WT/REG437/2  
 
16 September  2022 
(22-6680) Page: 1/4 
Committee on Regional Trade Agreements  Original: English/ Spanish  
 
 
TRADE AGREEMENT BETWEEN SWITZERLAND AND THE UNITED KINGDOM, GOODS  
QUESTIONS AND REPLIES  
 The following communication, dated 7 September  2022, is being circulated at the request of 
the delegations of  the United Kingdom and Switzerland . 
 
_______________  
 
 
Questions from Brazil  
 
Tariff rate quotas  
 
1.1.  Regarding paragraph 3.24 of the factual presentation, could the parties please clarify 
which method they are applying to administer tariff rate quotas? Could they also please 
comment if these quotas are being fully used by the parties?  
Response from the United Kingdom  
 
 The vast majority of the TRQs made available to Switzerland by the UK under th e agreement 
will be administered on a first -come first -served (FCFS) basis.  The others will be administered using 
a licence system.  
 
 Guidance on quota administration can be accessed through the UK government 's website at: 
CLAIMING TARIFF QUOTAS TO REDUCE IMPORT DUTIES - GOV.UK (WWW.GOV.UK)  for 
FCFS quotas, and at: NOTICE TO TRADERS - GOV.UK (WWW.GOV.UK)  and NOTICE 40/20 - 
CHANGES TO LICENCES MANAGED BY WTO AN D PREFERENTIAL IMPORT TARIFF RATE 
QUOTAS IN THE UK FROM 1 JANUARY 2021 - GOV.UK (WWW.GOV.UK)  for quotas 
administered through licenses.  
 
 Information relating to the utilisation of quotas administered by the UK and available to 
Switzerland can be found on t he UK government 's website.  
 
Rules of origin  
 
1.2.  Could the parties please explain how they have been conducting procedures of origin 
verification? Do they include, for example, visits to the premises where the good is 
produced? Also, considering that the agreement establishes extensive accumulation of 
origin and considers materials originating in a number of countries as originating in 
Switzerland and the UK (in accordance with articles 3 and 4 of the New Protocol No 3 
referred to in paragraph 3.35 of the Factual presentation), how do the parties verify the 
origin of these materials?  
Joint response from the Parties  
 
 Origin verifications are conducted by the customs authorities of the exporting party. The form 
of verification depends on the nature of the ca se. They can include visits at the premises of the 
exporter concerned but can also be made in writing. Upon completion of the verification, the customs 
authority of the exporting party shall send a written report to the requesting party. This report shall 
state whether the goods in question qualify as originating and whether the proof of origin is valid.  WT/REG437/2  
 
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   In case of accumulation with materials originating in a country with whom accumulation is 
applicable according to Articles 3 and 4 of the New Protocol No  3, the verification can indeed be 
extended to the material used. In order for an exporter to accumulate with, for example, materials 
of EU origin, he must be able to prove this origin by means of a proof of origin issued by the EU 
supplier. In the event o f an extension, this proof of origin is then sent to the relevant customs 
authorities in the EU with a request for verification. With this system, the goods and input materials 
can be checked with regard to their origin. And this is independent of whether input materials of 
another party were used or those of another country with which accumulation is applicable.  
 
Question from Canada  
 
Government procurement  
 
1.3.  Paragraph 4.15 provides: […] While it [ the "Accord sur les marchés publics"] 
provides for the gran ting of additional market access opportunities  for the authorities of 
the sub -central districts and communes, it also opens up, for both Parties […] to private 
providers of public services  [free translation, emphasis added in underline].  
 Could the Parties  please provide examples of "private providers of public services"?  
 
Response from the United Kingdom  
 
 The original English text of paragraph 4.15 of the Factual Presentation reads as:  
 
 "While it provides additional market access to sub-central districts and municipalities, it also 
opens, for both Parties, procurement by railway operators, entities active in the field of energy 
(excluding electricity), and private utility providers. The Joint Declarations, made in 1999 by 
Switzerland and the EU, on procedures for the award of contracts and on challenging procedures, 
and on the monitoring authorities, apply, with the same legal effect, to the Parties. " 
 
Response from Switzerland  
 
 When referring to private utility providers on page 35, paragraph 4.15, the parties to the 
agreement ensure reciprocal access to procurement by the private entities operating on the basis of 
exclusive or special rights granted by a competent authority and in the area of drinking water, 
energy/electricity, airpo rts, ports, railways, and urban and cable transport.  
 
 In the case of Switzerland, an example could be architectural services for the construction of 
a terminal for a private airport, which operates on the basis of special or exclusive rights.  
 
Questions from Mexico  
 
Provisions on Trade in Goods  
 
Tariff rate quotas  
 
1.4.  Paragraph 3.24: The incorporated provisions on TRQs are silent on the method to be 
applied by the Parties to administer their commitments. However, Article 8 of the 
incorporated AA establishes  that the Parties shall exchange all relevant information 
regarding the implementation and application of the incorporated AA.  
 Could the Parties please explain how TRQs will be administered?  
 
Response from the United Kingdom  
 
 The vast majority of the TRQs made available to Switzerland by the UK under the agreement 
will be administered on a first -come first -served (FCFS) basis.  The others will be administered using 
a licence system.  
 
 
 WT/REG437/2  
 
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   Guidance on quota administration can be accessed through the UK government 's website at 
CLAIMING TARIFF QUOTAS TO REDUCE IMPORT DUTIES - GOV.UK (WWW.GOV.UK)  for 
FCFS quotas, and at  NOTICE TO TRADERS - GOV.UK (WWW.GOV.UK)  and NOTICE 40/20 - 
CHANGES TO LICENCES MANAGED BY WTO AND PREFERENTIAL IMPORT TARIFF RATE 
QUOTAS IN THE UK FROM 1 JANUARY 2021 - GOV.UK (WWW.GOV.UK)  for quotas 
administered through licenses.  
 
Bilateral safeguar ds 
 
1.5.  Paragraph 3.59: Article 24 of the incorporated FTA addresses the situation when an 
increase in imports of a product originating in a Party is, or is likely to be, seriously 
detrimental to any production activity carried on in the other Party and where this 
increase is due to the implementation of the tariff elimination programme and that 
customs duties levied by the exporting Party on raw materials or intermediate products 
used in the manufacture of the product in question are significantly lower than t he 
corresponding duties or charges levied by the importing Party. Safeguard measures could 
also be taken if serious disturbances arise in any sector of the economy of a Party or if 
difficulties arise which could bring about serious deterioration in the eco nomic situation 
of a region. In that case, the Party concerned may also eventually take appropriate 
measures under the conditions and in accordance with the procedures laid down in 
Article  27 of the incorporated FTA. […]  
a. Could the Parties please explain in  what way a production activity could suffer 
serious detriment? What factors would be taken into account when conducting 
the relevant analysis? Might there be a case in which domestic producers do not 
suffer serious injury, but the production activity does ? If so, could the Parties 
explain how this would occur?  
b. Could the Parties explain whether there is any percentage threshold, or other 
type of threshold, to define whether the customs duties levied by the exporting 
Party are "significantly lower" than the corresponding duties or charges levied 
by the importing Party?  
c. Could the Parties also explain what is meant by "serious disturbances" and 
provide an example?  
d. In addition, could the Parties explain, in general terms, which variables are taken 
into consideration to determine the existence of "serious disturbances"?  
Joint response from the Parties  
 
 The incorporated FTA replicates the trade remedies provisions in the EU -Switzerland FTA 
agreed in 1972.   
 
 In its 50 years of existence, the Joint Commit tee under the EU -Switzerland FTA never 
examined difficulties arising from the situation referred to in that Article 24, so there is no established 
practice concerning these provisions.  
 
 Switzerland and the UK intend to enhance their bilateral trade relat ions and are pursuing a 
modernised and enhanced trade agreement, as mentioned in the Joint Statement signed in London 
on 28 April 2022. Trade Remedies are specifically listed as an area to be considered in such a 
modernisation process (Article 8 of the Swi tzerland -UK Trade Agreement).  
 
Countervailing measures  
 
1.6.  Paragraph 3.63: The Agreement does not contain any specific provisions related to 
countervailing measures. However, Article 27 of the incorporated FTA provides for 
safeguard measures to deal with trad e distorting public subsidies that are deemed 
incompatible with the proper functioning of the incorporated FTA under Article 23 of the 
incorporated FTA.  WT/REG437/2  
 
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   Could the Parties please indicate whether the Joint Committee referred to in 
Article  7 of the incorpor ated FTA has any procedure to determine whether a particular 
practice is incompatible with the proper functioning of the Agreement and, if so, explain 
what this procedure entails and which variables would generally be taken into account?  
 
Joint response from the Parties  
 
 Paragraph 2 of Article 23 of the incorporated FTA provides for any Party to take appropriate 
unilateral measures under the conditions and in accordance with the procedures laid down in 
Article  27. The provision regulates "public  aid" similar to the EU state aid provisions (EU primary 
law). The incorporated FTA does not create a common institution responsible for the monitoring of 
"public aid ". Monitoring is done on an autonomous basis by both parties independently.  
 
 Article 27 f ormulates some obligations of the Parties to provide the Joint Committee with all 
relevant information and to give it the assistance it requires in order to examine the case. Apart 
from Article 27, the examination of the case by the Joint Committee is not regulated further in the 
Agreement. The Joint Committee acts by mutual agreement (Article 30 Paragraph 2), therefore any 
binding outcome of such examination would need to be approved by all Parties.  
 
Question from the United S tates1 
 
Labour  
 
1.7.  Paragraph 4.2 5 states "there is no specific provision concerning labour in the 
Agreement. However, it is identified as an area for exploratory discussions between the 
Parties with the aim of replacing, modernising or developing the Agreement (Article 8 of 
the Agreement )." 
 Could the Parties please elaborate on the timing of these exploratory discussions?  
Also, how does "replacing, modernizing ad developing the Agreement" translate into 
protection for workers in this trade agreement?  
Joint response from the Parties  
 
 As part of preparations for negotiations, we look forward to discussions with Swiss 
counterparts to discuss our ambitions for an enhanced FTA. We expect exploratory discussions to 
take place this autumn.  
 
__________  
 
1 Question w as submitted to the Parties on 29 August  2022 (three  week s, three  days before 
the meeting).