.282 
However, the cantons agreed  on a revised version of the Intercantonal Agreement, which was 
adopted on 15  November  2019, to bring about as much harmonization with federal law as possible 
and to implement and ensure conformity with the GPA 2012 at cantonal level. The revised 
Intercantonal Agreement  entered into  force on 1  July 2021 following its ratification by the C antons 
of Aargau and Appenzell Innerrhoden.283 Ratifying procedures are currently underway in the majority 
of cantons. The Confederation -Cantons Commission on Government Procurement (CMCC) is 
responsible for coordinating the implementation of Switzerland's international commitments at th e 
federal and sub -federal levels and for ensuring that they are implemented.284 
3.170.   The main changes introduced in the revised Federal Law on Public Procurement concern the 
increased emphasis on quality and sustainability aspects in public procurement, the  definition of 
 
273 WTO document WT/Let/1433, Annex 1 to Appendix I to the GPA 2012 (central government entities).  
274 WTO document WT/Let/1433, Annex 2 to Appendix I to the GPA 2012 (subcentral government 
entities).  
275 WTO document WT/Let/1433 and WT/Let/948, Annex 3 to Appendix I to the GPA 2012 (other 
entities).  
276 See, for instance, Annex 3 to Appendix I to the GPA 20 12, Notes 9 and 10.  
277 EFTA Convention, Article  37 and Annex R .  
278 EFTA Convention, Annex R, Article  7.  
279 Article  65(1) and  Annex XVI to the EEA Agreement cover public procurement.  
280 For details, see Section  3.1.10 of WT/TPR/S/280/Rev.1, 16  August  2013.  
281 Federal Law of 21  June 2019 on Public Procurement; and Federal Ordinance of 12  February  2020 on 
Public Procurement.  
282 See "Accord intercantonal sur les marchés publics (AIMP)", 25  November  1994/15  March  2001. 
Viewed at: https://www.bpuk.ch/fr/dtap/concordats/aimp .  
283 "Message type: Révision de l'Accord Intercantonal sur les Marchés Publics (AIMP)". Viewed at: 
https://www.bpuk.ch/fr/dtap/concordats/aimp/aimp -2019. 
284 The CMCC is composed of an equal number of representatives from the Confederation and from the 
cantons. Public Procurement Commissi on for the Confederation and the Cantons. Viewed at: 
https://www.seco.admin.ch/seco/en/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/zugang_int_maerkte.htmlin.ch . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 103 - 
 
 technical terms and the scope of application, the regulation of additional/subsequent procurement, 
the prevention of corruption, and the introduction of more flexible instruments such as dialogue, 
framework agreements, electronic procurement, ele ctronic auctions, and shorter timelines. To 
ensure reasonable access to judicial review, the latter  has been further expanded and is now 
available for complaints involving contract values of at least CHF  150,000 (for supplies and services) 
and CHF  2,000,00 0 for construction services.285 
3.171.   Federal or cantonal contracts above the thresholds defined in applicable international trade 
agreements and thus covered by those agreements may be awarded using open or selective 
tendering, and in some cases by direct award.  Federal or cantonal contracts below international 
agreement thresholds may additionally be awarded using an invitation procedure. For statistical 
information on internationally awarded contracts, see Table  3.18.  
3.172.   Under the Federal Law on Public Procuremen t, contracts are awarded to the supplier having 
submitted the most advantageous offer, except for standardized supplies for which the lowest price 
offer may be selected. Under the Intercantonal Agreements of 2001 and 2019, contracts are awarded 
to the most  economically advantageous tender.  
3.173.   The authority responsible for government procurement at the federal level is the Federal 
Office of Construction and Logistics, which forms part of the Federal Ministry of Finance. Complaints 
relating to government procure ment procedures may be lodged with the Federal Administrative 
Court (in the case of federal government procurement) or an independent cantonal authority (in the 
case of cantonal government procurement).  
3.174.   Under Switzerland's Law on Public Procurement, compli ance with equal pay for men and 
women is a prerequisite for participation in public procurement. Federal procurement offices can 
conduct equal pay audits themselves or enlist external help. Violations may lead to sanctions, such 
as a contractual penalty or  exclusion from the procurement market. The aim of these regulations is 
to ensure social advancement and to avoid distortions of competition.286 
Table 3.17 Government procurement in Switzerland, 2016 -20 
Year Level Total value of 
procurement 
(GPA -covered 
and 
non-covered)  GPA-covered procurement  
Total value  Awarded under open 
and selective 
tendering  Awarded under 
limited tendering  
Total value  Ratio  Total value  Ratio  
2016 Federal 
level  SDR 2.48 
billion  SDR 2.20 
billion  89% SDR 282 
million  11% 
Cantonal 
level  SDR 1.91 
billion  SDR 1.68 
billion  88% SDR 230 
million  12% 
Other   - - - - - 
Total  [SDR 4.39 
billion]  [SDR 3.88 
billion]  [88%]  [SDR 512 
million]  [12%]  
2017 Federal 
level  SDR 2.01 
billion  SDR 1.82 
billion  90% SDR 194 
million  10% 
Cantonal 
level  SDR 2.61 
billion  SDR 2.28 
billion  87% SDR 328 
million  13% 
Other   - - - - - 
Total  [SDR 4.62 
billion]  [SDR 4.10 
billion]  [89%]  [SDR 522 
million]  [11%]  
 
285 Fedlex, "Message concernant la révision totale de la loi fédérale sur les marchés publics". Viewed at: 
https://www.fedlex.admin.ch/eli/fga/2017/417/fr ; and Federal Law of 21  June 2019 on Public Procurement, 
Article  52. 
286 Federal Office for Gende r Equality, "Directive: Contrôles du respect de l'égalité salariale entre 
femmes et hommes dans les marchés publics de la Confédération". Viewed at: 
https://www.ebg.admin.ch/ebg/fr/home/themes/travail/egalite -salariale/controles -etatiques -dans-marches -pu
blics.html . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 104 - 
 
 Year Level Total value of 
procurement 
(GPA -covered 
and 
non-covered)  GPA-covered procurement  
Total value  Awarded under open 
and selective 
tendering  Awarded under 
limited tendering  
Total value  Ratio  Total value  Ratio  
2018 Federal 
level  SDR 3.24 
billion  SDR 2.82 
billion  87% SDR 416 
million  13% 
Cantonal 
level  SDR 2.17 
billion  SDR 1.87 
billion  86% SDR 300 
million  14% 
Other   - - - - - 
Total  [SDR 5.41 
million]  [SDR 4.69 
billion]  [87%]  [SDR 716 
million]  [13%]  
2019 Federal 
level  CHF 7.38 
billion (SDR 
4.22 billion)  CHF 6.47 billion 
(SDR 3.70 
billion)  88% CHF 907 
million (SDR 
518 billion)  12% 
Cantonal 
level  CHF 4.09 
billion (SDR 
2.33 billion)  CHF 3.59 billion 
(SDR 2.05 
billion)  88% CHF 500 
million (SDR 
286 million)  12% 
Other   - - - - - 
Total  [CHF 11.47 
billion (SDR 
6.55 billion)]  [CHF 10.06 
billion (SDR 
5.75 billion)]  [88%]  [CHF 1.41 
billion (SDR 
804 million)]  [12%]  
2020 Federal 
level CHF 7.16 billion  CHF 5.20 
billion (SDR 
2.97 billion)  CHF 4.16 billion 
(SDR 2.38 
billion)  80% CHF 1.04 
billion (SDR 
592 million)  20% 
Cantonal 
level CHF 5.46 billion  CHF 5.46 
billion (SDR 
3.12 billion)  CHF 4.84 billion 
(SDR 2.77 
billion)  89% CHF 619 
million (SDR 
354 million)  11% 
Other   - - - - - 
Total  [CHF 10.66 
billion (SDR 
6.09 billion)]  [CHF 9.00 
billion (SDR 
5.15 billion)]  [84%]  [CHF 1.66 
billion (SDR 
945 million)]  [16%]  
Note:  The terms "open tendering", "selective tendering", and "limited tendering" are used here as they 
have been defined in Article  I:(h), (m), and (q) of the  GPA 2012.  
Source:  Information provided by the Swiss authorities, including in their notifications on procurement 
statistics to the Committee on Government Procurement.  
3.175.   In 2020, total federal procurement payments for the purchase of goods and services 
amounted to CHF  7.16 billion. The estimated value of procurement at federal level awarded and 
covered by the GPA in 2020 is CHF  5.20 billion. Of this, contracts worth CHF  1.04 billion were 
awarded in direct award procedures.287 The fact that exceptions were applied on grounds of 
protection of human health and for extreme urgency due to the COVID -19 pandemic explain to a 
large extent the increase in direct award contracts in 2020. The percentage of the procurement at 
federal leve l awarded and covered by the GPA is estimated at around 50% of the total value of all 
procurements at that level. At the cantonal level, procurement awarded and covered by the GPA 
amounted CHF  5.46 billion. Of this, contracts worth CHF  619 million were awa rded in direct award 
procedures.288 
3.3.7   Intellectual property rights  
3.3.7.1   Trade -related intellectual property rights  
3.176.   Switzerland ranks as the world's most -innovative economy among 132  economies featured 
in the 2021 Global Innovation Index elaborated by the World Int ellectual Property Organization 
(WIPO).289 Chart  3.4 illustrates the relation between innovation inputs and outputs, where 
economies above the line have effectively translated innovations into more and higher quality 
outputs. Switzerland is the economy with  the highest position above the curve.  
 
287 WTO document GPA/STAT (20)/CHE/1, 28  July 2021.  
288 WTO document GPA/STAT (20)/CHE/1, 28  July 2021.  
289 WIPO (2021),  Global Innovation Index 2021 .  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 105 - 
 
 Chart 3.4 The positive relationship between innovation and development  
 
Source:  2021 Global Innovation Index in November 2021.  
3.177.   Since the last Review in 2017, developme nts in IP have played an important role both in 
Switzerland's domestic legislative activity as well as in its international trade policy. Since 2017, the 
"Swissness legislation" strengthens the protection of the "Swiss Made" designation and the Swiss 
cross. It provides clear rules for the use of Swiss indications of source when used for marketing 
purposes, which in turn contributes to preventing wrongful use of the "Swiss Made" brand, ensuring 
its long -term value. In this context, besides the revision of th e Federal Law on the Protection of 
Trademarks and Indications of Source290 and of the Federal Law on the Protection of Coats of Arms 
and other Public Signs291, several ordinances were adopted to extend this regulation to watches292, 
food products293, cosmetics294, and non -agricultural products.295 Similarly, on 1  April 2020, the 
Federal Law on Copyright and Related Rights was partially revised to adapt it to the latest 
technological developments and to make the fight against online piracy more effective.  
3.178.   In the international sphere, Switzerland has continued its strategy to strengthen and extend 
its network of bilateral FTAs, which contain comprehensive IP provisions, and has remained active 
in the TRIPS Council, particularly sharing its national experiences on t he topic of IP and innovation.296 
 
290 Federal Law on the Protection of Trademarks and Indications of Source) (RS 232.11 ) (Status as of 
1 January  2017).  
291 Federal Law on the Protection of Coats of A rms and Other Public Signs) (RS 232.21 , RO 2015 3679 ) 
(Status as of 1  January  2017).  
292 Ordinance on the Use of the Designation "Swiss" for Watches) (RS 232.119 ) (Status as of 
1 January  2017).  
293 Ordinance on the Use of Swiss Indications of Source for Food Products) (RS 232.112.1 ) (Status as of 
1 January  2017).  
294 Ordinance on the Use of Swiss Indications of Source for Cosmetic Product s) (RS 232.112.3 ) (Status 
as of 1  January  2017) . 
295 Ordinance on the Registration of Appellations of Origin and Geographical Indications for 
Non-Agricultural Products (Ordinance on Non -Agricultu ral PAOs and PGIs)) (RS 232.112.2 ) (Status as of 
1 January 2017).  
296 See, for example, WTO documents IP/C/M/87, IP/C/M/87/Add.1 in 2017; IP/C/M/90, 
IP/C/M/90/Add.1 in 2018; IP/C/M/94, IP/C/M/94 /Add.1 in 2020; and IP/C/M/100, IP/C/M/100/Add.1 in 2021.  
10203040506070
7 8 9 10 11 12GII score
GDP per capita (PPP$ logarithmic scale)Graph 3. [CHE] The positive relationships between innovation and development
Innovation leaders Performing above expectations for level of development
Performing at expectations for level of development Performing below expectations for level of developmentSwitzerland
Source: 2021 Global Innovation Index in November 2021. Viewed at: https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2021/ch.pdf.WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 106 - 
 
 In 2021, Switzerland joined the Geneva Act of the Lisbon Agreement on Appellations of Origin and 
Geographical Indications (Geneva Act) that entered into force with respect to Switzerland on 
1 December  2021. The accession re quired, in particular, changes in the Federal Act and in the 
Ordinance on the Protection of Trademarks and Indications of Source. Likewise, the Marrakesh 
Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired, or 
Otherw ise Print Disabled (Marrakesh Treaty) and the Beijing Treaty on Audiovisual Performances 
(Beijing Treaty) entered into force with respect to Switzerland on 11  May 2020.  
3.179.   As a result of the customs union, Liechtenstein's IP system is deeply integrated and 
intertwined with the Swiss IP system and maintains highly developed IP institutions and policies 
reflecting its status as an advanced – albeit small – economy. On 22  September  2021, Liechtenstein 
accessed both the Marrakesh Treaty and the Beijing Treaty tha t entered into force on 
22 December  2021.  
3.3.7.2   Economic context  
3.180.   Given the diverse forms that IP takes in international trade, including IP embedded in 
manufactured goods, IP royalties recorded as services trade, and consumer downloads of IP  content, 
it is diff icult to establish a comprehensive tally of the full IP component of Swiss trade.  
3.181.   Intellectual property rights (IPRs) are a strong component of the Swiss economy. 
Switzerland is a net exporter of IP. Trade receipts from IP royalties and licensing fees gre w by 35% 
between 2015 and 2018, when they reached almost USD  31 billion. In 2019, they reached 
USD 29 billion and, due to the economic effects of the pandemic, in 2020 Switzerland exported 
USD 23 billion, sustaining its positive balance, as shown on Chart  3.5.  
Chart 3.5 Charges for the use of intellectual property, n.i.e, 2015 -20 
(USD billion)  
 
Source:  WTO Stats. Viewed at: https://stats.wto.org/ . 
3.182.   Rankings of the Swiss economy in the global indices of innovation and competitiveness over 
the reporting period have confirmed its status as a global leader in these areas. Switzerland has 
retain ed its overall 1st place ranking in both the Global Competitiveness Index in the years 2013 -18 
and the Global Innovation Index in the years 2011 -21.297 Switzerland has remained in the top three 
 
297 World Economic Forum (2017) and Global Innovation Index (2021).  
 
 
WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 107 - 
 
 of the innovation raking for more than a decade, delivering pea k innovation performance298 in Europe 
in the areas of knowledge and technology outputs and creative outputs, while also leading the top 
three innovation economies of the 51  high-income group economies. Furthermore, according to a 
recent report by UNCTAD299, Switzerland is one of the economies best prepared to face the new 
digital frontiers as the country already takes advantage of digitalization and connectivity to develop 
frontier technologies, ranging from artificial intelligence, the Internet of Things, bl ockchain, 
nanotechnology, and gene editing.  
3.183.   Swiss gross expenditure on R&D remained stable at around 3% of GDP, during the reporting 
period.300 In 2019, Switzerland spent CHF  22.9 billion on R&D, which constitutes an increase of 4.3% 
compared with 2017.301 R&D activities were mainly carried out by private enterprises (68%) and 
higher education institutions (29%).  
3.184.   In 2019, Swiss citizens voted in favour of the Federal Act on Tax Reform and AHV 
Financing302, which introduced as from 1  January  2020 the cantonal "patent box" regime, which 
provides tax reductions for qualifying IP income and associated local R&D costs. The goal is to 
maintain and enhance the attractiveness of Switzerland as a hub for R&D -intensive industries. 
However, in 2016 Liechtenstein eliminat ed the IP box regime foreseen in its fiscal code303, which 
applied only to companies that carried out R&D work primarily in Liechtenstein as it was considered 
that the previous regulation was incompatible with Action 5 harmful tax practices included in the 
Base Erosion and Profit Shifting (BEPS) of the OECD.304 
3.3.7.3   Structure and use of the IP system  
3.185.   The competent authorities for IP issues in Switzerland and Liechtenstein are, respectively, 
the Swiss Federal Institute of Intellectual Property (FIIP) of the Federal Department (Ministry) of 
Justice and Police305, and the Bureau of Intellectual Property of the Liechtenstein Office (Ministry) of 
Economic Affairs.306 Under the 1978 bilateral Treaty on the Protection Conferred by Patents for 
Inventions, concluded wi thin the framework of the Customs Union Treaty, Liechtenstein and 
Switzerland form a unitary territory for the purposes of patent protection: valid patents extend to 
both territories.307 Patent applications made through the national, regional (i.e. under th e European 
Patent Convention), or international (i.e. under WIPO's Patent Cooperation Treaty) avenues must 
jointly designate the two countries. With the exception of patents for inventions, Liechtenstein has 
its own legislation for, inter alia, copyrights,  trademarks, industrial designs, and topographies of 
integrated circuits. In addition, Liechtenstein implements the rules of the EEA on IP.  
3.186.   Switzerland and Liechtenstein are members of WIPO and are parties to most of its treaties308, 
notably the Patent Coo peration Treaty and the Protocol Relating to the Madrid Agreement Concerning 
the International Registration of Marks, as well as to other international conventions of relevance to 
IP.309  
3.187.   The number of patent applications, patents granted, and trademark and  industrial design 
applications between 2016 and 2020 in Switzerland and Liechtenstein are shown in Tables  3.19 
and 3.20. Overall levels of filings in Switzerland have remained stable or increased slightly since 
 
298 Global Innovation Index (2021), pp. 21 -22. 
299 UNCTAD (2021), Technology and Innovation Report. Catching Technologies Waves: Innovat ion with 
Equity , p. 10. 
300 Federal Statistical Office (FSO) (2021), Recherche et développement en Suisse en 2019 , p. 5. 
301 FSO (2021), "CHF 22.9 Billion Spent on Research and Development in Switzerland in 2019", 27  May.  
302 FF 2018 6077, Loi fédérale relative à la réforme fiscale et au financement de l'AVS (RFFA) du 
28 septembre  2018.  
303 Liechtensteinisches Landesgesetzblatt  (LLG) (2016), No. 524, Law of 4  November  2016 on the 
Amendment of the Tax Act. Viewed at: https://www.gesetze.li/chrono/2016524000 . 
304 See government explanation of the proposed bill in Bericht und Antrag  der Regierung  an den  Landtag 
des Fürstentums Liechtenstein betreffend  Abänderung des Steuergesetzes (No.  91/2016), pp 37 -40. 
305 IPI. Viewed at: www.ipi.ch . 
306 Principality of Liechtenstein. Viewed at: www.avw.llv.li . 
307 IPI. Viewed at: https://www.ige.ch/de/uebersicht -geistiges -eigentum/ein -leitfaden -fuer-innovative -
und-kreative/patente ; and Principality of Liechtenstein. Viewed at: http://www.llv.li/#/1691/patentrecht . 
308 WIPO, About WIPO . Viewed at: https://www.wipo.int/about -wipo/en/ . 
309 For a detailed list of IP -related treaty membership, see for Switzerland: 
http://www.wipo.int/wipole x/en/profile.jsp?code=CH ; and for Liechtenstein: 
http://www.wipo.int/wipolex/en/profile.jsp?code=LI . WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 108 - 
 
 2016, with patent grants growing the most, w hile filings abroad by Swiss residents have increased 
significantly, notably in the area of trademarks.  
Table 3.18 Switzerland: Applications for trademarks, industrial designs, and patents, 
and patents granted, 2016 -20 
 2016  2017  2018  2019  2020  
Trademark applications   
Resident  36,761  42,010  41,468  40,712  45,031  
Non-resident  52,692  52,490  54,566  55,614  56,090  
Total 89,453  94,500  96,034  96,326  101,121  
Abroad  449,919  446,173  458,006  489,114  451,681  
Industrial design applications   
Resident  3,817  4,301  3,458  3,334  2,915  
Non-resident  7,920  8,773  8,239  9,284  7,245  
Total 11,737  13,074  11,697  12,618  10,160  
Abroad  141,847  154,973  150,895  145,363  140,140  
Patent applications   
Resident  8,729  8,622  9,204  9,617  9,492  
Non-resident  309 291 332 348 301 
Total  9,038  8,913  9,536  9,965  9,793  
Abroad  38,491  35,961  37,550  36,530  35,257  
Patents granted   
Resident  4,327  4,473  4,872  5,199  5,444  
Non-resident  201 230 194 179 198 
Total 4,528  4,703  5,066  5,378  5,642  
Abroad  21,630  21,688  21,237  22,144  22,672  
Source:  WIPO, Statistical Country Profiles: Switzerland , November  2021. Viewed at: 
https://www.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=CH . 
3.188.   For Liechtenstein, the data illustrate an increase of filings by residents, particu larly in the 
area of trademarks and patent grants (8% and 19%, respectively), while overall usage of the 
IP system remains stable at a level corresponding to the size of its market.  
Table 3.19 Liechtenstein: A pplications for trademarks, industrial designs, and patents, 
and patents granted, 2016 -20 
 2016  2017  2018  2019  2020  
Trademark applications   
Resident  490 388 527 421 365 
Non-resident  8,269  8,476  7,940  8,654  8,340  
Total 8,759  8,864  8,467  9,075  8,705  
Abroad  11,571  18,708  11,446  13,446  17,101  
Industrial design applications   
Resident  152 46 261 120 62 
Non-resident  1,078  1,327  716 872 809 
Total 1,230  1,373  977 992 871 
Abroad  4,191  6,219  4,523  8,884  2,908  
Patent applications   
Resident  377 380 431 437 437 
Non-resident  .. .. .. .. .. 
Total  377 380 431 437 437 
Abroad  955 847 922 1,012  979 
Patents granted   
Resident  140 167 204 232 199 
Non-resident  .. .. .. .. .. 
Total 140 167 204 232 199 
Abroad  438 529 466 520 505 
.. Not available.  
Source:  WIPO, Statistical Country Profiles: Liechtenstein , November  2021.  
3.3.7.4   International initiatives and WTO participation  
3.189.   While multilateral initiatives and organizations in the field of trade and IP remain the 
preferred fora of activity for Switzerland, Swiss foreign trade strategy resolved in 2004 to also pursue 
the extension and strengthening of its network of comprehensiv e bilateral FTAs in the absence of WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 109 - 
 
 multilateral progress, with the express inclusion of IP protection. The Federal Council confirmed this 
approach most recently in 2016, acknowledging that while the importance of FTAs for IP protection 
or government procur ement escapes a quantitative measurement, a qualitative assessment permits 
the conclusion that FTAs improve the regulatory framework also in these areas, "providing Swiss 
market actors with an improved, predictable and legally protected access to foreign m arkets".310 The 
Swiss Federal Council was further expressly mandated in a 2012 "motion"311 to include adequate 
and effective protection of geographical indications (GIs) in all future bilateral FTAs. In the period 
under review, this strategy was pursued in a greements that Switzerland and Liechtenstein signed 
as members of EFTA, as well as in Swiss bilateral FTAs or bilateral accords specifically addressing 
the protection of GIs.  
3.190.   In the context of EFTA, Switzerland and Liechtenstein concluded FTAs or trade an d economic 
cooperation agreements with third countries with IP components that range from a general reference 
to IP protection to highly detailed provisions on certain IP sectors.312 During the period under review, 
EFTA agreements with IP provisions were co ncluded with Indonesia313 and Ecuador314, which entered 
into force on 1  November  2020315 and 1  November  2021316, respectively. The provisions on IPRs in 
these agreements cover protection and enforcement, as well as cooperation among the Parties in 
that regard.  They are based on the Agreement on Trade -Related Aspects of Intellectual Property 
Rights (TRIPS  Agreement) and provide for a high level of protection, considering the principles of 
MFN treatment and of national treatment.317 The agreement EFTA countries si gned in 2016 with the 
Philippines and Georgia containing a chapter on the protection of IP also entered into force on 
1 June 2018 and 1  September  2017, respectively. On the other hand, on 23  August  2019318, 
member States of EFTA and of MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay) concluded in 
substance the negotiations on a comprehensive FTA that included a chapter on IPRs covering 
copyrights, trademarks, patents, industrial designs, GIs, indications of source, cooperation, and 
enforcement of IPR s, including border measures.  
3.191.   In response to the specific mandate to improve the protection of GIs in the context of 
bilateral agreements, Switzerland concluded an Agreement with Georgia regarding the mutual 
recognition and protection of GIs, appellations of o rigin, and indications of source that entered into 
force on 1  September  2019.319 Similar to the previous such treaties concluded with the 
Russian  Federation in 2010320 and with Jamaica in 2013321, the Agreement lists indications from both 
countries that the p arties agree to protect, and specifies a high level of protection against any use 
of these GIs on identical or comparable products that do not originate from the region indicated by 
the GI.  
3.192.   Switzerland also maintains one of the largest networks of bilatera l investment promotion 
and protection agreements (BITs)  (Section  2.4.1) , which also cover IPRs as part of investment 
protection in the majority of cases. The purpose of the BITs is "to afford international law protection 
 
310 Federal Council (2016), Report Neue Wachstumspolitik 2016 -2019, 22 June, p. 25.  
311 Motion 12.3642 dated 19  June 2012 of the Council of States' Legal Affairs Committee "Regulating the 
use of geographical indications in international Treaties".  
312 For a list of FTAs containing an IP element and in force within the EFTA framework, see: 
http://www.efta.int/free -trade/free -trade-agreements . For specific references to the IP components, see the 
list at: https://www.ige.ch/de/recht -und-politik/immaterialgueterrecht -international/bilaterale -abkommen . 
313 Signed 16  December  2018.  
314 Signed 25  June 2018.  
315 For a complete overview of treaties signed by Switzerland that included in vestment provisions, see: 
https://investmentpolicy.unctad.org/international -investment -agreements/countries/203/switzerland . 
316 EFTA, "EFTA -Indonesia Comprehensive Economic Partnership Agreement Enters into Force", 
1 November. Viewed at: 
https://www.efta.int/Free -Trade/news/EFTA -Indonesia -Comprehensive -Economic -Partnership -Agreement -enter
s-force-526266#:~:text=A%20new%20free%20trade%20agreement,Indonesia%20on%2016%20December%
202018 . 
317 See description of the individual agreements at: 
http://www.efta.int/free -trade/free -trade-agreements . 
318 EFTA, MERCOSUR . Viewed at: https://www.efta.int/free -trade/ongoing -negotiations -talks/mercosur . 
319 Agreement between the Swiss Federal Council and the Government of Georgia on the mutual 
recognition and  protection of geographical indications, appellations of origin and indications of source 
(RS 0.232.111.193.60 ) (in French).  
320 Agreement of 29  April 2010 between the Swiss Confederation and the Russian  Federation on the 
Protection of Geographical Indications and Appellations of Origin ( RS 0.232.111.196.65 ) (in French) . 
321 Agreement between the Swiss Federal Council and the Government of Jamaica on the Protection and 
Reciprocal Recognition of Geographical Indications concluded 23  September  2013 (RS  0.232.111.194.58).  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 110 - 
 
 from non -commercial risks associate d with investments made by Swiss nationals and Swiss -based 
companies in partner countries".322 Since 2010, a  clarification has been developed in these 
agreements that states that the article on expropriation and compensation does not apply to the 
issuance of compulsory licences that have been granted in relation to IP consistently with the 
TRIPS  Agreement.323  
3.193.   During the review period, Switzerland actively participated in the TRIPS Council discussions 
on, inter alia, supporting micro, small and medium -sized enterprises (MSMEs) to take advantage of 
IPRs for their business activity,324 and co -sponsored several initia tives such as the promotion of 
public -private collaborations in IP innovation and commercialization325 and the societal value of IP 
in the new economy.326 
3.194.   In compliance with Article  63.2, Switzerland notified consolidated versions of amended and 
new laws or regulations to the TRIPS Council in 2022327 and updated its responses to the Checklist s 
of Questions on GIs in February 2019328 and of Issues on Enforcement in March  2022.329 Switzerland 
has also updated the Council on its implementation of Article  66.2 of the TRIPS  Agreement330, and 
reported on its TRIPS -related technical assistance331, which included free -of-charge patent searches 
for WIPO in favour of developing countries, as  well as a number of sustained bilateral projects, 
notably with Colombia and Indonesia.  
3.3.7.5   Copyright and related rights  
3.195.   Issues linked to the Internet and new technologies affecting copyright have occupied the 
Swiss legislative process. A 2010 Swiss Supreme Court decision332 suggesting legislative action to 
"adapt copyright protection to new technologies" as well as various related parliamentary motions333 
led to the establishment of the "Working Group for the Optimization of Collective Management of 
Copyrights  and Neighbouring Rights (AGUR12)"334 to assess the need for revising the copyright 
legislation in response to the digital environment, with a particular focus on the need to curb online 
 
322 SECO, Switzerland's Investment Treaty Policy . 
323 The Swiss State Secretariat's Working Group on BITs has now introduced a standard BIT clause to 
that effect. Report of the Swiss State Secretariat's Working Group on BITs, 7  March  2016, Section  3.1.2, p. 6, 
fn 195. 
324 See Switzerland's intervention in the TRIP S Council on 15  October  2020 (WTO documents IP/C/M/96, 
14 December 2020; and IP/C/M/96/Add.1,16  February 2021).  
325 See Switzerland's intervention in the TRIPS Council on 17  October  2019 (WTO documents IP/C/M/93, 
18 November 2019; and IP/C/M/93/Add.1, 9  December 2019).  
326 See Switzerland's intervention in the TRIPS Council on 13  February  2019 (WTO documents 
IP/C/M/91, 21  February  2019; and IP/C/M/91/Add.1, 2  April 2019).  
327 WTO documents IP/N/1/CHE/44, IP/N/1/CHE/I/3; IP/N/1/CHE/45, IP/N/1/CHE/G/42; 
IP/N/1/CHE/ 43, IP/N/1/CHE/G/41, IP/N/1/CHE/T/15; IP/N/1/CHE/42, IP/N/1/CHE/G/40, IP/N/1/CHE/T/14; and 
IP/N/1/CHE/41, IP/N/1/CHE/G/39, 1  March 2022; IP/N/1/CHE/39, IP/N/1/CHE/C/11; IP/N/1/CHE/40, 
IP/N/1/CHE/G/38; IP/N/1/CHE/38, IP/N/1/CHE/D/12; IP/N/1/CHE/36, IP/N/1/C HE/P/24; and IP/N/1/CHE/37, 
IP/N/1/CHE/G/37, 28  February 2022; IP/N/1/CHE/29, IP/N/1/CHE/C/10; IP/N/1/CHE/33, IP/N/1/CHE/T/13, 
IP/N/1/CHE/G/36; IP/N/1/CHE/28, IP/N/1/CHE/D/11, IP/N/1/CHE/T/12; IP/N/1/CHE/26, IP/N/1/CHE/T/10; 
IP/N/1/CHE/27, IP/N/1/CHE/T/11;  IP/N/1/CHE/30, IP/N/1/CHE/G/35; IP/N/1/CHE/35, IP/N/1/CHE/P/23; 
IP/N/1/CHE/32, IP/N/1/CHE/P/22; IP/N/1/CHE/31, IP/N/1/CHE/E/6, IP/N/1/CHE/P/21; and IP/N/1/CHE/34, 
IP/N/1/CHE/U/9, 25  February  2022.  
328 WTO document IP/C/W/117/Add.13/Rev.1/Corr.1, 11  February  2019.  
329 WTO document IP/N/6/CHE/3, 4 March 2022.  
330 WTO documents IP/C/W/631/Add.6 in 2017; IP/C/W/646/Add.1 in 2018; IP/C/W/656 in 2019; 
IP/C/R/TTI/CHE/1 in 2020; and IP/C/R/TTI/CHE/2  in 2021.  
331 WTO documents IP/C/W/632/Add.5 in 2017; IP/C/W/647/Add.1 in 2018; IP/C/W/655 in 2019; 
IP/C/R/TC/CHE/1 in 2020; and IP/C/R/TC/CHE/2 in 2021.  
332 Federal Supreme Court decision BGE 136 II 508 "Logistep" of 2010, suggesting t hat it was the task 
of the legislator to take the necessary measures to provide copyright protection adapted to the new 
technologies.  
333 Postulat Savary (10.3263) of 12  May 2010 on "Does Switzerland need a law against illegal music 
downloading?"; Postulat R ecordon (12.3326) of 9  May 2012 for "A copyright protection that is equitable and 
compatible with Internet users' freedom"; Postulat Glättli (12.3173) of 16  May 2012 for "Fair compensation of 
artists while respecting the private sphere of Internet users".  
334 Working Group "AGUR12" established by the Federal Department of Justice and Police on 
8 August  2012.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 111 - 
 
 piracy,  provide fair compensation for artists and copyright owners, an d improve public access to 
works.  
3.196.   After seven years of legislative work, the Federal Assembly  adopted on 27  September  2019 
a revision of the Swiss copyright law. The revised Copyright Act strengthens the rights of cultural 
creators and the cultural economy. In addition to measures against online piracy, it extends the 
term of protection for performers and producers from 50 to 70  years and also brings important 
innovations for photographers, namely the protection of all photographs, both anal ogue and digital, 
whether they are professional or amateur photographs. The criterion of individuality is no longer a 
prerequisite for copyright protection for photographs. The extension of the protection of photographs 
is one of the most important changes  in the revised law. The revised Copyright Act facilitates access 
to works, for example, through an index privilege, a regulation on the use of orphan works, and an 
exception for scientific purposes in relation to the use of text and data mining technologi es. Along 
with the revision, the Federal Assembly  also approved two WIPO agreements: the Beijing Treaty on 
Audiovisual Performances and the Marrakesh Treaty to Facilitate Access to Published Works for 
Persons Who Are Blind, Visually Impaired or Otherwise P rint Disabled. The revised Copyright Act 
entered into force on 1  April 2020.  
3.197.   Copyright protection in Liechtenstein is provided by the Law of 19  May 1999 on copyright 
and related rights and its related ordinance. During the review period, Liechtenstein imp lemented 
two EU Directives in the area of copyright. In implementing EU Directive 2011/77335, which aims to 
better protect young performing artists, Liechtenstein increased the term of protection for music 
compositions with text, and the term of performers'  rights with regard to a recorded performance 
from 50 to 70 years.336 The rights of phonogram producers were equally extended from 50 to  
70 years, coupled with provisions to ensure that the performing artists will participate in the benefits 
generated from this additional period of exploitation regardless of prior contractual arrangements.337 
In implementing EU Directive 2012/28 ("Orphan Works Directive") Liechtenstein introduced 
provisions permitting legal online access to orphan works available in online li braries and archives 
where the inability to identify the authors has been established in one EEA State and the work has 
been listed in the Orphan Works Database338 of the EUIPO Observatory.339 These amendments 
entered into force on 1  September  2014 and 1  October 2015, respectively. Liechtenstein recognizes 
the collective exploitation of authors' rights and neighbouring rights as well as the resale right. 
International exhaustion is applied for copyrights and neighbouring rights.   
3.3.7.6   Trademarks  
3.198.   During the reporti ng period, Switzerland continued with the implementation of the new 
trademark legislation aiming to improve the protection of the "Swiss brand" by regulating in more 
detail the use of the indication of source "Swiss", of the Swiss cross, and of the Swiss c oat of arms 
on goods and services, which entered into force on 1  January  2017.340 The new legislation provides 
detailed rules on "Swissness" for natural products, foodstuffs, and industrial products, as well as 
services. With the revision of the Federal Act  on the Protection of the Swiss Coats of Arms and Other 
Public Signs, the Swiss cross may now be used on Swiss goods and services, making it an important 
advertising tool for producers.341 The Swiss coat of arms remains reserved for use by the Swiss 
Confede ration, although companies that have been using the Swiss coat of arms for decades as part 
of their company symbol to label Swiss goods and services have been granted, as an exception and 
only upon well -founded request, a right of continued use. Individual  production steps can be 
 
335 EU Directive 2011/77 ( amending Directive 2006/116/EC on the term of protection of copyright and 
certain related rights ). 
336 The term of protection is calculated to begin, in the case of the music compositions with text, after 
the death of the longest surviving author, and in the case of performers' right, after the first publication or 
communication to the public of the record ing. 
337 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" 23/2014 and 88/2014, respectively. Viewed at: 
http://bua.gmg .biz/BuA/default.aspx?nr=23&year=2014&content=496979026 .  
338 EUIPO, Orphan Works Database. Viewed at: https://euipo.europa.eu/orphanworks/ .  
339 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" 23/2014 and 88/2014. Viewed at: 
http://bua.gmg.biz/BuA/default.aspx?nr=88&year=2014&content=1314132476 . 
340 For a more detailed e xplanation, see Swiss Federal Institute of Intellectual Property (2015), "The 
New 'Swissness' Legislation  – The Most Important Changes", 2  September.  
341 Coat of Arms Protection Law (RS 232.21), revision entering into force 1  January  2017. Formerly, use 
of the Swiss cross was only permitted for Swiss services.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 112 - 
 
 promoted as "Swiss" if that step is completely performed in Switzerland (e.g. "designed in 
Switzerland"), although the Swiss cross may not be used for such products.  
3.199.   As regards services, under the 2017 "Swissness legislation" a co mpany can offer Swiss 
services as long as its headquarters are located in Switzerland and the company is actually 
administered from Switzerland. Exceptions apply with respect to subsidiaries of Swiss parent 
companies.342  
3.200.   In Liechtenstein, the substantive l aw applicable to the protection of trademarks and GIs is 
based on the corresponding Swiss regulations, and the legal prerequisites for protection are, 
therefore, comparable. To be protected, a trademark must be registered with the Liechtenstein 
registry at  the Office of Economic Affairs. Liechtenstein follows the principle of international 
exhaustion. Since the last Review, Liechtenstein amended its Trademark Protection Act,343 to 
harmonize provisions with prior Swiss extensions of the IP enforcement compete nces of its customs 
administration, which also handles Liechtenstein's customs matters under the customs union.344 The 
amendment also changed a requirement for foreign applicants to appoint an agent or representative 
resident in Liechtenstein, which the EFT A Surveillance Agency (ESA) had found to be incompatible 
with EEA rules.345 These amendments entered into force on 1  January  2016.  
3.201.   Since Liechtenstein's food and agricultural products qualify as "Swiss" under the definition 
of the Swiss Trademark Law by vi rtue of being produced in the custom union territory346, 
Liechtenstein has introduced amendments to its trademark provisions that largely mirror the 
"Swissness legislation" and entered into force concurrently on 1  January  2017.347 
3.3.7.7   Geographical indications  
3.202.   The introduction of the "Swissness legislation" described above further develops the 
traditional two -pronged system of protection for GIs in Switzerland348, which consists of general 
protection of GIs under the Trademark Law for all products and  services, not requiring registration, 
and the protection of GIs for wines and spirits, agricultural products, and foodstuffs under several 
specialized laws and ordinances.  
3.203.   In addition to the creation of the geographical mark, the "Swissness legislation" also 
introduces a new register for GIs for non -agricultural products, similar to the existing register for 
agricultural products and processed agricultural products maintained by the F OAG, which will permit 
the registration of GIs for goods such as watches  and textiles.349 The new register will be maintained 
by the FIIP.  
3.204.   The Federal Council, on 17  June 2016, also approved a partial revision of the Ordinance on 
the Use of the Name "Swiss" for Watches350, which entered into force on 1  January  2017, and which 
aims to strengthen the GI "Swiss" for watches and watch movements, in line with the new 
"Swissness" legislation. In future, at least 60% of the costs of manufacturing a complete watch (as 
an end product) must be generated in Switzerland – unlike previously, whereby this rule applied 
only to the watch movement itself. The movement remains important, however, as at least half of 
its value must consist of components made in Switzerland, and at least 60% of the costs to 
manufacture it must be generated in Switzer land. In addition, the technical development of a "Swiss 
 
342 Trademark Protection Law (RS  232.11), Article  49. 
343 Trademark Protection Act (LR 232.11).  
344 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" Heft  2015/48, p. 6. Viewed at: 
http://bua.gmg.biz/BuA/default.aspx?year=2015&nr=48&content=1231677879 .  
345 A further complaint regarding the new version of Article  39 of the Trademark Protection Act has been 
launched and is pending with ESA. See ESA Document No.  799735 "Letter of formal notice to Liechtenstein 
regarding the 2016 Trademark Act" dated 12  October  2016 for the procedural history of the complaints.  
346 "The place of origin or processing for Swiss indications of source for natural products and foodstuffs 
is the Swiss territory and customs union areas." Trademark Protection Law (RS  232.11), Article  48(4).  
347 See government explanation of the proposed bill in "Berichte un d Anträge der Regierung an den 
Landtag" Heft 2015/48, p. 6. Viewed at:  
http://bua.gmg.biz/BuA/default.aspx?nr=115&year=2016&content=1742765016 . 
348 WTO documents WT/TPR/S/280 19 March 2013; and WT/TPR/S/355, 11 April 2017.  
349 Trademark Protection Law (RS  232.11), Article  50a. 
350 Ordinance on the Use of the Designation "Swiss" fo r Watches ( RS 232.119 ). WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 113 - 
 
 Made" watch and a "Swiss Made" movement must, in future, also take place in Switzerland. The 
definition of "watch" in the "Swiss Made" Ordinance has also been extended to include smart watches 
in light of recent technological developments.  
3.205.    On the other hand, in 2021 Switzerland joined the Geneva Act of the Lisbon Agreement on 
Appellations of Origin and Geographical Indications (Geneva Act) that entered into force with respect 
to Switzerland on 1  December 2021.  
3.206.   Several FTAs with individual countries and groups of countries contain provisions on GIs.351 
With respect to GIs, most of the recent bilateral agreements signed by Switzerland and Liechtenstein 
in the context of EFTA provide GIs for agricultural  products and foodstuffs with a higher level of 
protection than that required by the TRIPS  Agreement, by requiring means to prevent their use on 
goods that are not originating in the place indicated by the designation in question, without the 
requirement o f confusion as regards the geographical origin of the good. The bilateral agreement 
concluded between Switzerland and China follows the same pattern.  
3.207.   With respect to Liechtenstein, information provided in the previous Reviews remains 
relevant.352  
3.3.7.8   Patents  
3.208.   The Federal Law on Patents of 1954 and its Ordinance governing patent protection in 
Switzerland and Liechtenstein remained substantially unchanged during the reporting period.353 The 
Swiss patent examination procedure is currently being reviewed fol lowing the motion adopted on 
21 March  2019 by the Federal Assembly  titled "in favour of a modern Swiss patent". The Federal 
Council opened the consultation procedure on the partial revision of the Patents Act on 
14 October  2020. According to the Swiss law,  the novelty of an invention is not examined by the 
FIIP; it is therefore up to the patent applicant to ensure that the criteria are met. Under the proposed 
revision354, the IPI will in future examine applications for all patentability requirements. The app licant 
could eventually contest the decision of the FIIP before the Federal Administrative Court. This is in 
line with international standards and leads to increased clarity and legal certainty for patent owners 
and third parties. As a result, it will be m ore difficult to challenge Swiss patents and they will be 
enforced more easily.355 At its meeting on 18  August  2021, the Federal Council took note of the 
results of the consultation procedure on the partial revision of the patent law and decided to adapt 
the content of the preliminary draft to the criticisms expressed by the participants of the consultation 
procedures. It is expected that the Federal Department of Justice and Police will submit a proposal 
to the Federal Council by the end of 2022.356  
3.209.   Since 2 012, the Swiss Federal Patent Court (FPC) has replaced the 26  cantonal courts as the 
national special court competent for patent litigation at first instance.357 In the over 243  cases358 
since its establishment, the Court, which permits proceedings and pre -trial procedural acts in 
English, has developed jurisprudence on, inter alia, its substantive jurisdiction on patents and 
procedural questions such as interim relief, as well the safeguarding of manufacturing and trade 
 
351 See Section  3.3.8.4 for an overview of bilateral agreements concluded or entered into force during 
the reporting period.  
352 WTO documents WT/TPR/S/355/Rev.1, 22  September 2017; WT/TPR/S/280/Rev.1, 16  August  2013; 
and WT/TPR/S/208/Rev.1, 12  March  2009.  
353 Part of the ongoing revision of the Swiss Federal Law on Medicinal Products and Medical Devices is 
the introduction of the possibility to extend the term of protection for supplementary protection certificates for 
paediatric medicines by six months, which h as not yet entered into force. Minor changes have also occurred 
with respect to submissions of electronic documents and the consequential amendments following changes in 
the customs regulations. See the latest version of the Federal Law on Patents RS  232.1 4 at: 
https://www.admin.ch/opc/fr/classified -compilation/19540108/index.html . 
354 Swiss Confederation , Modification de la loi fédérale sur les brevets d 'invention . Viewed at: 
https://www.newsd.admin.ch/newsd/message/attachments/63221.pdf . 
355 Federal Council (2020), "A More Attractive Swiss Patent System for SMEs and Individual Inventors", 
14 Octob er. Viewed at: 
https://www.admin.ch/gov/en/start/documentation/media -releases.msg -id-80700.html . 
356 Federal Council (2021), "Modernising the Patent Examination Procedure", 18 August.  
357 RS 173.41.  
358 See annual reports of the Federal Patent Court since 2011.  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 114 - 
 
 secrets in the submission of evidence and the use of expert opinions by technically trained judges.359 
The panel of judges at the FPC is composed of at least one judge with a legal background and one 
judge with a technical background. The court has reported a high rate of settlements of over 50 % 
of cases.360 
3.210.   According to the European Patent Office's (EPO) Patent Index,361 Switzerland received 8,112 
European patent applications in 2020. This means that it has the largest number of applications per 
million inhabitants (966 applications in 2020 and 9 88 applications in 2019). However, as a result of 
the COVID -19 crisis, the number of patent applications received by EPO in 2020 from Switzerland 
has fallen by 1.9%, which is the first decline in patent applications since 2009. The share difference 
(in per centage) of European patent applications by technology fields between 2019 and 2020 are: 
other consumer goods (16.0%), measurement ( -14.4%), medical technology ( -13.1%), electrical 
machinery apparatus, energy (4.7%), biotechnology (14.3%), pharmaceuticals (2.4%), organic fine 
chemistry (2.4%), handling ( -15.4%), food chemistry (13.7%), basic materials chemistry ( -1.3%), 
other special machines ( -2.7%), civil engineering (1.5%), transport (24.5%), furniture and games 
(14.6%), and chemical engineering ( -24.5%) .  
3.3.7.9   Plant varieties  
3.211.   The information provided in the previous Review on the protection of plant varieties in 
Switzerland remains valid. In preparation for prospective membership in the International Union for 
the Protection of New Varieties of Plants (UPOV),  Liechtenstein is still in the process of establishing 
a system for the protection of plant varieties  to comply with the requirements of the Act of the UPOV 
Convention (1991).  
3.3.7.10   Enforcement  
3.212.   The knowledge -based and innovative character of the Swiss economy and its high degree of 
integration within the global economy make Swiss industry potentially vulnerable to the threat of 
counterfeiting and piracy.362 
3.213.   The laws of Switzerland and Liechtenstein provide for criminal enforcement and border 
measures con cerning IPRs at an advanced level. The intentional infringement of copyright, patents, 
trademarks, and GIs is a criminal offence under the laws of Liechtenstein363 and Switzerland.364  
3.214.   On average, the Swiss FPC rendered its decision in cases of patent infrin gement between 12 
and 24  months. Since the substantial improvements introduced in 2008, the Swiss Customs 
Administration, covering both territories, provides ex officio  and on -demand border measures in 
case of a suspected import, export, or transit of good s infringing not only copyright and trademarks, 
but also patents, designs, GIs, and topographies of integrated circuits.365 Trademark and design 
right holders  have the option to prohibit the import, export, and transiting of commercially produced 
infringing objects for private use and to have those goods withheld by Customs; however, private 
persons in Switzerland who are in possession of  unlawfully manufactured goods can still not be 
legally prosecuted.366  
 
359 Fehlbaum, P. (2014), "Case Law of the New Federal Patent Court in Switzerland", GRUR 
International , June, pp.  533-545. 
360 See annual reports of the Federal Patent Court since 2011.  
361 European Patent Office, Patent Index 2020. Viewed  at: 
https://www.epo.org/about -us/annual -reports -statistics/statistics.html . 
362 OECD (2021), Counterfeiting, Piracy and the Swiss Economy . Viewed at: 
https://www.oecd.org/switzerland/counterfeiting -piracy -and-the-swiss -economy -1f010fc9 -en.htm . 
363 Copyright Act (LR 231.1), Article  61; and Trademark Protection Act (LR  232.11), Article  59 et seq.  
and Article  62 et seq . 
364 Copyright Law (RS 231.1), Article  67; Patent Law (RS 232.14), Article  66 et seq. ; and Trademark 
Protection Law ( RS 232.11), Articles 61 and 64.  
365 Trademark Protection Law (RS 232.11), Articles 70 to 72h; and Copyright Law (RS 231.1), 
Articles  75-77h. See Switzerland's response to questions during the 2013 TPR in WTO document 
TPR/M/280/Ad d.1, p.  83. 
366 Trademark Protection Act (LR 232.11), Article  13, para.  2bis, and Article  71; and Design Act 
(RS 232.12) Article  9, para.  1bis, and Article  47. See explanation on FIIP website. Viewed at: 
https://www.ige.ch/en/intellectual -property/counterfeiting -and-piracy/what -does-the-law-say. WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 115 - 
 
 3.215.   The Swiss Anti -Counterfeiting and Piracy Platform, STOP PIRACY, continues to conduct 
campaigns to raise Swiss consumer awareness regarding counterfeit and pirated goods, focusing in 
particular on the dangers of fake medicines, luxury products, and consumer appliances. The FCA 
reports that the num ber of interventions increased from 2,905 in 2019 to 4,433 in 2020.367 Most 
interventions – both commercial shipments as well as tourist traffic – occur in the categories of 
"handbags, travel bags, wallets, etc." and "watches and jewellery".368  
3.216.   Since 1923, Switzerland and the Principality of Liechtenstein have had a customs union. A 
new agreement between Liechtenstein and the Swiss Confederation on customs assistance in the 
area of IP law entered into force on 21  October 2021369, replacing a previous one appl icable since 
2 November  2005.  
 
 
367 Federal Customs Administration (2020), Counterfeiting and Piracy: 2020 Intellectual Property Law 
Statistics from the FCA , p. 2. Viewed at: https://www.bazg.admin.ch/bazg/en/home/information -
companies/bans --restrictions -and-conditions/intellectual -property --trade-and-culture.html .  
368 Federal Customs Administration (2020), p.  3. 
369 LLG (2021), No.  319, Agreement between the Principality of Liechtenstein and the Swiss 
Confederation on the Assistance Provided by the Federal Customs Administration in the Field of Intellectual 
Property Viewed at: https://www.gesetze.li/chrono/2021319000 . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 116 - 
 
 4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   Overview and recent policy developments  
4.1.  Agriculture (including animal husbandry, fisheries, and forestry) accounts for 0.7% of 
Switzerland's gross value added (GVA) (2020), and some 2.7% of total employment.1 The average 
agricultural income per farm was CHF  74,200 in 2019 up from CHF  70,600 in 2018. According to the 
OECD, total factor productivity growth in agriculture has recently slowed and was estimated to have 
been negative between 2007 and 2016.2 This may be partly due to the high labour cost in 
Switzerland, together with the small farms structure, which is  not conducive to economies of scale. 
Although agriculture plays a relatively minor and declining role in the Swiss economy, the sector is 
regarded as pivotal in terms of food security, and as a provider of positive externalities, such as 
environmental pro tection and the maintenance of cultural landscapes, which are highly valued by 
Swiss society.  
4.2.  In the context of this Review, the authorities indicate that Switzerland's agriculture tends to be 
uncompetitive internationally due to its high production costs,  mainly with high labour costs. In 
addition, they note that Switzerland's small agricultural land per inhabitant leads to a low degree  of 
self-sufficiency (approximately 55%). As a consequence, Switzerland relies on budgetary support 
measures to ensure a c ertain level of domestic production.  
4.3.  Switzerland is a net importer of agricultural and food products (Table  A4.1). In 2020, the share 
of agro -food imports in total imports stood at 7%, and agro -food exports accounted for 4.2% of 
total exports. While import s are spread over most categories of agricultural and processed products, 
agro-food exports consist mostly of processed products for final consumption, mainly coffee, 
non-alcoholic beverages, chocolate, tobacco products, and cheese.  
4.4.  The farm structure is d ominated by relatively small family farms, but the number of large farms 
with 50 or more hectares increased in recent years (Table  4.1). The authorities note that these large 
farms (about 6% of all farms) had approximately 214 ,000 hectares of utilized agri cultural area (20% 
of the total utilized agricultural area) in 2020. The average utilized agricultural area stood at 
21 hectares in 2020. The number of farms declined from 54,000 in 2014 to 49,363 in 2020. Hills 
and mountain farming areas (including alpine  summer pastures) are used extensively for milk and 
meat production, while more concentrated pork and poultry production is located in valleys. About 
half of Swiss farms are located in hilly or mountainous areas – a handicap that is addressed through 
the direct payments system (Section  4.1.3).  
Table 4.1 Farms according to size classes, 2019 and 2020  
Size class  2019  
(number)  2020  
(number)  Change  
(%) 
Less than 1  ha 2,073  2,064  -0.4 
1 ha to less than 3  ha 3,130  3,139  0.3 
3 ha to less than 5  ha 2,519  2,408  -4.4 
5 ha to less than 10  ha 6,520  6,284  -3.6 
10 ha to less than 20  ha 14,382  14,005  -2.6 
20 ha to less than 30  ha 10,462  10,287  -1.7 
30 ha to less than 50  ha 8,015  8,114  1.2 
50 ha and more  2,937  3,062  4.3 
Total 50,038  49,363  -1.3 
Source:  Information provided by the Swiss authorities.  
4.5.  The agricultural area is mostly grassland, with arable land representing 26% of the total. Crop 
production has shifted away from traditional arable crops ( grains , oilseeds) towards an increasing 
production of fruits and vegetables. Swiss agriculture is largely rain -fed. OECD estimates indicate 
that Swiss farmers irrigate only 2.2% of their agricultural land.3 
 
1 The total agricultural labour force was 149,000 in 2020.  
2 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 . 
3 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 117 - 
 
 4.6.  In Liechtenstein, agriculture's contribution to GVA is marginal, although about one  third of its 
territory is used as farmland. In 2020 (unchanged from 2018), agriculture accounted for 0.1% of 
GVA and less than 0.01% of total employment. There were 95 farms in 2020 with an average farm 
size of 38  hectar es. Milk is the main agricultural product, followed by meat, grains, and vegetables. 
Fifty-seven  farms operate according to Swiss standards under the ecological performance 
requirements. Complying with such requirements, through a "proof of ecological perf ormance" (PEP), 
is a condition for the receipt of direct payments. The authorities, mostly cantons in Switzerland, are 
in charge of designating the agencies responsible for the issuance of PEP certification . Thirty -eight 
farms practice organic farming acco rding to the guidelines of Bio Suisse, which sets additional and 
stricter requirements on top of those of the PEP.  
4.7.  The Federal Office for Agriculture (FOAG), in cooperation with Swiss cantons and 
producer/value -chain -organizations, is in charge of implemen ting agriculture -related public  policies. 
Swiss agricultural policy pursues diverse objectives, namely sustainable and market -oriented 
agricultural production that contributes to food security, protection of natural resources, landscape 
stewardship, decent ralized settlement, and animal welfare. The overarching legal basis of Swiss 
agricultural policy is the Swiss Constitution (Article  104), which directs the Confederation to support 
the multi -functionality of agriculture and delivery of public goods, inter alia, with direct payments 
linked to environmental cross -compliance.  
4.8.  In a 2017 referendum, the Swiss electorate adopted a new article on food security in the Swiss 
Constitution (Article  104a). It states that in order to guarantee the supply of food to the population, 
the Confederation shall create conditions for: (i)  safeguarding the basis for agricultural production, 
and agricultural land in particular; (ii)  food production adapted to local conditions and using natural 
resources efficiently; (iii)  an agric ulture and food sector that responds to market requirements; 
(iv) cross-border trade relations that contribute to the sustainable development of the agricultural 
and food sector; and (v)  using food in a way that conserves natural resources. The new article  calls 
for a guarantee for sufficient food supplies for the Swiss population in the long term. This guarantee 
is based on both domestic production and imports, taking into account the entire value chain. 
Together with the article on agriculture (Article  104), the article on food security defines broad 
objectives for agricultural and related policies.  
4.9.  Agricultural policy in Liechtenstein has the objective of achieving sustainable and 
market -oriented production, in accordance with the Agriculture Act of 2008.  Switzerland acts on 
behalf of Liechtenstein on Customs Union matters, such as imports, exports, and transit, as well as 
regulation and control of food products in the common market. Liechtenstein has its own direct 
payments scheme. Liechtenstein farmers a lso benefit from some of the Swiss market support 
measures, such as the subsidy for milk processed into cheese, in return for an annual financial 
contribution by Liechtenstein (Section  4.1.3.3). Some Liechtenstein companies participate in the 
Swiss auction s of the meat tariff quotas.  
4.10.   The food supply industry in Switzerland has a significant carbon footprint. In 2018, it was 
responsible for 23% of greenhouse gas (GHG) emissions generated by the economy as a whole. In 
addition, the largest share of total meth ane and nitrous oxide emissions were caused by agriculture, 
in particular from livestock farming and fertilizer use.4 During the review period, Switzerland 
increased efforts to further integrate sustainability measures into sectoral policies, including in  
agriculture. Furthermore, in June  2021, the Federal Council adopted its 2030 Sustainable 
Development Strategy, which sets out the path Switzerland intends to take to implement the 
UN 2030 Agenda for Sustainable Development.5 The Strategy is an instrument  to coordinate and 
increase coherence between policies to make sustainable development a core component of the 
numerous federal sectoral activities. The Federal Council in particular highlights the need for a food 
systems transformation through its priorit y area "sustainable consumption and production", which 
includes four objectives related to healthy and sustainable diets, consumption modes with regard to 
the reduction of GHG emissions, sustainable agricultural production, and reduction of food losses 
and waste.  
 
4 Federal Statistical Office (2021), Agriculture and Food: Pocket Statistics 2021 . Viewed at: 
https://www.bfs.admin.ch/bfs/en/home/st atistics/catalogues -
databases/publications.assetdetail.17824822.html . 
5 Federal Council (2021), 2030 Sustainable Development Strategy . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 118 - 
 
 4.11.   On 27  January  2021, the Federal Council adopted the Long -Term Climate Strategy for 
Switzerland, whose target for the agricultural and food sector is to bring the GHG footprint  of the 
food sector in line with the net -zero target and to avoid any fur ther transfers of GHG emissions 
abroad by 2050.6 According to the Strategy, by 2050, GHG emissions from domestic agricultural 
production are to be at least 40% below 1990 levels and Swiss agriculture should contribute at least 
50% to the country's food su pply.  
4.12.   In accordance with the Federal Act on Agriculture, four -year plans are adopted, on a regular 
basis, to operationalize the Swiss agricultural policy (AP). The most recent plan covers 2018 -21 
(AP 2018-21), which carried over measures that were applied  in 2014 -17. However, the spending 
budgeted for 2018 -21 was reduced by 1.7% compared to 2014 -17. In February  2020, the Federal 
Council submitted to the Federal Assembly a draft single AP to be implemented from 2022 onwards 
(AP22+), along with a draft feder al decree on financial resources for agriculture for the years 
2022-25. The focus of the proposed strategy included measures to combat environmental pollution 
and to reduce the amount of resources used when farming. However, in December  2020, the Council 
of States decided to suspend work on AP22+. This decision was confirmed by the National Council 
on 16  March  2021. In parallel, the Federal Council was required by both chambers of the Federal 
Assembly to submit a report on the future direction of the AP to the Federal Assembly by 2022 at 
the latest. The Federal Assembly decided to maintain the 2022 -25 financial envelope at the same 
level as under AP 2018 -21 (Section  4.1.3).  
4.13.   Several other initiatives related to the agricultural and food sector were submitted to balloting 
during the review period. An initiative "for clean drinking water" and an initiative "for a Switzerland 
free of synthetic pesticides" were rejected by Swiss v oters on 13  June 2021. In this context, the 
Parliamentary Initiative "Reducing the risk of the use of pesticides" was prepared, with a view to 
integrating a reduction trajectory for the use of pesticides in Switzerland into legislation with target 
values f or the risks arising from the use of pesticides and suggested adaptations to improve 
groundwater quality in relation to the degradation of products from pesticides (Section  4.1.3.1). On 
17 September  2019, the popular initiative against mass animal husbandr y was submitted. The 
Federal Council decided on 19  May 2021 to submit a counter -proposal to the Federal Assembly.  
4.14.   A Soil Strategy was adopted by the Federal Council on 8  May 2020. It aims to preserve the 
fertility of the soil and to enable it to continue t o perform its other services for society and the 
economy. Th e Strategy and a series of measures pursue the objective to halt any net loss of soil in 
Switzerland by 2050.7 On 6 September  2017, the Federal Council adopted the Action Plan for Risk 
Reduction and the Sustainable Use of Plant Protection Products.8 The Action Plan seeks to reduce 
such risks and encourage alternatives to chemical phytosanitary protection, by improving existing 
measures and introducing new ones. Fifty -one concrete measures are ide ntified to achieve these 
goals, of which 29 were fully implemented at end -2021. Since the Action Plan's adoption in 2017, a 
progress report is published on an annual basis with a brief description of the status of 
implementation of all measures.9 
4.15.   Followin g the outbreak of the COVID -19 pandemic, Swiss authorities undertook financial 
support measures, with a view to ensuring the supply of food for the population while preventing a 
fall in agricultural market prices. A total of CHF 3 million was allocated for  storage of beef, veal, and 
goat meat, for which demand has declined after the closure of restaurants. The Swiss Government 
also approved an ordinance on exceptional financial assistance of CHF 10 million for the downgrading 
of AOC wines to table wine. Und er the funding scheme, winegrowers were entitled to receive CHF 2 
for each litre of downgraded wine with an AOC designation. Winegrowers were also required to 
reduce the maximum yields for the 2020 harvest. A maximum of 1.2  kg per square metre for white 
wine and 1  kg for red wine per square metre was allowed. Farmers in Liechtenstein were not directly 
eligible for the exceptional financial assistance for downgrading of AOC wines to table wine. While 
farmers in Liechtenstein were not eligible for COVID -19 su pport from Switzerland, the authorities 
changed the timing of direct payments to farmers, which are normally  made in three instalments 
 
6 Federal Council (2021), Switzerland's Long -Term Climate Strategy . 
7 Federal Council (2020), Swiss National Soil Strategy .  
8 Federal Council (2017), Phytosanitary Action Plan .  
9 FOAG. Viewed at: https://www.blw.admin.ch/blw/fr/home/nachhaltige -
produ ktion/pflanzenschutz/aktionsplan/aktuelles.html . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 119 - 
 
 throughout the year. In 2020, the second partial instalment, which is usually paid in August, was 
brought forward to June , and increased to 40% of the annual support (instead of the usual 33%) . 
4.1.2   Market  access  
4.1.2.1   Applied MFN tariffs  
4.16.   Switzerland's applied MFN tariff on agricultural products (WTO definition) – based on 
ad valorem  equivalents – averaged an estimated 25.4% in 2021, d own from 30.8% in 2016 
(Table  3.3). Meat and dairy products benefit from the highest levels of tariff protection ( Table  A3.1). 
High MFN tariffs in import -competing sectors contrast with free trade in a range of products, such 
as cotton, where there is no or little domestic production.  
4.17.   The Swiss customs tariff (Tares) contains about 2,466 tariff lines for agricultural products 
(HS 8-digit level).10 As noted during the previous Review, there are about  500 tariff-protected 
products where import protection may  not be necessary (e.g. 0704.9080 Non -headed kale)11, and 
approximately another 500  tariff lines where high or prohibitive tariffs are maintained mainly for 
historical reasons – these tariff peaks may offer scope for tariff cuts without compromising 
agricu ltural policy objectives.12 
4.18.   In addition to ordinary customs duties, Switzerland levies guarantee fund contributions to 
finance its reserve stock scheme for grains, rice, coffee, sugar, certain edible oils and fats, and 
nitrogen fertilizers. The reserve sto cks are managed by two private organizations (Réservesuisse 
and Agricura) on behalf of the Government (Section  3.1.3.4).  
4.19.   During the review period, Switzerland's MFN customs tariff featured tariff escalation , 
adjustable tariffs, seasonal tariffs, and in -quota tariffs.  
4.1.2.1.1   Tariff escalation  
4.20.   Tariff escalation exists in the customs duties on certain processed agricultural products .13 The 
applied tariff rate of each product concerned is composed of a fixed element to protect the Swiss 
food processing industry (indus trial protection)  and a variable element of agricultural protection, 
which raises the duty -paid on import prices for basic agricultural products incorporated in the 
processed product to the Swiss price level.  
4.21.   The variable element is calculated based on dif ferences between Swiss and world market 
prices for relevant raw materials and a standard recipe for each tariff line. The standard  recipe 
defines for each category of comparable products the amounts of incorporated raw materials. The 
standard recipe is def ined at the national tariff line level of the Swiss Customs Tariff.14 
4.1.2.1.2   Adjustable tariffs  
4.22.   Switzerland maintains a complex scheme of adjustable MFN tariffs to protect its farmers and 
producers of feedstuffs, oilseeds, feed mixtures, cereals of bread -making q uality, and sugar.  
4.23.   The basic structure of the schemes of feedstuffs, oilseeds, and feed mixtures  remained 
unchanged during the review period. Tariffs are reviewed monthly and adjusted if necessary, so that 
 
10 Based on WTO definition of agriculture. The number of tariff lines includes in - and out -of-quota tariff 
lines according to the 2021 tariff schedule.  
11 SECO. Viewed at: 
https://www.seco.admin.ch/seco/fr/home/Publikationen_Dienstleistungen/Publikationen_und_Formulare/Ausse
nwirtschafts/Freihandelsabkommen/behinderung -von-parallelimporten.html . 
12 For example, there are a number of fruits and vegetables to which the out -of-quota tariffs are not 
applied. See the list at: https://www.blw.admin.ch/blw/fr/home/markt/einfuhr -von-agrarprodukten/gemuese -
und-obst.html . 
13 Ordinance of 23  November  2011 on the Industrial Protection Elements and the Variable Elements 
Applicable to th e Import of Processed Agricultural Products (RS  632.111.722).  
14 EFTA (2021), Notification on  Price Compensation Measures for Processed Agricultural  Products . 
Viewed at: https://www.efta.int/sites/default/files/documents/free -trade/text/Notification -on-price-
compensation -measures -for%20PAPs -March -2021.pdf . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 120 - 
 
 the duty -inclusive prices, including guarantee fun d contributions, are raised to the level of target 
import prices, called "threshold prices".15 According to the authorities, threshold prices do not work 
as minimum import prices but rather as targets to set the tariffs. The tariffs are then valid for a 
predetermined period, at least until the next examination. Once the tariff is set, every shipmen t is 
charged exactly that tariff irrespective of the value of the good; the tariffs are therefore not variable. 
The threshold prices are set in the Ordinance on the Importation of Agricultural Products for some 
of the main feedstuffs (e.g.  barley, soybean,  and meal).16 On the basis of the threshold prices for 
11 product groups, the Federal Department of Economic Affairs, Education and Research (EAER) 
determines "indicative import values" for "similar" products (e.g.  wheat or rape meal). For feed 
mixtures, t he EAER sets a standard mixture based on Switzerland's global feedstuff consumption. 
This is to ensure that feed mixtures are subject to the same level of tariff protection as the imports 
of its components. The tariffs based on target import prices may not  exceed the Uruguay Round 
bindings. There are no tariff quotas for the products covered by the scheme.  
4.24.   Regarding imports of cereals of bread -making quality (e.g. wheat), a separate tariff 
mechanism is in place with the statutory target import price called the "reference price", which is 
determined in accordance with the Ordinance on the Importation of Agricultural  Products to reflect 
the price of "excellent" quality wheat in neighbouring countries. The levied tariffs are based on the 
tariffs of the grain, t he standard flour yield, and an extra fixed tariff (industrial protection). The 
scheme works in combination with a tariff quota of 70,000 tonnes; the adjustable tariffs may not 
exceed the bound in -quota tariffs of the products concerned.  
4.25.   A similar tariff mechanism exists for MFN sugar imports. It was introduced following 
Switzerland's bilateral agreement with the European  Union on processed agricultural products 
(2005), which provides for bilateral free trade in sugar -containing products. Under the mechanism, 
Switzerland aims at approximate price parity with EU sugar prices in order not to hamper the 
competitiveness of the Swiss food industry. MFN tariffs are examined, normally every month, and 
adjusted if necessary, so that duty -inclusive reference prices are aligned with EU sugar market prices 
(with a tolerance band of +/ - CHF 30/tonne). In 2019, a minimum border protection of at least 
CHF 70 per tonne of sugar came into force for the period from 1  January  2019 to 
30 September  2021.17 On 3 November 2021, the Federal Assembly decided to maintain the current 
minimum border protection until 2026 (Section  4.1.3.4). In addition, it decided to maintain the 
current support measures for organic sugar beet farming . 
4.26.   Switzerland's adjustable MFN tarif fs subject to the scheme described above are not fully 
captured by the Secretariat's tariff analysis (i.e. tariff averages) in Section  3, since Switzerland 
notifies its MFN tariffs to the WTO Integrated Database as applied on 1  January of each year.  
4.1.2.1.3   Season al tariffs  
4.27.   Switzerland levies seasonal tariffs on 95 agricultural products (unchanged since 2016), all of 
which are fresh fruit, vegetables, or cut flowers.18 The seasonal tariffs are applied in combination 
with tariff quotas for most domestically produced  fruit and vegetables.  
4.28.   During the "out -of-season" period, there is no tariff quota management, and imports are 
allowed in unlimited quantities at the bound in -quota tariff. The out -of-season period is very short 
for some products (two weeks).  
4.29.   During the ha rvest season ("managed period"), tariff quotas are opened if domestic 
production is insufficient to satisfy demand. Operators that hold stocks (exceeding their needs for 
two days) of fruit and vegetables at the beginning of the managed period but that were  imported 
during the out -of-season period are required to file a new customs declaration and pay the difference 
 
15 There is a tolerance band of +/ - CHF 3 for deviati ons from the threshold price. Within this band, there 
is no legal obligation to adjust the tariffs.  
16 RS 916.01 of 26  October  2011.  
17 Federal Council (2021), "Prolongation de la protection douanière minimale pour le sucre", 
3 November. Viewed at: https://www.admin.ch/gov/fr/accueil/documentation/communiques/communiques -
conseil -federal.msg -id-85706.html .  
18 From 2017, Switzerland ha s granted unlimited access at the bound in -quota tariff for cut flowers.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 121 - 
 
 between the in -quota and the applicable out -of-quota tariffs (or use parts of their tariff quota at the 
beginning of the "managed period").  
4.30.   No tariff quotas are opened during the harvest season if domestic supplies are sufficient to 
satisfy demand ("full supply period"). In this case, imports in unlimited quantities are allowed at 
reduced out -of-quota tariffs. The periods when reduced out -of-quota  tariffs are applicable are 
published on the FOAG's website or by means of circular letters. The reduced out -of-quota tariffs 
are set out in the Ordinance on Imports of Agricultural Products (RS  916.01) and published in the 
Tares. Clearances at the reduced out -of-quota rates are carried out at the request of the declarant. 
These reduced rates are not included in the Secretariat's tariff analysis, since Switzerland notifies 
its MFN tariffs to the WTO Integrated Database as applied on 1  January of each year.  
4.1.2.1.4   Tariff quotas  
4.31.   Switzerland's WTO tariff -quota commitments cover 28 product categories. Some of them, 
including for dairy products and grains, are divided into sub -quotas. Switzerland also has bilateral 
preferential tariff quotas that are gener ally aggregated with WTO tariff quotas. There was no 
significant change to the tariff -quota administration regime during the review period.  
4.32.   In many cases, there is a large gap between the applied MFN in -quota and out -of-quota tariffs 
(Table  A4.2). Switzerl and has regularly notified annual updates of its administration of WTO tariff 
quotas and their utilization (up to 2021).19 
4.33.   The predominant allocation procedures are on a first-come, first -served basis, auctioning, 
past imports, and prise en charge  (under w hich the allocation of tariff quota is contingent upon local 
purchase), and unlimited access at the bound in -quota tariff . When domestic supplies are 
insufficient, the tariff quotas may also be increased autonomously, resulting in fill ratios greater than 
100% (capped at 100%, Table  A4.2).  The FOAG publishes the tariff quota allocation on its website. 
The auction results (inc luding accepted bids and the names of buyers) are also published on the 
FOAG website.20 The daily fill rates of first -come, first -served, "at the border" tariff quotas are 
published by the Federal Office for Customs and Border Security (FOCBS) (formerly kn own as the 
Federal Customs Administration).21 
4.1.3   Domestic support  
4.34.   Switzerland submitted its most recent domestic support notification in 2021, covering  
calendar year 2019.22 
4.35.   In June  2021, the Federal Assembly decided to maintain the 2022 -25 financial envelope  at 
the same level as under AP 2018 -21, totalling CHF 13,957  million. The expenditure ceiling for the 
measures to support the production base will amount to CHF 552 million, for the measures to 
support production and marketing CHF 2,156  million, and for th e allocation of direct payments 
CHF 11,249  million . Under AP 2022 -25, expenditures to improve the production base and social 
measures include direct support to farm investments, as well as general support for infrastructure 
improvement, social aid to farme rs, breeding promotion, and advisory services.  Production and 
marketing expenditures mainly support dairy producers via three types of payments: (i)  for milk 
delivered for cheese processing; (ii)  for milk production without silage feed; and (iii)  for marke ted 
milk (introduced in 2019) (Section  4.1.3.3 ). In addition, area payments apply to oilseeds, protein 
crops, grain (introduced in 2019), and sugar beet. Some expenditures under this heading also 
provide funds for general services to the sector, including marketing and product promotion. Public 
expenditures to farmers aim to meet the demand for, inter alia, food security, environment 
protection (landscape, biodiversity, sustainable use of resources), and animal welfare. These 
payments are subject to environmental cross -compliance conditions (Section  4.1.3.1).  
 
19 WTO documents G/AG/N/CHE/108, 6  May 2021; and G/AG/N/CHE/113, 9  December  2021.  
20 FOAG. For more information about the auctioning system, see: 
https://www.blw.admin.ch/blw/fr/home/markt/einfuhr -von-agrarprodukten.html   
21 FOCBS, Status of Collective Quotas . Viewed at: https://www.ezv.admin.ch/ezv/fr/home/infos -pour-
entreprises/interdictions --restrictions -et-conditi ons/mesures -economiques -et-agricoles/contingents -
tarifaires/etat -des-contingents.html . 
22 WTO document G/AG/N/CHE/109, 11  May 2021.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 122 - 
 
 4.36.   In Liechtenstein, agriculture expenditures increased from less than CHF 14.1 million in 2016 
to CHF 14.7 million in 2020, most of which was allocated to direct payments (Table  4.3). The 
differenc e in direct payment of CHF 12.4 million and CHF 14.7 million of agriculture expenditures 
in 2020 consists of contributions paid to different sectoral organizations and advising  farmers 
(CHF 0.4 million), expenses for structural improvements ( CHF 1.2 millio n) and expenses for the 
protection and maintenance of alpine pastures ( CHF 0.7 million). Liechtenstein also makes a 
financial contribution to the common agricultural policies with Switzerland. The amount of the 
contribution was roughly CHF 0.7 million in 2 020. The key measure for Liechtenstein is the subsidy 
for processing milk into cheese for which Liechtenstein's contribution was nearly CHF 386,000 in 
2020.  
4.1.3.1   Direct payments  
4.37.   The level of direct payments to farms remains relatively high in Switzerland. Accor ding to the 
OECD, they account for around 50% of support to farmers.23 Most are general area payments to all 
agricultural land, payments to maintain farming in less favourable conditions, and payments to 
farmers who voluntarily apply stricter farming pract ices related to environmental  and animal welfare. 
Direct payments averaged CHF 71,000 per farm in 2020 and contributed on average to 21% of 
farmers' revenues. Under AP 2018 -21, total direct payments expenditures were maintained at a 
level of about CHF 2.8 billion per year, broadly unchanged from spending under the previous 
four-year plan.  
4.38.   The direct payments system comprises seven categories of payments, each targeted to a 
specific policy objective, with a total of 25  measures (Table  4.2). The general eligi bility criteria for 
direct payments have not changed since the previous Review and include a set of environmental 
performance standards (proof of ecological performance), including a 7% biodiversity area 
requirement. The authorities indicate that this requ irement will still be in force under AP 2022 -25. 
The maximum direct payment is CHF 70,000 per annual work unit.24 Some direct payments are 
degressive by farm size, income, and assets.25 
4.39.   "Payments for ensuring food security" remain the main category, and they cover three types 
of support:  
• The "basic payment" for which virtually the entire agricultural area of 1  million hectares 
is eligible ( CHF 900 per hectare, CHF 450 per hectare for biodiversity pastures and 
meadows), including permanent pa stures26 but excluding the summer pasturing area. 
Since 2014, the basic payment is no longer tied to the number of animals but is based 
on acreage with a minimum stocking density for pastures and meadows. In 
Switzerland's 2019 domestic support notification, this c ategory was incorporated in its 
aggregate measure of support (AMS)  calculation; all other categories under "payments 
for ensuring food security" were notified as Green Box measures.  
• The "payment under difficult production conditions", which provides additi onal support 
for producers in the hilly and mountainous zones (ranging from CHF  240 per hectare 
for hilly zones to CHF  360 per hectare for the highest mountain zones). About 53% of 
the total agricultural area is eligible.  
• The "payment for open arable land and permanent crops" ( CHF 400 per hectare), which 
is a pre -existing measure that raises the level of support for the arable sector compared 
with the pasture -based livestock sector (dairy). The policy objective is to stabilize the 
arable area for food secur ity purposes.  
4.40.    The "farmland payments" have the objective of maintaining a cultivated agricultural 
landscape in the hilly and mountainous areas. Four of the six measures are per-hectare payments 
that are tiered according to the slope of the terrain and are  conditional on landscape stewardship 
 
23 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 . 
24 Excluding "transitional payments, payments for landscape  quality, resource efficiency payments and 
payments for biodiversity networks".  
25 The basic payment for ensuring food security is reduced for farms larger than 60  ha; transitional 
payments are reduced from a level of income of CHF  80,000 and assets of CHF  0.8 million.  
26 The payment rate is CHF  450/ha on permanent pastures that are cultivated as biodiversity areas.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 123 - 
 
 measures by farmers. The higher the location of the farm, the higher the direct payment. On the 
summer pasturing area (covering about 465,000 hectares), the "summer pasturing payments" are 
subject to environmental requ irements for grazing livestock. The payments stand at CHF 400 per 
livestock unit ( CHF 440 for dairy cows, dairy goats, and dairy sheep). About 3% of Swiss milk 
production (totalling 3.5  million tonnes) comes from summer pasturing.  
4.41.   The "payments for product ion systems" are intended to encourage environmentally friendly 
or animal welfare -friendly methods of production. The "payments for organic agriculture" 
(CHF 200/ha -CHF 1,600/ha, depending on the crop) are linked to farming methods that comply with 
the Org anic Farming Ordinance (RS  910.18). The "payments for extensive cereal and rapeseed 
production" amount at CHF 400/ha and provides an incentive for a pesticide -free production. The 
"payments for pasture -based dairy and meat production" (CHF 200/ha) aim to p rovide an incentive 
for pasture and roughage -based livestock systems. The payments for animal welfare 
(CHF 80-CHF 370/livestock unit for outdoor systems, and CHF  90-CHF 280/livestock unit for housing 
systems) aim to improve animal farming conditions.  
4.42.   The " biodiversity payments" are provided to compensate farmers for the adaptation of their 
land use, with a view to countering the decline of priority species and valuable natural habitats on 
agricultural land. Thus, the objectives and measures defined within t he framework of the 
contributions to biodiversity aim to contribute to the achievement of the environmental objectives 
for agriculture. There are two types of biodiversity payments: (i)  payments for quality (with two 
types of quality, depending on the perf ormance)27, and a payment of CHF  150-CHF 3,800/ha is 
provided by the Federal Government for certain lands that contribute to biodiversity; and 
(ii) payments for connectivity (CHF  1,000/ha of the core farmland), which are granted only if the 
agricultural la nd complies with the guidelines of a regional connectivity project approved by the 
canton. These payments are co -financed by the Federal Government (maximum of 90%) and by the 
cantons, municipalities, or private sponsors.  
4.43.   The "resource efficiency payments"  aim to improve the sustainable exploitation of natural 
resources and the efficient use of the means of production. These payments comprise five incentives 
measures for emission -reducing application techniques of manure, precision application  of 
pesticides , reduced tillage methods, nitrogen -reduced phase feeding for pigs, and reduced 
application of pesticides in sugar beet, fruit, and vine growing. 28 
4.44.   The "transitional payments", which were initially intended to make the change to the new 
direct payments sy stem (effective in 2014) socially acceptable, shall continue to be disbursed in 
2022-25. 
Table 4.2 Direct payments, 2017 -20 
(CHF million)  
 2017  2018  2019  2020  
Payments for ensuring food security  1,086.3  1,084.1  1,080.6  1,079.6  
Basic payment  814.1  811.6  809.5  807.7  
Payment under difficult production conditions  159.6  159.4  159.4  159.3  
Payment for open arable land and permanent 
crops  112.6  113.1  111.8  112.7  
Farmland payments  523.0  521.8  527.7  525.4  
Payments to maintain open landscape  140.0  140.0  139.9  140.0  
Steep slope payments  125.4  126.6  126.6  126.7  
Payments on very steep slopes  11.4 11.3 11.2 11.3 
Steep slope payments for wine growers  11.8 11.5 11.7 11.8 
Alpine pasturing payments  109.2  108.5  110.1  106.6  
Summer pasturing payments  125.2  124.0  128.3  129.0  
Payments for production systems  466.7  476.8  488.9  493.5  
Payment for organic agriculture  50.5 55.2 60.1 63.7 
Payments for extensive cereal and rapeseed 
production  34.1 35.2 34.5 33.9 
Payments for pasture -based dairy and meat 
production  110.2  110.8  111.7  111.9  
Animal welfare payments (outdoor)  190.0  191.6  197.1  197.3  
 
27 Further explanation on payments for quality is available at: 
https://www.blw.admin.ch/blw/fr/home/instrumente/direktzahlungen/biodiversitaetsbeitraege.html . 
28 FOAG, Resource Efficiency Payments . Viewed at: 
https://www.blw.admin.ch/blw/fr/home/instrumente/direktzahlungen/ressourceneffizienzbeitraege.html . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 124 - 
 
  2017  2018  2019  2020  
Animal welfare payments (housing systems)  81.9 83.9 85.7 86.6 
Biodiversity payments  413.3  410.6  417.0  426.4  
Quality payment  313.4  307.9  312.0  317.8  
Payment for biodiversity networks  99.9 102.7  105.0  108.6  
Payments for landscape quality  145.1  145.9  146.0  146.7  
Resource efficiency payments  28.3 35.4 37.0 39.5 
Payment for emission -reducing application 
techniques of manure  12.1 13.1 13.5 13.7 
Payment for reduced tillage  15.2 16.7 16.1 16.1 
Payment for precision application of pesticides  0.9 1.4 2.0 2.0 
Payment for nitrogen -reduced phase feeding for 
pigs n.a. 2.4 2.9 3.0 
Payment for reduced application of pesticides in 
sugar beet, fruit and vine growing  n.a. 1.8 2.4 4.7 
Payments for water protection and 
sustainable use of natural resources  18.4 21.5 21.5 28.1 
Transitional payments  128.7  113.8  104.4  79.9 
Other  -4.3 -6.4 -7.9 -8.6 
n.a. Not applicable.  
Note:  Payments for water protection and sustainable use of natural resources are not direct payments but 
another type of financial support. Since they are financed by the federal direct payments budget 
(and co -financed by the cantons), they are included in this table.  
Source:  Information provided by the Swiss authorities.  
4.45.   As a consequence of the rejection by the Swiss voters of the initiatives "for clean drinking 
water" and "for a Switzerland free of synthetic pesticides" and the subsequent adoption of the 
alternative parliamentary initiative, the direct payments regime is set to be adjuste d in 2023. The 
reform aims to achieve some specific reduction targets, by the means of increased environmental  
requirements for direct payments recipient (Box  4.1). The additional requirements, which are set to 
be applied on top of the current environmenta l requirements (proof of ecological performance), are 
currently going through a public consultation.  
Box 4.1 Measures to reduce nitrogen and phosphorus losses through the direct 
payments system and the reduction  of the risk associated with the use of pesticides in 
Switzerland  
In July  2020, the Federal Assembly decided to adopt amendments to the Federal Law on Agriculture by means 
of a parliamentary initiative (19.475: "Reduction of the risk associated with the us e of pesticides"), with a 
view to defining reduction targets for both the use of plant protection and biocide products and nutrient losses: 
(i) the risks to surface waters and semi -natural habitats as well as to groundwater and groundwater pollution 
from p esticides must be reduced by 50% by 2027 compared to the mean value of the years 2012 -15; and 
(ii) nitrogen and phosphorus losses from agriculture must be appropriately reduced by 2030 compared to the 
mean value of the years 2014 -16. 
 
The Federal Assembly has charged the Federal Council to define an appropriate 2030 target for nutrient losses 
and to implement by ordinance measures, including by developing appropriate indicators, to achieve these 
goals. On 28  April 2021, the Federal Council submitted the pro posed measures for public consultation until 
18 August  2021. According to the authorities, the Federal Council decision on these ordinances is expected in 
the second quarter of 2022 and the entry into force of the measures for 1  January  2023.  
Source:  Information provided by the Swiss authorities.  
4.46.   Liechtenstein's current direct payments scheme has been in place since 2010.29 In their 2019 
domestic support notification, the authorities note that the payment for herding 
roughage -consuming animals is made per livestock unit.30 Other payments  under Liechtenstein 
direct payment systems are made for countryside stewardship in hilly  and mountainous areas, and 
environmental and animal welfare (Table  4.3). 
 
29 Ordinance on Agricultural Income Supplements (RS 910.023) of 23  March  2010.  
30 Roughage -consuming animals are cattle, hor ses, sheep, goats, bison, water buffalo, deer, llamas, and 
alpacas.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 125 - 
 
 4.47.   Liechtenstein has not followed suit in reforming its direct payments system in line with the 
Swiss AP 2014 -1731, as a direct payments scheme with a strong focus on the production are a could, 
according to the authorities, weaken the competitiveness of its dairy and cattle sector in the common 
market with Switzerland and increase competition for the allocation of the already scarce cultivated 
land. Moreover, support for remote regions a nd agricultural crops is of minor importance in 
Liechtenstein. Since 2016, no major agricultural reform has been implemented, but several minor 
adaptations have been realized towards the goal of a sustainable agricultural sector.  
Table 4.3 Liechtenstein's direct payments, 2016 -20 
(CHF million)  
 2016  2017  2018  2019  2020  
Total direct payments  11.6 11.3 11.4 12.0 12.4 
Income supplements (farm income aids, 
payments for selected crops, payments for 
roughage -consuming animals, payments for 
pasturing)  5.6 5.4 5.5 5.9 6.2 
Environmental and animal welfare payments  5.5 5.4 5.4 5.6 5.7 
Payments for countryside stewardship in hilly and 
mountainous regions  0.5 0.5 0.5 0.5 0.5 
Source:  Information provided by the Liechtenstein authorities.  
4.1.3.2   Market support measures  
4.48.   Price support is relatively significant in Switzerland. The OECD estimates that it accounts for 
50% of total producer support, and domestic prices were on average 46% above  world prices in 
2018-20.32 In addition to tariff rate quotas with high out -of-quota tariffs, Switzerland also provides 
complementary market support measures . Such expenditures mainly support dairy producers. In 
addition, area payments apply to oilseeds, protei n crops, grain, and sugar beet.  
4.49.   Switzerland's market support measures are presented in Table  4.4. In its most recent 
notifications to the WTO Committee on Agriculture (calendar year 2019), which were jointly 
submitted with Liechtenstein, Switzerland indica ted that price support through applied administered  
prices is in place only for tobacco. "Observed" prices as close as practicable to the first point of sale 
are used to calculate the support (i.e. prices observed by FOAG and price data provided by 
agricul tural organizations) . The notification shows a current total AMS of CHF  1,434  million, well 
below the bound total AMS commitment level of CHF  4,257  million.33 
Table 4.4 Market support and direct payments, 2017 -20 
(CHF million)  
Measure  2017  2018  2019  2020  
Market support paymentsa  
Dairy sector, of which:  293.0  293.0  378.7  371.8  
Subsidy for milk processed into cheese  262.6  263.2  197.8  192.2  
Subsidy for feeding without silage  30.4 29.8 31.4 30.3 
Subsidy for marketed milk  n.a. n.a. 149.5  149.4  
Plant production, of which:  64.2 64.7 84.9 .. 
Crop premiums and supplement ( RS 910.17)  60.9 62.0 80.7 .. 
Direct payments  2,806  2,805  2,819  2,810  
n.a. Not applicable.  
.. Not available.  
a Including export subsidies for 2016 -18. 
Source:  FOAG, Annual Report on Agriculture,  Switzerland's Domestic Support Notification , various issues.  
 
31 The reform aimed to, inter alia, reallocate some of the subsidies from livestock and dairy production 
to the arable sector and marginal areas.  
32 The methodology for calculating these ind icators is different from that used to calculate the AMS, and 
the two sets of data are neither compatible nor comparable.  
33 WTO document G/AG/N/CHE/109, 11  May 2021.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 126 - 
 
 4.1.3.3   Milk 
4.50.   In 2020, there were some 680,000 cows (in about 18,500 dairy farms) in Switzerland , and 
3.3 million tonnes  of milk were produced. A small proportion of milk originates in Liechtenstein.  
4.51.   In Liechtenstein, where some 50 dairy farms produced 13.7  million  kg of milk in 2019, milk 
production is constrained by a production quota system, which stood at 14.6  million  kg in 2020. In 
the context of the previous Review, the authorities stated that the advantages of the milk quota 
outweigh its disadvantages, and that representatives from the milk sector have declined an exit from 
the milk quota system.  
4.52.   As an accompanying me asure to the abolition of export subsidies under the "Schoggigesetz" 
(Chocolate Law), the Swiss authorities introduced an additional non -export linked aid for marketed 
milk (supplement for marketed milk) at the rate of CHF  0.045/kg, as of 1  January  2019 (0 .05/kg as 
of January  2022) for all producers of marketed milk in Switzerland.34 As stated by the Liechtenstein 
authorities, the same measure is in place for Liechtenstein milk producers.  
4.53.   In addition, the supplement for milk converted into cheese, the key i nternal support measure , 
is paid at a rate of CHF  0.15/kg less the supplement for marketed milk.35 The Liechtenstein 
authorities indicate that they repay the Swiss authorities CHF  0.105/kg as a compensation for milk 
converted into cheese in Liechtenstein.  
4.54.    The authorities consider that the subsidy for milk processed into cheese  has important 
socio-economic effects and helps to achieve the aim of a decentralized population. It was noted 
during the previous Review that exports of cheese also benefit from indirect support through  the 
subsidy for milk processed into cheese, although the subsidy is not conti ngent on exports . The 
subsidy for "feeding without silage" (CHF  0.03/kg of raw milk) is aimed at assisting the production 
of non -pasteurized specialty cheeses.  
4.55.   The Swiss interbranch organization for milk, l'Interprofession du Lait (IP Lait), continues to 
implement a standard milk delivery contract for its members. This contract contains various 
provisions regarding quantities and prices. However, the determination of prices and quantities 
remains a matter for the individual milk sellers and milk buyers. On 1 July 2013, the Federal Council 
decided to make the delivery contract compulsory for all milk producers including those outside 
IP Lait until 31  December  2017. The contract was subsequently extended to the end of 2021, and 
recently until 31  December  2025.  
4.56.   The pricing policy for raw milk deliveries is based on market segmentation. The "A  segment" 
comprises domestic sales of milk products that benefit from tariff protection and domestic support 
(cheese subsidy). The "B  segment" includes world market exports of skimmed -milk powder (milk 
protein) and domestic sales of butter (milk fat). The "unsupported C  segment" comprises world 
market exports of butter and skimmed -milk powder. In 2020, 82.1% of milk deliveries were in the 
A segment, 17.1% in the B  segment, an d 0% in the C  segment.  
4.1.3.4   Grains, oilseeds, and sugar  
4.57.   Crops account for 48% of Swiss agriculture production. In addition to direct payments, arable 
crops also benefit from crop premiums (Table  4.5). Crop premiums are aimed at ensuring  food and 
feed security36, by strengthening the competitiveness of grains, oilseeds, pulses, sugar beets, and 
certain seeds, which tend to benefit from lower border protection than livestock products. Following 
the repeal of export subsidies for cereals used as raw material in pro cessed agricultural products, 
its related financial envelope was transferred to the agricultural budget to finance a new non -export 
linked support system, the grain supplement. Since 2019, this new aid has been allocated to cereal 
farmers per hectare for a reas allocated to the cultivation of wheat, spelt, rye, starch, einkorn, barley, 
oats, triticale, rice, millet, and sorghum, as well as mixtures of these cereals.  
 
34 Federal Law of 29  April 1998 on Agriculture (RS  910.1), Article  40, and Ordinance of 25  June 2008 on 
Supplementary Payments and Aid in Relation to Milk (RS  916.350.2), Article  2a. 
35 Ordinance on Supplementary Payments and Aid in Relation to Milk (RS  916.350.2).  
36 Federal Law of 29  April 1998 on Agriculture (RS  910.1), Article  54. WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 127 - 
 
 4.58.   The crop premiums and the grains supplement are not subject to payment limits, and they 
may b e cumulated with other payments. Switzerland has included the crop premiums and the grain 
supplement as "product -specific support" (Supporting Table  DS:6)  in its calculation of the Total 
Current AMS.37 
4.59.   In 2019, 56% of the total crop premiums were allocated  to sugar beets. The payment rate 
for sugar beets was temporarily increased from CHF  1,800/ha to CHF  2,100/ha and a minimum 
border protection of at least CHF  70 per tonne of sugar came into force for the period from 
1 January  2019 to 30  September  2021. Acc ording to the authorities, the Federal Council decided  on 
these temporary measures to enable the Swiss sugar industry to increase its competitiveness in 
view of the difficult situation on the sugar market, notably low sugar beet prices and new diseases. 
These temporary measures were also a response to Parliamentary Initiative No.  15,479, which 
proposes to adapt border protection to guarantee a minimum sugar price. In September  2021, the 
Federal Assembly extended the measures until 2026 and an additional pre mium of CH F 200 per 
hectare was put in place for organic or integrated sugar production . 
4.60.   In Switzerland and Liechtenstein, sugar production is constrained by quotas agreed on a 
private basis between the sugar refineries and the sugar beet producers. In 201 9, the agreed sugar 
quota was 252,000 tonnes, while production stood at 239,000 tonnes. The surplus management is 
handled by private actors, where the Confederation has no role, according to the authorities.  
Table 4.5 Crop premiums 2017 -19 
Total expenditures  
(CHF million)   
 Eligible crops  Payment rate  
(CHF/ha)  
2017  2018  2019   2019  
19.6 21.4 21.5 Rapeseed, sunflower, pumpkin (for oil), 
linseed, poppy and safflower  
Soya 700 
 
1,000  
1.6 1.6 1.7 Seed potatoes and seed maize  
Seed legumes and grasses (for feed)  700 
1,000  
5.9 5.7 5.3 Pulses (for feed)  1,000  
33.8 33.3 36.6 Sugar beets  2,100  
Source:  Information provided by the Swiss authorities.  
4.1.4   Export subsidies  
4.61.   In 2021, Switzerland notified that it did not grant any agricultural export subsidies during the 
calendar year 2020.38 It had export subsidy reduction commitments with respect to five product 
categories (dairy products, breeding cattle and horses, fruit, potatoes, and processed products). 
Export subsidies with respect to the first four product groups have been abolished since 2010. In 
2016, the Federal Council amended the Ordinance Regulating Export Contributions for Processed 
Agricultural Products that terminates export subsidies on products d estined for LDCs, with a view to 
implementing the Nairobi Ministerial Decision on Export Competition.39 The Federal Assembly  
abolished the export contributions for agricultural raw materials used in processed agricultural 
products at the end of 2018. The e xport contributions, which were paid by the Federal Department 
of Finance for milk and grain processed into such products, were abolished as of 1  January  2019. As 
an accompanying measure, new non -export -linked domestic support instruments for producers of 
cereals and marketed milk have been introduced (Sections  4.1.3.3 and 4.1.3.4) . 
4.62.   Switzerland maintains an assistance programme for its farmers' organizations and 
inter-professional organizations to promote their agricultural products on the internal market a nd 
abroad. Each year, the organizations must apply for financial support of their promotional  activities 
for the following year. Under the programme, the Confederation can co -finance up to a maximum 
of 50% of the costs for eligible organizations, but only for market research and the following 
communication instruments: advertising (e.g.  print, TV, radio, and online); new media 
(e.g. websites and social media); sales promotion (e.g.  tastings, advertising material, and training); 
and public relations, events,  fairs, sponsoring, and direct marketing. A large part of the financial 
 
37 WTO document G/AG/N/CHE/109, 11  May 2021.  
38 WTO document G/AG/N/CHE/110, 5  October  2021.  
39 Ordinance of 25  November  2011 Regulating Export Contributions for Processed Agricultural Products 
(RS 632.111.723), as amended on 11  March  2016, Article  2a. WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 128 - 
 
 support is dedicated to the promotion of cheese  (38%), milk  (14%), meat  (9%), and fruit  (3%). 
The marketing campaigns for organic products and for Protected Designation  of Origin 
(PDO) /Protected Geographical Indication (PGI) products are also co -financed. Price -related activities 
(e.g. a price reduction on products) and distribution costs are not eligible for financial support.  
4.63.   In 2020, CHF  62 million was granted to around 30 promotion and marketing organizations.  
4.1.5   Evolution of support  
4.64.   According to OECD estimates, Switzerland's support to agricultural producers (producer 
support estimate (PSE)) declined from CHF  6.6 billion in 2016 to CHF 5.8 billion in 2018, mainly due 
to lower market pr ice support to the milk, beef, and pig meat sectors (Table  4.6). However, PSE 
increased in 2019 and 2020, reflecting recent developments, including increased market support to 
the milk sector. Though, in 2018 -20, the highest level of product -specific suppo rt and protection 
went to poultry, eggs, pig meat, and rapeseed.40 Public support to each of these commodities 
accounted for over 50% of their gross farm receipts.41 Payments to agricultural  producers also 
increased between 2018 and 2020. Market price support, as defined by the OECD, comprises all 
policy measures that ra ise the domestic price relative to the border price of the commodity 
concerned, including border measures (tariffs, tariff quotas, and other import restrictions), 
administered prices, and export subsidies (Section  4.1.3.2).42 
4.65.   The OECD estimates that the share of potentially most distorting transfers  in cumulated gross 
producer transfers was around 40% in 2018 -20, while it stood at some 60% in 2000 -02. 
4.66.   Expenditures for general services relative to agricultural value -added stood at 16% in 
2018-20, and are among the highest of OECD countries. Almost half of such expenditure finances 
the agricultural knowledge and innovation system.  
Table 4.6 OECD PSE for Switzerland, 2016 -20 
(CHF milli on) 
  2016  2017  2018  2019  2020  
Total value of production (at farm gate)  8,506.7  8,681.8  8,731.6  9,024.6  8,915.6  
PSE 6,608.8  6,195.9  5,842.8  5,902.6  6,472.1  
 Market price support  3,176.2  2,748.7  2,387.6  2,332.2  2,908.8  
 Milk 560.5  229.5  415.9  105.5  266.8  
 Beef 581.7  520.4  444.8  523.7  555.7  
 Pig meat  470.1  407.6  437.8  493.7  553.3  
 Poultry  266.3  271.0  278.2  264.9  279.9  
 Payments to producers  3,432.7  3,447.2  3,455.2  3,570.4  3,563.3  
 Interest concessions  44.6 44.7 38.4 38.4 31.9 
 Payments for oilseeds cultivation  19.7 19.7 21.4 21.5 22.0 
Payments for animal housing systems  80.2 81.9 83.9 85.7 86.6 
Payments for regularly keeping animals outdoors  189.0  190.0  191.6  197.0  197.3  
Payments for organic farming of crops  45.1 50.5 55.2 60.1 63.7 
Payments for extensive livestock on grassland  109.2  110.2  110.8  111.7  111.9  
Payments for ensuring food supplies – contribution 
to difficult conditions  160.2  159.6  159.4  159.4  159.3  
Payments for ensuring food supplies – arable land 
and perennial cultures  112.2  112.6  113.1  111.8  112.7  
 Area payments to sugar beet  34.1 34.1 33.3 36.6 36.8 
Payments for ensuring food supplies – basic 
contribution  818.2  814.1  811.6  809.5  807.8  
 Transitional payments  162.0  128.6  113.8  104.4  85.9 
PSE % (as a percentage of gross firm receipts 
including support)  55.4 51.1 47.9 46.9 51.9 
 
40 According to the OECD single commodity transfer estimates, expressed as a share of commodity 
gross farm receipts.  
41 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 .  
42 OECD (2016), OECD's Producer Support Estimate and Related Indicators of Agricultural Support .  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 129 - 
 
   2016  2017  2018  2019  2020  
PSCT % (as a percentage of gross firm receipts 
including support)  39.7 34.2 30.1 29.1 35.7 
Producer Nominal Protection Coefficient 
(producer NPC)  1.66 1.52 1.43 1.41 1.56 
Note:  PSE: The annual monetary transfers to agricultural producers, measured at the farm gate level from 
market price support, budgetary payments, and budget revenue forgone.  
 PSCT (producer single commodity transfers): Sum of transfers to producers granted to a single 
commodity.  
 Producer NPC: The ratio between the value of gross farm receipts including support and gross farm 
receipts (at farm gate) valued at border prices (measured at farm gate).  
Source:  OECD, Agricultural Policy Monitoring and Eval uation  2021. 
4.67.   Switzerland is in line with the trends in the OECD and the European  Union in making reforms 
towards less trade -and-production -distorting measures (Chart  4.1). However, PSE accounted for 
51.9% of gross farm revenues in 2020, meaning  that almost  over a half of farmers' revenues were 
due to support policies. In relative terms, Swiss farmers received over twice as much support as 
EU farmers (PSE of 19.3%) and OECD average (18.2%).  
Chart 4.1 Level and composition of support to agricultural producers  
 
Note:  The level of support is represented by the percentage PSE. The composition of support is presented 
by the share in gross farm receipts of market price support, payments based on output, and 
payments based on non -constrained variable input use.  
Source:  OECD (2021), Agricultural Policy Monitoring and Evaluation 2021 . 
4.2  Mining and Energy  
4.2.1   Mining  
4.2.1.1   Switzerland  
4.68.   Save for a marginal exploitation of salt, Switzerland is virtually devoid of any mineral 
resources and therefore does not have a mining industry per se. It is, however, a major global hub 
for mineral products trading as explained in the maritime transport section.  
4.2.1.2   Liechtenstein  
4.69.   There are no mining activities in Liechtenstein . 
0%10%20%30%40%50%60%70%80%90%100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%Chart 4.[CHE] Level and composition of support to agricultural producers
The level of support is presented by the percentage PSE. The composition of support is presented by the 
share in gross farm receipts of market price support, payments based on output, and payments based 
on non -constrained variable input use.Note: Switzerland
OECD
2018 -202000 -02Share of support based on commodity 
output and non -constrained variable 
input use in the PSE
PSE
OECD, Agricultural Policy Monitoring and Evaluation 2021.
.Source:1986 -88 European UnionWT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 130 - 
 
 4.2.2   Energy  
4.2.2.1   Switzerland  
4.2.2.1.1   Economic developments  
As illustrated by Table  4.7, which  describes the balance of energy trade, during the period 
under review Switzerland imported more than 80% of  its energy supply (oil and gas of which it is 
devoid, but also electricity for trading purposes), while it exported about half of its local production 
(electricity in summer months when demand is low and production of run of river is high at certain 
periods of the year and marginally refined oil).  
The local production of energy increased by 8.2% during the review period, though not in a 
linear manner. Within local production, the share of hydroelectricity oscillated around 50% (due to 
weather/climate cond itions), the share of wood remained around 15%, and the share of other 
renewables (solar and wind) grew from 9.8% to 13.0%.  
Imports decreased during the period under review from 951,380  TJ in 2015 to 872,180  TJ 
in 2020. In terms of structure, the imports mix remained more or less stable, except for nuclear 
fuels imports, which ranged between 19.8% and 24.6% of the total supply. There is no discernible 
trend in the evolution of this mix except for a slight decline of the share of electricity. Similarly, 
exports declined overall during the period from 144,280  TJ in 2015 to 136,150  TJ in 2020 but 
registered variations with a low in 2016 -17 and a peak in 2018 -19. The structure of the exports 
remained largely stable with electricity accounting for more than 85% of the exports, and oil 
constituting the bulk of the remainder.  
Overall, the total supply of energy slightly declined from 1,072,190  TJ in 2015 to 1,023,040  TJ 
in 2020. It reached a peak of 1,121,740  TJ in 2017.  
Table 4.7 Energy balance of Switzerland, 2015 -20 
(Unit: TJ)  
 Total local 
production  Total imports  Total exports  Nuclear fuels  Total supply 
energy incl. 
nuclear 
fuels  
2015  265,150  
of which:  
- Wood: 15.16%  
- Hydro: 53.61%  
- Waste: 21.43%  
- Other renewables 
(solar, wind): 9.8%  710,280  
of which:  
- Wood and 
charcoal: 0.29%  
- Coal: 0.76%  
- Oil and oil 
products: 64.61%  
- Gas: 16.81%  
- Biofuels: 0.26%  
- Electricity: 
17.24%  144,280  
of which:  
- Coal and charcoal: 
0.76%  
- Coal: 0%  
- Oil and oil 
products: 12.42%  
- Electricity: 87.4%  
 
Part of local 
production 
exported: 54.41%  241,040  
 
 
 
 
 
 
22.5% of the 
total supply 
energy  1,072,190  
2016  262,660  
of which:  
- Wood: 16.76%  
-Hydro: 49.55%  
- Waste: 22.51%  
- Other 
renewables: 
10.93%  718,640  
of which:  
- Wood and 
charcoal: 0.24%  
- Coal: 0.66%  
- Oil and oil 
products: 64.1%  
- Gas: 17.46%  
- Biofuels: 0.46%  
- Electricity: 
17.08%  128,460  
of which:  
- Coal and charcoal: 
0.08%  
- Coal: 0.008%  
- Oil and oil 
products: 15.35%  
- Electricity: 84.55%  
 
Part of local 
production 
exported: 48.91%  220,750  
 
 
 
 
 
 
20.6% of the 
total supply 
energy  
 1,073,590  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 131 - 
 
  Total local 
production  Total imports  Total exports  Nuclear fuels  Total supply 
energy incl. 
nuclear 
fuels  
2017  266,960  
of which:  
- Wood: 16.68%  
- Hydro: 49.44%  
- Waste: 22.23%  
- Other 
renewables: 
11.63%  722,080  
of which:  
- Wood and 
charcoal: 0.3%  
- Coal: 0.63%  
- Oil and oil 
products: 62.7%  
- Gas: 17.44%  
- Biofuels: 0.07%  
- Electricity: 
18.15%  127,390  
of which:  
- Coal and charcoal: 
0.07%  
- Coal: 0.5%  
- Oil and oil 
products: 12.47%  
- Electricity: 86.70%  
 
Part of local 
production 
exported: 47.72%  212,720  
 
 
 
 
 
 
19.8% of the 
total supply 
energy  
 1,074,370  
2018  268,600  
of which:  
- Wood: 15.65%  
- Hydro: 50.16%  
- Waste: 22.26%  
- Other 
renewables: 
11.91%  668,640  
of which:  
- Wood and 
charcoal: 0.32%  
- Coal: 0.5%  
- Oil and oil 
products: 63.53%  
- Gas: 17.87%  
- Biofuels: 1.06%  
- Electricity: 16.7%  135,390  
of which:  
- Coal and charcoal: 
0.07%  
- Coal: 0%  
- Oil and oil 
products: 13% -22% 
- Electricity: 86.7%  
 
Part of local 
production 
exported: 50.41%  266,330  
 
 
 
 
 
 
24.9% of the 
total supply 
energy  
 1,068,180  
2019  285,970  
of which:  
- Wood: 15.46%  
- Hydro: 51.05%  
- Waste: 21.23%  
- Other 
renewables: 
12.24%  708,870  
of which:  
- Wood and 
charcoal: 0.25%  
- Coal: 0.47%  
- Oil and oil 
products: 65.9%  
- Gas: 17.3%  
- Biofuels: 1.03%  
- Electricity: 
14.98%  148,880  
of which:  
- Coal and charcoal: 
0.07%  
- Coal: 0.006%  
- Oil and oil 
products: 24%  
- Electricity: 86.4%  
 
Part of local 
production 
exported: 52.06%  275,780  
 
 
 
 
 
24.6% of the 
total supply 
energy  
 1,121,740  
2020  287,010  
of which:  
- Wood: 14.96%  
- Hydro: 50.94%  
- Waste: 21.06%  
- Other 
renewables: 
13.02%  621,380  
of which:  
- Wood and 
charcoal: 0.31%  
- Coal: 0.53%  
- Oil and oil 
products: 63.21%  
- Gas: 19.2%  
- Biofuels: 10.9%  
- Electricity: 15.8%  136,150  
of which:  
- Coal and charcoal: 
0.07%  
- Coal: 0%  
- Oil and oil 
products: 13.87%  
- Electricity: 86.05%  
 
Part of local 
production 
exported: 47.44 % 250,800  
 
 
 
 
 
 
24.5% of the 
total supply 
energy  
 1,023,040  
Source:  Federal Office of Energy (FOE ) (2021), Overall Energy Statistics 2020 . Percentages calculated by the 
Secretariat.  
Tables  4.8 to 4.11  detail the main trade partners for energy imports of Switzerland by source, 
except for nuclear fuels. For oil (Table  4.8), the supply is geographically diversified.  
Table 4.8 Imports of petroleum oils, 2015 -20 
(CHF million, unless otherwise specified)  
  2015  2016  2017  2018  2019  2020  
HS 270900 Petroleum oils, crude  
 World  1,184  930 1,136  1,620  1,300  897 
 % of total importsa 0.7%  0.5%  0.6%  0.8%  0.6%  0.5%  
 Nigeria  457 320 515 612 438 359 
 United  States  135 153 16 0 135 293 
 Libya 81 21 135 386 289 136 WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 132 - 
 
   2015  2016  2017  2018  2019  2020  
 Algeria  0 0 3 15 42 56 
 Kazakhstan  105 167 399 606 380 51 
a Calculations based on "total business cycle" without gold bars, precious metals, coins, precious gems 
and stones, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS.  
For import of gas (Table  4.9), the main item imported is n atural gas in a gaseous state, and 
the main partner is Germany followed by other European member States, and then the 
Russian  Federation whose share remains marginal.43 
Table 4.9 Imports of gas, 2015 -20 
(CHF million, unless otherwise specified)  
 2015  2016  2017  2018  2019  2020  
HS 2711 Petroleum gases and other gaseous hydrocarbons  
 World  1,098  852 967 1,152  1,230  765 
 % of total importsa 0.7%  0.5%  0.5%  0.6%  0.6%  0.4%  
 of which:       
  
 HS 271121 Natural gas in gaseous state  
 World  1,054  819 927 1,112  1,191  735 
 % of total importsa 0.6%  0.5%  0.5%  0.6%  0.6%  0.4%  
 Germany  671 551 585 647 700 363 
 France  174 123 162 194 347 243 
 Italy 34 22 53 129 84 75 
 Netherlands  176 122 99 113 27 42 
 Russian  Federation  0 0 20 22 22 7 
a Calculations based on "total business cycle" without gold bars, precious metals, coins, precious gems 
and stones, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS.  
Imports of coal (Table  4.10)  are marginal, the main provider being the Russian  Federation.  
Table 4.10 Imports of coal, 2015 -20 
(CHF mi llion, unless otherwise specified)  
 2015  2016  2017  2018  2019  2020  
HS 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal  
 World  8.2 5.6 6.6 4.3 5.6 4.1 
 % of total importsa 0.005%  0.003%  0.004%  0.002%  0.003%  0.002%  
 Russian  Federation  0.5 0.6 0.9 1.3 2.7 2.0 
 Germany  1.2 1.0 0.9 0.7 0.8 0.8 
 South  Africa  5.1 1.5 3.0 0.0 0.7 0.5 
 Netherlands  0.0 0.8 0.0 0.3 0.1 0.3 
 China  0.0 0.1 0.0 0.0 0.1 0.1 
a Calculations based on "total business cycle" without gold bars, precious metals, coins, precious gems 
and stones, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS.  
Finally, for electricity imports (Table  4.11),  the main partners are all EU member Sta tes, 
France being the first one of them.  
Table 4.11 Imports of electrical energy, 2015 -20 
(CHF million, unless otherwise specified)  
 2015  2016  2017  2018  2019  2020  
HS 271600 Electrical energy  
 World  1,798  1,531  1,719  1,789  1,387  1,254  
 % of total 
importsa 1.1%  0.9%  0.9%  0.9%  0.7%  0.7%  
 
43 These statistics are based on the trade partners concerned and not on physical origin of the gas.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 133 - 
 
  2015  2016  2017  2018  2019  2020  
 France  1,120  738 829 869 792 677 
 Germany  432 433 520 565 355 304 
 Austria  204 220 268 307 211 199 
 Italy 42 139 102 48 29 74 
a Calculations based on "total business cycle" without gold bars, precious metals, coins, precious gems 
and stones, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS.  
The overall energy consumption mix remained stable overall during the review period 
(Chart  4.2). One may note , though , an increase of 3 percentage  points in nuclear power , as existi ng 
nuclear powerplants can continue to be exploited so long as they are safe; a slight increase of hydro, 
gas, wood and charcoal, household and industrial waste, and "other" (including solar and wind); and 
a neat regression of crude oil and petroleum produ cts (minus 6.6  percentage points).  
Chart 4.2 Gross energy consumption by source, 2015 and 2020  
 
Note:  TJ = terajoules.  
Source:  Federal Office of Energy (OFEN), Statistiques globales suisses de l'énergie 2020.  
Table  4.12 describes for 2020 the transformation process of primary energy supply by the 
various types of power plants, district heating facilities, and refineries into secondary energy, 
i.e. electricity, district heat, and oil refined prod ucts.  
As shown in Table  4.12, the totality of hydropower is used for electricity production, but the 
table understates the contribution of nuclear energy to the production of electricity .44 The efficiency 
factor of this process is 33%. All imported crude oil is refined, but most of the resulting oil products 
are used essentially for purposes other than electricity generation, namely heating and transport, 
while the main use of gas is electricity generation and heating.  
Table 4.12 Transformation process of primary energy supply, 2020  
(Unit: TJ)   
Hydro power 
plants  
 Nuclear power 
plants  
Classical thermal 
power plants and 
central heating 
facilities  
Gas factories  
Refineries  
Various 
renewables  
Energy consumed 
in the process of 
transformation 
and network 
losses  
Non-energetic 
consumption  
Wood    -3,300    -1,990    
Coal         
 
44 Nuclear heat produced by fission is converted to electricity through steam turbines.  
Chart 4.2   Gross energy consumption by source , 2015  and 2020
Crude oil and 
petroleum 
products 
41.8%2020 2015
Coal 0.5%Household and 
industrial waste 
5.2%Gas
11.0%
Source:  Federal Office of Energy (OFEN), Statistiques globales suisses de l'énergie 2020.Total:  1,083,910 TJ Total:  1,002,110 TJ Crude oil and 
petroleum 
products 
35.2%Household and 
industrial waste 
6.0%Gas
11.9% 
Coal 0.4% Wood and charcoal
3.9%Wood and charcoal
4.5%
Note:  TJ = terajoulesNuclear 
fuels 
22.2%Hydraulic power 
13.1%
Nuclear 
fuels
25.0%Hydraulic power 
14.6%
Other
2.2%Other
2.4%WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 134 - 
 
 
 
Hydro power 
plants  
 Nuclear power 
plants  
Classical thermal 
power plants and 
central heating 
facilities  
Gas factories  
Refineries  
Various 
renewables  
Energy consumed 
in the process of 
transformation 
and network 
losses  
Non-energetic 
consumption  
Waste    -48,960       
Crude oil      -123,230     
Oil products    -340  123,230   -5,890  -18,610  
Gas   -7,420    1,330 a -380  
Hydro  -146,220         
Nuclear fuels   -250,800        
Other renewables       -13,780    
Electricity  146,220  82,760  10,040    12,700  -31,140   
District heating   1,450  21,840     -2,200   
Total (losses)  0 -166,590  -28,140   0 -1,740  -39,630  -18,610  
a Biogas input in the natural gas network.  
Source:  FOE (2021), Overall Energy Statistics 2020 . 
Switzerland's electricity supply to end -users is secured by more than 600  companies. 
Suppliers range from small regional utilities to international energy groups. Most of them are public 
sector entities. Many of the municipal electricity works are also responsible for supplying water and 
gas. 
Total electricity production grew by 6.01% during the review period (Chart  4.3). In terms of 
sources, a slight decline occurr ed in the relative shares of nuclear and hydro, which still provide the 
bulk of the production, while thermal remained stable at a low level (4.0%). The share of renewable 
energies nearly doubled (from 2.7% to 5.1%), essentially due to the progression of s olar 
photovoltaic and marginally to wood and biofuels, while wind remained stable at a low level (0.2%).  
Chart 4.3 Electricity generation by source, 2015 and 2020  
 
Source:  FOE (2021), Overall Energy Statistic s 2020 . 
Table  4.13 describes the final energy consumption mix between households, industries, 
services, transport, and other uses measured in TJ for 2020. In total, transport was the first 
consumer with a relative share of 32.8%. Electric mobility is not (yet) included in t he statistic. 
Electricity consumption (and associated losses) in transport is only recorded for rail transport broadly 
speaking, including mountain railways, ski lifts, trams, and trolleybuses. Households accounted for 
29.3%, with their main consumption being electricity followed by oil and gas for heating. Industry 
(19.5%) and services (17.3%) come next, and both have a mix where electricity, followed distantly 
by gas or oil heating products, predominates.  
Chart 4.[CHE]  Electricity generation by source, 2015 and 2020
Nuclear
33.5%
Solar PV
1.7%
Biofuels 0.5%Hydro 
59.9%
Wind 0.2%Thermal
power
4.0%Renewable 
energies 
Total:  65,957 GWh Total:  69,923 GWh Solar PV 
3.7%
Biofuels 0.6%20152020
Wood 0.3%Hydro 
58.1%
Wind 0.2%Wood 0.6%
Source:  Federal Office of Energy (OFEN), Statistiques globales suisses de l'énergie 2020.Renewable 
energies Thermal
power
4.0%Nuclear
32.9%WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 135 - 
 
 Table 4.13 Final energy consumption, 2020  
(Unit: TJ)  
 Total final  
consumption  Households  Industry  Services  Transport  Statistical 
difference, 
including 
agriculture  
Wood energy  39,480  17,100  11,720  9,700  n.a. 960 
Coal 3,660  100 3,560  n.a. n.a. n.a. 
Waste  11,510   11,510  n.a. n.a. n.a. 
Refined products  327,830  59,470  11,680  27,600  226,720  2,360  
Gaz 112,860  47,350  38,090  25,090  1,060  1,270  
Other renewable 
energies  30,420  17,200  1,850  3,660  7,260  450 
Electricity  200,570  69,470  60,070  57,630  10,080  3,320  
District heating  21,070  8,340  7,120  5,610  n.a. n.a. 
Total 747,400  219,030  145,600  129,290  245,120  8,360  
n.a. Not applicable.  
Source:  FOE (2021), Overall Energy Statistics 2020 . 
4.2.2.1.2   Policy developments   
4.2.2.1.2.1   Environmental issues  
4.84.   Between 2015 and 2019, the level of CO 2 emissions (Chart  4.4) declined by 4.9%, from 
38.8 million tonnes CO 2 in 2015 to 36.9  million tonnes in 2019. This shows a decoupling of CO 2 
emissions from GDP. While progress in decoupling has slowed, the OECD underlines that "among 
OECD countries Switzer land gets closest in aligning the prices of CO 2 emission".45 The share of CO 2 
emission priced above EUR  60, a midpoint estimate of the carbon cost, has increased since 2020, 
notably in the housing sector. Industrial emissions are priced above the EUR  60 be nchmark for the 
first time in 2021.  
Chart 4.4 Total CO 2 emissions, 2015 -19 
(Million tonnes)  
 
Note:  Without international aviation, international navigation, Land Use, Land use Change and Forestry 
(LULUCF), an d Sector 6 (system boundaries according to the Kyoto Protocol).  
Source:  Federal Office for the Environment, Switzerland's Greenhouse Gas Inventory .  
4.85.   The energy policy followed by Switzerland during the period under review and planned for the 
future finds i ts root in a decision taken by the Federal Council  and the Federal Assembly in May  2011 
in the wake of the Fukushima reactor disaster to progressively abandon nuclear energy and to 
 
45 OECD (2019), OECD Economic Surveys: Switzerl and, p. 23. Because of its lower energy intensity and 
almost carbon -free production of electricity, Switzerland's GDP carbon intensity is low compared to other OECD 
countries. Ibid.  
35.536.036.537.037.538.038.539.039.5
2015 2016 2017 2018 2019Graph 4. [CHE] Total CO2emission, 2015 -19
(million tonnes)
Source:  Federal Office for the Environment FOEN, Switzerland's greenhouse gas inventory. Viewed at: 
https://www.bafu.admin.ch/bafu/en/home/topics/climate/state/data/greenhouse -gas-inventory.htmlNote: Without international aviation, international navigation, LULUCF and sector 6 (system boundaries according to the Kyoto protocol).WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 136 - 
 
 promote energetic efficiency and renewable energy. In this regard, a new en ergy strategy was 
adopted, the Energy Strategy 2050.46 The Strategy has resulted in the complete  revision of the 
Federal Energy Law (RS 730.0), which was adopted by the Federal Assembly in September  2016 
and approved by the Swiss electorate in May  2017, an d entered into force in January  2018. There 
have also been important revisions of legislation in the field of electricity.  
4.86.   Since the new Energy Law was drafted to a large extent before the period under review, its 
then future provisions were described ext ensively in the previous TPR report.47 However , some of 
its elements have been prolonged or amended. Its main elements consist of:  
• Setting indicative consumption, production, and emissions targets: compared to that 
of 2000, energy consumption per capita should diminish by 16% in 2020 and 43% in 2035, 
and consumption of electricity per capita by 3% in 2020 and by 13% in 2035. The local 
production of electricity from renewable energies (discounting hydropower) starting from 
a 2015 baseline of 2,830  GWh should rise to 4,400  GWh in 2020 and 11,400  GWh in 2035;  
• Creating stricter standards of energy efficiency for buildings, machines, vehicles, and other 
equipment; introducing new energy labels; and extending publicity campaigns and 
vocational training pr ogrammes on energy efficiency;  
• Increasing the grid surcharge rate (paid by consumers to foster renewable energies) from 
CHF 0.015/kWh to CHF  0.023/kWh, including CHF 0.013 /kWh for feed -in tariffs for 
renewables, CHF 0.002 /kWh for investment aid for rooftop  photovoltaic systems, 
CHF 0.003 /kWh for support for large hydro (which is suffering from depressed European 
wholesale prices), CHF 0.002 /kWh for reimbursement of the grid surcharge to 
electricity  intensive industries, and CHF 0.001 /kWh for renaturation of  rivers;  
• Replacing the previous feed -in system with feed -in premiums to entice producers to sell their 
electricity when demand is high, giving them an incentive to sell electricity when it is in short 
supply and thus to fetch higher prices. This system is  of limited duration, as it will only be 
granted for up to five years after the coming into force of the new law. These feed -in 
premiums are going to expire by the end of 2022. No new plants are going to be granted 
feed-in premiums but plants in the feed -in premiums system are going to receive their 
remuneration until  the end of their remuneration period (15 -20 years).  
• Extending the so -called "one -off investment grants" (30% maximum of the investment 
compared to a "reference" installation) to new beneficiar ies: photovoltaic installations of 
more than 30  kW, large new hydro -electric power stations with a production capacity of 
more than 10  MW, and large -scale renewals or extensions of hydro -electric power stations, 
the financing of this measure being ensured by a network supplement paid by electricity 
consumers. These subsidies will be available until 2030 at the latest. The one -off investment 
grants were extended to other technologies starting 1  January  2018, since the feed -in 
premiums were about to phase out . According to the current law, the following renewable 
plants are eligible for investment grants until the end of 2030:  
• Large -scale hydropower (>10  MW) plants; up to 40% of investment costs;  
• Renewed and refurbished small -scale hydropower plants up to 60% of investment costs 
(exclusion of smallest plants <300  kW); 
• Biomass (sewage gas, incineration plants, wood -fired power plants); up to 20% of 
investment costs;  
• Photovoltaics (2  kW-50 MW); up to 30% of investment costs; and  
 
46 FOE, "What is the Energy Strategy 2050?" Viewed at: 
https://www.bfe.admin.ch/bfe/en/home/policy/energy -strategy -2050/what -is-the-energy -strategy -2050.html . 
The Energy Strategy 2050 is under permanent review a nd will be selectively adapted and expanded.  
47 WTO document WT/TPR/S/355/Rev.1, 22  September  2017, paras. 4.57 -4.62. WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 137 - 
 
 • Contribution for "seek and find" for geothermal plants.48 
4.87.   The 2018 Federal Energy Law also instituted a  specific support regime for loss -making hydro 
power plants within a limited financial envelope , time frame (five years and financed by a network 
supplement paid by electricity con sumers) , and subject to a cap . The support is going to be phase d 
out by the end of 2030. The support only applies if the electricity prices are too low to cover the 
costs. It also contained various provisions for shortening and simplifying approval procedu res for 
new installations for the production of electricity from renewable sources. Since 1  January  2018, the 
use and continued expansion of renewable energy have been proclaimed to be in Switzerland's 
national interest.  
Switzerland's initial Nationally De termined Contribution (NDC) under the Paris Agreement was 
a reduction of 50% of its greenhouse gas (GHG) emissions by 2030 compared to 1990 levels. The 
Federal Council announced the objective of climate neutrality in 2050 in August  2019.49 On 
9 December 20 20, Switzerland updated its NDC by committing to reduce GHG emissions by "at least 
50%" by 2030 compared to 1990 levels and by committing to climate neutrality by 2050.50 This 
objective was to be reached by a total revision of the CO 2 Law adopted by the Fe deral Assembly on 
25 September  2020. This revised law would inter alia have provided for the possibility for the Federal 
Council to raise the CO2 tax and introduce a new tax on plane tickets.   
Following the rejection by the Swiss population in June  2021 of this proposed revision of the 
CO2 Law, a partial amendment was adopted in December  2021 in order to temporarily prolong some 
limited and unchallenged measures of the CO 2 Law and to avoid a legal void.51 The measures that 
will be prolonged for three  more years (2022 -24) include the maintenance of emission targets for 
greenhouse gases (i.e. a reduction of 20% in 2020 compared to the 1990 basis and an annual 
reduction of 1.5%, three quarters of these reductions being realized in the Swiss territory (as  
opposed to compensations made abroad)) and the obligation for fuel importers to offset CO 2 
emissions, in part, by investing in projects for climate protection. As before, importers will be allowed 
to pass on the tax up to CHF  0.05 per litre to consumers a nd will continue to have their tax 
reimbursed if they pledge to diminish their emissions by an additional 2% per year. Tax rebates on 
natural gas, liquid gas, and bi o-fuels are also maintained until 2024.  
In December  2021, the Federal Council submitted fo r public consultation a new 
comprehensive revision of the CO 2 Law for the period 2025 -30. This proposed revision contains the 
following main new measures: (i)  funding for removing fossil heating systems; (ii)  lowering of the 
emission ceilings for new cars and new trucks sold on the Swiss market to be similar to the ceilings 
applied by the European  Union; (iii)  funding for new charging infrastructure for electric vehicles; 
(iv) blending obligations for aviation fuel suppliers similar to the obligations appli ed by the 
European  Union; (v)  crediting of carbon capture and storage in the emissions trading scheme; and 
(vi) reporting requirements of the financial risks of climate change for the Swiss National Bank (SNB) 
and the financial supervisory authority. Contr ary to the version of the CO 2 law that was rejected in 
June 2021, the new draft submitted by the Federal Council in December does not provide for new 
taxes.  
4.2.2.1.2.2   Electricity   
Switzerland both imports and exports electricity (Table  4.7). It exports electricity in the 
summer and imports it in winter to cover usage peaks and to balance seasonal variations. The gap 
between winter peak demand and domestic power generation has increased in recent years, and 
 
48 As from 1  January  2023, the eligibility for investment grants will be extended to all renewable 
technologies until 2030. The proposal sub mitted by the Federal Council in June  2021 for a revision of the 
Energy Law provides for a further extension of investment grants until 2035.  
49 Federal Council (2019), "Federal Council Aims for a Climate -Neutral Switzerland by 2050", 28  August.  
50 Switzerla nd submitted a further update of its NDC in December  2021. Switzerland's Intended 
Nationally Determined Contribution (INDC) and Clarifying Information . Viewed at: 
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Switzerland%20First/Swiss%20NDC%202021 -
2030%20incl%20ICTU_December%202021.pdf . On climate change policy, see Federal Council (2021) 
Switzerland's Long -Term Climate Strategy.   
51 Federal Law on the Reduction of Greenhouse Gas Emissions – Modification of 17  December  2021.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 138 - 
 
 electricity imports have accounted for a growing share of Sw itzerland electricity demand in recent 
winters. This is a trend that is likely to continue with the phase -out of nuclear power.52 
From a geographical and technical point of view, Switzerland is deeply integrated in the 
European electricity network. The ele ctricity flows passing through its borders exceed the country's 
production and consumption. Switzerland is third to Germany and France in its importance as a 
major electricity transit country. Switzerland's extensive hydro -pumped storage and reservoir 
capacity are of strategic importance to the European  Union. The country is instrumental in 
supporting the growing share of variable renewable electricity in Europe and contributing to ensuring 
grid stability by offering balancing services.53 
Still, there is no  formal agreement between the European  Union and Switzerland on electricity 
and, according to the authorities, conclusion of such an agreement is unlikely in the foreseeable 
future, as negotiations on an Institutional Framework Agreement (IFA) ended unsucc essfully in May 
2021 and the European  Union had made the Electricity Agreement conditional on the IFA.  
The IEA describes the effects of the absence of such an agreement in the following manner:  
Electricity trading continues, albeit in a suboptimal way and  to the detriment of all market 
participants, as EU network codes and guidelines have successively been introduced since 
August  2015. EU regulation on capacity allocation and congestion management, forward 
capacity allocation and balancing explicitly exclu des Switzerland from market coupling for the 
day-ahead and intraday markets, until the country adopts EU legislation on electricity and 
signs a bilateral agreement with the European  Union. Furthermore, the introduction of 
flow-based market coupling with no  computation of network capacity at the Swiss borders has 
massively increased uncontrolled loop flows.  
In 2016, the social welfare loss at the Swiss border from suboptimal trading due to the 
exclusion from market coupling was estimated at around 80  millio n euros.[*] Those losses 
might increase in the future as additional network codes become effective, and Switzerland 
would be excluded from an expanding area of co -operation.54 
Source:  Information provided by the Swiss Federal Office of Energy.  
[*original] ACER (Agency for the Cooperation of Energy Regulators) (2017), "Annual report on the 
results of monitoring the internal electricity and gas markets in 2016", Electricity Wholesale Market 
Volume (Slovenia), 
www.acer.europa.eu/Official_documents/ Acts_of_the_Agency/Publication/ACER%20M  
arket%20Monitoring%20Report%202016%20 -%20ELECTRICITY.pdf.]  
4.95.   A notable regulatory development was the increase of the grid surcharge at CHF 0.023/kWh 
on 1 January  2018. The current law foresees a maximum grid surcharge  of CHF 0.023/kWh and 
currently the maximum is being charged to the consumers. The shares and the measures financed 
by the grid surcharge are described in Chart  4.5. 
 
52 IEA (2018), Energy Policies of IEA Countries: Switzerland 2018 Review , p. 67. 
53 IEA (2018), Energy Policies of IEA Countries: Switzerland 2018 Review , Box 2.1, p.  29. 
54 IEA (2018), Energy Policies of IEA Countries: Switzerland 2018 Review . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 139 - 
 
 Chart 4.5 Types of plants and measures fina nced by the grid surcharge  
 
Source:  Information provided by the authorities.  
4.96.   Switzerland is one of the signatories of a declaration of intent on the prevention of crisis in 
the electricity sector, which was adopted in December  2021 at a ministerial meetin g of the 
Pentalateral Energy Forum.55 According to the Federal Department of the Environment, Transport, 
Energy and Communications (DETEC), this declaration opens the way to the development of 
solidarity measures that could be put in place at the regional level in case of a crisis on the basi s of 
an EU regulation on risk -preparedness in the electricity sector.56 The form of the cooperation among 
these countries remains to be negotiated, particularly the inclusion of Switzerland.  
4.97.   Within the framework of the Electricity Networks Strategy, a new  Federal Law on the 
Conversion and Expansion of the Electricity Grid was adopted. It improves the framework conditions 
and thus the prerequisites for the optimization and necessary development of the electricity 
networks that meet demand within the require d time frame.57 Thew new law provides for 
amendments to Federal Electricity Law (RS  734.0), the Federal Electricity Supply Law (RS  734.7) 
and to a number of related ordinances. Most of the provisions of the new laws and ordinances 
entered into force on 1  June 2019.  
4.98.   In June  2021, the Federal Council adopted a dispatch on the Federal Law on a Secure 
Electricity Supply from Renewable Energy Sources58, through which it is proposing to revise the 
Energy Law and the Electricity Supply Law. In submitting this bill , the Federal Council's aim is to 
support a transition to a sustainable and climate -friendly energy system while at the same time 
ensuring a high level of security of supply. The Federal  Council considers that large -scale 
electrification is needed in trans port and heating if Switzerland is to meet the goals of its Energy 
Strategy 2050 and its Long -Term Climate Strategy, which calls for a rapid and substantial increase 
in the use of renewables in domestic power generation. Further measures are also needed to  improve 
grid and supply security. The proposed legislation will thus create a legal basis for greater planning 
 
55 Memorandum of Understanding of the Pentalateral Energy Forum on Risk Preparedness in the 
Electricity Sector. This Forum consists of Austria, Belgium, France, Germany, Luxembourg, the Netherlands 
and Switzerland.   
56 Regulation (EU) 2019/941 of the European Parliament and of the Council of 5  June 2019 on 
Risk-Preparedness in the Electricity Sector.  
57 FOE, "New Framework Conditions for  Developing the Network". Viewed at: 
https://www.bfe.admin.ch/bfe/en/home/supply/electricity -supply/electric ity-networks/grid -development -
electricity -grid-strategy.html . 
58 Federal Council, "Federal Act on a Secure Electricity Supply from Renewable Energy Sources". 
Viewed  at: https://www.bfe.admin.ch/bfe/en/home/supply/electricity -supply/federal -act-renewable -electricity -
supply.html .  
Feed-in premium 
0.75Rp./kWh
Investment aid PV
0.8Rp./kWh
Investment aid biomass
0Rp./kWhInvestment aid small 
hydro
0.04Rp./kWhInvestment aid large 
hydro 0.1Rp./kWhMarket premium for 
existing hydro
0.2Rp./kWhQuality improvement of 
bodies of water
0.1Rp./kWhTenders for energy 
efficiency 0.1Rp./kWhGeothermal plants 
0.02Rp./kWhRefund 
0.2Rp./kWhGraph 4. [CHE] Types of plants and measures financed by the grid surcharge
Source: Information provided by the authorities.WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 140 - 
 
 certainty and incentives to invest in expanding renewable electricity production and grid 
integration.59  
4.99.   Regarding the structure of the electri city market and its reform, the bill submitted by the 
Federal Council in June  2021 proposes to fully open the electricity market to individual consumers 
and households to strengthen decentralized renewable  power generation  and facilitate new models 
(such as energy communities or so -called "prosumers") and to improve the regulation of the 
electricity networks. It also pro poses new targets regarding renewable electricity production, 
hydropower production, and energy consumption:  
• New renewable electricity production (without hydropower): target of 17 terawatt -hours 
(TWh) by 2035; indicative target of 39  TWh by 2050;  
• Hydropo wer production: target of 37.4  TWh by 2035; indicative target of 38.6  TWh 
by 2050; and  
• Energy consumption: target of -43% compared to 2000 for 2035 and -53% for 2050. 
Electricity consumption: target of -13% compared to 2000 for 2035 and -5% for 2050 
(becau se of higher electricity demand in order to reach the zero emissions target, the 
electricity efficiency target for 2050 is by only 5% compared to 2000).  
4.2.2.1.2.3   Nuclear energy  
The 21  March  2003 Nuclear Energy Law (RS  731.2) was amended in 2016 by Annex  No. II 7 
of the Energy Law of 30  September  2016, which entered in force on 1  January  2018,  in two respects. 
The first amendment creates a full ban on new nuclear power plants. Und er the new law, no permits 
for the construction of nuclear power plants or any basic changes to existing nuclear power plants 
will be delivered. The existing nuclear power plants may operate for as long as they remain safe, as 
determined by the Federal Nuc lear Safety Inspectorate, an independent authority of the 
Confederation. The second amendment bans the reprocessing of spent fuel. In 2003, the Federal 
Assembly passed a moratorium on the export of spent fuel rods for the purpose of reprocessing. 
This law was in force until June  2016. Under the new legislation, the export of spent fuel rods for 
reprocessing is banned indefinitely.  
4.2.2.1.2.4   Renewable energies (including hydropower)  
Aside from the changes to the regulatory and support regime for renewable energies 
instituted by the 2018 Energy Law and described above ( Section  4.2.2.1.2.1),  the main development 
during the review period was the launch of a significant reform of the support regime through the 
Federal Council's proposal on the Federal Act on a Secure Electricity Supply from Renewable Energy 
Sources ( Section  4.2.2.1.2.2).   
4.2.2.1.2.5   Oil 
The liberal regime of crude oil importation and of refined products importation, production, 
and distribution did not change during the period under review.  
The Cressier plant, the only refinery left in Switzerland and which belongs to the Dutch -based 
Varo Energy, is de facto the only importer of crude oil and the only local producer of refined products. 
It is supplied with crude oil by one cross -border pipeline owned also by Varo Energy; it has a 
production capacity of 68,000  barrels per day and it provides  about one quarter of the refined 
products consumed in Switzerland.  
There is a stockpiling obligation under the Federal Law on National Economic Supply 
(RS 531). There are no public stockpiles. The scheme is operated by the private sector and 
administered by CARBURA, the association of importers of petroleum products. Imports are subject 
to a levy to fund the scheme (guarantee fund contributions). Swiss compulsory stockpiling of 
petroleum products exceeds the IEA minimum stock obligation. According to CARBU RA's latest 
 
59 Federal Council, "Federal Act on a Secure Electricity Supply from Renewable Energy Sources".  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 141 - 
 
 available report (2020)60, Switzerland has not suffered from any oil supply shortage during the 
COVID -19 pandemic to date.  
CARBURA attributes in the name of the Government "general import permits" for the 
importation of fuels and similar produc ts subject to the stockpiling obligations. The list of those of 
products is defined in an ordinance that was revised in May  2017.61 The ordinance does not contain 
any nationality or ownership requirement for importing companies, but these companies have to  be 
registered in Switzerland. The other conditions for the attribution of permits are purely technical.62  
Finally, regarding distribution of refined products and filling stations, t he retail market is fully 
open to competition and several foreign -owned f irms operate on the Swiss market.  
Switzerland is also a major global hub for oil trading.  
4.2.2.1.2.6   Gas 
4.108.   Switzerland has more than 100  gas utilities, the vast majority of which are akin to the 
electricity utilities and are typically locally dominant companies owned by municipalities. They are 
also often involved in other activities, such as supplying electricity, heat, or water. The utilities vary 
greatly in size. Vertical integration in gas transmission and distribution is strong. For purchasing gas, 
the local utili ties have set up four regional associations: Gasverbund Mittelland AG, Erdgas 
Ostschweiz AG, Gaznat SA, and Erdgas Zentralschweiz AG (EGZ). Each association operates its own 
high-pressure grid and supplies gas to its owners at cost. The associations, in tu rn, obtain gas at 
cost through Swissgas AG, the gas industry's vehicle for imports, or purchases it on their own at 
European wholesale gas markets. Except for EGZ, the regional associations also have direct import 
contracts with foreign suppliers.  
Until no w, the gas market was largely self -regulated. The 1963 Law on Pipelines only foresaw 
an obligation to carry. Pipeline managers had only an obligation to execute transport contracts for 
third parties within the limits of technical possibilities and of sound  management and in as much the 
requesting third party offered a proper remuneration. In case of dispute, either the FOE decides on 
a case -by-case basis that the distributing company must conclude a contract and decides on the 
contract conditions or the Com mission Competition (COMCO) can impose the right to transport 
basing itself on cartel laws. Until now, there was not a uniform framework applied nationally, and 
thus various supply conditions for third parties applied in four different supply zones and acc ess to 
networks were decided on a case -by-case basis.  
However, this situation changed towards the end of the period under review due to a 2020 
decision by COMCO to open the market in central Switzerland and perhaps in the rest of the territory 
in the futu re.63 In addition, the Federal Council  put into consultation between October  2019 and 
February  2020 a bill of a law on gas supply64, whose main provisions are:  
• free choice of the provider for customers above 100  MW/h (the same threshold as the 
present one for electricity), i.e. 10% of consumers located in 40,000  sites and 
representing 70% of the consumption;  
 
• separating the accounts of the monopoly activities (network) from those of activities 
subject to competition;  
 
• institution of an independent market area manager to allocate capacities;  
• creation of an "entry -exit" system (i.e. single point of entry, single  point of exit) consistent 
with the EU internal gas market framework (i.e. the Gas Directive, the Gas Regulation, the 
 
60 CARBURA (2 020), Annual Report . Viewed at: 
https://epaper.cubemedia.ch/Carbura/Geschaeftsbericht_2020_FR/#page=1 . 
61 Ordinance of 10  May 2017 on the Stockpiling of Liquid Fuels (RS 531.215.41).  
62 For the details of the conditions of attribution of the three types of permits, see: CARBURA, General 
Import Permits (GIP) . Viewed at: https://www.carbura.ch/fr/permis -generaux -dimportation -pgi. 
63 COMCO (2020), "La COMCO ouvre le marché du gaz en Suisse centrale", 4  June.  
64 DETEC (2019), "Le Conseil fédéral ouvre la consultation relative à la loi sur l'approvisionnement en 
gaz", 30  October.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 142 - 
 
 Regulation establishing the Agency for Cooperation of Energy Regulators (ACER), and the 
Network Code Regulations),  which will facilitate c ross-border trade;  
 
• transformation of the Electricity Commission into an Energy Commission with jurisdiction 
over gas regulation;  and 
 
• two possible systems for measurement, one fully competitive and one where measurement 
would be left to the network operators.  
4.2.2.2   Liechtenstein  
4.111.   Electricity is the main energy source in Liechtenstein (Chart  4.6), accounting for roughly 
one third of total energy  consumption, followed by natural gas (20.7%) and diesel (11.5%).  
4.112.   The state -owned Liechtensteinische Kraftwerke (LKW) is a producer and importer of 
electricity, mainly from Switzerland, for distribution in Liechtenstein. Liechtenstein's energy needs 
in 2020 were largely met through imports (75%). Liberalization of the electricity market, based on 
European Economic Area (EEA) law, started with the adoption of a new Electricity Law in 2002, which 
opened the market for large customers. The market is now fully  liberalized. Besides LKW, four other 
electricity traders are currently active within the electricity market. Those four traders together have 
a market share of 7.9%. In order to be active on the electricity market, the electricity trader is not 
required t o have an establishment in Liechtenstein but has to be registered at Swissgrid AG. 
Transmission tariffs are subject to approval by the regulator, the Energy Market Commission. The 
current Electricity Market Act65 implements EC Directive 2009/72 (third ener gy package for 
electricity).  
4.113.   As of 2005, independent power producers (IPPs) may sell electricity to any customer. The 
first IPPs started to enter the market in 2011. There are small -scale hydroelectric power  producers 
besides LKW, and the contribution of independent solar power producers has been increasing.  
Chart 4.6 Energy consumption, 2020  
 
Source:  Office of Statistics Liechtenstein, eTab, Energy Statistics 2020 . 
 
65 Law of 20 June 2002 on the Electricity Market, as amended (LR 730.3).  
District heating from 
waste incineration
10.8%
Petrol
7.6%
Wood
3.8%
Solar collectors
0.8%
Liquid gas
0.1%
Electricity
33.7%Natural gas / bio gas
20.7%Diesel
11.5%Heating oil
11.1%
Source: Energy statistics, available on eTab, Office of Statistics Liechtenstein, 2020.[LIE] Chart 4.1 Energy consumption/import, 2020WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 143 - 
 
 4.114.   The Energy Strategy 2020 was passed in 2012. It included the following goals for the period 
up to 2020:  
• increasing energy efficiency by 20% to stabilize consumption compared to expected 
consumption without efficiency measures;  
• increasing the proportion of  domestic renewable energy sources to 20% of total energy 
requirements; and  
• reducing greenhouse gas emissions by 20% compared to 1990.  
4.115.   Numerous measures have been implemented and incentives created to use renewable 
energy sources (e.g. financial subsidies for renewable energy sources like photovoltaic systems, 
heat pumps, district heating, improved building insulation, and building certificates like 
MINERGIE -A). In addition to state subsidies, the municipalities also made an important contribution 
through t heir own measures including subsidies and energy consulting. All municipalities in 
Liechtenstein are certified by the European Energy Award and set measures to improve the energy 
efficiency of their own buildings.  
4.116.   The Government designed a new Energy Stra tegy 2030 & Energy Vision 2050, which was 
adopted in 2020. Its objective is to increase the share of renewable energies from 8.2% in 2008 to 
30% by 2030, through subsidies for improved insulation, sun -collectors, photovoltaic systems, and 
tighter energy st andards in construction. Liechtenstein has implemented a new seven -year feed -in 
tariff scheme, which ends in December  2022. There is an ongoing study to replace and extend the 
existing system, with a new goal for photovoltaic, where the Government and the Federal Assembly 
want to double the installed photovoltaic capacity from 2.5  MW p/a to a minimum of 5.0  MW p/a 
until 2030.  
4.117.   Liechtenstein has a CO 2 law66 that directly derived from the Swiss CO 2 Law, and which applies 
the same rates. However, unlike in Swit zerland, the revenues of this tax go to the general budget 
and are not specifically allocated to public health spending.  
4.118.   In addition to the CO 2 Law and the 2012 Law on Emissions Trading, the environmental 
aspects of Liechtenstein's energy policy are also g overned by its commitments  under the Paris 
Agreement. The 2015 initial NDC of Liechtenstein was a reduction of 40% of its greenhouse gas 
emissions by 2030 compared to 1990 levels.67 This NDC still stands.  
4.3  Manufacturing  
4.3.1   Switzerland  
4.119.   Switzerland remains one o f the most industrialized countries among developed countries, 
thanks largely to its orientation towards high -end products and good framework conditions, notably 
regarding education and training, infrastructure, R&D, and taxation. The contribution  of 
manuf acturing to GVA (Table  4.14) even increased during the period under review, from 18.3% in 
2016 to 18.7% in 2019 -20 and was not affected by the COVID -19 pandemic in 2020.  
4.120.   Chemicals and pharmaceuticals are the largest subsector within manufacturing, and the 
pharmaceutical industry is the largest category within this subsector (Table  4.14). The contribution 
to GVA of chemicals and pharmaceuticals as a whole rose from 5.7% in 2016 to 6.6% i n 2020 and 
the contribution to GVA of pharmaceuticals increased from 4.7 % in 2015 to 5.2% in 2019. 
Computers, electronics, watches and clocks is the second largest subsector, and its contribution to 
GVA grew only slightly from 3.2% in 2016 to 3.3% in 2019. Machinery and equipment, a traditional 
specialty of Switzerland and its  third largest subsector, declined slightly during the period (from 
1.8% in 2016 to 1.7% in 2019), while the fourth largest sector, fabricated metal products, grew 
from 1.4% to 1.5%.  
 
66 Law of 6 September 2013 on the Reduction of CO 2 Emissions (LR  814.065).  
67 Liechtenstein's Intended Nationally Determined Contribution . Viewed at: 
https://www4.unfccc.int/sites/ndcstaging/PublishedDocu ments/Liechtenstein%20First/150422_INDC_FL.pdf . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 144 - 
 
 Table 4.14 Contribution to GVA of the various manufacturing subsectors, 2016 -20 
  2016  2017  2018  2019  2020  
GVA share (% of total GVA)  
Manufacturing  18.3 18.4 18.5 18.7 18.7 
Food and tobacco products  1.9 1.9 1.7 1.8 .. 
Textiles and apparel  0.2 0.2 0.2 0.2 .. 
Wood and products of wood and cork, except 
furniture  0.5 0.5 0.5 0.5    .. 
Paper and paper products  0.1 0.1 0.1 0.1 .. 
Printing and reproduction of recorded media  0.3 0.3 0.2 0.2 .. 
Chemicals and pharmaceuticals  5.7 6.0 6.3 6.5 6.6 
Coke, chemicals and chemical products  1.1 1.0 1.2 1.2 .. 
Pharmaceutical products  4.7 5.0 5.1 5.2 .. 
Rubber and plastic products  0.4 0.4 0.4 0.4 .. 
Other non -metallic mineral products  0.4 0.4 0.3 0.3 .. 
Basic metals  0.2 0.2 0.2 0.2 .. 
Fabricated metal products, except machinery and 
equipment  1.4 1.5 1.5 1.5 .. 
Computer, electronic and optical products; watches 
and clocks  3.2 3.1 3.3 3.3 .. 
Electrical equipment  0.8 0.7 0.7 0.7 .. 
Machinery and equipment n.e.c.  1.8 1.8 1.8 1.7 .. 
Motor vehicles, trailers and semi -trailers  0.1 0.1 0.1 0.1 .. 
Other transport equipment  0.3 0.3 0.3 0.3 .. 
Furniture; other manufactured goods  0.7 0.7 0.7 0.7 .. 
Repair and installation of machinery and equipment  0.2 0.2 0.2 0.3 .. 
.. Not available.  
Source:  Federal Statistical Office (FSO), Production Account . 
4.121.   There has been a long -term trend within Swiss manufacturing towards an increasing share 
of high -end products, as illustrated by UNIDO's Competitive Industrial Performance  Index 
(Chart  4.7). 
Chart 4.7 Productio n structure  
 
Source:  UNIDO, Competitive Industrial Performance Index (CIP), Switzerland. Viewed at: 
https://stat.unido.org/cip/#.  
4.122.   The Swiss industry is highly productive, and its contribution to employment ( Table  4.15) is 
significantly lower than its contribution to GVA (Table  4.14). This is particularly true for 
pharmaceuticals, which in 2019 accounted for 1.1% of employment and 5.2% of GVA.  
16.016.617.217.818.419.019.6
54.0 55.9 57.8 59.7 61.6 63.5 65.4 67.3Chart 4.[CHE]   Production Structure
Share of medium -and high -tech manufacturing value added share in total manufacturing value added 
(%)Share of manufacturing value added share in total GDP 2019
2010
2000
Source: UNIDO, Competitive Industrial Performance Index (CIP), Switzerland. Viewed at: 
https://stat.unido.org/cip/#.WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 145 - 
 
 4.123.   The negative impact of the COVID -19 pandemic on employment was very  much limited in 
Switzerland through the use of short -time work. The manufacturing industry also used short-time 
work to a large extent, but was less dependent on it compared to sectors such as the hotel and 
restaurant industry. There were no COVID -19-specific developments in the employment shares in 
2020 and 2021. The full -time equivalent employment share of manufacturing fell from 15.6% to 
15.2% between Q3 2019 and Q3 2021 (Chart  4.8). 
Chart 4.8 Employment sh are of manufacturing, 2000 -21 
(% of total employment)  
 
Note:  Based on jobs in full -time equivalents.  
Source:  GSO, Job Statistics.  
4.124.   The contribution of manufacturing to total employment declined during the period under 
review from 15.8% in 2015 to 15.4% in 2020 (Table  4.15). The largest employers  after 
pharmaceuticals are the subsectors of computer, electronic and optical products; wat ches and clocks 
(2.6% in 2020), followed by metal products (2.2% in 2020), and food and tobacco products (1.9%).  
Table 4.15 Contribution to employment of the various manufacturing subsectors, 
2016 -21 
 2016  2017 2018  2019  2020  2021  
(Q3)  
Jobs in full -time equivalents (% of total)a  
Manufacturing  15.8 15.7 15.7 15.6 15.4 15.2 
Food and tobacco products  2.0 1.9 1.9 1.9 1.9 1.9 
Textiles and apparel  0.3 0.3 0.3 0.3 0.3 0.3 
Wood and paper products, and printing  1.6 1.6 1.5 1.4 1.4 1.4 
Coke, chemicals and chemical products  0.7 0.7 0.7 0.7 0.7 0.7 
Pharmaceutical products  1.1 1.1 1.1 1.1 1.1 1.1 
Rubber and plastics products  1.0 1.0 0.9 0.9 0.9 0.9 
Metal products  2.3 2.3 2.3 2.3 2.2 2.2 
Computer, electronic and optical products; 
watches and clocks  2.5 2.5 2.7 2.6 2.6 2.6 
Electrical equipment  0.8 0.8 0.8 0.7 0.7 0.7 
0%5%10%15%20%25%
2000 Q1
2000 Q3
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3
2018 Q1
2018 Q3
2019 Q1
2019 Q3
2020 Q1
2020 Q3
2021 Q1
2021 Q3Chart 4.[CHE] Employment share manufacturing
Source: Federal Statistical Office, Job statistics. Viewed at: https://www.bfs.admin.ch/bfs/en/home/statistics/industry -
services/businesses -employment/jobs -statistics.html.Note:     Based on jobs in full time equivalents. (% of total employment)WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 146 - 
 
  2016  2017 2018  2019  2020  2021  
(Q3)  
Machinery and equipment n.e.c.  1.9 1.9 1.9 1.8 1.8 1.8 
Transport equipment  0.4 0.4 0.4 0.4 0.4 0.4 
Other manufacturing, repair and installation  1.3 1.2 1.2 1.2 1.2 .. 
.. Not available.  
a Based on Q4 for each year.  
Source:  FSO, Businesses and Employment .  
4.125.   The structure of Swiss industrial exports is described  in Section  1. 
4.126.   Switzerland has no industrial sectoral policy per se,  which stems from a deliberate decision 
and is a constant policy. For instance, the 2014 report of the EAER in answer to Postulate 
Bischof  11.3461 , entitled "An Industrial Policy for Switzerland" , states, after a long analysis of the 
concept of industrial policy and of foreign experiences, that:  
[A]s shown by the present analysis, in view of the difficulties to which the State is confronted 
to select  branches or companies, it has become increasingly clear abroad that an industrial 
policy (in particular in the meaning of a policy aimed at promoting industry) should be based 
on framework conditions that favour competitivity is much superior and yield mu ch better 
results. Such a policy targets directly the problems of productivity that hamper certain 
sectors et promote, inter alia, access to qualified workers, knowledge transfer, framework 
conditions favouring companies and infrastructures. However, its e ssential that all branches 
can access to economic promotion measures so as to not inflict the burden on the State to 
select some companies or branches but so as to allow performing competitors to succeed on 
the market.68 
4.127.   This "branch neutrality" policy has  been reaffirmed recently in an answer to a 2020 
parliamentary postulate  aiming at branches' specific innovation incentives (Postulate Franz 
No. 20.4187).69 
4.128.   According to a report published in October  2021 by the employers' organization Avenir 
Suisse70, the COVID -19 pandemic had mixed and differentiated effects on the Swiss industry. On 
the one hand, the global economic crisis negatively affected the Swiss exports, in particular 
machines, electronic equipment, and metals, but the pharmaceuticals and food sec tors grew, and 
for watches the high -end products progressed while the rest regressed. Telework was a challenge, 
but was mitigated by cross -border work. From a structural point of view, Avenir Suisse considers 
that the pandemic has accelerated pre -existing trends such as digitalization and has overall 
increased the resilience of the manufacturing sector.  
4.3.2   Liechtenstein  
4.129.   Manufacturing is an important activity in Liechtenstein as its share in the GDP (40.1%, 
Chart  1.2) exceeds by far average figures for developed countries. The sector represented 40% of 
the employment in 2020. As evidenced by these figures in contrast to mo st developed countries, no 
strong "tertiarization" has been observed in Liechtenstein so far. In absolute terms, full -time 
equivalent employment in the industrial sector rose from about 12,100 in 2001 to almost 13,700 by 
the end of 2020. The increase was n ot as steep as in the services sector, though. Productivity, 
i.e. GVA in relation to full -time equivalent employment, amounted to CHF  203,000 for industry and 
manufacturing in 2019. In 2020, a large part (56%) of these employees are foreign commuters from 
Switzerland and Austria and not necessarily Swiss or Austrian citizens.  
 
68 Unofficial translation by the Secretariat. EAER (2014), Rapport du 16 avril 2014 faisant suite au 
Postulat Bischof (11.3461) . Viewed at: https://www.newsd.admin.ch/newsd/message/attachments/34529.pdf . 
69 For the full text of the postulate and of the argumentation and negative answer of the Federal 
Council, see: https://www.parlament.ch/fr/ratsbetrieb/suche -curia-vista/geschaeft?AffairId=20204187 . 
70 Farman, C., Cosandey, J., and Rutz, S. (2021), "Perpétuer le Succès de l'Industrie Suisse", Avenir 
Suisse, October.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 147 - 
 
 4.130.   Table  4.16 provides the structure of employment in the manufacturing  sector by company 
size. 
Table 4.16 Structure of employment in the ma nufacturing sector by company size, 2020  
 
1-9 workplaces  10-49 workplaces  50-249 
workplaces  250+ workplaces  
E W E W E W E W 
Manufacturing  477 1,315   126 2,734  22 2,352  9  8,446  
Note:  E: enterprises; W: workplaces  (unit of production) . 
Source:   Office of Statistics Liechtenstein, Employment Statistics ; and ITU, ICT Price Baskets (IPB) . Viewed 
at: https://www.itu.int/en/ITU -D/Statistic s/Dashboards/Pages/IPB.aspx . 
4.131.   The manufacturing sector is diversified. In terms of employment (full -time equivalents), 
in 2020 the largest industrial sector is manufacturing of machinery and equipment  (7.9%), followed 
by construction (6.9%), manufacturing o f motor vehicles and transport equipment (6.7%), and 
manufacturing of food production, beverages, tobacco production (4.8%).71 In terms of share of 
GDP, in 2019 the most important industrial sectors are mechanical engineering (22.2%) followed by 
vehicle co nstruction (5.7%), food production (4.6%), and manufacture of basic metals and 
fabricated metal products (except machinery and equipment) (3.1%).72 Liechtenstein industrial 
companies, which include iconic brands such as Hilcona for food and Hilti for professional 
construction tools, also employed 58,200  persons abroad in 2019, i.e. three times more than 
domestically.  
4.132.   The manufacturing sector recovere d from the shock of the discontinuation of the SNB 
minimum CHF/EUR  exchange rate target (2015). Due to the COVID -19 pandemic , Liechtenstein's 
direct goods exports (excluding merchandise trade with Switzerland) declined sharply in 2020. The 
annual decrease of real goods exports amounted to 13.5% (2019: decrease of 2.2%). However, this 
decline was only about half as severe as in the financial crisis, when exports fell by 26.3% (2009). 
Liechtenstein still has a large trade surplus in exports/imports of goods. In 2020, the goods trade 
surplus was at 73% compared to 72% in 2019. This high trade surplus was also influenced by a 
decrease of the goods imports of 12.7% (2019: decrease of 3.4%). Mitigation measures taken by 
the Government included in particular intere st-free transitional loans for micro, small, and 
medium -sized enterprises (MSMEs), a provisional deferral of the payment of social insurance 
contributions and taxes, financial support for self -employed persons affected directly or indirectly by 
administrat ive lockdown measures, and short -time work allowances. Most of these support measures 
have been phased out.  
4.133.   In the 2021 -2025 Government Strategy, the Liechtenstein Government explicitly designated 
research and innovation as a priority, stating that Liechte nstein should continue to make intensive 
use of the opportunities offered by digitization. In 2021, 25.45% of the staff of industrial companies 
that are part of the Liechtenstein Chamber of Commerce and Industry are employed in R&D divisions. 
These compani es spent CHF 590 million on R&D in 2020, an increase of 2% compared to the 
previous year. This corresponds to approximatively 9.2% of the non -domestic turnover of these 
companies, a high number by international comparison.  
4.4  Services  
4.4.1   Telecommunications  servi ces 
4.4.1.1   Switzerland  
4.134.   During the period under review, the share of the telecommunications sector in both the GVA 
of Switzerland and in total employment declined slightly from already relatively low levels (from 
1.3% in 2015 -17 to 1.2% in 2018 -19 for GVA and from  0.7% in 2015 -19 to 0.6% in 2020 for 
employment) (Table  4.17). This can be explained by the fact that it is an industry with high 
productivity gains. This slight decline has been largely compensated in terms of both GVA 
 
71 Office of Statistics Liechtenstein, eTab, Employment Statistics for 2020 . 
72 Information provided by the authorities.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 148 - 
 
 contribution and employment by the g rowth of the ICT sector that it enables (from 2.6% in 2015 
to 2.8% in 2019 in terms of GVA and from 2.2% of employment in 2015 to 2.7% in 2020).  
Table 4.17 Evolution of the contribution of the telecommunications and ICT sectors to 
GVA and to total employment, 2015 -20 
 
2015  2016  2017  2018  2019  2020  
GVA share (% of total GVA)  
Telecommunications  1.3 1.3 1.3 1.2 1.2 .. 
IT and other information services  2.6 2.6 2.7 2.7 2.8 .. 
GVA percentage change over previous year, at prices of preceding year  
Telecommunications  0.8 4.4 0.8 1.7 0.9 .. 
IT and other information services  3.9 4.0 4.5 5.3 4.6 .. 
Jobs in full -time equivalentsa 
Telecommunications  0.7 0.7 0.7 0.7 0.7 0.6 
IT and other information services  2.2 2.3 2.4 2.4 2.6 2.7 
.. Not available.  
a Based on Q4 for each year.  
Source:  FSO, Production Account ; and FSO, Businesses and Employment .  
4.135.   Switzerland has a very developed and mature telecommunications market using the latest 
technologies and enabling a wider ICT strategy (Box  4.2). Mobile coverage by a 4G/LTE network 
reached 100% during the period. Swisscom and Sunrise switched to a 5G network in April  2019 
reachi ng 90% coverage at the end of 2020, while Salt switched to a 5G network in August  2020. 
Switzerland, which is ahead of its neighbours for 5G deployment, considers this 5G technology of 
paramount importance for the future73, as it allows new applications su ch as the Internet  of Things, 
time-critical reliable remote -control (e.g. for medicine and "industry  4.0"), self -driving vehicles, 
smart energy grids, and more generally the management of a green economy.  
4.136.   The Federal Commission on Communications (ComCom) acknowledged  in May  202174 that 
by international standards the prices of mobile telecommunications in Switzerland remained among 
the highest, though the gap tends to narrow with other OECD countries.  
Box 4.2 Main economic indicators of Switzerland's telecommunications sector  
Population covered by a mobile -cellular network (2020) : 100%  
Population covered by at least a -4G network (2020) : 100% (world  average 64%)  
Mobile -cellular subscriptions per 100 inhabitants (2020) : 126 (world average 105)  
Fixed telephone subscriptions per 100 inhabitants (2020) : 34 
 
Households with Internet access at home (2019) : 92% (world average 72%)  
Households with a computer  at home (2018) : 93% ((world average 63%)  
Active mobile broadband subscriptions per 100 inhabitants (2020) : 102 (world average 75)  
Average monthly mobile broadband Internet traffic per mobile subscription (Mb - 2020) : 10,795  
Fixed broadband subscriptions pe r 100 inhabitants (2020) : 46 (of which 97%>10mbits)  
Average monthly fixed broadband Internet traffic per fixed subscription (Mb - 2020) : 211,907  
Percentage of individuals using the Internet (2019) : 93% (world  average 70%)  
Source:  For the main indicators: ITU, Digital Development Dashboard . The importance of mobile telephony 
for both voice and data increased during the COVID -19 pandemic due the importance of 
teleworking: in spite of the recourse to Wi -Fi for many mobile communications, mobile data traffic 
for Swisscom grew by almost 30% in 12 months and Sunrise is expecting its data traffic to double 
every 16  months.  
 
73 ComCom, Mobile Coverage . Viewed at: 
https://www.comcom.admin.ch/comcom/en/Homepage/documentation/facts -and-figures/mobile -
telephony/mobile -coverage.html . 
74 ComCom (2021), Prices for Telephony Services , 26 May. Viewed at: 
https://www.comcom.admin.ch/comcom/en/Homepage/documentation/facts -and-figures/mobile -
telephony/prices -for-telephony -services.html . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 149 - 
 
 4.137.   Table  4.18 describes the evolution of tariffs for the main types of telecommunications 
services, while Tab le 4.19 describes that of access/interconnection rates during the period under 
review, and Table  4.20 indicates the various retail mobile roaming rates for the 4th quarter of 2020.  
Table 4.18 Telecom tariffs, 2015 -20 
 2015  2016  2017  2018  2019  2020  
Telecommunications services  101.6  100.1  98.3 98.5 99.5 99.8 
Fixed -line communication  101.8  99.8 98.5 98.3 99.1 99.1 
Mobile communication  101.5  99.3 96.4 95.4 95.9 98.5 
Combined offers for fixed -line and mobile 
communication  103.5  101.1  100.6  102.1  103.6  101.8  
Source:  FSO, Swiss Consumer Price Index .  
Table 4.19 Access/interconnection rates, 2015 -20 
 2015  2016  2017  2018  2019  2020  
Access/interconnection ratesa 
(monthly charge per line)  12.2b 12.7b 12.7b 12.7b 12.7b 12.7b 
a Wholesale price of unbundled local loop (copper only).  
b Price as offered by Swisscom (significant market power (SMP) operator). Due to open legal 
procedures, the price might be changed by ComCom in the final decision.  
Source:  Retail data: Federal Office of Communications (OFCOM), Statistical Observatory ; interconnection 
rates: information provided by the Swiss authorities.  
Table 4.20 Retail mobile roaming rates, Q4  2020  
Service (prices in CHF per minute/SMS/MB)  Q4 2020  
Calls made – prepaid & post -paid – EU – based on billed minutes  1.02 
Calls made – prepaid & post -paid – rest of world – based on billed minutes  1.4080  
Calls received – prepaid & post -paid – EU – based on billed minutes  0.37 
Calls received – prepaid & post -paid – rest of world – based on billed minutes  1.3431  
Source:  Retail data: OFCOM,  Statistical Observatory . Viewed at: www.ofcom.admin.ch ; and information 
provided by the Swiss authorities.  
4.138.   Table  4.21 provides the detailed international rankings of Switzerland regarding tariffs as 
established by the annual publication of the ITU, " measuring digital development, ICT prices trends" 
in its 2020 edition.75 Comparisons for the whole period are not technically possible due to the 
evolution of the "baskets". These data show that the inter national ranking of Switzerland in terms 
of affordability of services varies notably, depending on the type of services provided.  
Table 4.21 ICT prices trends by type of basket, 2020  
Type of basket  Rank  As 
percentage 
of GNI per 
capita  USD Purchase 
parity 
(USD)  Speed  
in MB/s  Monthly 
allowance  Tax 
rate 
(%) 
Data-only mobile 
broadband basket 
(1.5 GB)  39 0.65 47.78  34.27  .. 2 GB 7.7 
Fixed broadband 
basket (5 GB)  26 0.94 69.02  49.49  50 Unlimited  7.7 
Mobile -cellular  
low-usage basket 
(70 minutes, 
20 SMS)  29 0.48 35.31  25.3 .. - 7.7 
 
75 ITU (2021), Measuring Digital Development: ICT Price Trends 2020 .  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 150 - 
 
 Type of basket  Rank  As 
percentage 
of GNI per 
capita  USD Purchase 
parity 
(USD)  Speed  
in MB/s  Monthly 
allowance  Tax 
rate 
(%) 
Mobile data and 
voice low -
consumption basket  9 0.36 26.54  19.04  .. SMS unlimited  
Voice unlimited  
Data 500  MB 7.7 
Mobile data and 
voice high -
consumption basket  16 0.65 47.78  34.27  .. SMS unlimited  
Voice unlimited  
Data 2  MB 7.7 
.. Not available.  
Note:  GNI = gross national income.  
Source:  ITU, Measuring Digital Development, ICT Price Trends 2020 . 
4.139.   In terms of market structure, the market is mature, and there has been little change both 
in terms of market shares and of actors, foreign ownership and state ownership, save the take -over 
of Orange by NJJ Capital in 2015 and its renaming as Salt (Box  4.3). The trend towards a switch 
from prepaid offers to contracts also cont inued during the period under review as the proportion of 
users with contracts reached 75% in 2020 from 56% in 2010.  
Box 4.3 Switzerland telecommunications market structure  
Main actors  
Number of telecom services providers hosting SMS/MMS services and premium -rate services  
Three operators (Swisscom, Sunrise, and Salt) have the authorization to allocate and host SMS/MMS short 
numbers. All three are active in hosting SMS/MMS services.  
Premium -rate services ( i.e. numbers with price surcharges for additional services) are hosted by 
35 telecom -service providers.  
 
Names and market shares of the leading companies for fixed telecom services  
Total: 88 companies  
Market leaders (by duration of connections): Swisscom: 66.3%; Sunrise: 9.0%; UPC Cablecom: 8.2%  
Market leaders (by number of subscribers): Swisscom: 48.4%; UPC Cablecom: 15.8%; Sunrise: 16.9%  
 
Name and market shares of the leading companies for mobile telephones services  
Total: 25 companies  
Market leaders (by number of contracts): Swisscom: 56.5%; Sunrise: 21.0%; Salt (ex -Orange): 16.5%.  
 
Three companies (Lycamobile AG), Beone Communications SA, and Vectone Mobile Limited) are mobile virtual 
network operators (MVNOs). There is no legislation forcing the three n etwork operating companies to make 
an offer to MVNOs.  
 
Name and market shares of the broadband Internet services  
Total: 170 companies  
Market leaders (by number of contracts): Swisscom: 50.7%; UPC Cablecom: 16.2%; Sunrise: 12.3%  
 
Foreign ownership participation in telecom companies  
Orange/Salt and Sunrise UPC LLC  are 100% foreign -owned.  
 
State ownership  
51% of the shares of Swisscom  
Establishment of new companies, mergers, or closures during the review period  
On 23  February  2015, Orange Communicati ons SA (Orange Suisse) was sold to NJJ Capital, which is a 
private holding company owned by the French businessman Xavier Niel. On 23  April 2015, the company 
was renamed Salt. Liberty Global, owner of UPC Switzerland LLC, completed the acquisition of Sunri se 
Communications in 2020. From 1  May 2021, Sunrise Communications Ltd and UPC Switzerland LLC are 
being legally merged into Sunrise UPC LLC.  
 
Source:  For the main indicators: ITU, Digital Development Dashboard ; and information provided by the 
authorities for the market structure.  
4.140.   The regulatory framework for telecommunications was modernized  during the period under 
review to adapt itself to an ever -changing digital environment and to alleviate the administrative WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 151 - 
 
 burden on operators, thus loweri ng entry barriers. The main changes concern Internet neutrality, 
roaming, measurement of Internet quality, security, and facility sharing.  
4.141.   The main regulatory changes stem from the revision of the Telecommunications Law that 
was adopted by the Federal Asse mbly on 22  March  2019 and entered into force on 1  January  2021, 
together with its accompanying ordinances .76 The main amendments to the telecom regime brought 
about by this revision are the following:  
• The principle of Internet neutrality is adopted: Internet service providers must transmit data 
without making distinctions from an economic standpoint or from a te chnical one. More 
precisely, Article  12e of the Law stipulates that " [t]he providers of Internet access shall 
transmit information without making any technical or commercial distinction between 
senders, recipients, content, services, service classes, proto cols, applications, programmes 
or terminals…. [that] In addition to internet access, they may offer other services via the 
same connection which must be optimized for specific content, applications or services in 
order to meet the quality requirements of c ustomers, these other services must not be 
usable or offered as a substitute for internet access services, and they must not degrade the 
quality of internet access services  … [and that] If they handle information in a different 
technical or economic manner  during transmission, they must inform their customers and 
the public of this". These provisions are in essence similar to the EU ones on the same 
subject.  
• The general obligation of notification for all telecom providers is abolished. However, the 
pre-existing registration procedure applicable only to providers needing State resources  
(i.e. nationally administered "addressing elements" (e.g. phone numbers, email addresses, 
and Internet domain names) and frequencies subject to licensing) remains in place. Su ch 
registration is automatically granted when the stipulated technical requirements are met.  
• New and strengthened transparency obligations regarding roaming services (including on 
billing modalities and on the obligation for providers to offer bundled offers with included 
roaming services and roaming options) are created. They allow the use of roaming services 
at fixed prices or reduced standard prices.  
• The possibility to regulate roaming retail prices if wholesale roaming prices are regulated b y 
an international agreement is instituted (at the moment, however, there are no agreements 
that would imply the use of such a regulation).  
• To improve traceability in the event of abuses, the provision of value -added services with 
Swiss numbers is now cond itioned by the localization of the headquarters in Switzerland.  
• New duties of information are instituted and "blockage" sets (e.g. for minors) are e xpanded . 
• The sectoral mediator, Ombudscom, will now be able to produce statistics on conciliation 
procedures  it conducts among telecom providers.  
• New obligations are imposed on providers in order to fight spamming and unsolicited 
advertising emails.  
• New methods are established to measure and publicize the quality of fixed and mobile 
Internet access, i.e. the ser vices providers will have to measure and permit their customers 
to measure the quality of Internet access services and will have to publish the result of these 
measurements.  
• Geo-localization data are now included in the  emergency call regulation.  
• A right o f access to the "introduction point" of buildings and co -use of a building's wiring is 
explicitly granted to telecom operators and completed by rules for financial compensation in 
favour of the entity that financed the initial infrastructure.  
 
76 Telecommunications Law of 30  April 1997, as amended (RS  784.10).  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 152 - 
 
 • More public a uthorities (e.g.  military and competent authorities to carry out searches in case 
of emergency or searches for convicted persons)  are now allowed to manage telecom 
facilities aimed at guaranteeing public security (e.g.  to fight against jammers and bugs).  
• To improve the market surveillance on products offered over the Internet (e -commerce), 
two new actors77 are created and their obligations defined, along the lines of the 
corresponding Regulation (EU) 2019/102078 on market surveillance.  
• The amendments introduce a complete change of paradigm for spectrum allocation policy 
as far as radio -communications are concerned: the free use of spectrum frequencies will 
become the rule, and the granting of concessions or the n otification ("light licensing") the 
exception.  
• Clearer provisions on delegations of authority for managing addressing (e.g. administration 
of domain names by a foundation) are added; they specify  the method of designation of a 
delegate (directly, by public  tender procedure, or by a procedure inviting tenders), and the 
fact that the public law on public procurement does not apply.  
• The Internet domain names database is modified in that the Registration Data Directory 
Services (WHOIS), which allows anyone to c onsult public information on allocated domain 
names, no longer contains any personal information. In addition, new provisions on 
cybercrime allow the registry and the competent authorities to suspend the use of domain 
names (deferred delegation).  
• Fees are reduced or abolished.  
4.142.   Another significant development during the period under review was the 5G frequencies 
auction that took place  between 29  January and 7  February  2019.  ComCom successfully awarded 
new mobile radio frequencies (700  MHz, 1,400  MHz, and 3, 500 MHz). All three current  operators, 
Salt, Sunrise, and Swisscom, could acquire a wide range of new frequencies in an auction. Another 
operator was interested, but ultimately did not participate in the auction. These frequencies are 
required for the deve lopment of the high -speed 5G mobile radio technology. The proceeds for the 
Confederation amount to around CHF  380 million.  
4.143.   On 19  May 2017, ComCom awarded the Universal Service licence  for the period from 2018 
to 2022 to Swisscom. The Universal Service lice nce had been awarded previously to Swisscom for a 
period of 10  years, i.e. from 1  January  2008 to 31  December  2017.  
4.144.   To date, the Universal Service licensee has not applied for any financial compensation. Any 
compensation would be provided from a universal service fund (USF). If fees were levied for the 
USF, the decisive factor in calculating a provider's fee is its turnover in the services provided in the 
country minus the costs of the telecommunications services it has purchased wholesale from 
third-party providers or billed for third parties. Providers with a relevant annual turnover of less than 
CHF 5 million are exempted from the fee.  
4.145.   The content of Universal Service, which is examined periodically by the Federal Council, 
consists of public telephone ser vice (national and international calls) and data transmission (Internet 
access) at a fixed location, and specific services for disabled persons. Mobile telephony is not part 
of the Universal Service. However, the Universal Service provider is free to use t he most suitable 
technology. For example, it may provide Universal Service in the form of mobile communications or 
satellite transmission; such cases do effectively occur in mountain areas. Some of these services are 
 
77 The two actors are: (i)  the "fulfilment service provider": any natural or legal person who, in the 
course of a commercial activity, offers at least two of the following services: storage, packaging, labelling, or 
dispatch, without owning the products concerned, excluding postal services within the meaning of Article  2(a) 
of the Postal Act of 17  December  2010 and any other goo ds transport service; and (ii)  the "information society 
service provider": any natural or legal person who offers an information society service, i.e. any service 
normally provided for remuneration, at a distance, by electronic means and at the individual request of a 
recipient of services.  
78 Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20  June 2019 on market 
surveillance and compliance of prod ucts and amending Directive 2004/42/EC and Regulations (EC) 
No. 765/2008 and (EU) No.  305/2011 . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 153 - 
 
 tagged with a ceiling price. The Univer sal Service licensee must measure, and report yearly, on the 
quality of the services. The latest modification, which concerns the broadband data rate (Internet 
connection at a "new" minimum speed of 10  Mbit/s), entered into force on 1  January  2020. There 
are no specific regulations on Universal Service and cross -subsidization. So far Swisscom has not 
requested any contribution from the USF.  
4.146.   Other aspects of the telecom regime remain unchanged. Regarding regulatory supervision, 
ComCom is the independent auth ority regulating the telecommunications  market. The activities and 
main tasks of this extra -parliamentary commission are the following:  
• the attribution of the concessions for the use of radio -communication frequencies for 
the provision of telecommunication s services;  
• the granting of the concession(s) for the Universal Service;  
• the setting of access conditions (e.g.  unbundling interconnection, leased lines) when 
providers cannot reach agreement;  
• decision -making regarding monitoring measures and administrative sanctions 
concerning concessions granted by ComCom (no such administrative sanctions were 
taken);  
• as stipulated by the Telecommunications Law, ComCom calls on the Federal Office of 
Communications (OFCOM) for the preparation of the dispute ca ses and the execution of 
its decisions.  
4.147.   On facility sharing, in addition to the new provisions mentioned above, OFCOM may require, 
for reasons of public interest, providers of telecommunications services to allow joint use of their 
installations for an app ropriate compensation. This is particularly  relevant for mobile operators. 
Mobile concessions include a clause on site sharing, but on a voluntary basis. ComCom published in 
2016 a study about technical elements that can be shared.79 
4.148.   Local loop unbundling on regulated terms and conditions is limited to twisted copper pair 
loops. The unbundling on regulated terms and conditions of fibre local loops is not permitted by law. 
Demand for unbundled local loops reached its maximum in summer 2012. Since then, deman d has 
decreased rapidly. To cope with the demand for higher bandwidths, operators  who unbundled local 
loops are substituting them with other wholesale products available on commercial terms and 
conditions. These commercially offered access products may be unbundled fibre local loops or any 
type of bitstream . Significant Market Providers were required to offer local bitstreams over copper 
local loops on regulated terms and conditions for four years only. Since 2014, there has no longer 
been a reference offer  for local bitstream . 
4.4.1.2   Liechtenstein  
4.149.   Telecommunications is a relatively minor activity in Liechtenstein as, depending of the years 
it represents between 0.4 and 0.6% of GVA and about 0.4% of total employment. Nevertheless, it 
remains a strategic activity as  it enables the rest of the economy, in particular the relevant export 
industry, and in particular IT and financial services and among them the innovative activities of 
e-payments, non -fungible tokens and crypto -assets. This is one of the reasons why 
Liechtensteinische Kraftwerke, the electricity supplier, which owns, operates and maintains a major 
part of the fixed communication network infrastructures (Ducts, Twisted Copper, Hybrid 
Fiber-Coaxial and Fiber Optic Network), remains state -owned and that the m ain actor of the fixed 
market, Liechtenstein Telekom AG returned fully to it after the withdrawal of telecom Austria from 
its minority share.  
4.150.   As evidenced by Box  4.4, Liechtenstein has a fully developed telecom sector  with high 
penetration rates and overal l declining tariffs.  
 
79 For more elements on facility sharing, see ComCom, Network Sharing .  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 154 - 
 
 Box 4.4 Telecom sector  
GVA (% of total economy)  
2015: 0.5%  
2016: 0.4%  
2017: 0.6%  
2018: 0.4%  
2019: 0.4%  
Employment in the sector (% of total)  
2016: 0.4%  
2017: 0.4%  
2018: 0.4%  
2019: 0.4%  
2020: 0.4%  
Penetration rates (2020)  
Population: 39,062  
Households (2015): 17,594  
ISDN subscribers: 1,142  
Main (fixed) telephone lines in operation: 12,607  
Main (fixed) telephone lines/100 inhabitants:32  
Main (fixed) telephone lines/100 households: 72  
Mobile -cellular telephone subscribers (digital): 48,887  
Mobile -cellular telephone subscribers/100 inhabitants: 125  
Internet subscribers (fixed line): 18,050  
Internet subscribers (fixed line)/100 households: 103  
Mobile broadband/100 inhabitan ts: 123 
Tariffs (evolution of tariffs since the last TPR in 2016)  
Bundle and flat rate offers are predominant in both fixed and mobile services.  
For local services: decreasing tariffs  
For international services: decreasing tariffs  
For mobile services: decreasing tariffs (data roaming)  
For interconnection rates: decreasing tariffs  
For Internet services:  stable tariffs, coupled with a significant increase in Mbit/s download and upload 
performance for fixed and increased monthly data volume perfo rmance for mobile Internet service  
Source:  Information provided by the authorities.  
4.151.   In terms of market structure, the leading fixed telecom operator  is Telecom Liechtenstein  AG 
(59% market share in 2020, down from 72% in 2016 for Internet broadband servic e). For mobile 
telephones services, the main providers had in 2019 a respective market share of 45% for Salt 
(Liechtenstein) AG/Salt Mobile SA, 34% for Swisscom ( Schweiz ) AG and 21% for Telecom 
Liechtenstein AG. All mobile providers maintain their own netw ork in Liechtenstein. Swisscom 
(Schweiz) AG and Salt Mobile SA have a significant number of cross -border customers living in 
Liechtenstein, who subscribe to their Swiss mobile networks (with Swiss number and contracts 
subject to Swiss legislation over which the National Regulatory Authority of Liechtenstein has no 
jurisdiction). These foreign subscriptions had a market share of 67% in 2020.  Some two thirds of all 
registered enterprises are fully or partly owned by foreigners. Salt (Liec htenstein) AG and Swisscom 
(Schweiz) AG are 100% foreign -owned.  
4.152.   Since the last Review, 10  enterprises have left the notification register (ceasing telecom 
services in the Liechtenstein market), and 13  enterprises notified entrance  to the telecom market of 
Liechtenstein. A1 Telekom Austria Group withdrew its minority shareholding in Telecom 
Liechtenstein in 2019, with Telecom Liechtenstein AG becoming a 100% state -owned operator in 
July 2020.  
4.153.   The fixed retail market of electronic communications is characteri zed by intense competition, 
driven in particular by the rapid fibre roll -out, which entails the removal of old copper -based 
telephone and coaxial local loops, thereby forcing every household and business  to choose a new 
contract for services via fibre. At the end of 2021, fibre -optic local loops were available for 80% of 
the residential and business units, and fibre -optic Internet connections already accounted for 70% 
(previous year: 48%) of all Internet connections. This has led to a massive increase of In ternet WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 155 - 
 
 speed at stable pricing. Similarly, the market entry of two wholesale VoIP operators in 2019 led to 
increased competition with declining prices for fixed voice service.  
4.154.   The deployment of 5G has been delayed by a number of factors, including a very low limit 
for non -ionizing radiation. Per site, these limits are already exhausted  by 2G, 3G and 4G 
technologies. Under the current conditions, the mobile network operators do n ot see a business case 
for rolling out 5G. As a result, the allocation process for additional spectrum, which started in 2019, 
is still pending and 5G -services have not yet been implemented.  
4.155.   Traditional fixed -network telephone lines ( analogue , ISDN) declin e significantly, only 
partially being replaced by IP -based telephone lines (VoIP), which amounted to 75% of all lines at 
the end of  2020.  
4.156.   The overall attractive market development for end users is very clearly visible in the number 
of providers in the fixe d-network area. While Telecom Liechtenstein AG was still the sole provider of 
triple bundles including Internet, TV and telephone connections at the beginning of 2016, such 
bundles were already available from six further providers in 2020. Furthermore priv ate and business 
users can select from three national and two Swiss providers, which offer mobile services at domestic 
conditions, i.e. without (Swiss) roaming surcharges in Liechtenstein. This number of service 
providers in both fixed and mobile electroni c communications is very high in relation to the small 
national market. In 2020, the trend of increasing mobile subscriptions with Liechtenstein +423 
numbers continued, achieving a share of 33% by the end of 2020.  
4.157.   The main changes in the regulatory framewo rk during the review period resulted from the 
transpositions of most but not all EU regulations and directives on telecommunications. These 
changes included the introduction of the roam -like-at-home regulation as of 15  June 2017, the 
obligation since 2019 for the incumbent Telecom Liechtenstein AG to offer VoIP wholesale services 
on non -discriminatory and transparent terms, changes in price caps for national voice call 
termination( which drastically decreased prices caps), regulation of call termination rat es, regulated 
charges for intra -EEA communications (voice calls, SMS), number portability, universal service, the 
lifting of obligations from the analysis for the market for call origination on the public telephone 
network provided at a fixed location and the future regulatory consequences of the ongoing 
deployment of the Fiber To The Building network (FTTB).  
4.158.   The regulatory framework  for telecommunications has  partially autonomously transposed 
the EU Telecoms Package 2009 (Directives 2009/136/EC and 2009/1 40/EC as well as Regulation 
(EC) 1211/2009) Currently, Liechtenstein is in the process of transposition of the European Electronic 
Communications Code EECC (directive (EU) 2018/1972 of 11  December  2018) and of several 
delegated legal acts linked to the EEC C, such as the Euro -rate delegated regulation (EU) 2021/654 
of 18  December  2020. Furthermore, Liechtenstein is currently preparing the incorporation of the 
new Roaming Regulation into the EEA Agreement.  
4.159.   As a result of the transpositions of amendments to Re gulation (EU) 2015/2120 of 
December  2018 based on Regulation (EU) 1971 of 11  December  2018 (BEREC Regulation), retail 
prices charged to consumers for regulated intra -EEA communications shall not exceed EUR  0.19 per 
minute for calls and EUR  0.06 per SMS. Th is came in effect on 1  July 2020. The Office for 
Communications is responsible for monitoring the market and price developments for regulated 
intra-EEA communications.  
4.160.   The incumbent operator, Telecom Liechtenstein AG, is obliged by a 2008 recommendation 
of the EFTA Surveillance Authority to offer VoIP wholesale service s (including line, trunk , and 
connections) at price -regulated, non -discriminatory , and transparent  terms . After the market entry 
of two VoIP operators in 2019/2020, there is competition in the  wholesale market for VoIP service.  
4.161.   Regarding national voice call termination, the alternative telephone operators are 
interconnected to Telecom Liechtenstein AG, and all operators run further international 
interconnections. While interconnection charges a re agreed between operators, at 
non-discriminatory and transparent terms, the fixed and mobile termination fees are regulated by 
benchmarking with EEA -regulated fees, in accordance with recommendation 2009/396/EG. The 
fixed-network termination fee is regul ated with a maximum amount of CHF  0.09 cents per minute 
as of 1  January  2021. The mobile termination fee has been set at a maximum of CHF  0.77 cents per WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 156 - 
 
 minute as of 1  January 2021. These caps apply to calls originating from the EEA and are in line with 
previous regulations of most EU member States and also with the Euro -rate delegated Regulation 
(EU) 2021/654 of 18  December  2020, which will become effective according to the transposition of 
the delegated act of the European Electronic Communications Code E EC (Directive (EU) 2018/1972 
of 11 December  2018) . 
4.162.   Number portability is a new regulatory feature that was implemented during the period under 
review respectively in 2019 for fixed telephony and in 2020 for mobile numbers, by regulatory 
decision of August 2018 based on the Communications Act after a consultation procedure that had 
shown that reasons justifying exemptions from portability obligations did not exist anymore.  
4.163.   Regarding Universal Service, Telecom Liechtenstein AG has been designated by the 
Liechtenstein Government on the basis of the Communications Act80 as a universal service provider 
for the period from 2019 to 2029.  
4.164.   In 2019, the Office for Communications issued the renewed general planning for market 
analysis.81 Accordingly, the call termination rates were regulated in 2020, followed by a market 
analysis of the fixed origination in 2021. The regulation of the retail fixed telephone market will be 
renewed in 2022. After completion of the national FTTB (Fiber To Th e Building) network the standard 
offer and prices of the network provider Liechtensteinische Kraftwerke will be regulated in 2023.  
4.165.   Indeed, Liechtensteinische Kraftwerke is currently building a national FTTB access network, 
with expected completion by the e nd of 2022. The Office for Communications is following the project 
planning of Liechtensteinische Kraftwerke in order to make sure that the future offer of glass fibre 
local loops as well as the migration phase will be in line with the regulatory obligatio ns 
(non-discrimination, transparency, cost orientation) and will further increase competition in the 
telecom market.  The decommissioning of the copper -based and coaxial networks is expected to be 
completed by the end of 2023.  
4.166.   The Office for Communications remains the competent national regulatory authority.82 
Regarding licensing the 2006 Communication Act eliminated the licensing system. All activities in 
electronic communication are licence -free; however, a notification to the Liechtenstein Office for 
Comm unications, the national regulatory authority, is required.  
4.167.   Liechtenstein telecommunications are still under a vertical separation regime via a 2007  
"consolidation agreement" signed by Liechtensteinische Kraftwerke and Telecom Liechtenstein AG. 
The purpose  of the agreement was to concentrate all retail customer relationships and intelligent 
network components (active network) in Telecom Liechtenstein AG's and the alternative operators' 
hands, and to combine all passive network components, including in parti cular the local loop, 
transmission lines, cable ducts, civil engineering infrastructure, in the hands of Liechtensteinische 
Kraftwerke, the state -owned electricity supplier.  
4.168.   Regarding access to network infrastructure at a fixed location and in the core net work, 
since 2009 Liechtensteinische Kraftwerke is obliged by regulatory measures to grant unhindered, 
non-discriminatory wholesale access to the passive network at a fixed location (local loop 
unbundling) at cost -oriented prices. Similarly by regulatory ob ligations of 2013, the access to 
infrastructure in the core network (e.g. fibres for backhaul, ducts) must be provided at cost -oriented 
prices.  
4.169.   Open Internet and abolition of roaming were instituted in 2015 following EEA transposition 
intervened during  the period covered by the previous TPR report.  With regulation (EU) 2015/2120 
and several successive regulations, which are effective from 1 5 June 2017, roaming services at 
conditions like at home were introduced as from 15  June 2017, and retail charges for t he 
consumption of regulated retail roaming services in excess of any fair use limits were reduced, most 
 
80 Electronic Communication Law of 17 March 2006, as amended (LR 784.10).  
81 Office for Com munications, "Marktanalyse 2029 Plus V2.0". Viewed at: 
https://www.llv.li/inhalt/118935/amtsstellen/marktanalyseplanung -2019. 
82 Office for Communications, English Informa tion. Viewed at: 
https://www.llv.li/inhalt/1833/amtsstellen/english -information . WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 157 - 
 
 relevantly for data roaming from EUR  7.7 per gigabyte of data transmitted in June  2017 to currently 
EUR 2.5 per gigabyte (valid from 1 January  2022 to 3 0 June 2022).  
4.170.   Finally, regarding spectrum management, the Liechtenstein Frequency Allocation Plan (FAP) 
consists of several parts, including the principles of spectrum management. These principles are 
described with a transparent approach on both national and international levels. The integral 
components of FAP are: frequency ranges and radio interface requirements, as well as 
comprehensive lists of specific assignments and harmonized frequency ranges. All the relevant 
European Conference of Postal and Tele communications Administrations or European Commission 
decisions are also listed and referenced in the FAP.  
4.4.2   Financial services  
4.4.2.1   Switzerland  
4.4.2.1.1   Overview of the economic evolution  and of the market structure of the financial 
services sector  
4.171.   Switzerland has a sophisticated and mature financial services sector with a developed and 
somewhat concentrated internal market. The sector serves a population with high savings and that 
is very  well insured , as well as international clients and markets attracted by Switzerland's political 
stability and the vast array of services proposed by this global financial hub. The share of financial 
services in GVA  and employment declined slightly during the review period (Table  4.22), which is 
mainly explained by developments in banking services and securities and stock exchange services. 
More generally, there has been long -term decline in the share of financial services in GDP since the 
2008 financial cr isis. According to the Federal Council, this can be explained "by the changing 
conditions in the international tax framework and the global wealth management business, the 
contraction of big banks' investment banking business and increased pressure on marg ins caused 
by the low interest rate environment".83 
Table 4.22 Contribution of the financial services sector and its subsectors to GVA and 
total employment, 2014 -20 
(% of total)   
2014  2015  2016  2017  2018  2019  2020  
GVA share (% of total GVA)  
Financial and insurance activities  10.1 10.1 10.0 9.7 9.9 9.8 9.7 
of which: insurance  4.5 4.6 4.6 4.5 4.6 4.4 4.2 
% of total employmenta        
Finance and assurance  5.6  5.6  5.4  5.3  5.1  5.1  5.2  
of which:         
Financial service activities  3.1  3.0  2.9  2.7  2.6  2.6  2.6  
Insurance  1.13  1.14  1.10  1.08  1.03  1.03  1.05  
Activities auxiliary to financial services and 
insurance activities  1.4  1.4  1.4  1.5  1.5  1.5  1.5  
a Based on Q4 for each year.  
Source:  FSO, Industries Production Account .  
4.172.   On 4 December  2020, the Federal Council issued a new strategy for the financial services 
sector that is based on three pillars: innovation, interconnection, and sustainability. To achieve these 
three goals, the strategy defines nine specific areas of action: (i) using t he data economy for the 
financial centre; (ii)  integrating new financial market players; (iii)  digitali zing access to financial 
market authorities; (iv)  strengthening the competitiveness of the financial centre; (v)  increasing the 
exportability of Swiss fi nancial services by improving market access abroad; (vi)  assisting to shape 
 
83 Federal Council (2020), Leading Worldwide, Rooted in Switzerland: Policy for a Future -Proof Sw iss 
Financial Centre, pp. 5-6. The emergence of fully digital "neo banks" and fintech services might reinforce the 
existing trend towards downsizing and consolidation. Ibid.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 158 - 
 
 the international financial system; (vii)  ensuring resilience; (viii)  increasing transparency for 
sustainable investment; and (ix)  combating financial crime.84 
4.4.2.1.1.1   Overview of the econ omic evolution  and of the market structure of banking 
services  
4.173.   The number of banks has continued its long -term tendency to decline. With a few exceptions, 
this trend concerns most categories of banks and in particular foreign -controlled banks (Box 4.5). 
The risk of a growing number of defaults on corporate and mortgage loans in the medium term may 
also accelerate this tendency despite the bridging support measures taken by the Government during 
the pandemic. The total balance sheet of the banking se ctor grew notably but with important 
differences in the market shares of the various categories of banks (Box 4.5). 
Box 4.5 Evolution of the market structure and of the main economic indicators of the 
banking sector 
Number of banks and recent consolidation  
 
2015 : 266 banks of which : 
- cantonal banks: 24  
- "big" banks: 3  
- regional and savings banks: 62  
- Raiffeisen – i.e. cooperative banks: 1  
- stock-exchange banks: 44  
- foreign -controlled banks: 85  
- branches of foreign banks: 26  
- private banks: 7  
- other banking institutions: 14  
 
2020 : 251 banks of which : 
- cantonal banks: 24  
- "big" banks: 4  (UBS and Credit Suisse have legally separated their systemically important Swiss Banks 
from their parent bank s as a measure to improve resolvability. In 2015 this step had only been concluded 
by one of the two big banking groups .) 
- regional and savings banks: 59  
- Raiffeisen – i.e. cooperative banks: 1  
- stock-exchange banks: 39  
- foreign -controlled banks: 76  
- branches of foreign banks: 24  
- private banks: 5  
- other banking institutions: 19  
Concentration/share of the various types of banks in the total balance sheet for banks in Switzerland  
2015 : Total balance sheet: CHF 3,026 billion  
of which :  
- cantonal banks: 17.8%  
- "big" banks: 47.1%  
- regional and savings banks: 3.7%  
- Raiffeisen – i.e. cooperative banks: 6.7%  
- stock-exchange banks: 6.9%  
- foreign controlled banks : 8.6%  
- branches of foreign banks : 2.4%  
- private banks: 0.2%  
- other banking institutions: 6.6%  
 
2020 : Total balance sheet: CHF 3,484 billion  
of which :  
- cantonal banks: 20.0%  
- "big" banks: 45.0%  
- regional and savings banks: 3.2%  
- Raiffeisen – i.e. cooperative banks: 7.5%  
- stock-exchange banks: 7.4%  
- foreign controlle d banks : 6.7%  
- branches of foreign banks : 3.3%  
- private banks: 0.2%  
 
84 Federal Council (2020), Leading Worldwide, Rooted in Switzerland: Policy for a Future -Proof Swiss 
Financial Centre.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 159 - 
 
 - other banking institutions: 6.7%  
Lending activities  (Comprehensive year -end statistics (excluding "amounts due from securities financing 
transactions"))  
2015 : CHF 1,537 billion (domestic lending: 70.0%, of which mortgage claims: 82.1%;  
foreign lending: 30.0%)  
 
2019 : CHF 1,926 billion (domestic lending: 67 .7%, of which mortgage claims: 80.0%;  
foreign lending: 32.3%)  
Source:  Information provided by the authorities.  
4.4.2.1.1.2   Overview of the economic evolution and of the market structure of insurance 
services  
4.174.   The number of insurance companies remained overall stable despite some consolidation in 
reinsurance and health insurance and some newcomers in non -life insurance (Box 4.6). The number 
of Swiss branches of foreign insurance companies in life insurance remained stable while that of 
Swiss branches of foreign insuran ce companies in non -life insurance declined slightly. The overall 
balance sheet of the sector grew considerably but with significant differences between the various 
subsectors. According to the authorities, the growth of the industry is in large part due t o 
Switzerland's increasing importance in the global reinsurance business as well as to an increase in 
non-life insurance. Life insurance grew only slightly , owing largely to the low interest rates context. 
Concentration, computed in terms of the cumulative  market share of the top  five companies, grew 
in every subsector.  
Box 4.6 Evolution of the market structure and of the main economic indicators of the 
insurance sector  
Number of insurance companies  
2014 : 224 com panies, of which : 
- life: 21 ( of which 3 Swiss branches of foreign insurance companies ) 
- non-life: (without health insurersa): 104 ( of which 47 Swiss branches of foreign insurance companies )  
- reinsur ers: 29 
- reinsurance captives: 33  
- supplementary health insurers (without health insurers): 26  
- base health insurers with supplementary health insurance products: 14  
 
2019 : 222 companies, of which : 
- life: 21 (of which 3 Swiss branches of foreign insurance companies ) 
- non-life (without health insurers): 114 (of which 44 Swiss branches of foreign insurance companies ) 
- reinsurers: 27  
- reinsurance captives : 27 
- supplementary health insurers : 21 
- base health insurers with supplementary health insurance products: 12  
Total balance sheet of the insurance sector  
2014 : CHF 649.4 billion, of which :  
- life insurance: CHF  337.7  billion (52.0%)  
- non-life (w ithout health insurers): CHF 150.8 billion (23.2%)  
- supplementary health insurers: CHF  16.0 billion (2.5%)  
- reinsur ers: CHF 144.9  billion (22.3%)  
 
2019 : CHF 712.2 billion, of which :  
- life insurance: CHF 328.6 billion (46.1%)  
- non-life (w ithout health insurers): CHF 179.3 billion (25.2%)  
- supplementary health insurer s: CHF 19.0 billion (2.7%)  
- reinsur ers: CHF 204.3  billion (28.7%)  
Concentration : (cumulative market share of the top five companies)  
2014 : life insurance: 83.9%; non -life: 48.5%; health insurance: 64.7%  
 
2019 : life insurers: 84.6%; non -life: 67.1%; health insurance: 67.7%  
 
Source:  Information provided by the authorities.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 160 - 
 
 4.4.2.1.1.3   Overview of the economic evolution and of the market structure  of pension 
fund services and stock exchange and securities services  
4.175.   The pension fund subsector, which is essentially a domestic industry, continued to become 
more concentrated. The number of pe nsion funds, which had fallen from 2,351 in 2009 to 1,866 in 
2014, declined further to 1,438 in 2020. The total amount of assets managed by the pension funds 
increased from CHF  452.6  billion in 2015 to CHF  1,037  billion in 2020.85 
4.176.   The capitalization of the  companies listed on the Swiss performance index grew steadily from 
CHF 1,287  billion in 2015 to CHF  1,886  billion in 2020 and more quickly than Swiss GDP as these 
sums represent the equivalent of 201% and 267% of the Swiss GDP in the same years.86 The 
increase in the gross value of publicly issued bonds in Swiss francs was more limited . The overall 
subdued issuance activity of CHF bonds is due to the foreign segment. In contrast, net emissions in 
the domestic segment show a positive trend and have increase d significantly in recent years. The 
main part of the increase can be attributed to mortgage bonds. The low issuance by the Federal 
Government reflects the low refinancing need of the public sector. Low negative yields may also play 
a role. Net issuance in  the foreign segment has been negative every year since the 2010-euro debt 
crisis. The decline is mainly due to falling demand from European banks.  
4.4.2.1.2   Evolution of the overall regulatory framework  
4.177.   The overall regulatory framework for financial services was am ended through several laws 
and regulations that introduced changes that are mainly of a technical nature and do not affect 
conditions of market access.  
4.178.   First, the Financial Market Infrastructure Law87, which entered into force in 2016, adjusted 
the regulat ion of financial market infrastructures and derivatives trading in line with market 
developments and international requirements. The Financial Market Infrastructure Ordinance88 
contains implementing provisions. In particular, it fleshes out the authorizati on conditions of financial 
market infrastructures and the duties of financial market participants in derivatives trading. It is 
based on existing legislation  and international requirements , and it follows similar concepts as the 
relevant EU legislation.89 
4.179.   Second, the Financial Services Law90 and the Financial Institutions Law91, which entered into 
force in 2020, subject to transition rules, serve primarily to improve client protection. The Financial 
Services Law contains rules on providing financial servic es and offering financial instruments for all 
financial service s providers. Improvement in client protection is achieved mainly through 
comprehensive transparency provisions. The Financial Institutions Law provides for an 
activity -based, differentiated sup ervisory regime for financial institutions requiring authorization. 
The main change consists in the establishment of a regime for the prudential supervision of 
managers of individual client assets, managers of the assets of occupational benefits schemes , and 
trustees.  
4.180.   Third, there were changes to the legal and regulatory framework regarding money 
laundering and financing of terrorism.92 These included a revision of the self -regulatory Code of 
 
85 Information provided by the authorities. The figures for 2020 are provisional.  
86 Information provided by the authorities.  
87 Federal Law of 19  June 2015 on Financial Market Infrastructures and Market Conduct in Secur ities and 
Derivatives Trading (RS  958.1).  
88 Ordinance of 25  November  2015 on Financial Market Infrastructures and Market Conduct in Securities 
and Derivatives Trading (RS 958.11).  
89 As particularly noteworthy features of the amended financial market infr astructure rules, the 
authorities point to the pre - and post -trade transparency requirements for trading venues and organized 
trading facilities, and the clearer definition of rules on combating the negative effects of high -frequency trading 
and of clearin g, notification, and risk mitigation duties in derivatives trading.  
90 Federal Law of 15  June 2018 on Financial Services (RS 950.1).  
91 Federal Law of 15  June 2018 on Financial Institutions (RS 954.1).  
92 In 2016, the Financial Action Task Force identified certain deficiencies in Switzerland's rules on money 
laundering and terrorist financing . In a follow -up report published in 2020, it  recognized the recent 
improvements made by Switzerland in this area. Financial Action Task Force (2020),  Anti-Money Laundering 
and Counterterrorist Financing Measures. Switzerland: 3rd Enhanced Follow -up Report & Technical Compliance 
Re-Rating.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 161 - 
 
 Conduct on Due Diligence for Banks of the Swiss Bankers Associati on, a revision of the anti -money 
Laundering Ordinance93, and the adoption by the Federal Assembly in March  2021 of amendments 
to the Anti -Money Laundering Law of 1997 that imposes special due diligence obligations on financial 
intermediaries. The revision of the Anti -Money Laundering Law includes, inter alia, amendments in 
relation to: (i)  customer due diligence (CDD)  (verification of the identity of the beneficial owner and 
measures to ensure that data collected under CDD process are kept up to date); (ii)  the framework 
to report suspicious transactions to the Financial Intelligence Unit; and (iii)  associations at risk of 
being abused for money laundering or terrorist financing.94 
4.181.   The Agreement between Switzerland and the United  States  for Cooper ation to Facilitate the 
Implementation of the Foreign Account Tax Compliance Act (FATCA), which entered into force on 
2 June 2014, provides for implementation of FATCA in Switzerland based on Model  2. This means 
that Swiss financial institutions disclose a ccount details directly to the US tax authority with the 
consent of the US clients concerned. Where US clients do not give their consent, the United  States  
must request this data through normal administrative assistance channels.95 Negotiations are under 
way to change from Model  2 to Model  1, which provides for the automatic and reciprocal exchange 
of information.  
4.182.   Pursuant to the Joint Statement between Switzerland and the United  States  to end the tax 
dispute between Swiss banks and United  States  signed in August  2013 and the unilateral Swiss Bank 
Program of the US Department of Justice that was announced at the same time, 80  Swiss banks 
have participated in the program me as so -called category  2 banks and have concluded 
Non-Prosecution Agreements.  
4.4.2.1.2.1   Regulatory  framework for banking services  
4.183.   The main developments during the period under review that relate specifically to banking 
services concern prudential measures.  
4.184.   Thus, steps were taken to ensure compliance with international banking standards. In 2015, 
the Fi nancial Market Supervisory Authority (FINMA) introduced reporting requirements on the 
liquidity coverage ratio for testing purposes as a preparatory measure. In 2016, the Capital 
Adequacy Ordinance and the FINMA circular "credit risks – banks" were aligned  with the revised 
Basel  III banking standards, enhancing capital requirements for derivatives, central counterparty 
positions, banks' equity investments in funds, and securitizations. As of 2018 , the leverage ratio 
became a legally binding requirement. As of 2019 , the Basel Committee on Banking on Supervision 
(BCBS) Large Exposure framework ha d been put in place, and so were the new Pillar  2 approach to 
Interest Rate Risk in the Banking Book and the updated BCBS Disclosure Standards. The net stable 
funding ratio requirement entered into force on 1  July 2021.  
4.185.   On 21  October  2015, the Federal Council defined new capital adequacy standards for 
systemically important banks and took measures to reinforce the "too big to fail"  (TBTF) regime. 
Under the curren t regulations, the two global systemically important banks (UBS and Cr edit Suisse) 
are subject to a leverage ratio of 5% ("going concern" capital , i.e. capital to absorb current operating 
losses). The 5% relates to the bank's total leverage ratio exposure as a measure of its on - and 
off-balance sheet positions. At least 3.5% of this must be held in the form of Common Equity Tier  1 
capital (CET1) and the remainder in Additional Tier  1 instruments, which would be converted or 
written down if the risk weighted  assets ( RWA)-based CET1 ratio falls below 7% ("high trigger").  
4.186.   In addition, the two global systematically important banks must hold loss -absorbing debt 
capital, measured in terms of total leverage ratio exposure, of equal size to their going -concern 
capital requirement (subject to a discount, for increased resolvability). This bail -in capital ("gone 
concern" capital , i.e. capital to fund an orderly resolution) is earmarked for use in the event of 
resolution. The result in terms of risk -weighted requirement s is, before discount, a total of up to 
28.6%, consisting of 14.3% for each requirement category (going  concern and gone  concern). Of 
the 14.3% RWA -based going -concern requirement, at least 8.6 %-10% must be held in the form of 
 
93 This revised Ordinance, inter alia , sets out in more detail the requirements f or global monitoring of 
money laundering risks.  
94 The revised Anti -Money Laundering Law and the corresponding amendments to the Anti -Money 
Laundering Ordinance are expected to come into force in the course of 2022.  
95 State Secretariat for International Fin ance, FATCA Agreement.   WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 162 - 
 
 CET1 capital. In addition, th e Federal Council decided that Swiss emergency plans drawn up by the 
global systemically important banks had to be ready for implementation by the end of 2019.  
4.187.   The Swiss TBTF framework, which is reviewed every two years, currently requires the three 
domest ic systematically important banks (Raiffeisen, Zurich Cantonal Bank , and PostFinance) to also 
hold loss -absorbing debt capital to fulfil going -concern requirements, amounting to 40% of their 
going -concern capital requirements (vs. 100% in case of the two g lobal systematically important 
banks). These going -concern requirements can also be met with Tier  1 capital, which in turn may 
then no longer be used to meet going -concern requirements. Using Tier  1 capital has the effect of 
lowering the gone -concern requi rements within a predefined range.  
4.188.   IMF directors recently welcomed the resilience of the Swiss banking sector. They highlighted 
the need to monitor asset quality and risks closely, particularly those related to residential and 
commercial real estate. They recommended that the authorities review and expand the 
macroprudential toolkit to enhance their ability to react swiftly to financial stability risks. They looked 
forward to further progress in implementing the 2019 Financial Sector Assessment Programme 
recommendations.96 
4.189.   In December  2021, the Federal Assembly adopted amendments to the Banking Law97 to 
strengthen provisions on the protection of bank deposits.  
4.190.   Apart from the above -mentioned regulatory developments, the legal regime for banking 
services remai ned largely unchanged during the review period. The State Secretariat for 
International Financ e (SIF) is responsible for the coordination and strategic management of 
international financial, monetary , and tax matters , while FINMA is responsible for the fin ancial 
supervision and issuance of subordinate banking regulations.98 The SNB has the task of contributing 
to the stability of the financial system. The SNB also oversees systemically important payment 
systems, central counterparties , and central securitie s depositories.  
4.191.   Switzerland's  commitments in FTAs are substantially similar to its commitments under the 
GATS. Regarding b ilateral agreements and memoranda of understanding ( MOUs ) on prudential 
regulation and supervision,  FINMA has concluded banking -specific or multi -sectoral MoUs with 
supervisory authorities of 30 jurisdictions. The largest Swiss banks under foreign control (assets of 
more than CHF  10 billion in 2020) are from the United  Kingdom , Brazil, Fr ance, Gree ce, and 
Luxembourg. FINMA has concluded single -institution -specific as well banking -specific agreements 
with all of these countries. These MoUs govern the coordination of supervisory activities, as well as 
the exchange of information relevant for supervision. In  general, FINMA recognizes the consolidated 
supervision of foreign authorities, if the countries adhere to the relevant Basel Core Principles. As 
there is no multilateral framework for the banking sector, such agreements are concluded bilaterally. 
In the a rea of securities and markets supervision (which involves the broker -dealer activities of 
banks), FINMA is signatory to the International Organization of Securities Commissions Enhanced 
Multilateral MoU.  
4.192.   There were no major changes to the licensing regime for banks.99 The requirements that 
must be met to obtain a licence from F INMA to operate a bank involve classical "fit and proper"  
 
96 IMF (2021), Switzerland: Staff Report for the 2021 Article  IV Consultation , IMF Country Report 
No. 21/130.  
97 Banking Law of 8  November  1934 (RS  952.0), as amended.  
98 FINMA regulates through ordinances of its own only where it has  explicit authorization to do so. These 
ordinances serve, for example, to determine technical details, or to provide regulation in areas subject to 
particularly dynamic change. FINMA also publishes circulars explaining how it carries out its supervisory du ties. 
99 As defined by the Banking Law, the Banking Ordinance of 30  April 2014 (RS 952.02), and the Foreign 
Banks Ordinance of 21  October 1996 (RS 952.11). One of the amendments to the Banking Law made during 
the review period introduces specific rules on t he legal form a bank must take to enable effective supervision. 
Banking Law, Article  1(c).  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 163 - 
 
 criteria100, a guarantee by natural persons or legal entities with a qualified participation101 that their 
influence will not impact the bank's prudent and solid business activity negatively, and an obligation 
for the persons entrusted with management to be domiciled in a place where they can physically 
manage the bank in a responsible manner.102 
4.193.   Requirements are the same for Swiss and foreign banks, but access remains subject to 
reciprocity except when covered by international obligations such as the WTO agreements. However, 
for Swiss branches of foreign banks, FINMA will grant a licence only if: (i)  the foreign bank is 
appropriately organized, employs adequately qualified staff , and has financial resources to operate 
a branch in Switzerland; (ii)  the foreign bank and branch are subjected to adequate supervision;  
(iii) the competent foreign supervisor y authorities make no objection to the establishment of a 
branch;  (iv) the competent foreign supervisory authorities state that they will immediately inform 
FINMA if circumstances arise that may seriously jeopardize the interests of the bank's creditors; 
(v) the competent foreign supervisory authorities are able to provide FINMA with official support; 
(vi) the licensing requirements set out in Article  3bis, paragraph  1, of the Banking Law are met 
(reciprocity and adequate company name); (vii)  the branch mee ts the licensing requirements of the 
Banking Law and has a regulation that precisely defines its business activities and provides adequate 
organization; and (viii) the foreign bank provides evidence that the company name of the branch 
qualifies for entry i n the Commercial Register.103 
4.194.   The Banking Law and Banking Ordinance apply to foreign banks in the same way as to Swiss 
banks, subject to special provisions set out in the Foreign Banks Ordinance. These special provisions 
relate capital adequacy and risk dis tribution, the full application of Swiss regulation if foreign 
regulation is not equivalent, the requirement of collateral if necessary for depositor protection, and 
the requirement of adequate consolidated supervision by a foreign supervisor.104 
4.4.2.1.2.2   Regulatory  framework for insurance  services  
4.195.   The main regulatory changes during the period under review concerning insurance relate to 
consumer protection and to supervision as well as to bilateral relations.  
4.196.   Regarding consumer protection, a partial revision of the Insurance Contract Law105 was 
adopted by the Federal Assembly in 2020 and entered into force in January  2022.  The Insurance 
Contract Law governs the contractual relationship between insurance companies and their clients. 
The revision covers issues such as client segmentation (e.g. professional vs. retail clients), written 
form requirements (inclusion of electronic formats), revocation right, provisional cover, assumption 
of approval, limitation periods, termination options, statutory deadlines, pre -contractual duty to 
provide information, pre -contractual duty of disclosure, amendment clauses, continued liability and 
pending insurance claims, right to claim directly/right to information, and compulsory liability.  
4.197.   The Insurance Supervision Law106, which sets  out how Switzerland exercises supervision over 
insurance companies and insurance intermediaries, is undergoing a partial revision in a 
parliamentary debate. The revision is aimed at protecting insured persons from abuse and the 
insolvency risks of insuran ce companies and should provide for rules for recovery and resolution, 
matching the specific requirements of the insurance business. In addition, the following topics are 
on the agenda: a sophisticated customer -protection -based regulatory and supervisory a pproach, 
strengthening of group supervision, and possible inclusion of supervision of branches of foreign 
insurance companies conducting reinsurance business.  
 
100 These criteria include clear scope of business; adequate organization; creation of separate bodies for 
management and on the other hand for direction, supervision , and control for all operators except small private 
bankers and securities firms neither trading for the account of clients nor acting as market makers; disclosure 
of the minimal fully paid -in share capital; and good reputation of the persons in charge of  administration and 
management of the bank.  
101 Qualified participation means that persons or entities directly or indirectly participate in at least 10% 
of the capital or the voting rights of a bank or may otherwise be able to exercise considerable influen ce over 
the bank.  
102 Banking Law, Article  3.  
103 Foreign Banks Ordinance, Article  4.  
104 Foreign Banks Ordinance, Articles 3, 4, and 7.  
105 Insurance Contract Law of 2  April 1908 (RS 221.229.1), as amended.  
106 Insurance Supervision Law of 7  December  2004 (RS 96 1.07), as amended.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 164 - 
 
 4.198.   On 24  January  2019, Switzerland and the United Kingdom concluded an agreement on direct 
insurance  other than life insurance. This agreement replicates the terms and ensures the continuity 
for Swiss and UK insurers of the 1989 agreement between Switzerland and the European  Union . It 
allows non -life insurance companies to branch into one jurisdiction fr om the other with greater ease 
through mutual recognition of solvency requirements.107 
4.199.   Switzerland's commitments on insurance in FTAs are substantially similar to its commitments 
under the GATS. FINMA has concluded MoUs with supervisory authorities of count ries whose insurers 
have significant presence in Switzerland (and vice versa). These MoUs govern the coordination of 
supervisory activities, as well as the exchange of information relevant for supervision. FINMA is also 
a signatory to the International Ass ociation of Insurance Supervisors multilateral MoU.  
4.200.   SIF is the agency responsible for defining insurance sector policy , while the supervision of 
the insurance sector is ensured by FINMA.  
4.201.   Regarding licensing, the criteria for assessing applications for an i nsurance licence are based 
on organizational, legal, capital, and solvency requirements. Direct life insurance companies may 
only operate another class of insurance : accident and health . Regarding additional requirements 
imposed on foreign companies in the  licensing process, without prejudice to international 
agreements, a foreign insurance company that intends to commence an insurance activity in 
Switzerland must, in addition: (i) be authorized to carry out an insurance activity in its home state;  
(ii) establish a permanent establishment (i.e. branch) in Switzerland and appoint as its manager a 
person with a general power of attorney; (iii)  have at its headquarters an amount of capital as set 
out in Article  8 of the Insurance Supervision Law ( CHF 3-CHF 20 m illion depending on the sector) 
and fulfil at its headquarter s the solvability requirements that also encompass the business activity 
in Switzerland; (iv)  be in possession of an organizational fund in Switzerland as in Article  10 of the 
Insurance Supervisi on Law and the corresponding assets; and (v)  deposit a collateral amount in 
Switzerland that corresponds to a defined proportion of the solvability margin attributable to the 
business within Switzerland.108 
4.202.   There is no limitation on the number of providers.  The period of validity of a licence is 
unlimited. Licences are specific to the licensed institution and are therefore not transferrable. FINMA 
is the sole competent authority to evaluate licence applications and to grant licences to private 
insurers. Insu rance regulation and supervision are at the federal level , as there are no licensing 
requirements or regulations at cantonal level for private -sector insurance. In terms of prudential 
regulations , FINMA does not treat state -owned firms differently from other domestically owned firms. 
However, FINMA is not the responsible supervision authority for insurance carriers governed by 
public law (even if public insurers offer private insurance contracts in addition  to their core business) , 
and public insurers  might  also be subject to regulations at the cantonal level. In certain areas, FINMA 
and other Swiss supervisory authorities (e.g. Federal Office of Public Health) have shared 
competences (for example, in relation to accident insurance and pension funds).  
4.203.   FINMA does not treat domestically owned firms and foreign -owned subsidiaries differently, 
but there a few different requirements for branches (see developments on licensing above).  
4.204.   As a rule, FINMA recognizes the consolidated supervision of foreign authori ties. FINMA 
generally cooperates with the home country supervisor , and foreign branches are not required to 
undergo the Swiss Solvency Test. Usually there is no freedom of service (e.g. in general no 
cross-border direct insurance business) and all branches  of foreign insurers must fulfil all the legal 
requirements and be supervised by FINMA (excluding reinsurance branches of foreign insurance 
companies, which are currently not supervised by FINMA). Future legislative amendments are 
expected to subject branc hes of foreign reinsurance companies to the supervision of FINMA.  
4.205.   The minimum capital requirement to obtain a licence is between CHF 3 million and 
CHF 20 million, subject to sector -specific provisions , i.e. depending on the business model, the 
requirement for life insurers is CHF 5 million -CHF 12 million ; for non -life-insurers , CHF 3 million -
CHF 8 million ; and for reinsurers , CHF 3 million -CHF 10 million. In general, there is no requirement 
for premiums and products to be approved, although the latter must comply with the respective 
legal requirements. However, tariffs and general insurance conditions to be used in Switzerland to 
 
107 WTO document S/C/N/1039, 12  January  2021.  
108 Insurance Supervision Law, Article  15.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 165 - 
 
 insure all risks in employee pension plans and in supplementary health insurance must be approved 
by FINMA. In the case of natural  hazard insurance, FINMA also requires its scope of coverage and 
premium rating to be uniform and binding for all insurers.  
4.206.   In its recent strategy for financial services, Leading Worldwide, Rooted in Switzerland : Policy 
for a Future -Proof Swiss Financial C entre , the Federal Council indicates that to reduce the complexity 
of regulation and oversight for small companies it is considering the introduction of an insurance 
company regime similar to that for small banks.  
4.4.2.1.2.3   Regulatory framework for financial market infrastructures  
4.207.   The main regulatory change in this area was the introduction of a complete regulatory 
framework for central counterparties and for trade repositories by the Financial Market Infrastructure 
Law that entered into force in 2016. On the interna tional level, a significant development was the 
non-extension of the EU equivalence for Swiss stock markets and the protective measures taken by 
Switzerland in this regard.  
4.208.   Regarding central counterparties, a central counterparty registered abroad must obtain 
FINMA recognition before it grants supervised Swiss participants direct access to its facilities, 
provides services for a Swiss financial market infrastructure, or enters into an interoperability 
agreement with a Swiss central counterparty. FINMA sh all grant recognition if the foreign central 
counterparty is subject to appropriate regulation and supervision and if the competent foreign 
supervisory authorities do not have any objections to the cross -border activity of the foreign central 
counterparty and guarantee that they will inform FINMA if they detect violations of the law or other 
irregularities on the part of Swiss participants and provide FINMA with administrative assistance. 
FINMA may refuse recognition if the State in which the foreign centra l counterparty has its registered 
office does not grant Swiss central counterparties actual access to its markets or does not offer them 
the same competitive opportunities as those granted to the central counterparties of the State in 
question.109 Very simi lar rules apply to the recognition of foreign trade repositories.110 This possibility 
to refuse recognition on grounds of lack of reciprocity is subject to international obligations (FTAs or 
GATS), and there are no cases where FINMA refused such recognition  on this basis.  
4.209.   In July  2019, Switzerland adopted a protective measure against the backdrop of the 
European  Union 's decision not to extend the recognition of the equivalence of Swiss stock exchange 
regulation. Such withdrawal of stock exchange equivalence would in effect have banned 
EU investment firms from trading certain stocks on Swiss stock exchanges. Under this protective 
measure, FINMA has approved trading venues  in, inter alia, the United  States , Mexico, Singapore, 
and the United  Kingdom for the trad ing of Swiss issuers' shares. The measure was taken on a 
temporary basis and remained in force until 31  December 2021. In November  2021, the Federal 
Council agreed to extend the measure to protect the Swiss stock exchange infrastructure, and to 
initiate the consultation procedure on incorporating it into ordinary law. The Federal Council 
considers that Switzerland meets all the requirements for unrestricted recognition of the equivalence 
of Swiss stock exchange regulation by the European  Union , and unlimited stock market equivalence 
remains its objective.111 
4.210.   Securities dealers must provide information and ensure internal separation of their trading, 
portfolio management , and settlement business and have a minimum fully paid -up capital of 
CHF 1.5 million. Foreign securities dealers may request FINMA authorization to establish a Swiss 
branch. They must provide information and evidence of adequate organization, sufficient financial 
resources, and qualified staff. They must also be subject to appropriat e supervision. In addition, the 
foreign supervisory authorities must not object to cross -border operations and provide 
administrative assistance and information to FINMA.  
 
109 Financial Market Infrastructure Law, Article  60.  
110 Financial Market Infrastructure Law, Article  80.  
111 Federal Council (2021), "Federal Council Extends Duration of Measure to Protect Swiss Stock 
Exchange Infrastructure and Initiates Consultation", 17  November.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 166 - 
 
 4.211.   Foreign participants may request FINMA authorization to participate in Swiss trading 
venues.112 FINMA shall grant such authorization to foreign participants if, among other requirements, 
they are subject to appropriate supervision and regulation and if the competent foreign supervisory 
authority does not object to cross -border operations an d provides administrative assistance to 
FINMA.113 Foreign trading venues can obtain recognition to grant direct access to their facilities to 
Swiss participants supervised by FINMA if they are subject to appropriate supervision and regulation. 
Additionally,  the competent foreign supervisory authorities must consent to cross -border operations 
and provide administrative assistance and information to FINMA.114 FINMA shall grant recognition if 
the foreign trading venue is subject to appropriate regulation and sup ervision , and if the competent 
foreign supervisory authorities do not have any objections to the cross -border activity of the foreign 
trading venue and guarantee that they will inform FINMA if they detect violations of the law or other 
irregularities on th e part of Swiss participants and provide FINMA with administrative assistance. 
FINMA may refuse recognition if the State in which the foreign trading venue has its registered office 
does not grant Swiss trading venues actual access to its markets or does n ot offer them the same 
competitive opportunities as those granted to domestic trading venues. However, this possibility is 
subject to any other international obligations (FTAs or GATS). In practice, there are no cases where 
approval was refused on the grou nds of lacking reciprocity.  
4.212.   All licen ces regarding securities services/stock markets have an unlimited period of validity. 
They are no t transferrable. There is no limitation on the number of providers and no restrictions on 
foreigners buying and selling on  the stock market.  
4.4.2.1.2.4   Regulatory framework for pension fund services  
4.213.   The main change in the regulatory regime of pension fund services during the period under 
review concerns the entity in charge of regulating these services. The new Financial Services Law 
and Financial Institutions Law , which entered into force in 2020 , provide uniform rules regarding 
authorization and supervision of all financial services providers. As a result, asset managers 
operating in the area of occupational pension provision will no l onger be authorized and supervised 
by a sectoral regulator but by FINMA, either directly or indirectly through a monitoring body, 
depending on thresholds defined by the Financial Services Law. The remainder of the regulatory 
framework for pension funds did  not change.115 
4.4.2.1.2.5   Regulatory framework for mutual fund services  
4.214.   The main development regarding the regulatory framework for mutual fund services was the 
adoption on 19  August  2020 by the Federal Council of the dispatch on amending the Collective 
Investment Sc hemes Act.116 The bill exempts certain collective investment schemes from the 
requirement to obtain authorization and approval from the supervisory authority, on condition that 
they are reserved exclusively for qualified investors and are not offered to the  general public. 
Moreover, they must be managed by institutions supervised by FINMA. Collective investment 
schemes of this kind are known as Limited Qualified Investor Funds. The Federal Assembly adopted 
the bill in December  2021. It is not expected to com e into force until the start of 2023 at the earliest.  
4.215.   The regulatory regime for collective investment schemes changed only marginally during the 
period under review. The Financial Services Law replaced the term "distribution of collective 
investments" with  the more general concept of "offering", while maintaining the exceptions. It also 
introduced an obligation for client advisors of Swiss financial services providers not subject to FINMA 
supervision and client advisors of foreign financial services provide rs to register in an advisor 
register. Two other changes are that since the entry into force of the Financial Institutions Law 
in 2020 banks and securities firms are now no longer allowed to carry out fund management 
 
112 The 1995 Stock Exchanges Law was repealed on 1  January 2020. Its provisions on trading venues 
and market conduct were substantially taken over in the Financial Market Infrastructure Law in 2016 and its 
provisions concerning securities dealers were materially transferred into the Financial Institutions Law in 2020.  
113 Financial Market Infrastructure L aw, Article  40(1).  
114 Financial Market Infrastructure Law, Article  41(2).  
115 See WTO document WT/TPR/S/355/Rev.1, 22  September  2017, Section  4.3.1.1.3.  
116 Federal Council (2020), "Federal Council Adopts Dispatch on Amending Collective Investment 
Schemes Ac t", 19  August.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 167 - 
 
 activities and that the obligation to o btain a licen ce for the distribution of collective investment 
schemes has been repealed.  
4.216.   Collective investment schemes or occupational pension schemes must establish appropriate 
corporate management rules and be organi zed in such a way that they can fully fulfil their statutory 
duties. The financial institution as well as the persons responsible for its administration and 
management must provide a guarantee of irreproachable business conduct. Moreover, good 
reputation and professional qualifications of the manager and for the persons responsible for the 
administration, good reputation , and undertaking not to exert their influence to the detriment of 
prudent and sound business practices for the significant equity holders (i.e. owning more than 10% 
of the capi tal or of the voting rights) and sufficient financial guarantees (i.e. meeting the minimum 
capital requirement and having adequate own funds) are required. Swiss collective investment 
schemes also require authorization from FINMA.  
4.217.   Foreign collective scheme s must be approved by FINMA before they can be offered in 
Switzerland to non -qualified investors. They must also appoint a representative and a payment 
service in Switzerland. There are additional licensing conditions for foreign companies in case of 
estab lishment of a branch in Switzerland or in case of the establishment of a representation. The 
possibility of establishing a representative office is a new feature in the asset management sector 
and was introduced in 2020. Foreign fund management companies m ay not establish a branch or 
representative office in Switzerland. In the case of other institutions, FINMA may make the granting 
of authorization to establish a branch in Switzerland conditional on the guarantee of reciprocity by 
the state in which the fo reign financial institution or foreigners holding qualified holdings have their 
domicile or registered office. Subsidiaries of foreign companies are treated like any company 
incorporated in Switzerland, regardless of the nationality of the owners. As part of the licensing and 
supervision process, they must inform FINMA of qualifying holdings and of whether certain 
thresholds have been exceeded or fallen below.  
4.218.   Asset managers of Swiss collective investment schemes based in Switzerland must be 
authorized by F INMA and are subject to its prudential supervision. Asset managers may be legal 
entities in the form of companies limited by shares, partnerships limited by shares or limited liability 
companies, general and limited partnerships , or Swiss branches of a for eign asset manager of 
collective investment schemes.  
4.219.   Foreign asset managers may request FINMA authorization to establish a Swiss branch of a 
foreign asset manager of collective investment schemes. They must provide information and 
evidence that : (i) the as set manager, including the branch, is subject to appropriate supervisory 
control at its registered office ; (ii) the asset manager is adequately organized and has commensurate 
financial resources and qualified personnel to operate a branch in Switzerland; a nd (iii) an 
agreement on cooperation and the exchange of information between FINMA and the relevant foreign 
supervisory authorities is in place. Further, foreign asset managers may be delegated to manage 
Swiss collective investment schemes if they are subj ect to recognized supervision.  
4.220.   The period of validity of a licence is in general unlimited. Licen ces are not transferable , and 
there are no limitations on the number of providers.  
4.4.2.1.2.6    Regulatory framework for fintech  
4.221.   In September  2020, the Federal Assembly adopted the Federal Act on the Adaptation of 
Federal Law to Developments in Distributed Ledger Technology (DLT), which is a blanket law that 
triggered adaptations in 10 different laws. The three main changes brought about by this  law are: 
(i) the Swiss civil law is amended to allow for a new ledger -based security that provides legal 
certainty for issuing and transferring securities on the blockchain ; (ii) the Swiss insolvency law is 
amended to provide for a claim for surrender of crypto -based assets in case of bankruptcy ; and 
(iii) the introduction of the DLT Trading facility as a new authori zation type in Swiss financial markets 
supervisory law.  
4.222.   The so -called fintech -licence (officially named "person according to Article 1b Bankin g Law") 
entered into force on 1  January  2019. It defines the holders of these licen ces, whom it assimilates 
mutatis  mutandis  to banks, as "persons principally active in the financial service sector and who 
(a) accept professionally public deposits up to CHF 100 million or crypto -assets designated by the WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 168 - 
 
 Federal Council and (b)  neither invest nor remunerate these assets".117 The Federal Council has 
designated crypto -assets as part of the larger DLT legislation, more specifically in Article  5(a) of the 
Banking Ordinance. Typically, institutions under the fintech -licence are active as payment service 
providers (including the is suing of debit cards). These payment services can be offered to retail 
customers as well as on a B2B basis (i.e. payment services for SMEs). Institutions under the fintech -
licence are subject to substantially similar requirements as banks regarding anti -money laundering 
and terrorist financing.  
4.223.   During the licensing process , FINMA evaluates requirements such as adequate organization, 
qualification and reputations of management (fit and proper), corporate governance, risk 
management and compliance (including separation of functions), safekeeping of the deposits , and 
fulfilling of capital requirements. A further focus is laid on mitigation of conflicts of interest. Capital 
requirements for institutions under the fintech licen ce are intentionally kept simple. Th e minimum 
capital amounts to 3% of the deposits or at least CHF 300,000. The capital must be fully paid in and 
is to be held continuously. In specific cases , FINMA may require additional capital.  
4.4.2.2   Liechtenstein  
4.4.2.2.1   Overview of economic and regulatory developmen ts in the financial services 
sector  
4.224.   Financial and insurance services represent the largest single commercial services sector of 
Liechtenstein as it accounted for 13.3% of GDP  in 2015, 10.8% in 2016, 10.5% in 2017 , 13.3% 
in 2018, and 11.5% in 2019.118 The share of employment in financial services continued to grow 
steadily over the last years, standing at 10.1% in 2020 (from 9.7% in 2019, 9.5% in 2018, 9.3% 
in 2017, 8.9% in 2016 , and 8.8% in 2015).119 If one adds to these figures th e contribution to GDP 
of the auxiliary services to financial services lato sensu  i.e. legal and tax advice services and 
auditing120, the financial services cluster contributed 20.9% of GDP  and 16.8% of employment 
in 2019.121 
4.225.   Liechtenstein's financial centre has specialized over the years in private banking and wealth 
management, but it has significant banks that are also active in asset management and has 
developed significant fintech, e -payment , and cryptocurrenc y activities. The peculiarity of 
Liechtenstein  compared to some other territories specialized in financial services is that the 
EU financial services regulations apply fully to Liechtenstein. As a member of the European Economic 
Area (EEA), Liechtenstein must incorporate, implement , and apply the EU a cts incorporated into 
Annex  IX (Financial Services) of the EEA Agreement.  
4.226.   A significant regulatory development during the period under review is the reinforcement of 
the anti -money laundering and counter -terrorism financing (AML/CFT) framework. Liechtenste in 
implemented the 4th AML Directive (EU) 2015/849 and the 5th EU AML Directive (EU) 2018/843 into 
national law. Relevant EU AML/CFT Regulations, such as Regulation (EU) 847/2015 on information 
accompanying transfers of funds, have been incorporated into t he EEA Agreement and have direct 
effect.  
4.227.   The Liechtenstein Due Diligence Act122 imposes special due diligence obligations on financial 
institutions ( e.g. banks and investment firms, e -money institutions, payment institutions, insurance 
companies, and asset management companies) as well as designated non -financial business 
professions such as professional trustees, accountants, lawyers, dealers in goods, and real estate 
agents. The scope has been extended in recent years to virtual asset service providers  and safe 
 
117 Banking Law of 8  November  1934 (RS 952.0), as amended, Article  1(b).  
118 Information provided by the authorities.  
119 Information provided by the authorities.  
120 As opposed to auxiliary services to financial services stricto sensu  as defined by the Financial 
Services Annex of the GATS as " Advisory, intermediation and other auxiliary financial services on all the 
activities listed in subparagraphs (v)  through (xv),  including credit reference and analysis, investment and 
portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy".  
121 Information provided by the authorities.  
122 Law of 11  December  2008 on Professional Due Diligence for the Prevention of Money Laundering, 
Organized Crime and Financing of Terrorism (LR 952.1), as amended.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 169 - 
 
 custody service providers as well as art dealers and letting agents conducting transactions above a 
certain threshold.  
4.228.   Based on the 4th and 5th EU AML Directive s, Liechtenstein in 2021 undertook a revision of its 
central register of beneficial owners  of legal persons and arrangements (including foundations, 
Anstalten/establishments, trusts , and similar entities or arrangements) that had been introduced 
in 2019. The Financial Intelligence Unit, the Financial Market Authority, the National Police, the T ax 
Administration, the Office of the Public Prosecutor, the Court of Justice , and the Liechtenstein 
Chamber of Lawyers may access the Register for the purpose of fighting money laundering , predicate 
offenses to money laundering, and terrorist financing. Th e data are also disclosed to banks and 
financial institutions domiciled in any EEA member State or in certain third states for the purpose of 
fulfilling AML/CFT obligations or acts into fighting money laundering, predicate offenses to money 
laundering, and terrorist financing. Other domestic and foreign persons and organi zations may also 
apply to the Office of Justice for disclosure of the data entered in the Register. This application is 
subject to a fee. Based on the 5th EU AML Directive, L iechtenstein introduced a centralized bank 
account register in 2021. The respective legal provisions are set out in the Due Diligence Act and in 
the Ordinance on the Central Register of Accounts.123 
4.229.   The number of banks declined from 16 in 2015 to 13 in 2020 . Of the existing 13  banks 
in 2020 (2021: 12 banks), 8  banks have majority shareholders in Liechtenstein, whereas 5  banks 
have foreign majority shareholders: one with a Luxembourg majority shareholder, one Luxembourg 
amity -owned, two Hong  Kong, China  amity -owned (i.e. 100%  owned) , and one Swiss amity -owned.  
The main indicators of the banking sector appear healthy (Table  4.23).  
Table 4.23 Evolution of main indicators of the banking system, 2015 -20 
(CHF billion)  
 2015  2016  2017  2018  2019  2020  
Total assets under management in the 
banking systema 209 234 294 305 350 365 
Total balance sheet of the banking system  73 74 82 86 93 95 
Net operating income of the banking 
system  1.9 2.0 2.4 2.6 2.8 2.8 
a Assets of investment undertakings and asset management companies may be included in the total of 
assets under management in the banking system only to the extent where they are assets under 
management for the bank and held in a bank in Liechtenstein. However, there is no legal obligation 
for investment undertakings and asset management companies to domiciliate assets in a local bank.  
Source:  Information provided by the authorities.  
4.230.   Regarding the regulatory regime for banking services, the main regulations remain the 
Banking Law of 1992 and the corresponding Banking Ordinance.  The supervisory authority is the 
Financial Market Authority (FMA). A significant development was the vote by Parliament in July  2019 
to cancel the limited guarantee (on savings and medium -term bonds) granted to the 
Liechtensteinische Landesbank by the State. In addition, following its "early adopter" approach for 
the first EU financial package, the Government recently launched the consultation process to amend 
the Banking Law to implement the EU banking package .124 The amendments to Liechtenstein law 
are to enter into force on 1  May 2022, independently of the EEA incorporation procedure.  With the 
new provisions, the Liechtenstein ban king centre will meet the international Basel  III standards with 
regulation on a level playing field with the rest of the European single market.  
4.231.   While Liechtenstein's banking, securities, insurance, and accounting legislation is based on 
EU legislation, the national accounting rules for financial institutions (mainly banks, which are not 
quoted) are also similar to the accounting rules of the Swiss  FINMA. Banks in Liechtenstein and 
 
123 A report issued in 2014 acknowledges that "Liechtenstein has made significant steps and achieved 
considerable progress since the last mutual evalu ation, particularly in bringing its legal framework more closely 
in line with the FATF recommendations, consolidating an overall robust institutional framework for combating 
money laundering (ML) and terrorist financing (TF) and moving towards greater tran sparency". Council of 
Europe -MONEYVAL (2014), Anti-Money Laundering and Combating the Financing of Terrorism: Principality of 
Liechtenstein . The next MONEYVAL report on Liechtenstein's compliance with the Financial Action Task Force 
recommendations is expe cted to be published in June 2022.  
124 This involves Directive (EU) 2019/878, and Regulations (EU) 2019/876 and 2020/873.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 170 - 
 
 Switzerland have very similar principles of accountancy, and the structure of the balance sheet and 
the income statement are practically identical. Both countries apply similar valuation rules.  
4.232.   On licensing, the legal bas is remains Directive 2013/36/EU (Capital Requirements Directive 
for Banks) and Directive 2014/65/EU (Markets in Financial Instruments Directive) for investment 
firms, as transposed in the Banking Law. The law requires a licen ce from the FMA to commence 
operations, which may only take the legal form of limited companies, subject to exceptions that may 
be granted by the FMA. The head offices and the principal management must be domiciled in 
Liechtenstein. The minimum required fully paid -up initial capital is CHF 10 million for banks and 
CHF 730,000 (or the equivalent in euros or US  dollars) for investment firms. After commencing 
business activity, the own funds may never be lower than the amount of the fully paid -up initial 
capital. The members of the board of  directors may have their domicile outside of Liechtenstein if 
they fulfil the obligations of their functions; they must be authorized to fully represent their company. 
Banks are obliged to adopt a dual management structure, with a board of non -executive d irectors 
and a management board; internal auditors, reporting directly to the board of directors, must also 
be appointed.  
4.233.   Banks and investment firms from outside the EEA may in principle offer their services in 
Liechtenstein only through a local subsidiary . The establishment of such a subsidiary requires a 
licence granted by the FMA. Investment firms and banks domiciled in another EEA member State 
may offer their services in Liechtenstein under the freedom to provide services ("cross -border") or 
the right t o establishment (branch) subject to relevant EEA law, provided that the services offered 
are covered by their national authori zation.  
4.234.   Finally, regarding bank deposit insurance scheme s, the Liechtenstein Bankers Association 
established the Liechtenstein Dep osit Guarantee and Investor Protection Foundation of the 
Liechtenstein Bankers Association , an autonomous foundation under Liechtenstein law. The 
Foundation has assumed the obligation, in the event of a bank's insolvency or bankruptcy, to pay 
compensation up to a specified maximum ( CHF 100,000). All banks operating in Liechtenstein 
participate in this scheme.  
4.4.2.2.1.1   Economic and regulatory developments in the asset  management and 
investment undertakings sector  
4.235.   The total number of asset management firms (in the wider sense but excluding banks) grew 
by nearly one tenth, from 993 in 2015 to 1,088 in 2020, but this differed depending on the legal 
forms used. While the number of collective investment schemes grew by nearly one fifth (from 494 
in 2015 to 591 in 2020), the number of authorized trustees grew by nearly one third (from 114 in 
2015 to 147 in 2 020). Assets managed by collective investment schemes increased fr om 
CHF 44.85  billion in 2016 to CHF 59.1 billion i n 2020 , while assets managed by asset management 
companies grew from CHF 33.3 billion in 2015125 to CHF 53.0 billion in 2020.  
4.236.   The structure and the evolution of Liechtenstein's regulatory regime for collective investment 
schemes and of asset management comp anies reflect the relevant EU legislation via either the EEA 
transposition or via an early and autonomous transposition.  
4.237.   For collective investment schemes, the main laws are the 2016 Law on Investment 
Undertakings126, the 2011 Law on Certain Undertakings fo r Collective Investment in Transferable 
Securities127 (UCITSA), and the Law on Alternative Investment Fund Managers128 (AIFMA). UCITSA 
and AIFMA implement relevant EU Directives and their application is subject to directly applicable 
EU Regulations and Guide lines from the European Supervisory Authorities. Since 2  August  2021, 
Directive (EU) 2019/1160 and Regulation (EU) 2019/1156 with regard to cross -border distribution 
 
125 Assets of investment undertakings and asset management companies may be included in the total of 
assets under management in the banki ng system only to the extent where they are assets under management 
for the bank and held in a bank in Liechtenstein. However, there is no legal obligation for investment 
undertakings and asset management companies to domiciliate assets in a local bank.  
126 IUA, Liechtensteinisches Landesgesetzblatt  (LLG) ( 2016), No.  045. 
127 UCITSA, LLG (2011), No.  295. 
128 AIFMA, LLG (2013), No.  49. WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 171 - 
 
 of collective investment undertakings were implemented autonomously into the national UCITSA 
and AIFMA, as the funds market in Liechtenstein is very export oriented .129 
4.238.   The EU Regulation on Money Market Funds130 entered into force on 2  August  2021 by way 
of autonomous integration in UCITSA and AIFMA. The European Venture Capital Funds Regulation131, 
the European Social Entrepreneurship  Regulation132, and the European Long -Term Investment Funds  
Regulation133 will be implemented the same way . Furthermore, preparat ory work is being conducted 
to prepare to implement the EU rules on sustainable finance. Indeed the adoption of sustainable 
finance legal acts is a priority of Liechtenstein and the autonomous transposition of the sustainable 
finance legal act is foreseen for May  2022.  
4.239.   In terms of licensing, any collective investment scheme requires a licen ce from the FMA. 
Collective investment schemes are divided into investment funds on a contractual basis (common 
contractual fund trusteeships and investment companies with variable capital ). Furthermore, 
investment funds (without UCITS) may be constituted under a partnership (investment limited 
partnership or investment partnership of limited partners). The minimum required fully paid -up 
capital is CHF 1 million for management companies under the IUA and EUR  125,000 or the 
equivalent amount in Swiss francs  for UCITS management companies and AIFMs (internally 
managed investment companies or alternative investment funds EUR  300,000 or the equivalent 
amount in Swiss francs ). Investment companies must be incorporated as public limited companies. 
Regardless of form, all investment funds must have a custodian bank, registered in Liechtenstein. 
For the most part , the management company of collective investment schemes in Liechtenstein is 
domiciled in Liechtenstein. According to notification procedures, the management companies can be 
domiciled in another EEA country and manage Liechtenstein collective investment schemes from 
there.  
4.240.   The regulatory regime for asset manage ment companies is the 2005 -2006 Law on Asset 
Management (AMA134) and the Banking Law. The AMA and the Banking Law were significantly 
modified to implement the second EU Directive on markets in financial instruments135, which entered 
into force on 1  January  2018. AMA is applied in conjunction with the EU Regulation on European  
Markets in Financial Instruments  Regulation136, EU Commission Delegated Regulations, and 
Guidelines from the European  Supervisory Authorities, which enable asset management companies 
to have direct market access to the EEA.137 The new EU prudential framework for investment firms 
(Directive (EU) 2019/2034 and Regulation (EU) 2019/2033) is expected to result in significant 
amendments of the AMA and the Banking Law , and it is possible that a d edicated Law on Investment 
Firms will be adopted.  
4.241.   The licensing conditions for asset management companies are a minimum fully  paid-up 
capital requirement of CHF 100,000, the fulfilment of organizational requirements, and a local 
presence in Liechtenstein . 
4.4.2.2.1.2   Economic and regulatory developments in the insurance  sector  
4.242.   The number of insurance companies declined slightly (from 41 in 2015 to 36 in 2020, 
minus  3 for non -life, minus  2 for life,  no change for reinsurance) , but the number of employees 
 
129 Cross -sectoral EU legislation, such as the European Market Infrastructure Regulation , the Securities 
Financing Transactions Regulation , the Short Selling Regulation, the Central Depository Regulation, the Market 
Abuse Regulation, and the Benchmarks Regulation may also be applicable to Collective Investment Scheme 
and their management companies.  
130 Regulation (EU) 2 017/1131 of the European Parliament and of the Council of 14  June 2017 on money 
market funds.  
131 Regulation (EU) No.  345/2013 of the European Parliament and of the Council of 17  April 2013 on 
European venture capital funds.  
132 Regulation (EU) No.  346/2013 o f the European Parliament and of the Council of 17  April 2013 on 
European social entrepreneurship funds.  
133 Regulation (EU) 2015/760 of the European Parliament and of the Council of 29  April 2015 on 
European long -term investment funds.  
134 LLG (2005), No.  278. 
135 Directive 2014/65/EU of the European Parliament and of the Council of 15  May 2014 on markets in 
financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast).  
136 Regulation (EU) No.  600/2014 of the European Parliament and of the  Council of 15  May 2014 on 
markets in financial instruments and amending Regulation (EU) No.  648/2012.  
137 Asset management companies may also be subject to relevant EU cross -sectoral legislation.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 172 - 
 
 nearly doubled (from 596 to 1,001) , an evolution that can be explained by the implementation of 
the new supervisory "Solvency II" regime, which triggers a need for additional staffing in governance 
and reporting areas.138 Gross premiums grew by 66% during the same period, which is essentially 
due to the development of the non -life insurance business. However, they stabilized in 2019 -20. The 
proportion of captives remains high by international standards, as Liechtenstein is a valu able market 
for larger entities, especially those headquartered in Switzerland, to serve both the EEA and Swiss 
markets . The capital investment of the insurance sector slightly diminished from CHF 29.1 billion 
in 2014 to CHF 27.7 billion in 2020.139 
4.243.   The num ber of foreign branches grew from 14 to 19. Cross -border activities grew too , as 
the number of EEA undertakings having registered their potential intention to provide cross -border 
insurance services grew from 355 to 438.140 
4.244.   The supervisory regime for insura nce services was completely revamped with the entry into 
force on 1  January 2016 of the revised Insurance Supervision Law and its associated ordinance.141 
This act transposed the EU Solvency II Directive142 into national law. Solvency II is a risk -based 
system that defines new requirements regarding governance, risk management, and reporting. It 
provides qualitative and quantitative tools available to supervisory authorities, allowing them to 
assess the total solvency of an insurance undertaking.  
4.245.   In terms of licensing conditions, the main administration of the company (including 
accounting) must be situated in Liechtenstein. Undertakings domiciled and licensed in an EEA 
country may conduct direct insurance business in Liechtenstein without a Liechtenstein lice nse. 
Insurance companies are prohibited from undertaking non -insurance activities. Cross -border 
provision of insurance services by EEA companies is possible, provided the insurance undertakings 
have the necessary solvency margin.  
4.246.   Among non -EEA countries, S witzerland benefits from a preferential status. Based on a 
bilateral agreement in force since 1998, insurance undertakings domiciled in Switzerland or 
Liechtenstein enjoy freedom of establishment and operation in the other country. This agreement 
was exten ded in 2007 to allow insurance intermediaries to engage in cross -border activities. Other 
non-EEA-country insurance undertakings require authorization to operate in Liechtenstein and must 
establish a subsidiary or a branch office.  
4.4.2.2.1.3   Economic and regulatory developments  in the fintech e -payments and 
cryptocurrencies sector  
4.247.   The provision of e -money  services (issuing of electronic money and provision of payment 
services by issuers of electronic money) is governed by the Electronic Money Law of 2011143 and its 
corresponding Electronic Money Ordinance144, as well as by new legislation adopted during the period 
under review, the Payment Services Law of 2019145 and its corresponding Payment Services 
Regulation.146 All of these legal instruments are based on EU Directives 2009/110/EG 
(E-Money -Directive)147 and (EU) 2015/2366 (Payment Services Directive II).148 
4.248.   The Electronic Money Law lays down the prudential requirements for taking up the business 
of e-money institutions. Issuing electronic money requires a licenc e granted by the FMA. The 
 
138 Information provided by the authorities.  
139 Information pr ovided by the authorities.  
140 Information provided by the authorities.  
141 Respectively, LLG (2015), No.  231 and LLG (2015), No.  239. 
142 Directive 2009/138/EC of the European Parliament and of the Council of 25  November  2009 on the 
taking -up and pursuit of th e business of Insurance and Reinsurance (Solvency II) (recast).  
143 LLG (2011), No.  151, as amended . 
144 LLG (2011), No.  158, as amended.  
145 LLG (2019), No.  213. 
146 LLG (2019), No.  233. 
147 Directive 2009/110/EC of the European Parliament and of the Council of 16  September  2009 on the 
taking up, pursuit and prudential supervision of the business of e -money institutions amending Directives 
2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC.  
148 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25  November  2015 on 
payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC, and 2013/36/EU and 
Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 173 - 
 
 Payment Services Law governs the provision of payment services and the operation of payment 
systems. To obtain a licence, e-money institutions must fulfil various conditions, inter alia, being a 
legal person and having their regis tered office and head office in Liechtenstein. The members of the 
board of directors may have their domicile outside of Liechtenstein, if they fulfil the obligations of 
their functions; they must be authorized to fully represent their company. The minimum required 
fully paid -up initial capital is CHF 350,000.  
4.249.   Depending on the licensed activity in question, there are different capital requirements. 
Under the Electronic Money Law, e-money institutions are required to hold the minimum required 
fully paid -up initial capital of CHF 350,000. Under the Payment Services Law, the minimum capital 
requirements for payment institutions differ depending on the type of payment services provided 
and authori zed. 
4.250.   As of 31 December  2020, four e -money institutions were license d in Liechtenstein with a 
total of CHF 27.7 million in assets and CHF 7 million in e -money issued.  
4.251.   Subject to relevant EEA law, e-money institutions from Liechtenstein , as well as from any 
other EEA member State , may offer their services across the EEA under the freedom to provide 
services ("cross -border") or the right to establishment (branch). E -money institutions from outside 
the EEA may in principle offer their services in Liechtenstein only through a local su bsidiary. The 
establishment of such a subsidiary requires a licence granted by the FMA.  
4.252.   Like the Payment Services Law and the Banking Law, the Electronic Money law contains 
provisions on qualifying holdings in an e-money institution, own funds requirements , requirements 
for safeguarding funds received from their customers, outsourcing of functions, the use of third 
parties or agents, external auditing, information exchange, cooperation between competent 
authorities , and FMA administrative and criminal sanct ioning powers.  
4.253.   In 2019, Liechtenstein became the first country in the world to adopt comprehensive 
legislation on an emerging type of financial services providers, trustworthy technology ("TT") service 
providers. The Token and TT Service Provider Law149 entered into force on 1  January 2020 together 
with the Ordinance on Tokens and TT Service Providers.  This is autonomous legislation that does 
not derive from an EEA transposition of the EU acquis as the EU regulation in that respect is still 
under discussion.  
4.254.   The new law divides TT service providers into 10 categories: (i)  Token  Issuers:  persons  
professionally offering tokens to the public in the name of third  parties; (ii)  Token  Generators : 
persons who create original tokens on behalf of third parties; (iii)  TT Key Depositaries  and TT Token  
Depositaries:  persons  who safeguard tokens or private keys for third parties, e.g. in a safe or a 
collective wallet; (iv)  TT Protectors : persons who hold tokens on TT systems in their own name on 
account of third parties; (v)  Physical  Validators : persons who ensure the enforcement of rights in 
accordance with the agreement, in terms of property law, to goods represented in tokens on 
TT systems; (vi)  TT Exchange  Service  Providers:  persons who exchange legal tender f or tokens and 
vice versa as well as tokens for tokens; (vii)  TT Verifying  Authorities:  persons who verify the legal 
capacity and the requirements for the disposal over a token; (viii)  TT Price Service  
Providers:  persons who provide TT system users with agg regated price information on the basis of 
purchase and sale offers or completed transactions; (ix)  TT Identity  Service  Providers:  persons who 
identify the person in possession of the right of disposal related to a token and who record it in a 
directory; an d (x) TT Agent: a person who professionally distributes or provides TT services on behalf 
of and for the account of a foreign TT service provider.  
4.255.   TT Service Providers must hold a registration by the FMA prior to taking up business 
activities. An exception exists for persons who publicly offer tokens in their own name (own issuance) 
if the value of the tokens issued during 12  months does not exceed CHF 5 million. The registration 
obligation exists regardless of whether another licen ce has already b een granted by the FMA. A bank 
licensed in Liechtenstein that safeguards tokens for clients must therefore additionally register as a 
TT Token Depositary. By the end of 2021, 18 TT providers had registered with the FMA, applying for 
39 different TT service s. 
 
149 Token and TT Service Provider Law (LR 950.6) of 3 October  2019.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 174 - 
 
 4.256.   TT service providers are not subject to ongoing prudential supervision in the same way as 
licensed financial intermediaries (e.g. transparency obligations, comprehensive reporting 
obligations, or periodic external audits), but rather to event -driven sup ervision.  
4.4.3   Transport services  
4.4.3.1   Switzerland  
4.257.   Transport services account for nearly 4% of GVA  and slightly more than 5% of 
employment.150 Because of its location at the centre of Europe, its role as transit country, and its 
mountainous geography, Switzerland is faced with a large influx of international transit traffic and 
potential infrastructural bottlenecks. To address this challenge, it  has developed over the last 
30 years a voluntarist policy of transferring road traffic to rail traffic, through incentives and 
infrastructural rail spending as well as through regulations and taxation.  
4.4.3.1.1   Surface transport services  
4.258.   The volume of surface frei ght transport remained stable between 2015 and 2019: railroad 
transport : 10,741  million net tonne -km in 2015 and 10,070  million net tonne -km in 2019; road 
transport: 17,171  million tonne -km in 2015 and 17,148 million tonne -km in 2019; oil pipelines : 
113 million tonne -km in 2015 and 105  million tonne -km in 2019.151 In 2019, road transport 
accounted for 63% of inland freight transportation while railways represented 37%. There was a 
slight increase in the volume of surface transport of persons. Transport of pe rsons by rail increased 
from 194  million of trains -km in 2015 to 201  million of trains -km in 2019, and transport of persons 
by road increased from 333  million of journeys -km in 2015 to 362  million of journeys -km in 2019.152 
4.4.3.1.1.1   Road transport services  
4.259.   Switzerla nd continued to develop its road transport infrastructure. Road infrastructure 
projects take the form of a strategic development masterplan for national roads submitted every 
four years by the Federal Council to the Federal Assembly. Presently 11  projects of a value of 
CHF 5.8 billion have been approved , while 48 additional projects of a value of CHF  10.2 billion have 
been programmed until 2040. Important recent projects, on the North -South axis, include the 
renovation of the rehabilitation tunnel of Belche n and the second tube of the Gotthard  tunnel.  
4.260.   While the objective was to reduce the number of cross -alpine heavy vehicles (over 
3.5 tonnes) road trips to 650,000 by 2018, the number of cross -alpine trips reached 898,000 in 
2019 before declining to 863,000 in 2020. Thanks to the lowering of train path prices, the costs for 
rail freight transport decreased. In addition, since 1  July 2021, the performance -related heavy 
vehicle charge for older freight vehicles on the road has been raised. Previous measures , such as 
the construction of the New Rail Link through the Alps at the Gotthard tunnel  and the 4 -metre 
corridor for high -profile consignments , were completed in December 2020 and are now beginning to 
take full effect.  
4.261.   The legal regime for the provision of roa d transport services remained largely unchanged 
during the review period. The domestic conditions of establishment and operation are liberal. 
Established operators need to obtain a licen ce (other than a driving licen ce) to create a national road 
freight business (other than for transporting dangerous goods or goods for which sanitary assurances 
are required). These licen ces are granted based on technical, professional , and financial fitness and 
compliance with public safety requirements. The main regulatory change was the entry into force in 
January  2016 of new provisions of the Federal Law on Road Transport Undertakings.153 The key 
changes made by these provisions are the extension of the licensing requirement to vehicles of more 
than 3.5  tonnes (p reviously 6  tonnes) and the introduction of the term "transport manager". The 
authorities indicate that these new rules on the "transport manager" are equivalent to EU rules.154 
 
150 FSO, Industries Production Account .  
151 Information provided by the authorities.  
152 Information provided by the authorities.  
153 Federal Law of 20  March  2009 on Road Transport Undertakings (SR 744.10), as amended.  
154 Regulation (EC) No 1071 /2009 of the European Parliament and of the Council of 21  October  2009 
establishing common rules concerning the conditions to be complied with to pursue the occupation of road 
transport operator and repealing Council Directive 96/26/EC.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 175 - 
 
 In addition, the amendments created the legal basis for entering specific data in an electronic 
register to verify the reliability of a transport manager.  
4.262.   The Swiss regulator does not have any power to limit industry capacity through licen ces or 
otherwise. Professional bodies or representatives of trade and commercial interests are n ot involved 
in specifying or enforcing pricing guidelines or regulations. The Government does not regulate retail 
prices of road freight services, nor does it provide pricing guidelines to road freight companies.  
4.263.   Switzerland's relationship with the Europea n Union  in road transport continues to be 
governed by the bilateral agreement concluded in 1999. This agreement liberalizes road transport 
traffic, except for cabotage in the strict sense (i.e. transport within Switzerland or within a given EU 
member State ), and provides for the mutual recognition of road transport licen ces, harmonization 
of technical standards, and coordination of transport policies, where combined rail -road transport is 
concerned. Cross -border bus transport between Switzerland and the Eur opean  Union  is regulated by 
the Overland Transport Agreement concluded in 1999, the provisions of which are equivalent to the 
internal EU rules.155 
4.264.   Data on the Swiss ECMT156 multilateral quota show that Switzerland's international fleet of 
trucks is essentia lly composed of environmentally efficient vehicles.157 
4.265.   The more than 50 bilateral road transport agreements concluded by Switzerland with 
countries in Europe, Asia , and Africa are liberal compared to European bilateral agreements that 
follow the ECMT model agreement. New agreements were concluded during the review period with 
the Islamic Republic of Iran and the United  Kingdom and entered into force in 2021. Bilateral and 
transit operations were liberalized with the Russian  Federation  in 2021. Bilateral, tra nsit, and 
triangular operations were liberalized with the Republic of Moldova in 2016 and Ukraine in 2017. 
International passenger traffic between Switzerland and a third country (non -EU member S tate) is 
carried out on the basis of the bilateral agreement.  The procedure differs from EU traffic in that 
cooperation between a Swiss transport company and a company from the third country in question 
is mandatory. Furthermore, a permit is not issued for the entire distance, but each state issues a 
permit that is valid only for its own territory.  
4.266.   Switzerland undertook no GATS commitments regarding road freight transport and only 
limited commitments for road passenger transport. However, in its subsequent FTAs, it has bound 
its liberal conditions of establishment, Mode 1 remaining unbound due to the existence of bilateral 
agreements.  
4.4.3.1.1.2   Railway transport  services  
4.267.   Switzerland has a very developed railways network, internationally connected, including to 
high-speed lines. In addition to passenger traffic, there is a significant international transit goods 
traffic through the Alps , notably between Germany and Italy. Railway transport is especially 
important in the context of Switzerland's policy of transferring a large part of cross -alpine transport 
of goods from road to rail.158 The total length of the interurban railway network is 5,491  km, of 
which 5,467  km are electrified and 2,136  km are double -tracked. The number of passenger -km was 
21,737  million in 2019, and the volume of freight in 2019 was 11.67 million tonne -km.159 
4.268.   Unlike many European countries, Switzerland has never had a regime of public monopoly  in 
rail services . Instead, a large public company (SBB -CFF-FFS) coexists with several private 
companies, the number of which has diminished over  time through mergers. This explains in part 
that Switzerland has developed mutual access to network legislation comparable , mutatis mutandis , 
to that of Japan and the United  States . In addition to the three major Swi ss network -owning 
 
155 Regulation (EC) No 1073/2009 of the European Parliament and of the Council of 21  October  2009 on 
common rules for access to the international market for coach and bus services, and amending Regulation 
(EC) No 561/2006 (Recast).  
156 Under the aegis of OECD, the European Conf erence of Ministers of Transport (ECMT) administers a 
system of road transport quotas. See WTO document S/C/W/324, 29  October  2010.  
157 International Transport Forum, Distribution of ECMT Multilateral Quota . 
158 Federal Law of 19  December  2008 on the Transfer from Road to Rail of Heavy Freight Transport 
through the Alps (RS 740.1).  
159 Information provided by the authorities.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 176 - 
 
 companies, several foreign railways freight companies, most of them of German nationality, have 
created subsidiaries in Switzerland, and obtained an authorization of access to the Swiss network 
and the correlative safety certificate.  
4.269.   The legal regime governing railway transport results from three series of reforms that 
entered into force in 1999, 2005 , and 2012 -2013 and which aimed to align the Swiss regime with 
the first and second EU railway packages.160 In 2020 and 2021, important elemen ts of the third EU 
railway package and the so -called "Recast", a European Directive establishing a single European 
railway area, entered into force for Switzerland.161 This package includes: (i)  the institution of a 
body independent from the infrastructure manager to allocate train paths162; (ii) the adoption of 
equivalent legislation as in the European  Union  regarding passenger rights in the case of delays, 
cancellations, liabilities , and transport of bicycles ; and (iii)  a requirement that railway companies 
offering services on a railway network belonging to another infrastructure manager receive 
information and participation rights with regard to short - and medium -term investment planning. 
Switzerland has not transposed the provisions from the EU third railw ay package that concern the 
opening of the market in international rail passenger services . 
4.4.3.1.1.3   Pipeline transport services  
4.270.   There are only two oil pipelines in Switzerland: one crude pipeline, which enters Switzerland 
from France and runs 32  km to VARO's Cress ier refinery with a flow of 68,000 barrels/day; and one 
product pipeline, which runs for 12  km across Geneva canton to supply oil products to the region, 
including aviation fuels to Geneva airport with a flow rate of 330  m3/hour.  
4.271.   The Swiss gas network has 13 international connections, of which 3 to the Transitgas system, 
the country's major gas transport backbone. Transitgas was built to transport gas from Germany 
and France to Italy; about five  sixths of its transported volume is for transit an d one  sixth for the 
domestic market. In 2018, Transitgas was retrofitted for reverse flow (from Italy to 
Germany/France). The total gas network is almost 20,000 km, of which 292 km for Transitgas . There 
are no nationality requirements to own or manage pipe lines.  
4.272.   According to the authorities, the Swiss gas market is only rudimentarily regulated. In 2012, 
industry associations and the gas industry established network access for large consumers under 
private law with the so -called "Associations' Agreement". Le gal regulation of network access is 
planned with a new Gas Supply Law, which was in public consultation in 2019 -20 In 2020, the 
Competition Commission decided in an individual case that network access should be open to all end 
consumers. Until now, however , there are few third -party suppliers, and the local utilities remain 
the largest suppliers.  
4.4.3.1.1.4   Inland waterways  transport services  
4.273.   There are two kinds of inland waterways transport, on the Rhine and on the lakes . 
4.274.   Water  transport  plays an important role in to urism and excursion traffic. The approximately 
150 ships of the federally licensed shipping companies carry around 13  million passengers per year 
on Swiss lakes, rivers , and border waterways. Shipping also plays an important role in freight 
transport:  around 120 freight ships from various shipping companies – mainly from the construction 
sector – transport around 2.5  million tonnes of material on Swiss waters every year. Vessels 
operating on domestic lakes must be registered in Switzerland at the cantonal l evel and in the case 
of border lakes registered in a Swiss register or in the register of the border State(s). While traffic 
 
160 The reforms transformed SBB/CFF into a limited company with private -sector employees, formalized 
the right of access for any r ailways company by instituting an arbitration commission, and separated the 
transport activities of railways companies from their infrastructure activities, from an accounting and an 
operational point of view. They then modernized the regime of interoperab ility and safety, reinforced the role 
of the arbitration commission, and defined the financing of protection services and the tendering procedures for 
the concessioning of regional passenger traffic.  
161 Railway Law of 20  December  1957 (RS  742.101), as amen ded; Law of 20  March  2010 on Passenger 
Transportation (RS  745.1), as amended (RS  742.101), Ordinance of 4  November  2009 on Passenger 
Transportation (RS 745.1), as amended, Ordinance of 31  August  2011 on Access to the Railway Network 
(RS 742.122), and Ordin ance of 13  May 2020 on the Train Path Allocation Body (RS  742.123).  
162 The new body, the TVS capacity allocation body, is a federal not -for-profit entity under public law 
with a separate legal personality and became operational on 1  January  2021.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 177 - 
 
 on the lakes is largely linked to tourism activities, Rhine navigation is essentially devoted to freight 
and is of key importance f or Switzerland since it is the only direct link with the high seas. The main 
product categories imported via Basel are crude oil and petroleum products; stones, soils and 
building materials; and food and feed. The main product categories exported via Basel are crude oil 
and petroleum products; stones, soils and building materials ; and chemical products. The volume of 
freight handled in Basel on the import side increased from 3,768,445 tonnes in 2018 to 
5,054,059  tonnes in 2019 and declined to 4,280,200  tonnes in 2020. On the export side, the volume 
of freight increased from 929,536 tonnes in 2018 to 1,011,175 tonnes in 2019 and declined to 
846,580 tonnes in 2020.163 
4.275.   In addition to the Law on the Registry of Ships164 and the corresponding implementing 
regulations, domestic shipping is subject to the Law on Domestic Navigation165, the Law on 
Passenger Transportation166, and several related Ordinances.  
4.276.   Together with Belgium, Germany, France , and the Netherlands, Switzerland is a member of 
the Central Commission  for Navigation on the Rhine ( CCNR) , which has ensured freedom of 
navigation for all flags on the Rhine since 1815. Switzerland thus has unrestricted access to the sea 
for its national supply and export and can actively participate in legislation for navig ation on the 
Rhine. The regulations of the CCNR are regularly transposed into national law.  
4.277.   Two hundred sixty -six Swiss -registered vessels operate on the Rhine. There is no preferential 
treatment or regime for preferential treatment in relation to any vess els calling to the Ports of 
Switzerland in Basel , irrespective of their registration or other criteria. However , as passage through 
Basel requires special knowledge and skills due to very narrow bridges, depending on the water 
level, pilotage services or p roof of route knowledge are mandatory depending on the size of the 
vessel.  
4.278.   Relevant requirements on technical standards and registration differ between international 
navigation on the Rhine, which is governed by the Mannheim Convention under the auspices o f the 
CCNR, various bilateral and multilateral agreements between Switzerland and its neighbouring 
countries for cross -boundaries lakes and river navigation, and a purely domestic regime applicable 
exclusively to national waters only.  
4.279.   There are no EU and I MO provisions directly applicable to Swiss inland waterways including 
the Rhine , as these waters are either exclusively governed by Swiss national law or by corresponding 
bilateral or multilateral treaties such as the Mannheim Convention for the internatio nally navigable 
Rhine River. The registration regime for Swiss -flagged vessels on the Rhine is the same as that for 
Swiss -flagged maritime vessels (see below) . The registration of vessel s navigating on internal lakes 
obeys rules defined at the cantonal level and that may be more lax than national ones, and they 
take, for instance , domicile rather than nationality as a criteri on. Registration of vessels navigating 
on borders ( Lake Geneva with France, Lakes Lugano and Maggiore with Italy , and Lake Constance 
with Germany and Austria) obeys navigation conventions signed by Switzerland with those co untries. 
Those conventions in turn refer in all instances to the respective immatriculation rules of the 
bordering countries.  
4.280.   Regarding border waters such as Lake Geneva, Lake Constance, Lake Maggiore , and Lake 
Lugano , there a re bilateral or multilateral agreements with neighbouring countries  (France , 
Germany, Austria , and Italy ) that relate to professional tourist shipping. For commercial shipping, 
navigation on th ese waters is restricted to vessels registered in Switzerland and the relevant 
neighbouring countries.  
4.4.3.1.1.5   Maritime transport  services  
4.281.   Although Switzerland is a landlocked country, it has a significant maritime sector that ranks 
11th worldwide and 5th in Europe in terms of operated fleet. The Swiss maritime sector directly 
employs 2,000 persons in Switzerland and contributed CHF  2.4 billion to Swiss GDP  in 2017 i.e. 
 
163 Ports of Switzerland/Basel.  
164 Federal Law of 28  September  1923 on the Registration of Ships (RS  747.11), as amended.  
165 Federal Law of 3  October  1975 on Domestic Navigation (RS 747.201), as amended.  
166 Federal Law of 20  March  2009 on Passenger Transportation (RS  745.1), as amended.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 178 - 
 
 0.4% of GDP.167 Furthermore, it is closely intertwined with trading ac tivities of agricultural, energy , 
and minerals products to the point of forming a single cluster/hub and is represented by a common 
business association, the Swiss Trading and Shipping Association. Trading activities in turn directly 
employ 10,000  persons,  contribute to 4.8% of Swiss GDP168, and represent 20% of the tax revenues 
of Geneva and Ticino cantons and 17% of those of Zug canton.  
4.282.   Switzerland has a commercially operating sea -going fleet mainly registered in foreign 
shipping registries. There are 65 shipping and shipping services companies (e.g. charterers and 
marine fuel traders), located in more than 12 cantons, most of them based in Geneva, Zurich, Basel, 
Vaud, Ticino , and Zug. All of these companies and their vessels are privately owned. Switzerlan d is 
the host  state of the world's second -largest container shipping company (Mediterranean Shipping 
Company ) but also of companies such as Suisse -Atlantique, Reederei Zurich, ABC Maritime All Seas, 
or Swiss Maritime Services.  
4.283.   The nationally flagged, commercially operating seagoing Swiss fleet was composed in 2021 
of 18 vessels representing 929,000 deadweight tonnage (DWT) , i.e. 0.043% of the world total (down 
from 47 ships accounting 1,401,000 DWT in 2015 – a decrease that mainly can be attributed to the 
effects of the global ship -owning sector economic crisis lasting more than a decade until 2019 due 
to unprecede nted low freight rates) while the controlled  fleet under foreign flags was composed of 
396 vessels representing a total tonnage of 25,794,797 DWT , i.e. 1.21% of the total world tonnage 
(up from  344 vessels of a total tonnage of 18,324,000 DWT representing 1.056% of the wor ld fleet 
in 2015). According to a 2017 study by Oxford Economics169, another 400 to 600 vessels are 
operated from Switzerland by Swiss companies controlled by non -Swiss interests . 
4.284.   If necessary, the Swiss Government has the authority to requisition Swiss -flagged seagoing 
vessels on its behalf whose construction has been financed with federal mortgage guarantees. At 
the end of 2021, 17 out of 18 of all Swiss -flagged seagoing merchant vessels were financed wholly 
or partially with such a guaran tee. The federal guarantees were discontinued in 2017.170 
4.285.   Switzerland has a closed registry for seagoing commercial vessels as registration of vessels 
is subject to strict conditions regarding nationality and residence requirements for owners of 
individual companies, partners , or shareholders of general or limited partnerships or of limited 
companies, and members of the governing bodies of public limited companies, general partnerships, 
limited companies , or cooperative companies.171 However, there is no requirement regarding th e 
nationality of any seafarers serving aboard Swiss -registered vessels. In 2021, of 358 seafarers 
serving aboard Swiss seagoing merchant vessels , only two held Swiss citizenship, with the vast 
majority being from the Philippines (ratings) and Ukraine (offi cers).  
4.286.   There has not been a specific support regime for maritime transport during the pandemic , 
and there are no maritime -specific incentives in place to encourage gender balance in ships ' crews.  
4.287.   A recent study of the Swiss maritime sector prepared by the Institute of Shipping Economics 
and Logistics is currently the subject of consultations among relevant federal services and 
stakeholders as part of a reflection on a possible overarching Swiss maritime strategy.172 
4.4.3.1.1.6   Freight forwarding and logistics services  
4.288.   The industry of specialized intermediation services for transport was invented in Switzerland 
during the Napoleonic Wars173, and nowadays Switzerland remains a major hub for logistics services 
being the host state of several major actors of the sector as we ll as of the main international 
professional association of the logistic sector, the International Federation of Freight Forwarders. 
 
167 Information provided by the authorities.  
168 Information provided by the authorities.  
169 As quoted in Swiss Trading & Shipping Association, Switzerland, A Maritime Nation . Viewed at: 
https://www.stsa.swiss/know/switzerland -a-maritime -nation . 
170 A report to the Federal Council found that the existence of a high -seas Swiss -flagged fleet did not 
have any impact on supply chain problems. Federal Council (2016), "Le Conseil fédéral ne renouvellera pas le 
crédit cadre pour la promotion de la flotte suisse de haute mer".  
171 Ordinance of 20  November  1956 on Maritime Navigation (RS 747.301), as amended, Article  5. 
172 Federal Department of Foreig n Affairs (2021), Future Prospects for the Swiss Flag and Fleet at Sea .  
173 WTO document S/C/W/317, 14  June 2010, para.  4. WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 179 - 
 
 Logistics services are not identified as such in the Swiss national accounts. The closest category is 
"warehousing and supp ort activities for transportation" , which corresponds more or less to the GATS 
document MTN/GNS/W120 category 11.E "services auxiliary to all modes of transport".174 In 2020, 
the warehousing and activities for transportation accounted for 0.65% of GVA  and 1 .31% of total 
employment, compared to, respectively, 0.65% and 1.30% in 2015.175 Switzerland has bound its 
liberal regime for this subsector both under the GATS and its FTAs.  
4.4.3.1.1.7   Air transport services  
4.289.   The Swiss air transport sector was severely hit by the COVI D-19 pandemic crisis (Chart  4.9 
and Table  4.24). 
4.290.   Table  4.24 details further the passenger and freight traffic handled by each of Switzerland's 
international airports in 2016 and 2020.  
Table 4.24 Passenger and freight traffic handled at Swiss international airports, 2015 
and 2020  
Airports  Passengers handled  Freight handled (tonnes)  
2015  2020  2015  2020  
Zurich  26,294,317  8,316,844  291,082  170,280  
Geneva  15,694,603  5,558,432  32,806  27,246  
Basel  7,052,113  2,587,994  48,977  63,576  
Bern 175,121  5,629  - - 
Lugano  156,437  275 57 - 
Sion 6,660  1,673  - - 
Altenrhein  91,976  22,414  - - 
Total international 
airports  49,441,227  
(of which 655,303 
domestic 
passengers)  16,493,261  372,865  261,102  
- Nil. 
Source:  Information provided by the authorities.  
4.291.   The general aid measures adopted by the Federal Council to cushion the economic impact 
of the COVID -19 pandemic (Section  3.3.1) are also available to companies in the aviation industry. 
In addition, the Fede ral Assembly decided in May  2020 to support Swiss International Air Lines and 
Edelweiss Air with a government -backed loan and to provide CHF 600 million for possible support to 
ground handlers and aircraft maintenance companies to bridge liquidity shortfal ls and to ensure the 
uninterrupted operation of the national airports and Switzerland's aviation connectivity.  
 
174 Item 11.E contains the following subsectors: 11.E.a Cargo -handling services, 11.E.b Storage and 
warehouse services, 11.E.c Freight t ransport agency services, and 11.E.d Other.  
175 Information provided by the authorities and the FSO.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 180 - 
 
 Chart 4.9 Domestic and international passenger flights, January to December 2019 and 
2020  
 
Source : ICAO, Operational Impact on Air Transport . Viewed at: https://data.icao.int/coVID -
19/operational.htm . 
4.292.   As of August  2020, Swiss and Edelweiss ha d been granted state aid of CHF 1.275  billion in 
the form of a bank loan totalling CHF 1.5 billion  secured by the Swiss Government with a guarantee 
(85%). Furthermore, state aid of CHF 79.2 million was granted to SR Technics, an aircraft 
maintenance and rep air company, out of the CHF 600 million framework credit. Independently from 
the CHF 600 million credit, the Government also increased the equity of Skyguide (Air Navigation 
Service Provider, a company owned and controlled by the Swiss Government) by a CHF 150 million 
cash injection in 2020. Additionally, it supported Skyguide with a loan of CHF 250 million in 2021 
and will provide further financial funding (financing instrument yet to be determined) in 2022 in an 
amount of CHF 100 million if needed. In 202 0, Swissport communicated the establishment of a 
market -based solution. None of the three national airports (Basel, Geneva, Zurich) has asked for 
federal government state aid so far. Geneva airport has asked the Canton of Geneva for support, 
but the state aid scheme has not yet been approved by the Parliament of the Canton of Geneva.  
4.293.   The regulatory regime for air transport remained largely unchanged during the review 
period. As far as services explicitly covered by the GATS air transport annex (computer res ervation 
services, selling and marketing of air transport services , and maintenance and repair of aircraft), 
there is no regulation granting a monopoly or prescribing the compulsory use of a computer 
reservation system  (CRS) supplier. All CRS providers may  operate if they comply with EC Regulation 
80/2009.176 This does not imply that they must have a local branch established. Similarly, for selling 
and marketing of air transport services, there are no specific regulations (including foreign exchange 
controls ) preventing or limiting the sale by foreign airlines of their own tickets through whatever 
channel (online, airports counters, city offices). This legal situation is not affected by individual 
 
176 Regulation (EC) No 80/2009 of 14  January  2009 of the European Parliament and of the Council on a 
Code of Conduct for computerized reservation systems.  
WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 181 - 
 
 provisions of bilateral agreements. Regarding aircraft repair and maintenance services, there are no 
specific limitations on the establishment of foreign providers.177 
4.294.   For ground handling , Switzerland applies Council  Directive 9 6/67/EC178, which beyond 
certain thresholds of traffic reached by Zurich and Geneva airports liberalizes self -handling, mutual 
handling , and third -party handling. For the Basel airport, France also applies EC Regulation 97/67.  
Regarding airport management services, airports  that are objects of a concession are managed by 
public or private entities. Even for private entities, most of the capital may be in public hands.179 
4.295.   Regarding commercial aviation, the national establishment rules are in line with 
EC Regulation 1008 /2008180, which establishes a requirement of more than 50% of EU interests 
(and in this case EU + Swiss interests) so as to accommodate the ownership of Swiss by the 
Lufthansa group. There is no specific regulation or policy for all -cargo flights. Regarding  charter 
flights,  Switzerland also applies EC Regulation 1008/2008, thus charter traffic is not discriminated 
and is based on the principle of reciprocity. Low -cost carriers do operate from Switzerland. Domestic 
traffic is limited in principle to Swiss ope rators unless it has been agreed otherwise in the bilateral 
air services agreement. Such an opening has been negotiated but not finalized between Switzerland 
and the European  Union . Finally, Swiss slot allocation rules are in line with Council Regulation ( EEC) 
No. 95/93, as amended, which transposes , mutatis mutandis , the IATA rules. In Switzerland, slot 
trading among airlines is not allowed. The Swiss airports of Geneva and Zurich are deemed to be 
congested and hence coordinated.  
4.296.   The bilateral relationship  with the European  Union  remains governed by a 1999 bilateral 
agreement that mutually grants third to seventh freedom s and includes a community of ownership 
clause.  
4.297.   Table  4.25 describes the main features of recent air transport agreements coded according 
to the Quasar WTO methodology.  
Table 4.25 Main features of recent air transport agreements  
Partner  Date  Entry into 
force  
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 
Angola  27/11/2018   N N N Y M PPoB DD PD No 22 
Bahamas  13/12/2018   Y N N Y M PPoB DD FD No 36 
Cabo Verde  07/12/2021   Y N N Y M PPoB DD FD No 36 
Canada (Protocol)  29/01/2019  22/06/2021  Y N N Y M SOEC  DD FD No 26 
Côte d'Ivoire  24/02/ 2017 08/10/2018  N N N Y M PPoB DD FD No 30 
Gambia  12/01/2021   Y N N Y M PPoB DD FD No 36 
India (Protocol)  11/03/2020  01/07/21  .. .. .. Y .. COI .. .. .. - 
Israel  21/08/ 2018 24/03/21   N N Y M PPoB DD FD  - 
Moldova, Republic of  04/04/ 2019 09/09/21  Y N N Y M PPoB DD FD No 36 
 
177 Switzerland has 71 repair stations certified by the European Aviation Safety Agency, 16 of which are 
also certified by the Federal Aviation Administration, 13 by TCCA Canada, 3 by ANAC Brazil, and 2 by CAAS 
Singapore.  
178 Council Directive 96/67/EC of 15  October 1996 on access to the ground -handling market at 
community airports.  
179 The detailed regimes are the following for Geneva: public ownership, concession by DETEC; Zurich: 
public ownership, concession by DETEC, Basel: public ownership, status legally ba sed on bilateral agreement 
with France, Bern; private ownership, concession by DETEC, Sion: public ownership, concession by DETEC; 
Lugano: public ownership, concession by DETEC; and Altenrhein: private ownership, not concessioned, legal 
status as airfield.  
180 Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24  September  2008 
on common rules for the operation of air services in the community (recast).  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 182 - 
 
 Partner  Date  Entry into 
force  
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 
Philippines  20/11/ 2018 15/06/21  Y N N Y M PPoB DD O No 34 
Senegal  11/02/ 2021  N N N Y M COI DD PD No 18 
Seychelles  13/12/ 2018  Y N N Y M PPoB DD FD No 36 
United Arab 
Emirates  07/12/ 2017  Y N N Y M PPoB DD FD No 36 
United Kingdom  17/12/ 2018 01/01/21  Y Y N Y M COI FD FD No 38 
Viet Nam 03/04/ 2018  Y N N Y M PPoB DD FD No 36 
.. Not available.  
a Fifth freedom: "Y" granted, "N" not granted.  
b Seventh freedom: "Y" granted, "N" not granted.  
c Cabotage: "Y" granted, "N" not granted.  
d Cooperation clause (e.g. allowance of code share): "Y" present, "N" absent.  
e Designation: "S" single, "M" multiple.  
f Withholding: "PPOB" principal place of business, "SOEC" substantial ownership and effective control , 
"COI" co mmunity of interest.  
g Pricing: "DD" dual disapproval, "FD" free determination, "DA" double approval, "COO" country of 
origin, "ZP" zone pricing.  
h Capacity clause: "PD" Pre -Determination , "B1" Bermuda I, "FD" Free determination, "O" other, "n/a" 
not avail able. 
i A "no" indicates that an exchange of statistics is not foreseen by the agreement.  
Source:  Information provided by the authorities.  
4.4.3.2   Liechtenstein  
4.298.   The Office of Economic  Affairs is responsible for regulating the transport subsector and 
applies the relevant EEA Law.181 
4.4.3.2.1    Road freight and passenger transport services  
4.299.   Liechtenstein does not have any highways but has 108 km of main roads and 253 km of side 
roads. International road transport services for goods and passengers are supplied by private 
companies.  
4.300.   Liechtenstein applies the Swiss Heavy Vehicle Fee. Road freight and passenger transport 
carriers require a permit issued by the Office of Economic Affairs. Specific criteri a must be met on, 
inter alia, reliability, financial standing, qualification, and business establishment. In addition, 
carriers need a special licence issued by the Office of Economic Affairs for international transport in 
the EEA. Liechtenstein is included in most bilateral transport agreements concluded by Switzerland. 
The agreements normally contain a "Liechtenstein clause" extending the provisions to Liechtenstein.  
4.301.   Public transport throughout the country is offered by the government -owned 
Liechtensteinmobil, which receives subsidies for its services. Besides the planning, organization, and 
marketing of public transport by bus, the mandate of Liechtensteinmobil includes resp onsibilities for 
local cross -border passenger transport by train. Liechtensteinmobil has the competence to conclude 
contracts with service providers in these  different fields and to enter into cooperation agreements 
with transport networks from neighbourin g regions.  
4.4.3.2.2   Rail transport services  
4.302.   Liechtenstein has a network of 9 km of railways. It has no rail company; the railway track is 
owned and operated by Austrian Federal  Railways.  
 
181 See Annex XIII to the EEA Agreement.  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 183 - 
 
 4.4.3.2.3   Air transport services  
4.303.   Liechtenstein does not have an airport, but has a priva tely owned heliport. It applies the 
EEA rules on civil aviation, which entered into force in 2003. Under an agreement concluded in 1950, 
the Swiss regulations on civil aviation also apply to Liechtenstein; this agreement was amended in 
2003 to avoid confli ct with EEA rules. Liechtenstein became a member of the European Aviation 
Safety Agency in June  2006.  
 WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 184 - 
 
  5  APPENDIX TABLES  
Table A1. 1 Merchandise imports by product groupa for Switzerland,  2016 -20 
  2016  2017  2018  2019  2020  
Total imports (CHF billion)  173.5  185.8  201.8  205.2  182.3  
  (% of total)  
Forestry and agricultural products, fisheries  7.9 7.7 7.3 7.1 8.2 
Food, beverages and tobacco  5.8 5.7 5.4 5.3 6.1 
Forestry products (not firewood)  1.0 1.0 0.9 0.9 1.0 
Energy source  3.9 4.4 4.7 4.5 3.1 
Solid combustibles  0.0 0.0 0.0 0.0 0.0 
Petroleum and distillates  2.5 2.9 3.2 3.2 2 
Gas 0.5 0.5 0.6 0.6 0.4 
Electrical energy  0.9 0.9 0.9 0.7 0.7 
Textiles, clothing, shoes  5.5 5.7 5.8 5.8 6.8 
Textiles  1.1 1.1 1 1 1.5 
Articles of apparel and clothing  3.4 3.6 3.7 3.8 4.2 
Shoes, parts and accessories  1.0 1.1 1.1 1.1 1.1 
Paper, articles of paper and products of the printing 
industry  2.2 2.0 1.9 1.9 1.9 
Leather, rubber, plastics  3.6 3.6 3.6 3.4 3.6 
Leather  0.6 0.6 0.7 0.6 0.6 
Rubber  0.7 0.6 0.6 0.6 0.7 
Plastics  2.3 2.3 2.3 2.2 2.3 
Products of the chemical and pharmaceutical industry  25.1 25.2 24.8 25.7 28.1 
Chemical raw materials, basic materials and unformed 
plastics  3.7 3.6 4.1 4.8 3.6 
Chemical end products, vitamins, diagnostic products, 
including active substances  21.4 21.6 20.7 20.9 24.5 
Pharmaceuticals, vitamins, diagnostics (incl. active 
substances)  18.7 19 18.2 18.4 21.6 
Stones and earth  1.6 1.5 1.5 1.4 1.5 
Metals  7.5 7.8 7.9 7.3 7.1 
Iron and steel  1.2 1.3 1.4 1.2 1.1 
Non-ferrous metals  1.5 1.6 1.7 1.5 1.4 
Metal goods  4.8 4.8 4.8 4.6 4.6 
Machines, appliances, electronics  16.5 16.4 15.9 15.6 16.4 
Industrial machinery  6.4 6.5 6.3 6.1 6.2 
Household appliances  1.5 1.4 1.3 1.3 1.5 
Office machines  2.2 2.1 2.1 2.0 2.2 
Electrical and electronic industry appliances and devices  6.0 6.0 5.9 5.7 6.1 
Vehicles  11.0 10.2 9.6 9.5 9.5 
Road vehicles  8.2 7.9 7.4 7.7 7.7 
Railed vehicles  0.4 0.5 0.4 0.3 0.4 
Air- and spacecraft  2.2 1.6 1.6 1.3 1.1 
Watercraft  0.2 0.2 0.1 0.2 0.3 
Precision instruments, clocks and watches and 
jewellery  12.1 12.5 14.1 14.8 10.6 
Precision instruments and equipment  4.3 4.1 4.1 4.1 4.3 
Watches  2.2 1.9 2 1.8 1.4 
Jewellery and household goods made from precious metals  5.6 6.5 8 8.8 4.8 
Various goods such as music instruments, home 
furnishings, toys, sports equipment, etc.  3.2 3 2.9 2.8 3.1 
Home furnishings  2.2 2.1 2.1 2.0 2.2 
a Based on Swiss national nomenclature, "nature of goods", created by the Federal Customs 
Administration (FCA). Viewed at: https://www.ezv.admin.ch/ezv/en/home/topics/swiss -foreign -
trade -statistics/methoden -metadaten/metadaten/waren.html . 
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS. Viewed at: 
https://www.swiss -impex.admin.ch/index.xhtml . 
  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 185 - 
 
  Table A1. 2 Merchandise exports by product groupa for Switzerland,  2016 -20 
 
2016  2017  2018  2019  2020  
Total exports (CHF billion)  210.5  220.6  233.2  242.3  225.3  
  (% of total)  
Forestry and agricultural products, fisheries  4.4 4.4 4.3 4.2 4.3 
Food, beverages and tobacco  4.0 3.9 3.9 3.7 3.9 
Energy source  0.9 0.9 1.2 1.0 0.8 
Textiles, clothing, shoes  1.6 1.9 2.1 2.1 2.1 
Paper, articles of paper and products of the printing 
industry  0.8 0.8 0.7 0.8 0.6 
Leather, rubber, plastics  2.0 1.9 2.0 1.9 1.8 
Products of the chemical and pharmaceutical industry  44.8 44.7 44.8 47.3 51.7 
Chemical raw materials, basic materials and unformed 
plastics  2.7 2.8 3.0 3.2 3.8 
Chemical end products, vitamins, diagnostic products, 
including active substances  42.1 41.9 41.7 44.0 47.9 
Pharmaceuticals, vitamins, diagnostics (incl. active 
substances)  38.2 38.0 37.9 40.3 44.0 
Stones and earth  0.4 0.4 0.4 0.4 0.3 
Metals  5.8 6.2 6.2 5.6 5.4 
Iron and steel  0.5 0.6 0.6 0.5 0.4 
Non-ferrous metals  1.0 1.1 1.1 1.0 0.9 
Metal goods  4.3 4.5 4.5 4.2 4.1 
Machines, appliances, electronics  14.8 14.5 14.4 13.2 12.6 
Industrial machinery  8.8 8.7 8.5 7.6 7.0 
Household appliances  0.5 0.4 0.3 0.3 0.4 
Office machines  0.4 0.4 0.4 0.4 0.4 
Electrical and electronic industry appliances and devices  4.9 4.9 4.9 4.6 4.5 
Vehicles  2.4 2.5 2.2 2.3 2.0 
Precision instruments, clocks and watches and 
jewellery  21.5 21.2 21.3 20.8 17.9 
Precision instruments and equipment  7.1 7.1 7.2 7.0 6.9 
Watches  9.2 9.0 9.1 9.0 7.5 
Jewellery and household goods made from precious metals  5.2 5.1 5.0 4.9 3.4 
Various goods such as music instruments, home 
furnishings, toys, sports equipment, etc.  0.6 0.6 0.6 0.5 0.5 
a Based on Swiss national nomenclature, "nature of goods", created by the Federal Customs 
Administration (FCA). Viewed at: https://www.ezv.admin.ch/ezv/en/home/topics/swiss -foreign -
trade -statistics/methoden -metadaten/metadaten/waren.html . 
Note:  Calculations based on total "business cycle" (total 1)  without gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS. Viewed at: 
https://www.swiss -impex.admin.ch/index.xhtml . 
  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 186 - 
 
  Table A1. 3 Merchandise imports by origin  for Switzerland , 2016 -20 
  2016  2017  2018  2019  2020  
Total imports (CHF billion)  173.5  185.8  201.8  205.2  182.3   
(% of total)  
Americas  9.9 8.9 8.1 8.0 7.8 
 United  States  8.2 6.8 6.2 6.7 6.3 
 Other America  1.7 2.0 1.9 1.3 1.5 
Europe  73.0 72.6 71.4 70.5 70.5 
 EU-27 68.1 68.1 66.4 64.7 66.3 
   Germany  28.0 28.2 27.1 26.2 27.1 
   Italy 9.7 9.7 9.3 9.1 9.2 
   France  7.7 7.9 8.0 7.4 7.0 
   Austria  4.4 4.2 4.1 4.0 4.6 
   Spain  2.8 2.7 2.6 3.0 3.7 
   Netherlands  2.8 2.7 2.7 2.7 2.7 
   Ireland  4.4 4.2 4.3 3.7 2.5 
   Belgium  1.7 1.8 1.6 1.7 1.7 
   Czech  Republic  1.3 1.3 1.3 1.3 1.4 
   Poland  1.1 1.1 1.2 1.2 1.3 
 EFTA 0.2 0.2 0.2 0.2 0.2 
 Other Europe  4.7 4.3 4.8 5.6 4.0 
   United Kingdom  3.7 3.3 3.8 4.6 2.8 
CISa 0.4 0.4 0.5 0.4 0.2 
Africa  0.8 1.0 1.1 1.0 0.9 
Middle East  1.0 2.1 3.8 4.4 1.6 
   United Arab Emirates  0.5 1.6 3.2 3.8 1.0 
Asia 15.0 15.0 15.1 15.8 19.0 
 China  7.1 7.0 7.1 7.3 8.8 
 Japan  1.8 1.9 1.7 1.6 2.0 
 Other Asia  6.1 6.1 6.3 6.9 8.2 
   Singapore  1.0 1.0 1.3 1.1 1.9 
   Viet Nam 0.8 0.8 0.7 1.4 1.4 
   India 0.7 0.8 0.8 1.0 0.9 
Memorandum:       
EU-28 71.8 71.4 70.3 69.3 69.1 
a Commonwealth of Independent States, including certain associate and former member States.  
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS. Viewed at: 
https://www.swiss -impex.admin.ch/index.xhtml . 
  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 187 - 
 
  Table A1. 4 Merchandise exports by destination  for Switzerland , 2016 -20 
  2016  2017  2018  2019  2020  
Total exports (CHF billion)  210.5 220.6 233.2 242.3 225.3  
(% of total)  
Americas  19.5 19.9 20.9 21.8 21.8 
 United  States  15.0 15.3 16.3 17.3 17.5 
 Other America  4.6 4.6 4.6 4.4 4.2 
   Canada  1.6 1.6 1.6 1.6 1.6 
Europe  55.1 54.5 53.6 52.6 53.2 
 EU-27 48.3 47.8 48.0 47.4 48.3 
   Germany  18.8 18.9 18.8 18.2 17.9 
   Italy 5.9 6.2 6.2 5.8 5.8 
   France  6.7 6.4 6.5 5.9 5.3 
   Spain  2.6 2.6 2.9 3.2 3.3 
   Austria  2.8 3.0 2.6 2.4 2.7 
   Netherlands  2.4 2.3 2.2 2.4 2.7 
   Slovenia  0.2 0.2 0.4 1.4 2.1 
   Belgium  2.8 1.9 1.8 1.8 1.8 
   Poland  1.0 1.0 1.1 1.1 1.2 
 EFTA 0.3 0.3 0.3 0.3 0.3 
 Other Europe  6.5 6.4 5.2 4.9 4.7 
   United Kingdom  5.4 5.2 4.0 3.8 3.5 
CISa 1.2 1.3 1.3 1.6 1.5 
   Russian  Federation  1.0 1.0 1.1 1.3 1.2 
Africa  1.6 1.5 1.6 1.5 1.5 
Middle East  4.6 4.0 3.8 3.6 3.3 
Asia 18.0 18.8 18.9 18.9 18.7 
 China  4.7 5.2 5.2 5.5 6.5 
 Japan  3.5 3.3 3.3 3.3 3.1 
 Other Asia  9.8 10.3 10.4 10.1 9.1 
   Singapore  1.6 1.9 1.9 2.0 2.2 
   Hong Kong, China  2.3 2.4 2.5 2.3 1.6 
   Korea, Republic of  1.3 1.4 1.4 1.4 1.3 
Other  0.0 0.0 0.0 0.0 0.0 
Memorandum:       
EU-28 53.7 53.0 52.0 51.2 51.7 
a Commonwealth of Independent States, including certain associate and former member States.  
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coins, precious stones and gems, and works  of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the FOCBS. Viewed at: 
https://www.swiss -impex.admin.ch/index.xhtml . 
  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 188 - 
 
  Table A1. 5 Merchandise imports by origin for Liechtenstein, 2016 -20 
  2016  2017  2018  2019  2020  
Total imports (CHF million)  1,853.4  1,900.1  1,950.4  1,884.6  1,577.3   
(% of total)  
Americas  2.8 3.9 4.2 5.6 6.2 
 United  States  2.3 3.5 3.8 5.2 5.8 
 Other America  0.5 0.5 0.3 0.4 0.5 
Europe  78.8 80.1 77.8 77.1 78.1 
 EU-27 76.8 77.9 75.8 74.9 75.8 
   Germany  35.2 36.9 36.2 34.7 34.7 
   Austria  25.3 24.4 22.4 22.9 21.9 
   Italy 3.0 3.4 3.6 3.7 3.2 
   Croatia  1.3 1.7 1.9 2.2 3.2 
   Hungary  1.7 1.8 2.0 1.9 2.1 
 EFTA 0.0 0.0 0.0 0.0 0.0 
 Other Europe  2.0 2.1 2.1 2.2 2.3 
   United Kingdom  1.4 1.5 1.4 1.3 1.4 
CISa 0.0 0.0 0.0 0.0 0.0 
Africa  0.0 0.0 0.1 0.1 0.0 
Middle East  0.1 0.3 0.1 0.1 0.1 
Asia 18.1 15.7 17.7 17.1 15.4 
 China  12.6 9.7 11.7 11.4 9.8 
 Japan  1.1 1.5 1.6 1.4 1.7 
 Other Asia  4.4 4.4 4.5 4.2 3.9 
   Chinese  Taipei  0.8 1.0 1.0 0.9 0.9 
   Korea, Republic of  0.9 0.8 0.8 0.8 0.8 
Memorandum:       
EU-28 78.2 79.4 77.1 76.2 77.2 
a Commonwealth of Independent States, including certain associate and former member States.  
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques. The trade in goods with and via 
Switzerland is not included in the trade statistics.  
Source:  WTO Secretariat calculations, based on Liechtenstein Office of Statistics, eTab. Viewed at: 
https://etab.llv.li/PXWeb/pxweb/en/eTab/ . 
  WT/TPR/S/ 425/Rev.1  • Switzerland  and Liechtenstein  
 
- 189 - 
 
  Table A1. 6 Merchandise exports by destination for Liechtenstein, 2016 -20 
  2016  2017  2018  2019  2020  
Total exports (CHF million)  3,224.9  3,286.0  3,490.1  3,378.3  2,821.0   
(% of total)  
Americas  19.3 19.0 19.0 20.8 18.4 
 United  States  13.9 13.9 14.0 15.6 13.9 
 Other America  5.4 5.2 5.0 5.3 4.5 
   Mexico  2.7 2.5 2.5 2.6 2.1 
   Canada  1.3 1.2 1.1 1.3 1.3 
Europe  60.0 58.9 57.5 57.7 61.4 
 EU-27 56.0 55.3 53.8 54.1 58.2 
   Germany  23.3 23.0 22.2 22.5 25.1 
   Austria  11.1 10.4 9.9 10.0 10.8 
   France  7.8 8.3 8.6 8.3 8.1 
   Italy 3.2 3.1 3.3 3.0 3.1 
   Poland  1.3 1.4 1.5 1.8 2.1 
 EFTA 0.4 0.4 0.5 0.5 0.7 
 Other Europe  3.6 3.2 3.2 3.1 2.5 
   United Kingdom  2.9 2.6 2.4 2.3 1.8 
CISa 1.5 2.1 2.0 2.4 2.2 
   Russian  Federation  1.2 1.8 1.6 1.9 1.8 
Africa  1.1 1.0 1.1 1.3 1.0 
Middle East  3.6 4.0 3.3 3.1 2.4 
Asia 14.4 15.0 17.1 14.7 14.7 
 China  5.7 6.7 6.3 6.2 7.1 
 Japan  1.8 1.4 3.9 1.7 1.7 
 Other Asia  6.9 6.8 6.9 6.9 5.9 
   Singapore  2.6 2.5 2.5 2.4 1.7 
   Korea, Republic of  0.9 0.9 0.8 0.8 0.9 
Memorandum:       
EU-28 58.9 57.8 56.2 56.3 60.0 
a Commonwealth of Independent States, including certain associate and former member States.  
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coins, precious stones and gems, and works of art and antiques. The trade in goods with and via 
Switzerlan d is not included in the trade statistics.  
Source:  WTO Secretariat calculations, based on Liechtenstein Office of Statistics, eTab. Viewed at: 
https://etab.llv.li/PXWeb/pxweb/en/eTab/ . 
   
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 190 - Table A1. 7 FDI by economic activity, 2016 -20 
(CHF billion)   
Capital flows  Capital stock at year -end (book value)   
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
FDI in Switzerlanda 148.0  109.3  -81.7 -105.4  -153.1  1,264.2  1,347.8  1,337.4  1,376.0  1,216.3  
Manufacturing  5.8 58.8 -28.8 7.4 5.5 139.2  169.3  173.8  176.8  168.2  
   Chemicals and plastics  2.6 53.2 -5.3 3.4 -1.6 72.6 93.2 88.1 83.2 79.8 
   Metals and machinery  0.0 1.5 -1.1 -0.3 2.7 13.5 15.6 15.4 17.1 19.4 
   Electronics, energy, optical and watchmaking  2.5 1.6 -20.0 0.2 -7.3 41.6 46.4 57.7 58.3 50.6 
   Other manufacturing and construction  0.7 2.4 -2.3 4.0 11.7 11.5 14.2 12.7 18.2 18.3 
Services  142.2  50.6 -52.9 -112.8  -158.6  1,125.0  1,178.5  1,163.6  1,199.2  1,048.2  
   Trade  12.8 11.6 16.3 -22.0 -7.7 176.7  188.7  203.9  260.9  238.3  
   Finance and holding companies  122.6  36.9 -67.8 -70.7 -165.4  776.6  826.6  809.6  803.2  657.7  
     of which special purpose entities  64.4 -7.8 12.3 -14.5 -113.2  253.8  254.8  300.9  295.4  171.1  
   Banks  -1.3 -0.8 -1.0 0.0 -0.4 24.5 24.1 25.1 23.6 22.8 
   Insurance companies  1.1 2.8 -3.4 -1.9 0.7 24.4 26.8 21.2 15.2 18.1 
   Transportation and communications  1.9 -0.5 0.0 2.7 3.1 14.8 15.2 16.2 19.4 21.4 
   Other services  5.0 0.5 2.8 -20.9 11.0 108.1  97.2 87.6 76.8 89.9 
Memorandum item:  
Real estate activities  0.0 0.2 0.4 0.3 0.3 37.8 37.8 37.9 38.0 38.4 
Total including real estate activities  148.0  109.5  -81.3 -105.1  -152.8  1,302.0  1,385.7  1,375.3  1,414.0  1,254.7  
Swiss direct investment abroadb 164.6  22.2 43.8 -54.5 -34.0 1,357.3  1,387.1  1,475.5  1,477.1  1,460.0  
Manufacturing  28.9 -8.1 13.9 22.1 1.3 425.1  424.6  450.4  467.6  451.1  
   Textiles and clothing  1.7 1.1 1.7 -0.7 -0.3 4.1 3.6 5.5 5.0 4.5 
   Chemicals and plastics  8.5 -12.1 13.9 1.2 11.7 165.6  163.5  186.7  177.9  179.3  
   Metals and machinery  2.9 4.2 5.3 0.3 1.9 38.2 43.5 47.9 50.7 53.2 
   Electronics, energy, optical and watchmaking  8.9 2.7 -9.0 1.6 -6.1 79.9 83.6 86.0 88.7 83.9 
   Other manufacturing and construction  7.0 -4.1 2.0 19.8 -5.9 137.3  130.4  124.3  145.3  130.2  
Services  135.7  30.4 29.8 -76.6 -35.2 932.3  962.5  1,025.1  1,009.5  1,009.0  
   Trade  14.3 -7.5 32.2 -31.1 12.3 146.6  135.9  167.2  168.9  173.9  
   Finance and holding companies  99.2 35.2 -13.2 -40.2 -53.2 541.6  578.1  597.5  596.9  577.6  
     Swiss -controlled  8.9 -3.2 16.4 -3.3 -4.9 106.9  103.1  120.5  104.2  100.6  
     Foreign -controlled  90.4 38.4 -29.7 -36.9 -48.3 434.7  475.0  477.0  492.7  477.0  
        of which special purpose entities  68.1 -2.3 -16.3 -3.1 -8.2 164.9  162.3  162.8  139.4  125.6  
   Banks  2.1 -1.7 -2.2 6.2 0.4 85.7 82.1 79.1 84.2 81.2 
   Insurance companies  22.4 5.2 2.9 3.2 -0.9 100.2  106.7  102.9  102.8  103.7  
   Transportation and communications  0.5 0.6 3.8 2.0 -1.1 28.1 29.6 35.8 37.2 34.1 
   Other services  -2.8 -1.5 6.5 -16.6 7.2 30.0 30.2 42.6 19.5 38.5 
Total excluding foreign -controlled finance and 
holding companies  74.3 -16.2 73.4 -17.5 14.4 922.7  912.1  998.5  984.4  983.1   
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 191 -  
Capital flows  Capital stock at year -end (book value)   
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
Memorandum item:  
Real estate activities  -0.5 -0.6 -1.1 -1.4 0.0 3.4 4.3 5.3 6.4 6.4 
Total including real estate activities  164.1  21.6 42.6 -55.8 -33.9 1,360.7  1,391.4  1,480.8  1,483.5  1,466.4  
a The minus sign ( -) indicates an outflow of capital from Switzerland (disinvestment).  
b The minus sign ( -) indicates a return flow of capital into Switzerland (disinvestment).  
Source:  SNB, Direct Investment . Viewed at: https://data.snb.ch/en/topics/aube#!/cube/fdiaustabsa .  
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 192 - Table A1. 8 Foreign direct investment by selected trading partners, 2016 -20 
(CHF billion)   
Capital flows  Capital stock at year -end (book value)   
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
FDI in Switzerlanda 148.0  109.3  -81.7 -105.4  -153.1  1,264.2  1,347.8  1,337.4  1,376.0  1,216.3  
EU-27 124.7  103.2  -99.2 -81.3 -150.9  980.6  1,055.5  966.3  956.3  882.8  
   Austria  10.1 -1.1 3.5 0.2 6.8 68.3 63.2 76.1 9.9 16.1 
   Belgium  -1.1 -1.2 -0.5 12.8 -1.5 4.4 4.7 4.0 16.8 18.9 
   Cyprus  -0.5 1.3 -0.6 1.2 -0.5 13.7 15.1 16.4 16.4 14.7 
   Denmark  -0.4 1.5 0.2 -15.4 -2.0 16.8 19.2 21.0 5.8 2.6 
   France  -2.9 0.5 10.4 3.5 0.6 37.4 39.1 45.0 48.5 48.1 
   Germany  2.3 1.3 -8.8 -2.4 0.4 25.2 27.6 15.8 12.3 14.0 
   Hungary  4.5 2.5 -2.3 -1.1 -12.0 43.9 46.5 44.1 42.9 29.2 
   Ireland  25.4 10.9 17.6 -63.6 11.6 71.9 82.5 78.5 93.7 94.5 
   Italy 0.5 0.0 -1.4 0.2 0.3 4.7 4.5 2.9 2.7 2.8 
   Luxembourg  33.4 42.1 -28.7 -6.6 -103.5  296.1  361.1  360.7  350.6  283.1  
   Netherlands  51.0 46.7 -49.7 -18.6 -54.0 378.4  368.1  358.5  402.3  332.4  
   Sweden  -0.1 0.8 0.6 0.3 1.4 9.9 11.6 12.4 12.1 12.5 
United Kingdom  6.0 -26.0 38.7 -6.4 -5.8 49.1 42.1 79.6 71.0 62.0 
United  States  13.9 -16.5 -34.5 -40.6 18.6 137.1  97.9 83.4 128.7  153.9  
Offshore financial centres in Central 
and South America  3.4 34.8 -51.1 15.1 -31.1 75.6 109.4  56.8 70.6 35.1 
Japan  -0.4 -1.9 -0.6 17.3 11.3 5.8 4.4 3.1 20.6 30.9 
Swiss direct investment abroadb 164.6  22.2 43.8 -54.5 -34.0 1,357.3  1,387.1  1,475.5  1,477.1  1,460.0  
EU-27 108.8  15.5 11.2 -67.5 -51.2 667.8  687.6  641.9  614.5  664.7  
   Belgium  -1.6 -4.3 -3.1 5.6 4.2 15.6 13.3 8.5 13.4 17.7 
   Cyprus  -1.4 52.2 -0.5 0.0 -42.5 8.7 45.5 46.4 49.9 42.0 
   France  2.9 -0.9 9.0 3.7 0.5 59.6 59.3 63.0 65.8 64.8 
   Germany  7.2 5.7 10.8 5.4 2.7 41.2 47.2 58.8 63.8 69.5 
   Hungary  4.0 0.4 0.4 20.4 25.5 5.6 5.8 5.6 26.3 50.1 
   Ireland  36.2 -42.2 6.7 -36.7 -15.9 137.1  99.9 118.2  83.0 57.9 
   Italy 0.8 0.6 1.3 2.1 0.9 16.0 17.7 17.9 20.5 21.4 
   Luxembourg  26.4 -6.2 -3.3 -57.9 -22.7 197.3  193.5  189.7  133.4  114.7  
   Netherlands  35.7 7.2 0.1 -10.5 -10.3 143.9  156.6  163.3  175.0  158.9  
United Kingdom  13.3 -14.5 12.5 5.9 4.6 56.0 52.9 80.6 82.8 89.4 
Turkey  0.4 0.2 0.2 0.1 0.9 2.4 2.3 2.3 2.3 2.2 
Norway  2.3 -0.4 -0.3 -3.5 0.5 4.9 4.3 4.5 2.6 3.0 
Russian  Federation  1.1 4.5 2.6 3.9 0.9 17.8 21.4 23.0 28.4 27.8 
Offshore  financial  centres in Europe  4.0 5.1 -0.8 1.2 -0.1 19.8 25.0 23.3 24.7 27.2 
Canada  -3.3 0.5 -6.7 8.4 -2.2 44.1 36.3 28.1 37.4 31.8 
United  States  62.8 14.9 -14.2 -6.9 16.1 268.1  285.1  293.0  281.8  292.6  
Brazil  0.1 -0.2 1.2 1.0 -0.3 10.6 10.4 10.3 10.8 8.1  
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 193 -  
Capital flows  Capital stock at year -end (book value)   
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
China  1.5 3.2 3.1 1.7 3.0 20.0 22.1 22.3 23.5 25.2 
Japan  2.2 4.4 2.4 0.9 0.7 11.6 14.2 16.8 21.7 22.0 
Singapore  -2.5 -1.3 6.4 -4.6 11.0 18.7 18.0 25.0 21.5 32.5 
United Arab Emirates  -3.8 -0.5 -3.3 -9.3 -2.2 18.8 17.8 14.7 10.4 4.7 
Australia  -0.5 -1.9 -8.6 -0.7 4.0 17.0 15.2 6.5 5.9 10.1 
a The minus sign ( -) indicates an outflow of capital from Switzerland (disinvestment). Capital stocks by immediate investor.  
b The minus sign ( -) indicates a return flow of capital into Switzerland (disinvestment).   
Source:  SNB, Direct Investment. Viewed at: https://data.snb.ch/en/topics/aube#!/cube/fdiaustabsa .  
 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 194 - 
 
  Table A2. 1 Switzerland and Liechtenstein's RTAs in force, January 2022  
RTA name  Coverage 
goods 
and 
services  Other selected issues  Date of 
signature 
(entry into 
force)  WTO 
consideration 
processa 
(WTO doc. 
series)  
EEA agreements  
EEA Goods, 
services   02/05/1992  
01/07/1994  FA issued  
(WT/REG138)  
EEA-EFTA States -United 
Kingdom  Goods, 
services  Investment liberalization, 
environment, labour, SMEs, 
e-commerce  08/07/2021  
01/12/2021  Awaiting data 
from parties  
(WT/REG459)  
EFTA agreements  
EFTA Goods, 
services   04/01/1960 
and 
21/06/2001  
(03/05/1960 
and 
01/06/2002)  Report 
adopted  
(WT/REG154)  
EFTA-Turkey (as revised in 
2021)  Goods  
(and 
services)  (labour, environment)  10/12/1991  
(01/04/1992)  
25/06/2018  
(01/10/2021)  Report 
adopted  
(WT/REG86)  
EFTA-Israel  Goods   17/09/1992  
(01/01/1993)  FA issued  
(WT/REG14)  
EFTA-Palestine  Goods   30/11/1998  
(01/07/1999)  No factual 
presentation  
(WT/REG79)  
EFTA-Morocco  Goods  SMEs  19/06/1997  
(01/12/1999)  FA issued  
(WT/REG91)  
EFTA-Mexico  Goods, 
services  SMEs  27/11/2000  
(01/07/2001)  FA issued  
(WT/REG126)  
EFTA-North  Macedonia  Goods   19/06/2000  
(01/05/2002)  FA issued  
(WT/REG117)  
EFTA-Jordan  Goods  Investment liberalization  21/06/2001  
(01/09/2002)  FA issued  
(WT/REG133)  
EFTA-Singapore  Goods, 
services  Investment liberalization  26/06/2002  
(01/01/2003)  FA issued  
(WT/REG148)  
EFTA-Chile Goods, 
services  Investment liberalization, 
SMEs  26/06/2003  
(01/12/2004)  FP issued  
(WT/REG179)  
EFTA-Tunisia  Goods  Environment  17/12/2004  
(01/06/2005)  FP issued  
(WT/REG201)  
EFTA-Republic of Korea  Goods, 
services  Investment liberalization, 
environment  15/12/2005  
(01/09/2006)  FP issued  
(WT/REG217)  
EFTA-Lebanon  Goods  SMEs  24/06/2004  
(01/01/2007)  
 Awaiting data 
from parties  
(WT/REG224)  
EFTA-Egypt  Goods  Environment, SMEs  27/01/2007  
(01/08/2007)  FP issued  
(WT/REG232)  
EFTA-SACUb Goods  Environment, SMEs  26/06/2006  
(01/05/2008)  FP issued  
(WT/REG256)  
EFTA-Canada  Goods  SMEs  26/01/2008  
(01/07/2009)  FP issued  
(WT/REG271)  
EFTA-Serbia  Goods  Environment, Labour, SMEs  17/12/2009  
(01/10/2010)  FP issued  
(WT/REG290)  
EFTA-Albania  Goods  Environment, SMEs  17/12/2009  
(01/11/2010)  FP issued  
(WT/REG292)  
EFTA-Colombia  Goods,  
services  Investment liberalization, 
e-commerce, SMEs  25/11/2008  
(01/07/2011)  FP issued  
(WT/REG299)  
EFTA – Gulf Cooperation 
Councilc Goods, 
services   
22/06/2009  
(01/07/2014)  Not notified   
EFTA-Peru Goods  Investment liberalization, 
environment, e -commerce, 
SMEs  24/06/2010  
(01/07/2011)  FP issued  
(WT/REG295)  
EFTA-Ukraine  Goods, 
services  Investment liberalization, 
environment, SMEs  24/06/2010  
(01/06/2012)  FP issued  
(WT/REG315)  
EFTA-Montenegro  Goods  Environment, labour  14/11/2011  
(01/09/2012)  FP issued  
(WT/REG323)  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 195 - 
 
  RTA name  Coverage 
goods 
and 
services  Other selected issues  Date of 
signature 
(entry into 
force)  WTO 
consideration 
processa 
(WTO doc. 
series)  
EFTA-Hong Kong, China  Goods, 
services  Investment liberalization, 
environment, labour  21/06/2011  
(01/10/2012)  FP issued  
(WT/REG322)  
EFTA-Central America (Costa 
Rica and Panama)  Goods, 
services  Investment liberalization, 
environment, labour, 
e-commerce, SMEs  24/06/2013  
(19/08/2014)  FP issued  
(WT/REG357)  
EFTA Bosnia and 
Herzegovina  Goods  Environment, labour  24/06/2013  
(01/01/2015)  FP issued  
(WT/REG360)  
EFTA-Georgia  Goods, 
services  Investment liberalization, 
environment, labour, SMEs  27/06/2016  
(01/09/2017)  FP issued  
(WT/REG386)  
EFTA-Philippines  Goods, 
services  Environment, labour  28/04/2016  
(01/06/2018)  FP issued  
(WT/REG394)  
EFTA-Ecuador  Goods,  
services  Investment liberalization, 
environment, labour  25/06/2018  
(01/11/2020)  Not notified   
EFTA-Indonesia  Goods,  
services  Investment liberalization, 
environment, labour  16/12/2018  
(01/11/2021)  Not notified  
Bilateral agreements  
Switzerland -EU    22/07/1972  
(01/01/1973)  WPR issued  
(WT/REG94)  
Faroe Islands -Switzerland  Goods   12/01/1994  
(01/03/1995)  FA issued  
(WT/REG24)  
Japan -Switzerland  Goods, 
services  Investment liberalization, 
environment, labour, 
e-commerce  19/02/2009  
(01/09/2009)  
 FP issued  
(WT/REG273)  
China -Switzerland  Goods, 
services  Environment, labour, SMEs  06/07/2013  
(01/07/2014)  FP issued  
(WT/REG351)  
UK-Switzerland -Liechtenstein  Goods   11/02/2019  
(01/01/2021)  FP being 
drafted  
(WT/REG437)  
a FP (Factual Presentation), FA (Factual Abstract), WPR (Working Party Report).  
b SACU comprises Botswana, Eswatini, Lesotho, Namibia, and South  Africa.  
c The GCC comprises the United Arab Emirates, the Kingdom of Bahrain, the Kingdom of Saudi Arabia, 
Oman, and the State of Kuwait.  
Source:  WTO RTA database. Viewed at: https://rtais.wto.org ; and EFTA, Free Trade Agreements and Trade 
Relations by Partners . Viewed at: https://www.efta.int/free -trade/free -trade-agreements . 
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 196 - 
 
  Table A2. 2 Work and residence permits: rules and procedures for EU/EFTA citizens, 
January 2022  
Rules for EU/EFTA citizens  Rules for citizens of non -EU/EFTA countries  
Short -term resident permit   
Permit L -EU/EFTA  Permit L  
- Entitlement as long as proof is provided of 
employment in Switzerland lasting between 
3 months and 1 year (for employment of less than 3 
months in 1 calendar year: registration only)  
- Period of validity depends on employment contract  
- Family reunificati on possible  - Only qualified workers such as managers, 
specialists, and other qualified persons are admitted  
- Priority for Swiss workers, inspection of 
remuneration and working conditions  
- Up to 12 months, can be extended up to 24 
months  
- Family reunifi cation possible  
- Annual quota of 4,000 permits  
- Trainees/interns possible, but no provision for 
family reunification  
 
Cross -border commuter   
Permit G -EU/EFTA  Permit G  
- Unrestricted geographical mobility  
- Holder must return to main residence in an 
EU/EFTA country every week  
- Self-employment possible  
- Period of validity depends on employment contract, 
but 5 years maximum, with possibility of extension  - Valid for 12 months for border zone of canton in 
which permit issued; annual renewal required  
- Applicant has been resident for at least 6 months 
with permanent residence permit in border zone of a 
neighbouring country  
- Weekly return to place of residence  
- Change of job or place of work possible with 
permission  
Residence permit   
Permit G -EU/EFTA  Permit G  
- Unrestricted geographical mobility  
- Holder must return to main residence in an 
EU/EFTA country every week  
- Self-employment possible  
- Period of validity depends on employment contract, 
but 5 years m aximum, with possibility of extension  - Valid for 12 months for border zone of canton in 
which permit issued; annual renewal required  
- Applicant has been resident for at least 6 months 
with permanent residence permit in border zone of a 
neighbouring count ry 
- Weekly return to place of residence  
- Change of job or place of work possible with 
permission  
Permanent residence permit   
Permit C -EU/EFTA  Permit C  
- Normally issued on the basis of permanent 
residence agreements or agreements based on 
reciprocal rights once a person has resided in 
Switzerland for 5 years  
- Holders have the same rights as Swiss workers on 
the labour market  - Can usually be applied for after 10 years 
uninterrupted residence in Switzerland  
- Holders are no longer subject to employment 
restrictions  
 
Source:  Information provided by the authorities.  
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 197 - 
 
  Table A3. 1 MFN applied tariff summary, 2021  
  Number 
of lines  Average 
(%) Range (%)  Standard  
deviation  Duty - 
free Quota  
(%) 
Total  8,525  7.2 0-671.3  28.0 26.9 3.7 
HS 01 -24 2,358  22.7 0-671.3  51.7 25.3 13.3 
HS 25 -97 6,167  1.8 0-254.2  4.8 27.5 0.1 
By WTO category        
WTO agricultural products  2,146  25.4 0-671.3  54.2 19.5 14.8 
 Animals and products thereof  175 59.3 0-536 75.1 9.7 68.0 
 Dairy products  58 87.5 1.1-407.6  93.1 0.0 24.1 
 Fruit, vegetables, and plants  621 28.4 0-671.3  70.5 15.3 20.6 
 Coffee and tea  62 9.8 0-109.5  17.5 16.1 0.0 
 Cereals and preparations  426 20.5 0-176.4  24.4 8.5 5.4 
 Oils seeds, fats, oil and their products  394 20.6 0-172.4  34.0 25.6 0.0 
 Sugars and confectionery  58 6.5 0-34.7 6.6 25.9 0.0 
 Beverages, spirits and tobacco  130 18.9 0-171.3  30.4 10.8 21.5 
 Cotton  6 0.0 0 0.0 100.0  0.0 
 Other agricultural products, n.e.s.  216 5.2 0-254.2  23.7 57.4 2.8 
WTO non -agricultural products  6,379  1.7 0-59.9 3.4 29.3 0.0 
 Fish and fishery products  290 0.3 0-13.9 1.2 77.6 0.0 
 Minerals and metals  1,293  1.8 0-33.3 2.7 12.1 0.0 
 Chemicals and photographic supplies  1,168  1.1 0-28.5 2.6 39.1 0.0 
 Wood, pulp, paper and furniture  372 4.6 0-34.1 5.9 21.5 0.0 
 Textiles  774 2.5 0-59.9 5.7 66.8 0.0 
 Clothing  332 4.4 0.4-29.3 3.1 0.0 0.0 
Leather, rubber, footwear and travel 
goods  173 1.5 0-9 1.5 3.5 0.0 
 Non-electric machinery  896 0.7 0-16.6 1.1 18.5 0.0 
 Electric machinery  361 0.8 0-7.7 1.0 25.5 0.0 
 Transport equipment  229 1.5 0-24.3 3.1 11.8 0.0 
 Non-agricultural products, n.e.s.  470 1.4 0-15.9 2.0 26.4 0.0 
 Petroleum  21 0.0 0 0.0 100.0  0.0 
By ISIC sector        
 ISIC 1 - Agriculture, hunting and fishing  901 21.9 0-671.3  63.7 26.6 16.8 
 ISIC 2 - Mining  105 0.7 0-16.7 2.2 62.9 0.0 
 ISIC 3 - Manufacturing  7,518  5.8 0-536 20.8 26.4 2.2 
 ISIC 4 - Electrical energy  1 0.0 0 0.0 100.0  0.0 
By stage of processing        
 First stage of processing  1,428  14.1 0-671.3  51.2 36.4 10.9 
 Semi-processed products  2,551  2.2 0-109.9  6.3 37.4 0.0 
 Fully processed products  4,546  8.1 0-536 25.8 17.9 3.6 
By HS section        
01 Live animals and products  485 29.4 0-536 63.5 45.8 26.0 
02 Vegetable products  1,049  22.3 0-671.3  60.1 17.5 12.5 
03 Fats and oils  197 29.1 0-133.5  36.7 36.0 0.0 
04 Prepared food, beverages and 
tobacco  627 16.5 0-223.6  26.4 19.0 8.9 
05 Mineral products  183 0.7 0-16.7 2.1 66.1 0.0 
06 Chemicals and products thereof  1,091  1.3 0-254.2  8.3 40.9 0.5 
07 Plastics, rubber, and articles thereof  243 2.3 0-15.4 2.5 14.0 0.0 
08 Raw hides and skins, leather, and its 
products  74 1.3 0-10.4 1.7 20.3 0.0 
09 Wood and articles of wood  153 2.8 0-19 2.9 10.5 0.0 
10 Pulp of wood, paper and paperboard  182 7.0 0-34.1 7.2 15.4 0.0 
11 Textiles and textile articles  1,098  2.9 0-59.9 5.1 49.4 0.0 
12 Footwear, headgear, etc.  60 2.6 0.4-9.8 2.1 0.0 0.0 
13 Articles of stone, plaster, cement  165 3.1 0-37.2 4.7 1.2 0.0 
14 Precious stones and metals, pearls  61 0.5 0-10.8 1.5 11.5 0.0 
15 Base metals and articles thereof  906 2.0 0-33.3 2.5 4.3 0.0 
16 Machinery, electrical equipment, etc.  1,252  0.7 0-16.6 1.1 21.6 0.0 
17 Transport equipment  241 1.5 0-24.3 3.0 12.0 0.0 
18 Precision equipment  241 0.5 0-9.7 1.0 40.2 0.0 
19 Arms and ammunition  26 1.0 0.1-5.9 1.5 0.0 0.0 
20 Miscellaneous manufactured articles  181 2.1 0-15.9 2.3 21.5 0.0 
21 Works of art, etc.  10 0.1 0-0.7 0.2 80.0 0.0 WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 198 - 
 
  Note:  Calculations are based on national tariff line level (8 -digit), excluding in -quota rates and including 
AVEs.  
 The tariff schedules are based on HS17 nomenclature, consisting of 8,825 tariff lines (at the 8 -digit 
tariff line level).  
 Ad valorem  equivalents (AVEs) were estimated based on 2020 import data at the 8 -digit tariff line 
level.  
 If no import data were available for 2020, 2019 import data were used in calculations.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.   
   
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 199 - Table A3. 2 Swiss imports by preferential tariff regimes, 2020  
(CHF million, %)  
 MFN duty -free MFN 
dutiable  Preference eligible  Other 
(HS99)  Total 
imports 
in 2020    Value  % of 
total  Total  Preferences 
used  Preference 
utilization 
(%) Preference 
eligible, but 
entering MFN 
dutiable  
EFTA 308.8  66.0 0.5 157.9  132.6  83.9 25.4 0.5 467.6  
European  Union  75,726.7  49.9 3,241.7  72,744.7  49,624.4  68.2 23,120.2  50.8 151,764.0  
Bilateral agreements     
              
  China  6,775.1  40.9 2.0 9,802.3  3,000.6  30.6 6,801.7  1.2 16,580.5  
  Japan  3,360.9  67.4 10.1 1,618.2  583.1  36.0 1,035.1  0.0 4,989.2  
  Faroe Islands  4.8 99.2 0.0 0.0 0.0 28.9 0.0 0.0 4.9 
EFTA agreements     
       
      
  Albania  1.0 5.5 0.0 17.6 6.4 36.6 11.2 0.0 18.7 
  Bosnia and Herzegovina  19.3 15.0 2.3 103.7  65.5 63.2 38.2 3.6 128.9  
  Canada  1,221.7  69.0 5.8 544.0  37.2 6.8 506.8  0.1 1,771.5  
  Chile 721.6  91.2 12.2 57.3 1.2 2.1 56.1 0.0 791.1  
  Colombia  226.7  74.6 0.7 76.6 34.3 44.9 42.2 0.0 304.0  
  Costa Rica  77.4 76.5 0.0 23.7 10.7 45.2 13.0 0.0 101.2  
  Ecuadora 177.7  86.6 0.1 27.5 9.1 33.1 18.4 0.0 205.2  
  Egypt  43.8 49.2 7.2 38.0 10.5 27.6 27.5 0.0 88.9 
  North  Macedonia  6.0 8.0 2.0 66.6 20.8 31.2 45.8 0.0 74.6 
  Georgia  83.1 91.2 0.2 7.9 0.2 2.2 7.7 0.0 91.1 
  GCC 7,920.9  74.5 1.1 2,705.4  156.1  5.8 2,549.4  0.0 10,627.4  
   Bahrain, Kingdom of  1.3 1.6 0.0 82.6 76.1 92.2 6.5 0.0 83.9 
   Kuwait, State of  1.1 16.0 0.0 5.7 0.0 0.0 5.7 0.0 6.7 
   Oman  3.2 25.3 0.0 9.5 0.3 2.9 9.2 0.0 12.7 
   Qatar  3.2 0.8 0.6 419.3  0.0 0.0 419.3  0.0 423.1  
   Saudi Arabia, Kingdom of  377.1  61.6 0.0 235.3  68.2 29.0 167.2  0.0 612.5  
   United Arab Emirates  7,534.9  79.4 0.5 1,953.0  11.5 0.6 1,941.5  0.0 9,488.5  
  Hong Kong, China  9,844.9  87.0 1.1 1,463.8  8.1 0.6 1,455.8  0.0 11,309.8  
  Israel  100.3  25.3 9.7 285.2  93.1 32.6 192.1  1.0 396.3  
  Jordan  261.4  97.8 0.1 5.7 0.3 4.9 5.5 0.0 267.2  
  Korea, Republic of  502.7  50.7 1.2 487.8  266.5  54.6 221.3  0.0 991.7  
  Lebanon  918.2  90.3 0.9 98.2 1.0 1.0 97.2 0.0 1,017.4  
  Mexico  596.0  57.8 6.2 429.0  147.3  34.3 281.7  0.0 1,031.2  
  Montenegro  1.0 20.1 0.0 3.9 0.6 16.1 3.2 0.0 4.9 
  Morocco  41.4 16.0 4.3 213.0  135.4  63.5 77.7 0.0 258.8  
  Palestinian Authority  0.0 0.8 0.1 0.3 0.2 87.5 0.0 0.0 0.4 
  Panama  22.9 50.0 0.1 22.8 19.4 85.2 3.4 0.0 45.7 
  Peru 1,569.9  92.1 0.2 134.4  25.1 18.7 109.3  0.0 1,704.5  
  The Philippines  535.0  85.7 2.0 87.2 27.4 31.4 59.8 0.0 624.3  
  SACU  1,719.6  72.8 10.3 632.7  59.0 9.3 573.7  0.0 2,362.7  
   Botswana  9.6 99.3 0.0 0.1 0.0 0.0 0.1 0.0 9.7  
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 200 -  MFN duty -free MFN 
dutiable  Preference eligible  Other 
(HS99)  Total 
imports 
in 2020    Value  % of 
total  Total  Preferences 
used  Preference 
utilization 
(%) Preference 
eligible, but 
entering MFN 
dutiable  
   Namibia  0.2 7.5 0.0 3.0 0.0 0.3 3.0 0.0 3.3 
   Swaziland  2.0 72.6 0.0 0.7 0.0 0.0 0.7 0.0 2.7 
   South  Africa  1,707.8  72.8 10.3 628.9  59.0 9.4 569.9  0.0 2,347.0  
  Serbia  30.0 14.7 12.8 157.6  102.5  65.0 55.1 4.1 204.5  
  Singapore  3,549.9  92.7 0.2 281.3  10.3 3.6 271.1  0.0 3,831.4  
  Tunisia  27.5 14.2 0.5 165.3  51.0 30.9 114.3  0.0 193.3  
  Turkey  425.4  23.7 19.6 1,353.4  764.9  56.5 588.5  0.2 1,798.6  
  Ukraine  57.2 30.5 5.7 124.9  26.6 21.3 98.3 0.0 187.9  
Non-reciprocal           
  GSPb 21,474.4  77.8 140.0  5,974.1  1,268.2  21.2 4,705.8  0.0 27,588.5  
  LDCb,c 6,434.2  84.4 0.0 1,191.7  254.2  21.3 937.5  0.0 7,625.9  
a The RTA between EFTA and Ecuador entered into force on 1  November  2020. Until then, Ecuador benefited from a GSP scheme with the amount of 
CHF 6.5 million, which are counted towards "preference used" category.  
b Based on Annex I to the Ordinance on Tariff Preferences (RS  632.911), 16  March  2007 (Status as of 1  November  2020). Viewed at: 
https://www.fedlex.admin.ch/eli/cc/2007/159/fr .  
c   Imports from Lesotho were taken into account in LDC economies.  
Note:  Calculations based on general total (total 2) with gold bars and other precious metals, coin, and precious stones and gems, a s well as works of art and 
antiques.  
Source:  WTO Secretariat estimates, based on statistics provided by the Swiss authorities.  
   
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 201 - Table A4. 1 Switzerland's major traded agricultural products, 2016 -20a 
(CHF million, %)  
HS 6 -digit code/Product description  2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
  (CHF million)  (% of total agriculture)  
Total agricultural exports  8,941  9,297  9,648  9,730  9,365  100.0  100.0  100.0  100.0  100.0  
 (% of total exportsb) 4.2 4.2 4.1 4.0 4.2      
  
HS 090121 Roasted coffee (excl. decaffeinated)  1,829  2,015  2,095  2,281  2,466  20.5 21.7 21.7 23.4 26.3 
HS 220299 Non -alcoholic beverages (excl. water, fruit or 
vegetable juices, milk and beer)  1,844c 1,790  1,742  1,837  1,718  20.6 19.3 18.1 18.9 18.3 
HS 210690 Food preparations, n.e.s.  649 672 711 670 625 7.3 7.2 7.4 6.9 6.7 
HS 040690 Cheese (excl. fresh cheese)  527 537 561 575 602 5.9 5.8 5.8 5.9 6.4 
HS 180632 Chocolate and other preparations containing 
cocoa, in blocks, slabs or bars (excl. filled)  421 443 454 453 408 4.7 4.8 4.7 4.7 4.4 
HS 240220 Cigarettes, containing tobacco  526 480 554 528 382 5.9 5.2 5.7 5.4 4.1 
HS 190110 Food preparations for infant use, put up for 
retail sale, of flour, groats, meal, starch or malt extract  337 355 445 360 340 3.8 3.8 4.6 3.7 3.6 
HS 180690 Chocolate and other preparations containing 
cocoa (excl. in blocks, slabs or bars and cocoa powder)  297 329 318 304 239 3.3 3.5 3.3 3.1 2.6 
HS 090122 Roasted, decaffeinated coffee  179 193 197 204 206 2.0 2.1 2.0 2.1 2.2 
HS 230910 Dog or cat food, put up for retail sale  155 159 179 182 193 1.7 1.7 1.9 1.9 2.1 
HS 210111 Extracts, essences and concentrates, of 
coffee  142 151 148 149 156 1.6 1.6 1.5 1.5 1.7 
HS 170490 Sugar confectionery not containing cocoa, 
incl. white chocolate (excl. chewing gum)  157 168 169 154 140 1.8 1.8 1.8 1.6 1.5 
HS 190120 Mixes and doughs of flour, groats, meal, 
starch or malt extract  100 98 94 93 97 1.1 1.1 1.0 1.0 1.0 
HS 210390 Preparations for sauces and prepared 
sauces; mixed condiments and seasonings  127 131 121 119 93 1.4 1.4 1.3 1.2 1.0 
HS 220421 Wine of fresh grapes, incl. fortified wines 
(excl. sparkling wine)  88 114 109 92 78 1.0 1.2 1.1 0.9 0.8 
Total agricultural imports  173,542  185,774  201,849  205,150  182,312  100.0  100.0  100.0  100.0  100.0  
 (% of total importsb) 7 6 6 6 7      
  
HS 220421 Wine of fresh grapes, incl. fortified wines 
(excl. sparkling wine)  778 850 874 896 881 6.8 7.1 7.1 7.3 7.0 
HS 090111 Coffee (excl. roasted and decaffeinated)  523 577 584 581 622 4.6 4.8 4.7 4.7 4.9 
HS 210690 Food preparations, n.e.s.  388 423 459 487 526 3.4 3.5 3.7 4.0 4.2 
HS 190590 Bread, pastry, cakes, biscuits and other 
bakers' wares, whether or not containing cocoa  335 349 362 370 385 2.9 2.9 2.9 3.0 3.1 
HS 230910 Dog or cat food, put up for retail sale  155 176 202 213 239 1.4 1.5 1.6 1.7 1.9 
HS 040690 Cheese (excl. fresh cheese)  202 205 208 214 230 1.8 1.7 1.7 1.7 1.8 
HS 060290 Live plants, incl. their roots, and mushroom 
spawn  201 208 229 225 229 1.8 1.7 1.9 1.8 1.8 
HS 220410 Sparkling wine of fresh grapes  181 195 207 207 188 1.6 1.6 1.7 1.7 1.5 
HS 180690 Chocolate and other preparations containing 
cocoa (excl. in blocks, slabs or bars and cocoa powder)  161 162 163 164 163 1.4 1.4 1.3 1.3 1.3 
HS 220210 Waters, incl. mineral and aerated, with 
added sugar, sweetener or flavour, for direct 
consumption as a beverage  109 122 130 141 161 1.0 1.0 1.1 1.1 1.3  
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 202 - HS 6 -digit code/Product description  2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
  (CHF million)  (% of total agriculture)  
HS 220299 Non -alcoholic beverages (excl. water, fruit or 
vegetable juices, milk and beer)  137c 138 147 142 148 1.2 1.2 1.2 1.2 1.2 
HS 180400 Cocoa butter, fat and oil  174 175 166 171 147 1.5 1.5 1.3 1.4 1.2 
HS 020130 Fresh or chilled bovine meat, boneless  155 151 150 141 137 1.4 1.3 1.2 1.2 1.1 
HS 180100 Cocoa beans, whole or broken, raw or 
roasted  125 130 124 132 131 1.1 1.1 1.0 1.1 1.0 
HS 040610 Fresh cheese "unripened or uncured 
cheese", incl. whey cheese, and curd  101 115 128 125 130 0.9 1.0 1.0 1.0 1.0 
a Major products (top 15) are ranked according to 2020 values.  
b Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, coin, precious stones and  gems, and works of art and 
antiques.  
c HS changes between HS12 and HS17. The values of HS 220299 (HS17) are derived from HS 220290  (HS12).  
Note:  WTO definition of agriculture: HS Chapters 01 -24 less fish and fishery products (HS Chapter 03, 0508, 0511.91, 1504.10, 1504.20, 1603 -1605, and 2301.20),  
 plus some selected products (HS  2905.43 -2905.45, 3301, 3501 -3505, 3809.10, 3823, 3824. 60, 4101 -4103, 4301, 5001 -5003, 5101 -5103, 5201 -5203, and 
5301-5302).  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the Swiss Federal Customs Administration.  
   
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 203 - Table A4. 2 WTO tariff quotas for agricultu ral products  
  Applied MFN tariff: In -quota 
tariff (%)  Applied MFN tariff: Out -of-quota 
tariff (%)  Imports under tariff quotas in 2020b 
  As reported in 2021 
tariff schedule  
(tariff range)  AVEa  As reported in 2021 tariff 
schedule  
(tariff range)  AVEa  Unit Tariff 
quota 
quantity  In-quota 
imports  Fill 
rate  
(1) Live horses, asses, mules and 
hinnies  3-120 CHF/each  0.4 900-3,834 CHF/ each  20.8 Units 3,322  3,759  100%c 
(2) Live bovine animals  60 CHF/each  12.1 1,275 -1,500 CHF/ each  61.7 Units 20 1,318  100%c 
(3) Live swine  10-33 CHF/each  0.4 1,000 -1,309 CHF/ each  59.9 Units 50 0 0% 
(4) Live sheep and goats  3-5 CHF/each  0.9 59.5-122 CHF/ each  21.2 Units 187 459 100%c 
(5) Animals for slaughter; meat 
mainly produced on the basis of 
coarse fodder  20-375 CHF/100 kg gross  
25-95 CHF/each  21.2 68-2,212 CHF/100 kg gross  
59.5-1,309 CHF/ each  80.1 Tonnes  22,500  49,452  100%c 
(6) Animals for slaughter; meat 
mainly produced on the basis of 
concentrated fodder  0-175 CHF/100 kg gross  
40-63 CHF/each  6.7 55-3,140 CHF/100 kg gross  
1,309 CHF/ each  95.5 Tonnes  54,482  50,474  92.6%  
(7) Dairy produce, in milk 
equivalent  18-50 CHF/100 kg gross  9.6 40-1,642 CHF/100 kg gross  129.3  Tonnes  527,000  958,242  100%c 
(8) Casein  4 CHF/100 kg gross  0.8 575.3 -909 CHF/ 100 kg 
gross  107.0  Tonnes  697 11,184  100%c 
(9) Birds' eggs, in shell  50 CHF/100 kg gross  13.5 371 CHF/100 kg gross  49.2 Gross 
tonnes  33,735  32,486  96.3%  
(10) Dried egg productsd 255 CHF/100 kg gross  33.2 500-1,596 CHF/ 100 kg 
gross  32.0 Gross 
tonnes  977 600 61.4%  
(11) Egg products other than 
driedd 79 CHF/100 kg gross  30.1 134-420 CHF/100 kg gross  23.2 Gross 
tonnes  6,866  6,349  92.5%  
(12) Bovine semen  0.1 CHF/ usual unit  0.7 5 CHF/ usual unit  22.1 Appli-
cation 
units 20,000  405,989  100%c 
(13) Cut flowersd 12.5-25 CHF/100 kg gross  2.3 12.5-25 CHF/100 kg gross  2.0 Tonnes  4,590  6,964  100%c 
(14) Seed potatoes, potatoes for 
processing, table potatoes, potato 
products (in potato equivalent)  1.4-70 CHF/100 kg gross  13.0 44-785 CHF/100 kg gross  81.5 Tonnes  22,250  35,626  100%c 
(15) Fresh vegetables  0-10 CHF/100 kg gross  4.6 85-1,756 CHF 100 kg gross  143.3  Tonnes  166,076  234,198  100%c 
(16) Frozen vegetables  55 CHF/100 kg gross  34.0 170 CHF/100 kg gross  118.5  Tonnes  4,500  3,900  86.7%  
(17) Fresh apples, pears and 
quinces  2-5 CHF/100 kg gross  2.4 133-153 CHF/100 kg gross  80.2 Tonnes  15,810  12,943  81.9%  
(18) Fresh apricots, cherries, 
plums and sloes  3-10 CHF/100 kg gross  1.6 102-255 CHF/100 kg gross  54.0 Tonnes  16,340  16,259  99.5%  
(19) Other fresh fruit  3-5 CHF/100 kg gross  0.5 255-510 CHF/100 kg gross  33.6 Tonnes  13,360  18,663  100%c 
(20) Fruit for cider  2 CHF/100 kg gross  .. 17-21 CHF/100 kg gross  52.3 Tonnes  172 0 0% 
(21) Seed fruit products (in seed 
fruit equivalent)  9-100 CHF/100 kg gross  28.0 82-260 CHF/100 kg gross  58.2 Tonnes  244 244 100%   
  WT/TPR/S/425 /Rev.1  • Switzerland and Liechtenstein  
 
- 204 -   Applied MFN tariff: In -quota 
tariff (%)  Applied MFN tariff: Out -of-quota 
tariff (%)  Imports under tariff quotas in 2020b 
  As reported in 2021 
tariff schedule  
(tariff range)  AVEa  As reported in 2021 tariff 
schedule  
(tariff range)  AVEa  Unit Tariff 
quota 
quantity  In-quota 
imports  Fill 
rate  
(22) Grapes for pressing and 
grape juice  34-100 CHF/100 kg gross  37.4 3.47-4.3 CHF/litre  
272-782 CHF/100 kg gross  73.2 Hecto -
litres 100,000  62,719  62.7%  
(23), (24), (25) White wine and 
red wine  34-50 CHF/100 kg gross  20.0 1.08-3.27 CHF/ litre  34.5 Hecto -
litres 1,700,000  1,549,746  91.2%  
(26) Durum wheat, undenatured  1 CHF/100 kg gross  2.8 30 CHF/100 kg gross  66.9 Tonnes  110,000  62,009  56.4%  
(27) Bread grains, other cereals 
and cereal products suitable for 
use for consumption  19 CHF/100 kg gross  21.0 38-40 CHF/100 kg gross  46.3 Tonnes  70,000  38,241  54.6%  
(28) Coarse grains for human 
consumption  0.35-2.55 CHF/100 kg 
gross  6.2 20 CHF/100 kg gross  34.5 Tonnes  70,000  29,513  42.2%  
.. Not available.  
a Ad valorem  equivalents (AVEs) were estimated based on 2020 import data at the HS 8 -digit level. If no import data were available for 2020, 2019 import data 
were used in calculations.  
b 2019 imports under tariff quota from WTO document G/AG/N/CHE/113, 9  December  2021. 
c In cases where in -quota imports exceed the tariff rate quota quantities, fill rates are capped at 100%.  
d The AVE of in -quota tariffs is higher than the AVE of out -of-quota tariffs because of different unit prices used in the calculations.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and WTO document  G/AG/N/CHE/113, 9  December  2021.  
 
__________