RESTRICTED  
  
WT/TPR/S/280  
19 March 2013  
(13-1452)  Page: 1/167  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
SWITZERLAND AND LIECHTENSTEIN  
This report, prepared for the fourth joint Trade Po licy 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 Polic y 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 Jacques Degbelo 
(tel: 022 739 5583), Thomas Friedheim (tel: 022 739 5083), Pierre Latrille (tel: 022 739 5266), 
and Mena Hassan (tel: 022 739 6522).  
Document WT/TPR/G/280 contains the policy statements submitted by Switzerland and 
Liechtenstein.  
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Revi ew Body on Switzerland and Liechtenstein. This 
report was drafted in English. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
1   ECONOMIC ENVIRONMENT ........................................................................................ 12  
1.1   Economic  Environment .............................................................................................. 12 
1.1.1   Major features  of the ec onomies .............................................................................. 12 
1.2   Recent Econ omic Developments.................................................................................. 15 
1.3   Developments in Trade and In vestment ....................................................................... 16 
1.3.1   Trade in g oods and se rvices .................................................................................... 18 
1.3.1.1   Sw itzerland ........................................................................................................ 18 
1.3.1.2   Li echtenst ein ...................................................................................................... 21 
1.3.2   In vestme nt ........................................................................................................... 22 
2   TRADE AND INVESTMENT REGIMES ........................................................................... 26  
2.1   Genera l Framework .................................................................................................. 26 
2.2   Trade Agreements and Arrangements .......................................................................... 29 
2.2.1   WTO ................................................................................................................... . 29 
2.2.2   Regional agreements .............................................................................................. 29 
2.2.2.1   European Free Trade Association (EFTA) ................................................................. 30 
2.2.2.2   Agreement on the Eu ropean Economic  Area (EEA) ................................................... 31 
2.2.2.3   Bilateral agreements ........................................................................................... 32 
2.2.2.4   Non-reciprocal pr eferential arrangements ............................................................... 33 
2.2.3   Invest ment regime ................................................................................................ 34 
2.2.3.1   Sw itzerland ........................................................................................................ 34 
2.2.3.2   Li echtenst ein ...................................................................................................... 36 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 39  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 39 
3.1.1   Customs procedures  and trade fa cilitation ................................................................. 39 
3.1.2   Customs valuatio n and rules of origin ....................................................................... 40 
3.1.2.1   Customs valuation ............................................................................................... 40 
3.1.2.2   Rule s of or igin .................................................................................................... 41 
3.1.3   Tariffs ............................................................................................................... ... 41 
3.1.3.1   Gene ral features ................................................................................................. 41 
3.1.3.2   Applied MFN tariff ............................................................................................... 42 
3.1.3.3   Tariff preferences ................................................................................................ 45 
3.1.4   Other charge s affecting imports ............................................................................... 47 
3.1.5   Import prohibit ions and rest rictions .......................................................................... 49 
3.1.6   Import  licensing .................................................................................................... 49 
3.1.7   Compulsory  reserve stock ....................................................................................... 50 
3.1.8   Local-content and lo cal-purchase re quirements .......................................................... 50 
3.1.9   Continge ncy measures ........................................................................................... 51 
3.1.10   Governme nt procurement ..................................................................................... 51 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.2   Measures Directly Affecting Exports ............................................................................. 54 
3.2.1   Procedures ........................................................................................................... 54 
3.2.2   Export taxes, charges, an d levies ............................................................................. 54 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 54 
3.2.4   Duty and tax concessions ........................................................................................ 54 
3.2.5   Export subsidies .................................................................................................... 55 
3.2.6   Export promotion ................................................................................................... 55 
3.2.7   Export insura nce and guar antees ............................................................................. 55 
3.3   Measures Affectin g Production and Trade ..................................................................... 55 
3.3.1   Incentives an d other assi stance ............................................................................... 55 
3.3.2   Standards and othe r technical requirements .............................................................. 59 
3.3.2.1   Overview ........................................................................................................... 59 
3.3.2.2   Technical regulations ........................................................................................... 59 
3.3.2.3   Conformity assessment procedures ........................................................................ 61 
3.3.2.4   Standards .......................................................................................................... 61 
3.3.2.5   Labelling ............................................................................................................ 61 
3.3.3   Sanitary and ph ytosanitary measures ....................................................................... 62 
3.3.3.1   Overview ........................................................................................................... 62 
3.3.3.2   F ood safe ty ........................................................................................................ 62 
3.3.3.3   Veteri nary meas ures ........................................................................................... 63 
3.3.3.4   Phytosan itary measures ....................................................................................... 63 
3.3.4   State-trading and state-owned en terprises ................................................................ 64 
3.3.4.1   Overview ........................................................................................................... 64 
3.3.4.2   St ate trad ing ...................................................................................................... 64 
3.3.4.3   State-owned enterprises ...................................................................................... 65 
3.3.5   Competition policy and price controls ........................................................................ 66 
3.3.5.1   Sw itzerland ........................................................................................................ 66 
3.3.5.1.1   Overview ........................................................................................................ 66 
3.3.5.1.2   Legal and in stitutional framew ork ....................................................................... 66 
3.3.5.1.3   Enforcem ent .................................................................................................... 68 
3.3.5.1.4   Price supervision .............................................................................................. 69 
3.3.5.2   Li echtenst ein ...................................................................................................... 69 
3.3.6   Trade-related intellectual property rights ................................................................... 70 
3.3.6.1   Overview ........................................................................................................... 70 
3.3.6.2   Patents .............................................................................................................. 72 
3.3.6.3   Plan t varieties .................................................................................................... 73 
3.3.6.4   Trade marks ....................................................................................................... 74 
3.3.6.5   Geograph ical indications ...................................................................................... 74 
3.3.6.6   Indust rial designs................................................................................................ 75 
3.3.6.7   Copyright and related rights ................................................................................. 75 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.3.6.8   Layout-designs (topographies) of integrated circuits ................................................. 76 
3.3.6.9   Undisclos ed information ....................................................................................... 76 
3.3.6.10   Enforcement ..................................................................................................... 76 
4   TRADE POLICIES BY SECTOR ..................................................................................... 77  
4.1   Agriculture ............................................................................................................. . 77 
4.1.1   Border  measures ................................................................................................... 77 
4.1.2   Domestic support ................................................................................................... 78 
4.1.3   Export subsidies .................................................................................................... 82 
4.1.4   Evolutio n of support ............................................................................................... 83 
4.1.5   Developments in sele cted agricultur al markets ........................................................... 84 
4.1.5.1   Milk and dairy products ........................................................................................ 84 
4.1.5.2   Meat and live stock .............................................................................................. 85 
4.1.5.3   Grains  and oilseeds ............................................................................................. 85 
4.1.5.4   Fruit and vegetables ............................................................................................ 86 
4.1.5.5   Potatoes ............................................................................................................  87 
4.1.5.6   Sugar ............................................................................................................... . 88 
4.2   Energy .................................................................................................................. .. 88 
4.2.1   Overview ..............................................................................................................  88 
4.2.2   El ectricity ........................................................................................................... .. 88 
4.2.2.1   Sw itzerland ........................................................................................................ 88 
4.2.2.2   Li echtenst ein ...................................................................................................... 90 
4.2.3   Na tural gas ...........................................................................................................  90 
4.2.3.1   Sw itzerland ........................................................................................................ 90 
4.2.3.2   Li echtenst ein ...................................................................................................... 91 
4.2.4   Oil and refined products .......................................................................................... 91 
4.3   Manuf acturi ng .......................................................................................................... 92 
4.3.1   Features ............................................................................................................... 92 
4.3.2   Key subsectors ...................................................................................................... 93 
4.3.2.1   Textiles and clothing ............................................................................................ 93 
4.3.2.2   Chemical and pharmaceutical products ................................................................... 93 
4.3.2.3   Machinery and equipment .................................................................................... 93 
4.4   Services ................................................................................................................ .. 94 
4.4.1   Banking, finance, and insurance ............................................................................... 94 
4.4.1.1   Sw itzerland ........................................................................................................ 94 
4.4.1.2   Liec htenstei n .................................................................................................... 10 1 
4.4.2   Telecommunications ............................................................................................. 106  
4.4.2.1   Sw itzerlan d ...................................................................................................... 10 6 
4.4.2.2   Liec htenstei n .................................................................................................... 10 9 
4.4.3   Transport ........................................................................................................... 1 11 
4.4.3.1   Sw itzerlan d ...................................................................................................... 11 1 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.4.3.1.1   Ai r transport .................................................................................................. 11 1 
4.4.3.1.2   Inla nd transp ort ............................................................................................. 117  
4.4.3.1.2.1   Ro ad transp ort ............................................................................................ 117  
4.4.3.1.2.2   Ra il transp ort .............................................................................................. 119  
4.4.3.2   Liec htenstei n .................................................................................................... 12 1 
4.4.3.2.1   Road freight and passenger transport services .................................................... 121  
4.4.3.2.2   Rail transport services ..................................................................................... 121  
4.4.3.2.3   Air tran sport serv ices ...................................................................................... 122  
4.4.4   Other .................................................................................................................  122 
4.4.4.1   Postal services .................................................................................................. 122  
4.4.4.2   Dist ribution ...................................................................................................... 1 23 
4.4.4.3   Tourism ........................................................................................................... 1 25 
4.4.4.3.1   Switzerland ................................................................................................... 125  
4.4.4.3.2   Liechtenstein ................................................................................................. 126  
REFERENC ES ................................................................................................................ 127  
5   APPENDIX TABLES .................................................................................................. 129  
 
CHARTS 
 Chart 1.1 Composition of merc handise trade, 2008 and 2011 ................................................. 19
 
Chart 1.2 Direction of merchandise trade, 2008 and 2011 ...................................................... 20 
Chart 2.1 Preference utilization by deve loping countries und er the Swiss GSP ........................... 34 
Chart 3.1 Customs revenue distribution, 2011 ...................................................................... 40 
Chart 3.2 Breakdown of applied MFN tariffs, 2012 ................................................................. 43 
Chart 4.1 Level and composition of support to agricultural producers ....................................... 83 
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2008- 11 ......................................................... 13 
Table 1.2 Balance of payments, 2007-11 ............................................................................. 17 
Table 1.3 Liechtenstein's direct  imports and ex ports, 2007-11 ................................................ 22 
Table 1.4 Foreign direct  investment, 2008-11 ...................................................................... 23 
Table 2.1 Main trade-related la ws and regulati ons, 2012 ....................................................... 26 
Table 2.2 Selected sectoral trade poli cy objectives for Switzerlan d, 2011 ................................. 28 
Table 2.3 Agreements signed/under negotiation under EFTA - RTAs under Early 
Announcemen t, 2012  ....................................................................................................... 31 
Table 2.4 Overview of main legal fo rms of companies in Switzerland ....................................... 35 
Table 2.5 Liechtenstein corporate taxe s and other select ed taxes,  2012 ................................... 37 
Table 3.1 Tariff quotas, by trade re gime, 2012 ..................................................................... 42 
Table 3.2 Structure of MFN ta riffs, 2012 .............................................................................. 44 
Table 3.3 Summary of tariff analysis, 2012 .......................................................................... 44 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table 3.4 Tariffs under preferential agreements, 2012 ........................................................... 46 
Table 3.5 Selected products subjec t to import proh ibitions , 2012  ............................................ 49 
Table 3.6 Government procur ement in Liec htenstein ............................................................. 54 
Table 3.7 Federal a ssistance, 2007-11  ................................................................................ 57 
Table 3.8 Switzerland: Applications for trademarks, industrial designs, and patents, and 
patents granted, 2008-11 ................................................................................................. 71 
Table 3.9 Liechtenstein: Applications for trad emarks, industrial designs, and patents, and 
patents granted, 2008-11 ................................................................................................. 71 
Table 4.1 Agricultural tariff reduction initia tives, 2008-12  ...................................................... 77 
Table 4.2 Market support and direct paymen ts, 2007-11 ....................................................... 79 
Table 4.3 Switzerland's direct payment system, 2009-11 ....................................................... 79 
Table 4.4 Liechtenstein's direct paym ents, 2010-11 .............................................................. 82 
Table 4.5 Variable tariff mechanisms for feedgrains, oilseeds, and bread cereals ....................... 86 
Table 4.6 Area-based cr op premiums , 2009- 11 .................................................................... 86 
Table 4.7 Telecom tariffs, 2009 -11 ................................................................................... 108  
Table 4.8 Mobile roaming rate s (wholesale an d retail)  ......................................................... 109  
Table 4.9 Air servic es agreements .................................................................................... 113  
Table 4.10 Road – Breakdown of ECMT basic licences by vehicle environmental category, 
2010  ......................................................................................................................... . 119 
Table 4.11 Main network-owning rail way companies in Switzerland ....................................... 120  
Table 4.12 Railway law ................................................................................................... 121  
 
BOXES 
 
Box 2.1 Liechtenstein's Market Cont rol and Surveillan ce Mech anism ........................................ 31 
Box 3.1 Switzerland introduces the Cassis de Dijon  principle .................................................. 60 
Box 4.1 Swiss Agricult ural Polic y 2014-17  ........................................................................... 81 
Box 4.2 Financial services: statistical overview ..................................................................... 94 
Box 4.3 Switzerland's regulatory framework for banking ........................................................ 96 
Box 4.4 Switzerland's regulatory framework for insurance, 2012 ............................................. 98 
Box 4.5 Switzerland's regulatory framework for pension funds, 2012 ....................................... 99 
Box 4.6 Switzerland's regulatory framework for mutual funds, 2012 ...................................... 100  
Box 4.7 Switzerland's market and regulatory regime for securities and stock exchanges, 
2012  ......................................................................................................................... . 100 
Box 4.8 Financial services: statistical overview ................................................................... 101  
Box 4.9 Liechtenstein's regulatory fr amework for banking services, 2012 ............................... 102  
Box 4.10 Regulatory framework for investment undertakings, asset management 
companies, and payment services pr oviders ...................................................................... 103  
Box 4.11 Liechtenstein's regulatory framework for insurance services, 2012 ........................... 104  
Box 4.12 Liechtenstein's regulatory framework for pension funds and health insurance 
2012  ......................................................................................................................... . 105 
Box 4.13 Market structure and regulatory fr amework of Switzerland's telecommunications 
sector, 2012 ................................................................................................................. 106 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Box 4.14 Market structure and regulatory of  Liechtenstein's telecommunications sector, 
2012  ......................................................................................................................... . 109 
Box 4.15 Switzerland's market and regulatory regime for air transport subsectors, 2012 .......... 112  
Box 4.16 Main economic indicators of inland surface transport .............................................. 117  
Box 4.17 Main economic indicators of road transport ........................................................... 118  
Box 4.18 Switzerland's road  transport fr amework ............................................................... 118  
Box 4.19 Market structure and regulatory fram ework of Switzerland's postal subsector, 
2012  ......................................................................................................................... . 122 
Box 4.20 Switzerland's market and regulatory framework for distribution services, 2012 .......... 124  
Box 4.21 Switzerland's market indicators and regulatory framew ork for tourism ..................... 125  
 
APPENDIX TABLES 
 Table A1. 1 Structure of imports, 2008-11 ......................................................................... 129
 
Table A1. 2 Structure of  exports, 2008-11 ......................................................................... 131  
Table A1. 3 Origin of  imports, 2008-11 ............................................................................. 133  
Table A1. 4 Destinations of exports, 2008-11 ..................................................................... 134  
 
 Table A2. 1 Most recent notifications made by Switzerland to the WTO, December 2012 .......... 135
 
Table A2. 2 Most recent notifications made by Liechtenstein to the WTO, December 2012 ........ 137  
Table A2. 3 Participation in EFTA free- trade agreements, No vember 2012 .............................. 139  
Table A2. 4 Overview of legal forms of companies in Liechtenstein ........................................ 141  
 
 
Table A3. 1 State-owned enterprises and exclusive arra ngements, 2012 ................................ 143  
 
 
Table A4. 1 Administration of tariff quot as, 2012  ................................................................ 145  
Table A4. 2 Tariff  quotas, 2012 ........................................................................................ 146  
Table A4. 3 Summarized trade regi mes on financial services ................................................ 147  
Table A4. 4 Summarized trade regime s on air transpor t services .......................................... 151  
Table A4. 5 Summarized trade regimes on road transpor t services ........................................ 155  
Table A4. 6 Summarized trade regimes on selected railways transport services and related 
construction services ...................................................................................................... 15 9 
Table A4. 7 Summarized trade regimes on  postal and cour ier services ................................... 161  
Table A4. 8 Summarized trade regimes for distribution services ............................................ 163  
Table A4. 9 Summarized trade regimes on tourism and travel related services ........................ 166  
 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  SUMMARY 
1. Switzerland and Liechtenstein have introduced no major changes to their trade regimes 
since their last joint TPR in 2008. Their trade regimes remain generally liberal, except in agriculture, which is still highly protected by tariff and non-tariff measures.   
2. Switzerland and Liechtenstein are among the wealthiest countries in the world. Their 
economies have recovered well from the global economic crisis. Thanks to its "debt break" rule and substantial fiscal surpluses accumulated at the federal level prior to the crisis, Switzerland 
implemented economic stabilization measures in 2009/10, mainly infrastructure spending and 
labour market measures. Thus, unemployment has been kept in check at about 3-4%. However, a decline in labour productivity in recent years is cause for concern. Liechtenstein's economic performance has been a magnet for foreigners, which represent about two thirds of the 
Liechtenstein workforce.  
3. Trade is an important driving force of the Sw iss and Liechtenstein economies, with the GDP 
shares of trade in goods and services exceed ing 100%. Given their degree of dependence on 
trade, both countries remain exposed to develo pments in global demand. The main economic 
challenge for the two economies has been the strong appreciation of the Swiss franc (due to its safe haven status), which has been threatening to undermine competitiveness. In 
September 2011, the Swiss National Bank decided to contain the appreciation of the Swiss franc 
by setting a minimum exchange rate of SwF 1.20 per euro and committing to unlimited purchases of foreign currencies, if needed. Liechtenstein uses the Swiss franc as its national currency.  
4. Switzerland and Liechtenstein remain high-price "islands" in Europe for a number of reasons, 
such as the strong Swiss franc and relatively high incomes, but also because of the high level of 
protection in agriculture, technical barriers to trade, and limited competition in various industries. One of the key policy objectives is improving competition in the domestic market. While a number 
of initiatives (e.g. Switzerland's adoption of the "Cassis de Dijon principle") were taken during the 
review period to stimulate competition and counter  the high prices, overall more effective steps 
are needed to address the competitive challenges facing the economies, in particular in 
agriculture. 
5. Switzerland and Liechtenstein remain staunch supporters of the multilateral trading system. 
Faced with the current impasse of the DDA negotiations and a difficult economic environment, Switzerland and Liechtenstein have extended their network of free-trade agreements to help 
improve access to foreign markets. This trend makes their trade regimes increasingly complex. 
Since their last Review, eight new FTAs concluded under EFTA (Switzerland, Liechtenstein, Iceland, and Norway) have entered into force (with Albania; Canada; Colombia; Hong Kong, China; 
Montenegro; Peru; Serbia; and Ukraine). In addi tion, a bilateral FTA between Switzerland and 
Japan entered into force in 2009. Overall, Switzerland has 26 FTAs with 35 trading partners, besides the EU. Switzerland and the EU have deepen ed their trade relations since, notably in the 
area of customs procedures and mutual recogn ition of conformity. Under the 1924 Customs Union 
Treaty, Switzerland acts on behalf of Liechtenstein in Customs Union matters, such as trade policy measures affecting imports, and agricultural poli cy. All trade agreements concluded by Switzerland 
also apply to Liechtenstein. 
6. Switzerland's investment regime is generally open to foreigners. However, investment 
restrictions continue to apply to areas under state monopoly, including certain postal, insurance, and rail transport services. Restrictions in the form of domicile requirements are also applied in 
certain sectors, including air transport. Swit zerland provides a number of tax and non-tax 
incentives at federal and cantonal level. Most non-tax assistance, including direct payments, is accorded to the agriculture sector. 
7. Liechtenstein, too, has a generally open investment regime. Investment restrictions apply in 
public utilities, as well as to a number of financial services (asset management, investment consulting, and trusteeships). Furthermore, residency requirements apply. Following the Liechtenstein Declaration of 2009, in which th e Government expressed its commitment to 
implement global standards of transparency and exchange of information developed by the OECD, 
Liechtenstein has taken steps to reform its domestic and international tax policies, including the adoption of a new tax regime in 2011. As a member of the European Economic Area (EEA), WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Liechtenstein benefits from the "four freedoms" of circulation (goods, services, capital, and 
persons) in the markets of the EU, Iceland, and Norway.   
8. The structure of the applied MFN tariff of th e Switzerland-Liechtenstein Customs Union has 
changed little since the last TPR. All tariffs remain specific; the corresponding ad valorem  
equivalents range from zero to 1,676%. The simple average MFN rate increased from 8.1% in 
2008 to 9.2% in 2012, which reflects in part the a ppreciation of the Swiss franc. Tariff protection 
varies substantially across and within sectors, averaging 31.9% for agricultural products and 2.3% 
for non-agricultural goods (WTO definition), with some international tariff peaks on products such 
as textiles and clothing. MFN duty-free treatment applies to almost 20% of all tariff lines, mainly agricultural products not produced domestically, fish, petroleum, certain chemicals, base metals, 
as well as products granted duty-free treatment under the Pharmaceutical Initiative, the 
Information Technology Agreement, and the Pluril ateral Agreement on Trade in Civil Aircraft. 
Almost 40% of tariff lines carry non-zero rates of less than 2% (nuisance rates).  
9. The preferential agreements concluded by Swit zerland-Liechtenstein provide for free trade in 
most non-agricultural products, subject to certificates of origin. For agricultural products, 
preferential access is provided mainly through bilateral tariff quotas. Least developed countries benefit from substantial and enhanced tariff preferences in the Customs Union: all agricultural and 
non-agricultural products are entitled to duty-free and quota-free treatment, including rice and 
sugar. Switzerland's GSP rules of origin were harmonized with the EU's in 2011. 
10. Switzerland and Liechtenstein maintain import prohibitions and export controls on certain 
products for health, safety, security or environmental reasons, and to ensure compliance with 
international obligations. The automatic and non-automatic licensing procedures remain 
substantially unchanged. An automatic licence (general import permit) applies to some products covered by compulsory reserve stock schemes (certain fuels and foodstuffs) or import threshold 
prices. Non-automatic licensing is applied mainly for tariff-quota management purposes. Under a 
Swiss-EU bilateral agreement in force since 2011, operators from non-EU countries are required to provide a prior notification and go through securi ty-risk analysis. To help ease the burden of 
security-related customs procedures, Switzerland ha s introduced an authorized economic operator 
scheme that is open to accredited operators.  
11. Switzerland has taken steps towards reducing technical barriers to trade and enhancing 
import competition in the domestic market. In 2010, Switzerland unilaterally introduced the 
"Cassis de Dijon principle" for certain products. Together with the MRA on conformity assessment 
between Switzerland and the EU, the Cassis de Di jon principle ensures that products that are 
lawfully marketed in the EU or EEA may, in princi ple, be put on the market in Switzerland without 
further checks regarding their technical requirements. Exports from the broader WTO membership 
to Switzerland may benefit too, provided the products meet EU/EEA technical requirements. 
However, some of the potential gains from trade are lost because the Cassis de Dijon principle is 
not applicable to certain products (e.g. animal feed, pharmaceuticals or certain chemicals), and 
food imports are subject to special approval procedures. 
12. As a consequence of Liechtenstein's EEA membership since 1 May 1995, and because of the 
Customs Union with Switzerland, Liechtenstein has to ensure in its territory the "parallel 
marketability" of goods under Swiss and EEA rules.  To this end, Liechtenstein maintains a Market 
Control and Surveillance Mechanism, which applies to imports on which customs tariffs (e.g. fish) or non-tariff requirements (e.g. pharmaceuticals,  some telecom equipment, salt) differ between 
the EEA and Switzerland. The mechanism is design ed to prevent goods that do not satisfy Swiss 
import requirements from entering the Swiss market via the open border.  
13. No specific trade concerns have been raised in the TBT and SPS Committees since 2008 
regarding Switzerland's measures. Liechtenstein applies Switzerland's TBT and SPS measures 
under the Customs Union Treaty. Approximately 95% of the 23,080 standards currently in force in Switzerland (unchanged since 2008) are aligned with international or European standards. There have been no major changes to the SPS regime, alth ough a reform of the Swiss food safety regime 
is under way to further align its requirements with the EU's. The moratorium on approvals for the 
cultivation of bio-technology crops has been extended. The Swiss veterinary and phytosanitary regimes have been fully harmonized with the EU's since the last TPR.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  14. Switzerland and Liechtenstein do not have any specific anti-dumping, countervailing or 
safeguards legislation, and do not apply such measures. They maintain no export taxes, charges or levies. In response to the global economic crisis, Switzerland has introduced new export insurance and guarantee schemes to help improve export competitiveness and ease liquidity problems. 
15. The Swiss competition regime remains substantially unchanged. A number of policy 
recommendations by a task force on competition are under consideration by the Government, aimed at better aligning the Swiss competition framework with international best practices. With 
regard to state trading, the Swiss Confederation continues to exercise a statutory monopoly over 
imports of alcohol, though the exclusive import rights have been lifted for bio-ethanol used as fuel. A comprehensive overhaul of the legal and institutional framework governing the alcohol industry is under way, involving the termination of the State's import monopoly. Switzerland and 
Liechtenstein have their own regimes on government procurement and both countries are 
signatories of the revised Agreement on Government Procurement. 
16. The main development in the area of intellectual property is Switzerland's unilateral decision 
to introduce the EEA-wide exhaustion principle for patent inventions (products and processes). 
Accordingly, patent owners cannot prevent the parallel importation of their patented products put on the market of EEA members by themselves or wi th their consent. Imports of products for which 
prices are fixed by the State, in Switzerland or abroad, require the patent owners' consent, 
meaning that national exhaustion continues to apply in this situation. This specifically affects pharmaceutical products. 
17. Both Switzerland and Liechtenstein have a strong, export-oriented industrial base. 
Switzerland has a policy to support research and improve framework conditions for all economic 
sectors but it does not adhere to a policy of national champions. There are no cash subsidies in place to specific manufacturing industries other than measures open to all companies.  
18. The electricity sector is in transition from a monopolistic electricity supply system towards a 
more competitive regime. Since 2009, large end-users may purchase electricity on the free market. To make competition work, the transmission  and distribution networks have been opened 
for non-discriminatory third-party access. The Swiss gas market has also been partially opened to 
competition, allowing large customers to make direct imports. The Swiss Government has recently proposed a major change of direction of energy po licy (Energy Strategy 2050) with supply security 
to be achieved without nuclear energy in the medium-term. 
19. Switzerland is one the most important financial service centre in the world, attracting large 
volumes of foreign business. No changes were made to market access conditions during the period under review, except for the signature of four re gional trade agreements containing preferential 
services commitments. However, two main regulato ry changes have intervened: the reinforcement 
of prudential regulations, following the financial crisis and the adoption of the Basel III principles; 
and a notable change in the international fiscal policy, i.e. the lifting of the Swiss reservation to 
the OECD model tax convention on income and ca pital regarding exchange of information on tax 
matters. Switzerland is now progressively adapting its bilateral network of agreements to this new 
setting. A preliminary reflection on the ways to increase the transparency of the Over The Counter (OTC) derivative market has also been initiated.  Liechtenstein is a much smaller and specialized 
financial services centre.  
20. The telecommunications and the distribution sect ors are both devoid of market and national 
treatment restriction in the GATS sense, but th ey remain concentrated by their nature and 
because of the relatively small size of the market. The postal sector has been liberalized in a 
manner following broadly the EU internal liberalization process. Transport policy is largely tied to the European context in view of Switzerland’s central geographical position and its bilateral 
agreements on air transport and on land transpor t with the European Union. Reforms are ongoing 
to liberalize further the railways sector. Switzerland is pursuing a policy of construction of cross-alpine transit infrastructure and of inte rmodal transfer between road and rail through a 
specific tax. Tourism is open but has suffered fr om the strong Swiss franc and is being promoted 
at the high end of the spectrum. 
21. From a trade policy perspective, agriculture remains the "Achilles heel" of the Swiss and 
Liechtenstein economies, despite its marginal contribution to GDP and employment. A few tariff WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  reduction initiatives have been carried out since the last TPR, but overall the high level of import 
protection in agriculture has been left largely untouched. Meat and dairy products, the backbone of Swiss-Liechtenstein agriculture, are the most tariff-protected products, with averages over 100% and peaks of up to 1,676%. The tariff-quota sy stem remains highly complex with the 28 WTO 
tariff quotas being divided into 58 sub-quotas an d aggregated with 80 bilateral preferential-tariff 
quotas. The Swiss milk-quota system was abolished in 2009, but surplus problems persist. A surplus removal campaign (compulsory milk levy) has drawn criticism from WTO Members. Export 
subsidies for basic agricultural products were eliminated in 2009, but remain in place for certain 
dairy products, flour, and other milled products that are incorporated into food products. These 
export subsidies partially compensate food manufacturers, for instance Swiss chocolate makers, for the high-tariff handicap of using certain domestic agricultural raw materials.   
22. A new Agricultural Policy 2014-17 is currently pending before the Swiss Parliament. The core 
of the new policy is a re-arrangement and fine-tuning of the direct payments scheme (averaging SwF 50,000 per farmer) to improve its effectiveness and address conflicts with WTO Green Box 
criteria. While Switzerland's agricultural policy has been heading generally in the right direction, 
Swiss support and protection for agriculture is still almost three times the OECD average. The 
process of market-oriented reforms needs to be faster.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Economic Environment 1.1.1  Major features of the economies 1.1.  Landlocked countries in the heart of Europe, Switzerland and Liechtenstein have formed a 
customs and monetary union that has contributed to  the high integration of their economies, with 
the former acting on behalf of the latter in monetary, agricultural, and much of trade (in goods) policies (Chapter 2). This partially explains some of the similarities in their economic strategies, 
including in areas such as manufacturing and services. Both countries are highly dependent on 
external trade (exports and imports) in goods and services, which represents almost 100% of GDP.  
1.2.  Switzerland and Liechtenstein are among the wealthiest countries in the world. In terms of 
gross national income (GNI) per capita, the World Bank ranked Switzerland seventh (US$70,350) 
and Liechtenstein second (US$136,540) in the world in 2011
1, with territory of 41,285 km2 and 
160 km2, and populations of 7.9 million and 36,3002, respectively. Switzerland ranked top in 
overall global competitiveness in 2012, for the fourth consecutive year.3 
1.3.  Services and manufacturing are the main se ctors of the Swiss and Liechtenstein economies, 
with manufacturing largely specialized in high-technology/knowledge-based (i.e. capital-intensive) 
products, and driven by, inter alia , research and development (R&D). As a result, the demand for 
their products, notably pharmaceutical products and precision instruments, is relatively price 
inelastic in general, and their exports have been qu ite resilient to the global crisis (section 1.3). 
Nonetheless, manufacturing is less important for Switzerland at around 25% of GDP (Table 1.1) 
and around one fifth of total employment, than for Liechtenstein (39% of GDP and 41% of employment in 2010
4). 
1.4.  The services sector is the main employer  in both Switzerland (close to 72% of total 
employment) and Liechtenstein (56%); it contributes some 68% of GDP in Switzerland 
(Table 1.1), and 55% in Liechtenstein.5 Both are net exporters of services. Financial services 
represent an important branch of the sector and make a significant contribution to GDP in both countries. The worldwide continued confidence in the Swiss franc, supported by, inter alia , sound 
macroeconomic (including monetary) policies, socio- political stability, and strengthened by global 
crises, has contributed to the development of the subsector. 
1.5.  The economic importance of agriculture remains marginal, at around 0.8% of real GDP and 
3.8% of total employment in Switzerland, an d 0.8% of total employment in Liechtenstein
6, despite 
high protection by various tariff and non-tariff  measures (Chapters 3 and 4); overall government 
support by Switzerland represents 2.8 time s the OECD average (Chapter 4.1.4). As a 
consequence, despite some reform efforts in the sector, domestic prices of agricultural and food 
products remain high by international comparison.  
                                               
1 Using Atlas methodology. Swiss GNI was ranked 14th at purchasing power parity (PPP); no data were 
available for Liechtenstein. 
2 Foreigners represented about 67% of Liechtenstein's workforce in 2011; almost half of the workforce 
lives abroad, mainly in neighbouring regions of Switze rland and Austria (Liechtenstein Office of Statistics. 
Viewed at: http://www.llv.li/pdf-llv-as-liechtenstein_in_figures_2012 ). 
3 World Economic Forum (2012).  
4 Liechtenstein Office of Statistics, "Liechtenstein in Figures, 2012". Viewed at: http://www.llv.li/pdf-llv-
as-liechtenstein_in_figures_2012 . 
5 CIA World Factbook online information. Viewed at: https://www.cia.gov/library/ publications/the-world-
factbook/geos/ls.html ; and "Economic and growth analysis for the Principality of Liechtenstein", 2012 
(Konjunktur- und Wachstumsa nalyse für das Fürstentum Liechtenstein). Viewed at: 
http://www.kofl.li/dok/publikationen/KOFL%20Konj unkturberricht/2012/KOFL%20Konjunkturbericht%202012.
pdf. 
6 Data on the share of agriculture in Liechtenstein's GDP are not available. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table 1.1 Selected macroeconomic indicators, 2008-11 
  Switzerlanda Liechtensteina 
Area (km2) 41,285 160 
Population ('000) 7,953 36 
GDP (US$ billion) 661.3 5.1b 
GNI per capita ("international" $) 50,900 .. 
  Switzerland 
  2008 2009 2010 2011 
Miscellaneous     
Nominal GDP in SwF billion 567.9 554.4 574.3 586.8 
Nominal GDP in US$ billion 524.3 510.9 551.4 661.3 
Real GDP growth rate (%, at 2005 prices) 2.2 -1.9 3.0 1.9 
GDP per capita at current price (US$)  68,079 65,614 70,062 83,161 
Inflation (CPI, %age change) 2.4 -0.5 0.7 0.2 
Unemployment rate (ILO-based), annual averages, % 3.4 4.3 4.5 4.0 
National accounts  (% of current GDP) 
Consumption, total 66.8 69.7 68.8 68.5 
   Personal consumption 56.5 58.5 57.8 57.4 
   Government consumption 10.4 11.2 11.0 11.1 
Gross private domestic investment 22.1 19.3 20.0 20.8 
   Fixed investment 21.3 19.9 20.0 20.4 
     Construction 8.6 9.0 9.1 9.3 
     Equipment and software 12.6 10.9 11.0 11.1 
   Changes in private inventories 0.6 -1.0 0.0 0.4 
   Net import of valuables 0.2 0.3 -0.1 0.0 
Balance of trade (goods and services) 11.1 11.0 11.2 10.8 
Exchange rate     
SwF/US$ (annual average) 1.1 1.1 1.0 0.9 
SwF/euro (annual average) 1.6 1.5 1.4 1.2 
Nominal effective exchange rate, 24 countries, export 
weighted January 1999=100)c 108.9 113.8 121.6 137.0 
Real effective exchange rate, 24 countries, export 
weighted, relative consumer prices January 1999=100) 98.8 102.3 108.2 119.0 
  (% of current GDP, unle ss otherwise indicated) 
General government financed     
Receipts 33.1 33.7 32.8 33.2 
Expenditure 31.3 33.2 32.7 32.9 
Overall fiscal balance 1.8 0.5 0.2 0.4 
   Confederation 0.9 0.4 0.3 0.1 
   Cantons 0.6 0.4 0.3 -0.2 
   Communes 0.1 -0.1 -0.1 -0.1 
   Social security funds 0.3 -0.2 -0.3 0.5 
Tax-to-GDP ratio     
   General Government 28.1 28.7 28.0 28.5 
   Confederation 10.5 10.4 10.2 10.3 
   Cantons 6.8 7.0 6.8 6.9 
   Communes 4.3 4.4 4.3 4.3 
   Social security funds 6.5 6.9 6.7 7.0 
Gross debt ratioe     
   General Government 39.2 37.7 36.3 35.0 
   Confederation 21.4 20.0 19.1 18.7 
   Cantons 9.9 9.5 9.1 8.5 
   Communes 7.9 8.2 8.0 7.7 
Saving and investment (% of GDP)f     
Gross national savings 23.3 30.3 34.3 34.6 
Gross national investment 21.2 19.3 19.2 19.8 
GDP by economic activity at constant 2005 prices      
Agriculture, forest ry and fishing  0.9 0.8 0.8 0.7 
Mining and quarrying 0.1 0.2 0.2 0.1 
Manufacturing 18.5 17.2 17.4 17.4 
Energy and water supply, waste management 2.1 2.1 2.0 1.9 
Construction 4.8 5.0 5.1 5.3 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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    Switzerland 
  2008 2009 2010 2011 
Services, of which: 68.2 69.3 69.1 69.1 
   Trade, repair of motor vehicles and motorcycles 15.9 15.2 16.0 15.6 
   Public administration 9.2 9.8 9.7 9.7 
   Transportation and storage; Information and 
communication 7.6 7.7 7.8 8.0 
   Real estate activities, professional, scientific and 
technical activities; Administrative support service 
activities 8.2 8.8 8.6 8.7 
   Financial service activities 7.2 6.7 6.2 5.9 
   Activities of Households as employers 6.2 6.6 6.6 6.8 
   Health and social work activities 5.6 6.0 5.9 6.0 
Taxes on products 6.2 6.2 6.1 6.1 
Subsidies 0.5 0.5 0.5 0.5 
External sector     
Current account, net 2.1 10.6 14.3 10.5 
   Goods, net 2.7 3.0 2.3 2.5 
     Special trade, netg 3.4 3.7 3.4 4.0 
        Receipts 36.3 32.6 33.7 33.7 
        Expenses -32.9 -28.9 -30.3 -29.7 
     Other trade, ne t -0.8 -0.7 -1.1 -1.6 
   Services, net 8.8 8.3 8.5 7.8 
Labour and investment income, net -6.9 1.7 5.6 2.3 
   Labour income, net -2.3 -2.5 -2.9 -3.2 
   Investment income, net -4.6 4.1 8.6 5.4 
Current transfers, net -2.5 -2.4 -2.2 -2.0 
Capital transfers, net -0.7 -0.7 -0.8 -0.2 
Financial account, net -1.6 -4.0 -18.5 -7.8 
Total reserves (includes gold, current US$ billion) 74.1 134.6 270.5 330.6 
   Total reserves in months of imports 2.3 5.0 8.7 8.6 
Total external debt (in SwF billion)h 1,333 1,298 1,230 .. 
.. Not available. 
a Data for 2011. 
b Data for 2010. 
c An increase means appreciation of the Swiss franc. d Estimates for communes and general government in 2011. e Reference to the Maastricht definition. f Projection for year 2010. g As of 2002, special trade has also included electrical energy. In addition, it covers processing of 
goods for foreign account, processi ng abroad for domestic account, and returned goods, all of which 
were included under other trade until 2001. 
h The external debt needs to be compared with Switzerland's total foreign assets of SwF 3,252 billion 
(with net foreign assets of SwF 817 billion) in 2011, taking into account the size of its banking system and its position as a large international investment centre. 
 Source: State Secretariat for Economic Affairs (SECO) onli ne information. Viewed at: 
http://www.seco.admin.ch/themen/00374/00456/00458/index.html?lang=en ; Monthly Statistical 
Bulletin , August 2012. Viewed at: 
http://www.snb.ch/en/iabout/stat/statpub/statmon/stats/statmon/statmon_H1 ; Swiss National 
Bank, Swiss Balance of Payments 2011 . Viewed at: 
http://www.snb.ch/en/iabout/stat/statpub/bop/stats/bop ; Federal Statistical Office (FSO). Viewed 
at: www.bfs.admin.ch ; IMF Country Report No. 12/106 May 2012 for data related to savings and 
investment; and Worl d Bank, World Development Indicators. 
1.6.  Under the 1980 Monetary Union Arrangement with Liechtenstein, Switzerland formulates 
monetary policy for both countries and the Swiss franc (SwF) is also legal tender in Liechtenstein. 
The de jure exchange rate arrangement is free fl oating; the exchange rate of the Swiss franc is 
market determined. Nevertheless, in response to the franc's continued appreciation, the SNB has 
set a minimum exchange rate for the euro against the Swiss franc (section 1.2). The SNB has 
succeeded in keeping the minimum exchange rate set at SwF 1.20 per euro since 6 September 2011. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  1.2  Recent Economic Developments 
1.7.  The economies of Switzerland and Liechtenst ein had been marked by growth and increasing 
employment for a couple of years up until their last joint TPR in 2008. Since then, the 
two economies have gone through a period of over all growth (by 1.3% per year on average in the 
case of Switzerland), despite GDP contraction by 1.9% in Switzerland and 11% in Liechtenstein in 
2009, due to the severe 2008/09 global financial cr isis. Both economies started recovering quickly 
from the crisis. Indeed, after three quarters of economic decline, Switzerland and Liechtenstein 
experienced stronger than expected growth from  mid-2009, driven largely by domestic demand, 
as well as by recovery in foreign trade7, supported by preferential access under new trade 
agreements (e.g. the agreement between Switzerland and Japan) and the free movement of persons in Europe. However, with the escalation of the sovereign debt crisis in the euro zone in spring 2010, their economic recovery lost momentum in 2011; Swiss annual GDP growth was 1.9% in 2011, down from 3.0% in the previous year.  
1.8.  The global financial crisis, followed by the European sovereign debt crisis has led to an 
increase in the demand for safe assets. As a re sult, the Swiss franc, which is regarded as a 
safe-haven currency by market participants, has appreciated substantially since the outbreak of 
the financial crisis. The decline in global (mainly European) demand, in combination with the 
appreciation of the Swiss franc, has negati vely affected exports, and employment in 
export-oriented industries. Nonetheless, unemployment remains relatively low in Switzerland 
(Table 1.1), and Liechtenstein (with unemployment rates not above 3%).
8 Between 2008 and 
2011, labour productivity declined annually by 0.53%.9 This drop was mainly caused by the slump 
in the foreign trade sector in the course of the financial crisis. However, Switzerland's labour productivity has been slow compared with other OECD countries for many years
10; and this has 
played its part in the slowdown of the Swiss economy and has limited real income increases. 
1.9.  As a result of the debt-brake rule im plemented by the Swiss Confederation since 200311, 
substantial fiscal surpluses were recorded at the federal level over 2006-08. The surpluses allowed the implementation of economic stabilization me asures in 2009/10, as well as the package of 
measures to mitigate the effects of the strong Swiss franc on the economy in 2011-12. The 
economic stabilization measures implemented over 2009-10 included expenditures on roads (SwF 158 million); rail (SwF 252 million); infras tructure (SwF 100 million); labour market 
measures (SwF 247 million); establishment of an ex port platform for SMEs (SwF 25 million); and 
early redistribution of revenue from the CO
2 tax (SwF 647 million).12 With a view to mitigating the 
negative effects of a strong Swiss franc on th e economy, a package of SwF 870 million featured, 
inter alia , short and medium-term measures on unemployment insurance (SwF 500 million), credit 
arrangements for hotels (SwF 100 million), compensation payments in the area of transportation 
(SwF 28.5 million), and export subsidies for processed agricultural products (SwF 10 million). The measures aim to, inter alia , offset any currency-related increase in the difference in raw material 
costs between Switzerland and the EU.
13 
1.10.  The economic slowdown led to a downward trend in the overall fiscal surpluses from 1.8% 
of GDP in 2008 to 0.4% in 2011. The overall gr oss debt ratio to GDP also trended downwards, 
from 39.2% in 2008 to 35.0% in 2011, with the Confederation accounting for slightly more than 
                                               
7 State Financial Statement 2011. Viewed at: 
http://www.efv.admin.ch/e/downloads/fi nanzberichterstattung/rechnung/RG1_2011_e.pdf . 
8 According to a new definition, unemployed persons are those who are registered at the Labour Market 
Service Division of the Office of Economic Affairs, wh o live in Liechtenstein, and who are able to take up 
employment within the next two weeks. Due to statistica l recording difficulties, persons in longer-term further 
education and subject to a qualifying period are likewis e counted as unemployed. See Liechtenstein Office of 
Statistics, "Liechtenstein in Figures, 2012". Viewed at: http://www.llv.li/pdf-llv-as-
Liechtenstein_in_figures_2012 . 
9 SECO, Swiss Federal Economic Department (DFE) online information, " Politique de croissance 2012-
2015, Rapport du Conseil fédéral ". Viewed at: 
http://www.news.admin.ch/NSBSubscriber/message/attachments/27193.pdf . 
10 OECD Labour Force Statistics. Viewed at: 
http://stats.oecd.org/Index.as px?DatasetCode=LFS_SEXAGE_I_R . 
11 WTO (2009). 
12 State Financial Statement 2010. Viewed at: 
http://www.efv.admin.ch/e/downloads/fi nanzberichterstattung/rechnung/RG1_2010_e.pdf . 
13 State Financial Statement 2011. Viewed at: 
http://www.efv.admin.ch/e/downloads/fi nanzberichterstattung/rechnung/RG1_2011_e.pdf . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  50% (Table 1.1). At the federal level, planned expenditures on energy research and early 
retirement regulations for special categories of st aff, as well as various tax proposals could result 
in significant receipt losses and/or additional a nnual expenses as from 2014. In order to prevent 
fiscal deficits14, and therefore an increase in gross debt, the Confederation is planning a fiscal 
consolidation programme amounting to some SwF 700 million per year over 2014-16. 
1.11.  A renewed fiscal equalization system has been in force since 2008 to reduce cantonal 
differences in financial capacity. It comprises a vert ical redistribution from the Confederation to the 
26 cantons, as well as a horizontal redistribution among the cantons. An assessment over 2008-11 
found that it has, inter alia , strengthened cantonal financial autonomy and reduced disparities in 
financial resources among cantons.15  
1.12.  The current account of Liechtenstein's pub lic budget showed a surplus of SwF 59 million in 
2009, followed by deficits of SwF 30 million in 2010 and SwF 160 million in 201116; larger deficits 
are expected for the coming years. The share of public revenue decreased from 23.5% of GDP in 2009 to 21.5% in 2010. In order to continue its policy of zero external debt and to reach overall 
budget surpluses by 2015, Liechtenstein is considering savings and tax measures. 
1.13.  According to the Federal Act on the Swiss National Bank
17, the SNB shall pursue a monetary 
policy that ensures price stability while taking due account of the development of the economy. 
The SNB defines price stability as a rise of less than 2% per annum in the national consumer price index. Continued appreciation of the Swiss franc and the slowdown of the real economy have 
exerted downward pressure on consumer prices, with the CPI falling by 0.5% in 2009 from its 
2008 level, then growing by 0.7% in 2010 and 0.2% in 2011.  
1.14.  Monetary policy decisions are based on in flation forecasts over a three-year period; the 
policy aims to ensure price stability in the medium and long term, while allowing short-term 
fluctuations. The SNB implements monetary policy by setting a target band for the three-month Swiss franc Libor (in general, a spread of one percentage point), and announces an intended level 
for the Libor within this band. It steers the three-month Libor by influencing money market 
conditions through, inter alia , liquidity-providing and liquidity-absorbing operations.  
1.15.  During the period under review, the SNB pursued an expansionary monetary policy and 
significantly increased the supply of liquidity to  the money market. In December 2008, the lower 
bound of target range for three-month Swiss franc Libor attained zero. The SNB further narrowed the target range to 0.0-0.75% in March 2009 and to 0.0-0.25% in August 2011. Furthermore, to 
alleviate pressures on the money markets, the SNB continued, along with other central banks, the 
euro/Swiss franc swap operations, which started in  2008, until January 2010. In order to forcefully 
relax monetary conditions, the SNB declared in March 2009 its intention to prevent any further 
appreciation of the Swiss franc against the euro. Foreign exchange interventions were temporarily 
discontinued in June 2010. In response to the st rong appreciation of the Swiss franc over the 
following year, the SNB eventually set a minimum exchange rate of SwF 1.20 per euro in 
September 2011, committing to unlimited purchases of foreign currencies, if needed. As a 
consequence, the foreign currency reserves at the SNB expanded almost tenfold from SwF 46.5 billion in February 2009 to SwF 429.9 billion in 2012.
18  
1.3  Developments in Trade and Investment 
1.16.  Trade is an important driving force of th e Swiss and Liechtenstein economies, with their 
GDP shares of trade in goods and services exc eeding 100%. Given their degree of dependence on 
trade, both countries remain sensitive to developmen ts in global demand and to a certain extent to 
exchange rates.  
1.17.  Switzerland's current account has been traditionally in surplus driven mainly by trade in 
services (financial services in particular), followed by investment income; since 2002, despite low 
global demand and strong appreciation of the Swiss franc, significant merchandise trade surpluses 
                                               
14 Swiss Federal Department of Economic Affairs online information. Viewed at: 
http://www.news.admin.ch/NSBSubscriber/message/attachments/27405.pdf . 
15 Viewed at: http://www.efv.admin.ch/e/dokumentation/fi nanzpolitik_grundlagen/finanzausgleich.php . 
16 Liechtenstein Office of Statistics (2012). 
17 RS 951.11.  
18 Swiss National Bank (2012c). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 17 - 
 
  have also played a key role. Nevertheless, the cu rrent account surplus fell significantly in 2008 due 
largely to the impact of the global financial crisis. In particular, the traditional surplus in investment income turned into deficit in 2008 due to the heavy losses by banks' foreign subsidiaries, largely as a result of the significant fall in the income from financial services and from 
direct investment (Table 1.2).
19  
Table 1.2 Balance of paymentsa, 2007-11 
(SwF billion) 
  2007 2008 2009 2010 2011 
Current account, net 46.6 11.8 58.4 82.0 49.2 
   Goods, net 9.4 15.1 16.4 13.2 14.4 
     Receipts  207.0 217.0 188.3 204.1 208.7 
     Expenses  -197.7 -201.9 -171.9 -190.9 -194.3 
        Special trade, netb 14.0 19.4 20.3 19.5 23.5 
          Receipts 197.5 206.3 180.5 193.5 197.9 
          Expenses -183.6 -186.9 -160.2 -174.0 -174.4 
        Other trade, net -4.6 -4.3 -3.9 -6.3 -9.1 
          Receipts 9.5 10.7 7.8 10.6 10.8 
          Expenses -14.1 -15.0 -11.7 -16.9 -19.9 
   Services, net 45.5 50.2 45.9 49.1 45.6 
     Receipts  79.0 83.6 83.0 87.1 85.6 
     Expenses  -33.5 -33.4 -37.0 -38.0 -40.1 
        Tourism, net 2.5 3.8 3.5 3.9 3.2 
          Receipts 14.6 15.6 15.4 15.6 15.6 
          Expenses -12.1 -11.8 -11.8 -11.6 -12.4 
        Bank financial services, net 21.0 18.5 15.7 14.7 13.4 
          Receipts 23.2 20.8 17.8 16.5 15.1 
          Expenses -2.1 -2.3 -2.1 -1.8 -1.7 
        Other services, net 22.0 27.9 26.7 30.4 29.0 
   Labour and investment income, net 3.1 -39.4 9.3 32.4 1.0 
     Labour income, net -12.5 -13.2 -13.6 -16.9 -18.5 
        Receipts 2.2 2.4 2.5 2.6 2.6 
        Expenses -14.7 -15.6 -16.2 -19.5 -21.1 
     Investment income, net 15.6 -26.2 22.8 49.2 19.5 
        Receipts 144.6 89.5 96.8 120.0 89.4 
          Portfolio investment 37.1 35.6 28.9 30.0 29.2 
          Direct investment 55.2 7.1 52.4 75.3 44.1 
          Other investment 52.3 46.8 15.6 14.7 16.1 
        Expenses -128.9 -115.7 -74.0 -70.7 -69.9 
          Portfolio investment -20.5 -21.4 -15.9 -17.9 -19.8 
          Direct investment -54.1 -46.2 -39.7 -37.5 -35.6 
          Other investment -54.3 -48.1 -18.4 -15.3 -14.5 
   Current transfers, net -11.4 -14.1 -13.1 -12.6 -11.7 
Capital transfers, net -5.0 -3.8 -3.8 -4.6 -1.4 
Financial account, net -57.4 -9.0 -21.7 -105.4 -42.8 
   Direct investment, net -22.3 -32.7 2.5 -48.7 -31.5 
     Swiss direct investment abroad -61.2 -49.1 -28.7 -82.7 -42.0 
        Equity capital -46.5 -48.6 -8.4 -22.1 -7.8 
        Reinvested earnings -6.3 25.9 -27.6 -36.0 -8.2 
        Other capital -8.5 -26.4 7.3 -24.5 -26.0 
     Foreign direct investment in Switzerland 38.9 16.4 31.4 33.9 10.5 
        Equity capital 12.5 -0.9 19.9 8.2 1.0 
        Reinvested earnings 36.1 -1.4 26.0 10.6 13.6 
        Other capital -9.7 18.6 -14.5 15.1 -4.1 
   Portfolio investment, net -23.3 -38.5 -32.1 31.0 -16.9 
                                               
19 Swiss National Bank (2009). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 18 - 
 
    2007 2008 2009 2010 2011 
     Swiss portfolio investment abroad -25.0 -71.3 -40.3 7.9 3.0 
        Debt securities -18.7 -67.4 -38.4 14.2 3.4 
          Bonds and notes -33.8 -70.7 -45.2 -5.1 5.8 
          Money market instruments 15.1 3.3 6.8 19.2 -2.4 
        Equity securities  -6.3 -4.0 -2.0 -6.3 -0.4 
     Foreign portfolio investment in Switzerland 1.7 32.8 8.3 23.1 -20.0 
        Debt securities 1.1 6.0 -2.2 30.2 -26.2 
          Bonds and notes -0.6 5.3 0.0 0.6 -4.3 
          Money market instruments 1.7 0.6 -2.3 29.7 -21.9 
        Equity securities 0.6 26.9 10.5 -7.1 6.2 
   Derivatives and structured products, net -12.8 7.4 2.5 1.3 4.2 
   Other investment, net 5.0 59.0 51.9 48.9 44.2 
     Commercial bank lending, net 5.7 62.8 43.2 13.6 49.1 
        Claims abroad -290.9 362.8 53.8 14.9 -5.9 
          Claims against banks -241.5 336.6 32.1 30.5 -2.3 
          Other claims -49.4 26.1 21.7 -15.6 -3.6 
        Liabilities abroad 296.6 -299.9 -10.6 -1.3 54.9 
          Liabilities towards banks 292.3 -346.1 -119.4 -13.6 20.6 
          Other liabilities 4.3 46.2 108.7 12.3 34.3 
     Corporate lending, net c 6.6 -12.3 -5.2 -4.0 9.9 
        Claims abroad -40.4 3.0 -8.0 -14.5 5.8 
        Liabilities abroad 47.0 -15.3 2.8 10.5 4.1 
     Government lending, net 3.1 5.4 0.0 0.1 -0.7 
     Swiss National Bank lending, net 0.0 -35.1 17.9 30.6 -9.0 
     Other claims and liabilities abroad, net -10.3 38.2 -4.0 8.5 -5.0 
   Reserve assets, total -4.1 -4.1 -46.8 -137.8 -42.6 
Net errors and omissions 15.9 0.9 -33.0 28.1 -5.0 
a The minus sign (-) indicates a surplus of imports ov er exports in the current account, and an export 
of capital in the other items. 
b As of 2002, special trade has also included electrical energy. In addition, it covers processing of 
goods for foreign account, processi ng abroad for domestic account an d returned goods, all of which, 
until 2001, were included under other trade. 
c Intragroup lending is shown under direct investment. 
Source: Swiss National Bank (2012), Swiss Balance of Payments 2011 . Viewed at: 
http://www.snb.ch/en/iabout/stat/statpub/bop/stats/bop . 
1.3.1  Trade in goods and services 
1.3.1.1  Switzerland 1.18.  During the period under review, the total value of merchandise imports decreased by 3.8% 
when measured in SwF but increased by 13.9% when measured in U.S. dollars. This is due to the 
strong appreciation of the Swiss franc against major currencies, including the U.S. dollar 
(Table 1.1). Imports are dominated by manufactures, which account for around 80% of the total value. The shares of individual product categories changed little during the period; machinery and 
transport equipment continue to be the main import items, followed by chemicals. Imports of 
energy products remain significant, due mainly to higher prices.  
1.19.  Switzerland is a net food importer. Import s of agricultural goods have been contained by 
various trade policy measures (Chapter 4.1), and the share of these products in total imports did 
not change significantly during the period under review. Imports of "other consumer goods" increased by 24.6% (in U.S. dollars) between 20 08 and 2011, while those of "chemicals" grew by 
19.0%, and "machinery and transport equipment" by 10.8% (Tables A1.1 and Chart 1.1). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Chart 1.1 Composition of merchandise trade, 2008 and 2011 
2008 2011
(a)    Exports 
Other consumer goods
21.1
Manufactures
89.2Iron and steel
0.9
Chemicals
36.7
Non-electrical 
machinery
12.8Electrical 
machines
5.7
Total:   US$199. 4 billion Total:  US$234.5 b illion  
(b)    Imports 
Chemicals
20.4Transport 
equipment  
8.6
Manufactures
79.3Textiles and 
clothing
4.3
Electrical 
machines
9.2Other mining
4.5Fuels
8.9
Iron and steel
2.5
Non-electrical
machinery
8.1Iron and steel
2.0Other
1.1
Textiles and 
clothing
4.1Agriculture
6.7
Other semi-
manufactures
8.7Transport 
equipment  
9.2
Chemicals
21.3Manufactures
79.6
Total:   US$182. 4 billion Total:   US$207.6 billion Per cent
Manufactures
88.0
Other 
consumer goods
17.1Other
0.5Other consumer goods
22.7Mining
6.6
Chemicals
34.3
Electrical 
machines
9.1Other semi-
manufactures
5.3Mining
6.8Agriculture
4.0
Non-electrical 
machinery
9.4Other 
consumer goods
15.7
Mining
12.6Other 
manufactures
1.4
Other semi-
manufactures
6.4
Other semi-
manufactures
9.2Transport 
equipment
3.1Other 
manufactures
1.9
Mining
13.5Agriculture
6.6Other
0.4Other
1.2
Other mining
4.1Fuels
8.5Transport 
equipment
2.5
Electrical 
machines
6.5Agriculture
3.8
Iron and steel
1.2
Non-electrical 
machinery
14.6
 
Source: WTO Secretariat estimates, based on information provided by Swiss government. 
 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Chart 1.2 Direction of merchandise trade, 2008 and 2011 
2008 2011
(a)    Exports (f.o.b.)
Asia  
15.5
Middle East
4.0
Total:   US$199. 4 billion Total:  US$234.5 billion
(b)    Imports 
EU(27)  78.8Europe  79.6Other America
1.9Middle East 1.0
Africa 2.3
EU(27)  78.1Europe 78.8Asia
10.2Other America 
1.7Africa 1.5Middle East 0.9United 
States 
5.0
Total:   US$182.4 b illion Total:   US$207.6 billionPer cent
CIS 1.8United States
9.6
Other Europe
2.0United States 
10.2
Other Europe 
0.7EU(27)
56.9
Asia
8.3
Other Europe 
0.7EU(27)
61.0Other Europe 
1.7Other America
4.3
Africa 1.6Hong Kong, China 
3.8
China 4.2
CIS 2.2Other America
4.1
CIS 1.1Other Asia   
7.9
Africa 1.6
United 
States 
5.8Japan 3.3
Europe
63.0Middle East
4.1
CIS 2.1Other Asia 6.5
China 2.8
Europe
58.6Japan 3.2
Asia   
19.1Hong Kong, China 2.9
 
Source: WTO Secretariat estimates, based on information provided by Swiss government. 
 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 21 - 
 
  1.20.  Due mainly to the fall in global demand (mainly in 2009), merchandise exports decreased 
by 3.8% (in SwF) between 2008 and 2011; however, in U.S. dollars, they increased by 17.6%. 
Manufactured products represent the bulk of merc handise exports (almost 90%) from Switzerland 
(Table A1.2 and Chart 1.1). Chemical products (n otably pharmaceutical products) continue to be 
the main export, followed by machinery and elec tronics (mainly industrial machinery). Over the 
review period, the share of watches and precision instruments grew steadily after having declined slightly in 2009. The share of agricultural products increased to around 4% of total exports. 
1.21.  Exports of products for which demand is of relatively low price elasticity, notably 
pharmaceutical goods and precision instruments, re gistered a 1.4% decline (in U.S. dollars) in 
2009, but started to recover in 2010. During the revi ew period, exports of "other consumer goods" 
grew by 26.2% (in U.S. dollars), and those of ch emicals by 25.8%, while those of "machinery and 
transport equipment" grew by only 1.7%.  
1.22.  The European Union (EU) remains by fa r Switzerland's largest supplier of merchandise 
(around 80% of total imports), and the major destination for its exports (around 60% of total 
exports) (Tables A1.3 and A1.4; and Chart 1.2). Within the EU, Germany is the main supplier and 
the main destination; the shares of the two other EFTA members remain low; and the United States is the main non-European trading partner.  
1.23.  Some changes have taken place regarding the export destinations of Swiss products. The 
EU's share decreased from 61.0% in 2008 to 56.9% in 2011; this was mitigated by an increase in 
exports to Asia (mainly China) as well as to the Middle East and Russia, reflecting the continued geographical diversification of Swiss exports (Tab le A1.4 and Chart 1.2). Asia's share as both 
import origin and export destination for Switzerland has increased since 2008. In general, the 
destinations for Swiss merchandise exports are more diversified than the sources of its imports.  
1.24.  Switzerland has traditionally been a net exporter of services (Table 1.2). Receipts from bank 
financial services, which made up nearly one third of total receipts from services at the time of the 
last TPR, decreased significantly, from SwF 20.8 billion in 2008 to SwF 15.1 billion in 2011. The global downturn, along with a stronger Swiss franc, also resulted in stagnation in receipts from 
tourism and a slight decline in its share of the total. However, there was a significant rise in 
receipts from merchanting
20, which replaced financial services as the most important export 
category. Technological services accounted for a large share of total service expenses, which have grown significantly since 2008, especially licence and patent fees, and replaced tourism expenses 
as the most important import category.
21  
1.3.1.2  Liechtenstein 1.25.  Liechtenstein's direct exports and direct imports (i.e. excluding trade with Switzerland) 
reached SwF 3.3 billion and SwF 2.0 billion, respectively, in 2011. Liechtenstein runs direct 
merchandise trade surpluses. However, in addition  to direct imports, Liechtenstein imports (e.g. 
automobiles) indirectly from third countries via Switzerland. The EU is Liechtenstein's main 
supplier of direct imports, and largest destination for direct exports. Its main single sources and 
destinations are Switzerland, Germany, and the United States.  
1.26.  Like Switzerland, Liechtenstein experienced a sharp drop in exports at the beginning of 
2009, but the fall in its direct exports was much st eeper (down by 35% from the second quarter of 
2008), as its export destinations are less diversified than Switzerland's. Since then, Liechtenstein's 
direct exports have recovered (Table 1.3).  
                                               
20 A company engages in merchanting when it purchase s goods from a supplier abroad and sells them to 
a buyer abroad without the goods entering or leaving the domestic economy. Because merchanting is common 
in commodity trading, merchanting and commodity tradin g are often used as synonyms (Swiss National Bank, 
2012b). 
21 Swiss National Bank (2012b).  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table 1.3 Liechtenstein's direct  imports and exports, 2007-11 
Year Direct imports 
(million SwF) Percentage 
change Direct exports 
(million SwF) Percentage 
change 
2007 2,416 11.7% 4,182 16.0% 
2008 2,461 1.8% 4,245 1.5% 
2009 1,924 -21.8% 3,081 -27.4% 
2010 1,882 -2.2% 3,325 7.9% 
2011 1,965 4.4% 3,329 0.1% 
Note: Excluding trade with Switzerland. 
Source: Liechtenstein authorities. 
1.3.2  Investment 
1.27.  The high living standards, highly skilled labour force, flexible labour laws, reliable 
infrastructure, as well as relatively low levels of taxation, are considered to make Switzerland one of the most attractive locations for foreign direct investment (FDI) in the world.
22 Despite the high 
levels of wages and input prices, these conditions have made Switzerland a main destination for 
FDI in the services sector as well as in high-technology manufacturing branches such as advanced electronics, pharmaceuticals, and medical engineering. Liechtenstein benefits from similar 
advantages. Nevertheless, the small size of the two countries and their high production costs have 
somewhat limited investment opportunities and contributed to maintaining gross fixed capital formation at relatively low levels (around 20% of GDP for Switzerland since 1996). 
1.28.  Inward FDI in Switzerland fluctuated considerably during the period under review 
(Table 1.2). After a decline in 2008, during the global crisis, it rose in 2009 and 2010, before weakening significantly in 2011. Trade and finance and holding companies received the bulk of these investments, while metals and machinery registered disinvestment.
23 The stock of FDI has 
been on an upward trend over the period under review (Table 1.4). 
1.29.  According to the SNB, the low FDI inflows in Switzerland in 2011 were partly due to 
intragroup lending (foreign companies financing their Swiss subsidiaries), with outflows of 
SwF 4 billion in 2011 compared with inflows of SwF 15 billion in 2010; purchases and capital 
increases in equity capital amounted to SwF 1 billion in 2011, compared with SwF 8 billion in 
2010.24  
1.30.  The EU is a major source of FDI in Switze rland (Table 1.4). The United States, the largest 
single source of FDI in Switzerland in 2008, divested SwF 36.1 billion in 2009 (Table 1.4). 
1.31.  Switzerland remains a net FDI source, although, in 2009, inward FDI in Switzerland slightly 
exceeded Swiss direct investment abroad (Table 1.4). The earnings situations of Swiss companies 
has a significant influence on investment behaviour;  Swiss corporate investment activities declined 
significantly as a result of the financial crisis, in particular the losses recorded by banks and insurance companies.
25 Outward FDI decreased somewhat between 2007 and 2009, and rose 
significantly in 2010, due mainly to higher investment by finance and holding companies. In 2011, 
FDI declined again, due mainly to foreign-controlled finance and holding companies' withdrawals from their subsidiaries abroad.
26 
1.32.  The major destinations for outward FDI from Switzerland are the EU and North America, 
whose combined share is usually between two thir ds and three quarters of the total. Asia has 
become an increasingly important destination, with capital outflows to the region amounting to SwF 8.2 billion in 2009 and SwF 16.6 billion in 2011.
27 Switzerland has also invested in the 
                                               
22 OECD online information, "FDI Performance and Potentia l Rankings". Viewed at:  
http://www.oecd.org/investment/globalforum/44246319.pdf . 
23 Swiss National Bank (2012a). 
24 Swiss National Bank (2012a). 
25 Swiss National Bank (2012a). 
26 Swiss National Bank (2012a). 
27 Swiss National Bank (2012a). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  offshore financial centres of Central and South America (the most important being Bermuda and 
the Cayman Islands).28 
Table 1.4 Foreign direct investment, 2008-11 
(SwF billion) 
 Capital flows  Capital stock at year-end  
(book value) 
2008 2009 2010 2011 2008 2009 2010 2011 
FDI in Switzerlanda 16.5 31.4 33.9 10.5 476.0 514.8 580.4 606.8 
By country of origin             
Europe -9.6 79.4 13.5 -3.8 348.0 444.9 488.1 503.8 
   EUb -8.4 78.6 13.6 -9.1 344.2 434.0 478.7 465.0 
     Netherlands -16.2 34.4 2.6 3.2 98.8 124.3 148.0 150.5 
     Luxembourg 4.0 23.4 11.0 -4.1 66.7 107.7 128.4 118.3 
     Austria 7.5 7.1 1.6 2.5 67.7 75.6 66.0 68.1 
     France -2.9 3.8 3.7 -5.0 34.2 39.4 41.2 32.4 
     Germany 0.2 1.3 -3.4 1.2 33.0 33.6 29.5 28.9 
     United Kingdom -3.9 6.7 -0.5 -10.6 10.0 14.6 14.7 12.3 
   Other European countries -1.2 0.8 -0.1 5.3 3.8 10.9 9.4 38.8 
North America 21.2 -36.3 -2.0 -1.2 105.3 71.0 72.3 69.5 
   Canada -0.7 -0.1 0.0 0.0 0.2 0.1 0.2 0.2 
   United States 21.8 -36.1 -2.0 -1.2 105.1 70.9 72.1 69.3 
Central and South America 5.1 -11.0 21.6 4.0 17.1 -6.0 13.6 17.7 
   Offshore financial centresc 5.1 -7.1 7.4 -1.0 35.6 16.4 22.4 21.3 
Asia, Africa and Oceania -0.2 -0.7 0.9 11.5 5.6 4.9 6.4 15.8 
   Israel 0.0 0.0 0.0 1.3 1.0 1.1 1.3 2.4 
   Japan -0.5 0.1 0.2 2.2 0.6 0.6 0.8 2.0 
By economic activityd             
Manufacturing 2.5 9.5 -1.1 -6.3 72.7 83.0 81.7 79.1 
   Chemicals and plastics 0.9 2.9 2.4 2.2 33.9 37.6 38.9 38.8 
   Metals and machinery 1.0 0.8 -0.3 -7.7 9.8 10.6 10.2 10.3 
   Electronics, energy, optical 
and watchmaking -0.7 4.0 -1.6 -0.6 20.9 23.5 22.5 22.4 
   Other manufacturing and 
construction 1.2 1.9 -1.6 -0.2 8.0 11.3 10.2 7.5 
Services 14.0 21.9 35.0 16.8 403.3 431.8 498.7 527.7 
   Trade -5.3 4.1 10.9 10.7 45.2 54.5 71.9 105.0 
   Finance and holding 
companies 14.7 15.8 22.4 7.5 273.8 291.8 342.8 340.8 
   Banks 2.5 2.3 0.3 0.0 38.3 39.0 34.4 33.6 
   Insurance companies 1.3 1.3 1.3 -1.4 20.9 22.8 26.3 23.5 
   Transportation and 
communications -0.2 -0.5 0.0 0.3 12.3 12.0 12.0 14.9 
   Other services 1.0 -1.1 0.2 -0.4 12.9 11.8 11.4 9.9 
Swiss direct investment 
abroade 49.1 28.7 82.7 42.0 769.9 891.3 970.4 1,000.3 
By country of destination             
Europe 26.7 4.9 22.1 3.1 383.4 442.3 463.8 458.0 
   EUb 16.2 9.7 20.1 5.4 323.4 383.5 405.6 404.4 
     Luxembourg 14.7 -4.9 0.0 -2.2 27.7 72.5 77.5 78.7 
     United Kingdom -11.7 5.9 7.3 -2.3 65.5 78.7 78.1 69.5 
     Germany 5.4 4.4 3.1 3.9 55.5 59.3 55.8 54.7 
     Netherlands 4.6 6.1 3.6 -1.1 34.4 40.6 54.6 52.8 
     France 3.1 -0.1 4.3 0.7 35.6 32.2 34.3 37.9 
   Other European countries 10.5 -4.8 2.0 -2.3 60.0 58.8 58.2 53.7 
                                               
28 Anguilla, Bahamas, Barbados, Bermuda, Virgin Islands (British), Curaçao, Cayman Islands, 
Montserrat, Panama, St Kitts and Nevis, Sint Maarten; as of 2000, including Virgin Islands (US), Antigua and 
Barbuda, Belize, Dominica, Grenada, Saint Lucia, St Vi ncent and the Grenadines, Turks and Caicos Islands; as 
of 2011, including Aruba, excluding Bonaire, Sint Eust atius and Saba, Jamaica (Swiss National Bank, 2012b). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   Capital flows  Capital stock at year-end  
(book value) 
2008 2009 2010 2011 2008 2009 2010 2011 
North America 26.4 8.6 23.0 11.7 174.5 196.2 209.4 229.3 
   Canada -2.7 3.3 -1.0 0.2 29.5 34.3 31.9 31.8 
   United States 29.0 5.3 24.0 11.5 145.0 162.0 177.5 197.6 
Central and South America -10.6 6.2 28.0 4.9 114.8 148.2 178.4 182.7 
   Brazil 0.8 0.2 8.3 1.1 12.4 15.5 23.4 22.7 
   Offshore financial centresf -13.5 4.5 15.8 0.9 90.9 114.9 134.7 136.7 
Asia -0.2 8.2 8.7 16.6 66.1 79.4 88.7 97.5 
   Singapore -16.4 1.5 2.4 2.1 8.3 12.8 17.0 19.3 
   Japan 1.4 1.9 0.3 2.9 14.9 15.4 14.3 15.0 
   China 1.4 1.2 1.8 5.3 6.6 7.5 8.5 13.1 
Africa 3.8 0.9 1.6 1.1 13.9 9.9 11.6 10.4 
Oceania 3.0 -0.2 -0.7 4.6 17.1 15.2 18.4 22.4 
By economic activity d             
Manufacturing 28.3 10.5 7.2 19.8 312.2 316.3 299.6 314.3 
   Textiles and clothing 0.0 -3.1 -7.1 0.1 18.6 17.6 8.9 9.7 
   Chemicals and plastics 6.0 1.6 -1.8 16.8 125.1 125.9 112.4 132.9 
   Metals and machinery 4.2 0.4 -0.4 -8.3 49.7 50.1 45.6 36.8 
   Electronics, energy, optical 
and watchmaking 9.1 6.4 9.4 5.0 36.6 40.7 49.2 52.4 
   Other manufacturing and 
construction 9.0 5.3 7.2 6.2 82.1 82.0 83.4 82.5 
Services 20.8 18.2 75.4 22.2 457.6 575.0 670.9 686.0 
   Trade 6.4 11.6 13.1 6.7 30.9 52.5 66.9 70.1 
   Finance and holding 
companies 20.7 -5.7 42.4 1.0 227.0 301.4 385.2 385.0 
   Banks 1.1 3.3 4.5 1.4 80.0 82.9 74.7 75.1 
   Insurance companies -8.0 6.4 13.3 11.7 96.9 116.1 119.4 132.2 
   Transportation and 
communications 1.0 0.2 0.5 0.8 11.9 12.0 11.7 10.1 
   Other services -0.4 2.4 1.6 0.7 11.1 10.2 13.0 13.5 
a The minus sign (-) indicates an outflow of capital from Switzerland (disinvestment). 
b As of 2007, EU 27. c Virgin Islands (US), Anguilla, Antigua and Barbud a, Bahamas, Barbados, Belize, Bermuda, Virgin 
Islands (British), Curaçao, Dominica, Grenada, Cayman Islands, Montserrat, Panama, St Kitts and 
Nevis, St Lucia, Sint Maarten, St Vincent and the Grenadines, Turks and Caicos Islands; as of 2011, 
including Aruba, excluding Bonaire, Sint Eustatius and Saba, Jamaica. 
d The breakdown by sector and by  economic activity re fers to the company's core business in 
Switzerland.  
e The minus sign (–) indicates a return flow of capital into Switzerland (disinvestment). f Anguilla, Bahamas, Barbados, Bermuda, Virgin Islands (British), Curaçao, Cayman Islands, 
Montserrat, Panama, St Kitts and Nevis, Sint Maarten; as of 2000, including Virgin Islands (US), Antigua and Barbuda, Belize, Domi nica, Grenada, Saint Lucia, St Vincent and the Grenadines, Turks 
and Caicos Islands; as of 2011, including Aruba,  excluding Bonaire, Sint Eustatius and Saba, 
Jamaica. 
Note: Since 2006, Liechtenstein has been included in th e Swiss statistics on direct investment. Previously, 
direct investments relating to companies whose he ad offices were located in Liechtenstein were 
included in the statistics only if  their parent company's head office  was located in Switzerland. The 
direct investment survey now includes companies in Liechtenstein. 
Source:   Swiss National Bank (2012), Direct Investment 2011 . Viewed at: 
http://www.snb.ch/en/iabout/stat/statpub/fdi/stats/fdi . 
 
1.33.  Swiss companies have invested abroad in, inter alia , insurance companies, trade, chemicals 
and plastics, and other manufacturing industries and construction; investment activity varies greatly among different industries.
29 At SwF 19.8 billion, manufacturing invested significantly more 
abroad in 2011 after a significant decline in the previous two years. Direct investment by the 
services sector generally declined during the pe riod under review, except in 2010. In particular, 
                                               
29 Swiss National Bank (2012a). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 25 - 
 
  finance and holding companies registered a sharp decline in outward direct investment in 2011 
(Table 1.4). 
1.34.  Since 2006, Swiss FDI data have also included Liechtenstein; no separate data are 
available. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  2  TRADE AND INVESTMENT REGIMES 
2.1   General Framework1 
2.1.  Switzerland is a federal republic with a system of direct democracy in which the people are 
sovereign. Liechtenstein is a constitutional hereditary monarchy, based on a democratic2 and 
parliamentary system, in which power is shared by the Reigning Prince and the people.  
2.2.  The constitutional foundations of Swiss fo reign economic law are found in Articles 54 and 101 
of the Constitution. Article 54 gives the Confederat ion comprehensive powers in the area of foreign 
affairs, and forms the basis for the foreign economic law derived from international treaties. Under 
Article 101, the Confederation must safeguard the interests of the Swiss economy, which also involves promotional measures (Export Promotion Act). Moreover, Article 101 forms a partial basis for the guarantee relating to export and investment risks and for the legislation on technical 
barriers to trade.  
2.3.  In the case of Liechtenstein, trade-related articles in the Constitution include Articles 20 
and 22. Article 20 states that the State shall prom ote and support agriculture, the cultivation of 
the Alps, trade and industry, and that it shall pay special attention to the design of a 
transportation infrastructure conforming to modern requirements. Article 22 stipulates the sovereignty of the State over hunting, fishing, an d mining and instructs the State, when enacting 
laws in these sectors, to protect the interests of agriculture and communal revenues. 
2.4.  In Switzerland, the State Secretariat for Economic Affairs (SECO), under the Federal 
Department of Economic Affairs, Education and Research is responsible for overall economic policy, including the formulation and implementation of trade policy (Table 2.1). SECO also helps to 
ensure access to all markets for Swiss goods, services, and investment. On the national level, 
SECO acts as an interface between business, tr ade unions, NGOs, and Government. SECO is also 
involved in efforts to reduce poverty in developing countries in the form of economic development 
cooperation. Switzerland's relations with the European Union are coordinated by the Directorate 
for European Affairs (DEA) of the Federa l Department of Foreign Affairs (FDFA).
3 
Table 2.1 Main trade-related laws and regulations, 2012 
Legislation Entry into force/ 
latest amendment Reference 
Switzerland   
Federal laws on intellectual property and protection of 
data, 1931-01a 1932-2002/2011 Laws in the series RS 23 
Ordinances on animal husbandry, 1984-11a 1985-2012/2011 Ordinances in the series 
RS 916.3 
Federal Law on government procurement of 
16 December 1994a 1 January 1996/2012 RS 172.056.1  
Federal Law against unfair competition of 
19 December 1986 1 March 1988/2012 RS 241 
Federal Law on cartels and other impediments to 
competition of 6 October 1995 1 February 1996/2008 RS 251 
Federal Law on the protection of animals of 
16 December 2005a 1 September 2008/2010 RS 455 
Federal Law on war material of 13 December 1996a 1 April 1998/2009 RS 514.51 
Federal Law on national economic supply of 
8 October 1982a 1 September 1983/2007  RS 531 
Customs Law of 18 March 2005a 1 May 2007/2011 RS 631.0 
Federal Law on customs tariffs of 9 October 1986a 1 January 1988/2011 RS 632.10 
Federal law on stamp duty of 27 June 1973a 1 July 1974/2006 RS 641.10 
Federal Law regulating value-added tax of 
12 June 2009a 1 January 20101/2011 RS 641.20 
Federal laws on taxation of tobacco, beer, alcohol, motor 
vehicles, and mineral oils, 1932-06a 1933-2007/2011 RS 641.31; 641.411; 
680; 641.51; and 641.61 
                                               
1 See WTO document WT/TPR/S/208/Rev.1, for a detailed presentation of the constitutional and 
institutional framework for trade policy  in Switzerland and Liechtenstein. 
2 The people of Liechtenstein enjoy direct democracy rights. 
3 As from 1 January 2013, the Integration Office is an Office of the FDFA. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 27 - 
 
  Legislation Entry into force/ 
latest amendment Reference 
Federal Law on medicinal products and medical devices 
of 15 December 2000a 1 January 2002/2008 RS 812.21 
Federal Law on protection ag ainst hazardous substances 
and preparations of 15 December 2000a 1 January 2005/2005 RS 813.1 
Federal Law on agriculture of 29 April 1998a 1 January 1999/2011 RS 910.1 
General ordinance on imports of  agricultural products of 
26 October 2011a 1 January 2012/2012 RS 916.01 
Ordinance on the import and export of vegetables, fruit, 
and horticultural plants of 7 December 1998a 1 January 1999/2011 RS 916.121.10 
Federal Law on hunting and the protection of wild 
mammals and birds of 20 June 1986a 1 April 1988/2008 RS 922.0 
Law on price surveillance of 20 December 1985  1 July 1986/2005 RS 942.20 
Ordinance on notification of prices of 11 December 1978 1 January 1979/2011 RS 942.211 
Federal Law on the internal market of 6 October 1995 1 July 1996/2005 RS 943.02 
Federal Law on consumer information of 5 October 1990 1 May 1992/2000 RS 944.0 
Federal Law on Swiss insurance against export risks of 
16 December 2005 1 June 2006/2007 RS 946.10 
Federal Law on export promotion of 6 October 2000 1 March 2001/2005 RS 946.14 
Federal Law on external economic measures of 
25 June 1982a 1 January 1983/2005  RS 946.201 
Federal Law on the application of international sanctions 
of 22 March 2002a 1 January 2003/2004 RS 946.231 
Ordinance on attestation of th e non-preferential origin of 
goods of 9 April 2008a 1 May 2008 RS 946.31 
Federal Law on technical barriers to trade of 
6 October 1995a 1 July 1996/2009 RS 946.51 
LIECHTENSTEIN    
Law on craft, trade and industry  1 January 2007/2010 LR 930.1 
Government ordinance on craft, trade and industry 15 June 2011/2012 LR 930.11 
Law on the provision of services 9 December 2010/2011 LR 930.4 
Law on payment services 1 November 2009/2011 LR 950.1 
E-Money Act 1 May 2011 LR 950.3 
Law on undertakings for collective investment in 
transferable securities  1 August 2011 LR 951.31 
Laws on Government Procurement  1998-07 Laws in the series 
LR 172.05 
Laws on intellectual property , including author's right, 
industrial property, and data protection  1957-02 Laws in the series LR 23 
Law against unfair competition  1 November 1994/2008 LR 240 
Government ordinance on indication of prices  24 September 1996/ 
1999 LR 240.12 
Law on consumer information  17 December 2002/ 
2012 LR 944 
Law concerning the application of international sanctions 1 March 2009 LR 946.21 
Law on the revision of the persons and companies act 1 April 2009 LR 216.0 
Law on national and municipal taxes 1 January 2011 LR 640.0 
Government ordinance on national and municipal taxes 1 January 2011 LR 640.01 
Law on the promotion of Liechtenstein as a business and 
tourism location 1 January 2012 LR 935.20 
Law on agriculture 1 July 2009/2012 LR 910.0 
a Also applicable to Liechtenstein, due to the Customs Union Treaty. 
Source: Federal Authorities of the Swiss Confederation online information, "Recueil systématique du droit 
fédéral" . Viewed at: http://www.admin.ch/ch/f/rs/rs.html; and Liechtenstein authorities online 
information. Viewed at: http://www.gesetze.li . 
2.5.  Liechtenstein participates in a customs uni on with Switzerland and employs the Swiss franc 
as its national currency. Since the entry into  force of the Customs Union Treaty in 1924, 
Switzerland acts on behalf of Liechtenstein in customs union matters, such as trade policy 
measures affecting imports and exports, and agriculture. Liechtenstein maintains its own 
regulatory framework in trade in services (i.e. financial services), government procurement, consumer protection, investment, and in some areas of intellectual property rights. In these areas, 
the bilateral relationship is governed by the EFTA Convention. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  2.6.  Implementation of economic policy is the re sponsibility of the Office of Economic Affairs in 
Liechtenstein. The Office for Foreign Affairs is responsible for coordinating membership in international agreements (including the WTO Agreement and the EFTA Convention) as well as their administration. In view of Liechtenstein's participation in the European Economic Area (EEA), an 
EEA Coordination Unit was established. Each office formulates policies in collaboration with other 
national offices, including the Office for Agriculture
4, and in consultation with the private sector 
through, inter alia , the Chamber of Industry and Commerce. In 2010, the Government established 
the Office for International Financial Affairs to coordinate and implement the Government's 
financial centre strategy and associated measures and tasks. 
2.7.  Switzerland's primary foreign economic policy objectives are to strengthen the country's 
economic position in the world. More specifically, Switzerland aims to improve competition in the 
domestic market; ameliorate regulatory conditions for foreign trade and consolidate its relations 
with the EU, as outlined in SECO's Foreign Economic Policy Report for 2011; and contribute to economic development in partner countries. Improved market access for Swiss products through 
multilateral trade liberalization, and bilateral and regional trade agreements is also a main trade 
policy objective (Table 2.2). 
Table 2.2 Selected sectoral trade polic y objectives for Switzerland, 2011 
Area Policy objectives 
Agriculture - supply the domestic market with high quality products at competitive prices 
- continue the reform of the Swiss agricu ltural policy to improve the sector's 
competitiveness, inter alia , under the hypothesis of further liberalization of agricultural 
markets 
Industrial 
goods - reduce costs associated with cross-border g oods traffic/simplified customs procedures for 
small shipments 
- non-discriminatory access to the EU mark et in the area of technical regulations 
Services - improve market access for Swiss firms in the service sector, especially in financial 
services, logistics and transport services , tourism services, business services, and 
distribution services 
- examine new EU market access regulations fo r certain suppliers of financial services 
from outside the EU 
- explore potential for privatization of electr icity market through to the end consumer and 
for liberalization of postal services 
Intellectual 
property - amend the trade mark law and the law on th e coat of arms regarding the applicable 
criteria to label products or services as "Swiss" 
- include in FTAs provisions for the effect ive protection of intellectual property 
- support partner countries in establishing authorities and legal systems for the protection 
of intellectual property 
Government 
procurement - improve market access fo r government procurement abroad for Swiss suppliers 
- harmonize the Swiss Procurement Law - include provisions on government procur ement in FTAs based on the revised GPA 
Source: SECO online information, "Foreign Economic Policy Report 2011". Viewed at: 
http://www.seco.admin.ch/dokumentation/publikation/00008/00101/04841/index.html?lang=en . 
2.8.  Liechtenstein's trade policy objectives are set according to the country's trading 
environment; i.e. the Customs Union Treaty with  Switzerland, and membership in EFTA, the EEA, 
and the WTO. As a country with a very small domestic market and a highly export-oriented economy, Liechtenstein seeks to ensure and extend non-discriminatory market access for its 
economic operators to the global markets. Libera lization of trade at the multilateral and regional 
levels (via EFTA), as well as the strengthening of the rules-based international trading system, are high priorities in Liechtenstein's foreign economic policy. 
                                               
4 In 2013, the Office for Agriculture will become part  of the Office for the Environment, Agriculture and 
Forestry.    WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  2.2  Trade Agreements and Arrangements 
2.2.1  WTO 2.9.  Switzerland and Liechtenstein are both origin al Members of the WTO. They grant at least MFN 
treatment to all their trading partners, except for certain restrictions related to economic 
sanctions.
5 Both countries are signatories to the Pluril ateral Agreement on Trade in Civil Aircraft, 
the Ministerial Declaration on Trade in Information Technology Products, and the Plurilateral Agreement on Government Procurement (GPA). On the Doha Development Agenda (DDA) 
negotiations, Switzerland supports a comprehensive round that not only increases market access 
but also improves existing trade rules, introduces new ones, and promotes coherence between the multilateral trading system and other issues, such as environmental and development policies.
6 
Switzerland believes that despite the current impasse, it is important to preserve the progress that 
has already been achieved in the negotiations, especially in the area of trade facilitation. 
Switzerland and Liechtenstein are both members of the G107 and are "W52" Sponsors.8 
Switzerland is a member of Friends of Ambition (NAMA)9, Friends of A-D Negotiations (FANS)10 and 
of the "Really Good Friends" (services).11 
2.10.  Most of Switzerland's notifications to the WTO also cover Liechtenstein (Table A2.1 and 
A2.2). However, Liechtenstein submits individual notifications in anti-dumping measures; subsidies 
and countervailing duties; and state-trading. 
2.11.  During the period under review, neither Sw itzerland nor Liechtenstein has been involved in 
any dispute settlement cases, as complainant, respondent, or third party.  
2.2.2  Regional agreements 
2.12.  Switzerland and Liechtenstein are both members of EFTA. In addition, Liechtenstein is a 
member of the EEA.  
2.13.  Switzerland has set four main criteria for negotiating preferential agreements: (i) the 
anticipated economic importance of the country; (ii) the current or potential discrimination towards 
Switzerland in comparison to major competitors; (iii) the willingness of partner countries to enter 
into negotiations; and (iv) the political opportuni ties offered by an agreement. On this basis, 
Switzerland has targeted preferential agreements with three groups of countries: (i) the EU/EFTA 
countries, with which Switzerland enjoys close relations due to their geographical proximity; 
(ii) non-European OECD countries, such as the United States, Japan, Canada, Australia, New Zealand, Republic of Korea, and Mexico; and (iii) large emerging economies: Brazil, Russia, 
India, and China (BRIC countries).
12 
2.14.  The conclusion of free-trade agreements is aimed at giving Swiss companies greater access 
to international markets at least equal to that of Switzerland's most important foreign competitors.  
                                               
5 As of July 2012, sanctions exist against: Iraq, Liberia, Myanmar, Zimbabwe, Côte d’Ivoire, Sudan, 
Democratic Republic of Cong o, Belarus, Democratic Peop le's Republic of Korea (Nor th Korea), Lebanon, Iran, 
Somalia, Guinea, Eritrea, Libya, Syria, and Guinea-Bissau. See http://www.seco.admin.ch/themen/00513/00620/00622/index.html?lang=fr . 
6 See WTO document WT/TPR/S/208/Rev.1, pp. 23 -24 for a description of Switzerland's and 
Liechtenstein's positions in the DDA. 
7 A coalition of nine WTO Members lobbying for agriculture to be treated as diverse and special because 
of non-trade concerns. 
8 Sponsors of TN/C/W/52 with 109 WTO Members (see WTO document TN/C/W/52/Add3), a proposal 
for "modalities" covering the TRIPS is sues in negotiations in the Doha Round, i.e. the extension of the higher 
level of protection for geographical indications beyond wines and spirits, the establishment of a corresponding multilateral register, and the introduction of a mandatory disclosure requirement on patent applicants to disclose the origin of genetic resources and traditional knowledge used in the inventions. 
9 A coalition of 35 WTO Members seeking to maximize tariff reductions and achi eve real market access 
in NAMA.  
10 A coalition of 15 WTO Members seeking more disc iplines on the use of anti-dumping measures. 
11 A coalition of 16 WTO Members seeking more liberalization in trade in services. 
12 SECO (2008). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  2.2.2.1  European Free Trade Association (EFTA)  
2.15.  The EFTA is an intergovernmental organiza tion set up for the promotion of free trade and 
economic integration to the benefit of its Member s. An updated EFTA Convention was signed in 
Vaduz, Liechtenstein, on 21 June 2001 by the fo ur current Members: Iceland, Liechtenstein, 
Norway, and Switzerland and entered into force on 1 June 2002. The revised Vaduz Convention 
provided a more cohesive framework for economic relations and an improved instrument to manage internal relations, as well as those with current and potential partner countries. In 
addition, the Convention expanded the scope of EFTA to include new areas, such as trade in 
services and investment; mutual recognition of conformity assessments; the free movement of persons, social security, and mutual recognitio n of diplomas; land and air transport; public 
procurement; and intellectual property rights. Mo reover, the functions of the EFTA Council were 
broadened to reflect the historical changes in EFTA's mission, in particular with respect to EFTA's 
free-trade agreements with third countries.  
2.16.  Several amendments to the EFTA Convention have taken effect since 2008.
13 These include 
amendments on tariff concessions on agricultural products, mutual recognition, air and land 
transport, and rules of origin. In addition, in 2010, a committee on trade facilitation was established and several committees were abolished from Annex S of the EFTA Convention.
14 
During the period under review, negotiations on agriculture have been concluded among EFTA 
members and are awaiting ratification.  
2.17.  In 2010, the EFTA states together constituted the world's 11th largest merchandise trader 
and 7th largest trader in commercial services (counting the EU as one). Intra-EFTA trade was 
€2.9 billion, representing 0.6% of total EFTA trade in 2010.  
2.18.  In July 2009, Iceland made a formal request for EU membership and negotiations for 
membership were launched in June 2011. If EFTA were to lose Iceland as a member, an evaluation 
will need to be conducted of the effects on th e rest of the members (Liechtenstein, Norway, and 
Switzerland). All EFTA countries except Switzerland, participate in the European Economic Area (EEA) (section 2.2.2.2. below). 
2.19.  EFTA states benefit from a large network of free-trade agreements (FTAs). While traditional 
agreements, known as "first generation"
15, are restricted mainly to the movement of goods, 
protection of intellectual property rights, and competition regulations, more recent or "second generation" agreements cover public procurement, services, and investments.
16 I n  t h e  a r e a  o f  
trade in goods, EFTA FTAs regulate trade in indu strial products, fish, and processed agricultural 
products. Trade in basic agricultural products is covered by separate bilateral agreements concluded between each EFTA State and the respective partner, individually.  
2.20.  When preparing for negotiations, EFTA members must first coordinate their national 
interests. For each set of negotiations with a th ird country, a representative of one member state 
takes the lead as EFTA spokesperson, with the remaining members also playing an active role. The 
agreement is signed by all parties and ratified in accordance with their respective constitutional 
procedures. In EFTA's view, the multilateral and bilateral approaches are mutually supportive. 
2.21.  Since 2008, seven FTAs between EFTA and other countries have been notified to the WTO, 
bringing the total number of notified RTAs in force to 23. These additional agreements are: 
EFTA-Albania, EFTA-Colombia, EF TA-Peru, EFTA-Serbia, EFTA-Ukraine, EFTA-Hong Kong, China, 
and EFTA-Montenegro (Table A2.3). 
2.22.  Under the Early Announcement provision of the WTO Transparency Mechanism for RTAs 
(under negotiation, or signed but not yet in force), there are seven agreements between EFTA and 
other countries (Table 2.3).  
                                               
13 EFTA online information.  Viewed at:  http://www.efta.int/l egal-texts/efta-co nvention/council-
decisions-amending-the-convention.aspx . 
14 The Committee of Trade Experts,  Committee on Agriculture and Fisheries, Committee on Economic 
Development, and the Steering Committee of the Portuguese Fund. 
15 EFTA FTAs with partners in th e euro-Mediterranean area, Canada, and the Southern African Customs 
Union (SACU). 
16 The EFTA FTAs with Mexico, Singapore, Chile, Colomb ia, GCC, Republic of Kore a, Peru and Ukraine.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table 2.3 Agreements signed/under nego tiation under EFTA - RTAs under Early 
Announcement, 2012 
RTA Name RTA status Launch/First round 
of negotiations Date of 
signature 
EFTA-Bosnia and Herzegovina Under negotiation 28 March 2011 - 
EFTA-Costa Rica, Guatemala, Honduras and 
Panama Under negotiation 28 February 2012 - 
EFTA-GCC Signed - 22 June 2009 
EFTA-India Under negotiation 6 October 2008 - 
EFTA-Indonesia Under negotiation 31 January 2011 - 
EFTA-Russian Federation, Belarus, 
Kazakhstan Under negotiation 11 January 2011 - 
EFTA-Viet Nam Under negotiation 22 May 2012 - 
Source: RTA Database, WTO. 
2.2.2.2  Agreement on the European Economic Area (EEA) 
2.23.  The EEA agreement forms the legal basis for economic cooperation between the three EEA 
EFTA states (Iceland, Liechtenstein, and Norway) and the EU (27 Members). As parties to the EEA, 
the three countries are full participants in the EU's Internal Market, which is based on the principle of the free movement of goods, services, capita l, and persons, with uniform and common rules 
governing competition, including state aid. In addition, the agreement covers cooperation in 
research and development, education, social policy, the environment, consumer protection, 
tourism, and culture. The EEA Agreement provides for the on-going inclusion of new EU legislation in all policy areas covered by the EU's Internal Ma rket. In total, 6,817 EU acts are applicable at the 
end of 2012 in Liechtenstein. Switzerland, though not a member, benefits from observer status in 
the EEA EFTA structure (Box 2.1).
17 
2.24.  On trade, the EEA Agreement can be regarded as an FTA and, as such, does not include the 
following EU policies: Common Agriculture and Fisheries Policies; Common Trade Policy; Common 
Foreign and Security Policy; Justice and Home Affair s (the EFTA countries are part of the Schengen 
area); or Economic and Monetary Union (EMU).  
Box 2.1 Liechtenstein's Market Co ntrol 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), Liechtenstein must ensure 
within its territory the parallel marketability of goods under both the Swiss and EEA rules. To this 
end, Liechtenstein maintains a Market Control and Surveillance Mechanism (MCSM), which applies to 
imports subject to customs tariffs or non-tariff requirements that are different in the EEA and 
Switzerland. The MCSM is aimed at ensuring that goods that do not satisfy Swiss import 
requirements do not enter the Swiss market via th e 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. dist ributors/dealers (but not to small importers), and 
to three categories of goods (LGBl. 2009/394, Annex 1): (i) products on which Swiss and EEA import 
requirements are different (e.g. pharmaceuticals,  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 EU  on the one hand, and the EEA agreement on 
the other (i.e. fish and fish products); and (iii) sa lt (in accordance with the EEA provisions on state 
monopolies, Liechtenstein no longer participates in the Swiss state monopoly for salt 
(Chapter 3.3.4.2.7). The differences in technica l requirements between Switzerland and the EEA 
have been reduced substantially since 1995. 
                                               
17 Accession to the EEA Agreement was rejected in a referendum in Switzerland in 1992.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Under the MCSM, the Swiss Federal Customs Administration clears all imports to Liechtenstein, 
collects duties, and informs the Liechtenstein Office of Economic Affairs. Where customs tariffs differ, 
the Swiss Customs reimburses importers the duties  paid and informs them of their obligations, 
including the submission of proof of sale in Liec htenstein. Where import requirements differ, goods 
destined for Liechtenstein, in transit in Switzerl and, are registered at the Swiss Customs, which 
sends an electronic copy of the customs documents to the Liechtenstein Office of Economic Affairs for 
processing. When in doubt (e.g. whether an importer has obtained a wrongful reimbursement of 
customs duties, or has paid the required customs duties on goods re-exported to Switzerland), the 
Liechtenstein administration may launch further investigations. For this purpose, any business 
involved in the production and import of the relevant goods must appoint an official contact person. 
Wholesalers and retailers must specify in their stores that use of the products is limited to the 
Liechtenstein territory and must keep proof of sale s. Infringements of MCSM provisions are liable to 
fines of up to 20 times the amount of the custom s duties wrongfully reimbursed or unpaid, or 
imprisonment for up to 6 months. Infringements identified so far have not entailed any criminal 
action; they have led only to written reprimands. 
Source: WTO Secretariat. 
2.2.2.3  Bilateral agreements 
2.25.  The EU is by far Switzerland's most important commercial partner (Chapter 1). Swiss-EU 
relations have developed and deepened over th e decades. Since the Free Trade Agreement of 
1972, an ever denser network of agreements has been developed. After the rejection by Swiss voters of Swiss accession to the EEA in 1992, Switzerland and the EU concluded seven agreements 
(in 1999) known as Bilaterals I (Free Movement of Persons, Technical Barriers to Trade, Public 
Procurement, Agriculture, Overland Transport, Civil Aviation, and Research). These were followed in 2004 by nine agreements (Schengen/Dublin, Taxation of Savings, Fight Against Fraud, Processed Agricultural Products, Environment, St atistics, MEDIA, and Pensions, and an exchange 
of letters on Education, vocational training, youth) known as Bilaterals II. These agreements 
provide both parties with extensive market access and form the basis for close cooperation in key policy areas, such as research, security, asylum, the environment, and cultural affairs.
18 
2.26.  This bilateral approach allows Switzerland to conduct a policy of openness and close 
collaboration with all its European neighbors. These bilateral agreements have been submitted to the Swiss electorate and endorsed at regular intervals; the last approval by voters was for the 
extension of the Agreement on the Free Movement  o f  P e r s o n s ,  o n  8  F e b r u a r y  2 0 0 9 .  O n  i t s  
assessment of the Swiss European policy in 2010, the Federal Council concluded that the Swiss-EU bilateral relations remain the most suitable way for Switzerland's current european policy.
19 
2.27.  During the period under review, several bilateral agreements were amended or signed. The 
1990 Agreement on Customs Facilitation and Security, which regulates the controls and formalities 
for goods transport at the border between Switzerland and the EU and aims to simplify customs procedures, was amended following the introducti on of security measures for goods traffic 
between the EU and third countries on 1 July 2009. In order for these EU measures not to apply to 
Switzerland, Switzerland has modified the 1990 Ag reement and expanded some of its security 
aspects by negotiating with the EU. The new Agreement on Customs Facilitation and Security 
precludes the obligation to notify in advance goods traffic between the EU and Switzerland and 
governs the modalities of further cooperation between Switzerland and the EU in the area of security. The agreement was signed on 25 June 2009 and applied on a provisional basis until it entered into force on 1 January 2011.  
2.28.  Other amended or newly introduced Swiss-EU trade-related agreements include the Mutual 
Recognition Agreement (MRA), which is regularly extended and modified, the last time in December 2011. In May 2011, Switzerland and the EU signed the Bilateral Agreement on 
Protected Geographical Indications (PGIs) of agricultural products. In the autumn of 2011, 
Switzerland and the EU began negotiations on cabotage law in air transport. Further mutual 
                                               
18 See WTO document WT/TPR/S/208/Rev.1, pp. 29-31 for some background on the bilateral 
agreements. 
19 Integration Office FDFA/FDEA, "Switzerland's European Policy", September 2010. Viewed at: 
http://www.europarl.europa.eu/meetdocs/2009_2014/documents/deea/dv/0503_/0503_07.pdf . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  market access negotiations and trade liberalization are ongoing with the EU on agriculture, health, 
electricity/energy and chemicals safety. 
2.29.  In addition to the agreement with the EU , Switzerland has signed two bilateral agreements: 
an FTA with the Faeroe Islands, signed in 1995; and an FTA with Japan signed in 2009. The 
provisions of the FTA with Japan also apply to Liechtenstein, based on the Customs Union Treaty. 
On 28 January 2011, Switzerland launched negotiat ions with China to further expand its network 
of bilateral agreements.  
2.30.  During the period under review, Switzerland and Liechtenstein have not been involved in 
any disputes under their regional or bilateral agreements.20 
2.2.2.4  Non-reciprocal pr eferential arrangements 
2.31.  Switzerland grants tariff preferences to developing countries via its Generalized System of 
Preferences (GSP).21 The Swiss GSP has been revised several times since its introduction in 1972; 
the most recent revisions were in 2007 and 2011. On 1 March 2007, the Federal Law on the 
Granting of Tariff Preferences for Developing Countries (RS 632.91) entered into force, giving a strong, long-term legal basis to the Swiss GSP, which had previously been prolonged by decrees 
from the Federal Council. On 16 March 2007, the Federal Ordinance on Preferential Tariff Rates for 
Developing Countries (RS 632.911) was revised, in troducing duty-free, quota-free (DFQF) market 
access for products originating from LDCs, with  two exceptions, broken rice (HS 1006.4020) and 
sugar (HS1701.1100/9999), on which duties were released fully in September 2009. Furthermore, 
the countries that could benefit from the Swiss GSP were reconsidered, and tariff preferences for agricultural goods for all beneficiary countries  were enlarged by including most processed 
agricultural products. 
2.32.  On 1 May 2011, the revised Federal Ordinance on Rules of Origin on Tariff Preferences for 
Developing Countries (RS 946.39) entered into force, providing origin criteria identical to those 
newly adopted by the EU and Norway in their GSPs , for products of HS chapters 25-97. The main 
modifications are reductions in the number of specific rules and in the local value-added required. 
Moreover, a large number of goods from LDCs are gr anted softer rules than from other developing 
countries.
22 The list of beneficiary countries and territories was modified on 1 July 2011 and on 
15 August 2012, to take into account, among others, new free-trade agreements signed by 
Switzerland. Producers from developing countri es may take advantage of a unified European 
market with respect to origin rules. 
2.33.  According to the Swiss authorities, the Sw iss GSP utilization rate varies between 40% and 
50% of its potential because of, inter alia , the complexity of rules conferring national origin to 
goods (Chart 2.1). In 2011, goods imported into Switzerland under the Swiss GSP amounted to 
SwF 4.6 billion. This amount could have been  SwF 9.2 billion had all exporters potentially 
qualifying for the Swiss GSP made use of it. The simpler rules of origin, according to the revised ordinance, are expected to enhance access to the Swiss market for products from developing countries.
23  
                                               
20 Any dispute arising from the EFTA Convention would be dealt with according to the provisions of 
Chapter XVII of the Convention, which provides fo r consultations among member states, and dispute 
settlement through arbitration. Specific provisions on th e establishment and functioning of the arbitral tribunal 
and the implementation of arbitral awards are set out in Annex T of the EFTA Convention.  
21 UNCTAD (2013). 
22 Federal Ordinance of 16 March 2007 ( Etat 1 July 2011) on Preferential Tariff Rates for Developing 
Countries (RS 632.911), and Federal Ordinance of 30 March 2011 on Rules of Origin for the Swiss Generalized 
System of Preferences (RS 946.39). 
23 FDEA online information.  Viewed at: http://www.evd.admin.ch/aktuell/00120/index.html?lang= 
en&msg-id=38350 . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Chart 2.1 Preference utilization by deve loping countries under the Swiss GSP 
0102030405060708090100200820092010201120082009201020112008200920102011200820092010201120082009201020112008200920102011
LDC Non-LDC LDC Non-LDC LDC Non-LDC
HS 1-24 HS 25-97 HS 1-97Per cent
HS 1-24 HS 25-97 HS 1-97LDC Non‐LDC LDC Non‐LDC LDC Non‐LDC
 
Source: Information provided by the authorities. 
2.2.3  Investment regime 
2.2.3.1  Switzerland 2.34.  Economic freedom, which is guaranteed under the Swiss Constitution, allows nationals and 
foreigners to operate a business in Switzerland, to form a company or to hold an interest in one.
24 
In general, to establish a business, there is no requirement for approval by the authorities, 
membership of chambers of commerce or professional associations, or annual reporting of operating figures. However, foreign nationals must have both work and residence permits in order 
to conduct business on a permanent basis. 
2.35.  Most economic sectors are open to investment by Swiss nationals and foreigners. However, 
investment restrictions continue to apply to areas under state monopolies, including certain rail 
transport services, some postal services, and certain insurance services and commercial activities 
(e.g. trade in salt). Restrictions (in the form of domicile requirements) are also applied in air and maritime transport
25, hydroelectric and nuclear power, operation of oil and gas pipelines, and 
transportation of explosive materials.  
2.36.  Licensing provisions and diploma requir ements may apply to some professions and/or 
commercial activities, such as banking, insurance, and investment brokerage; hotels and restaurants; physicians, dentists, pharmacists, and attorneys; and certain mercantile and services 
businesses (e.g. wine merchants, private employment agencies, and temporary employment 
services). 
2.37.  Swiss company law distinguishes mainly between partnership-type unincorporated 
companies (sole proprietorship, limited partnership or general partnership), and capital-based 
incorporated companies (stock corporation or AG , limited liability company or GmbH). The newly 
created (2006) "limited partnership for collective investment" corresponds to the limited partnership form common in English-speaking countries. Approximately 50% of Swiss companies 
operate under the AG and GmbH legal forms (Table 2.4). 
                                               
24 The Code des Obligations  is the main legal basis for investment in Switzerland. 
25 Two thirds of the partners of a ship ping company must be Swiss nationals. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table 2.4 Overview of main legal forms of companies in Switzerland  
 Sole 
proprietorship General 
partnership Joint stock 
company (AG) Limited liability 
company 
(GmbH)  Branch office 
Formation 
requirements  Self-
employment, 
economic activity as a means of permanent gainful 
employment Signing of 
partnership 
(informal) 
If no commercial 
activity is pursued, the partnership does not exist until it is entered in the commercial 
register Public act of 
signing when 
company is created, adoption of articles of incorporation or association, appointment of a 
board of 
directors, appointment of auditors (unless dispensed with pursuant to 
CO 727a II)
26 Public act of 
signing when 
company is founded, adoption of articles of incorporation or association, appointment of a 
board of 
management and representatives, appointment of auditors (unless dispensed with pursuant to 
CO 727a II) Entry in the 
commercial 
register 
Purpose  Small 
businesses, 
activities carried 
out by single 
individuals (e.g. 
artists)  Small, 
permanent 
businesses 
centering on 
specific 
individuals  Suitable for 
almost all types 
of for-profit 
businesses Small and 
medium-size 
businesses  Business 
operation that is 
legally part of a 
main enterprise 
but has a degree 
of economic 
independence 
Legal status  Sole property of 
the firm's owner Partnership  Legal entity  Legal entity  Branch office  
Entry in the 
Commercial 
Register (CR)  Mandatory for 
businesses with 
minimum annual 
turnover of 
SwF 100,000 Mandatory  Becomes a legal 
entity upon entry 
in the CR Becomes a legal 
entity upon entry 
in the CR Mandatory  
Founders  One individual is 
the sole 
proprietor Two or more 
individuals  At least one 
shareholder 
(individual or 
legal entity) At least one 
partner 
(individual or 
legal entity) Main company  
(head office) 
Executive 
bodies  None  Partners  General meeting 
of shareholders; 
Board of 
directors (at 
least one 
member) General meeting 
of partners; 
Management (a 
minimum of one 
member) Bodies of the 
main company; 
Management by 
own manager; 
authorized 
representative 
residing in 
Switzerland 
Liability Unlimited liability 
of the proprietor 
with personal 
assets  Primary liability 
to the level of 
company assets (capital); subsidiary joint 
and several 
unlimited liability of each partner with personal 
assets Liability limited 
exclusively to 
company assets; each shareholder is solely obliged 
to pay in 
his/her/its share of the share capital (payment under 
subscription) Liability limited 
exclusively to 
company's assets: optional limited liability to 
make further 
contributions according to articles of association; liability only for further contributions linked to own 
share in equity Main company  
(head office) 
                                               
26 Code des Obligations Suisse  (CO), Article 727 a II. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 36 - 
 
   Sole 
proprietorship General 
partnership Joint stock 
company (AG) Limited liability 
company 
(GmbH)  Branch office 
Minimum 
capital No stipulations No stipulations Minimum: 
SwF 100,000,  
Minimum paid in: 
SwF 50,000 Minimum: 
SwF 20,000 No separate 
equity is required 
(capital 
resources of 
foreign head 
office are 
sufficient) 
Costs: 
foundation, 
consulting registration, 
notary SwF 700 to 
1,200 SwF 2,400 to 
4,400 From SwF 1,900 
(electronic) From 
SwF 7,000 
(traditional) From SwF 1,800 
(electronic) from 
SwF 6,000 
(traditional) From SwF 1,000 
Source: OSEC online information, Handbook for Investors: Busine ss Location in Switzerland , April 2012. 
Viewed at: http://invest-in-switzerland.com . 
2.38.  Formation of a company takes two to four  weeks, on average, from submission of the 
required documents to the date of legal establishment. The time can be shorter depending on the 
business and the specific canton. Foreign operations located in Switzerland generally take the form of a stock corporation (AG). However, if the Swiss branch is being established as a sole 
proprietorship, a general partnership or a limited partnership, the foundation process may be 
handled entirely online via the government SME portal.
27 This online process includes documents 
required for registration of a sole proprietorsh ip in the Commercial Register, for value-added tax 
(VAT), and for social insurance obligations. In gene ral, any trading, manufacturing or other form of 
commercial company must be registered in the Commercial Register. All entries and/or deletions 
from the Commercial Register are published in the Swiss Official Gazette of Commerce  (SOGC).28 
2.39.  The World Bank ranks Switzerland 26th (out of 183 countries) for ease of doing business, 
with an average of 85 days to start a business, based on the procedures, time, cost, and paid-in 
minimum capital for starting a business.29 
2.40.  Due to Switzerland's federal structure, taxes levied on businesses may be federal, cantonal 
and/or communal.30 
2.41.  As at end 2012, Switzerland had signed double-taxation conventions with 86 countries31; 
and 130 bilateral investment treaties (BITs), kn own as investment promotion and protection 
agreements. After Germany and China, Switzerland has the world's third largest network of such 
agreements. Switzerland ratified the Multilateral Investment Guarantee Agency (MIGA) Convention 
in 1988. It has also been contracting party to the Convention on the Settlement of Investment 
Disputes between States and Nationals of Other States since 1968. 
2.2.3.2  Liechtenstein  
2.42.  Liechtenstein has a stable and predictable investment regime. Most sectors are open to 
national and foreign investment, except for reside ncy requirements; restrictions on the purchase 
of real estate; restrictions in production, trade, an d transport of electricity, gas, and water (subject 
to state monopoly); and restrictions applied to a number of financial services (asset management, investment consulting, and assuming trusteeships) when these are provided on a professional basis by trustees or trust companies. 
2.43.  A permit or a licence is required to do business, with specific licensing requirements for 
financial sector companies and professional services. The establishment of a commercial entity by a natural person is subject to prior permanent re sidence during 12 years for citizens of non-EEA 
member states (other than Switzerland). For "qualified" professions, sector-specific 
                                               
27 Online information. Viewed at: http://www.kmu.admin.ch/.  
28 Swiss Official Gazette of Commerce . Viewed at : https://www.shab.ch . 
29 World Bank (2012). 
30 See WTO document WT/TPR/S/208/Rev.1 (pages 34-36) , for a detailed presentation of Switzerland's 
tax system. 
31 Online information. Viewed at: http://www.sif.admin.ch/themen/00502/00740/index.html?lang=en . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  government-recognized professional qualifications are required.32 Companies wishing to operate 
commercially in Liechtenstein must submit an application for a commercial licence to the Office of Economic Affairs. In order to be granted the licence, a manager who meets the 12-year prior-residence and professional-qualification requ irements must be appointed. All entities (of 
natural or legal persons) must have an office in Liechtenstein that is suitable to carry out the 
business. 
2.44.  Liechtenstein corporate forms are regulated under the law on Persons and Companies Law 
of 1926, known as the "PGR Code". Trust companies are established under the Trust Enterprise 
Law of 1928. The most common entities established under the PGR Code include public limited companies, establishments, and foundations (Table A2.4). All corporate bodies established under the PGR Code must be registered with the Public  Register. Processing by the Public Registrar 
usually takes two to three days. In January 2012, the agency "Liechtenstein Marketing" was 
established to promote, inter alia , foreign investment and tourism. 
2.45.  Since 1 January 2011, Liechtenstein has a new tax regime with a corporate income tax rate 
of 12.5% for all economically active companie s (Table 2.5). The special tax treatment of 
domiciliary or holding companies was abolished since this special tax type threatened to violate the EEA Agreement with respect to the prohibition of state aid.
33 The 2011 Tax Act contains a 
provision on non-economically-active "private asset structures" that is compatible with EEA law.34 
Public enterprises not engaged in economic activities; institutions for occupational retirement; or legal entities conducting exclusively charitable  activities are tax exempt. The 2011 Tax Act also 
contains a provision regarding intellectual property related income (IP-Box) that is compatible with 
EEA law.
35 
Table 2.5 Liechtenstein corporate taxes and other selected taxes, 2012  
Tax base Standard tax rates 
Corporate income tax (annual): annual net income 12.5% (minimum SwF 1,200) 
Private asset structures SwF 1,200 
Formation tax: formation of share capital (applicable 
only when the Swiss provisions on stamp duties do 
not apply)  Capital > SwF 1,000,000: 1% 
Capital > SwF 5,000,000: 0.5% 
Capital > SwF 10,000,000: 0.3% 
Real-estate gains tax (per sale of real estate located 
in Liechtenstein) Maximum 21% 
Personal income tax (worldwide income) Maximum 21% 
Net wealth tax (worldwide net assets) 
Intellectual property related income  Maximum 0.84% 
80% of net income is tax-exempt  
Note: Private asset structures are legal entities that  do not carry out any economic activities and that 
exclusively acquire, hold, administer, and sell financial instruments, as well as participations in other legal entities, cash, and bank account balances. A private asset structure may hold participations only under the condition that such structure, its shareholders or beneficiaries do not exert actual 
control, direct or indirect, on the manage ment of such companies through influence. 
Source: Information provided by the Liechtenstein authorities. 
2.46.  As a result of the Savings Agreement between Liechtenstein and the EU, Liechtenstein has 
been imposing, since 1 July 2005, a withholding tax on interest and other savings returns paid to beneficial owners resident in EC countries.
36 In 2011, the applicable rate reached the maximum of 
35%. The Swiss Federal Law on stamp duty applies under the Customs Union Treaty.  
                                               
32 There are 64 "qualified" or regulated professions. Viewed at: 
http://www.gesetze.li/Seite1.jsp?LGBl=2011226.xml& Searchstring=gewerbeverordnung&showLGBl=true . 
33 For companies existing as at 1 January 2011, a gr andfathering of three years applies until end 2013. 
34 The compatibility of this new provision with EEA law was confirmed by a decision of the EFTA 
Surveillance Authority on 15 February 2011. Viewed at: http://www.eftasurv.int/media/decisions/44-11-
COL.pdf . 
35 The compatibility of this new provision with EEA law was confirmed by a decision of the EFTA 
Surveillance Authority on 12 December 2012.  Viewed at: http://www.eftasurv.int/media/decisions/480-12-
COL.pdf . 
 36 Liechtenstein allows beneficial owners to avoid the withholding tax by expressly authorizing their 
Liechtenstein paying agents to report  the interest payments to the competent authorities in their countries of 
residence. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  2.47.  Since 2009, Liechtenstein has been creating a network of tax information exchange 
agreements (TIEA) and double taxation agreements (DTA).37 All TIEAs and 6 of the 8 DTAs are in 
accordance with the OECD model conventions. Liechtenstein has not concluded any bilateral investment protection treaties. 
 
                                               
37 19 TIEAs are currently in force (December 2012) with: Andorra; Antigua and Barbuda; Australia; 
Denmark; Faeroe Islands; Finland; France; Germany; Greenland; Iceland; Ireland; Monaco; Netherlands; 
Norway; St. Kitts and Nevis; St. Vincent and the Grenadines; Sweden; United Kingdom; and the United States. 
8 DTAs are currently in force with: Austria; Germ any; Hong Kong, China; Luxemburg; San Marino; 
Switzerland; United Kingdom; and Uruguay. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports 3.1.1  Customs procedures and trade facilitation  3.1.  Customs procedures in Switzerland and Liec htenstein continue to improve with the aim of 
facilitating trade while securing their borders, and protecting consumers and the environment. A 
customs declaration may be made prior to the arrival of the merchandise, electronically through the e-dec for imports and exports (an electronic system with registration for professionals) or in 
written form; for tourists,  customs declarations may be made verbally.
1 Most customs procedures 
are done electronically. An electronic customs declaration is obligatory for imports of, inter alia , 
agricultural goods subject to tariff quotas (with some exceptions)2, and for certain alcoholic 
beverages that are to be put in a bonded warehouse. However, a paper customs declaration is 
possible when an electronic one is not prescrib ed or if the importer has not been granted 
permission to file an electronic customs declaration.3 According to the authorities, as of 
1 January 2013, all commercial customs declarations must be in electronic format under a new 
system known as "e-dec-web". This system is free of charge, requires no registration and replaces 
the Single Administrative Document (SAD). It aims to assist small and medium-sized companies.  
3.2.  Documentation requirements for customs clearance for exports and imports include the 
customs declaration, commercial invoice, bill of lading, and certificates for preferential tariffs, 
health, or quality control purposes. Customs is the only agency at the border and therefore, 
Switzerland does not have a "single window" for the release and clearance of goods. 
3.3.  Switzerland has been a member of the Schengen Agreement since 2008. As a result of the 
Agreement, cooperation between participating countr ies in border controls has been strengthened; 
this also involves joint cross-border activities. 
3.4.  The 1990 Agreement on Customs Facilitation  and Security between Switzerland and the EU 
was amended following the introduction of security  measures on goods traffic between the EU and 
third countries on 1 July 2009. While the amended agreement precludes the obligation to notify in advance goods traffic between the EU and Switzerlan d, traders from third countries are required to 
submit a prior notification requirement and are su bject to a security risk analysis. The agreement 
was signed on 25 June 2009 and applied on a provisional basis until it entered into force on 1 January 2011. In order to help facilitate customs procedures for non-EU traders, Switzerland has adopted an authorized economic operator (AEO) system, which aims to ease customs security 
regulations for accredited companies. 
3.5.  Due to its geographical location and its excellent infrastructure, Switzerland is a transit 
country. Import duties must be secured temporarily (through a cash deposit or a guarantee) for 
goods in transit through Switzerland. For more  than 90% of transit procedures for goods 
transported by road, duties are secured by a gu arantee valid for several transit procedures. Any 
applicable bans or restrictions must also be observed. Switzerland mainly uses the two most 
important international transit procedures in commercial goods traffic: the New Computerised 
Transit System (NCTS) and the TIR procedure. No transit duties or fees are levied. The transit 
procedures are also applied for moving goods to or from Switzerland as more than 75% of the goods are cleared by Customs at the premises of authorized consignees or consignors inland. 
3.6.  The Swiss Federal Customs Administration  may issue an advance binding ruling of the 
preferential origin of a good, pursuant to Arti cle 20 of the Customs Law. The application for a 
binding assessment must be presented in writing to the customs authorities in the country where 
the applicant is domiciled. Such assessments remain valid for six years provided the facts and 
conditions under which they have been made remain comparable.  
3.7.  Switzerland is active in the Negotiating Group on Trade Facilitation (NGTF), where it supports 
a multilateral agreement on trade facilitation an d has tabled and co-sponsored several proposals. 
                                               
1 RS 631.013. 
2 Refer to RS 631.013, for the list of the exceptions. 
3 Federal Customs Administration ordinance on cu stoms (RS 631.013), Chapter 2, section 2 indicates 
when importers are not authorized to ma ke an electronic customs declaration. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Customs-related proposals include the temporary admission of goods/inward and outward 
processing4; customs brokers5, transit6, risk management7, pre-arrival processing8, separation of 
release from clearance9, use of international standards10, and acceptance of commercially available 
information and copies.11 Other proposals include publication and availability of information12, 
establishment of a national committee on trade facilitation13, reduction/limitation and periodic 
review of formalities and documentation requirements14, prior publication and consultation15, and 
fees and charges.16 
3.8.  Customs account for more than one thir d of the Confederation's total revenue. In 2011, 
customs revenue amounted to SwF 23.5 billion, with VAT alone accounting for 51% of total customs revenue, and import duties accounting for 4% (Chart 3.1 ). Customs revenue collected by the Swiss Federal Customs Administration is shared with Liechtenstein on a per capita basis.   
Chart 3.1 Customs revenue distribution, 2011 
Value-added tax (11.8 bn, 51%)SwF billion
Import duties (1.0 bn, 4%)
Tobacco duty
(2.2 bn, 9%)Heavy-vehicle charge  (1.6 bn, 7%)
Mineral oil tax (5.0 bn, 21%)Other receipts (1.9 bn, 8%)a
 
a CO 2 tax, automobile duty, motorway tax stickers, volatile organic compounds tax, beer tax, etc. 
Source: Swiss Federal Customs Administration (2012), Facts and figures 2011 (2012 edition). Viewed at: 
http://www.ezv.admin.ch/dokumentation/01854/01856/index.html?lang=en . 
3.1.2  Customs valuation and rules of origin 
3.1.2.1  Customs valuation 
3.9.  As both Switzerland and Liechtenstein levy only specific duties, neither country has specific 
legislation on customs valuation; however, they do need to assess customs value for 
internal-taxation purposes, since the value-added tax and the motor vehicle tax are both 
ad valorem  (section (3.1.4). Goods are normally cleared on the basis of their gross weight (in 
most cases); this dutiable weight comprises the actual (net) weight (the actual weight of the 
goods, and the weight of the immediate packin g materials), plus the weight of the packing 
                                               
4 WTO document, TN/TF/W/170, 17 March 2010. 
5 WTO document, TN/TF/W/110/Rev.2, 5 October 2009. 
6 WTO document, TN/TF/W/133/Rev.3, 26 June 2009. 
7 WTO document, TN/TF/W/164, 11 November 2009. 
8 WTO document, TN/TF/W/117/Rev.1, 20 February 2009. 
9 WTO document, TN/TF/W/136/Rev.2, 28 November 2008. 
10 WTO document, TN/TF/W/131/Rev.1, 14 December 2007. 
11 WTO document, TN/TF/W/112, 6 June 2006. 
12 WTO document, TN/TF/W/155/Rev.2, 3 August 2009. 
13 WTO document, TN/TF/W/158, 23 February 2009. 
14 WTO document, TN/TF/W/124/Rev.2, 7 February 2008. 
15 WTO document, TN/TF/W/115/Rev.1, 20 October 2007. 
16 WTO document, TN/TF/W/107, 6 June 2006. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  material for protection during transport, including the weight of fixing material and supports on 
which the goods are placed.17 The gross weight is rounded up.18  
3.1.2.2  Rules of origin 3.10.  Switzerland and Liechtenstein apply both no n-preferential and preferential rules of origin. 
They apply the same non-preferential rules of origin, which continue to be regulated by the 
Ordinance on attestation of the non-preferential origin of goods.
19 
3.11.  Preferential rules of origin are established under the Regional Convention on 
Pan-euro-Mediterranean Preferential Rules of Origin, free-trade agreements concluded with 
countries outside the Pan-Euro-Mediterranean zone, and pursuant to the GSP scheme.20 Exporters 
may benefit from tolerance rules and the various forms of cumulation permitted under the respective agreements.  
3.12.  The rules of origin under the EFTA FTAs with third countries are modelled closely on the 
Pan-Euro-Mediterranean rules of origin. Protocol 3 to the Free Trade Agreement between Switzerland and the European Union sets out the preferential rules of origin. The Pan-European 
Origin Cumulation System, which entered into force on 1 January 1997, allows the use of any 
material from any country within the zone (EFTA, EU, and Turkey) to produce a good, whilst retaining preferential origin. This diagonal cumulation system is being extended gradually to the 
Faroe Islands and to Mediterranean countries and territories participating in the 
euro-Mediterranean partnership (i.e. to Egypt, Is rael, Jordan, Lebanon, Morocco, Tunisia, the West 
Bank, and the Gaza Strip). Pursuant to the Federal Ordinance on the revised rules of origin for the Swiss GSP, which entered into force on 1 May 2011, Switzerland's GSP rules of origin have been 
harmonized with the EU, including the rules contained in Commission Regulation (EU) 
No. 1063/2010 of 18 November 2010.  
3.1.3  Tariffs  
3.1.3.1  General features 
3.13.  Under the 1923 Customs Union Treaty, Switze rland acts on behalf of Liechtenstein in 
customs matters; the Swiss tariff generally applies to imports to Switzerland and Liechtenstein. 
There have been no major changes in the Swiss tariff since 2008. The tariff comprises only specific 
rates and affords higher protection to agricultural products than to non-agricultural goods. Imports are taxed according to the federal Law on customs tariffs, generally on the basis of gross weight (section 3.2.2.1). 
3.14.  Under the Federal Customs Law on Tariffs
21, the Federal Council may modify tariffs for the 
customs union through an ordinance. The modifications are temporary until approved by the Federal Assembly. Any tariff increase would be ma de only after a case-by-case evaluation, which 
takes into account the needs of the Swiss economy. No such measures were taken during the 
period under review.  
3.15.  Seasonal tariffs apply to some 95 products and are levied mostly on fruits and vegetables 
produced domestically, most of which are also subject to tariff quotas.  
                                               
17 Unpacked goods and those whose package is deemed  not to provide "sufficient" protection against 
damage during transportation, are liable to an "additional tare", a supplement equal to the difference between the gross and net weights. The "additional tare" is ex pressed as a percentage of the net weight and is 
stipulated by HS tariff line in the Ordinance  sur la tare  (RO1987 2652), and varies from 100% for goods whose 
net weight is almost nil (petroleum gases and other ga seous hydrocarbons), to 5%. Goods may also be cleared 
on the basis of net weight if the import er so requests:  in this case, if there is no set "additional tare" rate for 
the specific item, a statutory rate of 10% applies. 
18 RS 632.10. 
19 See RS 946.31. 
20 See WTO document WT/TPR/S/208/Rev.1 for a detailed presentation of the preferential rules of origin 
in Switzerland and Liechtenstein. 
21 Loi sur le tarif des douanes,  RS 632.10. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 42 - 
 
  3.16.  Tariff quotas apply to agricultural products (3.8% of all tariff lines) and cover, inter alia , live 
animals, eggs, bovine semen, cut flowers, pota toes, fresh and frozen vegetables, fresh fruits, 
wine, and certain cereals. Tariff quotas may be modi fied, mostly as a result of domestic shortages. 
Thus, imports above the specified quotas are in some instances allowed at the in-quota tariff rates 
(Chapter 4.2). The process of quota allocation varies according to product (A4.1). All of the 
preferential agreements concluded by Switzerland an d Liechtenstein also include preferential tariff 
quotas (Table 3.1). Allocation of MFN and preferen tial quotas is indistinguishable. An electronic 
application system ("e-quota") is used. 
Table 3.1 Tariff quotas, by trade regime, 2012 
Trade regime No. of tariff lines 
MFN  314 
EU 41 
EFTA 25 
Albania 97 
Botswana 188 
Canada 3 
Chile 169 
Colombia 184 
Croatia 57 
Egypt 86 
Faeroe Islands 2 
Former Yugoslav Republic of Macedonia 67 
Hong Kong, China 25 
Israel 41 
Japan 131 
Jordan 79 
Korea, Rep. of  183 
Lebanon 100 
Lesotho 0 
Mexico 42 
Montenegro 104 
Morocco 94 
Namibia 188 
Palestine 30 
Peru 184 
Serbia 104 
Singapore 5 
South Africa 188 
Swaziland 188 
Tunisia 19 
Turkey 38 
Ukraine 111 
GSP 180 
LDC 0 
Source:  WTO, IDB. 
3.1.3.2  Applied MFN tariff 
3.17.  The Swiss/Liechtenstein tariff comprises only specific duties with ad valorem  equivalents 
ranging from zero to 1,676%, up from 1,468.7% in 2008.22 Some 83.6% of all lines carry rates up 
                                               
22 Despite the seeming simplicity of the administration of specific duties, their shortcomings include lack 
of transparency and predictability; and due to the disparate levels of protec tion afforded to similar goods, as 
the basis of the tariff is (in general) the weight of imported goods, its impa ct tends to be higher on relatively 
heavy and cheap goods than on expensive and light products  within the same tariff line. In particular, over the 
review period (mainly 2011-12), the downward trend in the global prices of agricultural goods and the strong 
appreciation of the Swiss franc have led to high ad valorem  equivalents of specific duties. For more on the 
shortcomings of specific du ties, see WTO (2001), Box III.1. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  to 10% (Chart 3.2).23 Tariff protection varies substantially across and within sectors, averaging 
31.9% for agricultural products and 2.3% fo r non-agricultural goods (WTO definitions). 
3.18.  Duty-free treatment applies to 18.7% of all tariff lines (18.3% of WTO agricultural lines and 
18.8% of non-agricultural lines), including nuts, fr uits, tea, some cereals, seeds, cocoa, vanilla, 
live animals, fish and crustaceans, animal and vegetable fats, petroleum, certain chemicals, raw 
silk, wool, cotton and jute, base metals, and products granted duty-free treatment under the 
Pharmaceutical Initiative24, the Information Technology Agreement, and the Plurilateral Agreement 
on Trade in Civil Aircraft. Another 38.8% of lines bear non-zero rates of less than 2% (nuisance 
rates). The maximum rate (on an AVE basis) of 1, 676% applies to frozen bovine offal, other than 
tongue and liver (HS 0206.2990). 
Chart 3.2 Breakdown of applied MFN tariffs, 2012 
(18.7)(64.9)
(4.7)(2.1) (1.1) (0.8)(3.5)
0102030405060708090100
01,0002,0003,0004,0005,0006,0007,0008,000
0 0-10 >10-20 >20-30 >30-40 >40-50 >50Number of tariff lines Per cent
Number of lines 
Cumulated percentage (right-hand scale)
 
Note: Figures in parentheses indicate the share of total lines. Calculations exclude in-quota rates. They do 
not add to 100% since some AVEs were not available (4.3% of all lines).  
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.19.  The tariff structure has changed little since th e last Review of Switzerland and Liechtenstein. 
The adoption of the HS2012 tariff nomenclature increased the total number of tariff lines to 8,299. 
As a result, and following the downward trend in th e global prices of agricultural products and the 
strong appreciation of the Swiss franc (with likely  increases in the AVEs of specific duties), the 
overall simple average rate of the 2012 applied MFN rate tariff increased to 9.2%, up from 8.1% in 
2008 (Table 3.2). The coefficient of variation of 5. 3 (4.8 in 2008) depicts high dispersion of the 
tariff rates (the ad valorem  equivalents); the high dispersion is a consequence of specific tariffs 
(with highly dispersed AVEs), generally higher on agricultural products than on non-agricultural goods. However, some international tariff peaks al so apply to certain non-agricultural products, 
including textiles and clothing items (HS Chapters 54, 56, and 63).
25 
                                               
23 The AVEs used in this analysis are calculated as th e ratio of specific duties to import unit values, 
estimated by the ratio of import values to import quanti ties/volumes in 2011 (at the HS eight-digit level).  If 
no import data were available for 201 1, 2010 import data were used.   
24 The list of pharmaceutical prod ucts concerned includes items of HS chapter 30; HS headings 2936, 
2947, 2939, and 2941. 
25 There is a discrepancy between the actual number of lines in the tariff (8,299) and the number of 
lines used in the tariff analysis (7,942) due to the absence of trade data for the calculation of AVEs for certain tariff lines.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 44 - 
 
  Table 3.2 Structure of MFN tariffs, 2012 
(%) 
  2012 Final bound 
1.  Bound tariff lines (% of all tariff lines) 99.0 99.0 
2 Simple average tariff rate 9.2 13.3 
 Agricultural products (WTO definition) 31.9 49.7 
 Non-agricultural products (WTO definition) 2.3 2.4 
 Agriculture, huntin g, forestry and fishing (ISIC 1) 23.5 38.2 
 Mining and quarrying (ISIC 2) 0.5 0.6 
 Manufacturing (ISIC 3) 7.8 10.8 
3.  Specific tariffs (% of all tariff lines) 100.0 100.0 
 Duty-free tariff lines (% of  all tariff lines) 18.7 15.4 
4.  Non-ad valorem  tariffs with no AVEs (% of all tariff lines) 4.3 5.2 
5.  Simple average rate of dutiable lines only 11.4 15.9 
6.  Tariff quotas (% of all tariff lines) 3.8 3.8 
7.  Domestic tariff peaks (% of all tariff lines)a 5.8 7.4 
8.  International tariff peaks (% of all tariff lines)b 8.9 11.9 
9.  Coefficient of variatio n of tariff rates 5.3 4.2 
10. Nuisance applied rates (% of all tariff lines)c 38.8 37.7 
a Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate (indicator 6). 
b International tariff peaks are defined as those exceeding 15%. 
c Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: All tariff calculations exclude in-quota lines. The 2012 tariff is based on HS2012 nomenclature, 
consisting of 8,299 tariff lines (at the 8-digit tariff line level). Ad valorem  equivalents (AVEs) were 
estimated based on 2011 Swiss import data at the 8-digit tariff line level. If no import data were available for 2011, 2010 import data were used in calculations. However, some non- ad valorem  
equivalents could not be estimated since there were no imports in 2010 and 2011, hence around 4.3% for applied MFN and 5.2% for bound tariffs of  total lines have been considered as empty (no 
rate). 
Source:  WTO Secretariat calculations, based on da ta provided by the Swiss authorities. 
3.20.  In general, the tariff continues to depict negative escalation from the first stage of 
processing (raw materials), at an average tariff rate of 15.3%, to the second stage 
(semi-manufactured products), at an average tari ff rate of 3.2%. However, the tariff then shows 
positive escalation to fully processed products, wh ich have an average rate of 10.7% (Table 3.3). 
3.21.  In total, at the conclusion of the Uruguay Round, Switzerland and Liechtenstein bound 99% 
of their tariff lines using specific duties on agricultural products and alternate duties on other 
products; unbound tariff lines cover 86 lines for gas, petroleum, and related products.  
Table 3.3 Summary of tariff analysis, 2012 
 Number of 
lines Average 
(%) Range (%)  CVa Share of 
duty-free 
lines (%) 
Total 8,299 9.2 0-1,676 5.3 18.7 
HS 01-24 2,310 29.0 0-1,676 3.2 23.2 
HS 25-97 5,989 2.4 0-160 1.9 17.0 
By WTO category      
WTO agricultural products 2,134 31.9 0-1,676 3.1 18.3 
Animals and products thereof 173 125.5 0-1,676 2.2 9.8 
Dairy products 58 101.5 1-1,295 1.8 0.0 
Fruit, vegetables, and plants 617 28.1 0-549 2.0 14.9 
Coffee and tea 62 8.4 0-76 1.4 16.1 
Cereals and preparations 426 20.8 0-265 1.3 10.3 
Oils seeds, fats, oil and their 
products 394 22.5 0-137 1.5 19.0 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   Number of 
lines Average 
(%) Range (%)  CVa Share of 
duty-free 
lines (%) 
Sugars and confectionary 58 6.9 0-60 1.3 25.9 
Beverages, spirits and tobacco 124 25.1 0-509 2.1 8.9 
Cotton 6 0.0 0 0.0 100.0 
Other agricultural products, n.e.s. 216 5.8 0-230 3.9 56.0 
WTO non-agricultural products 6,165 2.3 0-71 1.7 18.8 
Fish and fishery products 254 0.5 0-29 4.9 75.2 
Minerals and metals 1,286 1.7 0-25 1.4 12.2 
Chemicals and photographic 
supplies 1,083 1.1 0-25 2.2 38.2 
Wood, pulp, paper and furniture 343 4.4 0-28 1.2 21.3 
Textiles 766 6.4 0-71 1.0 1.2 
Clothing 332 5.5 1-28 0.7 0.0 
Leather, rubber, footwear and 
travel goods 178 1.9 0-12 1.0 3.4 
Non-electric machinery 855 0.7 0-13 1.3 15.9 
Electric machinery 381 1.0 0-8 1.2 16.0 
Transport equipment 183 1.6 0-21 1.6 9.8 
Non-agricultural products, n.e.s. 483 1.5 0-17 1.4 15.3 
Petroleum 21 0.0 0 0.0 100.0 
By ISIC sector b      
ISIC 1 - Agriculture, hunting and 
fishing 881 23.5 0-1,295 3.0 26.7 
ISIC 2 - Mining and quarrying 105 0.5 0-14 3.2 62.9 
ISIC 3 - Manufacturing 7,312 7.8 0-1,676 5.9 17.1 
By stage of processing      
First stage of processing 1,402 15.3 0-1,295 3.7 34.5 
Semi-processed products 2,459 3.2 0-72 2.0 18.3 
Fully processe d products 4,438 10.7 0-1,676 5.4 13.9 
a CV = Coefficient of variation. 
b International Standard Industrial  Classification (Rev.2). Electric ity is excluded (1 tariff line). 
Note: Calculations for averages are based on the nati onal tariff line level (8-digit), excluding in-quota 
rates. Ad valorem  equivalents (AVEs) were estimated based on 2011 Swiss import data at the 8-
digit level. If no 2011 data were available, 2010 data were used in calculations. However, some AVEs could not be estimated since there were no imports in 2010 and 2011, hence around 4.3% of total lines have been considered as empty (no rate). 
Source:  WTO Secretariat calculations, based on data  provided by the Swiss authorities.  
3.1.3.3  Tariff preferences 
3.22.  Under the 1923 Customs Union Treaty between  Switzerland and Liechtenstein, all goods are 
traded freely between the two countries. The bila teral agreements between the European Union 
and Switzerland, and the EEA Agreement (for Li echtenstein) provide for free trade in most 
non-agricultural products, subject to a valid certificate of origin. In contrast, in general, 
agricultural goods are not subject to preferential tariffs when they are imported into the customs 
union. For example, average tariff protection is 29.6% from the EU and 30% for goods originating 
in other EFTA members, compared with average MFN protection of 31.9% (Table 3.4). 
3.23.  Switzerland and Liechtenstein are parties to 24 free-trade agreements under the ambit of 
EFTA.26 Under these agreements, duty-free treatment is  granted to 99.9% of all non-agricultural 
imports, while preferences are granted on a limited  range of agricultural products. As a result, 
agricultural (WTO definition) preferential tariff averages range from 29.3% to 31.7% depending on 
the country, compared with an MFN tariff average of 31.9%. Under the 1923 Customs Union 
Treaty between Switzerland and Liechtenstein, the provisions on trade in goods of the bilateral 
                                               
26 Eight of the agreements have entered into force since 2008: EFTA-Canada, EFTA-Colombia, 
EFTA-Albania, EFTA-Serbia, EFTA-Peru, EFTA-Ukraine, EFTA-Montenegro, and EFTA-Hong Kong, China. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Free Trade and Economic Partnership Agreement be tween Switzerland and Japan apply also to the 
territory of Liechtenstein. 
3.24.  Under their GSP scheme, Switzerland and Li echtenstein grant non-reciprocal preferential 
tariff treatment to eligible countries, as well as additional preferences to least developed countries 
(LDCs).27 LDCs benefit from substantial preferences, which have increased since 2008, from 
99.6% to 100% of agricultural tariff lines28 (WTO definition); all LDC non-agricultural products are 
entitled to duty-free treatment. In contrast, pr eferences granted on agricultural goods under the 
GSP do not vary substantially from the prefer ences granted under agreements concluded under 
the EFTA. Average tariff protection under the GSP is 30% for agricultural goods compared with MFN protection of 31.9%; moreover, the average preferential tariff on non-agricultural goods 
under the GSP is higher (0.5%) than under the free-trade agreements (zero). 
Table 3.4 Tariffs under preferential agreements, 2012  
  Simple average 
tariff rate (%)   Duty-free rates as a 
percentage of total 
tariff lines in each 
category (%)   Non- ad valorem  rates as a percentage of 
total tariff lines in each category (%) Overall 
WTO Agriculture 
WTO non-agriculture 
  
Overall 
WTO Agriculture 
WTO non-agriculture 
  
Overall 
WTO Agriculture 
WTO non-agriculture 
Animals and products 
Dairy products 
Fruits, vegetables and 
plants 
MFN 9.2 31.9 2.3  18.7  18.3 18.8  81.3 81.7 81.2 90.2 100.0  85.1 
Reciprocal                
Albania 7.0 30.2 0.0  82.9  33.7 99.9  17.1 66.3 0.1 89.6 100.0  59.2 
Botswanaa 6.9 29.6 0.0  83.9 37.6 99.9  16.1 62.4 0.1 78.6 96.6 56.1 
Canadaa 7.1 30.6 0.0  80.9  26.0 100.0   19.1 74.0 0.1 89.0 100.0  79.7 
Chile 7.0 30.4 0.0  82.5 32.2 99.9  17.5 67.9 0.1 82.1 100.0  61.8 
Colombiaa 6.8 29.3 0.0  84.5  40.0 99.9  15.5 60.0 0.1 78.0 62.1  54.3 
Croatia 7.3 31.5 0.0  79.8 21.8 99.9  20.2 78.2 0.1 89.0 100.0  79.9 
EFTA 6.9 30.0 0.0  81.5  28.1 100.0   18.5 71.9 0.0 89.0 65.5  77.3 
Egypta 7.0 30.4 0.0  82.3 31.4 99.9  17.7 68.6 0.1 89.6 100.0  56.1 
EU 6.8 29.6 0.0  81.1  29.2 99.0  19.0 70.8 1.0 89.6 62.1  70.7 
Faeroe Islands 7.3 31.7 0.0  79.2 19.5 99.9  20.8 80.5 0.1 90.2 100.0  85.1 
Hong Kong, 
China .. .. ..  ..  .. ..  .. .. .. .. ..  .. 
Israel 7.1 30.4 0.0  81.5 28.4 99.9  18.5 71.7 0.1 89.6 100.0  72.3 
Japana 7.0 29.9 0.0  83.4  35.7 99.9  16.6 64.3 0.1 86.7 100.0  57.5 
Jordana 7.1 30.8 0.0  80.5 24.7 99.9  19.5 75.4 0.2 89.6 100.0  72.9 
Korea, Rep. ofa 7.0 30.0 0.0  83.4  35.7 99.9  16.6 64.3 0.1 79.2 100.0  61.1 
Lebanona 7.0 30.3 0.0  82.6 32.4 99.9  17.5 67.6 0.1 88.4 100.0  64.0 
Lesothoa 0.0 0.0 0.0  100.0  100.0  100.0   0.0 0.0 0.0 0.0 0.0  0.0 
Macedonia 7.0 30.5 0.0  81.4 27.9 99.9  18.6 72.1 0.1 89.6 100.0  70.7 
Mexico 7.2 31.3 0.0  81.1  26.9 99.9  18.9 73.1 0.2 89.0 100.0  68.7 
Montenegro .. .. ..  .. .. ..  .. .. .. .. .. .. 
Morocco 7.1 30.6 0.0  81.1  26.9 99.9  18.9 73.1 0.1 89.6 100.0  66.8 
Namibiaa 6.9 29.6 0.0  83.9 37.6 99.9  16.1 62.4 0.1 78.6 96.6 56.1 
Palestine  7.1 30.7 0.0  80.8  25.5 99.9  19.2 74.5 0.1 89.6 100.0  78.1 
Perua 6.8 29.3 0.0  84.4 39.7 99.9  15.6 60.3 0.1 78.0 62.1 55.3 
South Africaa 6.9 29.6 0.0  83.9  37.6 99.9  16.1 62.4 0.1 78.6 96.6  56.1 
Serbiaa 7.0 30.1 0.0  83.0 34.2 99.9  17.0 65.8 0.1 89.0 86.2 59.0 
Singapore 7.1 30.6 0.0  81.5  28.3 99.9  18.5 71.7 0.1 89.6 100.0  73.6 
                                               
27 UNCTAD (2013). 
28 The enlargement mainly concerned rice and sugar, in September 2009. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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    Simple average 
tariff rate (%)   Duty-free rates as a 
percentage of total 
tariff lines in each 
category (%)   Non- ad valorem  rates as a percentage of 
total tariff lines in each category (%) Overall 
WTO Agriculture 
WTO non-agriculture 
  
Overall 
WTO Agriculture 
WTO non-agriculture 
  
Overall 
WTO Agriculture 
WTO non-agriculture 
Animals and products 
Dairy products 
Fruits, vegetables and 
plants 
Swazilanda 6.9 29.6 0.0  83.9 37.6 99.9  16.1 62.4 0.1 78.6 96.6 56.1 
Tunisiaa 7.2 31.0 0.0  80.0  22.7 99.8  20.0 77.3 0.2 88.4 100.0  79.7 
Turkey 7.0 30.3 0.0  82.1 30.7 99.9  17.9 69.3 0.1 89.0 100.0  70.2 
Ukraine  .. .. ..  ..  .. ..  .. .. .. .. ..  .. 
Non-reciprocal                
GSP 7.4 30.0 0.5  71.8  36.4 84.0  28.2 63.6 16.0 78.0 100.0  61.3 
Brazil 7.4 30.0 0.5  71.7 36.3 84.0  28.3 63.7 16.0 78.0 100.0  61.3 
China 7.8 30.0 1.1  70.3  36.3 82.1  29.7 63.7 17.9 78.0 100.0  61.8 
LDC 0.0 0.0 0.0   100.0  100.0  100.0    0.0 0.0 0.0 0.0 0.0 0.0 
.. Not available. 
a  Implementation is not completed yet. Note:  Calculations are based on AVEs (if available) and exclude in-quota rates.  
 If no preferential rate is applied, the corresp onding MFN rate is used for the calculations.  
 AVEs were estimated based on 2011 Swiss import data at the 8-digit tariff line level.  
 If no import data were available for 2011, 2010 import data were used in calculations.  However, some non- ad valorem  equivalents could not be estimated since there were no imports in 
2010 and 2011. 
Source:  WTO Secretariat calculations, based on da ta provided by the Swiss authorities. 
3.1.4  Other charges affecting imports  
3.25.  Switzerland and Liechtenstein constitute a common area for the application of the VAT 
regime. Imported as well as domestically produced goods and services are subject to VAT. On 
imported services VAT is levied on the "cost of services provided", and on merchandise imports, it 
applies to the c.i.f. price plus the tariff paid . According to the authorities, if the Federal 
Administration has any doubts about the declared value, the provisions of the WTO Agreement on 
Customs Valuation apply. 
3.26.  Some changes were made to the legislat ion on the VAT during the review period. On 
12 June 2009, Parliament approved the federal law governing the VAT (VAT Act, RS 641.20), to be implemented from 1 January 2010, replacing the law of 2 September 1999. On January 2011, the 
VAT rates increased slightly: the standard rate increased to 8% (from 7.6%), the special rate on 
hotel services to 3.8% (from 3.6%), and the reduced rate of 2.4% increased to 2.5%. This reduced rate is applied, inter alia , on tap water, beverages (excluding alcoholic drinks), food, 
cattle, grains, plants, seed, flowers, medication, newspapers, magazines, and books and other 
printed matter. VAT is zero rated on exports and on gold for investment purposes. 
3.27.  The Customs Administration collects a 4%  tax on motor vehicles, levied on the customs-
duty-inclusive c.i.f. value of imports, or on the invoice/catalogue price. Electric cars are exempted 
from the tax. 
3.28.  The consumption tax (excise tax) is applied on imported and domestically produced mineral 
oils and fuels. The tax rate varies according to the product and its final use; per litre, it ranges 
from SwF 0.759 on diesel and SwF 0.7312 on unleaded gasoline, to SwF 0.03 on extra-light 
heating oil. Reduced rates apply to fuels used in  agriculture, forestry, fisheries, and licensed WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  transport companies. Aircraft may be exempt from this petroleum tax.29 In 2011, mineral oil tax 
generated 7.8% of federal receipts.30 
3.29.  The tax rates on natural gas and liquid gas used as fuel were reduced on 1 July 2008, and a 
partial or complete tax exemption from the mineral oil tax is granted for biofuels (e.g. biogas, 
bioethanol, biodiesel, vegetable and animal oils) that comply with minimum ecological and social 
criteria31; this can amount up to SwF 0.72 per litre. 
3.30.  The CO 2 tax on fossil fuels is an incentive fee that supplements voluntary and other 
CO2-related measures. Its purpose is to reduce the use of fossil fuels and thus lower CO 2 
emissions. The CO 2 tax has been levied since 1 January 2008 on fossil fuels (heating oil, natural 
gas, coal, petroleum coke, and other fossil combusti bles) that are used to generate heat, produce 
electricity in thermal plants or operate combined heat and power (CHP) plants. The tax rate has 
been SwF 36 per tonne of CO 2 since 1 January 2010. The tax on extra-light heating oil, for 
example, is SwF 95.50 per 1,000 litres at 15°C, and that on natural gas is SwF 92.10 per 1,000 kg. Energy-intensive companies may be exempted from the CO
2 tax if they commit to 
legally binding CO 2 reduction targets. The Customs Administration is responsible for enforcement 
of the CO 2 Ordinance, with the exception of the provisions on tax exemption and tax revenue 
distribution, for which the Federal Office for the Environment is responsible. In particular, the 
Customs Administration is charged with levying and reimbursing the CO 2 tax. 
3.31.  The tobacco tax is levied on imported and domestically produced cigarettes, cigars, and 
other tobacco products; it may be compound or ad valorem .32 The specific component of the 
compound tax on cigarettes (HS 2402.2010, HS 2402.2020, and HS 2402.9000) increased to 
SwF 114.94 per 1,000 units during the review period (from SwF 99.23 in 2006); the ad valorem  
component of 25% of the sale value at retail level remained unchanged. In addition, cigarettes are subject to a tax of SwF 1.30 per 1,000 units, for the domestic tobacco financing fund (SOTA), and 
a tax of SwF 1.30 per 1,000 units, for the Tobacco Control Fund.
33 The tax on cigarette paper was 
eliminated on 1 January 2010. Alcoholic beer and mi xed beer drinks are subject to the beer excise 
tax, levied in accordance with the Beer Tax Act (SR 641.411) and the associated implementing 
provisions. The beer excise tax is assessed according to the strength of the beer and it varies from 
SwF 16.88 per hl for light beer, to SwF 25.32 per hl for regular and special beer, to SwF 33.76 per hl for strong beer.
34 
3.32.  The incentive fee on volatile organic compounds (VOCs) is levied at SwF 3/kg on imported 
and domestically produced VOCs either directly on the substances or on products containing 
VOCs.35 The fee is collected at the time of importation into Switzerland or domestic production. 
VOCs are exempt from this tax if used in such a way that they are not released into the 
environment or if they are exported.36 
                                               
29 Pursuant to article 17, paragraph 2 (a) of the Petroleum Tax Act RS 641.61. 
30 Swiss Federal Customs Administration online  information, "Petroleum Tax". Viewed at: 
http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00382/index.html?lang=en&print_style=yes . 
31 RS 641.611. 
32 For information on taxes on cigarettes, cigars , and other tobacco prod ucts, see Swiss Federal 
Customs Administration online information. Viewed at: http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00385/index.html?lang=en . 
33 Swiss Federal Customs Administration online inform ation, "Fact Sheet on th e Commercial Importation 
of Cigarettes". Viewed at: http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00385/02115/index.html?lang=en . 
34 Swiss Federal Customs Administration online information, "Beer Excise Tax". Viewed at: 
http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00386/index.html?lang=en . 
35 A positive list of substances (Appendix 1 to the OVOC) shows all of the VOCs subject to the fee, while 
a positive list of products (Appendix 2 to the OVOC) shows the products containing VOCs that are subject to the fee. See RS 814.018 for a complete list of goods subject to the Incentive Tax on Organic Volatile Compounds . Viewed at: http://www.admin.ch/ch/e/rs/8/814.018.en.pdf . 
36 Swiss Federal Customs Administration online in formation, "Incentive fee on volatile organic 
compounds (VOCs)".  Viewed at: 
http://www.ezv.admin.ch/zollinfo_firmen/steuern_abgaben/00381/index.html?lang=en# . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.33.  The excise tax on salt, which replaces the monopoly fee on salt, is still applied in 
Liechtenstein.37  
3.1.5  Import prohibitions and restrictions  3.34.  Regulations on products subject to import prohibitions and restrictions have been adapted 
to EU regulations and global chemical convention s. Selected products are listed in Table 3.5, 
together with the underlying regulations and thei r purposes. Certain trade prohibitions (covering 
both imports and exports) are also maintained as a result of UN Security Council sanctions, or EU 
sanctions also implemented by Switzerland and Li echtenstein. Recently implemented UN sanctions 
include sanctions against Somalia (2009), Eritrea (2010), and Libya (2011).
38 Sanctions have been 
abolished for Sierra Leone in 2010. Based on EU decisions, Switzerland and Liechtenstein have adopted new sanctions against Guinea (2009) and Syria (2011), while abolishing the sanctions on 
Uzbekistan in 2009. 
Table 3.5 Selected products subject to import prohibitions, 2012  
Products Regulation/agreement Purpose 
Endangered species and their 
products CITES Environment 
Nuclear, chemical , and biological 
weapons/anti-per sonnel mines Loi fédérale sur le matériel de guerre 
(RS 514.51, Articles 7 and 8) Security 
Certain toxic and environmentally 
hazardous chemical substances Ordonnance sur la réduction des 
risques lies aux produits chimiques  
(RS 814.81)  Environment/public health 
and safety 
Potatoes, potato plants, certain soil 
substrates, vine, fruit trees from 
non-European countries  Ordonnance sur la protection des 
végétaux  (OPV) (RS 916.2) Plant health (prohibition 
concerns mainly plant species 
intended for planting) 
Certain carbon-zinc batteries and 
alkali-manganese 
batteries/accumulators Protocole à la Convention sur la 
pollution atmosphérique 
transfrontière à longue distance, de 1979, relatif aux métaux lourds 
(RS 0.814.326) Environment 
Rough diamonds shipped from a 
country that is not a participant in 
the Kimberley Process Certification 
Scheme (KPCS)  Ordinance on the international trade 
in rough diamonds (RS 946.231.11)  Combating international trade 
in conflict diamonds 
Source: WTO Secretariat, based on information provided by the authorities. 
3.1.6  Import licensing 
3.35.  Switzerland and Liechtenstein continue to apply automatic and non-automatic licences. The 
legal basis for the licensing system for agricultural products is governed by the Federal Law on Agriculture of 29 April 1998 (RS 910.1) and the Ordina nce on imports of agricultural products of 
26 October 2011 (RS 916.01), which entered into force on 1 January 2012.
39 Other recent changes 
resulted from the revision of the Harmonized System.40  
3.36.  An automatic licence, known as a general import permit (PGI) applies to all products subject 
to threshold prices or to compulsory reserve stocks. This licence is granted automatically and used 
for statistical purposes. The licence is also used to ensure collection of the portions of the customs 
duty that are not levied by the Federal Customs Administration, mainly for the compulsory holding of stocks. The licence is not transferable and is generally not limited in time. Traders liable to 
customs control must present their PGI number on their customs declaration.  
                                               
37 The tax varies (per tonne) from SwF 175 on salt for direct human consumption, to SwF 50 on road 
salt, SwF 0.94 on salt for industrial  use, and SwF 5 for other purposes  (LGBl. 1995/98 and LGBl. 1995/135). 
38 Based on the Law on the Implementation of In ternational Sanctions (RS 946.231), in force since 
2003. In Liechtenstein, the relevant Government or dinances are based on the law of 10 December 2008 
concerning the application of international sanctions (LGBl. 41/2009). 
39 WTO document G/LIC/N/1/CHE/3, 20 January 2012. 
40 WTO document G/AG/N/CHE/13/Add.14, 11 April 2012. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.37.  Non-automatic licences are used mainly for tariff quota management purposes 
(Chapter 4.4.4). In general, non-automatic licences are allocated through auctions, based on previous imports, on a first-come first-served basis, on a pro-rata basis, and/or according to the amount produced or purchased domestically of similar local goods ( prise en charge ). 
Non-automatic licences are transferable, with the exception of licences granted for quota allocated 
on a pro-rata basis. Importers who meet the relevant legal requirements are authorized to carry out imports within the tariff quota, but are not required to produce this authorization at the 
border; controls are performed electronically wh en the customs declaration is processed. A fee 
ranging from SwF 3 to SwF 5 is charged for most licence applications; additional fees depend on 
the product and the method of tariff quota allocation.  
3.38.  Import licensing is also required for imports of a range of non-agricultural products, such as 
narcotic drugs, transplant materials, and synthetic ethanol.
41  
3.39.  A licence application may be refused because of failure to meet the specific criteria. Reasons 
for any refusal are communicated to the applicant, who has the right to appeal. Appeals against 
decisions relating to licensing are made to the Swiss Federal Administrative Court and, in the 
second instance, to the Swiss Federal Supreme Court.42  
3.1.7  Compulsory reserve stock 
3.40.  In accordance with Article 8 of the Fe deral Law on National Economic Supply (NESA, 
RS 531), the Federal Council may subject certai n goods of vital importance to compulsory 
stockpiling. Some goods subject to compulsory reserve stock require an automatic import licence.  
3.41.  Goods that are currently subject to compul sory stockpiling and that require an automatic 
import licence are liquid fuels, sugar, rice, edible oils and fats, coffee, and different kinds of cereal. 
The automatic licences for these products are gr anted by CARBURA (an association of importers 
under private law) in the case of liquid fuels and Réservesuisse Genossenschaft  (a cooperative 
under private law of importers of foodstuffs and feedstuffs) for the other products mentioned 
above, subject to approval by the Federal Office  for National Economic Supply. These goods may 
be imported from any country; they are not subject to any quantitative restrictions or to a time 
limit. The stockpiling scheme is supported by guarantee funds financed through import fees 
(included in the customs tariffs levied on these products)  and ultimately consumers. In general, 
the level of compulsory reserves corresponds to four months of average consumption of each product (except, e.g. 4.5 months for liquid fuels, 3 months for kerosene and coffee, and 
3-4 months for cereals). 
3.42.  Furthermore, nitrogen fertilizers and certain therapeutic products are subject to compulsory 
reserve stock requirements, which are managed by Agricura and Helvecura, respectively. The 
Swiss authorities do not envisage any reduction in the levels of compulsory reserves measured in 
months of average annual consumption. 
3.1.8  Local-content and local-purchase requirements 
3.43.  The " prise en charge " system, which applies to some agricultural products subject to tariff 
quotas, requires traders to purchase or produce similar domestic products in order to import. Television broadcasters with a national or regional language programme service are still obliged to reserve at least 50% of their broadcasting time for Swiss or European productions and at least 
10% of broadcasting time or 10% of production costs for works from independent Swiss or 
European producers. In addition, television broa dcasters with a national or regional language 
programme service, which broadcast films, must spend at least 4% of their gross revenue on 
purchasing Swiss films (productions or co-productions) or must pay a 4% fee on their gross 
revenue. 
                                               
41 See WTO document G/LIC/N/3/CHE/8, 11 September 2012. 
42 See WTO document WT/TPR/S/208/Rev.1 for a detailed presentation of the import licensing system in 
Switzerland and Liechtenstein. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.1.9  Contingency measures 
3.44.  Switzerland and Liechtenstein have no anti-dumping, countervailing or safeguard measures 
in place; and they do not have specific national anti-dumping, countervailing or safeguards legislation. Nevertheless, under Switzerland's legal system, the WTO Agreements (including those 
on anti-dumping, safeguards, and subsidies and countervailing measures) form an integral part of 
Swiss national law, and could therefore serve as a legal basis for future measures.  
3.45.  In the event of alleged dumping or subs idization, SECO is the competent authority in 
Switzerland. Liechtenstein does not have authority to introduce contingency measures. 
3.46.  Moreover, under the Swiss Customs Tariff Law
43, Article 7 allows modifications in tariffs, 
including increases, when the national interest is at stake, and Article 11 provides for temporary tariff increases on agricultural products in application of safeguard provisions under international 
trade agreements. Switzerland reserved its right to invoke the special safeguard clause for 
1,193 tariff lines for agricultural products under Article 5 of the WTO Agreement on Agriculture. This measure has been used only once, in 1999. Under the Federal Law on External Economic 
Measures, Article 1 provides for non-tariff measures  in emergency situations (subject to approval 
by Parliament within six months).
44 
3.1.10  Government procurement 
3.47.  Switzerland's commitments under internationa l agreements on public procurement, i.e. the 
WTO plurilateral Government Procurement Agreem ent (GPA), the Bilateral Agreement between 
Switzerland and the EU of 21 June 199945, and the Free Trade Agreements concluded by 
Switzerland in the context of EFTA46, have been transposed into its national law at the federal level 
(central administration), and at the sub-federal level (cantonal and municipal). At the federal level, 
the GPA was integrated through the 1994 Federal Law on government procurement (in force since 1 January 2006) and its 1995 Ordinance, which se t detailed rules for all types of procurement 
below and above GPA thresholds. On 17 June 2009, the Confederation decided to revise the 
Ordinance of the Federal Law on government procurement, the result of which has been in force since January 2010. 
3.48.  At the sub-federal levels, the 26 Swiss cantons operate under the revised Inter-cantonal 
Concordat on government procurement of 2001, and its executive directives.
47 Switzerland's 
commitments under the GPA are not extended to procurement by the federal railways.48 
Exclusions from coverage are also provided on security grounds, pursuant to Article III of the 
revised GPA.49 Switzerland made reservations on the application of the GPA to other signatories 
who had not extended comparable and effective access in certain activities to Swiss firms.50 In 
2011, Switzerland made a final offe r to the Members of the GPA, wi th the final package adopted in 
March 2012, but not yet in force.51  
3.49.  According to the authorities, the cantonal and the federal laws have been harmonized to a 
large extent. The Confederation-Cantons Commi ssion on Government Procurement (CMCC) is 
                                               
43 Loi sur le tarif des douanes , RS 632.10. 
44 Loi fédérale sur les mesures économiques extérieures , RS 946.201. 
45 Viewed at: http://www.admin.ch/ch/f/rs/c0_172_052_68.html . 
46 Viewed at: http://www.seco.admin.ch/themen/00513/00515/00516/index.html?lang=fr . Also see 
http://www.efta.int/legal-texts/free-trade-relations.as px. There are ongoing negotiations on government 
procurement with Russia, Belarus, Indonesia and some countries in Central America. 
47 Accord inter-cantonal sur les marchés publics  (AIMP), 25 November 1994/15 March 2001. Viewed at: 
http://www.dtap.ch/Konkordate/IVOEB.aspx . 
48 However, urban transport is covered, incl uding tramways.  See WTO document GPA/113. 
49 See Article XXIII of the GPA. 
50 See for instance, Annex 7, General Notes 1, 2 and 3 of Switzerland, WTO document GPA/113. The 
reservations apply to, inter alia : Canada (regional bodies, entities in th e water, electricity, local transport, 
airports and ports subsectors, as well  as certain services su bsectors); the United States (communal bodies and 
water, local transport, airports and ports entities, as well as certain services  subsectors and challenge 
procedures); Japan (communal bodies, electricity and loca l transport entities, as well as challenge procedures); 
the Republic of Korea (communal bodies, airports an d local transport, and challenge procedures); Israel 
(communal bodies, local transport, certain services subsectors, and challenge procedures); and Singapore 
(communal bodies, water, and electricity entities). 
51 See WTO document GPA/113. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  responsible for coordinating the implementation of Switzerland's international commitments at the 
federal and sub-federal levels, and for ensuri ng that they are respected and implemented.52 In 
addition, the 1995 federal law on the internal market provides for non-discrimination in public procurement at cantonal and local levels. The Swiss legislation covers purchases of goods and 
services and projects related to construction and civil engineering. The law does not apply to, inter 
alia, the purchase of weapons and defence projects.
53 Nonetheless, such purchases are regulated 
by Section 3 of the Ordinance on government procurement of 11 December 1995.54 The Swiss 
legislation provides for, inter alia , periodic adjustments to definitions and threshold values under 
the relevant GPA provisions. 
3.50.  Special provisions (including on thresholds) are stipulated in the federal law on government 
procurement for public and private enterprises that  have a dominant position in the Swiss market. 
The Federal Ordinance on government procurement also covers certain activities carried out by 
public entities under control or influence of the Swiss State (i.e. organizations in which the Federal Government holds the majority of shares or where more than half of the members of the 
management or supervisory boards are representatives of the Federal Government), or by private 
entities with special or exclusive rights to prov ide a service throughout the Swiss territory. These 
activities originally included the provision of public telecommunication services, the construction or 
operation of railway facilities by CFF, and genera tion, transmission, and distribution of electricity.
55 
If conditions are met for free access by all suppliers to, and for international competition in, these markets (or segments thereof), the Federal Department for the Environment, Transport, Energy, and Communications (DETEC) may partially or totally exempt the industry, sector or activity from 
the federal law on government procurement.
56 These exemptions are based on recommendations 
by the Federal Competition Commission, issued in light of an analysis of the prevailing conditions of competition in the sector.
57 
3.51.  For contracts below the thresholds, procuring entities may use limited tendering, tendering 
by invitation (of three potential suppliers), open tendering, or selective tendering.58 For contracts 
reaching the international agreed thresholds, the procuring entity must use open, selective or 
limited tendering.59 Contracts must be awarded to the supplier that has presented the most 
economically advantageous offer, closest to the criteria specified in the tender documentation. Neither the law nor the ordinance provide for preferential treatment for Swiss suppliers. 
Complaints against the federal entities, related to public procurement, may be lodged with the 
Federal Administrative Court (TFA), which replaced the Federal Commission of Appeal (CRM) in the 
field of public procurement on 1 January 2007. The TFA's decisions may be appealed to the Federal Supreme Court (FSC). At cantonal level, administrative tribunals may deal with complaints arising 
from tendering procedures, which can be appealed to the FSC. 
3.52.  The bilateral agreement on government pr ocurement between Switzerland and the EU filled 
the gap between the scopes of the GPA and the rele vant provisions under the EEA. It provides for 
extension of the GPA to purchases by communes, the railways, telecommunications utilities, and 
entities active in the field of energy other than el ectricity; and to private entities operating on the 
basis of special or exclusive rights in connection wi th drinking water, electricity, airports, ports, 
and urban and cable transport.
60 The telecommunication subsector was exempted from the scope 
of the agreement, by the Swiss authorities upon its entry into force, and by the EU Commission 
(for most Members) in July 2002. The exemption was formally implemented by the Ordinance of 
DETEC of 18 July 2002 (RS 172.056.111). In 2007, tran sportation of goods by rail on normal trace 
was also exempted. This exemption was formally im plemented by the adoption of the annex to the 
Ordinance of DETEC of 18 July 2002. A best-endeavour clause encourages purchasers not to discriminate against suppliers from other parties to the agreement for procurement below the 
relevant threshold values. 
                                               
52 The CMCC comprises an equal number of repr esentatives from the Confederation and from the 
cantons. 
53 Article 3  of RS 172.056.1. 
54 Articles 32-36 of RS 172.056.11. 
55 Articles 2 paragraph 2 of RS 172.056.1 and 2a of RS 172.056.11. 
56 Article 2b of RS 172.056.11. 
57 RS 172.056.111. 
58 Article 36 of RS 172.056.11. 
59 RS 172.056.1. 
60 Federal Department of Economic Affairs online information, "Public procurement market". Viewed at: 
http://www.europa.admin.ch/themen/00500/00506/00521/index.html?lang=en . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.53.  Several of the EFTA free-trade agreements contain a chapter on government procurement 
based on the WTO GPA with market access concessions. This is the case for Chili, Mexico, Colombia, Peru, Ukraine, and the Gulf Co-operation Council. 
3.54.  In Switzerland, total public spending at all levels of government on goods, services, and 
construction amounted to about SwF 34 billion in 2007, representing 25% of total public spending. 
The total was shared between the Confederation (19%), cantons (38%), and communes (43%). No exact figures are available for the amounts spent in 2008 to 2010; 2011 is the first year for 
which statistical data were made available through the electronic procurement gate (simap.ch) for 
the purchases by the Confederation's procuring entities. In 2011, purchases at federal level totalled about SwF 6 billion. This comprised purc hases for SwF 3.8 billion above the thresholds. 
About SwF 3 billion were awarded under the open procedure; about SwF 400 million under the 
selective procedure; and about SwF 400 million under limited tendering according to the conditions 
of the GPA. In total Swiss procurement, the shar e of goods represents about 16%, while the share 
of services is 45% and construction services 39%. For the cantons, the electronic system is not yet 
mandatory for the collection of statistics. 
3.55.  A centralized portal was developed in 2011 for use by the Confederation, cantons and 
communes on all matters related to government procurement.
61  
3.56.  In Liechtenstein, in addition to the GPA, public procurement is governed by the relevant EEA 
rules (EU Directives and directly applicable EU regulations) and the EFTA Convention. The threshold values are those set by the EEA. The Department of Public Procurement, under the 
Office of the Prime Minister, is responsible for procurement. In 2008, two EU directives 
(2004/17/EC and 2004/18/EC) were incorporated in to national law and the legislation on public 
procurement was updated (Act on the Procurement of Utilities for public works contracts, and 
supply and services contracts in water, energy, transport, and postal services; Act on Public 
Procurement for all other public purchases).
62 These laws apply to public purchases, and to 
projects jointly undertaken by public and private entities when the financial contribution of the 
public contracting entity exceeds 50%. 
3.57.  Under the 2005 Public Procurement Act, open  tenders are the rule to assign contracts. 
Contracts above the EEA thresholds are awarded according to international rules; they are announced in the EU electronic government procurement system (Table 3.6). Selective tenders are used for architectural services. For contracts below the EEA thresholds, public utilities usually use 
open or negotiated procedures; otherwise, relevant international rules apply. Since 2008, a 
contracting authority may also use a procedure termed the "competitive dialogue" and purchasing techniques such as the dynamic purchasing system and electronic auction. These methods have 
yet not been used in practice. Under the two laws mentioned above, contracts are awarded 
according to the most economically advantageous tender or to the tender with the lowest price. Additional criteria, such as quality, environmenta l characteristics, and cost-effectiveness, may also 
be taken into account. According to the Liechtenstei n authorities, there are no preferences for local 
suppliers. A joint declaration by Liechtenstein and certain neighbouring Swiss cantons enables suppliers from the latter to participate in tenders (on a reciprocal basis) for purchases below the EEA threshold values. Complaints related to public purchases may be lodged with the Complaints 
Commission in Administrative Matters, the Administrative Court, or with the EFTA Surveillance 
Authority if EEA provisions are involved.  
3.58.  In 2011, Liechtenstein made a final offer to the Members of the GPA; final package was 
adopted in March 2012 but is yet to enter into force.
63 This offer extended coverage to 
procurement by its Parliament and Courts64, bodies of public law at the national level65, and 
procurement by postal services acting under exclusive rights.66 In Annex 5, Liechtenstein dropped 
the exclusion of certain telecommunication services . The authorities expect that the Liechtenstein 
instrument of ratification will be deposited in the first half of 2013. 
                                               
61 Viewed at: https://www.simap.ch .  
62 Viewed at: http://www.gesetze.li/Seite1.jsp?clearsvs=true&clearlrs=true . 
63 WTO document GPA/113, 2 April 2012. 
64 WTO document GPA/113, Liechtenstein, Annex 1 (central government entities). 
65 WTO document GPA/113, Annex 2. 
66 WTO document GPA/113, Annex 3. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table 3.6 Government proc urement in Liechtenstein  
 Internationally 
awarded contracts 
(SwF million) Open tenders (%) Selective tenders 
(%) Negotiated 
procedures  
(%) 
2006 24 100 0 0 
2007 78 94 2 4 
2008 45 93 2 5 
2009 76 89 0 11 
2010 23 96 0 4 
2012 31 77 0 23 
Source:  Liechtenstein authorities. 
3.2  Measures Directly Affecting Exports 
3.2.1  Procedures  
3.59.  Customs procedures, registration, and documentation requirements for exports are similar 
to those for imports in both Switzerland and Liec htenstein. An export declaration is required 
(regardless of the type of product and its destination) for statistical and surveillance purposes. 
Goods must be exported within one day of submission of the customs declaration. Permits are 
required to export animals and animal products, as well as narcotic drugs and psychotropic substances, and certain articles containing gold. 
3.2.2  Export taxes, charges, and levies 
3.60.  No export taxes, charges or levies are in force in Switzerland or Liechtenstein. 3.2.3  Export prohibitions, restrictions, and licensing  
3.61.  Switzerland and Liechtenstein maintain export controls (by means of licences) on certain 
products for safety, security, and environmental reasons, and to ensure compliance with international obligations under treaties and conventions to which they are signatories.
67 In 
addition, Switzerland and Liechtenstein maintain export controls on war material and dual-use 
goods that might be used in the production of conventional weapons and weapons of mass 
destruction. Exporters are required to obtain an export permit for these items from the SECO.  
3.62.  Trade restrictions, based on international sanctions, generally also apply to exports (for 
imports, see section 3.1.5). 
3.2.4  Duty and tax concessions  3.63.  In Switzerland and Liechtenstein, goods may be exported temporarily, in line with the Kyoto 
Convention, for processing or repair, upon approval from the Customs Administration. Exported 
goods may be imported duty free.
68 According to the authorities, Switzerland has not imposed any 
export taxes in the last 20 years and does not intend to do so. Tourists and non-residents may apply for reimbursement of the VAT on goods boug ht for their own use, of a minimum value of 
SwF 300.
69 
3.64.  Alcohol taxes paid on alcohol products are refunded by the Swiss Alcohol Board when the 
goods are exported. Alcohol products that are not in tended for drinking purposes such as perfume, 
medicines, varnishes, detergents, as well as products with an alcohol content not exceeding 1.2% 
by volume (e.g. pastries and chocolate) may be imported free of alcohol taxes. Also tax-free are alcoholic beverages (spirits) brought into the country by travellers, but not exceeding: 2 litres of 
                                               
67 For example, the Basel Convention on internat ional transport of hazardous waste, CITES, the 
Convention on Chemical Weapons, the Treaty on Nuclear Non-Proliferation. 
68 RS 631.0. 
69 RS 641.202.2. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 55 - 
 
  beverages with alcohol content of up to 15% by volume, and 1 litre of those with over 15% of 
alcohol by volume.70 
3.2.5  Export subsidies 3.65.  As part of its ongoing agricultural reforms, Switzerland eliminated export subsidies on basic 
agricultural goods in 2009. Switzerland continues to  compensate for higher prices of milk, dairy 
products, and flour, if these products are incorporated in processed agricultural goods. (Chapter 4.1.3).  
3.66.  Liechtenstein does not have an export subsidy regime in place; however, its food processors 
may benefit from Swiss export subsidies.  
3.2.6  Export promotion  3.67.  SECO is responsible for setting export promotion policy. The Swiss Office of Commercial 
Expansion (OSEC) is a non-profit organization mandated by the Swiss Government to support 
Swiss companies abroad. OSEC is in charge of ex port promotion, assisting Swiss and Liechtenstein 
companies involved in export activities. It coordinates a network of 19 representative offices or 
"hubs" worldwide, which deliver basic information, consulting, and marketing services. OSEC is 
subordinated to SECO. 
3.68.  In line with the Swiss Confederation's gene ral economic and location promotion policies, in 
2011, the Federal Council approved a plan for econ omic promotion, including export promotion 
and tourism promotion for 2012-15.
71 For export promotion, the plan includes a budget of 
SwF 84 million to be managed by OSEC. The main aim is for OSEC to support Swiss small and medium-size enterprises (SMEs) in particular to  undertake research, provide expert advice, and 
exploit export opportunities in international markets.  
3.2.7  Export insurance and guarantees 3.69.  Other assistance for Swiss exporters includes insurance and guarantees against political and 
economic risks when exporting goods and services.
72 The Swiss Export Risk Insurance, SERV, 
provides protection against non-payment, facilita tes the financing of exports, and helps companies 
to maintain their liquidity.  
3.70.  Due to uncertainty regarding the international economic and financial situation, SERV 
introduced new measures intended to improve competitiveness and provide exporters with liquidity problems better prospects in fulfilling export orders. In 2009, as part of stabilization measures, SERV introduced: counter guarantees, working capital insurance, letter of credit 
confirmation insurance, and refinancing guarantees; which were later extended by Parliament until 
the end of 2015. On 1 September 2011, SERV introduced a new premium schedule based on the new OECD Export Credit Arrangement. In October 2011, in view of the strength of the Swiss franc, 
the Federal Council raised the cover ratio for counter guarantees from 95% to 100%, and that for 
working capital insurance from 80% to 95%. SERV recorded its first net loss after four profitable years, posting a deficit of SwF 55.2 million in 2011. The Confederation's maximum guarantee 
exposure is SwF 12 billion; at end-Decemb er 2012, its exposure was SwF 10 billion. 
3.3  Measures Affecting Production and Trade 3.3.1  Incentives and other assistance 3.71.  The Swiss Subsidies Law stipulates the main eligibility criteria and procedures to follow 
when granting subsidies at the federal level.
73 Assistance is also granted at the sub-federal level. 
The main types of support consist of financia l transfers and tax exemptions. Under the Swiss 
                                               
70 Swiss Alcohol Board online information.  Viewed at:  
http://www.eav.admin.ch/themen/00514/index.html?lang=en . 
71 Arrêté fédéral sur le financement de la promotio n des exportations pour les années 2012 à 2015, 
(22 September 2011) . 
72 Liechtenstein does not have such a regime. 
73 RS 616.1.   WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Subsidies Law, subsidies granted by the Federal Government must be examined periodically (every 
six years)74; the examination is based on the budget positi ons of individual subsidies, with a focus 
on their efficiency and effectiveness. The latest  Federal Council Report on the examination of 
subsidies was  published on 30 May 2008.75 The 2008 Report contained the results of the 
evaluation of some 230 subsidies (out of 360), and concluded that some 70 subsidies programmes 
needed to be discontinued or revised, either because they had become redundant due to structural changes, or had been found inefficient to achieve the programme's goals. The Federal Council 
reports regularly on the implementation of the report's conclusions.
76 As from 2014, a shift is 
planned toward continuous examination of federal subsidies. 
3.72.  According to Switzerland's latest notificati on to the WTO, under Article XVI:1 of the GATT 
1994 and Article 25 of the Agreement on Subsid ies and Countervailing Measures, Switzerland 
distinguishes its subsidies at the federal level in two broad categories: agriculture (see 
Chapter 4.1.2) and industry.77  
3.73.  Under the industry pillar, there are several sub-categories, including: tax relief in application 
of the new regional policy, assistance for mountain and rural areas, and assistance for forestry 
activities. According to Switzerland's notification, the tax relief in application of the New Regional Policy has been in place since 1 January 2008 and will remain in force indefinitely. Under this 
programme, Switzerland provides subsidies in the form of federal tax relief (partial or full) to 
support private enterprise projects aimed at helping to reduce disparities in the development of regions. Areas considered economically less developed are those where there is a particular need for structural adaptation due to lower evolution of the population compared with the country as a 
whole; an income level below the national average; and a proportion of industrial activities higher 
than the average. Other considerations are areas where average unemployment exceeds the national average; the trend in the number of jo bs has been markedly less favourable than the 
national average; or, where there are clear indi cations that at least one of the situations 
mentioned above will occur shortly; in particular, that the prospects for the most important sectors of the economy and for the largest firms are unfav ourable. The loan guarantees granted under the 
former law (Federal Law of 6 October 1995, Offi cial Collection of Federal Law 2006 4301) for a 
maximal of eight years will expire in about 2015-16. The tax reliefs are granted for up to ten years to manufacturing companies, and to services companies with activities closely linked to the manufacturing process. In order to be considered, the project must be innovative: the product and 
the manufacturing process must be technologically up-to-date and increase the company's ability 
to compete through a national and international market presence. According to the Swiss authorities, the effect of the assistance programme on trade is negligible or non-existent.
78 
3.74.  The Swiss Federal Government has a range of instruments that can help companies to 
access credit. One of these is exclusively for sm all and medium-size enterprises (SMEs) operating 
in the arts and crafts subsectors. According to the Federal Act of 6 October 2006 on financial 
assistance for surety organizations acting on behalf of SMEs (SR 951.25), the Federal Government 
covers 65% of the exposure, and shares the admini stration costs of guarantee cooperatives that 
help promising small and medium-size enterprises ob tain bank loans. Three regional cooperatives 
cover the entire territory of Switzerland, and on e cooperative for women (SAFFA), operates at the 
national level. They offer loan guarantees of up to SwF 500,000. 
3.75.  Switzerland also provides assistance for mountain and rural areas under the "Surety and 
contributions to interest-servicing in mountain and rural areas" programme (Table 3.7). The 
objective of the subsidy is to provide long and medium-term capital loans to small and 
medium-size establishments situated in mountain and rural areas. In its application, the Confederation encourages the granting of sureti es by giving subsidies to the Swiss Guarantee 
Cooperative for Arts and Crafts, and by making interest-servicing contributions. The subsidy does 
not relate to a specific product or sector. It is provided to SMEs that are profitable or likely to develop, whether existing or to be created. Paym ents are made only to establishments that are 
not already supported by the Confederation in some other way. This assistance programme is to 
                                               
74 Article 5, RS 616.1.   
75 Federal Department of Finance (2008). 
76 See Compte d'Etat 2011 (tome 3, no. 07)  on the status of implementation of the subsidies review. 
Viewed at: http://www.efv.admin.ch/f/dokumentation/finanzberichterstattung/staatsrechnungen.php . 
77 WTO document G/SCM/N/220/CHE, 24 June 2011. 
78 WTO document G/SCM/N/220/CHE, 24 June 2011. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  remain in force for an indefinite period. Accord ing to the Swiss authorities, the effect of the 
subsidy on trade is insignificant or non-existent. 
Table 3.7 Federal assistance, 2007-11  
(SwF million, unless otherwise indicated) 
Programme/industry Outlays Legislation 
2007 2008 2009 2010 2011 
Assistance for zones 
under economic 
renewal 
Guarantees for 
investment credits 
 
Losses of guarantees   
 
 
58.3 
 
 
2.18  
 
 
49.8 
 
 
0  
 
 
35.2 
 
 
0  
 
 
28.8 
 
 
0.4  
 
 
23.8 
 
 
0.4 Article 4 of the Federal Law of 
6 October 1995 on assistance for 
zones under economic renewal 
(Official Collection of Federal Law 
2006 4301), Federal Ordinance 
(Official Collection of Federal Law 
4305) and the Federal Ordinance of 
12 June 2002 (Official Collection of 
Federal Law 2007 6907) 
Assistance for SMEs 
operating in arts and 
crafts 
Volume of granted loans  Number of sureties  
  
97.4 
 
1,384  
 
 
148.2 
 
1,408  
 
 
186.9 
 
1,594  
 
 
214.5 
 
1,654  
 
 
210.7 
 
1,653 Federal Law of 6 October 2006 on 
financial assistance for surety organizations acting on behalf of 
SMEs (SR 951.25) 
Assistance for 
mountain and rural 
areas 
Losses on guaranteed 
loans 
 
Federal commitments as a 
whole (total amount) 
 
Contributions to interest 
servicing   
 
 
0.3 
 
 
26.1 
 
 
0.2  
 
 
0.5 
 
 
20.4 
 
 
0.2  
 
 
0.1 
 
 
17.6 
 
 
0.3  
 
 
0.6 
 
 
14.6 
 
 
0.3  
 
 
1.3 
 
 
9.7 
 
 
0.2 Federal Law encouraging credit 
guarantees and on loan service 
contributions in mountain and rural 
areas (SR 901.2) of 25 June 1976. 
These areas are defined in the 
Federal ordinance of 
28 November 2007 on regional policy 
(SR 901.021) 
Forestry 149 132 144 130 .. Federal Law on Forests (1991) 
(SR 921) and Federal Ordinance on Forests (SR 921.01)  
.. Not available. 
Source: WTO document G/SCM/N/220/CHE, 24 June 2011; and information provided by the Swiss 
authorities. 
3.76.  Switzerland provides assistance for forestry activities under the Reorganisation of Financial 
Equalisation (NFA) programme. The subsidy is aimed to compensate forest owners for services 
rendered to the public. Assistance is allocated in the form of indemnities and/or four-year 
programmes and flat-rate budgets (2008-11) granted by the Confederation after cantonal proposals have been submitted. The subsidy to the defined products and services within the programmes goes fully to the cantons for implementation. According to the Swiss authorities, the 
effect of the assistance programme on trade is negligible, if not non-existent. 
3.77.  Swiss Post receives an annual subsidy for the delivery of newspapers on subscription. The 
subsidy was reduced from SwF 80 million and fixed at SwF 30 million in January 2008. It remained 
at SwF 30 million in 2009, 2010 and 2011, and was increased to SwF 50 million in 2012. 
3.78.  According to a notification by Switzerland
79, the Federal law of 20 March 2009 on Passenger 
Transportation, which entered into force on 1 January 2010, determines the basic rules and 
conditions for licensing and requirements for offers of transportation as well as the basic 
obligations for regular and professional passenger transportation. In addition, as from 1 January 2010, the Federal law of 20 March 2009 on Road Transport Companies (RS 744.10) 
                                               
79 See WTO document S/C/N/568, 17 September 2010. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  determines the criteria for authorization of road transport companies for passenger and freight. A 
lack of financial capacity or professional competence may result in denial of authorization.80 
3.79.  In the context of negotiations in the Wo rking Party on GATS Rules, Switzerland tabled a 
proposal for "Disciplines on Subsidies Pursuant to Article XV of the GATS".81 The proposal is for 
disciplines on export subsidies including on a defini tion of subsidies, listing and transitional periods 
(extensions and subsidies of unlimited periods), standstill, and progressive phase-out provisions, as well as remedies. 
3.80.  Under the law relating to volatile organic compounds
82, companies that have taken action 
on their stationary installations (installing purification plants) and thereby are reducing emissions significantly below the limit values stipulated in the Air Protection Ordinance
83 may already be 
exempted from the tax (Article 9). This time-limited tax exemption was to expire by the end of 
2012 but the Federal Council decided in June 2012 to continue the tax exemption without time 
limitation but with additional requirements. Fr om January 2013, companies that wish to benefit 
from a tax exemption based on Article 9 must also reduce their VOCs emissions at every step of 
their production process, according to the best available technique, which will be updated every 
five years.84 Health insurance companies (chosen because it is mandatory for all people living in 
Switzerland to have health insurance) are used to redistribute an amount of approximately 
SwF 120 million annually to the population in equal amounts.85  
3.81.  The Confederation continues to provide financial support for work on sanitization of 
contaminated sites as identified by the Cantons. A maximum of SwF 40 million is available each year: SwF 22.3 million were spent in 2009, SwF 13.2 million in 2010 and SwF 8.9 million in 
2011.
86 
3.82.   Government-financed or subsidized research and development programmes are also open 
to foreign companies with operations in Switzerland. In 2010, the Confederation spent 
SwF 225.7 million on research and development pr ogrammes and a total of SwF 1,812.6 million on 
government-financed and subsidized programmes, which includes intramural R&D expenditures, R&D contracts, and grants to fund R&D activities allocated to third parties. 
3.83.  Some cantons offer investment incentiv e programmes for domestic as well as foreign 
investors, in particular in rural areas. Priority is often given to foreign businesses that bring new high technology product lines. The most common incentives are: subsidies or loans by cantons for the development of industrial sites; grants for institutions conducting research and development 
projects; subsidies to defray start-up costs and to finance staff training; tax exemptions on profits 
and capital gains; and liberal depreciation allowances. Cantonal guarantees on bank loans and capital loans at below-market interest rates  are still available but rarely used, according to the 
authorities. The Federal Government does not have specific information regarding these cantonal 
guarantees. There are also discrepancies in regard to the tax rates levied in the different cantons. For instance, in addition to the federal income tax of 8.5%, statutory corporate income tax ranges 
from 5.25% (canton of Lucerne) to 23.4% (canton of Geneva). These tax differentials and tax 
exemptions granted by the different cantons are a means for them to compete for investment.
87 
3.84.  Over the past four years, the Corporate Taxation Reform II introduced three main legislative 
amendments to the Swiss corporate tax system. Requirements regarding the participation 
exemption changed in 2011. Participation exemption (at federal, cantonal, and communal levels) 
in the form of reduced income tax is now granted to corporations holding at least 10% of the 
                                               
80 See WTO document S/C/N/567, 17 September 2010. 
81 See WTO document JOB/SERV/36, 2 December 2010. 
82 Composés organiques volatils  (OCOV). 
83 RS 814.318.142.1. 
84 Viewed at: 
http://www.bafu.admin.ch/dokumentation/medieninformation/00962/index.html?lang=de&msg-id=45130 . 
85 Le Conseil fédéral adapte les ordonna nces sur les taxes environnementales . Viewed at 
http://www.bafu.admin.ch/dokumentation/medieninformation/00962/index.html?lang=fr&msg-id=39100 . 
86 La Confédération participe à l’assainissement des sites contaminés . Viewed at: 
http://www.bafu.admin.ch/dokumentation/medieninformation/00962/index.html?lang=fr&msg-id=21675 . 
87 The Federal Tax Harmonization Law (LHID) of 2001 refers to the harmonization of the tax basis and 
some assessment principles amongst th e different cantons, but not to the ha rmonization of rates. According to 
the Federal Constitution (Article 129), the cantons remain free to set their own tax rates . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  shares of another company, having a share of at least 10% in the profits and the capital surplus of 
another company, or with an investment of a ma rket value of at least SwF 1 million in another 
company. In the two former cases, the reduction also covers capital gains on investment if the 
investment has been held for at least one year. The tax reduction is proportional to the 
relationship between net income from qualifying participation and total earnings. 
3.85.  The capital contribution principle took effect 1 January 2011. Under the nominal value 
principle, which was in force until the end of 2010, only repayments of nominal share capital were 
exempt for Swiss income and withholding tax purposes. Now, repayments of all types of capital 
contributions made after 31 December 1996 by shareholders with equity rights are treated the same as repayments of nominal share capital. 
3.86.  Since 1 January 2009, cantons have had the option to provide in their legislation for the 
deduction of corporate income tax from the amount of the capital tax 
3.87.  According to authorities, Liechtenstein do es not have any assistance schemes. However, the 
Government of Liechtenstein and individual compan ies are members of OSEC. In order to facilitate 
the participation of its SMEs in OSEC activities, Liechtenstein granted 20 export cheques in the 
amount of SwF 7,500 each for the period 1 October 2011 to 31 December 2012, with which its SMEs may pay for OSEC services. In addition, as a member of the EEA, Liechtenstein companies 
are eligible for EU assistance programmes.
88 
3.3.2  Standards and other technical requirements 3.3.2.1  Overview 3.88.  In 2010, Switzerland unilaterally introduced the Cassis de Dijon  principle for certain 
products from the EU or the EEA (Box 3.1). To gether with the mutual recognition agreement 
between Switzerland and the EU, the principle ensure s that products that are lawfully marketed in 
the EU or EEA can, in principle, be marketed in  Switzerland without further checks regarding their 
technical requirements. This is a step towards reducing technical barriers to trade and enhancing 
import competition in the Swiss market. Exports from the broader WTO membership to Switzerland may also benefit, provided the produc ts meet EU/EEA technical requirements. Some of 
the potential trade benefits are lost because of exceptions to the Cassis de Dijon  principle.  
3.3.2.2  Technical regulations 3.89.  In most sectors, the federal authorities have exclusive authority for adopting technical 
regulations, while the cantons are mainly responsi ble for implementation and market surveillance. 
New regulations (ordinances), decrees, and guidelines are subject to regulatory impact analysis 
(RIA).
89 The Federal Law on technical barriers to trade (LETC) requires the alignment of technical 
regulations with those of Switzerland's main trading partners (Article 4, paragraph 2). Since its 
last TPR in 2008, Switzerland has further harmonized its technical requirements with the EU 
regime ( acquis communitaire ).  
3.90.  No specific trade concerns have been ra ised in the TBT Committee regarding Switzerland's 
or Liechtenstein measures since 2008.90 Switzerland has regularly notified its draft technical 
regulations, ordinances, and conformity assessment procedures to the TBT Committee.91  
                                               
88 Liechtenstein is a net–contributor of the programmes included in the 7th Framework Programme for 
Research, Technological Development and Demonstration Activities (2007-2013); the Competitiveness and Innovation Framework Programme (CIP-Programme 2007 -2013); and may benefit from all programmes listed 
in Protocol 31 of the EEA Agreement. Liechtenstein's total contribution to the 7
th Framework and to the 
CIP-Programme amounted to SwF 19,93 million (€11,7 million) and SwF 1.36 million (€0.8 million), respectively. 
89 For all technical regulations, in French, German, and Italian see http://www.admin.ch/ch/ . 
90 WTO document G/TBT/GEN/74/Rev.9, 17 October 2011. 
91 11 in 2009; 10 in 2010; 10 in 2011; 19 in 2012 (WTO documents G/TBT/N/CHE/110-159). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Box 3.1 Switzerland introduces the Cassis de Dijon  principle 
The Law on technical barriers to trade (LETC) introduced the Cassis de Dijon  principle into Swiss law from 
July 2010.a The new regime enables the marketing of products in Switzerland even if they do not conform to 
Swiss technical regulations, provided they are lawfully marketed in the EU or EEA, and comply with the 
technical requirements of the EU/EEA or with those of an EU/EEA member State (in the case of partly or non-
harmonized rules).b Switzerland thus implicitly recognizes the equivalence of technical requirements in the 
EU, where these differ from Swiss requ irements. Domestic producers are al so entitled to sell products in 
Switzerland that are in conformity with EU or EEA regulations, albeit not with Swiss technical requirements, 
so as not to discriminate against domestic products.  
The autonomous introduction of the Cassis de Dijon  principle was part of the Government's strategy to 
counter the high prices prevailing in Switzerland (Growth Policy 2008-11) , by further dismantling technical 
barriers to imports from the EU and the EEA markets. This is the third pillar of a strategy initiated in the 
1990s to reduce technical barriers to trade. The unilateral application of the Cassis de Dijon  principle 
complements the autonomous harmonization with EU technical requirements, and the Mutual Recognition 
Agreement with the EU, which entered into force in 2002. This MRA covers 20 product sectors and is 
expanding. The whole set of measures introduced with the application of the Cassis de Dijon  principle is 
estimated to have a growth-enhancing effect on  Switzerland's GDP of about 0.5% per year.c According to the 
authorities, imports of foodstuffs, textiles, cosmetics, and furniture are expected to benefit most from by the 
application of the Cassis de Dijon  principle. 
There are exceptions to the Cassis de Dijon  principle. It is not applicable to products that are subject to: 
(i) authorization; (ii) notification pursuant to the Swiss legislation concerning chemicals; (iii) import permit; 
(iv) import prohibition; or (v) an exemption gran ted by the Federal Council. The main criterion for 
maintaining exemptions were overriding public interests.d The Seco keeps an indicative list of exceptions 
(negative list) as a guide for operators.e Products concerned include pharmaceuticals (subject to 
authorization), chemicals subject to notification, dangerous substances, detergents, pesticides, certain 
measuring instruments, certain motor vehicles, animal feed, GMOs, and certain foodstuffs (see labelling 
section below).f  
Special arrangements are in place for food items that do not conform to Swiss technical requirements. Prior 
to first sale in Switzerland, these food items are subject to approval by the Federal O ffice of Public Health in 
the form of a general ruling (décision de portée générale ). A general ruling is valid for subsequent 
consignments and applies to similar food items (i.e. separate approval for marketing in Switzerland is not 
required).g Applications from food importers or manufactur ers must include evidence that the goods in 
question are lawfully in circulation in the respective  EU/EAA member State or conform with EU/EAA technical 
regulations (in the case of partly or non-harmonized ru les). Moreover, public interests must not be at risk, 
including human, animal, and plant life and health. Prod ucts benefiting from these arrangements are mainly 
products for which labelling differenc es exist (e.g. 0% fat instead of fa t-free). Infringements of the general 
rulings carry penalties of prison sentences of up to three years or financial penalties.  
a The Cassis de Dijon  principle refers to a 1979 decision by the European Court of Justice concerning 
Germany's ban of the sale of French Cassis de Dijon . 
b LETC Art. 16a, paragraph 1 (RS 946.51). 
c Message concernant la loi fédérale sur les entraves techniques au commerce  (LETC). Seco online 
information. Viewed at: http://www.seco.admin.ch/themen/00513/00730/01220/index.html?lang=fr . 
d Message concernant la révision partielle de la lo i fédérale sur les entraves  techniques au commerce  
(08.054), 25 June 2008. Viewed at: http://www.admin.ch/ch/f/ff/2008/ 6643.pdf. 
e Seco online information. Viewed at: 
http://www.seco.admin.ch/themen/00513/00730/01220/04172/index.html?lang=fr . 
f Ordonnance sur la mise sur le marché de produi ts fabriqués selon des prescriptions étrangères  
(OPPEtr) of 19 May 2010 (RS 946.513.8). The ordinance was amended with effect from 1 January 2012. 
g The list of general rulings is available online and can be referred to by operators ("Notification 
Authority Cassis de Dijon") at: Federal Offi ce of Public Health online information: 
http://www.bag.admin.ch/themen/lebensmittel/10380/index.html?lang=en . 
Source:  WTO Secretariat. 
3.91.  Under the Customs Treaty, Liechtenstein a pplies Swiss standards, technical regulations and 
conformity assessment procedures, including markin g, labelling, and packaging. The Liechtenstein 
1995 Act on the marketability of goods, as amended in 2004, stipulates that goods produced 
either in conformity with Swiss or EEA regulation s may be sold in Liechtenstein. For example, EEA 
originating non-agricultural products that do not comply with the Swiss regulations, such as 
medical products, may be imported to Liechtenstein under the Market Control and Surveillance 
Mechanism (Box 2.1). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.3.2.3  Conformity assessment procedures 
3.92.  There are no developments concerning conformity assessment procedures. Switzerland has 
mutual recognitions agreements (MRAs) with the EU (2002), EEA/EFTA, Canada, and Turkey. The 
MRA with the EU applies to 20 industrial sectors92; construction products have been covered since 
March 2008, cable lifts since December 2011, and explosives since 2012. For selected agricultural 
products, Switzerland and the EU recognize the equivalence of laws in order to facilitate trade.93 
The MRAs with the EEA/EFTA and Turkey mutually  extend the commitments taken by all parties 
toward the EU. 
3.93.  Various approaches are used to assess conf ormity with Swiss technical regulations. In the 
case of imports, it is primarily the responsibility  of importers representing foreign manufacturers to 
meet Swiss technical regulations, such as proper  labelling and safety standards (for example, 
machines). Random border controls to check compliance may be carried out. For some products, a 
manufacturer's declaration of conformity must be submitted by the manufacturer or the importer upon or prior to importation. Third-party certification or testing may be required as part of the 
manufacturer's declaration of conformity for prin ting machines, selected telecom products or 
medical devices. The Swiss Accreditation Service (SAS), which operates under the umbrella of the 
State Secretariat for Economic Affairs (SECO), is responsible for accreditation of laboratories, 
inspection, and certification bodies.
94 
3.94.  In Liechtenstein, conformity assessment bo dies have been accredited by the Liechtenstein 
Accreditation95: two for certification - the Liechtenstein Association for Quality Assurance 
Certificates Company (Management Systems), and SWISS LLOYD GmbH subsidiary Triesen 
(Products); one for inspection – Office of Food Inspection and Veterinary Affairs; and one for 
calibration – Negotia Messtechnik AG. Liechtenstein has MRAs on conformity assessment with the other EEA/EFTA countries, Australia, Canada, New Zealand, Switzerland, and the United States. 
Liechtenstein and Chinese Taipei have signed an exchange of letters regarding the mutual 
exchange of information for medical devices, nota bly requirements of quality systems and audits 
of quality systems (in force since May 2011).  
3.3.2.4  Standards 
3.95.  Approximately 95% of the 23,080 standards cu rrently in force in the customs territory are 
aligned with international or European standa rds, unchanged since 2008. National standards 
predominate for watches and road construction.  
3.96.  Standards development is carried out by private bodies under the umbrella of the Swiss 
Association for Standardization ( Association Suisse de normalisation , SNV). The SNV has over 
600 members from all economic sectors and includes private associations, institutions, and 
representatives from the public sector. A few Liechtenstein companies are members. The SNV 
publishes Swiss and foreign draft standards on the internet (Swiss information centre for technical 
rules, switec). Comments on draft standards ar e conveyed to the relevant expert body or 
national/international standards body. Standards are reviewed every five years to assess their 
continued relevance. 
3.3.2.5  Labelling  3.97.  There have been no major changes to Swiss labelling requirements. Switzerland amended 
the Organic Farming Ordinances, with effect from January 2010, concerning the labelling rules for 
products and food derived from organic agricu lture, to align them with EU requirements.
96 New 
                                               
92 Seco online information. Viewed at: 
http://www.seco.admin.ch/themen/00513/00730/01217/01887/index.html?lang=fr . 
93 Feedstuffs, seeds, wine, spirits and alcoholic beverages from wine, bio-products, fruits, vegetables, 
animals, and animal products. 
94 Ordonnance sur le système suisse d’accréditation et la désignation de laboratoires d’essais et 
d'organismes d’évaluation de la conformi té, d’enregistrement et d’homologation (RS 946.512). 
95 The legal framework is contained in a 1996 Act (LR 941.22). 
96 WTO document G/TBT/N/CHE/115, 1 October 2009. Ordinance on organic farming and the labelling of 
organically produced products and foodstuffs (Organic Farming Ordinance) (RS 910.18) and Federal Department of Economy (FDE) Ordinance on Organic Farming (RS 910.181) of 22 September 1997. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  labelling requirements apply for timber (and related products) for consumer information purposes, 
including a declaration of origin and the type of timber.97 
3.98.  Labelling requiremen ts are set in sector-specific techni cal regulations. Some Swiss labelling 
requirements are maintained (as an exception to the Cassis-de-Dijon  principle) with the stated 
objective of allowing consumers to make an inform ed choice or to prevent deception. For example, 
imports of meat and eggs produced in a manner prohibited in Switzerland must be labelled as such. Banned production methods, which must be labelled, include the use of hormones, 
antibiotics, and other antimicrobial substances such as performance stimulators for meat, and 
eggs from hens reared in battery cages.
98 The labelling requirements apply from the point of sale 
to the final consumer, in retail trade, and in establishments where meals are prepared for the public, such as restaurants. Country of production labelling is mandatory for all imported and 
domestic foodstuffs and raw materials used in food.
99 According to the authorities, this is because 
the indication of the country of manufacture cannot be inferred from the origin of the product and provides relevant information for consumers to decide which product they wish to buy. The 
labelling requirements for GMOs remain unchanged.
100  
3.3.3  Sanitary and phytosanitary measures 3.3.3.1  Overview 
3.99.  There have been no major changes to the SPS regime. The Swiss veterinary and 
phytosanitary regimes have been fully harmonized with the EU since 2008. A reform of the Swiss food safety regime is under way to further align the requirements with the EU. Under the Customs Treaty, Liechtenstein applies Switzerland's SPS measures. No specific trade concerns have been 
raised in the SPS Committee regarding Switzerland's or Liechtenstein's measures.  
3.3.3.2  Food safety 3.100.  Switzerland's food safety regime remains substantially unchanged. However, a revision of 
the food law is ongoing
101, with the aim of further aligning the Swiss food safety system with the 
EU acquis communitaire .102 The authorities expect the amended law to enter into force in 2015.  
3.101.  Switzerland is among the few countries in Europe that continue to apply the "positive 
principle" for foodstuffs, i.e. all foodstuffs and a dditives offered for sale must be approved by the 
competent federal authorities –otherwise they are prohibited.103 The Swiss authorities are aware 
that these approval procedures for food constitute an unnecessary barrier to trade that warrant reform.
104 The legislative proposal lifts the positive principle. In the meantime, imports of 
foodstuffs from the EU/EEA are subject to special arrangements with respect to the Cassis-de-
Dijon principle (Box 3.1). The draft bill also, inter alia , introduces the precautionary principle into 
Swiss law and adopts the EU system of "max imum values" for additives, contaminants, 
microorganisms, etc. (replacing the Swiss tolerances).105 However, in non-harmonized areas of the 
EU food safety regime, such as labelling, certain Swiss exceptions may remain in place, for 
                                               
97 G/TBT/N/CHE/120, 10 December 2009. 
98 Labelling was introduced in 2010 for certain proh ibited rearing methods of rabbits (RS 916.51), see 
WTO document G/TBT/N/CHE/122, 28 January 2010. 
99 Articles 15 and 16 of the Ordinance of the Federal Department of the Interior  (DFI) on labelling and 
advertising of foodstuffs (RS 817.022.21).  
100 Ordinance of the Federal Depa rtment of the Interior on ge netically modified foodstuffs 
(RS 817.022.51). See also 2008 TPR of Switzerland and Liechtenstein.   
101 Federal Law on foodstuffs and basic commodities (RS 817.0). See also Message relatif à la loi 
fédérale sur les denrées alimen taires et les objets usuels  (LDAl). 
102 The EU's food safety regime is based on Re gulation (EC) No 178/2002 (general principles and 
requirements of food law, establishm ent of the European Food Safety Authority and procedures in matters of 
food safety). 
103 Article 8, paragraphs 1-3 of the Federal Law on foodstuffs and basic commodities (RS 817.0). 
104 Article 2b, Ordonnance sur la mise sur le marché de produits fabriqués se lon des prescriptions 
étrangères  (RS 946.513.8).  
105 Department of Health onli ne information. Viewed at: 
http://www.bag.admin.ch/themen/lebensmittel/04865/05022/07826/index.html?lang=fr . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  example the requirement to indicate the co untry of production for food and feed 
(section 3.3.2.5).106 
3.102.  All food establishments are required to notify their activities in the area of food 
manufacturing, processing, storage, transport, import/export, and purchase to the competent 
cantonal food authorities (SR 817.02). In addition, all food establishments require a licence to 
manufacture, process, store or sell food of animal origin.107  
3.103.  Switzerland continues to apply a stringent regulatory regime for agricultural biotechnology 
products. The Gene Technology Law and related ordinances regulate genetically modified 
organisms for food and feed use.108 Commercialization and cultivation of biotechnology crops are 
subject to approval by the competent federal authorities. Approvals are valid for ten years but may be withdrawn in case of reasonable suspicion that they are hazardous to health or the 
environment. One GM soya variety, three GM maize varieties, two GM vitamins and two GM 
enzymes are currently authorized for food use. Another GMO product (the ice-structuring protein type III HPLC 12) is authorized for use as a processing aid in ice cream production (Decision of 
18 October 2012). A number of GMO products are authorized for use as feedstuffs
.109 Many 
applications are under review in the authorization procedure .110 The 2006-10 moratorium on 
approvals for the cultivation of biotechnology crops has been extended for three years until 
27 November 2013.111 Within the framework of the 2014-2017 Agricultural Policy, both chambers 
of Parliament have adopted a second extension of the moratorium until the end of 2017 as an 
amendment to the Gene Technology Law. Final adoption of the agricultural policy is due in the spring 2013 session of the Parliament.
 All products from authorized GMOs may be imported into 
Switzerland. 
3.3.3.3  Veterinary measures 
3.104.  Switzerland's veterinary requirements are fully aligned with those of the EU for imports, 
transit or exports of live animals and animal products from third countries. Veterinary controls 
between Switzerland and the EU on products of animal origin were removed on 1 January 2009 to 
establish a common veterinary area. Live animals and animal products that do not comply with the relevant regulations and/or do not originate from countries and (if applicable) premises accepted 
to export to the common veterinary area are not allowed entry into Switzerland and Liechtenstein. 
Imports from outside the veterinary area (non-EEA countries) require a veterinary certificate issued by the competent authorities in the country of origin. An import permit is only required for products covered by the Convention on Internatio nal Trade in Endangered Species of Wild Fauna 
and Flora (CITES). Non-EU consignments are normally subject to veterinary inspection at the 
border (for a minimum fee of SwF 88), with a lower frequency of controls from countries covered by a bilateral equivalence agreement. All importer s of live animals and animal products must be 
registered in TRACES (a European electronic information and traceability system) and with the 
Swiss cantonal Contrôle des denrées alimentaires .  
3.3.3.4  Phytosanitary measures 
3.105.  According to the authorities, Swiss phytosanitary measures are based on IPPC rules and 
guidelines, to the extent available. The Swiss Pl ant Protection Ordinance (2001) has been subject 
to a complete revision, which entered into force on 1 January 2010.
112 The Plant Protection 
Ordinance is complemented by provisio ns for temporary (emergency) measures.113 According to 
the authorities, Swiss phytosanitary import requir ements are now fully harmonized with those of 
                                               
106 Seco online information. Viewed at: 
http://www.seco.admin.ch/themen/00513/00730/01220/04172/index.html?lang=fr . 
107 RS 817.02. 
108 Federal Law on non-human gene technology (R S 814.91);  see also RS 814.911 and RS 817.022.51. 
109 See document " Aliments OGM pour animaux au torisés et tolérés en Suisse ", Federal Office for 
Agriculture online information. Viewed at: http://www.blw.admin.ch/themen/00011/00074/index.html?lang=fr . 
110 Federal Office for Health on line information. Viewed at: 
http://www.bag.admin.ch/themen/lebensmittel/04858/04863/04883/index.html?lang=fr . 
111 The moratorium does not apply to imports of GM food or research. 
112 Ordinance on the protection of plants (RS 916.20) of 27 October 2010. See WTO document 
G/SPS/N/CHE/71, 23 March 2010. 
113 Ordonnance de l'OFAG sur les mesures phytosanitaires à caractère temporaire  (OMPT) 
(RS 916.202.1). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  the EU (Directive 2000/29/CE). A "plant passport" is required for plant imports from EU member 
States that are potential carriers of pests hazardous for Switzerland (Article 8). A new requirement subjects products from a non-EU country that transit through an EU country to physical inspection by the Swiss competent authorities, unless such a control has already taken place upon first entry 
into the EU territory (Article 9.1). Phytosanitary import requirements from non-EU countries 
remain otherwise unchanged. Plants may be imported  only from enterprises approved by the Swiss 
Federal Plant Protection Service.
114 Specific import requirements are applied to products with a 
high phytosanitary risk, which are subject to phytosanitary certificate with an additional 
declaration. 
3.106.  A revised ordinance on pesticides, which entered into force in May 2010, regulates the 
conditions for the authorization, packaging, labelling, and advertising of pesticides.115 A relevant 
international standard is not available, according to the Swiss SPS notification.116 The objective of 
the revision was harmonization with the EU requirements for pesticides.117 According to the 
authorities, mutual recognition of authorizations with EU member states and parallel trade with the 
EU is still not possible. 
3.3.4  State-trading and state-owned enterprises 
3.3.4.1  Overview 
3.107.  The Swiss Confederation continues to exercise a statutory monopoly over imports of 
alcohol. For bio-ethanol used as fuel, the exclusive import rights have been lifted since the last TPR in 2008. A complete overhaul of the legal and institutional framework governing the alcohol subsector is under way. Under the alcohol reform, the import regime will be liberalized by 
withdrawing the State's import monopoly, and nume rous restrictions on domestic production of 
alcohol and spirits will be phased out.  
3.3.4.2  State trading 
3.108.  The Swiss Alcohol Board ( Régie fédérale des alcohols ) remains the only state-trading 
enterprise that Switzerland has included in its WTO notifications.
118 The Alcohol Board operates on 
behalf of the Swiss Confederation with the aim of reducing the production and consumption of 
spirits according to Article 105 of the Federal Constitution. 
3.109.  Pursuant to the Alcohol Act of 1932, the Confederation is vested with exclusive rights 
(monopolies) for the production of spirits, production of alcohol, and imports of alcohol. The Alcohol Act is currently undergoing a complete revision involving the termination of all 
three federal monopolies.
119 The authorities expect the new legislation to enter into force by 
1 July 2014.  
3.110.  Meanwhile, the alcohol import mo nopoly is still carried out through " Alcosuisse " (a profit 
center of the Swiss Alcohol Board) for ethanol containing at least 80% by volume of alcohol. 
Imports of high-grade alcohol by the private sector  are subject to prior authorization by the Swiss 
Alcohol Board. Private-sector imports of ethanol and spirits containing no more than 80% by 
volume are allowed without restriction and permit. The State's import monopoly for bio-ethanol 
used as fuel was terminated on 1 July 2008.120 Alcosuisse imports about 38 million kg of ethanol 
annually (47 million litres of pure ethanol), and is required by law to sell at cost; reference prices are published.
121 Alcosuisse is to be privatized as part of the alcohol reform. 
                                               
114 Article 9.4 of RS 916.20. 
115 Ordonnance du 12 mai 2010 sur la mise en circulation des produits phytosanitaires  (OPPh) 
(RS 916.161), revised with effect from 19 December 2011.   
116 See WTO document G/SPS/N/CHE/71, 23 March 2010. 
117 Regulation (EC) No 1107/2009.  
118 WTO document G/STR/N/14/CHE, 21 June 2012. The Alcohol Board is the Confederation's oldest 
institution (125 years). 
119 Loi fédérale sur le commerce des boissons alcooliques  (LCal) (Projet). 
120 Imports of bio-ethanol totalled 3.7 million litres in 2010; there is no domestic production.   
121 Ordonnance du 29 janvier 1998 concernant les prix de vente de l’eau-de-vie et de l’alcool pratiqués 
par la Régie fédérale des alcools  (RS 683.21). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.111.  Imports of ethanol containing at least 80% by volume of alcohol (HS 2207.1000) are 
subject to an MFN duty of SwF 35/100 kg. The consumption tax on alcoholic beverages or food ranges from zero to SwF 116/l of pure alcohol ("alcopops"), depending on the product and alcohol content. There is no consumption tax on wine (up to 18% alcohol content). Ethanol for industrial 
purposes (denatured) is exempt from tax.
122 
3.112.  The Confederation has traditionally confe rred its exclusive rights to produce ethanol and 
spirits to the private sector. Concessions by the Alcohol Board are granted restrictively in 
accordance with the Alcohol Act. Under the alcohol reform, the restrictive administrative regime 
(currently involving 43 types of authorization) will be replaced by a producer and importer registration requirement ("ethanol register").
123  
3.113.  Imports and sales of various types of salt in Switzerland remain under cantonal monopoly 
(régale du sel ).124 The purpose of the monopoly is to ensu re security of supply. The monopoly is 
exercised by Saline de Bex SA (owned mainly by the canton of Vaud), and Salines Suisses du Rhin SA (owned by all cantons, except Vaud, and the Principality of Liechtenstein). The cantons, 
through Salines Suisses du Rhin, also fix the price of salt, which includes a tax ( droits de régale ) 
on imported and domestically produced salt. The most widely used salt type (road salt) is subject to a tax of SwF 0.94/tonne (Chapter 3.1.4). Customs duties apply. Swiss salt imports are in the 
range of 50,000-70,000 tonnes annually. 
3.114.  As a consequence of the Swiss salt monopoly, imports of salt and salt by-products (with a 
sodium chloride content of at least 30% and salt solutions with a sodium chloride content of at least 18%) are subject to authorization by the saltworks. For imports into all cantons, except 
Vaud, import licences are granted only if salt, salt by-products or salt solutions are required and 
no appropriate products are available from Salines Suisses du Rhin. This non-tariff measure applies for example to products such as olives and other vegetables that are preserved in brine but 
unsuitable for immediate consumption (HS 0711.2000).
125  
3.115.  Liechtenstein, as a shareholder of Salines Suisses du Rhin, is partially supplied by the 
company. Because of its EEA membership, Liechtenstein no longer participates in the Swiss 
cantonal monopoly on salt and has replaced the monopoly with an excise duty. All products 
covered or affected by the Swiss salt monopoly (for example fish in br ine), are subject to the 
Market Control and Surveillance Mechanism (Box 2.1). 
3.3.4.3  State-owned enterprises 
3.116.  There have been no major developments regarding Swiss state-owned enterprises since 
2008. Swiss SOEs remain active in the energy and water sectors, and a number of service subsectors, some of them benefiting from exclusive rights and privileges (Table A3.1). The SOEs in 
federal ownership (CFF, Swisscom, Skyguide, and Sw iss Post) operate within the framework of the 
"strategic objectives", including on financial and personnel matters, which are fixed for four-year intervals by the Federal Council.  
3.117.  The legal and institutional framework for po stal services in Switzerland is undergoing a 
complete revision. The reform entails, inter alia , transforming Swiss Post ( la Poste Suisse ) into a 
public company, and eliminating fiscal privileges and State guarantees. Swiss Post's monopoly for the delivery of domestic and international in bound letters was reduced from 100 g to 50 g, 
effective 1 April 2009. As a result, about 25% of the volume of domestic letters (approximately 
30% of the total revenues) is open to competition (Chapter 4.4.4.1).  
3.118.  There have been no changes regarding state-owned enterprises in Liechtenstein since its 
last TPR in 2008. State-owned or private enterprises continue to hold exclusive rights or exercise 
monopoly powers over the supply of energy, public passenger transport, and certain postal services (Table A3.1).  
                                               
122 Partial denaturing, for tax purposes, is subj ect to authorization by the Alcohol Board. 
123 Loi fédérale sur l’imposition des boissons spiritueuses et de l’éthanol (Limpspi) (Projet). For example, 
after a ban of more than 100 years, agricultural producers will again be allowed to distil potatoes.  
124 Inter-Cantonal Convention on the sa le of salt in Switzerland (RS 691). 
125 Federal Customs Administration online  information, "Tares". Viewed at: www.tares.ch . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.3.5  Competition policy and price controls 
3.3.5.1  Switzerland 3.3.5.1.1  Overview 3.119.  In Switzerland, limited competition in various industries, for reasons such as legal and 
regulatory issues at the federal level, has resulted in higher prices of certain products and services 
than in comparable EU and U.S. markets. The co mpetition authorities are eager to achieve a high 
degree of competition effectiveness, not only by proposing long-term projects aiming at aligning 
the legal instruments with international best practices, but also by taking signal decisions in 
numerous enforcement actions. 
3.120.  Most of the developments in the competition regime during the review period resulted from 
the recommendations from the Synthesis Report by  the Task Force Cartel Act presented to the 
Federal Council on 14 January 2009.
126 The Report found that the legal instruments adopted by 
the 2003 revision (leniency programme, opposition proceedings, and raids) had enabled the competition authority to prevent and uncover prac tices diminishing competition, and promoted the 
preventive effect of the Cartels Law (LCart) and its conformity with the competition regulations' 
standards. However, in certain areas, international best practices had not been achieved. Therefore, the Report concluded with a series of proposals intended for the consideration of 
Parliament and the executive authorities. For exam ple, it considered that the various authorities 
dealing with competition matters must be totally independent of political influences and business, and their current organization must be replaced with a system with a single level of authority. 
3.121.  The Report also noted that Switzerland does not maintain any agreements on cooperation 
in competition matters with other states. In view of the growing importance of globalization and 
the increasing frequency of cross-border antitrust practices, it deemed it appropriate to conclude cooperation agreements with its main trading partners in order to make possible the exchange of 
confidential information.
127 Due to certain deficiencies in the Swiss measures to effectively 
enhance competition, mergers that may have a strong negative effect on competition, and 
consequently on the economy and on consumer welfare in Switzerland, might be approved. 
According to the Report, the harmonization of th e Swiss merger control system with the EU's 
would eliminate these problems. For example, this harmonization would result in the introduction of the SIEC-test.
128 
3.122.  The Report also considered it necessary to amend the LCart and its current application in 
order to examine each vertical agreement in the light of its effect on the competition. 
3.3.5.1.2  Legal and institutional framework 3.123.  Legislation on competition has not changed substantially since 2004. Four main laws 
continue to regulate competition: the Federal Law on cartels and other impediments to competition 
of 6 October 1995 (Cartels Law, LCart, RS 251), amended in 2004; the Federal Law against unfair 
competition of 22 October 1992 (LCD, LR 24), amended in 2002; the Federal Law on the internal 
market of 6 October 1995 (LMI, RS 943.02), am ended in 2006; and the Law on price surveillance 
of 20 December 1985 (LSPr), which allows price investigations by the Price Controller when competition is deemed to be lacking.  
3.124.  The Swiss competition authority consists of a secretariat and the non-permanent 
Competition Commission (Comco) responsible for enforcing the legislation. Comco currently 
consists of 12 members, including the President and Vice-Presidents (who are nominated by the Federal Council), independent experts, and representatives of various interest groups (e.g. 
industry, retail, consumer, labour, and agricultural associations). Some members also hold 
                                               
126 Synthesis Report. Viewed at: 
http://www.weko.admin.ch/dokumentation/00216/index.html?lang=en . 
127 In its 2010 annual report, Comco showed that, in vari ous cartel cases, where the EU had also opened 
an investigation, the possibility of enhanced cooperatio n would have made for greater efficiency in identifying 
and eliminating the cartels concerned. 
128 The significant impediment of effective competition (SIEC) test, introduced in 2004 in the 
European Union merger control, aims at eliminating enforcement gaps that may exist in the dominance test. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  positions on company boards. The secretariat carries out investigations and submits the results to 
Comco for decision. 
3.125.  As a way of enhancing international cooperation, the Federal Council has initiated 
consultations with a view to introducing in the LCart a provision (through a new Article 41) for 
Comco to cooperate closely with foreign authorities, to communicate confidential information to 
them, including business secrets, and to coordinate cartel investigations with those authorities. However, the Federal Council decided not to address international cooperation in the legislation. It 
considers that another route for enhancing cooperation is the conclusion of second-generation 
cooperation agreements allowing the exchange of confidential information with Switzerland's main 
trading partners. An example is the Switzerland-EU agreement on cooperation and competition matters, which is near completion. 
3.126.  One important revision relates to the rules on rebutting the presumption that effective 
competition has been eliminated. The revised Vertical Notice on the competition law treatment of vertical agreements (the Vertical Notice), issued on 28 June 2010, takes into account the most 
recent case decisions made by Comco, as well as developments in EU competition law, and states 
that, in order to rebut the presumption, an overall consideration of the market, including economic efficiency, is decisive, even for clauses that are considered to be "qualitatively serious agreements 
such as resale price maintenance and absolute terri torial protection". This amendment to the rules 
on vertical restrictions has been criticized. Thus, during the consultation to which the reform gave rise, the Price Controller observed that "the abandonment of the current presumption that effective competition has been eliminated under vertical (h ard core) agreements, as proposed in the draft, 
would send the wrong signal. It is absolutely nece ssary to avoid giving the impression of a return 
to a more permissive practice with regard to vertical agreements, inasmuch as resale price maintenance and agreements on absolute territorial protection are important reasons for the high 
level of prices in Switzerland".
129 
3.127.  Furthermore, when assessing whether an agreement is justified for reasons of economic 
efficiency, the Vertical Notice takes into account not only the market share of the provider, which 
was already the case in the past, but also the customer's share in the supply market. This is 
because some buyers may also have market power with potentially negative effects on competition. 
3.128.  The Vertical Notice also makes it possible, in principle, for any dealer to use the Internet to 
sell its products. 
3.129.  A possible amendment to the communication of 21 October of 2005
130 on vertical 
agreements in the field of motor vehicle distribution  is currently the subject of consultations in the 
industry. They revolve around whether the communication should be maintained in its present 
form, revoked or adapted with due regard to, inter alia , the revision of the European Motor Vehicle 
Block Exemption Regulation.131 On 16 July 2012, the Comco decided to keep the current 
communication unchanged. The Comco will decide in the second half year of 2014 if the existing 
rules in the automotive industry have to be reconsidered.  
3.130.  The Federal Council has submitted to the Federal Chambers, for approval, a far-reaching 
revision of the LCart. The Parliament decided to  enter into debate in June 2012. The draft text 
provides for the establishment of an independ ent competition authority, which will conduct 
enquiries and submit its proposals to an independent tribunal of first instance, which will have decision-making power. The specialized judges of this competition tribunal will have to meet high 
standards of independence with regard to possible economic and political interests. This new 
tribunal will be fully integrated into the Federal Administrative Tribunal. Its proceedings are also to be expedited through shortened time-frames for legal action. 
3.131.  The draft modifies the standard of pr oof for certain anti-competitive agreements 
(horizontal agreements on prices, quantities an d geographical distribution, certain vertical 
                                               
129 Price Controller Annual Report 2010, p. 870. 
130 Viewed at: http://www.weko.admin.ch/dokumen tation/01007/index.html?lang=fr . 
131 On 27 May 2010, the European Commission adop ted Regulation No. 461/2010 and the guidelines 
relating thereto, introducing new competition rules for the motor vehicle industry. A decision will be taken by 
the end of 2012. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  agreements on prices and territorial partitioning) by no longer requiring the provision of evidence 
that such agreements constitute a significant impairment of competition. 
3.132.  The revision also concerns civil proceedings under cartel law. Currently, locus standi  is 
reserved to economic operators whose access to co mpetition or exercise thereof is impeded. The 
draft grants legal standing to the end customers. 
3.133.  The reform simplifies and strengthens control of the operations of concentrations, provides 
for consideration to be given to the establishment of conformity programmes at the sanction 
stage, and improves the opposition procedure. 
3.134.  All the same, various proposals made during the consultations on revision of the LCart 
were not taken up in the message addressed to the Federal Chambers. That is the case, in particular, for the introduction of criminal penalties against natural persons that have contributed 
to the violation of the law relating to cartels. Various groups that have been consulted have 
expressed their endorsement of the basic purpose of  the LCart, namely that of a legal basis for 
corporate entities exclusively.
132 
3.3.5.1.3  Enforcement 
3.135.  A significant part of the competition secret ariat's activities have been concentrated on the 
most harmful forms of horizontal restraints of competition, with a particular focus on bid rigging, a 
quite widespread behaviour in Switzerland. These activities followed three approaches: prevention 
and information, which involved measures intended to raise awareness; exposure, which comprised collection and evaluation of bid data; and prosecution. 
3.136.  Vertical restraints were another priority area. In a landmark ruling against a toothpaste 
manufacturer in 2009, Comco made its first ever decision relating to an absolute territorial 
protection agreement, by condemning the manufac turer's imposition of an export ban on its 
Austrian licensee. By condemning an anti-competitive obstacle to parallel importation, permitted 
under the principle of international exhaustion of ri ghts (see section 3.3.6), this decision illustrates 
how competition policy and intellectual property laws share the same basic objective of promoting 
consumer welfare and an efficient allocation of resources. More recently, Comco confirmed its 
determination to act against any restrictions of imports by means of vertical agreements that 
foreclose territory, by imposing heavy fines on producers of cameras (2011) and cars (2012), which had unlawfully restricted parallel imports. In all three cases (toothpaste, cameras, and cars), the Federal Administrative Court still has to rule on the appeals filed by the undertakings 
involved. Comco also ruled, in another landmark decision, that restrictions of online trading in 
principle contravene the LCart and that they are permitted only on very strict conditions. For example, it may be justified in a selective distri bution network to require online distributors to 
meet the same requirements as licensed specialist dealers and to operate a physical sales outlet. 
3.137.  The competition authorities have received numerous enquiries as to why, when the euro is 
weak, buyers or consumers of imported goods, with prices originally set in euros, do not profit or 
do not profit in full from the resultant lower prices in Swiss francs. A number of reasons, not 
necessarily specific to Switzerland, could explai n this phenomenon. For example, the cost-reducing 
effect of a stronger Swiss franc is felt in many sectors only after a certain time and only where there are lasting exchange rate benefits, because goods are often imported on long-term 
contractual arrangements based on a rate fixed in the past. In some cases, goods are also 
purchased abroad in Swiss francs.
133 List prices for durable goods may be fixed in advance, in 
Swiss francs, and not adjusted on a daily basis.  Short-term cost reductions may however be 
passed on as discounts. For example, although Swiss car dealers did not reduce their list prices in 
2010 as a result of the strong franc, they did react to provide a "euro bonus".134 A number of 
proceedings have also been opened where there was evidence of unlawful restraints of 
                                               
132 See Feuille Fédérale  No. 10 of 6 March 2012, page 1635. Viewed at: 
http://www.admin.ch/ch/f/ff/2012/index0_10.html . 
133 Comco (2011). 
134 Comco (2011). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  competition. The heavy workload due to proceedings already opened, has resulted in new cases 
being placed on hold.135 
3.3.5.1.4  Price supervision 3.138.  The Price Supervision Act has not b een amended since 1 January 2007. The Price 
Supervisor observes price developments and prev ents abusive price increases and abusive price 
maintenance in any market, where the price level is not the consequence of effective competition, and informs the public about her/his activities. 
3.139.  Enterprises with market power may submit envisaged price increases to the Price 
Supervisor. In addition, anyone who believes that a price has been increased or maintained in an abusive manner may address a notice of abuse to the Price Supervisor. The latter will determine 
whether there are indications of abusive price fixing, and if so will attempt to reach a mutual 
agreement with the respective enterprise. If no agreement can be reached, the Price Supervisor 
will prohibit all or part of the increase or order a reduction in price. Anyone who intentionally fails to observe a price reduction order, or increases a price in spite of prohibition or exceeds a price 
fixed in a mutual agreement, is liable to a fine of up to SwF 100,000. The Price Supervisor must be 
informed in advance if prices are to be fixed or approved by other authorities (i.e. an executive or 
legislative authority of the Confederation, of a canton or commune, or another federal price 
regulator). In these cases, the Price Supervisor may make recommendations. 
3.140.  The Price Supervisor has launched enquiries on abusive prices in several sectors of the 
economy, including health care, gas, postal services, and public transport.
136 In the field of public 
health, the new financing scheme for health care in nursing homes for the elderly and home care, 
introduced on 1 January 2011, is also being monitored by the Price Supervisor since it has 
occasionally led to an illegal and substantial increase in the financial burden on residents of nursing homes. A study considering tariffs of 88 nursing homes revealed major disparities, which 
the Price Supervisor found to be hardly justifiable. In his view, the problem appears to lie in the 
lack of regulation to ensure that the residual financing for health care was carried out according to the law passed by the Federal Parliament. 
3.141.  The Price Supervisor, like Comco (see above), has also addressed the question of the 
strong Swiss franc. Due to an express request of the Federal Council, particular attention has been paid to the impact on national price levels in all current case files. The Price Supervisor also set up an internal unit to deal with the problem of import  prices and the fact that exchange rate benefits 
resulting from the appreciation of the Swiss franc, vis-à-vis the euro in particular, were not 
entirely transmitted to Swiss consumers. 
3.142.  The Price Supervisor welcomed the implementation of the Cassis de Dijon  principle in 
Switzerland on 1 July 2010, under which products legally placed on the market in the EU or the 
European Economic Area may, in principle, be so ld in Switzerland without any additional approval. 
According to the Price Supervisor, "the lifting of technical barriers to trade resulting from this 
Cassis de Dijon principle facilitates international trade and promotes competition and therefore can 
be expected to bring down prices that are still above international price levels".
137 
3.3.5.2  Liechtenstein 3.143.  Liechtenstein does not have national competition legislation. Competition issues are dealt 
with mainly under the EEA and EFTA treaties. Two EU acts have been implemented.
138 The Office 
of Economic Affairs has jurisdiction over competition issues unless the jurisdiction of the national court is relevant. 
                                               
135 Comco (2011). 
136 The Price Controller publishes an annual report on the main cases analysed.  Viewed at: 
http://www.preisueberwacher.admin.ch/dokumentation/00073/00083/index.html?lang=fr . 
137 Price Controller Annual Report, 2010. 
138 The Act of 23 May 1996 regarding the Implementation of the Competition Rules in the EEA as 
amended in 2006, and the Act of 22 October 1992 on unfair competition, as amended in 2008. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.3.6  Trade-related intellectual property rights 
3.3.6.1  Overview 3.144.  Intellectual property (IP) occupies a central place in the domestic economy and the 
international trade profile of Switzerland. According to the 2012 Global Innovation Index , 
Switzerland retained its 2011 first-place ranking in innovation performance (innovation capabilities 
and results) out of 141 countries or economies.
139 The 2012-13 Global Competitiveness Report  
indicates that Switzerland again heads the overall rankings.140 The central role of innovation in 
Switzerland was also reported in the European Union's 2011 Innovation Union Scoreboard .141  
3.145.  Revision of Swiss IP legislation is on-going, mainly to keep pace with technological 
developments and, where the authorities deem a ppropriate, to harmonize with treaties and EU 
legislation.  
3.146.  The competent authorities for IP issues  in Switzerland and in Liechtenstein are, 
respectively, the Swiss Federal Institute of Intell ectual Property (FIIP) of the Federal Department 
(Ministry) of Justice and Police142, and the Bureau of Intellectual Property of the Liechtenstein 
Office (Ministry) of Economic Affairs.143 Under the 1978 bilateral Treaty on the Protection 
Conferred by Patents for Inventions, concluded within the framework of the Customs Union Treaty, Liechtenstein and Switzerland form a unitary territory for the purposes of patent protection: a 
patent valid in one party's territory is also valid in the other's.
144 Patent applications made through 
the national, regional (i.e. under the 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 , copyright, 
trademarks, industrial designs and topographies of  integrated circuits. In addition, Liechtenstein 
implements EEA rules on intellectual property.  
3.147.  Switzerland and Liechtenstein are members of the WIPO and are parties to most of its 
treaties
145, as well as to other international conventions of relevance to intellectual property.146 
Since the last TPR in 2008, Liechtenstein has not adhered to or ratified other WIPO treaties in force. Switzerland ratified the Singapore Tr eaty on the Law of Trademarks, effective 
6 March 2009
147, and signed the WIPO's new Beijing Treaty on Audio-visual Performances on 
26 June 2012.148  
3.148.  In the context of EFTA, Switzerland and Li echtenstein have concluded or are in the process 
of negotiating, with individual third countries, groups of countries or entities, free-trade 
agreements or trade and economic cooperation ag reements with an IP component that ranges 
from a general reference to IP protection to highly detailed provisions on certain IP sectors.149 
                                               
 139 INSEAD-WIPO (2012). See also WIPO-INSEAD press release, 3 July 2012. "Release of the Global 
Innovation Index 2012: Switzerland Retains First-Place Position in Innovation Performance". Viewed at: 
http://www.wipo.int/pressroom/en/articles/2012/article_0014.html . 
 140 World Economic Forum (2012). 
141 European Union (2012). In a comparison between the innovation performances of the 27 EU member 
States and a selection of other be nchmark countries, Switzerland was ranked as "the overall innovation 
leader". The report focuses on  innovation in services.  
142 IPI online information. Viewed at: www.ipi.ch . 
143 Viewed at: www.avw.llv.li . 
144 Viewed at: https://www.ipi.ch/patente/schutz-in-der-schweiz.html  and 
http://www.llv.li/amtsstellen/llv-avw-immaterialgueterrecht/llv-avw-immaterialgueterrecht-patentrecht.html . 
145 WIPO online information, "About WIPO :  Members and Observers". Viewed at: http://www.wipo.int/ . 
146 For a detailed list of WIPO's conventions and of ot her treaties see WIPO online information. Viewed 
at: http://www.wipo.int/wipolex/en/under  "Treaty Membership". See also, for Switzerland 
http://www.wipo.int/wipolex/en/profile.jsp?code=CH; and for Liechtenstein http://www.wipo.int/wipolex/en/ 
profile.jsp?code=LI . 
147 The Singapore Treaty of 27 March 2006 deals, inter alia , with administrative trademark registration 
procedures. Viewed at: http://www.wipo.int/treaties/en/ShowResults.jsp?lang=en&treaty_id=30 , and 
http://www.wipo.int/treaties/en/ip/singapore/summary_singapore.html . 
148 WIPO online information. Viewed at: http://www.wipo.int/treaties/en/ip/beijing/ . 
149 FTAs containing an IP element and in force within the EFTA framework: Albania; Chile; Colombia; 
Croatia; Egypt; Gulf Cooperation Council; Hong Ko ng, China; Israel; Japan (bilateral); Jordan; Korea; 
Lebanon; FYR Macedonia; Mexico; Mont enegro; Morocco; Palestin e; Peru; Serbia; Singapore; Southern African 
Customs Union (SACU); Tunisia; Turkey; and Ukraine. Negotiations on free-trade agreements are currently WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Switzerland's bilateral FTA with Japan covers various IP fields, notably biotechnology and 
geographical indications. Provisions relating to patents in that agreement also apply to Liechtenstein.
 Switzerland has concluded bilateral agreements with the EU and Russia on 
geographical indications (see section 3.3.6.5). 
3.149.  In compliance with Article 63.2, Switzerland notified the amended and new laws or 
regulations to the TRIPS Council in February 2009.150 
3.150.  The number of patent applications, patent s granted, and trademark and industrial design 
applications were relatively stable between 2008 and 2011 (Tables 3.8 and 3.9). 
Table 3.8 Switzerland: Applications for tradem arks, industrial designs, and patents, and 
patents granted, 2008-11  
 2008 2009 2010 2011 
Trademark applications     
Resident  
Non-resident 
Total  
Abroad 11,885 
19,629 
31,514 
126,673 11,843 
17,102 
28,945 
113,006 11,065 
16,858 
27,923 
143,393 10,815 
18,247 
29,062 
143,131 
Industrial designs applications      
Resident 
Non-resident 
Total 
Abroad 1,123 
1,168 
2,291 
32,471 1,069 
1,089 
2,158 
29,818 1,164 
1,351 
2,415 
32,395 1,114 
1,411 
2,515 
37,458 
Patent applications     
Resident 
Non-resident 
Total  
Abroad 7,566 
439 
8,005 
29,653 7,550 
394 
7,944 
28,293 8,364 
533 
8,897 
31,029 8,002 
446 
8,448 
29,475 
P a t e n t  g r a n t e d      
Resident 
Non-resident 
Total 
Abroad 2,930 
277 
3,207 
11,546 2,805 
377 
3,182 
11,633 2,850 
280 
3,130 
13,711 2,773 
125 
2,898 
14,791 
Source: WTO Secretariat, based on WIPO statistics data, last updated in December 2012. 
Table 3.9 Liechtenstein:  Applications for trademarks, in dustrial designs, and patents, 
and patents granted, 2008-11  
 2008 2009 2010 2011 
Trademark applications     
Resident  
Non-resident 
Total 
Abroad 205 
4,319 
4,524 
8,807 1 
3,020 
3,021 
5,292 1 
2,677 
2,678 
5,332 1 
2,629 
2,630 
5,893 
                                                                                                                                               
engaged within the EFTA framework with: Bosnia-Her zegovina; Central American  S t a t e s  ( C o s t a  R i c a ,  
Guatemala, Honduras, and Panama); China (bilateral); India; Indonesia; Malaysia; Russia-Belarus-Kazakhstan; Thailand; and Viet Nam. Viewed at: http://www.seco.admin.ch/themen/00513/00515/01330/04619/index.html?lang=en ; http://www.efta.int/free-
trade/free-trade-agreements.aspx ; and http://www.efta.int/fre e-trade/ongoing-negotiations-talks.aspx  .  
150 WTO documents IP/N/1/CHE/4 (summary table of revised laws and regulations); IP/N/1/CHE/O/16 
(statute and tasks of the FIIP); IP/N/1/CHE/O/17 (FIIP's fees); IP/N/1/CHE/C/5 and 6 (copyright and related rights); IP/N/1/CHE/T/3 and 4 (trademarks and indications of source); IP/N/1/CHE/G/13 (designation "Swiss" for watches); IP/N/1/CHE/14 to 18 (geographical indi cations for agricultural products and processed 
agricultural products, control requirem ents, viticulture and import ation of wines, vine va rieties permitted, etc.); 
IP/N/1/CHE/D/5-6 (designs); IP/N/1/CHE/P/10 (12-13 (patents for inventions); IP/N/CHE/1/P/10-11 (protection of new plant varieties); IP/N/1/L/4-5 (topographies of semi-conductor products); IP/N/1/CHE/O/18 (production and placing on the market of feedstuffs); IP/N/CHE/O/19 (right of the Confederation to institute 
proceedings in the context of the Law on Unfair Competition); IP/N/CHE/O/20-21 (medicinal products and 
medical devices); IP/N/CHE/O/22 (cartels and other impediments to competition); IP/N/CHE/O/22 (unfair competition); and IP/N/1/CHE/U/3 (placing on the market of phytosanitary products). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   2008 2009 2010 2011 
Industrial designs applications     
Resident 
Non-resident 
Total 
Abroad  6 
393 
399 
1,257 1 
300 
301 
881 5 
300 
305 
1,110 5 
293 
298 
1,156 
Patent applications     
Resident 
Non-resident 
Total  
Abroad 230 
- 
230 
814 222 
- 
222 
686 290 
- 
290 
1,415 221 
- 
221 
936 
P a t e n t  g r a n t e d      
Resident 
Non-resident 
Total 
Abroad 131 
- 
131 
451 114 
- 
114 
436 116 
- 
116 
442 129 
- 
129 
421 
Source: WTO Secretariat, based on WIPO statistics data, last updated in December 2012. 
3.3.6.2  Patents  
3.151.  The Patent Law of 1954 and its Ordinance, as revised up to 2008, govern patent protection 
in Switzerland and Liechtenstein.151 In addition to the 20-year patent term for protection under the 
TRIPS Agreement, the revised Patent Law also provides for a supplementary (complementary) protection certificate (SPC) for patented inventions requiring federal authorization before being put on the market. This currently concerns pharmaceuticals and pesticides. The SPC is aimed at giving 
the patentee the possibility of recovering the time lost while awaiting market authorization. The 
maximum extension is five years. 
3.152.  On 19 December 2008, the Parliament adopted, with some significant amendments, the 
Federal Council's draft Article 9a of the Patent Law.
152 The amendments relate to the issue of 
exhaustion of patent rights, and constitute a notable change in the Swiss approach.153 The text 
adopted on 19 December 2008 (entered into force on 1 July 2009) relates to:  
 as a unilateral decision by the Swiss Parliament, the EEA-wide exhaustion principle applies 
to patent inventions (products and processes) (Article 9a(1)). By virtue of the EEA exhaustion principle, patent owners cannot prev ent the parallel importation of their patented 
products put on the market of EEA members by themselves or with their consent. 
 it is permitted to import products placed on the market outside the EEA by the patent owner 
if the patent protection is of a lesser degree of importance for the functional characteristics of the product.
154  
                                               
151 See WTO (2009) for details on the revised legislation, and document WT/TPR/M/208/Add.1, for 
Switzerland's replies to the questions posed by th e delegations of Canada, Colombia, Mexico, and the 
United States during the TPR meeting. In the context of TRIPS Council meetings, Switzerland provided further information on the application of the revised Patent Law, notably with regard to the disclosure requirement in patent applications. See IP/C/M/69, para.86; and IP/C/M/66, paras. 79-86. 
152 Loi fédérale sur les brevets d'invention (LBI) - Modification du 19 décembre 2008 , RO 2009 2615. 
Viewed at: http://www.admin.ch/ch/f/as/2009/2615.pdf . 
153 See Federal Court decision Kodak vs. Jumbo-Ma rkt AG, BGE 126 III 129 pp. 130 et seq. Law on 
Cartels, Article 3, para. 2. Viewed at: http://www.admin. ch/ch/e/rs/251/a3.html. Sentence inserted by No. I of 
the Federal Act of 20 June 2003, in force since 1 April 2004 (see RO 2004 1385). Article 3, paragraph 2 reads as follows: "This Act does not apply to effects on co mpetition that result exclusively from the legislation 
governing intellectual property. Howeve r, import restrictions based on inte llectual property rights shall be 
assessed under this Act ." See Message concernant la modification de la loi sur les brevets et l'arrêté fédéral 
portant approbation du Traité sur le droi t des brevets et du Règlement d'exécution , 23 November 2005, 
paragraph 2.4.1. Viewed at: http://www.admin.ch/ch/f/ff/2006/1.pdf . At the requests ("motions") of the 
two Chambers of the Parliament, the Federal Council su bmitted in 2007 a separate piece of law on exhaustion 
of patent rights. 
154 Viewed at: https://www.ige.ch/e n/legal-info/legal-areas/pat ents/parallel-imports.html . (See also 
Feuille Fédérale  2006, p. 111. Viewed at: https://www.ige.ch/fileadmin/user _upload/Juristis che_Infos/d/ 
medienmitteilungen/mm_patg_erschoepfung_20090529_d.pdf ). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   for products the prices of which are fixed by the State in Switzerland or abroad, the patent 
owners' consent for importation is necessary, in other words national exhaustion continues to apply in that situation. This specifically affects pharmaceutical products. 
 for inventions regarding agricultural inputs and capital goods, international exhaustion 
continues to apply.
155 
 in the context of the Patent Law revision, the Parliament also abrogated Article 14, 
paragraph 3 of the Law on Therapeutic Products, prohibiting the importation of an original 
product authorized pursuant to a simplified procedure of market authorization as long as the 
product is patented. The ground for such an abrogation was to "dissociate public tasks from the enforcement of patent rights by private parties".
156 
3.153.  There are currently no publicly available fi gures reflecting the impact of these changes on 
the availability and affordability of the products concerned.  
3.154.  As a member of the EEA, Liechtenstein a pplies EEA-wide exhaustion. The shift to EEA-wide 
exhaustion by Switzerland may have the effect of bringing the concept of a unitary patent system 
for the two countries into consonance with Liechtenstein' participation in the EEA.  
3.155.  The Swiss Law on Patent Attorneys, which entered into force on 1 July 2011, regulates the 
use of the professional title "patent attorney".157 It also entails changes, mainly of a procedural 
nature (e.g. regarding domicile or residence requirement), in other related pieces of legislation, 
including the Swiss Federal Patent Law, the Law on Trademarks, the Law on Designs, and the Swiss Federal Law on the Statute and Tasks of the Federal Institute for Intellectual Property. This 
amendment, aimed at bringing the Swiss patent framework into accord with other European legal 
frameworks, constitutes a more liberalized approach to the exceptions permitted under paragraph 
2 of TRIPS Article 3 on national treatment.  
3.156.  The Swiss Law on the Federal Patent Court establishes a national special court competent 
for patent litigation at first instance, the Tribunal Fédéral (Supreme Court) being the last instance. 
The Federal Patent Court replaces the 26 cantonal courts. It comprises both legally and technically trained judges. English may be used as the language of proceedings provided that the Court and 
the parties give their consent. This law entered in to force on 1 March 2010 (for organizational and 
institutional clauses) and has been fully operative since 1 January 2012.
158 
3.157.  In the area of patents, the share (in percentage) of patent applications by top fields of 
technology during 1997-2011 is, for Switzerland: pharmaceuticals (11.59), organic fine chemistry 
(9.24), medical technology (8.13), handling (6. 38), measurement (5.83), electrical machinery, 
apparatus, energy (4.37), basic materials chemistry (4.10), biotechnology (3.74), other special machines (3.51), food chemistry (3.42), and others (39.69).
159 For Liechtenstein, the share is: 
machine tools (21.75), mechanical elements (11), pharmaceuticals (9.36), medical technology 
(6.38), civil engineering (5.93), electrical machin ery, apparatus, energy (5.32), transport (4.55), 
other special machines (4.00), measurement (3.87), surface technology, coating (3.70), and 
others (24.14).160  
3.3.6.3  Plant varieties 3.158.  Information provided in the 2008 TPR of Sw itzerland and Liechtenstein on the protection of 
plant varieties in Switzerland remains valid. The 2008 legislation reflecting notably the 1991 Act of 
                                               
155 See WTO (2009).  
156 Former Article 14, paragraph 3, Law on Therapeutic Products (RS 812.21).  
157 RS 935.62. For example, whoever wishes to use this title must possess the required professional 
qualifications, i.e. must have passed the patent attorn ey exam and hold a university degree in science or 
engineering as well as have professi onal experience. Before commencing pr acticing under this title, a patent 
attorney must prove through a federa l patent attorney examination that he or she possesses the required 
professional qualifications in order to be entered into a new patent attorney register. The register is maintained 
by the Swiss Federal Institute of Intellectual Property. As at end-November 2012, 417 patent attorneys were registered. 
158 RS 173.41. 
159 Viewed at:  http://www.wipo.int/instats/statistics/country_profile/countries/ch.html . 
160 Viewed at:  http://www.wipo.int/instats/statistics/country_profile/countries/li.html . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  the Convention on the Protection of New Plant Varieties (UPOV Convention) was notified in 
February 2009.  
3.159.  The information provided by Liechtenst ein in the course of the TPR meeting of 2004 
remains valid.161  
3.3.6.4  Trade marks 
3.160.  There have been no major changes in the area of trademarks since 2008. Changes of a 
procedural nature include changes in the Federal Code of Civil Procedure162, and changes 
stemming from the adoption of the new Law on Patent Attorneys (requirement for a notification 
address in Switzerland in order to participate in an administrative procedure) (see section 3.3.6.2). 
3.161.  International exhaustion for trademarks applies in Switzerland163 and in Liechtenstein.164 
3.3.6.5  Geographical indications 
3.162.  The information provided in the 2008 TPR report on the two-pronged system of protection 
of geographical indications in Switzerland remains valid: the protection of geographical indications under the Trademark Law for all products and serv ices, which does not require registration, and 
the protection of geographical indications for wines and spirits, agricultural products and foodstuffs 
under several laws and ordinances. The geographical indication of "Swiss Made" for watches, as provided in the Trademark Law, is currently regu lated by a special ordinance on the use of the 
designation "Swiss" for watches.
165 
3.163.  An amendment to the Trademark Law and the Federal Law on the Protection of Swiss 
Armorial Bearings and Other Public Signs (Swissness Bill) is currently being examined in the Parliament. The purpose of the bill is to lay down the foundation for a "sustainable preservation of 
the added value" – i.e. marketing power - of th e term "Swiss" and the Swiss cross for trade of 
goods and services. The bill proposes that the pr otection of the term "Swiss" and of the Swiss 
cross (white cross on a red background) be strengthen ed at a national level as well as with a view 
to law enforcement abroad. The bill proposes a number of criteria for a product or service to be 
eligible for protection.  
3.164.  Several free-trade agreements with individual countries and group of countries contain 
provisions on geographical indications. Two bila teral agreements concluded by Switzerland contain 
provisions on the protection of geographical in dications with lists of names. The scope of the 
free-trade and economic partnership agreement with Japan is wider, i.e. covers other IPRs, whilst the bilateral agreement with Russia covers exclusively geographical indications. 
3.165.  In May 2011, Switzerland and Liechtenstein signed agreements with the EU on the 
protection of designations of origin and geographical indications for agricultural products and foodstuffs. For Switzerland, the agreement was co ncluded under the umbrella of the Treaty of 
21 June 1999 between Switzerland and the Euro pean Communities on trade of agricultural 
products. The agreement entered into force for both Switzerland and Liechtenstein on 1 December 2011 as Annex 12 of the treaty.
166 
                                               
 161 "At present, plant varieties righ ts granted abroad would be recogn ized in Liechtenstein due to the 
TRIPS obligation to protect plant varieties. No case of alleged infringement has been re ported so far. It is not 
yet possible to obtain protection for a plant variety by a national procedure. Protection of plant varieties is virtually irrelevant in Liechtenstein since there are no economic activities in this regard." 
(WT/TPR/M/141/Add.1, page 108).
 
162 Viewed at: http://www.admin.ch/ch/f/as/2010/1739.pdf . 
163 Federal (Supreme) Court's decision on Chanel  S.A. vs. EPA AG, BGE 122 III 469. The prevalent 
regime is international exhaustion, except in the event that there is any risk for the consumer to be misled. 
164 See Article 13(6) of Liechtenstein Trademark Law (LL 232.11): international exhaustion, except in 
the event that there is any risk for the consumer to be misled. 
 165 RS 232.119. 
 166 RS 0.916.026.81. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.3.6.6  Industrial designs 
3.166.  No major changes were made in the area of designs during the review period. Changes of 
procedural nature include changes in the Federal Code of Civil Procedure167, and changes due to 
the adoption of the new Law on Patent Attorney s (requirement for a notification address in 
Switzerland in order to participate in an administrative procedure). 
3.167.  There is no judicial precedent on the Sw iss regime of exhaustion of design rights.  
3.168.  Liechtenstein has its own law on industrial designs, very similar to the Swiss Federal Law. 
The Design Act stipulates the principle of international exhaustion of rights.168 
3.3.6.7  Copyright and related rights  3.169.  Changes made to the Copyright Law during the review period are of a procedural nature, 
e.g. changes to the Federal Code of Civil Procedure.
169 The Swiss Federal Tribunal upholds the 
principle of international exhaustion and author izes parallel imports of products covered by 
copyright. However, the 2003 revision regulates imports of video cassettes or DVDs previously marketed in a third country, which require an authorization from the author or their legal 
successor to be distributed in Switzerland. Au dio-visual works in Switzerland are exploited 
according to the "cascade principle" during the first stage of exploitation, i.e. the work is 
first featured in cinemas, then on vi deo or DVD, and finally on television.
170  
3.170.  Switzerland has signed the WIPO Beijing Treaty on Audio-visual Works of 24 June 2012. 
3.171.  Issues linked to Internet and new technologi es affecting copyright are of a high priority in 
Switzerland. Various motions have been debated and rejected by the Federal Council. It has been suggested to make full use of the legal panoply of measures available, including actions against 
Internet access providers and operators of platform s and file sharing ("peer-to-peer"), and further 
explore other possibilities. Two parliamentary motions have been retained by the Federal Council: the Postulat Recordon 12.3326
171 for copyright protection that is equitable and compatible with 
Internet users' freedom, and the Postulat Glättli 12.3173172 for fair compensation of artists while 
respecting the private sphere of Internet users.173 In response to these po stulates and following up 
its response to the Postulat Savary, the Federa l Department of Justice and Police established a 
special "Working Group for the Optimization of Collective Management of Copyrights and 
Neighbouring Rights" on 8 August 2012; the time line is the end of 2013.174 The USTR 2012 
Special 301 Report cited a number of countries, including Switzerland, under the general heading of "Piracy over the Internet and Digital Piracy" – and not on the watch list – and stated that the 
United States will seek "to work with them to strengthen legal regimes and enhance 
enforcement".
175  
3.172.  Copyright protection in Liechtenstein is guaranteed by the Law of 19 May 1999 on 
Copyright and Neighbouring Rights. Information in the 2008 TPR report of Switzerland and 
Liechtenstein, including on resale rights introduced in accordance with the EU acquis 
communautaire , remains relevant. International exhaustion of rights applies. 
                                               
167 Viewed at: http://www.admin.ch/ch/f/as/2010/1739.pdf .  
168 WTO (2005), TPR of Switzerland and Liechtenstein, WT/TPR/S/141. 
169 Viewed at: http://www.admin.ch/ch/f/as/2010/1739.pdf . 
170 Swiss Federal Institute of Intellectual Property online information, "Copyright". Viewed at: 
http://www.ige.ch/e/jurinfo/j103.shtm . 
171 Viewed at: http://www.parlament.ch/d/suche/se iten/geschaefte.aspx?gesch_id=20123326 . 
172 Viewed at: http://www.parlament.ch/f/suche/pages/geschaefte.aspx?gesch_id=20123173 . 
173 Viewed at: http://www.parlament.ch/f/suche/pag es/geschaefte.as px?gesch_id=20103263 ; and 
http://www.parlament.ch/f/suche/pages/geschaefte.aspx?gesch_id=20123326 . 
 174 Viewed at: http://www.ejpd.admin.ch/content/ejpd/fr/home/dokumentation/mi/2012/2012-08-
09.html . 
175 Viewed at: http://www.ustr.gov/sites/default/files/2012%20Special%20301%20Report.pdf . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  3.3.6.8  Layout-designs (topograph ies) of integrated circuits  
3.173.  The Swiss Topographies Law and Topographies Ordinance, as revised in 2006 and 2007, 
govern the protection of topographies of integrated circuits.176 Liechtenstein has its own 
legislation. 
3.3.6.9  Undisclosed information 
3.174.  Protection of confidential information co ntained in applications for protection and IP 
registers is provided for in particular in the resp ective IP laws. Moreover, protection against unfair 
competition practices as spelt out in footnote 10 of the TRIPS Agreement has been provided for by 
law since 1988 in Switzerland. 
3.175.  Article 14(3) of the Law on Therapeutic Products, which prohibited the importation of an 
original product authorized pursuant to a simplified procedure of market authorization as long as 
the product is patented, was abrogated by the Parliament on 19 December 2008 (see 
section 3.3.6.2). The ground for the abrogation was to "dissociate public tasks from the enforcement of patent rights by private parties".
177  
3.3.6.10  Enforcement  
3.176.  As indicated in the 2008 TPR report and by the Swiss authorities, the laws on copyright, 
topographies of integrated circuits, trademarks, and designs, were amended to improve 
enforcement of IP rights, including border meas ures against counterfeiting and piracy. Trade in 
counterfeit and illegally copied goods is of great concern to Swiss producers and to the Swiss authorities. The Swiss FIIP and the Internationa l Chamber of Commerce, Switzerland, created the 
Swiss Anti-Counterfeiting and Piracy Platform, STOP PIRACY, according to which, "the Swiss 
economy suffers losses of SwF 2 billion annually due to counterfeiting and piracy. Worldwide 
damages are estimated to be several hundred billion Swiss francs annually. However, more important than the numbers is that counterfeit ing and pirated copies undermine the incentive 
system behind intellectual property and inhibit investment in innovation – even in the countries 
that are the source of the counterfeiting."
178 STOP PIRACY has also undertaken campaigns to raise 
Swiss consumer awareness regarding counterfeit and pirated goods, including a relatively new 
feature of the amendments to the IP laws in 2008, namely sanctions against the importation of 
such goods for private use.179 Switzerland participated in the negotiations on the 
Anti-Counterfeiting Trade Agreement (ACTA) . It has not yet signed the agreement. 
3.177.  A 2011 report by the Federal Customs Administration (FCA)180 shows that the number of 
interventions increased from 1,622 in 2008 (value  of seized consignments: SwF 14 million) to 
3,180 (value of seized consignments: SwF 8.4 million),  an increase of 96%. These figures relate to 
interventions under the IP laws, not under the Law on Therapeutic Products (pharmaceutical 
products) or the Law on Precious Metals Control (watches and jewellery).  
3.178.  On the issue of measures regarding transit goods, the Swiss FIIP has provided 
clarifications on the interpretation of the relevant Patent Law provisions: "The transit of 
patent-infringing goods can only be prohibited when  the patent owner can also prohibit the import 
into the country of destination. Assistance measures regarding goods in transit can only be provided by customs when direct evidence is pres ent concerning infringement of a patent in both 
Switzerland and in the country of destination."
181  
 
 
                                               
176 RS 231.2 and RS 231.21.  
177 Former Article 14, paragraph 3, Law on Therapeutic Products (RS 812.21).  
178 Viewed at: http://www.stop-piracy .ch/en/candp/cap1.shtm .  
179 De minimis  imports are dealt with in Article 60 of the TRIPS Agreement. 
180 IGE/IPI online information, "Counterfeiting and Piracy: 2011 Intellectual Property Law Statistics from 
the FCA" . Viewed at: https://www.ige.ch/fileadmin/user_uploa d/Juristische_Infos/e/fp_stat_2011_en.pdf . 
181 Viewed at: https://www.ipi.ch/fileadmin/ user_upload/Juristische_Infos/e/j10030e.pdf.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.  Swiss agriculture contributed about 1% to GDP and 3.8% to employment in 2011.
1 Most of 
the 58,000 farms are small family enterprises (ave raging 18 ha) with litt le hired labour. Only 
about 100 farms have more than 100 hectares. About half of the Swiss farms are located in hilly or 
mountainous regions. Within the framework of the direct payment scheme (averaging about SwF 50,000 per farm), farmers receive compensation for working on sloping terrain or delivering 
public goods, such as food security.
2 The main basic agricultural products are milk, bovine animals, 
and pigs. Switzerland is traditionally a net-importer of agricultural and food products (Chart 1.1). While imports are spread over all categories of agricultural products, exports are predominantly processed food products. On behalf of the Government, private organizations (Réservesuisse, 
Agricura) are managing compulsory reserve stock schemes for a range of fo od and feedstuffs, as 
well as nitrogen fertilizer (Chapter 3.1.7).
3 
4.2.  In Liechtenstein, agriculture's contribution to GDP is marginal. About two thirds of the 
territory of Liechtenstein are hilly and mountainous areas. There were 118 farms in 2010 with an 
average size of 31 hectares. Milk is the main basic agricultural product, followed by meat, grains, and vegetables. Switzerland acts on behalf of Liechtenstein on Customs Union matters, such as 
imports and exports of agricultural products. Liechtenstein has its own direct payment scheme. 
Liechtenstein farmers also benefit from some Swiss market support measures, such as the subsidy for milk processed into cheese, in return for an annual financial contribution by Liechtenstein. Some Liechtenstein companies participate in the Swiss auctions of the meat tariff quotas and the 
export subsidy scheme. 
4.1.1  Border measures 4.3.  The average applied MFN tariff on agricultural products (WTO definition) is estimated at 
31.9% in 2012 (Table 3.2). Meat, dairy products, and vegetables are the most tariff-protected 
products. High or prohibitive 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 (Table 3.3). 
Since its last TPR in 2008, Switzerland has carried out a few tariff reduction initiatives in the 
context of the Agricultural Policy 2011 or as a result of bilateral agreements with the EU 
(Table 4.1). 
Table 4.1 Agricultural tariff reduction initiatives, 2008-12  
Product Description Reference 
Feed grains, 
oilseeds, and 
feedstuff mixtures The threshold price syst em applies. Import th reshold prices were 
reduced for grains (to SwF 360/t) and oilseeds (to SwF 500/t), aimed 
to reduce feed costs of livestock producers.  
Protection of the domestic feed in dustry through tariff escalation was 
phased-out. As of 1 July 2011, industrial protection elements 
incorporated in the tariffs for f eedstuff mixtures were removed.  RS 916.01 
 
 
RS 916.112.231 
Bread cereals and 
flour The new reference price system applie s. On 1 July 2009, the reference 
price for bread cereals was reduced from SwF 600 to SwF 560/t. As of 
July 2008, the tariff for wheat flour is linked to the tariff on bread 
cereals (wheat), resulting in a reduction from SwF 1,430/t to a 
maximum of SwF 507/t since 1 July 2010. RS 916.01 
Cut flowers  MFN out-of-quota tariffs for cu t flowers are to be re duced in ten stages 
to the level of the MFN in-quota tariffs (2007-17). By 2017, cut 
flowers will effectively be subject to a tariff-only regime.  RS 916.01 
Sugar MFN sugar tariffs were ad justed to align internal prices in Switzerland 
with those of the EU. Sugar tariff as of October 2012 (HS 1701.9999): 
SwF 170/t (up from zero since 2010) RS 916.01 
                                               
1 The total labour force in agriculture was 164,000 in 2011. 
2 Based on Article 104 of the Swiss Constitution. 
3 Based on Article 102 of the Swiss Constitution. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Product Description Reference 
Vegetables For 15 fresh vegetables, the im port regime was partially liberalized, 
allowing imports throughout the year  at the bound-in quota tariffs (red 
lollo, other lollo, extra fine string  beans, other bean s, winter savoy 
cabbage, treviso chicory, green chicory, cut-and-come-again chicory, salsify, soup celeriac, sugar peas  (mange-tout), green asparagus, 
cardoons, teltow turnip s, courgette blossoms) RS 916.121.100 
Cheese 
 Free trade in cheese with the EU since June 2007.  
Source: WTO Secretariat, based on informat ion provided by the Swiss authorities. 
4.4.  Switzerland has WTO tariff-quota commitments for 28 product categories. In practice, 
Switzerland implements 58 tariff quotas, since numerous WTO tariff quotas are divided into 
sub-quotas.4 Some tariff quotas are sub-divided up to th ree times. The bilateral preferential tariff 
quotas (about 80) are generally aggregated with WTO tariff quotas.5 Imports originating from the 
free zones of Haute-Savoie and Pays de Gex are not attributed to a tariff quota.6 The predominant 
allocation procedures are first-come-first-served, auctioning , past imports, and prise en charge  
under which the allocation of tariff quota is contingent upon local purchases (Table A4.1). Changes 
to the administration methods were notified regularly7, and the complex tariff quota management 
system (about 300 pages) can also be consulted online.8 For a number of WTO tariff quotas, 
Switzerland provides autonomously "unlimited" access at the bound in-quota tariff, e.g. for casein 
or durum wheat. When domestic supply is considered insufficient, the tariff quotas may also be increased autonomously, resulting in fill ratios greater than 100% (Table A4.2). 
4.1.2  Domestic support 
4.5.  Switzerland's key domestic support instruments are: (i) subsidies and other government 
expenditures for market support measures; and (ii) direct payments. In its notifications to the WTO Committee on Agriculture, Switzerland has reported price support through applied 
administered prices for bovine meat, pig meat, milk, and 16 other basic agricultural products.
9 
However, according to the authorities, Switzerland does not apply administered prices; "observed" prices are used to calculate the support. 
4.6.  Switzerland's current policy framework, the Agricultural Policy 2011 (AP 2011), runs from 
2008 to 2013. The main thrust of the AP 2011 is a further shift from (product-specific) market support to direct payments. The objective is to cut budgetary expenditures for market support by 
more than half, and to phase-out agricultural export subsidies on basic agricultural products 
(Table 4.2). Direct payments increased significantly as from 2009, and expenditures for market support measures were reduced, albeit by less than 50%. 
4.7.  The AP 2011 leaves the basic structure of the Swiss direct payment scheme unchanged 
(Table 4.3). About 80% of expenditures are "general" direct payments (area payments, "payments 
for roughage consuming animals" and "farming under difficult production conditions"); the remainder are payments to achieve environmenta l and animal welfare objectives. The general 
eligibility criteria for direct payments include a set of ecological performance standards (proof of 
ecological performance), including a 7% set aside. The maximum direct payment is SwF 70,000 per annual work unit. Direct payments (DPs) are degressive by farm size, animal numbers, 
income, and assets.
10 When the DP scheme was introduced in 1992, the intent was to decouple 
the support from production, but this objective has not been expressly reflected in the legal framework.
11 By and large, the direct payments continue to be linked to land and/or livestock 
                                               
4 The three tariff quotas for wine were merged.  
5 The only exception is a preferential tariff quota for potatoes (HS 0701.9010) granted to Egypt, which 
is opened even if the MFN tariff quota is filled.  
6 Règlement du 22 décembre 1933 concernant les importations en Suisse des produits des zones 
franches  (RS 0.631.256.934.953). 
7 WTO documents G/AG/CHE/13/ Add.10 to Add. 14.   
8 Federal Department of Agricultur e online information. Viewed at: 
http://www.blw.admin.ch/themen/01423/index.html?lang=fr . 
9 WTO documents G/AG/N/CHE/47, 49, and 55/Rev.1. 
10 Direct payments are reduced to zero from 130 ha, 190 livestock units, or assets of SwF 1 million. 
11 Law on Agriculture (RS 910.1) and Direct Payments Ordinance (RS 910.13) WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  numbers. Some of direct payments are considered to have production-stimulating effects and call 
for reform (Box 4.1).  
Table 4.2 Market support an d direct payments, 2007-11 
(SwF million) 
Measure 2007 2008 2009 2010 2011 
Market support expendituresa  493.2 481.4 434.0 372.2 385.4 
Dairy sector, of which: 366.0 349.7 316.7 291.9 295.3 
Subsidy for milk processed into 
cheese  255.1 261.0 247.8 256.3 259.5 
Livestock sector 18.2 18.3 18.3 10.2 12.4 
Arable sector, of which:  109.0 113.4 99.0 70.1 77.7 
Crop premiums (RS 910.17) 46.3 47.7 69.6 65.9 68.8 
Direct payments  2,575.0 2,505.0 2,741.7 2,789.2 2,799.2 
a Including export subsidies. 
Source: Federal Office for Agriculture, Rapport Agricole , various issues. 
4.8.  Agricultural producers have access to interest-free investment credit schemes implemented 
by the cantons. Credits are available as starti ng aid for new buildings, reconstruction or 
improvement of agricultural residential buildings , farm and alpine buildings. The average payback 
period is 13.1 years. Collective measures (for groups of farmers) mainly support soil improvement 
and building measures (alpine buildings, collective stables, buildings and equipment for processing 
and storage of agricultural products).12 Interest-rate subsidies are to be cut from SwF 47 million 
p.a.13 to SwF 17 million p.a. under AP 2014-17. The revenue of mineral oil taxes forgone due to 
reimbursements to the agriculture sector amounts to SwF 65 million each year.14 
Table 4.3 Switzerland's dire ct payment system, 2009-11 
Measure/ 
objective Eligibility criteria/payment basis Payment 
ratea Notified in 
terms of Expenditures ('000 SwF) 
2009 2010 2011 
General direct payments    2,190.2 2,201.1 2,191.1 
Area payments 
To compensate 
public interest 
contributions (e.g. 
protection and 
care of the 
cultivated 
landscape, 
securing food 
production)  Virtually the entire agricultural area 
(about 1 million hectares), except 
summer pasturing area (0.5 million 
ha), is eligible. The reference period 
is the current year. 
Additional payments for the crop 
area (open arable land) and 
permanent crops Per hectare:  
SwF 1,020  
 
 
 
SwF 640 Green Box, 
decoupled 
income 
support 1,225.5 1,221.2 1,217.6 
Payments for roughage-consuming animals 
To sustain the 
competitiveness of 
milk and meat production based on roughage, and 
to ensure land 
caretaking through pasture use The reference period for bovine 
animals/dairy cows is the number of 
animals as of 1 May of the preceding year to 30 April of the current year. Rates are based on standardized 
livestock units per hectare 
(differentiated by altitude, i.e. carrying capacity of the land).  
Bovine animals, horses, milk 
goats/sheep 
Dairy cows Other goats/sheep, deer, lamas, 
alpaka Per livestock 
unit: 
 
 
  
 
 
SwF 690  
 
SwF 450 
SwF 520 Green Box, 
decoupled 
income support 509.6 510.3 508.2 
                                               
12 Ordonnance sur les améliorations structurel les dans l’agriculture du 7 décembre 1998  (RS 913.1). 
13 WTO document G/AG/N/CHE/55/Rev.1, p. 4. 
14 Ordonnance sur les allégements fiscaux  et l'intérêt de retard pour l'impôt sur les huiles minérales  
(RS 641.612). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Measure/ 
objective Eligibility criteria/payment basis Payment 
ratea Notified in 
terms of Expenditures ('000 SwF) 
2009 2010 2011 
Livestock payments under difficult production conditions 
To compensate for 
difficult production 
conditions in 
pre-alpine hill 
zones and 
mountainous 
zones for livestock 
fed with roughage Rates are based on standardized 
livestock units per hectare, see 
above 
Payment rates are differentiated 
between hilly and mountainous 
regions Per livestock 
unit: 
 
SwF 300 
(hill zone) 
up to 
SwF 1,230 
(mountain 
region IV) Green Box, 
regional 
assistance 
programmes 352.5 354.3 352.4 
General steep slope payments 
To compensate for 
farming on steep 
slopes Rates are based on inclination of 
terrain. Pastures, arable land, and 
permanent crops qualify 
 
18-35% 
>35% Per hectare: 
 
 
 
SwF 410 SwF 620  Green Box, 
regional 
assistance 
programmes 91.0 104.0 102.6 
Steep slope payments for wine-growers 
To compensate for 
wine cultivation on 
steep slopes Rates are based on inclination of 
terrain 
 
30-50% 
>50%  
terrasses Per hectare: 
 
 
SwF 1,500 
SwF 3,000 
SwF 5,000 Green Box, 
regional 
assistance 
programmes 11.6 11.3 11.3 
Ecological direct payments    566.1 598.0 618.0 
Ecological payments 
Incentives for 
voluntary 
environmental 
contributions 
beyond minimum 
environmental 
eligibility criteria 
for DPs Including extensive use of pastures 
and meadows; fallowing; hedges. 
Payment rates depend on the 
measure 
 
Pome and stone fruit trees (not in 
plantations) Per hectare: 
SwF 450-
2,800 
 
 
SwF 15 per 
tree Green Box, 
environmental 
programmes 123.0 128.7 133.5 
Payments under the 
Environmental 
Quality Ordinance (RS 910.14) Same as for ecological payments. 
Payment rates depend on the 
measure 
Co-financing: 80% federal; 20% 
cantonal and other sources. Implemented by the cantons Per hectare: 
SwF 300-
2,000; 
SwF 5-30 per tree  Green Box, 
environmental 
programmes 54.9 62.0 71.5 
Extensive cereal 
and rapeseed 
farming No use of hormonal growth 
regulators and pesticides Per hectare: 
SwF 400 Green Box, 
environmental 
programmes 29.0 29.3 29.0 
Organic farming  
Incentive 
payments to 
encourage organic farming methods Compliance with Bio-Ordinance 
(RS 910.18). About 11% of total 
agricultural area qualified in 2010 
Special crops (fruits, vegetables, 
viticulture, medicinal plants) 
Arable crops 
Other Per hectare: 
 
 
SwF 1,350 
 
SwF 950 
SwF 200 Green Box, 
environmental 
programmes 27.9 29.7 31.2 
Animal welfare (housing systems) 
Incentives 
payments for 
animal rearing 
practices that go 
beyond animal 
protection 
regulations Bovine animals, pigs, poultry, and 
rabbits Per livestock 
unit: 
SwF 90-280 Green Box, 
environmental 
programmes 59.9 61.7 639 
Animal welfare (outdoor) 
Incentive 
payments to 
encourage outdoor 
systems Bovine animals, pigs, poultry, and 
rabbits Per livestock 
unit: 
SwF 155-
280 Green Box, 
environmental 
programmes 163.1 163.9 165.0 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Measure/ 
objective Eligibility criteria/payment basis Payment 
ratea Notified in 
terms of Expenditures ('000 SwF) 
2009 2010 2011 
Summer pasturing 
Sustainable 
development of 
pastures Dairy cows, milk goats, and milk 
sheep (56-100 days of summer 
pasturing) 
 
Other sheep (100 days) 
 
Other roughage-consuming animals 
(100 days) Per livestock 
unit: 
SwF 330 
 
SwF 120-
330 
SwF 330 Green Box, 
environmental 
programmes 98.0 101.3 101.5 
Water protection 
and sustainable use 
of natural resources The Confederation compensates up 
to 80% of the costs for structural 
adjustment projects and 50% for farm management restrictions. Implemented by the cantons Not 
applicable .. 10.2 21.3 22.4 
Payment reductions 
due to sanctions    -14.7 -9.8 -10.9 
Total direct payments    2,741.7 2,789.2 2,799.2 
.. Not available. 
a Rate reductions apply: up to 40 ha (full ra te); 40-70 ha (-25%); 70-100 ha (-50%); 100-130 ha 
(-75%); over 130 ha (100% reduction); and up to 55 livestock units (full rate), 55-100 livestock units (-25%), 100-145 livestock units (-50%), 145-190 livestock units (-75%), over 190 livestock units (100% reduction). 
Source:  Ordonnance sur les paiements directs versés dans l'agriculture  (RS 910.13); and Summer pasturing 
ordinance (RS 910.133). 
4.9.  Liechtenstein's new law on agriculture, in force since 1 July 2009, consolidates the former 
legislative acts on agriculture without introducing fundamental changes.15 The policy objective is to 
increase the competitiveness of Liechtenstein's agriculture sector and maintain market conditions 
similar to those in Switzerland. The law also puts more emphasis on marketing and image-building with a view to better promoting agricultural good s made in Liechtenstein. New elements are the 
definition of professional requirements for recognition as farmer, and promotion of 
entrepreneurship. While Liechtenstein has its own direct payment system (last modified in 2010
16), 
most measures are similar to the Swiss measures (Table 4.4). 
Box 4.1 Swiss Agricultural Policy 2014-17  
The next stage of Switzerland's agricultural policy is scheduled to begin on 1 January 2014 (AP 2014-17). The 
Bill, which amends the Law on Agriculture and includes  a four-year budgetary framework, is currently pending 
before the Swiss Parliament. The main policy objectives are: food security (maintain self-sufficiency at the 
current level of around 60%); comp etitiveness; efficient and sustainable use of natural resources; and 
innovation and entrepreneurship in agriculture. At the core of the AP 2014-17 is a re-arrangement and fine-
tuning of the direct payment (DP) scheme, to improve the efficiency and effectiveness of the measures, and 
address conflicts with WTO Green Box criteria. Total DP ex penditures will be maintained at the current level of 
about SwF 2.8 billion per year. There will be some redist ribution of subsidies from livestock/dairy production to 
the arable sector. 
The revised DP scheme has seven categories, which are linke d to the achievement of specific policy objectives 
and the provision of public goods: payments for en suring food supplies (i.e. food-security payments); 
bio-diversity payments; farmland  payments; payments for landscape quality; payments for 
environment/animal-friendly producti on systems; resource-efficiency payments; and transitional payments. 
The system is complex. Each category has several measures, including payments . The budget for "payments 
for roughage-consuming animals", " livestock payments under difficult production conditions", and the 
"payments for the open arable land and permanent cr ops" will be moved to th e food-security category 
("payments for ensu ring food supplies", about SwF 1 billion per ye ar). To reduce the ince ntives on production, 
the payments for livestock holders will no longer be tied to the number of animals, and are to be based on 
acreage with a minimum stocking density (Table 4.3). The DP eligibility criteria are left substantially 
unchanged, with two exceptions foreseen by the Govern ment: elimination of the income/asset limits for DPs 
(exception for transitional payments) and of the gradua tion of large farms; and land in building zones will 
become ineligible.  
                                               
15 Law on Agriculture of 11 December 2008 (LR 910.0). 
16 Agricultural Income Supplements Ordinance of 23 March 2010 (LR 910.023). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Subsidies for individual commodities wi ll be maintained, albeit with some adjustments. Thus, the area-based 
crop premiums (Table 4.6) will be replaced by su bsidies aimed at ensuring an appropriate level of 
self-sufficiency in designated crops/products (proposed new Article 54 of the Law on Agriculture). The 
Government will have discretion to  determine eligible crops and the ra tes of support for these explicitly 
production-stimulating subsidies. In total, about SwF 440 million will be made available annually for these and 
other production subsidies, quality, marketing, an d promotion measures. Key ma rket support programmes, 
such as the subsidy for milk processed into cheese, remain largely unchanged. 
There are few structural reform initiatives to strengthen  the competitiveness of Swiss agriculture and to ensure 
that downstream industries remain internationally competitive. The AP 2014-17 prioritizes improvements in 
product quality, and additional financial support is prov ided to reduce farmers' costs through better terms and 
conditions for inve stment credits. 
Overall, the AP 2014-17 does not signal a change towards more market-orientation of Swiss agricultural policy. 
The high level of import protection wi ll be left virtually untouched. Despite modifications, most of the direct 
payments will continue to have a close li nk to production and livestock rearing. 
Source: WTO Secretariat based on the Federal Council Message concernant l'évolution future de la politique 
agricole dans les années 2014 à 2017 (Politique agricole  2014–2017). Viewed at: 
http://www.blw.admin.ch/themen/00005/00044/01178/index.html?lang=fr . 
Table 4.4 Liechtenstein's direct payments, 2010-11  
(SwF million) 
 2010 2011 
Total direct payments 11.8 11.6 
Income supplements (farm income aids, payments for selected crops, 
payments for roughage-consuming an imals, payments for pasturing) 6.2 6.0 
Environmental and animal welfare payments 5.1 5.1 
Payments for countryside  stewardship in hilly and mountainous regions 0.5 0.5 
Source: Liechtenstein authorities. 
4.1.3  Export subsidies 
4.10.  Switzerland has export-subsidy reductio n commitments with respect to five product 
categories (dairy products; breeding cattle and horses; fruit; potatoes; processed products). Export subsidies with respect to the first four product groups were eliminated in 2009. Exports of cheese continue to receive indirect support through the subsidy for milk processed into cheese 
(section 4.1.5.1). Switzerland's last export subsidy notification covers 2009 and 2010.
17  
4.11.  Switzerland continues to apply a price compensation scheme, as described in previous TPRs, 
to compensate the domestic food manufacturing industry for the price handicap of using 
tariff-protected locally produced agricultural raw materials ( loi chocolatière ). The measures with 
respect to industrial/agricultural tariff protection of processed products, and export subsidies were revised with effect from 1 February 2012.
18 
4.12.  Export refunds are provided to compensa te price gaps between the domestic market and 
the world market.19 Eligible for refunds are certain milk and dairy products, flour and other milled 
products that are incorporated/processed into f o o d  p r o d u c t s  u n d e r  H S  c h a p t e r s  1 5 - 2 2 .  E x p o r t  
refunds were suspended on 1 February 2012 for sugar/molasses and egg products, while 
maintaining the possibility to resume them in the future. For skimmed milk incorporated into 
processed products, export refunds were abolished on 1 December 2012. Export refunds are subject to an annual budget (SwF 70 million in 2012). They are granted on the basis of the net 
content of the beneficiary raw materials incorporated  in the final products. Export refunds for milk 
and milk products incorporated into processed ag ricultural products are being granted depending 
on the fat and protein content, as well as the ratio between milk fat and milk protein.
20 
                                               
17 WTO document G/AG/N/CHE/59, 20 November 2012. 
18 Ordonnance réglant les contributions à l’expo rtation de produits agricoles transformés  
(RS 632.111.723); Ordonnance concernant les éléments de protection industrielle et les éléments mobiles 
applicables à l’importation de produits agricoles transformés  (RS 632.111.722). 
19 EU markets in the case of exports to the EU. 
20 Ordonnance du DFF du 9 janvier 2012 sur les taux des contributions à l’exportation de produits 
agricoles de base  (RS 632.111.723.1). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Information per tariff line of export subsidies granted is not available. Within the framework of the 
Customs Union, Liechtenstein companies are eligible for export refunds to third countries under the Swiss price compensation scheme. 
4.1.4  Evolution of support 
4.13.  According to OECD estimates, Switzerl and's support to agricultural producers (PSE) 
decreased from an annual average of SwF 7.2 billion in 1995-97 to SwF 5.7 billion in 2009-11.
21 
The decline was mainly due to higher world market prices for agricultural commodities. The 
percentage PSE (i.e. the support as a share of gross farm revenues) decreased from 67% to 56% 
in the same period, meaning that over half of farmers' revenues in 2009-11 were due to support policies (mainly tariff protection and direct payments).
22 Despite the decline, Switzerland's support 
(a PSE of 56%) was almost three times the OECD average (a PSE of 20%) (Chart 4.1). Swiss 
producer prices were on average 57% higher than  world market prices in 2009-11. Switzerland is 
in line with the OECD trend in making reforms towards less trade-and-production-distorting measures. The share of market price support that is potentially most trade-distorting was reduced 
from 66.4% to 45.4% between 1997-99 and 2009- 11. Market price support, as defined by the 
OECD, comprises all policy measures that raise the domestic price relative to the border price of the commodity concerned, including border measur es (tariffs, tariff quotas, and other import 
restrictions), administered prices, and export subsidies.  
Chart 4.1 Level and composition of support to agricultural producers 
0102030405060708090100
0 1 02 03 04 05 06 07 08 09 0 1 0 0Switzerland
OECD
2009-111997-99Share of support based on 
commodity output and non-
constrained variable input use in 
the PSE
PSEPer cent
1986-88
 
Note: The level of support is presented by the percenta ge 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 (2012), Agricultural Policy Mo nitoring and Evaluation , PSE/CSE database, Paris. 
4.14.  The arrows in Chart 4.1 suggest that Switzerland's agricultural policy has been heading 
generally in the right direction, but the process of  market-oriented reforms needs to be faster in 
order to catch up with its OECD peers.23 The level of support to Swiss agricultural producers 
(SwF 5.7 billion) also compares unfavourably with agriculture's value-added or contribution to GDP 
(3.9 billion in 2010), which gives rise to questions regarding the efficiency (costs versus benefits) of Swiss agricultural policy.  
                                               
21 OECD (2012). 
22 PSE: total annual monetary transfers to farmers in dividually (not agriculture generally) from market 
price support, mainly through border me asures but also food aid, export su bsidies (calculated by the price gap 
between domestic and border price), payments to farm ers, and tax/fee reductions (revenue forgone). The 
percentage PSE is a useful indicator for co mparisons over time and among countries, inter alia , because it 
eliminates the effect of inflation.  
23 All except Norway. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.1.5  Developments in sele cted agricultural markets 
4.1.5.1  Milk and dairy products 4.15.  There have been few changes regarding market access for dairy products. Tariffs on most 
dairy products remain high, averaging an estimated 101.5% and reaching approximately 1,295% 
(Table 3.3). Trade in cheese between Switzerland and the EU has been fully liberalized since June 
2007; only a certificate of origin is required. Switzerland's aggregate tariff-quota commitment for dairy products (527,000 tonne milk equivalent) is divided into six sub-quotas with very small 
allocations for butter (100 tonnes) and whole milk powder (300 tonnes), which are in surplus. The 
butter and milk powder quotas are auctioned and no longer subject to prise en charge  as an 
allocation method (Table A4.1). According to the authorities, the change aims to increase the competition between importers because under the prise en charge system only a few importers 
qualified for allocations. 
4.16.  Almost half of Swiss farms produce milk for sale. The key internal support instrument is a 
subsidy of SwF 0.15/kg for milk processed into cheese (Table 4.2).
24 Since cheese production 
accounts for over 40% of milk deliveries, the subsidy provides support to the broader domestic 
raw milk market. According to the authorities, given that milk production is traditionally the only income possibility to farmers in mountainous regions, the subsidy for cheese production has 
important socio-economic effects and helps to achieve the aim of a decentralized population. 
Exports of cheese also benefit from this subsidy, although the subsidy is not contingent on exports. WTO Members have questioned the Green Box compatibility of the subsidy for milk processed into cheese.
25 The subsidy for "feeding without silage" is aimed at assisting the 
production of non-pasteurized specialty cheeses (SwF 0.03/kg milk, SwF 33 million in 2011). In 
addition, dairy farmers benefit from direct payments (Table 4.3). The subsidies for dairy cows (payments for roughage-consuming animals) were increased in 2009 from SwF 200 to SwF 450 
per livestock unit, raising the relative competitiveness of milk production.  
4.17.  Following a three-year transition period, the compulsory milk quota system was abolished 
on 1 May 2009.
26 Milk production has increased since 2008, aggravating surplus problems with 
butter and skimmed-milk powder. According to the Law on Agriculture (Article 8), industry and 
producer organizations are responsible for the ma rketing of their products. IP LAIT (the Swiss 
dairy inter-branch organization) has been implementing two measures for its members:  
a. Milk pricing policy ("recommended" prices) based on market segmentation: (i) the 
"A segment" comprises domestic sales of milk products (SwF 0.66/kg milk in 2012); 
(ii) the "B segment" includes world mark et exports of skimmed-milk powder (milk 
protein) and domestic sales of butter (milk fat) (SwF 0.58/kg milk in November 2012); 
(iii) the "unsupported C segment" comprise s world market exports of butter and SMP 
(SwF 0.33/kg in November 2012). The milk buyers have committed to buy at least 60% of their raw milk in the A-segment.  
b. Compulsory levy: on 31 August 2011, the Fede ral Council approved a request by IP LAIT 
to implement a compulsory levy of SwF 0.01/kg on milk deliveries by non-members of IP LAIT for market relief measures in the milk-fat market (effective until 30 April 2013). The rationale is to prevent free-riders from undermining the IP LAIT initiative to stabilize 
the market; non-members of IP LAIT represent about 5% of processed milk in 
Switzerland. Funds from members and non-me mbers of IP LAIT, estimated at about SwF 
34 million per year, are used to support sa les of surplus butter and SMP to the world 
market (supported C segment).
27 In regard to the mandatory milk levy, WTO Members 
have questioned Switzerland's compliance with its export subsidy commitments. In Switzerland's view, the scheme does not constitute an export subsidy under 
Article 9.1(c) of the Agreement on Agriculture, since IP LAIT is a private association and 
                                               
24 Ordinance on supplementary payments and aid in relation to milk (RS 916.350.2). 
25 "Allowance for milk processed into cheese", notified  in terms of a regional assistance programme, see 
WTO document G/AG/CHE/55/Rev.1, 23 July 2012. Switzerlan d responded that the support is also included in 
the price support for milk.  
26 Ordonnance sur l’exemption du contingentement laitier  (RS 916.350.4). 
27 IP LAIT online information. Viewed at: http://www.ip-lait.ch/site/fr.html . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  the State neither provides nor collects any funds nor prescribes how the funds are to be 
used.28  
4.18.  In Liechtenstein, milk production (14,800 tonnes in 2011) is subject to farm-level 
production quotas.29 To enable Liechtenstein to compete on the common milk market with 
Switzerland, the Government is implementing  the strategy "forward integration of the 
Liechtenstein dairy industry", supported with SwF 4.5 million during 2009-12, with the aim of 
domestic processing of a maximum share of raw milk into high-added value products.  
4.1.5.2  Meat and livestock 
4.19.  Over 80% of Swiss farms rear livestock. Li vestock producers benefit from by far the highest 
level of tariff protection; meat tariffs average an estimated 177.4% (Table 3.3). As a result, Switzerland is about 80% self-sufficient in me at (pig meat, 95%; bovine meat, 84%; poultry 
meat, 51%). Switzerland's WTO tariff-quota commitments for "red meat" (22,500 t) and "white 
meat" (54,500 t) are administered through 12 sub-quotas for different categories of meat and meat products. By 2007, the change towards auctioning of the sub-quotas had been fully phased 
in.
30 A reversal, towards the discriminatory prise en charge  system for 40% of the red meat quota, 
is currently under consideration by the Swiss Parliament.31 The fill rates of the WTO tariff quotas 
exceeded 100% in 2010-11 (Table A4.2).  
4.20.  Expenditures for market support declined to SwF 10.3 million in 2010 (Table 4.2), as export 
subsidies for breeding cattle were eliminated during 2009. Subsidies for temporary intervention purchases (implemented by Proviande on the calf  markets), and discounted sales to stabilize the 
domestic livestock markets are limited at SwF 4 million per year. The Swiss veterinary 
requirements have been harmonized with the EU to facilitate trade in live animals (Chapter 3.3.3).  
4.21.  Switzerland provides five types of livestock -related direct payments (Table 4.3). The main 
schemes are "payments for roughage-consuming animals" and "livestock payments under difficult 
production conditions", which were increased in 2009 to cushion the expected income losses 
following the phase-out of the milk quota sy stem. Payments under the two schemes may be 
cumulative. The subsidies were notified in terms of decoupled income support, prompting 
questions from WTO Members regarding consistency with Green Box criteria (Box 4.1). 
4.1.5.3  Grains and oilseeds 4.22.  Switzerland maintains a complex scheme of variable tariffs to protect its farmers of feed 
grains and oilseeds (Table 4.5). The basic struct ure of the scheme remains unchanged. Tariffs are 
adjusted periodically so that the duty-inclusive prices
32 are raised to the level of minimum import 
prices (threshold prices or indicative import va lues). On the basis of the threshold prices for 
11 groups of products, the Federal Department of Economic Affairs determines indicative import 
values for "similar" products. The statutory threshold prices are reviewed from time to time 
(Table 4.1). The variable tariffs may not exceed the Uruguay Round bindings. There are no tariff quotas for the products covered the scheme. Since 2008, there is a legal requirement that tariffs 
for feedstuffs must not include elements of industrial protection.
33 For compound feeds, standard 
formulas are used to calculate tariffs to ensure that there is no tariff escalation. 
4.23.  Since its last TPR, Switzerland has introd uced a new variable tariff regime for cereals of 
bread-making quality (e.g. wheat). This complements the tariff quota for bread cereals.34 The 
reference price system covers the same tariff lines as the bread-wheat tariff quota. The new 
system is similar to the feedstuffs  regime (Table 4.5). Tariffs are reviewed on a quarterly basis and 
                                               
28 WTO document G/AG/W/92/Rev.1, 25 May 2012. 
29 Milk Quota Ordinance of 7 July 2009 (LR 910.012). 
30 Except 10% of the "red meat" tariff quota (allocation by prise en charge).  See WTO document 
G/AG/N/CHE/13/Add.14, 11 April 2012. The auction proceeds totalled SwF 181 million in 2009 (averaging SwF 2.3/kg of meat) 
31 Viewed at: http://www.news.admin.ch/message /index.html?lang=fr&msg-id=35451 . 
32 Including guarantee fund contributions. 
33 Law on Agriculture (RS 910.1), Article 20, paragraph 7. 
34 The reference price system covers the same tariff lines as the bread wheat tariff quota: 
HS 1001.9921, 1002.9021, 1007.9021, 1008.1021, 1008.2921, 1008.4021, 1008.5021, 1008.6031 and 1008.9023.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  adjusted, as appropriate (increased or decreased), to stabilize the duty-inclusive price for bread 
cereals around a minimum import price (reference price). The reference price is reviewed periodically. Tariffs are based on the world market price for cereals, i.e. the c.i.f. price as determined by the Federal Office for Agriculture. The reference price was reduced from 
SwF 600/tonne to SwF 560/tonne in July 2009 (Table 4.1). Since 2010, the variable tariffs amount 
to 100% (up from 60%) of the diff erence between the world market and the reference price. This 
change provides better protection from world market price volatility but also makes producers less 
responsive to world market trends.  
Table 4.5 Variable tariff mechanisms fo r feedgrains, oilseeds, and bread cereals  
Feed grains and oilseeds Bread cereals 
Imposition of 100% of the difference between the 
"estimated" c.i.f. price and threshold price/indicative 
import value  
2012 threshold prices:  
Group 3 - barley (feed): SwF 360/tonne Group 4 - soybeans (feed): SwF 500/tonne 
Tolerance band: threshold price +/- SwF 30/tonne 
Maximum tariff: UR binding for the product concerned  
Tariff adjustment interval s: generally 1 January, 
1 April, 1 July, 1 October  
Product coverage: feed grai ns (e.g. barley), other 
feedstuffs, oilseeds/cakes, seeds  Imposition of 100% of the difference between the 
world market price (estimat ed c.i.f. price) and the 
reference price 
2012 reference price: SwF 560/tonne 
Tolerance band for deviatio ns from reference price: 
+/- SwF 30/tonne 
Maximum tariff: SwF 230/tonne 
Tariff adjustment in tervals: 1 January, 1 April, 1 July, 
1 October 
Product coverage: HS 1001.9921, 1002.9021, 
1007.9021, 1008.1021, 1008.2921, 1008.4021, 
1008.5021, 1008.6031, 1008.9023 
Source:  RS 916.01. 
4.24.  The main domestic support instruments in the arable sector are area payments (Table 4.3) 
and crop premiums (Table 4.6). Crop premiums are aimed at ensuring adequate production of "important" crops, whose protection at the frontier is not sufficient for economic production. The 
area payments and crop premiums are cumulative: for example, a rapeseed producer may receive 
up to SwF 2,660/ha
35; additional direct payments may be applicable, e.g. for "extensive rapeseed 
farming" (up to SwF 400/ha). 
Table 4.6 Area-based crop premiums, 2009-11 
Measure/objective Expenditures 
(SwF million) Eligibility criteria/ 
payment basis Payment rate  Notified in 
terms of 
2009 2010 2011 
Area-based crop 
premiums  69.9 65.9 68.8 Same eligibility criteria 
as for direct payments, 
except: no 
differentiation of 
payment rates by area; 
no payment limits. 
Rapeseed, soya, 
sunflower, pumpkin (for 
oil), linseed; pulses (for 
feeding purposes); fibre 
plants; seed potatoes, 
maize, and feed crops 
Sugar beets  Per hectare: 
 
 
 
 
 
1,000 
 
 
 
 
 
1,900 Amber Box, 
Other product 
specific 
support 
(Supporting 
Table DS:7)  
Source: Ordinance on premiums for arable farming (RS 910.17). 
4.1.5.4  Fruit and vegetables 
4.25.  Border protection remains the key trade policy instrument in the fruit and vegetables 
subsector. Tariffs on most domestically produced products are set on a seasonal basis. The "out of 
season" period for some products is very short (two  weeks). Operators that hold stocks of fruit and 
vegetables at the beginning of the harvest season ("managed period"), which were imported 
                                               
35 Subject to graduation of payments, see footnote a to Table 4.3. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  during the "out-of-season" period, are required to file a new customs declaration and pay the 
difference between in-quota and out-of-quota tariffs.36  
4.26.  Switzerland administers eight fruit and vegetable tariff quotas (including potatoes); most of 
them were over-filled in 2010-11 (Table A4.2). This is because, for certain products, the 
authorities may release additional autonomous tariff quotas during the full supply period at WTO 
in-quota rates. Tariff-quota administration me thods remain unchanged. Depending on the tariff 
quota, the methods include auctioning, prise en charge , and past import performance. For 15 fresh 
vegetables, the import regime has been partially liberalized in accordance with the Agricultural 
Policy 2011 (Table 4.1). 
4.27.   As a result of the elimination of export subsidies on 31 December 2009 (mainly for frozen 
cherries and apple juice concentrates), financial support for fruit and vegetables dropped from 
SwF 19.4 million in 2009 to SwF 2.9 million in 2010.37 The main domestic support measures are 
storage aids for manufacturers of fruit juice concentrates (apples and pears), to cover part of the storage costs. The subsidies are aimed at re ducing economic risks caused by the annual 
fluctuation of the apple and pear harvests. Addition ally, aids are provided for uprooting traditional 
and planting "innovative" tree cultures.
38 
4.1.5.5  Potatoes 
4.28.  Switzerland is over 90% self-sufficient in potatoes. Import access is provided mainly 
through a Uruguay Round minimum access quota (22,250 tonnes potato equivalents). The WTO tariff quota is opened at the beginning of the year . In case of a shortage on a domestic market, 
Swisspatat (the potato industry association) submits a request to the Government to increase the 
quota on a temporary basis. However, the stated marketing strategy of Swisspatat is to limit the 
necessary imports and have imported potatoes available at retail level only until domestic potatoes can supply the market.
39 The tariff-quota allocation is complex, comprising sub-quotas (potatoes, 
seed potatoes, potato products, and potatoes for further processing), seasonal allocations, the 
prise en charge  system, and auctioning. The sub-quota for fresh potatoes is granted to importers 
in proportion to the quantity of domestic potatoes purchased; the sub-quota for potato products is 
auctioned. Annual imports at out-of-quota tari ffs have been in the range of 680-1,835 tonnes 
since 2008. The out-of-quota tariff for fresh potatoes is estimated at 97%.40 
4.29.  Production of seed potatoes is subsidized  (Table 4.6). There is no market price support, 
according to the authorities. Producer prices are fixed by the various stakeholders within 
Swisspatat (producers, industry, and wholesalers). The level of Swiss producer prices has been 
more than twice the level of their neighbours in Austria.41 As a consequence of the high tariff 
protection, amongst other factors, the Swiss potato market shows symptoms of a wasteful 
allocation of resources: until 2009, about one thir d of the domestic potato harvest ended up as 
animal feed, partly with public funds. In July  2009, the Government stopped export subsidies for 
potatoes and its subsidies for disposal campaigns, and the disposal rate dropped to 14% in 2010 
(421,000 tonnes total production).42 However, in 2011 the disposal rate increased again, with 29% 
of production (515,000 tonnes) being fed to animals.43 
                                               
36 Article 15 of the Customs law (RS 631.0). 
37 Federal Office for Agriculture (2011), Rapport agricole 2011 . Viewed at: 
http://www.blw.admin.ch/dokumentation/00018/00498/index.html?lang=fr . 
38 Ordonnance du 7 décembre 1998 sur les mesures en faveur du marché des fruits et des légumes 
(RS 916.131.11). 
39 Swisspatat online information, Nouveau concept de commercialisation pour les pommes de terre de la 
récolte 2011 . Viewed at: 
http://www.kartoffel.ch/fileadmin/branchenecke/Mittei lungen/Produzente_FR/Oktober_10/Neues_Vermarktung
skonzept_fuer_Kartoffeln_neuer_Ernte_2011_f.pdf . 
40 HS 07019091: SwF 64/100 kg or an estimated 97% based on 2011 import data. 
41 Federal Office for Agriculture (2011). 
42 Ordonnance du 7 décembre 1998 sur les mesures en faveur du marché des fruits et des légumes  
(RS 916.131.11). 
43 Federal Office for Agriculture (2012). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.1.5.6  Sugar 
4.30.  Switzerland's bilateral agreement with the EU on processed agricultural products (2005) 
involves bilateral free trade in sugar-containing products.44 Import duties for sugar used in 
processed products, and export subsidies between the parties have been phased out (double zero 
solution). In effect, this agreement involves sugar price levels in Switzerland that are comparable 
to those of the EU, in order not to compromise the competitiveness of the Swiss food industry.45 
To achieve approximate price parity with the EU , Switzerland has introduced a variable tariff 
mechanism for MFN sugar imports. MFN tariffs are adjusted, normally every three months, so that 
duty-inclusive prices are aligned with EU sugar market prices (with a tolerance band of +/- SwF 30/tonne).
  
4.31.  In Switzerland and Liechtenstein, sugar qu otas are agreed on a private basis between the 
sugar refineries and the sugar beet producers. According to the 2012/13 industry agreement, the 
Switzerland-Liechtenstein quota is 232,000 tonnes ("A sugar") equivalent to 1,650,000 tonnes ("A beets") at 16% sugar content. The total quota is divided into farm quotas, which are 
transferable. Over-quota production is subject to financial penalties.
46 The financial assistance to 
the Swiss sugar refineries (Zuckerfabriken Aarberg and Frauenfeld), in return for a minimum production commitment, ended in October 2009 (AP 2011) and was replaced by crop premiums for 
sugar beet producers, in order to better target the support to the producers (Table 4.6). The 
payments (SwF 1,900/ha) are also intended to partially compensate farmers for income losses spilling over from the EU sugar market reform.  
4.2  Energy 
4.2.1  Overview 
4.32.  The Federal Government has recently propos ed a major change of direction of Swiss energy 
policy (Energy Strategy 2050). The security of supply is to be achieved without nuclear energy in 
the medium-term. Switzerland's five nuclear power plants will not be replaced at the end of their 
operational lifetime. To accommodate the growing electricity demand and fill the gap arising from 
the planned nuclear phase-out, the new strategy establishes the following priorities: (i) 
conservation and increased efficiency; (ii) increased generating capacity based mainly on 
renewable energy but also fossil fuels; (iii) maintaining imports of electricity; and (iv) expansion and modernization of the electricity network (smart grids).
47  
4.33.  Switzerland has embarked on a process of transition from a monopolistic electricity supply 
system towards a more competitive regime. As of 2009, large end-users may purchase electricity 
on the free market. During the second stage of liberalization, scheduled to begin in 2015, the electricity market will be liberalized for the remaining customers, including households. To make 
competition work, the transmission and distribution networks have been opened for 
non-discriminatory third-party access. The Swiss gas market has also been partially opened to competition, allowing large customers to make di rect imports. The gas industry has voluntarily 
agreed to create a level playing-field for third-party access to the pipeline network. In 
Liechtenstein, liberalization of the energy market s is under way, to align the electricity and gas 
regimes with the latest EU directives.  
4.2.2  Electricity 
4.2.2.1  Switzerland 
4.34.  Switzerland's electricity generation is mainly from hydropower (54% in 2011) and nuclear 
power (41%). Traditionally, Switzerland is a net-exporter of electricity and important transit 
country, with about a quarter of European cross- border transmission capacity. Supply is ensured 
by about 730 network operators, generally local or  regional monopolies. Most utilities/operators 
are in (direct or indirect) majority ownership of  the cantons and municipalities. The three largest 
                                               
44 Protocol 2 of the FTA with the EU (Bilaterals II). 
45 Approximately 80% of Swiss sugar pr oduction and imports are used as inputs by food manufacturers.   
46 Producer price: A beets - SwF 53/tonne; over-q uota producer price (C beets) - SwF 30/tonne. 
47 Swiss Federal Office of Energy online information. Viewed at: 
http://www.bfe.admin.ch/themen/00526/00527/index.html?lang=fr&dossier_id=05024 . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  (Alpiq, Axpo 14, and BKW) contribute  about 80% to electricity generation48, and are vertically 
integrated into distribution and trade. The Confed eration has no ownership stake in the electricity 
sector.  
4.35.  The Federal Electricity Commission (ElCom) was established in 2008 as independent 
regulator to oversee the Swiss electricity market and ensure compliance with the Electricity Supply 
Act. The law provides for a two-stage opening of the market to competition.49 From 2009 to 2013, 
utilities and large end-users (with annual consumption over 100 MWh) have the freedom to choose 
their electricity supplier.50 From 2015, small-scale end-users and households will be able to choose 
their supplier, based on a federal resolution, whic h is subject to an optional referendum. Large 
electricity consumers (over 100 MWh) may choose between two pricing/supply regimes (energy component): the free wholesale market
51, and the "basic supply" regime. The basic supply regime 
is subject to price control by the ElCom. For end-users that opt to buy electricity on the free 
market and thus request grid access, the "once free, always free" principle applies, i.e. they permanently lose their entitlement to basic su pply from the distribution system operator.
52 Under 
the basic supply regime, the tariff component for energy must be based on costs; if costs exceed 
market prices, the energy tariff component must be based on the latter.53 ElCom may intervene to 
prohibit unjustified tariff increases for the energy component or order tariff reductions.54 Electricity 
tariffs for large industrial users averaged SwF 0.14/kWh in 2010 (without VAT).55 
4.36.  According to the authorities, the objective of the first stage of liberalization, which is to 
establish a competitive wholesale electricity market with transparent pricing, has not yet been achieved. The large consumers with a right to choose (about 5,500) account for about 50% of the 
total electricity supply, but in the first three ye ars (2009-11) only about 5% was sourced from the 
free market, mainly because free market prices have been unattractive compared to regulated tariffs (energy component) under the "basic supply" regime.
56 According to the authorities, with 
the low wholesale electricity prices in Europe and the high value of the Swiss franc against the 
euro, this situation has changed somewhat and more companies have switched to the free market. 
4.37.  A key factor for functioning competition is fair access to the high-voltage power supply 
network (a natural monopoly). To this end, the tr ansmission networks of the electricity companies 
were separated from their other commercial activities and transferred to the national transmission system operator Swissgrid. The unbundling proce ss of the transmission network was implemented 
in three stages under the supervision of ElCom: (i) separation of the accounts of the network 
owners/operators from other activities (accounting unbundling); (ii) legal unbundling of 
transmission activities no later than 1 January 2009; and (iii) transfer of network ownership to 
Swissgrid no later than 1 January 2013 (ownership unbundling).
57 The three phases have been 
completed. Swissgrid is henceforth responsible fo r the operation, maintenance, and extension of 
the transmission network. Swissgrid is co ntrolled by the former network operators58, which are 
under cantonal and municipal majority ownership. The national grid operator must by law remain 
in majority public ownership and ensure its independence from any interests or activities in energy 
production, distribution, and trade.59 Swissgrid, as well as the distribution system operators, is 
                                               
48 The Axpo Group is wholly owned by the cantons of  north-eastern Switzerland. BKW is majority-owned 
by the canton of Bern. Switzerland's largest electric ity company Alpiq is majority-owned by a consortium 
consisting of the cantons and municipalities in western Switzerland. Alpiq has significant private and foreign ownership.  
49 Electricity Supply Act (RS 734.7), in force since 1 January 2008; Ordonnance du 14 mars 2008 sur 
l’approvisionnement en électricité  (RS 734.71), phased implementation starting on 1 April 2008. 
50 Electricity Supply Act, Article 13. 
51 In Switzerland, wholesale trade in electricity is mainly over-the-counter, the rest is exchange-traded 
(e.g. on the European Electricity Exchange or Swissix). 
52 RS 734.71, Article 11, paragraph 2. 
53 Ordonnance du 14 mars 2008 sur l’approvisionnement en électricité (RS 734.71), Article 4. 
54 Since 2009, electricity customers benefit from better cost transparency (accounting unbundling), i.e. 
utility bills must show tariff components separately (ene rgy component, network tariff , fees and charges of the 
public authorities, and charges for funding of renewable energy).   
55 Federal Department of the Environment, Transp ort, Energy and Communications (2011), p. 8. 
56 Federal Electricity Commission (2012). 
57 Electricity Supply Act, Article 10 and Article 33, paragraph 4. 
58 Alpiq AG, Alpiq Suisse SA, Axpo AG, BKW FMB En ergie AG, Centralschweizerische Kraftwerke AG 
(CKW), Elektrizitäts-Gesellschaft Lauf enburg AG (EGL), Elektrizitätswerk der Stadt Zürich (EWZ), and Repower 
AG. 
59 Loi sur l’approvisionnement en électricité  (RS 734.7), Article 18, paragraphs 3 and 6. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  required to provide non-discriminatory third-party access to their networks.60 Cross-subsidization 
is prohibited. The network tariffs are subject to price control by the ElCom.61  
4.38.  With the introduction of remuneration at co st for input into the grid (feed-in tariffs), one of 
the goals of Switzerland's energy policy is to incr ease the proportion of electricity produced from 
renewable energy by 5.4 TWh by 2030, a 10% incr ease over electricity consumption of 54 TWh in 
2002. Under the Energy Strategy 2050, which is currently subject public consultation, about 
22 TWh of additional renewable electricity are to be generated by 2050, in order to replace the 
existing nuclear power plants. Currently, less than 1 TWh is generated under the feed-in tariff 
system. 
4.39.  The key support instrument for the generation of renewable energy is the "cost-reflective 
feed-in tariff", i.e. a guaranteed electricity tariff that includes a subsidy to cover the difference 
between the "cost-recovering remuneration" and the market price. The market price is determined 
by the Swiss Federal Office of Energy (SFOE)  based on the volume-weighted exchange-traded 
electricity price (Swissix Base) as well as the currency exchange rate. Hydropower (up to 10 MW), 
photovoltaic (PV), wind, geothermal, biomass, and wa ste projects are eligible for the feed-in tariff. 
The feed-in tariffs vary by technology, output volu me (based on reference facilities) and start of 
operation. Once a project is approved, the feed-in tariff is guaranteed for 20-25 years. The feed-in 
tariff scheme is implemented by the SFOE and Swi ssgrid. The SFOE deals with complex cases and 
Swissgrid with standard projects. The subsidy for renewable projects is financed by all end-users through a levy of SwF 0.35/kWh (2012), which is a component of their electricity bills. Electricity-
intensive companies may apply to SFOE for a reduced rate; currently about 20 companies benefit 
from a reduced rate. Total funds from the levy  amount to about SwF 210 million a year. These 
funds are allocated on a first-come first-served basis as well as technology caps (quotas), which has led to a waiting list of almost 20,000 PV projects. This system will be modified under the 
Energy Strategy 2050. 
4.2.2.2  Liechtenstein 4.40.  The state-owned Liechtensteinische Kraftw erke (LKW) is a producer and importer of 
electricity, mainly from Switzerland, for distributi on in Liechtenstein (Table A3.1). Liechtenstein's 
energy needs are largely met through imports (87%). Liberalization of the electricity market, based on EEA law
62, started with the adoption of a new Electricity Law in 2002, which opened the 
market for large customers. Large end-users (w ith an annual consumption of more than 1 GWh) 
may import directly. LKW's transmission tariffs are subject to approval by the regulator, the 
Energy Market Commission. The current Electricity Market Law transposes EC Directives 2003/54 and 2005/89. According to the authorities, EC Di rective 2009/72 (third energy package) will be 
implemented by the end of 2013, once it has been included in the EEA acquis . However, ownership 
unbundling is not planned. 
4.41.  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 a number of small-scale hydro-electric 
power producers besides LKW and the contribution of independent solar power producers has been increasing. According to the Government's Energy Strategy 2020, adopted in 2012, the objective is to increase the share of renewable energi es from 8.2% in 2008 to 20% by 2020, through 
subsidies for improved insulation, sun-collectors, and tighter energy standards in construction. 
Liechtenstein has implemented a feed-in tariff scheme, which ends in May 2013.  
4.2.3  Natural gas 
4.2.3.1  Switzerland 
4.42.  There is no domestic production of natural gas.
63 Imports are covered through long-term 
supply contracts with EU countries. Natural gas (HS 2711.2190) is duty free and exempt from VAT 
(since 1 January 2010) but subject to mineral oil tax and CO 2 tax (Chapter 3.1.4).  
                                               
60 RS 734.7, Article 13, paragraph 1. 
61 In 2009-12, the ELCom disallowed the increases of the network tariffs announced by Swissgrid.  
62 Annex IV of the EEA Agreement. 
63 Prospecting for oil and gas is ongoing at Lake Geneva. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.43.  The Swiss gas network infrastructure is oper ated and maintained by utilities that are wholly 
owned (except transit) by the cantons and municipalities.64 The Confederation has no ownership 
stake in the gas sector, and does not provide an y special incentives. There are currently 86 local 
and cantonal gas utilities that are vertically integrated in distribution, transmission, transit, and 
trade. The gas utilities handle the distribution to the consumer (local monopolies) and control four 
purchasing companies (regional monopolies)65, which also operate their own regional transmission 
pipelines. The purchasing companies control Switze rland's largest gas company, Swissgas, which is 
responsible for about 75% of gas imports. Swissg as is the majority shareholder of Transit Gas 
(51%)66, which owns and operates the transit pipeline through Switzerland that runs from the 
Netherlands to Italy. Ownership separation of transmission from trading activities is not yet on the agenda in the gas sector. 
4.44.  Since 1 July 2007, the Swiss gas market has been partially opened to competition by giving 
large (non-household) consumers of natural gas fr ee choice of supplier. Natural gas prices in 
Switzerland exceed those in other OECD countries, mostly because of monopolistic structures, 
which make imports attractive.
67 Some large industrial users have started to make direct imports. 
Third-party access to the high-pressure (i.e. transmission and transit) gas network is ensured by the Pipeline Law of 1963 (Article 13) and the Law on cartels (Article 7)
68, but overall the 
Government has opted for light-touch regulation.69 The Federal Office of Energy has authority to 
decide in case of third-party access disputes but, in practice, the gas sector is largely industry-regulated. Following a number of disputes, the Go vernment requested the main actors to negotiate 
a new industry standard to ensure non-discriminatory third-party access to gas transit, 
transmission, and distribution services.
70 From 1 October 2012, access to the transport capacities 
is first-come-first-served; transmission and distribution tariffs must be separated from other costs (accounting unbundling); cross-subsidization is prohibited; and transport tariffs must be published 
on the internet. All access matters are overseen by the Co-ordination Centre for Gas Transport 
(KSDL).  
4.2.3.2  Liechtenstein 
4.45.  Ownership of the pipeline and distribution system for natural gas is in the hands of the 
state-owned Liechtensteinische Gasversorgung (LGV).  LGV is de facto the only supplier, although 
large customers (with an annual consumption of more than 1 GWh) may import directly. Transmission prices are subject to approval by the Energy Market Commission. The legal 
framework (Gas Market Law
71) is based on EEA legislation, especially EC Directive 2003/55 on 
common rules for the internal market in natural gas. Liechtenstein is in the process of implementing EC Directive 2009/73.  
4.2.4  Oil and refined products 
4.46.  About 20% of Switzerland's supplies of re fined oil products come from the refinery at 
Collombey in the canton of Valais (via the Oléoduc du Rhône pipeline from Genoa, Italy).
72 The 
rest is imported. Geneva is an important terminal for imports of refined oil products (via the 
SAPPRO pipeline73). Oil imports are well diversified between road and rail transport. SEAG holds 
exclusive exploration and production rights for oil and gas in ten cantons but no economically 
viable resources have been found. 
                                               
64 The Federal Pipeline Inspectorate of the Swiss Association for Technical Inspections has supervisory 
functions regarding technical aspects of pipe lines in Switzerland an d Liechtenstein.   
65 Gasverbund Mittelland AG, Erdgas Ostsch weiz, Erdgas Zentrals chweiz, and Gaznat. 
66 Transit Gas is 46% owned by Flux Swiss, and 3% by E.ON Ruhrgas. 
67 IEA (2012). 
68 Loi fédérale sur les installations de transport par co nduites de combustibles ou carburants liquides ou 
gazeux  (RS 746.1). 
69 KSDL online information. Viewed at: http://www.ksdl-erdgas.ch/fr/acces-au-reseau.html . 
70 KDSL online information. Viewed at: http://www.ksdl-erdgas.ch/fileadmin/user_upload/ksdl-
erdgas/Downloads/Verbaendevereinbarung.pdf . 
71 Liechtensteinisches Landesgesetzblatt . Viewed at: 
http://www.gesetze.li/get_pdf.jsp?PDF=2003218.pdf . 
72 The Petroplus refinery at Cressier in the ca nton of Neuchâtel was shut down in early 2012. 
73 Société du Pipeline à Produits pétroliers sur territoire genevois .  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.47.  There is a stockpiling obligation under the Federal Law on national economic supply 
(RS 531). There are no public stockpiles. The sch eme is operated by the private sector and 
administered by the association of importers of petroleum products CARBURA. Minimum reserves are 4.5 months of consumption for gasoline, diesel, and heating oil, and 3 months for kerosene; 
bio-diesel is exempt from compulsory stockholdi ng. Imports are subject to a levy to fund the 
scheme (guarantee fund contributions) (Chapter 3.1.7).
74 Swiss compulsory stockpiling of 
petroleum products exceeds the Internationa l Energy Agency minimum stock obligation. 
4.48.  Fuels are subject to consumption tax (VAT, mineral oil tax) and combustibles to the CO 2 tax 
(Chapter 3.1.4). In order to reduce CO 2 emissions, biofuels (e.g. bio-ethanol, bio-diesel, etc.) are 
partially or fully exempt from the mineral oil ta x (since July 2008) if they comply with certain 
ecological and social criteria. 
4.3  Manufacturing 
4.3.1  Features 4.49.  Manufacturing is important for both Swit zerland and Liechtenstein. In 2010, 61.4% of the 
production value in the manufacturing sector in  Switzerland was exported (2007: 63.2%) and the 
sector employs a workforce of over 633,700 (2010)
75; most businesses are small or medium-sized. 
According to the 2008 business census, more than 99% of enterprises had fewer than 
250 full-time workers, employing about two thirds of  the total work force. The largest company is 
Nestlé, the biggest food company in the world. It has around 278,000 employees, about 97% of them outside Switzerland. In Liechtenstein, manufacturing accounts for around 41% of total 
employment with about 580 enterprises operating in the sector. 
4.50.  In a competitive global marketplace, manuf acturing in both Switzerland and Liechtenstein 
has become more specialized, with the development of more advanced manufacturing techniques involving innovative research and design, su pported by a highly skilled workforce. These 
specialized industries include electronics, metal manufacturing, pharmaceuticals, food products, 
precision instruments, optical instruments, and de ntal products. According to the World Economic 
Forum, Switzerland retained its position as the world's most competitive country in 2012
76 
(Chapter 1). 
4.51.  Export-oriented sectors have suffered the most from the strong appreciation of the Swiss 
franc in 2011, despite the limited price elasticity of demand for their products (Chapter 1). The 
sectors mostly affected were the mechanical and electrical engineering and metalworking 
industries; textiles and clothing; and chemicals and pharmaceuticals. The impact on the watch-
making industry on the other hand was not perceptible due to high demand from Asian countries.  
4.52.  In general, there are no specific incentive schemes for the manufacturing sector, with the 
exception of the production of processed agricu ltural goods, which benefits from the Price 
Compensation Scheme (see section 4.1). Swiss and Liechtenstein exporting companies may benefit from export promotion programmes; and Swiss exporting companies may benefit from 
guarantees, and insurance measures (sections 3.2.6 and 3.2.7). Switzerland has a policy to 
support research and improve framework conditions for all economic sectors but it does not adhere to a policy of "national champions". No cash subsidies are in place for specific manufacturing industries other than measures open to all comp anies (such as the Commission for Technology and 
Innovation funds). 
4.53.  The introduction of the Cassis de Dijon  principle by Switzerland has further aligned its 
technical regulations on specified products with the EU/EEA's (section 3.3.2.1 and Box 3.1). 
However, exceptions to this principle include key products of interest to Switzerland, such as 
pharmaceuticals/pesticides (subject to authorization), chemicals (subject to notification), certain measuring instruments, certain motor vehicles, an imal feed, and certain measures relating to 
foodstuffs, which require conformity with Swiss te chnical requirements. Liechtenstein applies Swiss 
                                               
74 Currently, the guarantee fund contribution (including  an administration fee) is: SwF 3.3 for gasoline, 
SwF 3.00 for kerosene, and SwF 14.30 for diesel per cubic metre. The fee for heating oil is SwF 0.30. 
75 Swiss Statistics online information, Résultats détaillés de la STATEM . Viewed at: 
http://www.bfs.admin.ch/bf s/portal/fr/index/themen/03/02/blank/data/02.html . 
76 World Economic Forum (2012). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  standards, technical regulations, and conformity  assessment procedures under the Market Control 
and Surveillance Mechanism. 
4.3.2  Key subsectors  4.3.2.1  Textiles and clothing  
4.54.  The Swiss textiles and clothing industry suffers from structural problems. Due to the high 
labour intensity of the sector and high wage costs in Switzerland, the production process has largely been transferred abroad. Five out of every six employees of Swiss textile and clothing 
companies currently work abroad. Operations that tend to remain in Switzerland include services 
such as design, distribution, marketing, logi stics, and support. Swiss companies focus on 
innovative products and niche solutions, for example technical textiles for medical applications or high quality fabrics in haute couture.  
4.55.  In 2010, the textile and clothing indust ry employed 15,500 people (down from 17,800 in 
2007). In 2011, Switzerland exported around US$3.1 billion of textiles and clothing (ISIC 321 and 322), whereas it imported around US$8.3 billion. The average MFN import tariff for textiles and 
clothing is 6%, with a range from zero to 71%. 
4.3.2.2  Chemical and pharmaceutical products 4.56.  Switzerland has a significant chemical an d pharmaceuticals industry, employing 32,700 and 
37,400 people respectively in 2010 (2007: chemical industry 34,700; pharma 33,700). The 
pharmaceutical industry is heavily capital-intensive and concentrated; it involves high investment in the development of innovative products. The largest pharmaceutical companies are Roche and Novartis (formed by the 1996 merger of Ciba-Geigy  and Sandoz). The pharmaceutical industry is 
being adversely affected as a result of expiring patents and healthcare reforms in large Swiss 
export markets.  
4.57.  The chemicals industry includes the ma nufacture of basic chemicals along with the 
production of various intermediate and end products, such as pesticides, plant protection agents 
and disinfectants, paints and mastics, soaps, dete rgents, and cosmetics. Strong global competition 
in this industry has prompted Swiss companies to undergo a process of concentration and 
structural reform. 
4.58.  The chemical and pharmaceutical industri es export 85% of their output. Switzerland's 
exports of chemicals, plastics, and pharmaceuticals (ISIC code 35) amounted to US$89 billion in 2011, whereas imports were US$55.5 billion. The average MFN import tariff for this subsector is 
low, at 1.4%. 
4.3.2.3  Machinery and equipment 4.59.  Switzerland is the world's eleventh most important machinery exporter. While the industry 
has become highly competitive, Swiss machinery pr oducers have focused on quality as a means of 
retaining a competitive edge. The key products include machine tools, lifting equipment, conveyors, and plastics machinery. 
4.60.  Liechtenstein is a leader in the development and production of dental products (Ivoclar AG) 
professional entertainment connector products (N eutrik AG), steering shafts for the automotive 
industry (ThyssenKrupp Presta AG), and products for professional customers in the construction 
and building maintenance industries (Hilti AG). 
4.61.  In 2010, the machinery and equipment in dustry employed 85,400 people (2007: 94,100). 
Switzerland is a net-exporter of machinery and equipment (ISIC code 38); in 2011, exports amounted to US$93.6 billion, whereas imports were US$73.3 billion. Import tariffs for the 
subsector are low, at 1.1%. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.4  Services 
4.4.1  Banking, finance, and insurance 4.4.1.1  Switzerland 4.62.  Due to its political, economic, and social stability, prudent monetary management, liberal 
regime on capital movements, tradition of bank secrecy, and historic specialization, Switzerland is 
one of the most important financial centres in the world, attracting high volumes of foreign business (Box 4.2). 
Box 4.2 Financial services: statistical overview 
General: 
Share of financial serv ices in the GDP:  
2006: 11.7% (of which insurance 3.59%) 
2011: 10.3% (of which insurance 4.37%) 
Share of financial services in total employment:  
2006: 6.1% (of which insurance 1.56%) 
2011: 6.2% (of which insurance 1.39%) 
Net financial services exports: 
2009: SwF 20.9 billion (35.7% of Switzerland's current account surplus), of which insurance: SwF 5.2 billion 
2011: SwF 17.6 billion (28.6% of Switzerland's current account surplus) of which insurance: SwF 4.2 billion 
Capital stock of Swiss financial services providers abroad: 
2008: SwF 177 billion (23% of Swiss capital stock abroad) of which insurance: SwF 97 billion 
2010: SwF 195 billion (22.2% of Swiss capital stock abroad) of which insurance: SwF 120 billion 
Significance of the financial services arm of Swiss Post: PostFinance offers financial services in some 
2,469 post offices and 29 advisory centres. With its 3,900 staff, PostFinance had assets of nearly 
SwF 92.2 billion in 2011, spread over more than 4.36 million accounts. PostFinance is not a bank as defined by 
the Banking Act; it may only offe r financial services for which no licence is required. Thus, payment 
transactions represent its main business area, whereas va rious financial services, such as deposits or loans, 
are offered on behalf of Swiss banks.  Post Finance is subject to supervis ion by FINMA (the financial market 
authority). 
Banking services: 
Number of banks and recent consolidation:  
2006: 331 banks (of which, cantonal banks: 24; "big" banks: 2; regional and savings banks: 78; Raiffesen - 
i.e. cooperative banks: 1; stock-exchange banks: 52 ; foreign controlled banks: 120; branches of foreign 
banks: 29; private banks: 14; other banking institutions: 11) 
2011: 312 banks (of which cantonal banks: 24; "big" banks: 2; regional and savings banks: 66; Raiffesen - i.e. 
cooperative banks: 1; stock-exchange banks: 46; foreig n controlled banks: 116; branches of foreign banks: 
32; private banks: 13; other banking institutions: 12) 
Concentration/share of the various types of banks in the total balance sheet for banks in Switzerland (2011): 
Total balance sheet, SwF 2,793 billion 
(of which cantonal banks: 16%; "big" banks: 52%; re gional and savings banks:  4%; Raiffesen - i.e. 
cooperative banks: 6%; stock-exchange banks: 5%; foreign controlled banks: 11%; branches of foreign 
banks: 2%; private banks: 2%; other banking institutions: 2%) 
Lending activities (credit volumes, 2012): SwF 1,077 billion (domestic lending: 88.9%, of which mortgage 
claims: 74.4%; foreign lending: 11.1%) 
Securities activities: (securities holding in bank accounts, 2012): 
Total SwF 4,213 billion, Swiss custody account holders: SwF 2,005 billion (i.e. 47.2% of total); foreign custody 
account holders: SwF 2,238 billion (i.e. 52.8% of to tal), of which private customers: SwF 548 billion; 
commercial customers: SwF 95 billion; and institutional investors: SwF 1,595 billion 
Insurance: 
Number of insurance companies and recent consolidation 
2006: 249 companies, of which life: 29; non-life: 119; reinsurance: 25; captives: 28; health insurance 
funds: 48 
2011: 228 companies, of which life: 24 (of which 4 branches of foreign insurance companies); non-life: 124 (of 
which 45 branches of foreign insurance companies), reinsurance: 27; captives: 35; health insurance funds: 18  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Total balance sheet of the insurance sector (2011): SwF 579.7 billion, of which life insurance: SwF 299.1 billion 
(51.5%); non-life: SwF 148.2 billion (25.6%); supplementary health insurance providers: SwF 12.9 billion 
(2.25%); and reinsurance SwF 132.4 billion (22.8%) 
Concentration: (cumulative market share of the top 5 companies): life insurance: 80.6%; non-life: 66.2%; 
health insurance: 54.4% ; reinsurance: 79.1% 
Pensions funds: 
Number of pension funds: 2005: 2,770; 2010: 2,265  
Total assets: 2005: SwF 543 billion (of which collective assets SwF 71 billion), 2010: SwF 621 billion (of which 
collective assets: SwF 276 billion)  
Stock exchange and securities: 
Capitalization of the companies listed in the Swiss performance index (SPI): 2010: SwF 964 billion; 2011: 
SwF 863 billion (i.e. 143.7% of the GDP the same year); 2012 (June): SwF 915 billion 
Gross value of publicly issued bonds in Swiss francs: 2011: SwF 73 billion (Swiss borrowers: SwF 40 billion, 
foreign borrowers: SwF 33 billion); 2012 (January-July): SwF 57 billion (Swiss borrowers: SwF 32 billion, 
foreign borrowers: SwF 25 billion) 
Securities turnover on the SIX Swiss Exchange (sec ondary market, 2011): securities: SwF 1,161 billion (of 
which Swiss shares: SwF 823 billion; foreign shares: SwF 3 billion; Swiss bonds: SwF 85 billion; foreign bonds: 
SwF 91 billion; structured products and options: SwF 52 billion; investment funds: SwF 108 billion) 
 
4.63.  In regulatory terms, there have been no changes regarding market access for financial 
services except for the signature and entry into force of four regional trade agreements containing 
preferential financial services commitments by Switzerland (EFTA-Colombia, signed on 
25 November 2008 and entered into force on 1 July 2011; Switzerland-Japan, signed on 19 February 2009 and entered into force on 1 September 2011; EFTA-Ukraine, signed on 
24 June 2010 and entered into force on 1 June  2012; and EFTA-Hong Kong, China, signed on 
21 June 2011 and entered into force on 1 October 2012). The EFTA-Gulf Cooperation Council agreement, signed on 22 June 2009, also contains preferential commitments on financial services 
from Switzerland but has not yet entered into force (see Table A4.3). 
4.64.  The main regulatory changes on non-market access issues since 2008 concern essentially 
the reinforcement of prudential regulations following the adoption of Basel III principles; the international fiscal policy of Switzerland, which is directly linked to the attractiveness of its 
financial centre; and the implementation of international standards in the areas of derivatives 
traded over the counter (OTC-derivatives) and fi nancial market infrastructure. Furthermore, the 
federal law on collective investment schemes has been partially amended to correspond to the new 
EU regulation, the Alternative Investment Fund Managers Directive (AIFMD). The amended version 
will enter into force in 2013.  
4.65.  Regarding OTC derivatives trading and financial market infrastructure, the financial crisis 
highlighted that the lack of transparency on the markets for OTC derivatives can threaten the 
stability of the entire financial system. International efforts have been made to improve transparency and stability in the OTC derivatives market and to work out standards for important financial market infrastructure. The Swiss financial authorities are carrying out exploratory work so 
as to propose the necessary legal reforms to implement these international standards once they 
have been adopted. In order to ensure the comp etitiveness of Swiss market players and market 
access in the EU, regulation equivalent to that of the EU is to be sought. The Swiss Government 
assigned the Federal Department of Finance to elaborate a draft consultation paper by spring 
2013. 
4.66.  Concerning prudential regulations, the Fe deral Council adopted the total revision of the 
Capital Adequacy Ordinance in June 2012. It entered into force on 1 January 2013. This revision 
addresses the "too big to fail" issue. By 2018, systemically important banks should build up more capital, meet more stringent liquidity requirements, and improve their risk diversification. They should be organized in such a way that national economy's systemically important functions can be 
maintained even in the event of threatened in solvency. The proposed package of measures is 
designed to prevent the State from having to use tax revenues in the future in order to bail out systemically important banks (Box 4.3). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Box 4.3 Switzerland's regulatory framework for banking 
Regulatory framework 
Recent or planned regulatory changes:  None. However, significant reform s in prudential regulations have 
taken place (see below)  
Supervisory authorities 
Ministry/agency responsible for the coor dination and strategic management of  international financial, monetary 
and tax matters: State Secretariat for Internat ional Financial Matters, SIF (www.sif.admin.ch). 
Sector supervisor (monitoring bank liquidity, overse eing payment and settlement systems, etc.): Financial 
supervision and issuance of banking regulations are under the Swiss Financial Market Supervisory Authority, 
FINMA (www.finma.ch). The Swiss National Bank (SNB) is responsible for maintaining financial stability 
(www.snb.ch). The SNB oversees Swiss Interbank Clearing (SIC) and keeps the participants' accounts in this 
system. SIC is the major payment system in Switzerl and, processing almost all interbank clearings from 
large-value transactions to  mass-market transfers. 
Responsibility for competition policy issues: Competition Commission (www.weko.admin.ch).  
Preferential and bilateral policies 
Preferential arrangements affecting banking services: none 
Bilateral agreements and MOUs (notably on prudential regulation and supervision):  FINMA has concluded MoUs 
with supervisory authorities of 39 countries, whose banks have significant presence in Switzerland. Most MoUs 
are not sector specific but cover banking, insurance, and securities exchange (if counterparty of MoU is an 
integrated supervisor). The largest Swiss banks under fo reign control (assets >10 billion in 2011) are British, 
French, US-American, Italian, and Dutch/Brazilian. An agreement has been established with Greece, an MoU 
with Brazil is pending. These MoUs go vern the coordination of supervisory ac tivities as well as the exchange of 
information relevant for supervision.  
Recognition of prudential measures of other countrie s through international agre ements or unilaterally: in 
general, FINMA recognizes the consolidated supervision of foreign authorities if the countries adhere to the 
relevant Basel Core Principles (BCP). For the banking sector, due to the lack of a multilateral framework, such 
agreements are concluded bilaterally. In the area of securities and markets supervision (which involves the 
broker-dealer activities of banks), FINMA is signatory to the IOSCO multilateral MoU. 
Licensing 
General criteria: clear scope of business; adequate organization; creation of separate bodies for the 
management on the one hand and for the direction, supe rvision, and control on the other, if the scope or 
importance of business activities is  significant, for all operators except  small private bankers and securities 
traders; disclosure of the minimal fully paid-in share capital; good reputation of the persons in charge of 
administration and management of the bank; guarantee by the natural persons or legal entities with a "qualified 
participation" (i.e. which directly or in directly participate in at least 10% of the capital or the voting rights of a 
bank or whose business activities are such that they may influence the bank in a significant manner) that their 
influence will not have a negative impact on a pruden t and solid business activity; obligation for the persons 
entrusted with the management to have their domicile in  a place where they may exercise the management in a 
factual and responsible manner (i.e. generally on Swiss territory with exceptions for larger internationally active 
banks e.g. head of Asia-Division and member of group executive board may have domicile in Asia) (Banking 
Act, Article 3). Cantonal banks do not benefit anymore from preferential capital requirements. Their tax 
treatment is subject to cantonal regulations.  
Additional criteria for foreign banks: requirements ar e the same for Swiss and foreign banks; access remains 
subject to reciprocity, except when covered by internat ional obligations such as the WTO agreements. However, 
for Swiss branches of foreign banks, FINMA wi ll grant the foreign banks a licence only if;  
a) the foreign bank is appropriately organized an d possesses adequate qual ified staff and financial 
resources to operate a branch in Switzerland; 
b) the foreign bank is subject to adequate supervision, which includes the branch; 
c) the responsible foreign supervisory authorities make no objection to the establishment of a branch; 
d) the responsible foreign supervis ory authorities state that they will immediately inform FINMA if 
circumstances arise that may seriously jeopardize the interests of bank creditors; 
e) the responsible foreign supervis ory authorities are able to prov ide FINMA with official support; 
f) the conditions governing the granting of a licence, as stated in Arti cle 3bis Paragraph 1 of the Banking 
Act are met; 
g) the branch meets the conditions for the granting of a licence within the meaning of Article 3, 
Paragraph 2c and d of the Banking Ac t and has a regulation that precisely defines its business activities 
and provides adequate organization; and 
h) the foreign bank provides evidence that the comp any name of the branch qualifies for entry in the 
Commercial Register. Special provisions may apply to foreign banks such as: FBO-FINMA Article 3 
para. 2 (complete subjection to Swiss regulation if  foreign regulation is not equivalent); Article 4 
para. 2 (adequate consolidated supervision by foreign supervisor), Article 7 (requirement of collateral if 
this is necessary for depositor protection). These are set out in the Ordinance of 21 October 1996 of 
the Swiss Financial Market Supervisory Authority on Foreign Banks in Switzerland (FINMA Foreign 
Banks Ordinance, FBO-FINMA).a According to the FBO-FINMA, the remaining part of the banking 
regulation, i.e. the Banking Act and the Banking Ordi nance are applicable in the same way as for Swiss 
banks (Article 3, para 1). Relief may be given on capital adequacy and risk distribution aspects for 
subsidiaries (Article 3, para.2). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Licencing organ: FINMA  (Banking regulation and supervision take place on federal level, i.e. there are no 
licensing requirements  or regulations on cantonal level). 
Limitation of numbers of licences: none by policy 
Statutory maximum delay to pr ocess licences applications:  none 
Validity of a licence: unlimited  
Restrictions on banks selling or disposing of licences: li cences are specific to the licensed institution and may 
not be sold or transferred.  A significant change of the structure of  a bank or its ownership may require a 
reapplication, which is subject to su pervisory review and will be accepted  if the licensing criteria are met 
Minimum capital requirements to obtain a licence: SwF 10 million, usually more in practice, depending on the 
business plan  
Prudential regulations 
Administrative allocation of financial resources: fi nancial resources are not al located administratively 
Determination of interest rates and fees: bank s may determine interest rates and fees freely  
Measures to ensure compliance with the Basel Committee's  Core Principles for Effect ive Banking Supervision: in 
order to implement the international rules of the Ba sel Committee on Banking Su pervision (Basel III), the 
Federal Council adopted the total revision of the Capital Adequacy Ordinance in June 2012. It should enter into 
force on 1 January 2013. This package provides for four core measur es: strengthening of the capital base, more 
stringent liquidity requirements, better risk diversification to reduce the degree of inter-connectedness within 
the banking sector, and preparatory organizational measures to ensure the maintenance of systemically 
important functions (e.g. payment transactions) in the case of threatened insolvency . 
In the area of capital, mandatory convertible bonds (con tingent convertible bonds, or CoCos) should also be 
used in the future. CoCos are considered debt capital and are converted into shares or participation certificates 
as soon as common equity falls below a defined ratio, thereby automatically making equity capital available.  In 
order to promote the issue of new reserve and convertible capital in Switzerland, the issue tax on debt capital 
was abolished as of 1 March 2012. Capital that arises from the conversion of CoCos has been exempt from the 
issue tax on capital since then. The Federal Assembly decided during the 2012 summer session that interest 
payments on CoCos and bonds with a waiver of claims should be exempt from withholding tax in the future. 
Under Basel III, the total risk-weighted capital ratio is 10.5% and the common equity Tier 1 ratio (common 
shares and retained earnings) is 7%. Switzerland has set higher standards: by 2018 banks should hold total 
capital equivalent to 19% of their risk-weighted assets. 10% of this should be in the form of common equity, 
while the remaining 9% may be built using CoCos. Alon gside the risk-based capital requirements, the capital 
must also meet the leverage ratio requirements. As a result, the capital may not fall below 4.56% of total 
(non-risk weighted) exposure. 
The Federal Council also adopted two measures in June 2012 to be implemented imme diately. A countercyclical 
buffer is to boost banks' resilience in the event of exce ssively strong credit growth . In addition, in order to 
ensure banks are immediately more cautious when granti ng mortgage loans, they must hold more capital for 
underpinning residential mortgage lending if the borrowe r does not contribute a minimum of 10% own funds. 
This minimum sum may not come from occupational benefits provision (second pillar).  
Specific provisions against money laundering  the Anti-Money Laundering Act imposes special due diligence 
obligations on financial intermediaries (banks, securities dealers, casinos, and (subject to certain conditions set 
out in AML-Act Article 2) fund managers, certain invest ment companies, and asset managers under the Capital 
Investments Act, as well as insurance schemes). These include verification of the identity of the contracting 
party, establishment of the identity of the beneficial owne r, special clarification duties, the duty to keep records, 
and the duty to implement organizational measures to prevent money laundering. The financial intermediary 
must notify the Money Laundering Repo rting Office Switzerland (MROS) in th e Federal Office of Police if it 
suspects money laundering.  
In the non-banking financial sector (asset managers, fidu ciaries, and bureaux de chan ge, as well as lawyers and 
notaries providing financial services), the Anti-Money Laundering Act is based on the principle of self-regulation. 
Self-regulation organizations (SROs) further specify the due diligence obligations contained in the Anti-Money 
Laundering Act and supervise compliance by their members. Financial intermediaries may either join an SRO or 
submit to direct supervision by FINMA. FINMA recognizes and supervises the SROs. 
In February 2012, the FATF (Financial Action Task forc e) approved a partial revision of its standards. The 
Federal Council has therefore appointed an interdepartmen tal working group under the leadership of the Federal 
Department of Finance to draw up a consultation draft by the start of 2013 with a view to revising the system in 
Switzerland.  
Bank deposit insurance scheme  in December 2008, it was decided to increase depositor protection from SwF 
30,000 to SwF 100,000, to extend it to employee pension accounts, and to raise the upper limit for overall 
secured assets from SwF 4 billion to SwF 6 billion. The provisions were to remain in force until the end of 2010 
and be replaced by a Federal Act on Deposit Protection. Following ne gative reactions during a 2009 
consultation, the Federal Council decided at the start of 2010 to write the temporary solution into permanent 
law. The provisions that were positively received during the consultation were incorporated in a revision of the 
Banking Act, approved on 18 March 2011 and in force from 1 September 2011. 
a For a non-authoritat ive translation see: http://www.kpmg.com/CH/de /Library/Legislative-
Texts/Documents/pub_20090101-FBO_FINMA.pdf . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.67.  As a general policy, the Swiss authorities advocate tax competition within Switzerland as 
well as internationally. As a consequence of this internal fiscal competition, the Federal Council adopted on 4 July 2012 a mandate for dialogue with  the EU on corporate tax regimes. According to 
the European Union (EU), the company tax practices in certain cantons are discriminatory because 
the revenues generated abroad are sometimes taxed differently from those generated in 
Switzerland. It claims that this unequal treatment could distort competition. According to the Swiss authorities, the aim of this dialogue is to find a solution that preserves Switzerland's 
competitiveness as a business location, takes the budgetary interests of the Confederation and the 
cantons into account, and gains international acceptance.
77 
4.68.  While the legislation on banking secrecy (Article 47 of the Banking Act) has remained 
unchanged, the policy regarding international legal and administrative assistance in tax matters is 
in flux. The main development during the review period was a March 2009 decision by the Federal 
Council to withdraw the Swiss reservation to Article 26 of the OECD Model Tax Convention on Income and Capital.
78 This decision paves the way for further exchange of information on tax 
matters with the signatories of the OECD convention.  
4.69.  On 1 October 2010, an ordinance was implemented on executing administrative assistance 
in accordance with double taxation agreements. This allows Switzerland to expand information 
exchange with other countries in individual cases upon "specific and justified request". 
Implementation is by way of bilateral double taxation agreements, which are being revised.79 
4.70.  Within the framework of the Federal Council's financial integrity strategy, Switzerland is 
aiming to conclude bilateral agreements that make provision for a final withholding tax and tax-
related regularization for the past, for foreign bank clients, so as to protect the privacy of clients 
while fulfilling tax obligations in the countries co ncerned. According to the Swiss authorities the 
long-term effect of this system is equivalent to the automatic exchange of information in the area 
of investment income. The agreements also offer market access opportunities to financial services 
providers. On the basis of reciprocity for non-WTO Members, and in line with the applicable laws, the agreements establish a clear framework, facilitating the service provision of Swiss financial 
institutions in the respective countries and vice versa.  
4.71.  Regarding anti-money-laundering measures, the FATF (Financial Action Task force) 
approved a partial revision of its standards in  February 2012. The revised standards require 
modifications of the existing sy stem in Switzerland (Box 4.3). 
4.72.  Boxes 4.3 to 4.7 describe in more detail Switzerland's regulatory framework for banking 
services, insurance services, pension fund  services, and securities services.  
Box 4.4 Switzerland's regulatory framework for insurance, 2012 
Recent legislative changes none 
Supervisory authorities  
Ministry/agency responsible for de fining insurance sector policy:  State Secretariat for International Financial 
Matters, SIF  
Ministry/agency responsible for the supervision of the sector: supervision and issuance of insurance 
regulations are made by FINMA 
Responsibility for competition policy issues: Competition Commission (ComCo) 
Preferential and bilateral policies 
Preferential arrangements affecting insurance services: bilateral agreements with Liechtenstein and the EU. 
The insurance agreement signed in 1989 opens up certain areas of the insurance markets between 
Switzerland and the European Union. In the area of di rect insurance for damage (household, motor vehicle, 
travel, and liability insurance, etc.) Swiss insurers are en titled to set up and to ac quire agencies and branches 
in the EU, and EU companies enjoy the same rights in Switzerland (see 
http://www.finma.ch/e/finma/internationales/ vereinbarungen/abkommen/pages/default.aspx )  
 
                                               
77 Online information. Viewed at: http://www.sif.admin.ch/themen/00502/index.html?lang=fr  and 
http://www.sif.admin.ch/themen/00502/00759/index.html?lang=fr . 
78 Online information. Viewed at: http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/ 
model-tax-convention-on-income-and-on-capital-2010_9789264175181-en . 
79 For a complete list of the double taxation agreements involving Switzerland and for the texts of some 
of these agreements, see: http://www.sif.admin.ch/themen/00502/00740/index.html?lang=en . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Bilateral agreements and MOUs: FINMA has concluded MoUs with supervisory authorities of countries whose 
insurers have significant presence in Switzerland (and  vice versa). These MoUs go vern the coordination of 
supervisory activities as well as the exchange of inform ation relevant for supervisio n. FINMA is also signatory 
to the [IAIS] multilateral MoU 
Licensing 
Criteria for assessing applications for insurance licence: organizational, legal, capital, and solvency 
requirements 
Compatibility of life and/or non-life insurance licences: life insurance companies are allowed to underwrite 
casualty or health insurance risks 
Differential treatment for foreig ners in the licensing process:  none 
Limitation on number of providers: none  
Licencing authority: FINMA is the sole competent authority to evaluate licence applications and to grant 
licences. Insurance regulation and supervision is at federal level, i.e. there are no licensing requirements or 
regulations on cantonal level for private-sector insurance. 
Maximum processing time for applications: none 
Period of validity of a licence: unlimited. A significant change of the structure of an insurance company or its 
ownership may require a reapplication,  which is subject to supervisory re view and will be accepted if the 
licensing criteria are met.  
Restrictions on selling or disposing of licences: not transferable. Licences are specific to the licensed 
institution.  
Prudential regulations 
Differences of treatment between state-owned firms,  other domestically owned firms, foreign-owned 
branches, and foreign-ow ned subsidia ries: none 
Recognition of home country supervision of foreign insurance companies: in general, FINMA recognizes the 
consolidated supervision of foreign authorities if the co untries adhere to the relevant IAIS Core Principles 
(ICP). 
Minimum capital requirements to obtain a licence: Article 8 of the Insurance Supervision Acta requires 
minimum capital of SwF 3–20 million to obtain a licence, subject to sector-specific provisions by the Federal 
Council. The Federal Council's Insurance Supervision Ordinanceb specifies this requirement for life-insurers 
(Article 7) at SwF 5-12 million, for non-life-insurers (Article 8) at SwF 3–8 million, and for re-insurers 
(Article 9) at SwF 3-10 million, depending on business model.  
Administrative allocation of insura nce services: life, non-life, and re-i nsurance services are not allocated 
administratively.  
Approval required for life and non- life premiums and produc ts: no requirement for premiums and products, 
although the latter must comply with the respective legal requirements. As an exception, products and 
premiums in health insurance are subject to approval. 
Compatibility of life and non-life insurance activities:  according to the Insurance Supervisory Act, Article 12, 
life-insurers non-life-business is limited to accident an d health insurance. Life-insurers who offer accident or 
health insurance are subject to Insu rance Supervision Ordinance, Article 7, para. b, which sets a minimum 
capital requirement for obtaining licence of SwF 8 million . 
a See http://www.vermittleraufsicht.ch/bausteine .net/file/showfile.aspx?downdaid=7439&sp=D& 
domid=1063&fd=2  for detailed information. 
b See http://www.admin.ch/ch/d/sr/c961_011.html  for detailed information. 
Box 4.5 Switzerland's regulatory framework for pension funds, 2012 
Pension fund structure occupational benefit plans, also called the 2nd pillar, complete the basic 1st pillar 
AVS/AI/APG system (old age, invalidity, income compensa tion allowances in case of  illness and for maternity). 
Together, they should ensure that retired people to a large extent maintain their former standard of living. 
The LPP (Federal Law on Occupational Benefit Plans) defines minimum benefits in the event of old age, death, 
and invalidity. But pension funds are free to provide higher benefits. In principle, the law lets pension funds 
freely choose the form of organization they prefer, thei r design of benefits, and wa ys of financing them. The 
2nd pillar is mandatory for salaried persons and for th e unemployed (against invalidity and death under more 
restrictive conditions) already subject to the AVS (1st pillar), with an annual income of at least SwF 20,880 
(2012). This is the threshold of the obligatory pension fund scheme. Pension funds that are providing the 
statutory minimum need to be registered. The 2nd pillar, when provided by priv ate entities, falls within the 
scope of the GATS but is subject to specific reservat ions in the Swiss GATS and FTAs financial services 
commitments. 
Recent reforms The most important recent  pension fund reform wa s the structural reform.a In January 2012, 
an independent centralized supervision commission was set up to accomplish uniform supervision standards 
(cantonal supervision authorities will remain responsible for direct supervision). The commission will also 
implement standards in terms of the over all stability of the system (e.g. investment policy or reserves); it will 
be able to issue binding instructions. In terms of tran sparency and loyalty, there are new rules for persons or 
institutions managing pension funds, as a whole or in part (especially for asset-managers). A special issue will 
be avoidance of conflicts of interest. To emphas ize governance rules, the penalty-catalogue was 
supplemented. Governance and loyalty rules have been in effect since August 2011. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Supervisory authorities for pension funds 
Federal Occupational Pensions Regulatory Commission and Cantonal Supervision Authorities grouped in an 
Association ( Conférence des autorités cantonales de surveillance) www.konferenz-bvg-aufsicht-stiftungen.ch  
 
Licensing criteria: institutions wishing to participate in the mandatory occupational benefits plans must be 
officially registered by the competent surveillance authorit y. They should be organized in the form of a mutual 
association or a foundation 
Additional licensing conditions: none 
Period of validity of a licence:  in general, unlimited  
Transferability of licences: not transferable 
Limitation on the number of providers : none 
a See http://www.bsv.admin.ch/themen/vorsorge/00039/00335/index.html?lang=en  for detailed 
information. 
Box 4.6 Switzerland's regulatory framework for mutual funds, 2012  
Securities, mutual funds, asset management 
 
Supervisory authorities for mutual funds 
Ministry/agency responsible fo r defining sector policy:  State Secretariat for International Financial Matters 
(SIF) 
Ministry/agency responsible for the supervision of th e sector: FINMA. Pension funds are approved by the 
Federal Social Insurance Office (FSIO). 
 
Licensing criteria:  good reputation and professional qualificat ions of the managers, 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 capital or of the voting rights) and sufficient 
financial guarantees (i.e. meeting the minimum capi tal requirement of SwF 200,000 (Collective Investment 
Schemes Act, Article 14 para. 1.a 
 
Additional licensing conditions for foreign companies:  none 
Period of validity of a licence:  in general, unlimited  
Transferability of licences: not transferable 
Limitation on the number of providers:  none 
a See http://www.kpmg.com/CH/de/Library/Legislative-Texts/Documents/pub_20090101_CISA.pdf  or 
RS 951.311 for detailed information. 
Box 4.7 Switzerland's market and regulatory regime for securities and stock exchanges, 
2012 
Supervisory authority and licensing organ : FINMA  
Licensing  
General criteria: 
Securities dealers must provide info rmation and ensure internal separa tion of their trading, portfolio 
management, and settlement business; minimum fully paid-up capital is SwF 1.5 million. 
Asset managers of Swiss collective investment schemes, based in Switzerland, must be authorized by the 
SFBC and are under its prudential supervision. Asset mana gers may be natural or legal persons; in the latter 
case they must be a joint-stock company, a stock company with unlimited partners, a limited liability 
company, a general partnershi p or a limited partnership . 
Additional criteria for foreign firms  
Foreign securities dealers may request SFBC authorizat ion to establish a Swiss branch; they must provide 
information and evidence of "adequate organization, sufficient financial resources, and qualified staff". In 
addition, foreign supervisory authorit ies must consent to cross-border op erations and provide administrative 
assistance and information to the FINMA. 
Stock exchanges organized under foreig n law are granted authorization to op erate in Switzerland if they are 
subject to "appropriate supervision".  
Foreign asset managers may be delega ted for asset management of Swiss collective investment schemes if 
they are subject to recognized supervision.  
Period of validity of a licence:  in general, unlimited  
Transferability of licences: not transferable 
Limitation of the number of provider:  none. As at end-October 2012, 3 domestic and 52 foreign stock 
exchanges have been granted authorization  
Restrictions on foreigners buying and selling on the stock market:  none  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Operating conditions 
Requirements to use international accounting and disclosure standards: besides the Swiss accounting 
standard, both IFRS and US-GAAP are accepted for companies listed on the Swiss exchanges 
Provisions on shareholders' rights in companies listed in the stock exchanges and on companies' obligations 
to disclose information 
Code of Obligations Article 689ff specifies sharehol der rights, such as pers onal membership rights, 
participation in general meetings, entitlement, as agai nst the company, representation of the shareholder, 
disclosure, voting rights and rights of control ( http://www.admin.ch/ch/e/rs/2/220.en.pdf ). 
The FINMA Stock Exchange Ordinance defines obligation s to notify in terms of thresholds and deadlines 
(http://www.six-exchange-regulation.com/download/admission/regulation/federal_acts/fbc_en.pdf ). 
The listing rules of SIX group (as an example) specifies further disclosure and reporting obligations 
(http://www.six-exchange-regulation.com/admission_manual/03_01-LR_en.pdf ). 
For more information, see: http://www.six-exchange-regulation.com/index_en.html . 
4.4.1.2  Liechtenstein 
4.73.  Liechtenstein is a small financial centre specialized in private banking, wealth management, 
and funds, trustee, and insurance services. The su bsector benefits from Liechtenstein's political, 
economic, and social stability, its close ties with Switzerland, including the customs and currency 
union, full membership in the EEA80, and a liberal tax regime.  
4.74.  Box 4.8 below describes the main economic indicators of financial services in Liechtenstein.  
Box 4.8 Financial services: statistical overview 
General 
Share of financial serv ices in the GDP: 27% 
Share of financial services in total employment: 9.4% 
Net financial services exports: not available 
Capital stock of Liechtenstein financial services providers abroad: not available 
Banking services 
Number of banks and recent consolidation: 17, of which 8 are foreign (4 banks with Swiss majority 
shareholders, 4 with Austrian majority shareholders) 
Total assets under management in the banking system: 2008: SwF 120.844 billion; 2009: SwF 125.1 billion; 
2010: SwF 121.2 billion; 2011: SwF 117.1 billion  
 
Assets managed by in vestment undertakings: SwF 35,44 billion  
Assets managed by asse t management companies: SwF 21,3 billiona 
Assets managed by trustees or trust corporations: - 
Total balance sheet of the banking system: 2008: SwF 55.67 billion; 2009: SwF 55.053 billion; 2010: 
SwF 52.466 billion; 2011: SwF 54.6 billion  
Net profit of the banking system: 2008: SwF 0.464 billion; 2009: SwF 0.587 billion; 2010: SwF 0.569 billion; 
2011: SwF 0.163 billion  
Concentration: the top three banks accounts for 87% of the assets 
Number of investment undertakings: 535, of which 198 are foreign registered companies 
Number of authorized trustees: 79  
Number of trust corporations: 263 
Number of assets management companies: 107 
                                               
80 All applicable EU Acts on financial services ar e mentioned in EEA Agreement Annex IX (Financial 
Services), Annex XII (Free Movement of Capital), and Annex XXII (Company Law).  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 102 - 
 
  Insurance 
Number of insurance companies and recent consolidat ion: 40 companies at end 2011 (14 non-life insurance 
companies; 21 life insurance companies; 5 reinsurance companies), 12 of which (7 for non-life, 5 for 
reinsurance) operated as captive 
Number of employees: 577 
Number of branches: 18 foreign insurance companies (17 Swiss, 1 EU) have es tablished branches in 
Liechtenstein 
Cross-border activities: as at end 2011, over 265 EEA and Swiss insurance undertakings had registered their 
intention to provide cross-border insurance services, al though these undertakings ve ry rarely become active 
Gross premiums of the insurance sector (2010): SwF 9. 4 billion, of which 94% in life insurance; 2011: 
SwF 4.8 billion, of which 90% in life insurance 
Capital investment of the insurance sector (2010): SwF 29.6 billion, of which 97% for life insurance; and 2% 
for reinsurance; 2011: SwF 29.1 billion, of which 96.7% for life insurance and 2.7% for reinsurance 
a Assets of investment undertakings and asset manage ment companies may be included in the total of 
assets under management in the banking system on ly to the extent where they are assets under 
management for the bank and held in a bank in Liec htenstein. However, there is no legal obligation 
for investments undertakings and asset management companies to domiciliate assets in a local bank. 
4.75.  Boxes 4.9 and 4.10 below describe in more detail Liechtenstein's regulatory framework for 
banking services, investment undertakings, asset management companies, and payment devices 
providers.  
Box 4.9 Liechtenstein's regulatory fr amework for banking services, 2012 
Main regulations  Banking Act of 1992 (LLG 1992, No. 108, as amended) and the corresponding Banking 
Ordinance, as (LLG 1994, No. 22, as amended) ( http://www.gesetze.li/Seite1.jsp?LGBlm=1992108 ) 
Supervisory authority 
Financial Market Authority (FMA), established in January 2005, is responsible for supervising banks, 
investment firms, investment undertakings, trustees, lawyers, accountants, and auditors. 
 
Preferential and bilateral policies 
Preferential arrangements affecting banking services: as a result of Liechtenstein's participation in the EEA, all 
of its banking, securities, insurance, and accounting legislation is based on EC legislation, although the 
national accounting standards for financial institutions (mainly banks) are also similar to the accounting rules 
of the Swiss FINMA. Banks in Liechtenstein and Switzerl and have the same principles of accountancy, and the 
structure of the balance sheet and the profit/losses stat ement are practically identical. Both countries apply 
the same valuation provisions (i.e. true and fair view  etc.). Generally the comp any may choose the national 
accounting standard or the IFRS standard. 
Licensing 
General criteria: banks and investment firms (i.e. an asset management company in the sense of the EU 
Market in Financial Instrument Directive 2004/39a) require a licence from the FMA in order to commence 
operations, and may only take the legal form of limited companies (Aktiengesellschaft).b The head offices and 
the principal management must be domiciled in Liecht enstein. The minimum required fully paid-up initial 
capital is SwF 20 million for banks and SwF 3 million (or th e equivalent in euros or U.S. dollars) for investment 
firms. After commencing business activity, the minimum capital must not drop below SwF 10 million, or the 
equivalent amount in euros or U.S. dollars. The memb ers of the board of directors may have their domicile 
outside of Liechtenstein as long as they fulfil the obligati ons of their functions; they must be authorized to fully 
represent their company.c 
 
Additional criteria for foreign banks :  
Establishment of a branch or subsidiary of a non-EEA bank or investment firm requires a licence. Additional 
requirements are: the institution must be subject to home consolidated supervision comparable to 
Liechtenstein supervision, and the home authorities must raise no objections. To establish a representation in 
Liechtenstein a foreign institution requires a licence issued by the FMA; this is granted if it is supervised in its 
home country (consolidated supervision in the case of  a group) in a manner comp arable to Liechtenstein 
supervision, the home supervisory authorities do not obje ct to the presence of the bank in Liechtenstein, and 
the managers of the representation "guarantee irreproach able business activities". No reciprocity requirements 
exist. However, according to the authorities, so far no non-EEA bank has requested to establish a branch in 
Liechtenstein. The FMA grants the licence if the written application indicates, inter alia , the name of the 
company in the third State and the name of the appointe d branch in Liechtenstein; an up-to-date prospectus, 
and the most recent yearly and half-yearly reports of the investment undertaking must also be submitted. 
Certification is required from home state authority that the undertaking is subject to consolidated supervision 
equivalent to Liechtenstein supervision. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Investment firms and banks domiciled in an EEA member-state have free movement of services rights for the 
activities covered by their home licences; they do not require a Liechtenstein licence. However, their 
operations in Liechtenstein must be supervised by  their home authorities. The same applies to the 
establishment of branches of EEA financial institutions in Liechtenstein. 
Prudential regulations 
Administrative allocation of financial resources: fi nancial resources are not al located administratively 
Determination of interest rates and fees: bank s may determine interest rates and fees freely  
Specific provisions ag ainst money laundering  the core legal basis for the AML/CFT preventive measures 
in Liechtenstein is the Liechtenstein Due Diligence Act, No. 47/2009, and the Liechtenstein Due Diligence 
Ordinance, No. 98/2009. As a result of the EEA membersh ip, Liechtenstein had to implement the Third EU Anti 
Money Laundering Directive (2005/60/EC) and the related implementing measures, which have been 
incorporated into the above-mentioned acts.  
 
The Liechtenstein Due Diligence Act imposes special due diligence obligations on financial institutions (banks 
and investment firms, e-money institutions, payment institutions, insurance companies, asset management 
companies, etc.) as well as designated non-financial business professions (DNFBPs) (professional trustees, 
auditors, lawyers, dealers in good s, real estate agents, etc.).  
 
Obligations include the requirement to identify and verify the identity of the customer and the beneficial 
owner, ongoing monitoring of the business relationship (including scrutiny of transactions), and preparation of 
a business profile (information on the source of fund s and the purpose and intended nature of the business 
relationship). The Due Diligence Act also provides for record keeping obligations and the duty to implement 
organizational measures to prevent mone y laundering and terrorism financing.  
 
Where suspicion of money laundering, a predicate offens e of money laundering, organized crime, or terrorist 
financing exists, all financial institutions and DNFBPs are required to report immediately to the Financial 
Intelligence Unit (FIU). Likewise, all offices of the national administration and the Liechtenstein Financial 
Market Authority are subject to the obligation to report to the FIU.  
 
The Liechtenstein AML/CFT framework was assessed by  the International Monetary Fund in 2002 and 2007 for 
its compliance with the FATF Recommendations. The IMF certified as high the Principality of Liechtenstein's 
standards in its fight against money laundering and financ ing of terrorism. The IMF will assess Liechtenstein's 
AML/CFT system again in 2013.  
Bank deposit insurance scheme the Liechtenstein Bankers Association (LBA) established the Liechtenstein 
Deposit Guarantee and Investor Protection Found ation of the Liechtenstein Bankers Association 
(Einlagensicherungs- und Anlegerschutzstiftung  des Liechtensteinischen Bankenverbands, EAS) , an 
autonomous foundation under Liechtenstein law. The Foun dation has assumed the obligation, in the event of a 
bank's insolvency or bankruptcy, to pay compensation up to a specified maximum (€100,000). All banks 
operating in Liechtenstein participate in the EAS.  
a Http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:02004L0039-20070921:EN:NOT . 
b Exceptions may be granted by the FMA. 
c Banks are obliged to adopt a dual management st ructure, with a board of  non-executive directors 
and a management board; internal auditors, reportin g directly to the board of directors, must also 
be appointed.  
Box 4.10 Regulatory framework for invest ment undertakings, asset management 
companies, and paymen t services providers 
Investment undertakings  
Main regulations: the Law on investment undertakings (IUA, LLG 2005, No. 156), and Act on Certain 
Undertakings for Collective Investment in Transferable Securities (UCITSA LLG 2011, No. 295).   
http://www.gesetze.li/Seite1.jsp?LGBl= 2005156.xml&Searchstring=IUG&showLGBl=true   
http://www.gesetze.li/Seite1.jsp?LGBl=2011295 .xml&Searchstring=UCITSG&showLGBl=true   
 
Recent or planned regulatory changes: On 6 March 2012, the Government adopted the consultation report for 
the creation of a law on alternative investment fund managers and approved the amendment of further laws. 
The new draft legislation is designed to implement the Directive of the European Parliament and the European 
Council from 8 June 2011 on alternative investment fund managers (AIFM Directive). The UCITS IV Directive 
has already been implemented through the Law on Unde rtakings for Collective Investment in Transferable 
Securities, which came into force on 1 August 2011. The new AIFM law is planned to come into force on 
1 April 2013 and will be fully applicable towards Europe from 22 July 2013. 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Licencing: Any investment undertaking requires a licence from the FMA. Investment undertakings are divided 
into investment funds on a contractual basis (which ha ve the legal form of a tr usteeship), an d investment 
companies (which have the legal form of a limited company). The minimum required fully paid-up capital is 
SwF 1 million. Investment companies must be incorporated as limited liability companies, with fixed or variable 
capital. Regardless of form, investment undertakings are obliged to have both a board of directors and a 
custodian bank, which must be registered in Liechtenstein. Furthermore, the principal administration of an 
investment undertaking must be  domiciled in Liechtenstein. 
 
Business scope: mutual funds may be marketed only by banks, fund management companies, or trustees with 
commercial presence in Liechtenstein. There are no secondary markets or underwritings in Liechtenstein. 
Liechtenstein banks may participate in secondary mark ets through their Swiss oper ations. Units of foreign 
investment undertakings may be sold in Liechtenstein und er licence or, if reciprocit y exists, after notification.  
Asset management companies  
 
Relevant legislation: Law on asset management (Asset Management Act, AMA) entered into force on 
1 January 2006. This Act lays the foundation for asse t management companies as new, internationally 
recognized, financial intermediaries ( http://www.gesetze.li/Seite1.jsp?LGBl=2005278.xml&Searchstring 
=VVG&showLGBl=true ) 
Supervisory authority: the FMA  
Licensing conditions: minimum fully paid-up capital requirement of SwF 100,000  
Payment services providers  
 
Relevant legislation: Law on Payment Services (Payment Service Act, PSA) entered into force on 1 November 
2009. It transposes the European Payment Service Direct ive into national law and regulates the establishment 
of payment service providers as new financial intermediaries as well as the requirements and obligations for 
the provision of payment services ( http://www.gesetze.li/Seite1.jsp?LGBlm=2009271 ) 
Supervisory authority: the FMA  
Licences granted: none 
 
4.76.  Through the "Liechtenstein Declaration" of 12 March 200981, the Liechtenstein Government 
publicly expressed its commitment to implement glob al standards of transparency and exchange of 
information as developed by the OECD. Liechtenstein confirmed its readiness to speed up the negotiation of tax information exchange and other agreements with a view to having a network of 
such arrangements in place as soon as possible in  order to address the global issue of tax fraud 
and tax evasion as well as the legitimate needs of its industrial sector to avoid double taxation. 
4.77.  Since the publication of the declaration Liechtenstein has negotiated and concluded 20 tax 
information exchange agreements (TIEAs) and 5 double tax agreements (DTAs), and has revised 
its national legislation for the implementation of these agreements. All TIEA and DTA are in 
accordance with the OECD-model conventions. Liechtenstein is also participating actively in the 
peer review mechanism of the OECD Global Foru m on Transparency and Exchange of Information 
for Tax Purposes.
82  
4.78.  Liechtenstein was removed from the OECD List of Uncooperative Tax Havens on 
11 November 2009.  
4.79.  Boxes 4.11 and 4.12 describe Liechtenstein's regulatory regime for insurance services as 
well as for pension fund an health insurance.  
Box 4.11 Liechtenstein's regulatory fr amework for insurance services, 2012 
Main regulations  the Insurance Supervision Act (LLG 1996, No. 23) and the associated ordinance (LLG 
1997, No.41, in force from 24 January 1997)  
Supervisory authority  the FMA   
Preferential and bilateral policies 
Preferential arrangements affecting insurance services: none 
As a result of Liechtenstein's participation in the EEA, all of its banking, securities, insurance, and 
accounting legislation is based on EC legislation.  The FMA also joined the European Insurance and 
Occupational Pensions Authority (E IOPA), currently as an observer. 
 
                                               
81 Viewed at: http://www.oecd.org/dataoecd/27/21/42340216.pdf . 
82 Viewed at: http://www.oecd.org/tax/transparency/ . WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  On the basis of a bilateral agreement ( Direktversicherungsabkommen ) in force since 1998, insurance 
undertakings domiciled in Sw itzerland or Liechtenstein are granted freedom of establishment and operation 
in the other country. This agreement was extended in 2007 to allow insurance intermediaries to engage in 
cross-border activities. 
Since October 2012, the FMA is also a signatory to the IAIS multilateral MoU. 
Licensing  
A licence is required for each insurance branch.  
Undertakings must adopt the legal form of a limited  company, Societas Europeas, a cooperative, or 
European Cooperative (SCE). 
Aside from minimum capital requirements (€2.3 million to €3.5 million for non-life, €3.5 million for life, 
€ 3.2 million for reinsurance companies, and €1.1 millio n for captives), an organizational fund is required 
for formation costs or exceptional bu siness expansion, amounting to 20- 50% of the minimum capital. Exact 
minimum capital requirements depend on the company's business plan. 
The main administration of the company (including accounting) must be situated in Liechtenstein.  
Undertakings domiciled and licens ed in an EEA country may conduct direct insurance business in 
Liechtenstein without a Liechtenstein licence: the single-licence principle applies since accession to the EEA.  
Insurance companies are prohibited from undertaking non-insu rance activities. 
A company may offer either life or non-life insurance;  insurance undertakings engaged in life insurance 
may not be active in any other branches of in surance apart from supplementary insurance against 
accidental death, sickness, and invalidity. 
Cross-border provision of insurance services by EEA companies is possible, provided the insurance 
undertakings have the necessary solvency margin. 
Non-EEA-country insurance undertakings (except Switzerland, see above) require authorization in order to 
operate in Liechtenstein; they must establish an agen cy or a branch office and have assets available in 
Liechtenstein equivalent to at least half the guarantee fund. Insurance undertakings with their head office 
in a foreign country and engaged solely in reinsuranc e activities are exempt from Liechtenstein supervision.  
Box 4.12 Liechtenstein's regulatory framewor k for pension funds and health insurance 
2012 
Basic health insu rance structure  Basic health insurance is compulsory for all persons residing and/or 
working in Liechtenstein (i ncluding foreigners).  
It may only be provided by authorized non-profit health insurance companies and covers sickness, 
maternity, and accident risks (if not covered by compul sory workplace accident insurance) through benefits 
in cash and in kind, as defined by law. All benefits in kind are required to be "effective, appropriate and 
efficient".  
Each insured person may choose any of presently three recognized health insurers; these do not have the 
option to refuse insurance, regard less of age or state of health.  
Under the Health Insurance Act, in surance companies must offer a unif orm premium for ad ults, which must 
be accepted by the Office of Publ ic Health, and a reduced premium (hal f) for young peop le (17-20 years); 
the companies may not ask for a premium for children (0-16 years). Under the Act, the state subsidizes 
insurance premiums in variou s direct and indirect ways, e.g. by contributions to the costs of medical care.  
Optional insurance may be purchased outside the scope of the compulsory scheme.  
Compulsory accident insurance system   
All employees are covered by an insurance contract th at must be concluded by every employer against the 
risks of accidents at work, leisure accidents, and occupational sickness.  
The premiums are imposed by the Government according to different risk classifications depending on the 
type of activity.  
The scope for competition among insurers is limited to administration costs.  
All compulsory accident insurers are registered.  
Pension system   
There are three pillars of old age and widower's pension and disability insurance: compulsory scheme for all 
persons living or working in Liechtenstein; occupation al pension scheme that is compulsory for employed 
persons earning more than SwF 19,890 per year, and desi gned to enable the insured person to maintain 
his/her living standards after retireme nt; and individual saving measures.  
The first pillar is operated by a public establishmen t; the second and the third pillars are operated by 
private insurers.  
Supervisory authorities  
the Office of Public health for heal th insurance, compulsory accident in surance and the first pillar of the 
pension system; and the FMA for the second and third pillars of the pension system. 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.4.2  Telecommunications 
4.4.2.1  Switzerland 4.80.  In regulatory terms, the only changes to market access for telecommunications services 
relate to the signature and entry into force of four regional trade agreements containing 
preferential telecommunications services co mmitments by Switzerland (EFTA-Colombia, 
Switzerland-Japan, EFTA-Ukraine, and EFTA-H ong Kong, China) (see Chapter 2.2.2). The 
EFTA-Gulf Cooperation Council agreement also contains preferential commitments on 
telecommunications services from Switzerland but has not yet entered into force.  
4.81.  The main regulatory changes on non-market access issues since 2008 concern essentially 
the universal services obligations and the protection of data. In parallel the national regulatory authority, the Federal Communication Commission (ComCom), the Federal Administrative Court, 
and in one instance the Federal Court, have also taken a series of decisions regarding all forms of 
access obligations for the dominant provider foreseen by the law. 
4.82.  The 9 March 2007 telecommunications services ordinance
83 was modified on 
24 November 200984, to reinforce the protection and information of consumers when they use 
their mobile phone abroad or consume value-a dded services. A second modification of the 
ordinance, on 9 December 201185, raised the minimum guaranteed broadband output from 600 to 
1,000 k/bits, and lowered the ceiling price for a br oadband connection offering such an output 
from SwF 69 to SwF 55. It also reinforced the protection of minors against erotic or pornographic value-added telecom services. 
4.83.  Regarding interconnection obligations, the incumbent Swisscom contested its dominant 
market position status in several procedures (Box 4.13).  
Box 4.13 Market structure and regulatory framework of Switzerland's 
telecommunications sector, 2012
 
Economic data 
Penetration rates (2010) 
Total telephone subscribers (per 100 inhabitants): 182 
Mobile phone subscribers (% of total subscribers): 67.9 
Internet users (per 100 inhabitants): 83.9 
Broadband internet subscribers (per 100 inhabitants): 38.2 
Secure Internet servers (no.): 14,614 
Main actors 
Number of companies providing value-added telecom services: 
Of which, providing value-added pl atform services: 19; providing SMS,  MMS, and premium rates services: 
61 
Names and market shares of the leading companies for fixed telecom services:  
Total: 93 companies 
Market leaders (by duration of connections, 2010 ): Swisscom: 70%, Sunrise: 9.8%; Cablecom: 7.1% 
 
Name and market shares of the leading co mpanies for mobile telephones services:  
Total: 12 companies 
Market leaders (by number of contracts, 2010): Swisscom: 59.4%; Sunrise: 20.7%; Orange: 15.5%. The 
nine other companies are simple resellers, there are no mobile virtual network operators (MVNOs) present 
on the Swiss market or any legislation forcing the three network operating companies to make an offer to 
MVNOs. 
Name and market share of the broadband internet services:  
Total: 164 companies  
Market leaders (by number of contracts, 2010): Swisscom: 54.4%; Cablecom: 17.6%; Sunrise: 11.8% 
Foreign ownership participation in telecom companie s: Sunrise, Orange, and Cablecom are 100% foreign 
owned  
State ownership: 57% of the shares of Swisscom  
                                               
83 OCG; RS784.102.1. 
84 RO 2009 5821. 
85 RO 2012 367. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Establishment of new companies, mergers or closures during the review period: none  
Regulatory framework  
Interconnection and competition issues 
Fixed interconnection regime: telecommunication services providers with a dominant market position 
(including suppliers of part of the universal services) must provide interconnection to other suppliers without 
discrimination and in accordance with transparent and cost-related principles. Interconnection prices of a 
market-dominant provider are regulated on the basis of the "long-run incremental costs" (LRIC) method 
applied by most European countries. Dominant providers must publish a basic offer every year, 
interconnection prices must be cost-oriented only in the presence of market dominance; in the absence of 
m a r k e t  d o m i n a n c e ,  t h e y  m u s t  f o l l o w  m a r k e t  s t a n d a r d s .  I n  t h e  l a t t e r  c a s e ,  a p p e a l  t o  C o m C o m  i s  o n l y  
possible to ensure interoperability of services forming part of the universal service. In interconnection 
disputes, ComCom has to check if an operator is in a dominant position. In such cases, ComCo must provide 
an opinion to ComCom. The dominance of a provider is  analysed according to th e rules set by the Cartels 
Law. 
Recent or planned changes:  within the last four years ComCom has made decisions on all forms of access 
obligations for the dominant provider foreseen by th e law (see Article 11 of the Telecommunications Act). 
Most of these decisions were the subject of an appeal at the Federal Administrative Court. In some of the 
procedures there was an existing dominant market position of the incumbent in question. 
Number of complaints filed or resolutions effected  of interconnection disputes among operators:  
The incumbent contested its dominant market position in several procedures concerning the following forms 
of providing access: bitstream access, access rebilling (only primary rate access (PRA)) ducts, and leased 
lines. However, ComCo assumed in all its relating decisions a dominant market position of the incumbent. 
The decisions were based on market analysis by the general competition authority and the appeals towards 
the Federal Administrative Court were rejected. Therefore, the incumbent Swisscom (Schweiz) AG is 
generally deemed to be the dominant supplier and oblige d to grant regulated access to the services stated in 
Article 11 of the Telecommunications Act.  
Other regulatory aspects 
Regulatory supervision: ComCom, an independent extra-parliamentar y commission, is responsible for 
regulating the telecoms market, including allocation of spectrum licences (e.g. GSM or UMTS) through open 
tendering, the designation of a universal service provider (by issuing a licence for supply of universal 
services), dispute settlement on interconnection and lo cal-loop unbundling; and for the approval of national 
numbering plans. 
Facility sharing: for reasons of pu blic interest, the Federal Office of  Communications (OFCOM) may require 
providers of telecommunication services to allow joint use of their installations for an appropriate 
compensation. This is particularly relevant for mobile operators. Mobile-concessions include a clause on site 
sharing.  
Local-loop unbundling: unbundling is achieved by offeri ng competing suppliers two options to have access to 
the last mile: (i) the supplier may operate his own fa cilities for broadband an d other services on the 
premises of the dominant supplier. The copper cable between the customer and the connection centre of the 
dominant supplier is simply switched to the new supplier, who provides his/her services exclusively to the 
customer (full unbundling); or (ii) the competing supplier may offer broadband services using a regulated 
bitstream product (i.e. the data line and not the voic e line) for a maximum of four years, with Swisscom 
providing all other services. During the four-year period, the competing supplier must install the necessary 
equipment to be able to offer the other services (bitst ream access). Under both options, prices between the 
competing and the dominant suppliers are freely negotiated.a In case of disagreement, the ComCom 
determines a price based on cost. In the case of a full y unbundled loop, the subscription fee is billed by the 
alternative operator. The subscription fee is billed by  Swisscom only in the case of preselection. To avoid 
this, there's the regulated product of "rebilling of the connection", which allows the alternative operator to 
bill the subscription in representation of Swisscom. Two thirds of the Swiss territory (essentially urban areas) 
is unbundled. The decision to unbundle an area is take n by the operator on purely commercial criteria. The 
most popular option is full unbundling. 
Number portability: Providers must ensure portability of numbers and freedom of choice in the selection of 
suppliers of national and international connections. 
Spectrum management: auction of all mobile frequencies (including the "digital dividend" in the 800 Mhz 
band as well as the 2600 Mhz band).  
Orange, Sunrise, and Swisscom were assigned mobile telephony frequencies in the auction which took place 
in early 2012. The assignment concerned frequencies that were already free or that would soon become free, 
and all those granted to operators in the past (all in all 620 Mhz were offered, of which 575 Mhz were 
allocated). The auction covered the spectrum bands 800, 900, 1,800, 2,100 and 2,600 Mhz. All three 
companies won 20 Mhz in the 800 Mhz band (digital dividend). The frequencies may be used on a 
technology-neutral basis, which means, all mobile radi o technologies (including LTE/4G) can be used in all 
these bands. While fully open the auction did not attract any new entrants or MVNOs.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Transparency: on 1 January 2010, a new Article 10a of the Telecommunications Services Ordinance 
(SR 784.101.1) brought into effect amendments aimed to improve transparency on the cost of roaming 
services. Thus, on concluding a contract, mobile oper ators must inform their customers how and where to 
find information on current rates or tariff options for price reductions. As from 1 July 2010, when customers 
change to a foreign mobile radio network, mobile operators must inform them without delay and free of 
charge of the maximum costs (including VAT) for calls to Switzerland, incoming calls, local calls, sending 
SMS messages or transmitting data (cost per unit of measurement). It must be possible to deactivate or 
reactivate reception of this notification at any time, and free of charge. Mobile operators must inform their 
customers of this option on concluding the co ntract and at least once a year thereafter.  
Accounting rates: not used 
Licensing: Switzerland applies a re gistration ("announcement" regime for telecommunications network and 
service providers. Licensing is only used for the ri ght of use of frequencies and the universal service 
obligation. 
Universal service (beneficiaries, contributors, services covered, level, expenditures, method of calculation 
and management): 
In order to guarantee the universal service (US) in Sw itzerland, ComCom awards a licence based on a public 
invitation to tender, obliging a telecommunication servic es provider to offer the services making up the US. 
On 21 June 2007, ComCom designated Swisscom as th e universal licensee for 10 years. To date, the US 
licensee has not applied for any financial compensation. An eventual compensation would be provided from a 
universal service fund (USF). The decisive factor in calc ulating a provider's fee is its turnover in the services 
provided in the country minus the costs of the teleco mmunications services it has purchased wholesale from 
third-party providers or billed for third parties. 
The content of the US, which is examined periodically by the Federal Council, consists of public telephone 
services (voice, telefax, and internet access at a fixe d location), emergency call services, public payphones 
and specific services for disabled persons. Mobile telephony is not part of the universal service. However, the 
US provider may provide US in the form of mobile te lephony, such cases do effectively occur in mountain 
areas. All these services are tagged with a ceiling price. The US licensee must measure, and report yearly, 
on the quality of the services. The latest modificati ons, which concern the broa dband data rate and its 
monthly fee adaptations, entered into force on 1 March 2012. There are no specific regulations on universal 
service and cross-subsidization. 
a While the amendment to the LTC is largely based on the EC's legal framework, this provision giving 
primacy to negotiations is in contrast to EC legislation. 
4.84.  A decision of 5 February 2007 by the Swiss Competition Commission (Comco) stated that 
Swisscom Mobile was found dominant for the mobile voice termination segment. With its 
termination charge of SwF 0.335 per minute it imposed unfairly high prices, to the detriment of 
consumers. For this violation of the Act on Cartels, Comco imposed a fine of SwF 333,365,685 on Swisscom Mobile. In a decision dated 24 February 2010, the Federal Administrative Court revised Comco's decision to "abusive conduct" by Swisscom, and cancelled the fine. Both the Federal 
Department of Economic Affairs and Swisscom have filed appeals against the decision. The Swiss 
Federal Supreme Court stated a dominant position of Swisscom but no abuse of this dominant position, as competitors always had the possibility to ask the National Regulatory Authority (NRA) 
for a price decision.
86 
4.85.  From an economic perspective, the telecom landscape of Switzerland seems largely 
stabilized, with three main providers in each of the main segments (mobile, fixed, and broadband). 
The incumbent Swisscom, 57% owned by the Confederation remains the dominant provider, while 
its competitors are all 100% foreign owned (Box 4.13). 
4.86.  In line with generally observed trends, tari ffs have continued to fall, albeit at a relatively 
slow pace, for the consumer in all three segments (Table 4.7). 
Table 4.7 Telecom tariffs, 2009-11  
 2009 2010 2011 
Fixed-lines national servicesa    
Small user 100.3 100.0 99.3 
Medium user 100.1 100.0 96.6 
Large user 99.5 100.0 91.1 
Mobile servicesa    
Small user 101.4 100.0 98.7 
                                               
86 Decision 2C_343/2010 and 2C_344/2010 of the Federal Court of Switzerland (11 April 2011). 
Database of the Federal Administrative Court. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   2009 2010 2011 
Medium user 103.4 100.0 95.2 
Large user 107.3 100.0 101.4 
Internet services (only broadband 
services)a    
Index of real prices for a medium user 99.9 100.0 94.8 
Annual rate of change  -5.4% +0.1% -5.2% 
Normalized prices indexb 100.7 100.0 63.1 
 
Annual rate of change  -14.3% -0.7% -36.9% 
Interconnection rates   
(monthly charge per line)  17.3 18.4  
(prices offered by 
Swisscom not legally 
valid, no ComCom-
decision yet) 16.6  
(prices offered by 
Swisscom not legally 
valid, no ComCom-
decision yet)  
a Indexed data; 2010=100. 
b Normalized costs reflect costs for 1 Mbit/s indexed to 100 in 2010. 
Source:  OFCOM (2011), Comparatif et évolution des produits les meilleurs marchés, 2010-2011 , Bienne, 
November; and information provided by the Swiss authorities. 
 
Table 4.8 Mobile roaming rates (wholesale and retail)  
Service (Prices in SwF per minute/SMS/MB) Q1 2012 
Retail Voice Roaming: calls made – prepaid & post-paid – EU – base: billed minutes 0.774 
Retail Voice Roaming: calls made  – prepaid & post-paid – rest of  world – base: billed minutes 1.790 
Retail Voice Roaming: calls received – prepaid & post-paid – EU – base: billed minutes 0.369 
Retail Voice Roaming: calls received – prepai d & post-paid – rest of world – base: billed 
minutes 1.539 
Retail SMS Roaming: prepaid & post-paid – EU & rest of world 0.354 
Retail Data Roaming: prepaid & po st-paid – EU – group & non-group 0.799 
Retail Data Roaming: prepaid & post-paid – rest of world – group & non-group 2.021 
Wholesale Voice Roaming: EU – base d on billed minutes – non-group 0.318 
Wholesale Voice Roaming: rest of world – based on billed minutes – group & non-group 0.689 
Wholesale SMS Roaming: EU – non-group 0.093 
Wholesale SMS Roaming: rest of world – group & non-group 0.122 
Wholesale Data Roaming: EU – group & non-group 0.330 
Wholesale Data Roaming: rest of world – group & non-group 0.691 
Source: Information provided by the Swiss authorities. 
4.4.2.2  Liechtenstein 
4.87.  The telecommunications sector in Liechtenstein is governed by the applicable EEA law.87 
Box 4.14 below describes the main economic indicators and the regulatory regime. 
Box 4.14 Market structure and regulatory of  Liechtenstein's telecommunications sector, 
2012  
Economic data 
Main actors 
Number of companies providing value added telecom services: 3 (Telecom Liechtenstein AG, mobilkom 
(Liechtenstein) AG, and IP Communications GmbH) 
Name and market share of the leading company for fixed telecom services: Telecom Liechtenstein AG 
(85% market share).  
                                               
87 See Annex XI to the EEA Agreement.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Name and market shares of the leading companies for mobile telephones services: three leading mobile 
phone companies, all operating separate networks, mobilkom (Liechtenstein) AG (52% market share); 
Telecom Liechtenstein AG (MVNO partner of Orange (Liechtenstein) AG, 27% market share); and 
Swisscom (Schweiz) AG (21% market share). Swisscom Schweiz (AG) and Orange Communications SA 
have a significant number of cross-border custom ers who subscribe to the Swiss mobile networks. 
Foreign ownership participation in telecom companies: Orange (Liechtenstein AG), Swisscom (Schweiz) 
AG, and mobilkom (Liechtenstein) AG are 100% foreign owned. 
State ownership: Liechtensteinische Kraftwerke owns  the major part of the co mmunication network, and 
is 100% state owned. Telecom Liechtenstein AG is also 100% state owned.  
Penetration rates (2011)  
Total population       36,475 
ISDN subscribers       6,652 
Main (fixed) telephone lines in operation    18,796 
Main (fixed) telephone lines/100 inhabitants   52 
Mobile cellular telephone subscribers (digital)   37,239 
Mobile cellular telephone subscribers/100 inhabitants  106 
Internet subscribers       14,532  
Tariffs (evolution of tariffs since the last TPR (2009))  
For local services: stable tariffs  
For international services: stable tariffs 
For mobile services: decreasing tariffs (regulatory re medies on termination fees, and roaming directive) 
For internet services: stable tariffs, at si gnificant increase of kbit/s performance 
For interconnection rate s: stable tariffs  
Establishment of new companies, mergers or closures since the last Review  in 2012, one mobile 
telephone operator (Alpcom AG) went  bankrupt and was liquidated.  
Regulatory framework  
Recent or planned regulatory changes 
Since the EU telecommunications regulatory framework applies th rough the EEA, Liechtenstein has 
transposed,  inter alia , various EC directives on telecommunications (the Access Directive (2002/19/EC); 
the Authorization Directive (2002/20/EC); the Framework Directive (2002/21/EC); the Universal Service 
Directive (2002/22/EC); and the e-Privacy Directive (2002/58/EC). 
As a result, a new Communication Act entered into force in June 2006.  
In 2007, the corresponding ordinances of the Co mmunication Act entered into force (Ordinance 
concerning the Responsibilities and Powers of the Regulatory Authority in the field of Electronic 
Communication of 3 April 2007, Ordinance concerning Electronic Communications Networks and Services 
of 3 April 2007, Ordinance concerning Means of Identifi cation and Frequencies in the field of Electronic 
Communication of 8 may 2007, Ordinance about Levy of Usage and Administration Fees by the 
Communication Act of 13 April 2004 (Revision), the Liechtenstein Numbering Plan referred to ITU-T E.164 
of 3 April 2007 and Ordinance concerning Radio Equi pment and Communications Terminal Equipment of 
3 April 2007). 
The Communication Act was revised in 2010 due to ch anges in the legal field as well as technical 
advancement in electronic communication. Other reasons for the revision were, inter alia , the protection 
of users and the fight against the abuse of call numbers. In the same year, the main part of the 
corresponding ordinances was also revised. 
Another revision of the Communication Act began in 2012, inter alia , in order to transpose amendments of 
the new telecom package directives  2009/140/EC and 2009/136/EC into national law.  
Interconnection 
Telecom Liechtenstein AG  and Liechtensteinische Kraftwerke are obliged to make their infrastructure and 
services available to other enterprises in a neut ral, non-discriminatory, and cost-based manner. 
Interconnection regulations are based on the releva nt EC principles. Neither Telecom Liechtenstein AG  nor 
Liechtensteinische Kraftwerke enjoy any exclusive rights.  
Competition policy   
Market analysis/enquiries: In 2009-12, the Office for Communications conducted several market analyses 
on the markets for access to public telephone network at fixed locations ("M1"), call origination and 
termination on fixed networks ("M2" and "M3"), network infrastructure access at fixed locations ("M4"), 
broadband ("M5"), terminating segments of leased lines (wholesale market; "M6"), trunk segments of 
leased lines (wholesale market) and mobile termination ("M7"). The Office for Communication finalized the 
market analysis for M6 as defined by the EFTA surveillance authority in the recommendation of 
5 November 2008, concluding that there was no dominant position in M6.  
Dominant suppliers: the Office for Communications identified Telecom Liechtenstein AG (in M1, M2, M3, 
M5, M7), Liechtensteinische Kraftwerke (in M4) as well as the mobile phone operators (M7) as carriers 
with significant market power, and applied specific regulatory remedies under the new Communication Act 
of June 2006. In the wholesale market of leased lines, comprising trunk as well as terminating segments, 
effective competition prevails and no measures of spec ial regulation are required in the sense of an ex 
ante regulation. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 111 - 
 
  Other regulatory aspects 
Regulatory supervision: the Office for Communications ( http://www.llv.li/amtsstellen/llv-ak-
englishpage.htm ) 
Facility sharing and local-loop unbundling: both serv ices are offered by Liechtensteinische Kraftwerke to 
registered telecom service providers at transparen t, cost-oriented, non-discriminatory conditions, 
according to the reference unbundling  offer, which was authorized by th e Office for Communications in the 
framework of the M4 market analysis. 
Number portability: Not implemented. A consultati on conducted by the Offi ce for Communication in 
June 2012 resulted in low interest from the alternative providers in Liechtenstein.  
Spectrum management: Liechtenstein Frequency Allocation Plan (FAP) consists of several parts including 
the radio spectrum strategy. Integral components of the plan are: frequency ra nges and radio interface 
requirements, as well as ot her rules and restrictions for the use of the appropriate frequency range.  
The technical and operational requirements of the frequency use in Liechtenstein create a transparent and 
comprehensive picture which reflects the components of  the R&TTE directive of the European Union. This 
is important for the users themselves, but above a ll for the manufacturers and distributors of radio 
devices. 
The FAP complies fully with the ITU (International  Telecommunication Union) and the CEPT (European 
Conference of Postal and Telecommunicati on administrations) recommendations ( http://www.llv.li/pdf-llv-
ak-frequenzzuweisungsplan.pdf ). 
Mobile interconnection: the mobile operators are inte rconnected to Telecom Liechtenstein AG only. Mobile 
interconnection charges are agreed between operators.  The mobile termination fees are regulated as a 
result of the M7 market analysis, by a phased reduction of price caps ending at SwF/min 0.0765 as of 
1 January 2013. 
Mobile roaming rates (wholesale and retail): Regulation No. 531/2012 was approved in October 2012 by 
the Liechtenstein Parliament, and the Communication Act is to be revised for the implementation of 
sanctions. 
Accounting rates: not used 
Licensing: The 2006 Communication Act eliminated the licence system. All activities in the area of 
electronic communication are licence-free; a notificati on to the Liechtenstein Office for Communications, 
the national regulatory authority, is required. 
Universal service: provided by Telecom Liechtenstein AG 
4.4.3  Transport 
4.4.3.1  Switzerland 4.4.3.1.1  Air transport 
4.88.  Switzerland is a relatively important market for aviation services due to its high per capita 
income, the importance of its inbound and outbound tourism, and the size of business market. 
4.89.  The market access regime is liberal for the selling and marketing of air transport services, 
computer reservations services, and aircraft repair and maintenance (the three sectors explicitly 
covered by the air transport annex of the GATS), as reflected in the GATS revised offer, and as 
bound by the commitments contained in the free-trade agreements schedules.  
4.90.  The situation is similar for ground handling services, where the EU rules apply through the 
bilateral air transport agreement of 1999 (see Ta ble A4.4) and where third-party handling is 
allowed, opened to foreign firms, and indeed ex ercised by some of them. Bilateral air transport 
agreements may, in addition, allow self-handling and mutual handling in certain instances. Major 
airports are concessioned but public authorities may retain a majority of the shares if they so wish. 
In general aviation, taxi flights are covered by the general regime of commercial air transport. Aerial work is considered a non-air-transport oper ation, hence it is covered by the general regime 
of services (technical and operational rules specific to aviation are applicable). This is illustrated by 
the fact that the reciprocal opening of the market  (for 90 effective days of operation between the 
EU and Switzerland), which covers aerial work, is based upon the chapter on services of the 
bilateral agreement on the free movement of persons. Box 4.15 below details further the main 
economic indicators and the regulatory regime of these various air transport services. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 112 - 
 
  Box 4.15 Switzerland's market and regulatory  regime for air transport subsectors, 2012  
Computer reservation services  
General regulatory framework: there is  no regulation granting a monopoly  or prescribing the compulsory use 
of a CRS supplier. Switzerland applies EC Regulation 80/2009a 
Economic characteristics: all CRS providers may operate as long as they comply with EU Regulation 80/2009. 
This does not imply that they ha ve a local branch established. 
Selling and marketing of air transport services  
General regulatory framework: there are no specific regulations (including fo reign exchange controls) 
preventing or limiting the sale by foreign airlines of their own tickets through whatever channel (online, 
airports counters, city offi ces). This is not affected by individu al provisions of bilateral agreements. 
Aircraft repair and maintenance 
General regulatory framework: no specific limita tions on the establishment of foreign providers 
Number of certified repair stations: 9 repair stations certified by the Federal Aviation Administration (FAA), 
and 78 by the European Aviation Safety Agency (EASA) 
Ground handling services 
General regulatory framework: Switze rland applies EC Regulation 97/67b 
Bilateral agreements may contain clauses granting specif ic rights to the carriers of the countries concerned 
Main providers:  Zurich: Swissport, Dnata, and Airline Assistance Switzerland for passenger handling; Dnata 
and Cargologic for cargo handling (all Swiss compan ies or branches), Geneva: Swissport, Dnata for 
passenger handling; Customer Ground Services and Air Cargo Logistic for cargo handling (all Swiss 
companies or branches) 
Airport management services 
General regulatory framework: concessi oned airports are managed by publ ic or private entities (even for 
private entities, the majority of the capital may be in public hands) 
Economic characteristics: international airports (with line and charter traffic) are: Zurich (passengers: 
24,376,142; cargo tonnes: 283,422); Geneva (passengers: 13,048,960; cargo tonnes: 31,427); Basle 
(passengers: 5,043,469; cargo tonnes: 41,280); Berne (passengers: 169,765); Lugano (passengers: 
165,054; cargo tonnes: 71); Altenrhein (passengers: 98, 834); and Sion (passengers: 6,815). Total domestic 
traffic 662,886 passengers (start from departure airport and arrival at destination airport count as 
1 passenger).c 
Commercial aviation 
General regulatory framework: 
National establishment rules: in line with EU regulation 1008/2008d 
Cargo: no specific policy  
Charter: Switzerland applies EC Regulation 1008/2008e, thus charter traffic is not discriminated and is based 
on the principle of reciprocity. Low-cost  carriers do operate from Switzerland. 
Domestic traffic: Domestic traffic is limited in principle to Swiss operators unless it has been agreed 
otherwise in the bilateral ASA: Such an opening has been negotiated but not finalized between Switzerland 
and EU.  
Slot allocation: in line with EU regulation 96/97f 
a Http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:035:0047:0055:EN:PDF . 
b Http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31997L0067:en:NOT . 
c All figures 2011, general aviation not included. 
d Http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:293:0003:0020:en:PDF . 
e Http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:293:0003:0020:en:PDF . 
f Http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31996L0097:EN:HTML . 
Source: Information provided by the Swiss authorities. 
4.91.  Regarding commercial aviation Switzerland is in the relatively rare situation where its 
national carrier, Swiss, is majority owned by a non-Swiss national. In such cases, Switzerland has nevertheless managed to preserve the traffic rights either by negotiating the replacement of a 
substantial ownership and effective (SOE) control clause by a "principal place of business" clause 
in its bilateral agreements, or by negotiating waivers to the SOE clause. This is reflected in Table 4.9, which describes the new agreements or amendments to existing bilateral air services 
agreements since 2005. Detailed data on Switzerland's aeropolicy until 2005 are contained in the WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 113 - 
 
  "QUASAR profile" of Switzerland.88 In 2005, Switzerland's air liberalization index (ALI), weighted 
by passenger traffic (WALI), stood at 9.8. The ALI of the agreements covered by QUASAR ranged between 0 and 41.
89 
4.92.  Since 2005, around 40 agreements have been either amended, initialled, concluded or have 
entered into force between Switzerland and its partners. About half of the new agreements have 
been concluded with countries other than thos e listed in the 2005 QUASAR profile, primarily 
Eastern European economies and former Soviet republics.  
4.93.  Switzerland's recent bilateral agreements are notably more liberal than those in its 2005 
QUASAR profile. Except for one, they all have an ALI value equal to or above 18, and around. Half of the agreements have an ALI of 24 or higher; one third have an ALI of 35 or higher. 
Table 4.9 Air services agreements
 
(a) Bilateral air services agreements 
Partner Date Entry into 
force 
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 2011j 
ALI 2005 
Afghanistan  
(new ASA initialled) 27/09/61   yes  no no yes M PPoB DD PD yes  27 8 
Albania 09/05/07 02/11/07 yes no no yes M PPoB DD FD yes 35 - 
Algeria 18/06/63   no  no no no S SOE DA othe r yes  2 2 
Argentina 02/11/04   yes no no yes M PPoB DD PD yes 27 10 
Armenia 10/11/09 01/06/11 no  no no yes M PPoB DD PD yes  21 - 
Australia 28/10/11   yes no no yes M PPoB DD FD yes 35 6 
Austria 19/12/49   yes  no no no M SOE DA B1 yes  14 14 
Azerbaijan 09/10/07 30/11/10 yes no no yes M PPoB DD B1 yes 31 - 
Bahrain  
(new amendments initialled) 04/02/86   yes
 no no yes M PPoB DD FD yes  35 6 
Barbados 27/10/09   yes no no yes M PPoB DD PD yes 27 - 
Belgium 24/03/60   no  no no no S SOE DA B1 yes  4 4 
Benin 06/11/75   yes no no no S SOE DA B1 yes 10 10 
Bolivarian Rep. of 
Venezuela 09/08/91 10/03/93 no  no no no S SOE DA PD yes  0 - 
Bolivia 26/02/97   yes no no no S SOE CoO PD yes 9 9 
Bosnia & Herzegovina 
(new ASA initialled) 06/03/98 19/11/02 yes  no no yes M PPoB DD FD yes  35 - 
Brazil  
(new ASA initialled) 27/07/78   yes no no no M PPoB DD PD yes 24 6 
Brunei Darussalam 22/11/94   yes  no no no S SOE DA PD yes  6 6 
Bulgaria 11/05/05 06/01/08 yes no no yes M PPoB DD FD yes 35 - 
Burundi 10/01/74   yes  no no no S SOE DA B1 yes  10 10 
Cambodia 06/02/07 06/02/07 yes no no no M PPoB CoO B1 yes 25 - 
Cameroon 13/01/09 23/11/10 no  no no yes M PPoB DD B1 yes  25 0 
Canada 17/05/06   yes no no yes M SOE DA FD yes 21 8 
Cape Verde 14/12/98 14/12/98 no  no no no S SOE CoO B1 yes  7 - 
Central African 
Republic 09/03/73   yes no no no S SOE DA B1 yes 10 10 
Chile 22/07/04 29/09/05 yes  no no no M PPoB DD FD yes  32 11 
                                               
88 WTO document S/C/W/270/Add.1, "QUASAR profile" of Switzerland, pp. II.479 to II.487.  For more 
details on the QUASAR methodology, see document S/C/W/270/Add.1, pp. I.9 to I.21. 
89 The ALI ranges from 0 (classical "Bermuda II" ag reements) to 50 (full co mmon aviation market). WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 114 - 
 
  Partner Date Entry into 
force 
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 2011j 
ALI 2005 
China 01/03/11   Yes no no yes M PPoB CoO PD yes 24 6 
Colombia 17/08/00   yes  no no yes S SOE DA B1 yes  13 10 
Congo 24/10/64   yes no no no S SOE DA B1 yes 10 10 
Congo, Dem. Republic 
of 03/02/75   yes  no no no S SOE DA PD yes  6 6 
Côte d'Ivoire 14/05/69   yes no no no S SOE DA PD yes 6 6 
Croatia 21/01/10 25/10/10 yes  no no yes M PPoB DD FD yes  35 - 
Cuba  
(new amendments 
initialled) 14/02/74   yes no no no M PPoB DA PD yes 18 6 
Cyprus 18/01/73   yes  no no no S SOE DA PD yes  6 6 
Czech Republic 17/07/96   no no no no M SOE CoO other yes 13 13 
Denmar k 14/03/57   yes  no no no S SOE DA B1 no  11 11 
Djibouti 25/03/99 08/07/00 yes no no no S SOE CoO B1 yes 13 - 
Dominican Republic 07/12/00 27/03/03 yes  no no yes M PPoB DA othe r yes  27 - 
Ecuado r 06/05/74   yes no no no S SOE DA other yes 8 8 
Egypt 
(new ASA initialled) 30/07/95 23/12/97 no  no no no M COIk DD B1 yes  18 12 
Equatorial Guinea 30/11/04 30/11/04 yes no no yes M PPoB n/a B1 yes 25 - 
Eritrea 02/04/98 08/06/99 yes  no no no S SOE CoO B1 yes  13 - 
Estonia 20/10/98 21/04/99 yes no no no M SOE DA B1 yes 14 - 
Ethiopia 
(new ASA initialled) 10/02/00 05/06/03 yes  no no yes M PPoB DA B1 yes  25 - 
Finland 19/11/79   yes no no no M SOE DA B1 yes 14 14 
France 30/07/45   yes  no no no S n/a n/a PD no  7 7 
FYR Macedonia 10/11/09 01/03/10 yes no no yes M PPoB DD FD yes 35 6 
Gabon 21/02/05 21/02/05 yes  no no yes M PPoB DD B1 yes  31 2 
Gambia 26/01/94 26/10/09 yes no no no S SOE DA B1 yes 10 - 
Georgia 22/07/08 16/11/10 yes  no no yes M PPoB DD FD yes  35 - 
Germany 10/04/72   yes no no no S SOE DA PD yes 6 6 
Ghana 30/08/10   yes  no no yes M PPoB DD PD yes  27 10 
Greece 26/05/48   yes no no no M SOE n/a B1 no 15 15 
Guatemala 27/02/74 08/04/78 yes  no no no S SOE DA B1 yes  10 10 
Guinea 01/02/63   yes no no no S SOE DA B1 yes 10 10 
Hong Kong, China 26/01/88   no  no no no M PPOBl DA PD yes  12 12 
Hungary 28/03/72   yes no no no S SOE DA PD yes 6 6 
India 02/05/01   yes  no no no M SOE CoO PD yes  13 13 
Indonesia 14/06/78   yes no no no S SOE DA PD yes 6 6 
Iran, Islamic Rep. of 31/12/72   yes  no no no S SOE DA PD yes  6 6 
Iraq 01/04/62   yes no no no M SOE DA B1 yes 14 14 
Ireland 07/11/57   yes  no no no M SOE DA B1 no  15 15 
Israel (initialled) 24/07/70   yes no no yes M PPoB DA B1 yes 25 10 
Italy 04/06/56   no  no no no M SOE DA PD yes  4 4 
Jamaica  
(new ASA initialled) 07/11/74   yes no no yes M PPoB DD FD yes 35 10 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 115 - 
 
  Partner Date Entry into 
force 
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 2011j 
ALI 2005 
Japan 05/10/93   yes  no no no S SOE DA othe r yes  8 8 
Jordan 28/04/03 18/09/05 yes no no no M PPoB DD B1 yes 28 10 
Kazakhstan 05/08/93 12/08/97 no  no no no S SOE DA B1 yes  4 - 
Kenya 03/12/04 23/12/05 yes no no yes M PPoB DD FD yes 35 6 
Korea, Dem. People's 
Rep. of 16/06/95 20/03/97 yes  no no no S SOE CoO B1 yes  13 - 
Korea, Rep. of 15/12/75   yes no no no S SOE DA B1 yes 10 10 
Kosovo 30/11/10 08/02/11 no  no no yes M PPoB DD PD yes  21 - 
Kuwait 28/06/10  yes no no yes M PPoB DD FD yes 35 10 
Kyrgyz Republic 25/10/02 30/03/06 no  no no yes M PPoB DA FD yes  23 - 
Lao People's Dem. 
Rep. 15/12/99 27/12/04 yes no no no M SOE CoO B1 yes 17 - 
Latvia 21/05/93   yes  no no no S SOE DA PD yes  6 6 
Lebanon 10/06/03 22/12/04 yes no no yes M SOE CoO FD yes 24 13 
Liberia 31/08/61   yes  no no no M SOE DA B1 yes  14 14 
Libyan Arab 
Jamahiriya 21/08/05 21(08/200
5 yes no no yes M PPoB DD other yes 33 - 
Lithuania 08/07/94   no  no no no S SOE DA PD yes  0 0 
Luxembourg 09/04/51   yes no no no S SOE DA B1 no 11 11 
Macao, China 05/09/95   no  no no no S PPoB CoO PD yes  11 11 
Malaysia  
(new amendments 
initialled) 06/09/68   yes no no no S PPoB DA B1 yes 18 10 
Maldives  
(new amendments 
initialled) 25/10/93   yes  no no no S PPoB DA othe r yes  20 12 
Mali 27/06/81 04/10/89 yes no no no S SOE DA B1 yes 10 - 
Malta 04/10/77   yes  no no no S SOE DA PD yes  6 6 
Mauritania 13/03/79   yes no no no S SOE DA PD yes 6 6 
Mauritius  
(new ASA initialled) 14/11/79   yes  no no yes M PPoB DA PD yes  21 6 
Mexico  
(new ASA initialled) 22/11/78   yes no no yes M PPoB DA PD no 22 7 
Mongolia 03/03/00 03/03/00 yes  no no no M SOE CoO B1 yes  17 - 
Morocco 23/06/11 23/06/11 yes no no yes M PPoB DD FD yes 35 6 
Myanma r 31/10/60   yes  no no no S SOE DA B1 no  11 11 
Netherlands 01/11/62   yes no no no M SOE DA B1 no 15 15 
New Zealand 08/09/99   yes  no no yes M PPoB DD FD yes  35 41 
Nigeria 12/09/80 19/11/81 no no no no S SOE DA PD yes 0 6 
Norway 04/06/57   yes  no no no S SOE DA B1 no  11 11 
Oman  
(new amendments 
initialled) 27/09/86   no no no yes M PPoB DD FD yes 29 0 
Pakistan 10/03/01 11/11/02 yes  no no no M PPoB DD FD yes  32 8 
Panama  
(new ASA initialled) 21/04/64   yes no no no M PPoB DA B1 yes 22 14 
Paraguay  
(new ASA initialled) 05/06/85   yes  no no no M PPoB DA PD yes  18 6 
Peru 23/11/56   yes no no no S PPoB DA B1 yes 10 10 
Philippines 10/07/74   yes  no no no S SOE DA B1 yes  10 10 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 116 - 
 
  Partner Date Entry into 
force 
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 2011j 
ALI 2005 
Poland 05/12/66   yes no no no S SOE DA PD no 7 7 
Portugal 30/08/75   yes  no no no M SOE DA PD no  11 11 
Qatar  
(new amendments 
initialled) 11/07/95   yes no no yes M PPoB DA FD yes 29 6 
Romania 10/11/08 08/01/10 yes  no no yes M PPoB DD FD yes  35 6 
Russian Federation  
(new amendments 
initialled) 02/09/93 11/07/97 yes no no no S PPoB DA B1 yes 18 6 
Rwanda 21/01/74   yes  no no no S SOE DA PD yes  6 6 
Saudi Arabia, Kingdom 
of 04/07/09   yes no no yes M PPoB DD PD yes 27 10 
Senegal  
(new ASA initialled) 23/01/63   yes  no no yes M PPoB DA PD yes  21 6 
Serbia 31/05/02 28/08/03 no no no no M SOE DD B1 yes 14 6 
Seychelles 02/11/95   yes  no no no S SOE CoO PD yes  9 9 
Singapore 09/12/83   yes no no yes M PPoB DD FD yes 35 10 
Slovak Republic 13/11/97   yes  no no no S SOE DA PD yes  6 6 
Slovenia 04/12/92   yes no no no S SOE DA PD yes 6 6 
South Africa 08/05/07 07/12/07 yes  no no yes M PPoB DD PD yes  27 6 
Spain 15/10/68   no no no no M SOE DA PD no 5 5 
Sri Lanka 17/04/07 21/02/08 yes  no no yes M PPoB DD FD yes  35 10 
Sudan 04/04/83   yes no no no S SOE DA B1 yes 10 10 
Sweden 05/11/68   yes  no no no S SOE DA B1 no  11 11 
Syrian Arab Republic 22/08/03   yes no no yes M PPoB DA FD yes 29 29 
Tanzania 24/05/04 24/05/04 yes  no no yes M PPoB DD FD yes  35 - 
Thailand 18/01/10 03/02/10 yes no no yes M PPoB CoO FD yes 32 12 
Togo 03/12/80   yes  no no no S SOE DA PD yes  6 6 
Trinidad and Tobago 15/12/71   yes no no no S SOE DA PD yes 6 6 
Tunisia 21/05/60   yes  no no no M SOE DA othe r yes  12 12 
Turkey  
(new ASA initialled) 16/02/49   yes no no no M PPoB DA B1 no 23 15 
Uganda 17/04/67   no  no no No S SOE DA n/a no  1 - 
Ukraine  
(new ASA initialled) 21/07/93 25/03/97 no no no no M PPoB DA B1 yes 16 - 
United Arab Emirates  
(new ASA initialled) 13/03/89   yes  no no no M PPoB DA PD yes  18 10 
United Kingdom 21/12/93   yes no no no M SOE DA B1 yes 14 14 
United States 21/06/10 21/06/10 yes  no no yes M PPoB FP FD no  38 28 
Uruguay 
(new ASA initialled) 16/09/60   no no no no M PPoB DD FD no 27 - 
Uzbekistan 14/07/94   yes  no no no S SOE DA PD yes  6 6 
Viet Nam 
(new amendments 
initialled) 06/12/79 20/11/81 yes no no no M PPoB DD PD yes 24 - 
Yemen 19/12/91 31/05/00 no  no no no S PPoB DA B1 yes  12 - 
Zimbabwe 22/02/90 03/09/93 yes no no no S SOE DA other yes 8 - 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 117 - 
 
  (b) Plurilateral air services agreements 
 
Partner Date Entry into 
force 
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 2011j 
ALI 2005 
European Union 21/06/99 01/06/02 yes  yes no yes M PP+SOE  FP FD no 44  39 
 
a A yes indicates that fifth freedom ri ghts, even limited ones, are granted. 
b A yes indicates that seventh freedom rights, even limited ones, are granted. c A yes indicates that cabotage righ ts, even limited ones, are granted. 
d A yes indicates that there are clauses allowing cooperation between airlines, such as code share. e "S" indicates that designation is single, "M" that it is multiple. f Type of withholding clause: Substantial Ownershi p and Effective Control "S OE", Principal Place of 
Business "PPoB" or Community of Interest "COI". 
g Type of pricing clause: Double Approval "DA", Double Disapproval "DD", Country of Origin (CoO), 
Zone Pricing "ZP", Free Pricing "FP". 
h Type of capacity clause: Pre Determination "PD" , Bermuda I, "BI", Free determination "FD", other 
"O". In the case of "Other", please specify. 
i A yes indicates that an exchange of st atistics is foreseen by the agreement. 
j As of 12.10.2012. k The withholding clause is an "EU clause" which has been assimilated to a "COI" for the purpose of 
computing the ALI . 
l The withholding regime is based on a waiver, whic h has been assimilated to "PPoB" for the purpose 
of computing the ALI. 
 
4.94.  Essentially, openness levels have increased because of the inclusion in Switzerland's ASAs 
of clauses on cooperation and code-share, which are typical of modern agreements (present in 
two thirds of new ASAs), and of principal place of business withholding provisions (34 cases). In 
addition, liberalizing the tariff clause from the restrictive "double approval" system to "dual 
disapproval" pricing, and the "free determination of capacity" clauses are goals of all new air 
services negotiations. Differently from the 20 05 QUASAR profile, nearly all new agreements 
contain a "multiple designation" clause. As in 2005, 5th freedom rights are found in the majority of 
the new agreements. 
4.4.3.1.2  Inland transport 4.95.  Box 4.16 describes the main economic indicato rs of inland surface transport in Switzerland. 
Box 4.16 Main economic indicators of inland surface transport
 
Inland surface transport  
Total inland surface freight transport (million tonne/km): 2005: 27,431; 2006: 28,796; 2007: 28,945; 
2008: 29,527; 2009: 26,859; 2010: 28,216 
Modal split of inland surface freight transport (million tonne/km, 2010): road: 17,142; waterways: 100; 
rail: 11,074; total: 28,316 
Total inland surface passenger transport (mi llion passenger/km): 2005: 113,196; 2006: 109,680; 
2007: 111,350; 2008: 111,703; 2009: 113,675; 2010: 115,243 
Traffic volume per vehicle category (million vehicle/km, 2010): buses and motor coaches: 119; vans and 
lorries: 5,730 
Source: Federal Statistical Office, Neuchâtel. 
4.4.3.1.2.1  Road transport 
4.96.  Box 4.17 describes the main economic indicators of road transport in Switzerland. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 118 - 
 
  Box 4.17 Main economic indicators of road transport  
Road transport 
Road freight transport 
Fleet (2010): 348,553 vans and lorries 
Volume (million tonne/km): 2005: 15,453; 2006: 16,337; 2007: 16,900; 2008: 17,262; 2009: 16,924; 
2010: 17,142  
Road passenger transport 
Fleet (2010): 18,800 buses and motor coaches 
Volume (million passenger/km): 2005: 86,023; 2006: 86,160; 2007: 87,492; 2008: 88,525; 2009: 89,930; 
2010: 90,666 
Source: Federal Statistical Office, Neuchâtel. 
4.97.  Road transport accounts for 63% of inland  freight transportation while railways represent 
37% of freight transportation.90 At the geographical centre of Europe and as a transit country, 
notably between Germany and Italy, Switzerland confronts large inflows of international transit traffic, with potential infrastructural bottlenecks due to its mountainous terrain. Therefore, over the last 30 years it has developed a voluntarist policy of transferring road traffic to rail traffic, 
through incentives and infrastructural rail spending, and through regulations and taxation.  
4.98.  The objective of this modal transfer is to  reduce the number of cross-alpine road trips to 
650,000: in 2011, there were 1.258 million cross-alpine heavy vehicles (i.e over 3.5 tonnes) trips. 
The domestic conditions of establishment and operation are liberal, as are the bilateral agreements 
with third countries outside EU, relatively speaki ng (i.e. compared to average European bilateral 
agreements following the ECMT model agreement). 
4.99.  The main recent regulatory change regarding road transport was the 20 March 2009 federal 
law on road transport companies (LEnTR; RS 744.10), which entered into force on 1 January 2010. This law regulates the licencing of road freight and passenger transport companies and carries over the provisions on licensing that existed in the 18 June 1993 law on passenger transport. Box 
4.18 below details further the main economic indicators as well as the regulatory framework of the 
sector. 
Box 4.18 Switzerland's road transport framework
 
Regulatory framework 
Establishment/domestic regulatory frameworka: 
Licensing requirement: operators require a licence (other than a driving licence) in order to establish a national 
road freight business (for transporting dangerous goods or goods for which sanitary assurances are required). 
Licensing criteria: no other criteria than technical, prof essional, and financial fitness and compliance with public 
safety requirements. 
Capacity regulation: the regulator does not have any power to limit industry capacity through licences or 
otherwise. 
Pricing: professional bodies or representatives of trade and commercial interests are not involved in specifying 
or enforcing pricing guid elines or regulations. 
 
The retail prices of road freight services are not in  any way regulated by the Government nor does the 
government provide pricing guidelin es to road freight companies. 
International regulatory framework : 
Bilateral agreements: 50 bilateral agreements, with provisions significantly more liberal than average European 
bilateral agreements following the ECMT model agreement.b For a full list and the text of these agreements see 
http://www.wto.org/english/tratop_e/serv_e/tran sport_e/transport_land_e.htm, lines 735 to 784c 
                                               
90 However for purely cross-alpine traffic, the figures are virtually inverted: 64% for rail and 36% for 
road. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Switzerland-EU agreement: the agreement between the EU and Switzerland entered into force on 1 June 2002. 
Its core provision is the commitment by Switzerland to raise erga omnes  - not only for the sole benefit of the 
European Union - the maximum permis sible weight of vehicles from 28 to  40 tonnes, in exchange for EU 
recognition of the legality of a fee on heavy vehicles that is non-discriminatory, a function of the distance 
travelled, the weight and emission class of the vehicle, and intended to encourage the transfer of traffic 
(particularly transit traffic) to the railways and to co ntribute to the financing of the cross-Switzerland rail 
infrastructure. The agreement also liberalizes road transport between the EU member states and Switzerland, 
and opens up the market for transport between EU member states ( grand cabotage ) to Swiss carriers. At the 
same time, cabotage in the strict sense of the word (i .e. road transport within Switzerland or within an EU 
member state) was not liberalized. Th e agreement provides for mutual reco gnition of the licences needed to 
gain admission to the occupation, general harmonization of technical standards, and coordination of transport 
policies, in particular on combined rail-road transport. The EU-Switzerland agreement does not affect triangular 
quotas for freight or existing cabota ge rights for passenger transport. 
a OECD Survey of Indicators of Regulation in Energy, Transport and Comm unications. Viewed at: 
http://www.oecd.org/dataoecd/47/29/42480612.xls  (data on road freight are available only in 
English), quoted in WTO document S/C/W/324, pp. 57-59. 
b According to a World Bank Study "Review of bilateral road freight transport agreements 
(Quantitative Analysis of Road (Freight) Transpor t Agreements – QUARTA Freight )", mimeo. 
c Two new agreements have been concluded since the last update of this database in 2008, one with 
Serbia (RS 0.741.619.682), replacing the 1962 agreement with Yougoslavia, and one with Kosovo (RS 0.741.619.475) 
4.100.  Table 4.10 details the quotas allocated for 2010 to Switzerland under the ECMT (European 
Council of Ministers of Transport) multilateral quota system. 
Table 4.10 Road – Breakdown of ECMT basic licences by vehicle environmental category, 
2010  
Participants Base 
2010 EURO III safe lorries EURO IV safe lorries EURO V safe lorries 
Licences Total 
EURO 
III Licences Total 
EURO 
IV Licences Total 
EURO 
V Annual Short 
term Annual Short 
term Annual Short 
term 
Switzerland 135 35 0 35 50 0 50 50 0 50 
 
Source: WTO document S/C/W/324, 29 October 2010.  
4.4.3.1.2.2  Rail transport 
4.101.  Switzerland has a very developed railway network connected internationally, including to 
high speed lines (Table 4.11). In addition to passenger traffic there is significant international 
transit of goods traffic through the Alps, notably between Germany and Italy. The importance of 
railway transport is reinforced by the voluntarist po licy of transfer of a large part of cross-alpine 
road transport goods traffic to rail. 
4.102.  The interurban rail network comprises: 
 Track: 5,697 km (2010) of which 5,630 km electrified, and 2,136 km double-tracked; 
 Gauge: standard (1,435 mm): 3,890 km; 1,000 mm: 1,716 km; and 800 mm: 59,6 km 
 Transport statistics: 437 million passengers (2009); 19,471 million passenger/km (2011); 
61.8 million tonnes (2009), 11,526 million tonne/km (2011). 
4.103.  Unlike many European countries, Switzerl and has never had a regime of public monopoly 
but rather a regime of coexistence between a large public company, SBB-CFF-FFS, and of several 
private companies whose number has diminished over time through mergers. Switzerland has 
developed mutual access to network legislation policy comparable mutatis mutandis  to that of 
Japan and the United States. More recently, Switzerland has largely transposed into its legislation the first two packages of EU railway liberalization, and has opened its network to EU companies for 
the operation of freight trains. In addition to the three Swiss network-owning companies, several 
foreign railway freight companies, mainly of German nationality (DB Schenker, Transalpin WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Eisenbahn AG, and TX Logistik) have created subsidiaries in Switzerland, obtained authorization to 
access to Swiss network, and the relevant safety certificate.  
4.104.  Table 4.11 describes the main interurban operators railway ownings of Switzerland. Table 4.11 Main network-owning railway companies in Switzerland
 
Main 
interurban 
railway 
companies Ownership  Network 
(km) Regions and sectors of 
operations Employees  Traffic (passenger and 
passenger km, tonnes and 
tonnes km) 
SBB/CFF/FFS 
(Swiss Federal Railways), SBB Cargo AG Limited company, 
100% owned by the Swiss Confederation 2,982 Infrastructure: whole 
country; international interurban and regional passenger 
and freight transport. 
Urban rail transport (S-Bahn) in several regions 28,586 
(2011)   Passengers: 347.1 million 
(2010)  
Passenger/km: 17,513 million (2010) 
Tonne/km: 13,111 million 
tonnes km 
BLS AG  
BLS Netz AG, 
BLS Cargo AG Limited company, 
Swiss Confederation, 
Berne canton, other 
cantons, private 
shareholders 440 Regional and urban 
passenger transport 
mainly in the Berne and 
Lucerne areas, 
international goods 
transport infrastructure 2,750  Passengers: 52.1 million 
(2008) 
Tonne/km: 2,980 million  
RhB (Rhaetian railways) Limited company 
(Graubünden canton: 51.3%, Swiss Confederation, 
43.1%, private 
shareholders: 4.6%, municipalities: 1%) 366 Interurban passenger and 
freight transport in eastern Switzerland 1,300 
 Passengers: 10.6 million 
(2008) Tonnes: 0.81 million (2008) 
SOB 
(SudÖstBahn)a Limited company 
Swiss Confederation 
35.2%, cantons: SG: 
19.17%, SZ: 5.79%, 
ZH: 3.81%, TG: 
1.8% AR: 0.87%, 
municipalities: 
14.06%, private 
shareholders 18.68% 123 Interurban passenger 
transport in North-eastern 
Switzerland  Passengers: 13.26 million 
(2010) 
Passenger/km: 208 million 
a Turnover of SwF 123.6 million in 2010.  
Source:  Compiled by the Secretariat from inform ation on railway co mpanies' websites. 
4.105.  In regulatory terms, the sector has b een undergoing reform since the end of the 1990s. 
The first reform, which entered into force in Janua ry 1999, transformed SBB-CFF-FFS into a limited 
company still owned by the State; formalized the right of access for any railway company by instituting an arbitration commission; and separated the transport activities of railway companies from their infrastructure activities, from an accounting and an operational point of view. 
4.106.  A second package of reform was divided into  two parts: the first, essentially of a technical 
nature (general regulation of public transport and safety rules and supervisory authority), was adopted in 2005 and the second on 16 March 2012. Parts of this package entered into force on 
1 December 2012 and the rest in summer 2013. The provisions of the new law deal with 
interoperability and safety; reinforcement of the role of the arbitration commission; the financing of protection services; and tendering procedures for concessioning regional passenger traffic.  
4.107.  These new provisions are aligning the Swiss law on the provisions of the first and second 
EU package of liberalization, except for the institution of a body independent from the 
infrastructure manager to allocate the paths. For now, paths for most of the Swiss network are allocated by Trasse Schweiz AG, a company co-o wned by SBB, BLS, SOB, and UTP (Union des 
Transports Publics). However a commission of experts has been created to identify options 
regarding the independent allocation of paths. Thes e options will be submitted to Parliament by a 
special message of the Federal Council. Transposition of the third EU railways package is also 
envisaged. It foresees the opening to international competition of international passenger 
transport, improves passengers rights, and create s a uniform railway driver permit, and the Swiss 
Government is observing how individual EU member  states are implementing the directives of the 
three packages.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.108.  The main recent regulatory changes in the sector are recapitulated in Table 4.12 below.  
Table 4.12 Railway law  
Law/ordinance Description 
Federal law of 14 December 1990 on direct federal 
tax (LIFD, RS 64211)  Extends the fiscal exemption of SBB-CFF-FFS to all 
private railways companies  
Federal law of 19 December 2008 on the transfer 
from road to rail of heavy freight transport through 
the Alps (LTTM; RS 740.1) Sets the date of the objective of 650,000 maximum 
road trips to two years after the entry into service of 
the Saint Gothard base tunnel, and allows the Federal 
Council to conclude international agreement to 
institute a transit stock exchange where the right to 
cross the Alps would be auctioned  
Ordinance of 25 November 1998 on access to railways network (OARF; RS 742.122)  Creates the possibility to auction the paths when 
offers are equivalent and se ts the parameters of the 
pricing of the paths including environmental bonuses 
Federal law of 20 March 2009 on passenger transport 
(LTV; RS745.1) Foresees that the Confederation and the cantons may 
conclude with the railway companies pluri-annual 
conventions with a bonus-malus  system based on the 
quality of services and on financial indexes. It also 
sets the conditions of the Confederation guarantee in 
case of investments in the transport sector by the 
railways companies and foresees the corresponding 
budgetary allotment  
Ordinance of 4 November 2009 on passenger 
transport (OTV; RS 745.1) Sets the principle and the parameters of the 
concessioning system for passenger transport 
 
4.4.3.2  Liechtenstein 
4.109.  The Office for Economic Affairs is responsible for regulating the transport subsector and 
applies the relevant EEA law.91  
4.4.3.2.1  Road freight and passenger transport services 
4.110.  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.  
4.111.  Liechtenstein also applies the Swiss Heavy Vehicle Fee. Road freight and passenger 
transport carriers require a permit issued by the Office for Economic Affairs: specific criteria must be met on, inter alia , reliability, financial standing, qualification, and business establishment. In 
addition, carriers need a special licence issued by the Office for 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.  
4.112.  Public transport throughout the country is offered by the government-owned 
Verkehrsbetrieb LIECHTENSTEINmobil, which receives subsidies for its services.  
4.113.  As part of a comprehensive strategy to increase the public offer for passenger transport, 
the Liechtenstein Government transformed the Liecht enstein Bus Anstalt (LBA) into a public entity 
with an enlarged mandate. Besides the planning, organization, and marketing of public transport by bus, the new mandate includes responsibilities  for local cross-border passenger transport by 
train. This new transport company, Verkehrsbetr ieb LIECHTENSTEINmobil, has the competence to 
conclude contracts with service providers in these different fields and to enter into cooperation agreements with transport networks from neighbouring regions.  
4.4.3.2.2  Rail transport services 
4.114.  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.  
                                               
91 See Annex XIII to the EEA Agreement.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.115.  With the aim of increasing the use of the railway track through Liechtenstein for local 
cross-border passenger transport, and to promot e such use as part of a comprehensive public 
transport policy, Liechtenstein amended its Railway Act in order to transpose the relevant EEA legislation into national law. In accordance with EU directive 91/440/EWG, the new law provides 
for the separation of the management of railway op eration and infrastructure from the provision of 
railway transport services, coupled with the principle of free access to the infrastructure by different railway undertakings. It also fully implements EU directive 2007/58/EG.  
4.4.3.2.3  Air transport services 
4.116.  Liechtenstein does not have an airport, but has a privately 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 conflict with EEA ru les. Liechtenstein became a member of the 
European Aviation Safety Agency (EASA) in June 2006. 
4.4.4  Other  
4.4.4.1  Postal services 
4.117.  The Swiss postal sector is undergoing stru ctural reforms, partially aimed at maintaining 
"euro-compatibility". Several modifications were ma de to the legislation during the review period. 
On 22 April 2009, the scope of the reserved area was reduced to letters weighing less than 50 g 
(modification of the 26 November 2003 postal or dinance, RO 2009 1665). The Postal Ordinance 
was fully re-organized on 29 August 2012 (RO 2012 5009) (Box 4.19).  
Box 4.19 Market structure and regulatory framework of Switzerland's postal subsector, 
2012
 
Economic indicators 
Turnover: Swiss Post: SwF 8.6 billion (SwF 7.5 billion in Switzerland), rest of the subsector: SwF 196.6 million  
Employment: Swiss Post: 61,600 (51,700 in Switzerland), rest of the subsector: 3,100 (expressed in full-time 
equivalents)  
Regulatory framework 
Governmental authority: Federal Department of the Environment,  Transport, Energy and Communications 
(DETEC). At the federal level, the DETEC is responsibl e for the basic provision of infrastructure, goods, and 
services, which should be of good quality and available at affordable prices, on th e same terms and conditions 
throughout Switzerland, to its entire  population and all its regions. The General Secretariat of the DETEC on 
behalf of the Federal Council represents the shareholder interests of Swiss Post, together with the Federal 
Department of Finance (www.uvek.admin.ch)  
Regulatory authorities: Postal Services Commission (PostCom)  
The new postal legislation (2010), established PostCo m as the new independent regulatory authority from 
1 October 2012, replacing the Postal Regulatory Auth ority (PostReg) and the Post Office Commission 
(http://www.postcom.admin.ch/en/index.htm) 
Designated operator: Swiss Post is the sole operator responsible fo r universal service, in accordance with the 
Posta l Law (PL) of 30 April 1997 . Swiss Post is an autonomous federal enterprise under public law with its own 
legal identity (RS 783.1 www.admin.ch/ch/f/rs/7/783.1.fr.pdf) . Its corporate name appears in the commercial 
register and is therefore protected throughout the country (www.post.ch).  
Restructuring/postal reform: the PL was amended in 2003 (effective 1 January 2004, OPO; RS. 783.01 
www.admin.ch/ch/f/rs/7/783.01.fr.pdf ); in particular it introduced a mandate for Swiss Post regarding 
infrastructure. Also in 2004, the revised postal ordinance reduced the extent of the monopoly (full liberalization 
of the parcels market), introduced a concession (licence ) system, improved the quality control of and access to 
the universal service, enhanced accounting transparen cy, particularly for avoi ding cross subsidies and 
establishing better control over the universal service, and set up PostReg. In 2006, the scope of the reserved 
area was reduced to letters weighing less than 100 g and in 2009 to 50 g (22 April 2009, RO 2009 1665 
www.admin.ch/ch/f/as/2009/1665.pdf). A 9 November 2011 mo dification of the Postal Ordinance (RO 2011 
5227 www.admin.ch/ch/f/as/2011/5227.pdf), foresees that the Independent Extra-parliamentary Commission 
in charge of assessing access to universal service in a region concerned by a transfer or a closure of a post 
office shall be convoked by the Fede ral Council, and no longer by the Fe deral Department of  the Environment, 
Transport, Energy and Communications (DETEC). In May 2009, the Federal Council submitted to Parliament a 
draft of a complete revision of the Postal Law and of the Law on Postal Organization.  
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  The Swiss Parliament adopted a new Federal Law on Postal Services on 17 December 2010 (FF 2010 8241 
www.admin.ch/ch/f/ff/2010/8241.pdf as well as a new Federal Law on Postal Organization FF 2010 8257 
www.admin.ch/ch/f/ff/2010/8257.pdf). The new legislation (including the respective ordinance) entered into 
force on 1 October 2012. The new provisions deal notably with: 
 (1) definition and financing of postal services and payment servic es belonging to universal service 
 (2) transformation of Swiss Post into a public law limited company 
 (3) suppression of the fisc al advantages of Swiss Post  and of its state guarantee 
 (4) unbundling of the financial services unit, which is to be transformed into a private law limited 
 company and whose activity will be subject to the supervision of the financial market authority 
 (FINMA) 
 (5) regulation of the market of postal services 
 (6) replacement of the concession regime by a notification  obligation imposed on all postal services  
  providers  
 (7) inter-operability rules among postal services providers (postal box access and exchange of data) 
 (8) definition of criteria giving access to reductions  granted for the delivery of certain press products  
 (9) organization of the supervisory authorities for postal regulation  
 
The draft ordinance (www.admin.ch/ch/f/gg/pc/doc uments/2092/OPO_Projet_2012-01-18_fr.pdf) has been the 
object of consultation with interested stakeholders (c antons, political parties, associations, etc. To a great 
extent, the draft ordinance was welcomed by the particip ants in the consultation. Critical remarks were made 
by economic circles, mainly about provisions in the areas of postal services and payment services within the 
universal service, the procedure of no tification for postal services provid ers, the working conditions that are 
customary in the sector, the inter-operability rules and the prohibition of cross-subsidization.  
Universal service: universal service comprises: reserved services and non-reserved se rvices: reserv ed services 
are exclusively provided by Swiss Post  (monopoly). They include the delivery of letters posted in Switzerland or 
originating from abroad and whose weig ht does not exceed 50 g; non-reserved services are services where 
Swiss Post is in competition with private providers. Th ese services, which are subject to a concession regime 
when delivered by private operators, include (a) postal deliveries of letters posted in Switzerland or originating 
from abroad and whose weight is above 50 g, (b) postal delivery destined for abroad, (c) transport of parcels 
up to 20 kg, (d) transport of periodicals and newspapers, (e) payment services. 
Free services are services that Swiss Post may provide in addition to universal service in competition with 
private operators from Switzerland and abroad for instance EMS and Mail Exchange Services 
Services: t he Federal Council determines the scope of postal services. 
Rates: f or the reserved services, Swiss Post sets the prices according to the legal requirements. The Federal 
Council fixes ceiling prices. For the other services, Swiss Post sets the prices of its services itself; these prices 
are subject to the control of Monsieur Prix, but only if Swiss Post still has a dominant market position.  
Financing methods: Swiss Post has to finance its own services. There is no access to the financial markets. The 
Federal Council assigns Swiss Post strategic objectives fo r a four-year period. In parallel with the management 
report, Swiss Post's management board reports to the Federal Council on the implem entation of its objectives.  
Status of personnel: t he status of Swiss Post staff is governed  by the Law on Confederation Staff, which 
entered into force on 1 January 2002. This law is supplemented by a collective labour agreement signed 
between Swiss Post and the trade unions. The new Federal Law on Postal Organiza tion stipulates that 2 years 
after transformation into a public law limited company (foreseen in mid-2013), the staff's contracts will be 
converted into contracts und er private labour law. 
Establishment and level of remuneration: Swiss Post sets its own policy.  
Source: UPU; and information provided by the Swiss authorities  
4.4.4.2  Distribution 
4.118.  Distribution services account for 15.9% of Switzerland's GDP. They are an important 
component of Switzerland's services economy,  and are characterized by two features: the 
importance of wholesale trade, which accounts for nearly twice the value added of the retail sector, partially due to the historic specialization of Switzerland in trading activities; and the high 
concentration of the retail sector, specially of supermarkets and department stores, which is also a 
feature in high level income/comparatively less populated countries of Europe (e.g. Nordic countries). Due to the difference of income per capita with neighbouring countries, the strong the Swiss franc, and comparatively high domestic prices notably for food products, the Swiss retail 
sector is suffering strong competition from neighbouring countries' distributors (so called 
"purchasing tourism"), valued at SwF 4 billion to SwF 5 billion in 2011 (roughly 5% of the turnover 
of the sector). Still, discounters only hold a marginal part of the retail food market (10% versus 
44% in Germany and 50% in Norway). Electronic trade, both the business-to-business and the 
business-to-consumer segments, is progressing rapidly, including on a cross-border basis. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  4.119.  In terms of access, many foreign distributors are present in Switzerland, notably in the 
form of franchises. Access is not subject to economic needs tests but to relatively stringent environmental and zoning requirements at a local level; the average processing time for applications and related construction permits tend s to be longer than the European average. Due 
to the high concentration of the sector, the Competition Commission (Comco) monitors it closely 
including the electronic trade subsector. There are no recent or planned regulatory changes for this 
sector. Box 4.20 details the main market indicators of the sector and its regulatory framework.  
Box 4.20 Switzerland's market and regulatory  framework for distribution services, 2012
 
Economic data 
Main economic indicators  
Number of employees (2011): wholesale: 211,800, retail: 321,300  
Number of companies (2008): wholesale: 19,845, retail: 34,731 
Value added (2010): SwF 91,688 billion, of which wholesale: SwF 57,389 billion; retail: SwF 26,845 billion; 
wholesale and retail trade of vehicles: SwF 7,454 billion 
Share in total GDP (2010): 15.9%, of which wholesale:  9.9%; retail: 4.7%; wholesale and retail trade of 
vehicles: 1.3%  
Share of total employment (2011): wholesale: 5.3%, retail: 8.0%  
Concentration in the supermarket sector: top 2: around 80%, fourth highest degree of concentration in Europe 
(after Norway, Denmark, and Finland) with an Herfindahl-Hirschman index of 0.06 in 2005. 
Average size of hypermarkets: 3,400 m2 (European average 4,400 m2); average size of supermarkets: 639 m2 
(European average 700 m2); share of the discounters: 10% of the turnover of the segment 
Total number of retail outlets: 49,000 
"Traditional" versus "modern" retail sector: chain stores accounted for 55% of employment in the subsector in 
2012 
Density of outlets: (in 2005) 1.2 outlets per km2 and 6.4 per 1,000 inhabitants 
E-commerce: 1.8% of total annual household spendi ng in 2009, i.e. a turnover of SwF 4 billion 
In 2008, 75% of all companies in Sw itzerland used electronic commerce for purchase of merchandise and 
services, whereas 31% sold their products over the Internet.  
In 2001, 2.9% of the procurement expenses of companies using the Internet were spent online (electronic 
commerce intensity); in 2008, 15.1% of the procurement expenses were made online.  
Considering all companies in Switzerland, the intensit y of electronic commerce rose from 1.9% in 2001 to 
7.2% in 2008. In 2010, there were 1,873 secure webserve rs (with SSL certificate) per million inhabitants, 
compared with only 21 in 1998, an increase of almost 9,000% in 12 years. 
Main foreign distributors present on the Swiss market: 200 franchise networks mostly foreign (primarily from 
the US, the UK, and Germany). 
Regulatory framework 
Legislation on exclusive rights or on limitations of number of suppliers: the distribution sector is open, 
excluding services related to goods subject to import authorization, to pharmaceutical products (RS 812.21), 
toxics (RS 813.1), explosives (RS 941.41), weapons and ammunition (RS 514.54), and precious metals 
(RS 941.31). Wholesale trade of alcohols is also subjec t to a licensing system based on good reputation 
(RS 680, Article 40.III).  
Legislation on franchising:  there is no relevant law applicable. The Code of Obligations 
(http://www.admin.ch/ch/f/rs/22.html), especially the gene ral rules on contract law, applies, but it does not 
specifically concern franchise contra cts. All forms of franchise contract s are allowed (single franchise from a 
foreign-owned Swiss subsidiary, single franc hise from abroad, master franchise, etc.). 
Competition legislation:  like for other sectors, me rgers of retailers are examin ed by ComCo/WEKO from the 
point of view of competition, e.g. the conditions atta ched to the absorption of Denner by Migros or to the 
takeover of former Carrefour hypermarkets by Coop. Th e cartel law applies to the distribution sector and 
ComCo/WEKO conducts numerous investigations in the distribution sector, e.g. the 2011 Nikon case on 
attempts to prevent parallel imports, the ASCOPA case  o n  c a r t e l  i n  t h e  l u x u r y  c o s m e t i c  b r a n c h ,  a n d  t h e  
investigation on online trading restrictions (Electrolux - VZug case)  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Zoning/urbanism legislation:  there is no limitation to market a ccess, as such (for instance: two new 
retailers, i.e. Aldi and Lidl from Germany have opened large numbers of shops in recent years, while others, 
like Carrefour from France, have left).  Distribution services are mainly regulated at the cantonal and communal 
level. These regulations deal primarily with land use and environmental aspects (such as the size of parking 
areas next to the stores, to limit the motorized traffic,  including the obligation to receive parking taxes above a 
certain level of traffic) or in some cases also requ irements to locate next to public transportation.  An 
environmental impact study is required for any project above 5,000 m2 or 500 parking spaces. On average, the 
processing time for construction perm its is longer than in many European  countries and hence inferred higher 
costs. 
Authorization procedure and thresholds applic able to the opening of new supermarkets:  cantonal 
and/or municipal enactments provide an authorization procedure for large-scale distribution facilities that may 
lead to rejection of an authorizatio n, on a case-by-case basis, based on environmental, zoning, and urban 
criteria such as traffic, parking spaces, and proximity of bus stops. No economic needs tests or other market 
access/national treatment restrictions, apply (in the GATS sense) or authorization criteria based on commercial 
or competitors considerations. Thresholds may vary; there is no overview of cantonal and municipal 
authorization criteria. The cantonal restrictions on sales areas mentioned in the GATS commitments no longer 
exist as limitations have been reduced to the abov e-mentioned authorization procedures for large-scale 
distributions outlets. 
Source: Information provided by the Swiss authorities. 
4.4.4.3  Tourism 
4.4.4.3.1  Switzerland 4.120.  Tourism is an important component of the Swiss economy. In 2010, the sector employed 
some 144,000 people (full time equivalent), amount ing for 4.1% of total employment; the share of 
tourism in GDP was 2.8%; and Swiss hotels accounted for 35.5 million overnight stays. However 
the strength of the Swiss franc and comparatively high costs and prices have had a negative impact on the number of foreign, and notably European, arrivals in recent years. Nevertheless, 
tourism to Switzerland remains very popular in international markets, with arrivals in hotels 
reaching 8.6 million in 2010, the highest on record. The five leading origin markets of Germany, UK, France, the United States, and Italy together accounted for 4.9 million arrivals or 56% of total 
arrivals. Germany alone accounts for over a quarter of all arrivals and is by far the largest origin 
market. Tourism is regulated at the federal, cantonal, and municipal level. In June 2010, the Swiss Federal Council approved a new growth strategy for tourism, which sets out the major lines of development for the medium- and long-term. Implementation began in 2012. The new national 
tourism policy and its guiding principles are designed to portray Switzerland as an attractive and 
successful tourism destination with a specia l emphasis on sustainability. From 2012, 
implementation of the growth stra tegy will be based on four-yearly programmes. The first of these 
was established in early 2012. Box 4.21 details the main market indicators of the sector and its 
regulatory framework.  
Box 4.21 Switzerland's market indicators and regulatory framework for tourism
 
Tourism in general 
Economic data 
Share of tourism services in GDP: 2.8% 
Number of inbound tourists: 8.6 million,; 29th rank worldwide (2010) 
Inbound tourism expenditures: US$17.8 billion, 16th rank worldwide (2010) 
Number of outbound tourists: 16.5 million (2009) 
Outbound tourism expenditures: US$13.3 billion (2010) 
Numbers of full time employees (2010): 144,351 (4.1% of total employment) 
Regulatory framework 
Level of regulation: federal, cantonal, and municipal 
Legislation on Swiss tourism: Federal Law on the Swiss National Tourism Office of 21 December 1955 
(RS 935.21; http://www.admin.ch/ch/f/rs/c935_21.html ), no recent or planned changes, and ordinance on 
Swiss Tourism of 22 November 1963 (RS 935.211), modified twice since 2008 to transpose the new rules on 
state-owned enterprises governance and in 2010 to include the staff rule s. Updated version available at: 
http://www.admin.ch/ch/f/rs/c935_211.html . 
For an overview of cantonal laws see: http://www.swisstourfed.ch/index.cfm?parents_id=1016  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Legislation on Swiss Society for Hotel Credit (SCH): Federal Law on the encouragement of the sector of 
lodging and hospitality of 20 June 2003 (RS 935.12, http://www.admin.ch/ch/f/rs/c935_12.html), no recent 
changes; and related ordinance of 26 November 2003 (RS 935.121, http://www.admin.ch/ch/f/ 
rs/c935_121.html ), last modified in 2010 to incorporate the staff rules. 
The Federal Law on promotion of innovation, cooperation and knowledge building in tourism (Innotour)  of 
30 September 2011 (RS  935.22 http://www.admin.ch/ch/f/rs/c935_22.html ) and related ordinance of 
30 November 2011 (RS 935.221 http://www.admin.ch/ch/f/rs/c935_221.html ), replacing the law of 
10 October 1997, and the ordinance of 15 October 2003. 
The resources committed to promoting tourism by the Swiss Confederation amounted to SwF 164.5 million in 
2011. Resources were used for Swiss Tourism as well as innovation and cooperation in tourism, production 
of information and documentation, and for Swis s affiliations to international organizations.  
Hotels  
Total number of hotels: 5,477  
Number of nights: 35.5 million (2010) 
Total turnover of the hotel industry: SwF 3.792 billion (2010)  
Total employment in the hotel industry: 35,300 (2010) 
Restaurants  
Number of food and beverage establishments: 21,241 (2008)  
Total turnover of the restaurants industry: SwF 2.533 billion (2010) 
Total employment in the restaurant industry: 38,800 (2010) 
Travel agencies, tour operators, and tourist guides 
Economic data  
Number of travel agencies and other reservation services activities: 2,342 (2008)  
Foreign-owned travel agencies and to ur operators: all major foreign trav el agency networks are established 
in Switzerland 
Total turnover of the travel agencies, tour operators, and tourist guide industry: SwF 1.54 billion (2010) 
Total employment in the travel agencies, tour operators, and tourist guide industry: 11,900 (2010) 
Source: UNWTO Compendium of Tourism Statistics, 2012 Edition; and Swiss Federal Statistical Office. 
4.4.4.3.2  Liechtenstein 
4.121.  Tourist arrivals and nights spent by touris ts in hotels in Liechtenstein had been declining 
since the 1980s, but began to increase again in 2004. About 63,000 nights were spent in hotels in 
Liechtenstein in summer 2011 and 54,900 nights in winter 2010/11. The majority of tourists arrive 
from Germany and Switzerland. Nights spent in all types of accommodation in Liechtenstein declined from 267,800 in 1980 to 166,800 in 2010.  
4.122.  Liechtenstein's marketing regulations are similar to those of Switzerland, except for rules 
governing the acquisition of real estate. Liechtenstein Marketing, a state institution established by the law of 20 October 2011 on the promotion of Liechtenstein as a business and a tourism destination, is the main promotional agency responsible for marketing tourism in Liechtenstein. Its 
activities in business destination, tourism destination, and participation in major events are initially 
financed with a public support of SwF 2,500,000. Additional revenue is derived from the accommodation tax. Certain promotional activities are coordinated with Switzerland. Tourism 
activities are also marketed by local tourism initiatives and the municipalities. 
4.123.  The acquisition of holiday apartments (s econdary residence) above 1,000 m altitude is 
limited to households that are resident in Liechtenstein and have Liechtenstein, EEA or Swiss 
nationality. No more than one secondary residence is allowed per household. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  REFERENCES 
Comco (2011), Annual Report, 2010 . Viewed at: 
http://www.weko.admin.ch/org/ 00143/index.html?lang=en . 
European Union (2012),  Innovation Union Scoreboard 2011 . Viewed at: 
http://ec.europa.eu/enterprise/policies/innovation/files/ius-2011_en.pdf . 
Federal Department of Finance (2008), Rapport 2008 sur les subventions , May. Viewed at: 
http://www.efd.admin.ch/dokumentation /zahlen/00578/01238/index.html?lang=fr . 
Federal Department of the Environment, Tr ansport, Energy and Communications (2011), Evolution 
des prix de l'électricité en Suisse, Bern. 
Federal Electricity Commission (2012), Report on the activities of ElCom 2011 . Viewed at: 
http://www.elcom.admin.ch/dokumen tation/00017/index.html?lang=en . 
Federal Office for Agriculture (2011), Rapport agricole 2011 . Viewed at: 
http://www.blw.admin.ch/dokumentati on/00018/00498/index.html?lang=fr . 
Federal Office for Agriculture (2012), Rapport agricole 2012 . Viewed at: 
http://www.blw.admin.ch/dokumentati on/00018/00498/index.html?lang=fr . 
IEA (2012), Energy Policies of IEA Countries - Switzerland , Paris. 
INSEAD-WIPO (2012), The Global Innovation Index 2012: Stronger Innovation Linkages for Global 
Growth. Viewed at:  
http://www.wipo.int/export/sites/www/freepublications/en/economics/gii/gii_2012.pdf . 
Liechtenstein Office of Statistics (2011),  Liechtenstein in Figures, 2012 . Viewed at: 
http://www.llv.li/pdf-llv-as-liechtenstein_in_figures_2012 . 
OECD (2012), Agricultural Policy Monitoring and Evaluation 2012: OECD Countries , "Switzerland". 
Viewed at: http://www.oecd.org/tad/agricultura lpoliciesandsupport/agricultura lpolicymonitoringandevaluation
2012oecdcountries.htm  . 
SECO (2008), The Strategic Focus of Swiss Foreign Economic Policy. Viewed at: 
http://www.seco.admin.ch/themen/0 0513/00514/inde x.html?lang=en . 
Swiss National Bank (2009), Swiss Balance of Payments 2008 . Viewed at: 
http://www.snb.ch/en/mmr/refer ence/balpay_2008/source . 
Swiss National Bank (2012a), Direct Investment 2011 . Viewed at: 
http://www.snb.ch/en/mmr/r eference/fdi_2011/source . 
Swiss National Bank (2012b), Swiss Balance of Payments 2011 . Viewed at: 
http://www.snb.ch/en/mmr/refer ence/balpay_2011/source. 
Swiss National Bank (2012c), SNB Balance Sheet Items End of September 2012. December. 
Viewed at: http://snb.ch/en/iabout/stat/statpub/id/statpub . 
UNCTAD (2013), Generalized System of Preferences: Handbook on the Scheme of Switzerland . 
Viewed at: http://unctad.org/en/PublicationsLibrary/itcdtsbm28rev3_en.pdf . 
World Bank (2012), Doing Business 2011 . Viewed at: 
http://www.doingbusiness.org/ ~/media/fpdkm/doing%20bu siness/documents/annual-
reports/english/db11-fullreport.pdf.  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  World Economic Forum (2012), The Global Competitiveness Report 2012-2013, Geneva. Viewed 
at: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf . 
WTO (2001),  Trade Policy Review: Switzerland and Liechtenstein, Geneva. 
WTO (2005), Trade Policy Review: Switzerland and Liechtenstein, Geneva. 
WTO (2009), Trade Policy Review: Switzerland and Liechtenstein , Geneva. 
 
 
 
   
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  5  APPENDIX TABLES 
Table A1. 1 Structure of imports, 2008-11a 
(US$ million and %) 
 2008 2009 2010 2011 
Total (US$ million) 182,368  155,309  175,890  207,630  
 (%) 
Total primary products 20.2 18.9 18.3 19.3 
  Agriculture 6.7 7.3 6.8 6.6 
   Food 5.7 6.3 5.8 5.7 
   Agricultural raw material 1.0 1.0 1.0 0.9 
  Mining 13.5 11.6 11.5 12.6 
   Ores and other minerals 0.7 0.5 0.6 0.5 
   Non-ferrous metals 3.9 3.9 3.5 3.6 
6812 Platinum unwrought, unworked or semi-
manufactured 2.0 2.5 1.8 1.9 
   Fuels 8.9 7.3 7.4 8.5 
3510 Electric energy 1.7 1.9 2.0 2.6 
3330 Crude oils of petroleum and bituminous minerals 2.2 1.4 1.6 1.7 
3432 Natural gas, in the gaseous state 0.8 0.9 0.7 0.7 
Manufactures 79.3 80.6 80.6 79.6 
  Iron and steel 2.5 1.6 1.9 2.0 
  Chemicals 20.4 21.7 21.6 21.3 
5429 Medicaments, n.e.s. 4.3 5.6 4.9 5.0 
5157 Other heterocyclic compounds; nucleic acids 2.3 2.4 2.8 2.8 
5416 Glycosides; glands, etc. and extracts; 
antisera/vaccines, etc. 2.3 2.3 2.4 2.6 
5422 Medicaments with hormones, etc. of 541.5 but 
not antibiotics, etc. 0.9 1.1 1.1 1.2 
5421 Medicaments containing antibiotics or derivatives 0.9 1.2 1.0 1.0 
  Other semi-manufactures 9.2 8.8 8.3 8.7 
6672 Diamonds (excl. industrial, sorted) not 
mounted/set 1.4 1.1 1.0 1.4 
  Machinery and transport equipment 27.2 26.7 26.8 26.5 
   Power generating machines 1.4 1.4 1.2 1.2 
   Other non-electrical machinery 8.0 7.2 7.0 6.9 
     Agricultural machinery and tractors 0.3 0.3 0.3 0.3 
   Office machines & telecommunication equipment 5.3 5.5 5.6 5.3 
7641 Electrical apparatus for line telephony/telegraphy 0.7 0.7 0.7 0.8 
7643 Radio or television transmission apparatus 0.7 0.7 0.8 0.7 
7522 Data processing machines, with at least 
processing, imput and output units 0.5 0.6 0.7 0.7 
   Other electrical machines 3.9 3.7 3.9 3.9 
   Automotive products 6.3 6.2 6.6 7.2 
7812 Motor vehicles for the transport of persons, n.e.s. 4.6 4.6 5.1 5.6 
7821 Goods vehicles 0.7 0.6 0.6 0.7 
   Other transport equipment 2.3 2.7 2.5 2.0 
  Textiles 1.2 1.2 1.1 1.1 
  Clothing 3.2 3.4 3.0 3.0 
  Other consumer goods 15.7 17.2 17.8 17.1 
8973 Jewellery of gold, silver or platinum metals 
(except watches) 2.5 3.8 4.8 4.4 
8859 Time measuring equipment and accessories, 
n.e.s. 0.9 0.7 0.8 1.0 
8996 Orthopeadic appliances; artificial parts of the 
body; hearing aids etc. 0.8 1.0 0.9 0.8 
8215 Furniture, n.e.s., of wood 0.7 0.7 0.7 0.7 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   2008 2009 2010 2011 
Other 0.5 0.5 1.1 1.1 
  Gold 0.4 0.3 0.9 0.9 
9710 Gold, non-monetary (excl. gold ores and 
concentrates) 0.4 0.3 0.9 0.9 
a  Product classification is based on SITC Rev.3. 
Source:  WTO Secretariat estimates, based on information provided by the Swiss Government. 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table A1. 2 Structur e of exports, 2008-11a 
(US$ million and %) 
 2008 2009 2010 2011 
Total (US$ million) 199,415 172,264 195,112 234,521 
 (%) 
Total primary products 10.4 9.9 10.9 10.8 
  Agriculture 3.8 4.2 4.1 4.0 
   Food 3.4 3.9 3.7 3.7 
0712 Coffee, roasted 0.4 0.5 0.6 0.7 
   Agricultural raw material 0.4 0.3 0.3 0.3 
  Mining 6.6 5.7 6.8 6.8 
   Ores and other minerals 0.7 0.5 0.7 0.8 
   Non-ferrous metals 2.9 2.3 3.3 3.0 
6812 Platinum unwrought, unworked or semi-
manufactured 2.0 1.6 2.4 2.1 
   Fuels 3.0 2.8 2.8 3.1 
3510 Electric energy 2.5 2.5 2.5 2.7 
Manufactures 89.2 89.6 88.3 88.0 
  Iron and steel 1.2 0.7 0.9 0.9 
  Chemicals 34.3 39.2 38.2 36.7 
5429 Medicaments, n.e.s. 10.9 13.1 12.2 11.7 
5416 Glycosides; glands, etc. and extracts; 
antisera/vaccines, etc. 7.0 8.3 8.5 8.7 
5157 Other heterocyclic compounds; nucleic acids 2.9 3.3 3.3 3.0 
5147 Carboxyamide-function compounds (excl. 
urea) 1.0 1.4 1.2 1.1 
5415 Hormones; derivatives; other steroids used 
as hormones 0.7 1.0 1.1 1.1 
5421 Medicaments containing antibiotics or 
derivatives 1.0 1.1 1.0 0.9 
5422 Medicaments with hormones, etc. of 541.5 
but not antibiotics, etc. 0.8 0.8 0.9 0.9 
5514 Mixtures of odoriferous substances, industrial 
use 0.8 0.8 0.9 0.8 
5413 Antibiotics, not put up as medicaments of 542 0.8 0.9 0.8 0.8 
  Other semi -manufactures 6.4 5.6 5.6 5.3 
  Machinery and transport equipment 24.3 21.7 20.9 21.0 
   Power generating machines 2.5 2.4 2.0 1.9 
7149 Parts of engines and motors of 714.41 and 
714.8 1.1 1.3 0.9 0.8 
   Other non-electrical machinery 12.1 9.9 10.5 10.9 
7284 Machinery and appliances for particular 
industries, n.e.s. 1.1 1.2 1.6 1.8 
     Agricultural machinery and tractors 0.1 0.1 0.1 0.1 
   Office machines & telecommunication equipment 1.5 1.5 1.5 1.3 
   Other electrical machines 5.0 4.8 4.7 4.4 
   Automotive products 1.0 0.9 0.9 0.9 
   Other transport equipment 2.1 2.1 1.3 1.6 
  Textiles 0.9 0.8 0.8 0.7 
  Clothing 1.0 0.9 0.7 0.7 
  Other consumer goods 21.1 20.5 21.3 22.7 
8854 Wrist-watches and other watches (excl. of 
885.3) 4.6 4.2 4.8 5.5 
8973 Jewellery of gold, silver or platinum metals 
(except watches) 2.7 2.8 3.1 3.7 
8853 Watches with case wholly or partly of 
precious metal 2.8 2.4 2.6 3.2 
8996 Orthopeadic appliances; artificial parts of the 
body; hearing aids etc. 2.8 3.4 3.0 2.7 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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   2008 2009 2010 2011 
8722 Instruments used in medical, surgical or 
veterinary sciences 0.8 0.9 0.9 0.9 
Other 0.4 0.5 0.8 1.2 
  Gold 0.1 0.2 0.6 1.0 
9710 Gold, non-monetary (excl. gold ores and 
concentrates) 0.1 0.2 0.6 1.0 
a Product classification is  based on SITC Rev.3. 
Source: WTO Secretariat estimates, based on in formation provided by the Swiss Government. 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Table A1. 3 Origin of imports, 2008-11  
(US$ million and %) 
 2008 2009 2010 2011 
Total (US$ million) 182,368  155,309  175,890  207,630  
 (%) 
 America 7.7 7.5 7.2 6.7 
  United States 5.8 5.8 5.4 5.0 
  Other America 1.9 1.7 1.8 1.7 
   Brazil 0.5 0.4 0.5 0.5 
 Europe 79.6 78.7 78.2 78.8 
  EU(27) 78.8 78.0 77.5 78.1 
   Germany 33.3 32.6 31.9 32.3 
   Italy 11.0 10.7 10.2 10.4 
   France 9.4 9.3 8.5 8.7 
   Netherlands 4.6 4.5 4.5 4.4 
   Austria 4.0 4.3 4.3 4.3 
   United Kingdom 3.7 3.7 3.9 3.4 
   Ireland 2.5 2.5 3.2 3.2 
   Belgium 3.2 2.8 2.8 3.1 
   Spain 2.0 2.3 2.7 2.8 
   Czech Rep. 0.9 1.0 1.2 1.2 
   Sweden 0.9 0.8 0.8 0.9 
   Poland 0.6 0.7 0.7 0.7 
   Denmark 0.6 0.6 0.5 0.5 
  EFTA 0.2 0.2 0.2 0.2 
  Other Europe 0.5 0.5 0.5 0.6 
 Commonwealth of In dependent States 1.1 1.2 1.8 1.8 
   Kazakhstan 0.4 0.4 0.6 1.0 
 Africa 2.3 1.9 1.2 1.5 
   South Africa 0.3 1.0 0.4 0.7 
 Middle East 1.0 1.0 1.0 0.9 
 Asia 8.3 9.7 10.7 10.2 
  China 2.5 3.1 3.3 3.4 
  Japan 2.1 2.1 2.0 2.2 
  Six East Asian Traders 2.4 2.3 2.6 2.6 
   Hong Kong, China 0.7 0.7 0.9 0.9 
   Thailand 0.5 0.5 0.5 0.5 
  Other Asia 1.2 2.3 2.7 2.0 
   India 0.6 0.5 0.5 0.7 
   Viet Nam 0.2 1.3 1.6 0.6 
 Other 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimates, based on information provided by the Swiss Government. 
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  Table A1. 4 Destinations of exports, 2008-11   
(US$ million and %) 
 2008 2009 2010 2011 
Total (US$ million) 199,415 172,264 195,112 234,521 
 (%) 
 America 13.7 14.3 14.5 14.6 
  United States 9.6 10.0 10.1 10.2 
  Other America 4.1 4.3 4.4 4.3 
   Canada 1.1 1.3 1.4 1.3 
   Brazil 1.1 1.1 1.1 1.1 
 Europe 63.0 61.5 60.4 58.6 
  EU(27) 61.0 59.7 58.7 56.9 
   Germany 19.7 19.2 19.3 20.1 
   Italy 8.7 8.4 7.9 7.8 
   France 8.6 8.4 7.7 7.1 
   United Kingdom 5.1 5.0 5.9 4.8 
   Austria 2.8 2.9 3.2 3.2 
   Spain 3.4 3.5 3.1 2.8 
   Netherlands 2.9 2.9 2.8 2.5 
   Belgium 1.9 2.1 1.9 2.0 
   Poland 1.1 1.0 1.0 0.9 
  EFTA 0.5 0.4 0.4 0.4 
  Other Europe 1.5 1.3 1.3 1.3 
   Turkey 1.1 1.0 1.0 1.0 
 Commonwealth of In dependent States 2.1 1.7 1.9 2.2 
   Russian Federation 1.5 1.1 1.3 1.5 
 Africa 1.6 1.9 1.7 1.6 
 Middle East 4.1 4.2 4.0 4.0 
   United Arab Emirates 1.3 1.2 1.1 1.3 
 Asia 15.5 16.4 17.6 19.1 
  China 2.8 2.9 3.7 4.2 
  Japan 3.3 3.8 3.3 3.2 
  Six East Asian Traders 6.4 6.4 7.4 8.2 
   Hong Kong, China 2.9 2.9 3.2 3.8 
   Singapore 1.1 1.1 1.4 1.5 
   Korea, Rep. of 0.9 1.0 1.1 1.1 
   Chinese Taipei 0.7 0.6 0.8 0.9 
  Other Asia 3.0 3.2 3.2 3.5 
   India 1.1 1.1 1.3 1.4 
   Australia 1.0 1.1 1.1 1.2 
 Other 0.0 0.0 0.0 0.0 
Source:  WTO Secretariat estimates, based on information provided by the Swiss Government. 
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  Table A2. 1 Most recent notifications made by Switzerland to the WTO, December 2012   
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/59, 20/11/2012  Export subsidies; annual  
Article 18.2 G/AG/N/CHE/55, 09/06/2011 and 
G/AG/N/CHE/55/Rev.1, 23/07/2012 Domestic support; annual 
Article 18.2 G/AG/N/CHE/13/Add.14, 11/04/2012 Administration of tariff quotas; ad hoc 
Article 18.2 G/AG/N/CHE/57, 01/02/2012 Volume of imports under tariff quotas; 
annual 
Article 18.3 G/AG/N/CHE/35/Rev.1, 04/04/2007 New or modified exempt domestic 
support measures; ad hoc 
Articles 5.7 and 18.2  G/AG /N/CHE/56, 31/01/2012 Special safeguard provisions; annual 
Article 16.2  G/AG/N/CHE/53, 06/01/2011 Actions taken within the framework of 
the Decision on LDCs and Net-Food-
Importing Developing Countries; ad hoc 
Agreement on Government Procurement 
Article XIX:5 
Article XIX:5 GPA/W/309/Add.9, 05/07/2010 
GPA/W/314/Add.1, 16/12/2011 Thresholds, biannual 
Thresholds, biannual 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement) 
Article 16.4 G/ADP/N/188/Add.1, 16/10/2009 Anti-dumping measures; semi-annual 
Articles 16.4 and16.5  G/ADP/N/193/CHE, 23/12/2009 Authorities and procedures; once  
Article 18.5  G/ADP/N/1/CHE/1, 4/05/1995 Laws and regulations; ad hoc 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation)  
Article 22 G/VAL/N/1/CHE/1, 28/08/1995 Laws and regulations; once 
Agreement on Import Licensing Procedures 
Articles 1.4(a) and 
8.2(b) G/LIC/N/1/CHE/3, 20/01/2012 Laws and regulations; once  
Article 7.3 G/LIC/N/3/CHE/ 7, 06/10/2011 Completion of  questionnaire; annual 
Agreement on Preshipment Inspection 
Article 5 G/PSI/N/1/Add.2, 26/07/1995 Laws and regulations; once 
Agreement on Rules of Origin 
Article 5 and 
Annex II, 
paragraph 4 G/RO/N/60/Rev.1, 08/04/2009 Changes in laws and regulations (rules of 
origin in effect); ad hoc  
Agreement on Safeguards 
Article 12.6 G/SG/N/1/CHE/1, 24/07/1995 Laws and regulations; once 
Agreement on Subsidies and Countervailing Measures 
Articles 25.1 and 
XVI.1 of the GATT 
1994 G/SCM/N/220/CHE, 24/06/2011 Subsidy programmes; every three years 
for full notifications, annual for changes 
Article 25.11 G/SCM/N/195/Add.1, 14/10/2009 Countervailing actions taken; semi-annual  
Article 25.11 and 25.12 G/SCM/N/202/CHE, 23/12/2009 Authorities and procedures; once 
Article 32.6 G/SCM/N/1/CHE/1, 4 May 1995 Laws and regulations; once 
Agreement on Technical Barriers to Trade 
Article 2.9 G/TBT/N/CHE/158, 27/07/2012 Technical regulations, ad hoc 
Article 5.6 G/TBT/N/CHE/143, 06/02/2012 Conformity assessment procedures; ad 
hoc 
Articles 10.1, 10.2, 
and 10.3 G/TBT/ENQ/30, 22/06/2007 Enquiry point; once  
Article 15.2 G/TBT/2/Add.7/Rev.1, 14/02/2008 Implementation and administration of the 
Agreement; once  
Annex 3C G/TBT/CS/2/Rev.14, 20/01/2008 Acceptance of the Code of Good Practice; 
once 
Agreement on Textiles and Clothing 
Articles 2.8(c) and 
2.11 G/TMB/N/467, 19/02/2004 Integration programm e (fourth Stage); 
once WT/TPR/S/280 • Switzerland and Liechtenstein 
 
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  Agreement/ 
decision Symbol and date of most recent 
notification Description of requirement and 
frequency 
Agreement on the Application of Sanitary and Phytosanitary Measures 
Annex B, paragraph 7 G/SPS/N/CHE/72, 27/07/2011 Sanitary and phytosanitary measures; 
ad hoc 
Annex B, paragraph 3 G/SPS/ENQ/23, 27/03/2008 Enquiry point; once 
Annex B, 
paragraph 10 G/SPS/NNA/8, 20/12/2004 National notification authority; once 
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) 
Article 63.2 IP/N/1/CHE/C/3, 7/07/2003 Laws and regulations; once  
 IP/N/6/CHE/1/Add.2, 22/09/2006 Checklis t of issues on enforcement; once 
Article 69 IP/N/3/Rev.11, 04/02/2010  Contact point; 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 G/LIC/N/1/CHE/1-G/LIC/N/2/CHE/1-
G/LIC/N/3/CHE/1, 16/05/1997 
G/LIC/N/3/CHE/5, 17/03/2010 Notifications of quantitative restrictions; 
every two years 
General Agreement on Trade in Services 
Article III:3 S/C/N/ 596, 05/08/2011 Laws/reg ulations; ad hoc 
Articles III:4 and/or 
IV:2 S/ENQ/78/Rev.8, 03/11/2005 Enquiry point; once only 
Article V:7(a) S/C/N/600, 15/09/2011 Economic integration agreements; ad hoc 
Article VII:4 S/C/N/395, 25/05/2007 Autonomous recognition measures; ad hoc 
General Agreement on Tariffs and Trade 1994 
Article XVII:4(a) G/STR/N/14/CHE, 21/06/2012 Notification on state- trading enterprises; 
every three years for fu ll notifications, on 
an annual basis for changes (as from 
2004, every two years) 
Article XXIV:7(a) WT/REG315/N/1/, 20/06/2012 Agreement establishing a free-trade area; 
ad hoc 
Article XXVIII:5 G/MA/249, 23/09/2011 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. 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 137 - 
 
  Table A2. 2 Most recent notifications made by Liechtenstein to the WTO, December 2012  
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/59, 20/11/2012 Export subsidies; annual  
Article 18.2 G/AG/N/CHE/55, 09/06/2011 and 
G/AG/N/CHE/55/Rev.1, 23/07/2012 Domestic support; annual 
Article 18.2 G/AG/N/CHE/13/Add.14, 11/04/2012 Administration of tariff quotas; ad hoc 
Article 18.2 G/AG/N/CHE/57, 01/02/2012 Volume of imports under tariff quotas; 
annual 
Article 18.3 G/AG/N/CHE/35/Rev.1, 04/04/2007 New or modified exempt domestic 
support measures; ad hoc 
Articles 5.7 and 18.2  G/AG /N/CHE/56, 31/01/2012 Special safeguard provisions; annual 
Article 16.2  G/AG/N/CHE/53, 06/01/2011 Actions taken within the framework of 
the Decision on LDCs and Net-Food-
Importing Developing Countries; ad hoc 
Agreement on Government Procurement  
Article XIX:5 GPA/108/Add.2, 02/12/2011 Statistics ; annual 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement)  
Article 16.4 G/ADP/N/188/Add.1, 16/10/2009 Anti-dumping measures; semi-annual 
Articles 16.5 and 
25.12 G/ADP/N/193/LIE, 05/03/2010 Authorities and procedures; once 
Article 18.5  G/ADP/N/1/CHE/1, 4/05/1995 Laws and regulations; ad hoc 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs 
Valuation)  
Article 22 G/VAL/N/1/CHE/1, 28/08/1995 Laws and regulations; once 
Agreement on Import Licensing Procedures  
Articles 1.4(a) and 
8.2(b) G/LIC/N/1/LIE/3, 23/02/2012 Laws and regulations; once  
Article 7.3 G/LIC/N/3/LIE/ 5, 24/02/2012 Comple tion of questionnaire; annual 
Agreement on Preshipment Inspection  
Article 5 G/PSI/N/1/Add.2, 26/07/1995 Laws and regulations; once 
Agreement on Rules of Origin 
Article 5 and 
Annex II, 
paragraph 4 G/RO/N/60/Rev.1, 08/04/2009 Changes in laws and regulations (rules of 
origin in effect); ad hoc  
Agreement on Safeguards  
Article 12.6 G/SG/N/1/CHE/1, 24/07/1995 Laws and regulations; once 
Agreement on Subsidies and Countervailing Measures  
Articles 25.1 and 
XVI.1 of the GATT 
1994 G/SCM/N/220/LIE, 22/02/2012 Subsidy programmes; every three years 
for full notifications, annual for changes 
Article 25.11 G/SCM/N/195/Add.1, 14/10/2009 Countervailing actions taken; 
semi-annual  
Article 25.12 G/ADP/N/202/LIE, 05/03/2010 Authorities and procedures; once 
Article 32.6 G/SCM/N/1/CHE/1, 4 May 1995 Laws and regulations; once 
Agreement on Technical Barriers to Trade  
Article 2.9 G/TBT/N/CHE/100, 5/08/2008 Technical regulations; ad hoc 
Article 5.6 G/TBT/N/CHE/58, 16/11/2005 Conformity assessment procedures; 
ad hoc 
Articles 10.1, 10.2, 
and 10.3 G/TBT/ENQ/30, 22/06/2007 Enquiry point; once  
Article 15.2 G/TBT/2/Add.7/Rev.1, 14/02/2008 Implementation and administration of 
the Agreement; once  
Annex 3C G/TBT/CS/2/Rev.14, 20/01/2008 Acceptance of the Code of Good 
Practice; once 
Agreement on Textiles and Clothing 
Articles 2.8(c) and 
2.11 G/TMB/N/467, 19/02/2004 Integration programm e (fourth Stage); 
once WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 138 - 
 
  Agreement/ 
decision Symbol and date of most recent 
notification Description of requirement and 
frequency 
Agreement on the Application of Sanitary and Phytosanitary Measures  
Annex B, 
paragraph 7 G/SPS/N/CHE/72, 27/07/2011 Sanitary and phytosanitary measures; 
ad hoc 
Annex B, 
paragraph 3 G/SPS/ENQ/23, 27/03/2008 Enquiry point; once 
Annex B, 
paragraph 10 G/SPS/NNA/8, 20/12/2004 National notification authority; once 
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)  
Article 63.2 IP/N/1/CHE/C/3, 7/07/2003 Laws and regulations; once  
 IP/N/6/CHE/1/Add.2, 22/09/2006 Checklis t of issues on enforcement; once 
Article 69 IP/N/3/Rev.7, 19/08/2003   Contact point; 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  G/LIC/N/1/CHE/1-G/LIC/N/2/CHE/1-
G/LIC/N/3/CHE/1, 16/05/1997 
G/LIC/N/3/CHE/5, 17/03/2010 Notifications of quantitative restrictions; 
every two years 
General Agreement on Trade in Services 
Article III:3 S/C/N/ 671, 22/11/2012 Laws/reg ulations; ad hoc 
Articles III:4 and/or 
IV:2 S/ENQ/78/Rev.8, 03/11/2005 Enquiry point; once only 
Article V:7(a) S/C/N/600, 15/09/2011 Economic integration agreements; ad hoc 
Article VII:4 S/C/N/395, 25/05/2007 Autonomous recognition measures; 
ad hoc 
General Agreement on Tariffs and Trade 1994 
Article XVII:4(a) G/STR/N/13/LIE, 22/02/2012 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/REG217/N/1/Add.6, 16/01/2012 Agreement establishing a free-trade 
area; ad hoc 
Article XXVIII:5 G/MA/249, 23/09/2011 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. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 139 - 
 
  Table A2. 3 Participation in EFTA free-trade agreements, November 2012   
Signature Entry into 
force Notified to 
GATT/WTO 
(document 
series) Agreement 
04.01.1960 03.05.1960 L/3328 (GATT) 
WT/REG154 S/C/N/207 Convention establishing the EFTA (applies to Iceland, 
Liechtenstein, Norway, and Switzerland)  (amended in 2002) 
10.12.1991 01.04.1992 L/6989/Add.1 
(GATT)  
WT/REG86 
G/L/349 EFTA-Turkey (goods, IP, competition, state aid, dispute 
settlement, government procurement, evolutionary 
clause) 
02.05.1992 01.01.1994 WT/REG138 
S/C/N/28 EEA (applies to all EC member states, Iceland, Norway, 
and Liechtenstein) 
17.09.1992 01.01.1993 L/7129 and 
Add.1 
(GATT) EFTA-Israel (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, 
investment, evolutionary clause) 
19.06.1997 01.12.1999 WT/REG91 EFTA-Morocco (goods, IP, competition, state aid, 
dispute settlement, governme nt procurement, services, 
investment, evolutionary clause) 
30.11.1998 01 07.1999 WT/REG79 EFTA-Palestine (goods, IP, competition, state aid, 
dispute settlement, governme nt procurement, services, 
investment, evolutionary clause) 
27.11.2000 01.07.2001 WT/REG126 
S/C/N/166 EFTA-Mexico (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, and investment)
 
21.06.2001 01.04.2002 WT/REG132 EFTA-Croatia (goods, IP, competition, state aid, and 
dispute settlement; governme nt procurement, services, 
investment, evolutionary clause) 
21.06.2001 01.09.2002 WT/REG133 EFTA-Jordan (goods, IP, competition, state aid, and 
dispute settlement; governme nt procurement, services, 
investment, evolutionary clause) 
19.06.2000 01.05.2002 WT/REG117 EFTA-Former Yugoslav Republic of Macedonia (goods, 
IP, competition, state aid, and dispute settlement; 
government procurement, services, investment, 
evolutionary clause) 
26.02.2002 01.01.2003 WT/REG148 
S/C/N/226 EFTA-Singapore (goods, IP, competition, state aid, 
dispute settlement, governme nt procurement, services, 
and investment) 
26.06.2003 01.12.2004 WT/REG179 
S/C/N/309 EFTA-Chile (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, and 
investment) 
24.06.2004 01.01.2007 WT/REG224 EFTA-Lebanon (g oods, IP, competition, state aid, and 
dispute settlement; governme nt procurement, services, 
investment, evolutionary clause) 
17.12.2004 01.06.2006  WT/REG201 EFTA-Tunisia (goods, services, IP, competition, state 
aid, and dispute se ttlement; governme nt procurement, 
services, investment , evolutionary clause) 
15.12.2005 01.09.2006 WT/REG217 
S/C/N/373 EFTA-Republic of Korea (goods, IP, competition, state 
aid, dispute settlement, government procurement, services, and investment) 
26.06.2006 01.05.2008 WT/REG256 EFTA-Southern African Customs Union (goods, 
competition, state aid, an d dispute settlement; IP, 
services, government procurement, investment, 
evolutionary clause) 
27.01.2007 01.08.2007 WT/REG232 EFTA-Egypt (goods, IP, competition, state aid, and 
dispute settlement; governme nt procurement, services, 
investment, evolutionary clause)  
26.01.2008 01.07.2009 WT/REG271 EFTA-Canada (goods, IP, competition, state aid, and 
dispute settlement; governme nt procurement, services, 
investment, evolutionary clause) WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 140 - 
 
  Signature Entry into 
force Notified to 
GATT/WTO 
(document 
series) Agreement 
25.11.2008 01.07.2011a WT/REG299/N/1 
S/C/N/600 EFTA-Colombia (goods, processed agricultural products, 
services, investment, IP, government procurement, competition, state aid, dispute settlement) 
17.12.2009 01.11.2010 WT/REG292/N/1 EFTA-Albania (goods, IP; competition, state aid, 
government procurement, services, investment, dispute 
settlement, evolutionary clause) 
17.09.2009 01.10.2010 WT/REG290 EFTA-Serbia (goods, IP, competition, state aid, 
government procurement, services, investment, dispute settlement, evolutionary clause) 
24.06.2010 01.07.2011 WT/REG295 EFTA-Peru (goods, processed agricultural products, IP, 
competition, state aid, government procurement, 
services, investment, dispute settlement) 
24.06.2010 01.06.2012 WT/REG315 
S/C/N/644 EFTA-Ukraine (goods, IP, competition, state aid, 
government procurement, services, investment, dispute settlement, evolutionary clause) 
21.06.2011 01.10.2012 WT/REG322/N/1 
S/C/N/654 EFTA-Hong Kong, China (goods, IP, competition, state 
aid, government procuremen t, services, investment, 
dispute settlement, sustainable development, 
evolutionary clause) 
14.11.2011 01.09.2012 WT/REG323/N/1 EFTA-Montenegro (goods, IP, competition, state aid, 
government procurement, services, investment, dispute settlement, sustainable development, evolutionary clause) 
a Agreement has entered into force for Switzerland and Liec htenstein only.  
Source: WTO Secretariat; and EFTA Secretariat (2011), 51st Annual Report of the European Free Trade 
Association 2011 . Viewed at: 
http://www.efta.int/~/media/Files/Publicatio ns/Annual%20Report/51st%20Annual%20Report%2020
11.pdf . 
 
 
  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 141 - Table A2. 4 Overview of legal form s of companies in Liechtenstein   
 Sole 
proprietorship General 
partnership Limited liability 
company 
(GmbH)  Joint stock 
company Branch office Establishment Foundation Trust enterprise  Trust 
Formation 
requirements  Self-
employment, 
economic activity as a means of permanent 
gainful 
employment Signing of 
articles of 
partnership  Public act of 
signing when 
company is founded, adoption of articles of association, 
appointment of a 
board of management, appointment of auditors (if engage 
in commercial 
activities) Two or more natural 
or legal persons are 
required for forming 
an AG. 
The founders must 
establish the articles in public and 
notarized documents 
and sign the draft of 
such articles Entry in the 
Commercial 
Register One or more 
founders must 
sign the written articles of establishment for 
its formation Formed through 
a unilateral 
declaration of will of the founder to serve a specified purpose The trust articles 
must be signed with 
certified signature by the settlor(s) and contain the statement of the 
settlor(s) on 
founding the trust 
enterprise Comes into 
existence with 
the signing of the trust deed by a settlor and trustee or by 
means of a 
written Declaration of Trust by the settlor, which 
must be 
accepted by the trustee in 
writing 
Purpose  Small 
businesses, 
activities carried 
out by single 
individuals (e.g. 
artists)  Small, 
permanent 
businesses 
centering on 
specific 
individuals  Generally used for 
commercial 
purposes Joint-stock 
companies may 
engage in both 
commercial and 
non-commercial 
activities Business 
operation that is 
legally part of a 
main enterprise 
but has a degree 
of economic 
independence Establishments 
may engage in 
both commercial 
and non-
commercial 
activities May be used for 
private-benefit 
purposes or 
common-benefit 
purposes Generally used for 
commercial 
purposes but can 
also be used as 
holding vehicles Trust may be 
used for private-
benefit purposes 
or common-
benefit 
purposes. A 
trust may also 
be used for 
commercial 
purposes 
Legal status  Sole property of 
the firm's owner Partnership  Legal entity  Legal entity  Branch office  Legal entity Legal entity With or without legal 
personality No legal entity 
Entry in the 
Public 
Register  Mandatory for 
businesses with 
minimum 
annual sales of 
SwF 300,000 Comes into 
existence upon 
entry in the 
Public Register  Becomes a legal 
entity upon entry 
in the Public 
Register Becomes a legal 
entity upon entry in 
the Public Register Mandatory  Becomes a legal 
entity upon entry 
in the Public 
Register Foundations with 
common-benefit 
purpose must be 
entered in Public 
Register.  
Other private-
benefit 
foundations 
must not be 
registered. A 
notification of 
formation must 
be deposited at 
the Office of 
Land and Public 
Register Comes into 
existence only upon 
entry in the Public 
Register Trusts may be 
registered in the 
Public Register 
or the trust deed 
is deposited at 
the Office of 
Land and Public 
Registration  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 142 -  Sole 
proprietorship General 
partnership Limited liability 
company 
(GmbH)  Joint stock 
company Branch office Establishment Foundation Trust enterprise  Trust 
Founders  One individual is 
the sole 
proprietor Two or more 
natural or 
legal persons At least one 
partner (individual 
or legal entity) At least two 
founders, natural or 
legal persons. 
The founders can be 
distinct from the shareholders or 
founders can be 
shareholders also Main company  
(head office) May be set up by 
one or more 
founders, which may be individual 
persons, a firm, a 
community or by an association of communes or a legal entity not 
otherwise entered 
in the Public 
Register  One or more 
natural or legal 
persons One or more natural 
or legal persons The settlor(s) 
may be one or 
more natural or 
legal person(s) 
Executive 
bodies  None  Partners  General meeting 
of partners 
Management Annual general 
meeting 
Board of directors  Bodies of the 
main company 
Management by 
own manager; 
authorized 
representative 
residing in 
Liechtenstein Holder(s) of 
founders rights 
Board of directors Foundation 
Council Settlor(s) 
Board of Trustees Trustee(s) 
Liability Unlimited 
liability of the 
proprietor with 
personal assets  Primary 
liability to the 
level of 
company assets; subsidiary joint and 
several 
unlimited liability of each partner 
with personal 
assets Liability limited 
exclusively to 
company's assets; 
Liability of each participant limited to a certain amount, and they 
are not liable for 
the company's 
debts Only the companies' 
assets are liable for 
the debts of the 
company; 
Shareholders liability 
limited, and they are not personally liable for the company's liabilities Main company  
(head office) Only the 
establishments' 
assets are liable 
for the debts of 
the Establishment Only the 
foundations' 
assets are liable 
for the debts of 
the Foundation Only the trust 
enterprise's assets 
are liable for the 
debts of the Trust 
Enterprise Depends on 
whether there 
are creditors of 
the trustee, of the settlor, of a beneficiary or of the trust property 
Minimum 
capital No stipulations No stipulations SwF 30,000 or 
€30,000 or 
US$30,000 SwF 50,000 or 
€50,000 or 
US$50'000 No separate 
equity required 
(capital 
resources of 
foreign head 
office are 
sufficient) SwF 30,000 or 
€30,000 or 
US$30,000 SwF 30,000 or 
€30,000 or 
US$30'000 SwF 30,000 or 
€30,000 or 
US$30,000  
Costs: 
foundation, consulting 
registration, 
notary From SwF 150 From SwF 400 From SwF 700 for 
registration 
From SwF 300 for 
notarization From SwF 700 for 
registration 
From SwF 300 for 
notarization From SwF 350 From SwF 700 From SwF 700 From SwF 700 From SwF 300 
 
Source: Information provided by the authorities. 
 WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 143 - 
 
  Table A3. 1 State-owned enterprise s and exclusive arrangements, 2012  
Goods/services Entity Coverage 
Switzerland    
Alcohol and spirits Swiss Alcohol Board Exclusive import rights that may be conferred 
on the private sector 
Salt Monopoly jointly administered by 
the cantons Exclusive production an d distribution rights 
Aerospace and 
defence technology RUAG Joint stock company wholly owned by the Swiss 
Confederation by reason of securing supply in 
the armament sector 
Electricity  Cantonal or local entities 
 
 
Swissgrid (majority public 
ownership) Generation and supply of electricity; de facto 
monopoly 
 Exclusive rights for the operation of the Swiss 
high voltage electricity transmission system 
Water  Cantonal or local entities  Collection, purification, an d distribution of water 
Gas Swissgas 
Transitgas Regional entities  
Local and cantonal utilities  Gas import and gas transmission 
International gas transit Regional gas distribution 
Local gas distribution 
Telecommunication Swisscom (56.9% ownership by 
the Confederation) De facto , some telecom services 
Rail transport Swiss Federal railways (100% 
ownership by the Confederation); 
and other transport companies Regional passenger transport services via rail, 
and operating railroad infrastructure 
Passenger transport 
by bus, tramway, 
cable, boat, etc. Cantonal or local entities Scheduled passenger transport 
Airport management Zurich  International Airport 
(minority public ownership); 
Geneva Internat ional Airport; 
Europe Airport Basel-Mulhouse-
Freiburg; and other entities  Services related to the management of airports  
Air traffic control  Skyguide (99.97% owned by the 
Confederation) Exclusive mandate from the Swiss 
Confederation to supply civil and military air 
traffic control services 
Radio and television SRG SSR; and private companies Guaranteed and privileged access to wireless 
terrestrial broadcasting , and local cable TV 
networks built on a single licence 
Postal services Swiss Post (La Poste Suisse) 
(100% ownership by the 
Confederation) Exclusive rights to supply services related to 
delivering domestic and international inbound 
letters of up to 50 g  
Certain insurance 
services Cantonal entities 
 
 
SUVA Exclusive rights to supply insurance services for 
fire and natural damage to buildings  
 Exclusive rights to supply statutory workplace 
accidents insurance services  
Certain banking 
services Cantonal banks (majority 
ownership by cantons); and other 
banks  Exclusive rights to issue specific mortgage 
bonds ( Schweizer Pfandbriefe ) only through 
"issuing institutions" whose mortgage loans 
amount to at least 60% of their balance sheet 
(the issuing institutions are owned either by 
cantonal or private banks) WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 144 - 
 
  Goods/services Entity Coverage 
Liechtenstein    
Electricity Liechtensteinische Kraftwerke 
(LKW) Generation, imports, and distribution of 
electricity; direct imports are allowed 
Drinking water  Gruppenwasserversorgung 
Liechtenstein Oberland 
  
Wasserversorgung Liecht. 
Unterland  Exclusive production an d distribution rights 
(except industry and large customers)  
 
Exclusive production an d distribution rights 
(except industry and large customers)  
Gas Liechtensteinische Gasversorgung 
(LGV)  Imports and distribution of gas; d e facto  
monopoly 
Telecommunications  Telecom Liechtenstein Fully state-owned company providing fixed-net 
services and responsible for network planning, 
operation, and maintenance. 
Public transport 
services by bus Liechtensteinmobil  Exclusive supply rights 
Postal services Liechtenstein Post AG Exclus ive rights over letters and direct mailing 
up to 50 g  
Note: Unless otherwise specified, Swiss entities listed  are fully or to a very large extent, state-owned. 
Source: Information provided by the Swiss and Liechtenstein authorities. 
  WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 145 - 
 
  Table A4. 1 Administration of tariff quotas, 2012   
TQ Product Beneficiaries/ 
eligibility 
requirements Allocation procedure Permit/licence 
1 Live horses, donkies, mules, 
etc. No limitation First-come-first-served No licence 
2 Live bovines Breeders First-come-first-served, 
except live bovines 
(auction) Non-automatic 
licence 3 Live swine 
4 Live goats and sheep 
5 Meat (beef, sheep, goat, 
and horse) No limitation Auction,  prise en charge  
(only 10% meat of beef 
and sheep) Non-automatic 
licence 
6 Other meat (pork and 
poultry) Auction Non-automatic 
licence 
7 Dairy products (milk 
equivalent)  Auction (milk powder, 
butter),  first-come-first 
served (various dairy products, "fontal cheese" and other dairy 
products) Non-automatic 
licence 
Cheese: no licence 
Other dairy products: 
automatic licence 
8 Casein No limitation Unlimited Automatic licence 
9 Eggs in shell First-come-first served No licence 
10 Dried egg products Unlimited No licence 
11 Other egg products 
12 Bovine semen Recognized 
insemination 
organizations First-come-first-served Non-automatic 
licence 
13 Cut flowers No limitation Past importsb; auction, 
prise en chargea Non-automatic 
licence 
14 Potatoes and products Prise en chargea; 
auction Non-automatic 
licence 
15 Vegetables Past importsb; prise en 
chargea; pro ratac Non-automatic 
licence 
16 Apples, pears, quinces, fresh Non-automatic 
licence 
17 Frozen vegetables Prise en chargea; past 
importsb; pro ratac Non-automatic 
licence 
18 Apricots, cherri es, etc. fresh Past importsb; prise en 
chargea; pro ratac Non-automatic 
licence 
19 Other fruit, fresh Non-automatic 
licence 
20 Fruit for cider production Auction  Non-automatic 
licence 
21 Seed-fruit produc ts  Non-automatic 
licence 
22 Grapes for pressing and 
grape juice Licensed grape and 
grape juice traders Unlimited Automatic licence 
23 White and red wine Licensed wine traders First-come-first served Automatic licence 
24 Durum wheat, undenatured Importers licensed by 
Réservesuisse  Unlimited Automatic licence 
25 Bread cereals and other 
cereals for human 
consumption First-come-first served Automatic licence 
26 Coarse grains for human 
consumption Mills Unlimited Automatic licence 
a Prise en charge : quota shares contingent upon purchases of local goods. 
b Past imports: quota shares allo cated as a function of commerci al imports during the preceding 
period. 
c Pro rata: quota allocation depends on the qu antities requested by individual importers. 
Source: WTO documents G/AG/N/CHE/13/Add.9, 8 January 2008, G/AG/N/CHE/13/Add.10, 27 May 2008, 
and G/AG/N/CHE/13/Add.14, 11 April 2012; and information provided by the Swiss authorities. WT/TPR/S/280 • Switzerland and Liechtenstein 
 
- 146 - 
 
  Table A4. 2 Tariff quotas, 2012   
TQ Product description Quota 
commitment  Fill ratio 
(%) 
2010 2011 
1 Live horses, asses, mules, and hinnies (units) 3,322 115 117 
2 Live bovine animals (units) 20 5,625 6,365 
3 Live swine (units) 50 30 6 
4 Live sheep and goats (units) 187 267 297 
5 Animals for slaughter; meat mainly produced 
on the basis of coarse fodder (tonnes) 22,500 161 165 
6 Animal for slaughter; meat mainly produced 
on the basis of concentrated fodder (tonnes) 54,482 102 103 
7 Dairy products, in milk equivalent (tonnes) 527,000 113 116 
8 Casein (tonnes) 697 126 118 
9 Birds' eggs, in shell (tonnes) 33,735 109 102 
10 Dried egg products (tonnes) 977 155 108 
11 Other egg produc ts (tonnes) 6,866 100 100 
12 Bovine semen (doses) 20,000 2,264 2,044 
13 Cut flowers (tonnes) 4,590 170 176 
14 Seed and table potatoes; potato products 
(tonnes) 22,250 110 119 
15 Fresh vegetables (tonnes) 166,076 127 126 
16 Frozen vegetables (tonnes) 4,500 105 104 
17 Fresh apples, pears, and quinces (tonnes) 15,810 86 89 
18 Fresh apricots, cherries, plums, and sloes 
(tonnes) 16,340 106 87 
19 Other fresh fru it (tonnes) 13,360 108 108 
20 Fruit for cider production (tonnes) 172 73 8 
21 Seed fruit products (tonnes) 244 726 468 
22 Grapes for pressing and grape juice 
(hectolitres) 100,000 89 84 
23, 
24,25 White and red wine (hectolitres) 1,700,000  99 97 
26 Durum wheat, undenatured (tonnes) 110,000 74 118 
27 Bread cereals and other cereals for human 
consumption (tonnes) 70,000 112 120 
28 Coarse grains for human consumption 
(tonnes) 70,000 41 50 
Source: Information provided by the Swiss authorities. 
  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 147 - Table A4. 3 Summarized trade regimes on financial services  
Subsectors GATS FTAs Other 
preferential 
treatment Applied 
regime 
7.A Insurance 
and Insurance-related Services According to the "GATS financ ial services understanding"; 
monopoly rights as indicated in paragrap h B.1 of the "understanding": a public 
monopoly on fire and natural damage in surance on buildings exists in: Zurich, 
Berne, Lucerne, Nidwalden, Glaris, Zoug, Fribourg, Soleure, Bâle-Ville, Bâle-Campagne, Shaffhouse, Argovie, St-Gall, Grisons, Appenzell Rhodes Extérieures, 
Thurgovie, Vaud, Neuchâtel, Jura. In the cantons of Nidwalden and Vaud, the public monopoly on fire and natural damage insurance also covers movable 
property located in the buildings 1) MA: transactions as indicated in pa ragraph B.3 of the "Understanding": the 
underwriting of aircraft liability insura nce requires a commercial presence in 
Switzerland NT: acquisition of real estate by foreigners is limited as indicated in the horizontal commitme nts; however, foreign or fo reign-controlled insurance 
companies are granted authorization to invest in real estate, provided the total value of the buyer's property does not ex ceed the technical reserves required for 
the company's activities in Switzerland, as well as to acquire property that serves as a security for mortgage loans in case of bankruptcy or liquidation; 
2) transactions as indicated in paragraph B.4 of the "Understanding": the 
underwriting of aircraft liability insura nce requires a commercial presence in 
Switzerland; 3) MA: representative offices cannot conduct business or act as an agent; for insurance companies incorporated in Switze rland, the legal form  of a joint-stock 
company ( Aktiengesellschaft, société anonyme ) or a mutual association 
(Genossenschaft, société cooperative ) is required; for branches of foreign 
insurance companies, the legal form of th e insurance company in the head office 
country must be comparable to a Swiss joint-stock company or mutual
 
association; participation in the basic health insurance scheme requires health  
insurance suppliers to be organized in one  of the following legal entities: 
association ( Verein, association ), mutual association, foundation ( Stiftung, 
fondation ) or joint-stock company; participation in the statutory pension funds 
scheme ( Berufsvorsorge/ prévoy ance professionnelle ) requires pension funds to 
be organized in the form of a mu tual association or a foundation 
NT: a minimum of three years of experience  is required in the direct insurance 
business in the head office country; acquis ition of real estate by foreigners is 
limited as indicated in the horizontal co mmitments; however, foreign or foreign-
controlled insurance companies are granted authorization to invest in real estate, provided the total value of the buyer's property does not exceed the technical 
reserves required for the company's acti vities in Switzerland, as well as to 
acquire property that serves as a secu rity for mortgage loans in case of 
bankruptcy or liquidation. Positive listing agreements 
EFTA-CHL: no commitments  
 EFTA-COL; EFTA-KOR: according to the "GATS financial services understanding"  Same monopoly rights as GATS commitments  3) same as GATS commitments except for the NT restriction on real estate acquisition  EFTA-MEX: 1) 3) same as GATS commitments; 2) none  
 EFTA-SGP:  same as GATS 
commitments 
 Other agreements 
EFTA: reservations echo GATS mutatis mutandis  (i.e. the 
cross-border chapter for modes 1 and 2 and the investment chapter for mode 3) except for monopoly rights where there is no reservation CH-JPN: reservations echo GATS except those on aircraft liability, real estate, and experience. In addition some reservations are more detailed than their GATS equivalent (e.g. the three reservations on pension funds) while another (on insurance intermediation) does not appear to have GATS 
equivalent.
a All these 
reservations are both to MA and 
NT, and cover existing measures. None 
 Overall regime 
identical to that provided under the JPN-CH FTA via the obligations contained in Articles 57.2.a and 90.1 a and b of this agreement   
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 148 - Subsectors GATS FTAs Other 
preferential 
treatment Applied 
regime 
7.B Banking 
and Other 
Financial 
Services 
(excluding 
insurance) According to the "GATS financ ial services understanding"; 
monopoly rights as indicated in para graph B.1 of the "understanding": two 
mortgage bonds issuance inst itutes have been granted an exclusive right for the 
issuance of specific mortgage bonds ( Pfandbrief, lettre de gage ); with regard to 
the first institute, only Swiss cantonal banks are accepted as members; in the 
second institute, banks with head office  in Switzerland whos e national mortgage 
loan business amounts to at least 60% of the balance sheet can be members; 
the issue of other mortgage -backed bonds is not affect ed by this regulation 
1) MAb: foreign investment funds can only be  marketed or distributed through a 
licensed representative agent resident in Switzerland; Swiss franc denominated 
issues can be lead-managed only by a bank or a securities dealer having a 
commercial presence (except repres entative office) in Switzerland; 
NT: acquisition of real estate by foreigners  is limited as indicated in horizontal 
commitments; however, fo reign or foreign-controlled banks are granted 
authorization to acquire property that serv es as a security for mortgage loans in 
case of bankruptcy or liquidation; the i ssue of foreign collective investment funds 
is subject to stamp duty; 
2) Swiss franc denominated issues can be  lead-managed only by a bank or a 
securities dealer having a commercial presence (except representative office) in 
Switzerland ; 
3) MA: commercial presence of foreign fi nancial service suppliers is subject to 
specific requirements relating to the na me of the firm and the regulations on 
financial institutions in the country of origin; commercial presence may be 
denied to financial service suppliers whose ultimate shareholders and/or 
beneficial owners are persons of a non- GATS Member; representative offices can 
neither conclude or deal bu siness nor act as an agent 
NT: acquisition of real estate by foreigners is limited as indicated in Part I; 
however, foreign or foreign-controlled ba nks are granted authorization to acquire 
property that serves as a security for mo rtgage loans in case of bankruptcy or 
liquidation. Positive listing agreements 
EFTA-CHL: no commitments  
 
EFTA-COL, EFTA-KOR: 
according to the financial 
services understanding 
 
Same monopoly rights as GATS 
commitments  
 
1) MAb: foreign investment 
funds can only be marketed or 
distributed through a licensed 
representative agent resident in 
Switzerland; 
NT: the issue of foreign 
collective investment funds is 
subject to stamp duty; 2) none; 
3) MA:  commercial presence 
may be denied to financial 
service suppliers whose 
ultimate shareholders and/or 
beneficial owners are persons of 
a non-party; representative 
offices may not conclude or deal 
business or act as an agent;  
NT: commercial presence of 
foreign financial service 
suppliers is subject to specific 
requirements relating to the 
name of the firm and the 
regulations on financial 
institutions in the country of 
origin 
 
EFTA-MEX: 1) 3) same as GATS 
commitments; 2) none  
 
EFTA-SGP:  same as GATS 
commitments 
 
 
 None  Overall regime 
identical to that 
provided under 
the JPN-CH FTA 
via the 
obligations 
contained in 
Articles 57.2.a 
and 90.1 a and 
b of this 
agreement  
  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 149 - Subsectors GATS FTAs Other 
preferential 
treatment Applied 
regime 
Other agreements 
EFTA: reservations echo that of 
GATS mutatis mutandis  (to the 
cross-border chapter for modes 
1 and 2 and to the investment 
chapter for mode 3) 
 
CH-JPN: reservations echo 
GATS except those on the 
prohibition for representative 
offices to conduct business and 
act as an agent (which is limited 
to securities dealers only), on 
real estate, on Swiss franc 
denominated issues and origin 
and name of the firm. In 
addition some reservations (two 
on licencing and one on stock 
exchanges and securities 
dealers) do not appear to have 
GATS equivalentc. 
All these reservations are to MA 
and NT and cover existing 
measures save one that is 
addressed only to NT (stamp 
duty) and one that also covers 
future measures (on the 
distribution of foreign 
investment, with a GATS floor) 
a The complete description of this reservation reads (34): "… Ex cept for maritime, aviation and transport insurance services (M AT) as well as reinsurance 
services, commercial presence is required in Switzerland (Articles 3 and 15). For insu rance intermediation services, such as br okerage and agency, only 
services supplied by insurance companies established in Switzerlan d may be authorized with the ex ception of maritime, aviation and transport insurance 
services (MAT) as well as rein surance services. Dependent intermediary insurance suppliers are required to be affiliated to an insurance company domiciled in 
Switzerland. Independent intermediary insurance suppliers are requ ired to register in the interm ediary insurance register (SR 9 61.011, Articles 7, 15, 41, 42, 
43 and 44; SR 961.011, Articles 182 to 187)". 
b The whole range of banking and other financial services transactions is covered (excluding insurance), not only transactions indicated in paragraph B.3 of the 
"understanding".  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 150 - c The descriptions of these three re servations read as follows:  
 "(40)(I) If the foreign controlling ultimate  shareholders and/or beneficial owners ar e nationals and/or residents of a non-par ty, then, the licence to establish a 
bank to be organized under Swiss law; the licence to establish an  office, a branch or an agency of a foreign or foreign-control led bank; and the licence to 
appoint a permanent representative of a foreign bank, are subject to the additional condition that the country of domicile of t he foreign bank or of the foreign 
controlling corporate of individual sharehol der shall guarantee reciprocity, (II) An additional licence (as described under (I) ) must be obtained by any bank 
which falls under foreign control or if a foreign controlled bank  undergoes a change of its foreign shareholders holding a qual ified participation. A bank 
organized under Swiss law falls under this provision whenever a foreign person (see below) with a qualified participation direc tly or indirectly holds more than 
50% of the voting rights in the bank or a significant influence on it is exercised in another manner. The following shall be de emed foreign persons: (a) natural 
persons who have neither Swiss nationality no r a residence permit conferring the right of establishment in Switzerland; (b) jur idical persons and partnerships 
that have their registered office abroad or, if they have their registered office in Switzerland,  are controlled by persons def ined under (a);  
  (41) The licence, to establish a bank to be organized under Sw iss law, but with respect to which controlling foreign influence  exists; to establish an office, a 
branch or an agency of a foreign or foreign-controlled bank; or  to appoint a permanent representa tive of a foreign bank, is sub ject to the additional condition 
that the corporate name of the fo reign controlled Swiss bank shall in no way indi cate or suggest that the bank is Swiss-control led. A bank organized under 
Swiss law falls under this provision whenever a foreign person (see below) with a qualified participation directly or indirectl y holds more than 50% of the 
voting rights in the bank or a significan t influence on it is exercised in another manner. The following shall be deemed foreig n persons: (a) natural persons 
who have neither Swiss nationality nor a residence permit conferri ng the right of establishment in Switzerland; (b) juridical p ersons and partnerships who 
have their registered office abroad or, if they have their registered office in Swit zerland, are controlled by persons defined under (a);  
  (44)(I) If its ultimate shareholders and/ or beneficial owners are nati onals and/or residents of a non-Party, authorization of a foreign stock exchange or of a 
stock exchange controlled by foreign person s domiciled abroad may be refused if the non-party in which the foreign stock exchan ge has its registered office or 
in which the controlling foreign persons ar e domiciled does not accord Swiss stock ex changes effective access to its markets an d does not offer them the same 
competitive opportunities as to the local stock exchange. The same rule shall apply to the authorization of securities dealers,  (II) Stock exchanges and 
securities dealers which subsequently come under foreign control must obtain the approv al of the Swiss Financial Market Supervi sory Authority (FINMA). The 
same condition shall apply to foreign-contro lled stock exchanges or securities dealers, if there is a change in the foreign per sons with significant interests. 
Stock exchanges and securities dealers organized under Swiss law shall be considered foreign-cont rolled if foreign persons (see  below) with significant 
interests in them hold over half  the voting rights dire ctly or indirectly, or otherwise exert a controlling influence on them. The following shall be deemed 
foreign persons: (a) natural persons who ha ve neither Swiss nationality nor a residenc e permit conferring the right of establis hment in Switzerland; (b) 
juridical persons and partnerships who have their registered office abroad or, if they  have their registered office in Switzerl and, are controlled by persons 
defined under (a); (45) Re presentative offices of a foreign securities dealer  may not conduct business or act as an agent." 
Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120. 
Source: Compiled by the WTO Secretariat.  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 151 - Table A4. 4 Summarized trade regi mes on air transport services  
Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
Aircraft repair and 
maintenance 1) unbound*; 2) 
unbound; 3) 
none; 4) unbound 
except as indicated in the horizontal commitments + commercial 
presence required 
 Positive listing agreements 
EFTA-CHL, EFTA-SGP: same as GATS 
 
EFTA-COL, EFTA-KOR: 1) 2) 3) none; 4) unbound 
except as indicated in the horizontal commitments  
 
Other agreements 
EFTA, CH-JPN: no reservations None  No restrictions  
Selling and marketing of 
air transport services No commitments Positive listing agreements 
EFTA-CHL, EFTA-SGP: no commitments 
 
EFTA-COL, EFTA-KOR: 
MA 1) 2) 3) none; 4) unbound except as indicated in 
the horizontal commitments 
NT: 1) 3) none except unbound for distribution 
through CRS of air transport provided by CRS parent 
carrier; 2) none; 4) unbound except as indicated in 
the horizontal commitments 
 
Other agreements 
EFTA, CH-JPN: no reservations None No restrictions, EU rules on CRs apply  
Computer reservation 
services  No commitments Positive listing agreements 
EFTA-CHL, EFTA-SGP: no commitments 
 EFTA-COL, EFTA-KOR: MA: 1) 2) 3) none; 4) unbound except as indicated 
in the horizontal  commitments; 
NT: 1) 3) none except unbound for distribution 
through CRS of air transport provided by CRS parent carrier; 2) none; 4) unbound except as indicated in 
the horizontal commitments 
 Other agreements 
EFTA: EU rules on CRS apply  CH-JPN: no reservations  EU-CH aviation 
agreement: EU rules on CRS apply   No restrictions, EU rules on CRs apply   
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 152 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
Airport management 
services (part of CPC 
746)  No commitments Positive listing agreements 
EFTA-CHL, EFTA-SGP: no commitments 
 
EFTA-COL, EFTA-KOR: 1) 2) 3), none; 4) unbound 
except as indicated in the horizontal commitments 
 
Other agreements 
EFTA, CH-JPN: no reservations None Concessioned airports are managed by public 
or private entities (even in the second case, 
the majority of the capital may be in public 
hands) 
Ground handling 
services  No commitments Positive listing agreements 
EFTA-CHL, EFTA-SGP: no commitments 
 
EFTA-COL, EFTA-KOR: unbound*; 2) unbound; 
3) none; 4) unbound except as indicated in the 
horizontal commitments 
 
Other agreements 
EFTA: EU rules on ground handling apply 
CH-JPN: no reservations EU-CH aviation 
agreement: EU 
rules on ground 
handling apply  
 No restrictions, EU rules on CRs apply 
Specialty air services, 
limited to: 
- Air sightseeing 
services 
(part of CPC 73120) 
- Transportation of 
parachute 
jumpers and heli-skiers 
(part of CPC 731) 
 
 
- Air-lifted transport of 
material for construction 
sites 
(part of CPC 732) 
- Airborne surveying 
services 
(part of CPC 86753)  No commitments Positive listing agreements 
 
EFTA-CHL, EFTA-KOR, EFTA-SGP: no commitments 
 
EFTA-COL: 
1) unbound, except none for aircraft that belong to a 
Swiss-controlled juridical person registered and 
having its seat in Switzerland or to a natural person 
with Swiss nationality. Authorization is required for 
commercial transport of fre ight and passengers and 
for some specific operations; 2) none; 3) unbound, 
except none for aircraft that belong to a Swiss-
controlled juridical person registered and having its 
seat in Switzerland or to a natural person with Swiss 
nationality. Authorization is required from the 
commercial transport of fre ight and passengers and 
for some specific op erations; 4) unbound 
 
Other agreements 
EFTA: no reservations 
 None In order to operate in Swiss air-space, 
aeroplanes must be registered in the Swiss 
aircraft register ( Schweizerisches 
Luftfahrzeugregister; registre matricule 
suisse; matricola svizzera ). Foreign 
aeroplanes may be allowed to operate in 
Swiss air-space pursuant to bilateral 
agreements (SR 748.0 Article 2). 
 
Aeroplanes owned by the following natural or 
juridical persons may be registered in the 
Swiss aircraft register: (a) Swiss nationals; 
(b) foreigners, who: (i) pursuant to a bilateral 
agreement, are accorded equal status to 
Swiss nationals in respect of foreign capital 
participation in and management of Swiss air 
traffic companies; (ii) are domiciled in 
Switzerland; and (iii) are permitted to stay in 
Switzerland for an extended period of time; 
(c) foreigners, who: (i) are domiciled in 
Switzerland;  
  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 153 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
CH-JPN: reservation to MFN, MA and NT for existing 
laws and existing and futu re bilateral air services 
agreement (ii) are permitted to stay in Switzerland for an 
extended period of time; and (iii) normally use 
the aeroplane from Switzerland; (d) 
companies and cooperative societies domiciled 
in Switzerland and registered in a cantonal 
commercial register (SR 748.01, Article 4). 
An authorization is required for commercial 
transport of passengers and freight (SR 748.0, 
Article 27). 
 
Commercial transport of passengers includes 
air sightseeing servic es and transport of 
parachute jumpers and heli-skiers. 
Commercial transport of freight includes air-
lifted transport of material for construction 
sites or air lifted. A concession is required for 
the regular transport of passengers and 
freight on the same flight route (SR 748.0, 
Article 28). To obtain such authorization, an 
enterprise must have its domicile in 
Switzerland (SR 748.0, Article 27), be 
registered in a cantonal  commercial register 
and be owned and controlled by a majority of 
Swiss nationals or Swiss enterprises. The 
majority of the shares must be registered 
shares and in Swiss hands (SR 748.01, 
Article 103). 
Enterprises without domicile in Switzerland 
may obtain such authorization on the basis of 
reciprocity, normally pursuant to bilateral air 
services agreements. 
Switzerland reserves the right to accord less 
favourable treatment to  services or service 
suppliers from Japan than that accorded to 
like services or service suppliers of any other 
country (SR 748.0, Articles 29, 30; 
SR 748.01, Article 108; SR 0.748). 
 
 
 
  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 154 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
Commercial transport of passengers or freight 
between points within the territory of 
Switzerland (cabotage), as well as rental 
services of aircraft wi th operator, must be 
supplied by Swiss enterprises exclusively, 
unless international agreements stipulate 
otherwise. 
Switzerland reserves the right to accord less 
favourable treatment to  services or service 
suppliers of Japan than that accorded to like 
services or service suppliers of any other 
country, normally pursuant to bilateral air 
services agreements (SR 748.0, Article 32; 
SR 0.748). 
Aerial advertising is prohibited (SR 748.01, 
Article 83). 
Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120.  
Source:  Compiled by the WTO Secretariat.  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 155 - Table A4. 5 Summarized trade regimes on road transport services  
Subsectors GATS FTAs Other preferential treatment Applied regime 
11.F.a Passenger 
transportation  (CPC 7121+7122) Regular, "closed-door" tours 
only (part of CPC 7121) and occasional, excluding empty entrance, cabotage and taxi services (part of CPC 7122): 1) 2) 3) none + 1 MFN exemption to the benefit of all partners in bilateral agreements on road transport or other arrangements relating to road transport or that may be desirable to allow, on the basis of mutual access to the market, for transport services by vehicles registered in countries other than Switzerland to undertake transportation of 
goods and/or passengers in, 
into, out of, or in transit through Swiss territory, normally based on bilateral agreements  Positive listing agreements 
EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP: 
same as GATS commitments   No MFN exemptions for EFTA-CHL, EFTA-SGP   1 MFN exemption for EFTA-COL, EFTA-KOR: to the benefit of all partners in bilateral agreements on road transport or other arrangements relating to road transport or that may be desirable regulate, on the basis of mutual access to the market, for transport of goods and/or passengers by vehicles registered in countries other than Switzerland 
in, into, out of, or in transit through Swiss territory, normally pursuant to bilateral agreements  Other agreements 
EFTA: special protocol on land transport, prohibiting cabotage except if allowed by earlier bilateral agr eements, freeing from 
authorization procedures occasional services, unladen journeys, own account transport, and special regular services, incorporating the EU licencing system (regulation 684/92 as amended by regulataion11/98) and foreseeing joint agreements for triangular quotas with third parties while grandfathering existing bilateral arrang ements in this regard 
 
CH-JPN: 3 reservations
a 
(a) to MFN, MA, and NT to cover at federal 
and cantonal level, th e state monopoly for 
regular transport of passengers, which is subsequently delegated through concession procedures and with an economic needs test, a public convenience test, and in certain 
instances (regular cross-border transport, certain international shuttle transport, and the transport of passengers between airports and tourist regions) the condition that a Swiss All 50 bilateral agreements on road 
transport except with the UK include passenger transport. Occasional services (e.g. closed-doors services, transit, empty travel) and shuttle services in general without authorization. Regular transport needs authorization.  Cross-border/mode 1 
and transit: see previous column  Cabotage prohibited except if allowed by bilateral agreements (i.e. with Liechtenstein (RS 0.741.619.541.1) and France (limited to border cantons and départements) (RS 0.741.619.349.1)  Overall regime identical to that provided under the JPN-CH FTA via the obligations contained in Articles 57.2.a and 
90.1 a and b of this 
agreement   
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- 156 - Subsectors GATS FTAs Other preferential treatment Applied regime 
enterprise must have a substantial share in 
the business; (b) to MFN, MA, and NT to cover the limitation of cr oss-alpine transit to 
650,000 rides, the bilateral road transport 
agreements, and the prohibition of cabotage unless the vehicle carries a Swiss vehicle document and Swiss lice nce plate; (c) to MA 
and NT to cover cantonal and municipal enactments on taxi services that provide monopolies, concessions or licences to specific operators or impose various measures restricting market access and/or national treatment. With the qualification: that Switzerland reserves the right to maintain, modify or adopt any measures of the type described  
11.F.b Freight 
transportation 
(CPC 7123) No commitments + 2 MFN 
exemptions 
a) to the benefit of all partners 
in bilateral agreements on road 
transport or other 
arrangements relating to road 
transport or that may be 
desirable, to allow, on the basis 
of mutual access to the market, 
for transport services by 
vehicles registered in countries 
other than Switzerland to 
undertake transportation of 
goods and/or passengers in, 
into, out of, or in transit 
through Swiss territory, 
normally based on bilateral 
agreements 
 
b) to the benefit of EU only, to 
allocate transit quota for 
perishable or otherwise urgent 
cargo by trucks heavier than 
28 tonnes registered in 
countries other than 
Switzerland in case capacity of 
combined transport is 
exhausted Positive listing agreements 
EFTA-CHL, EFTA-SGP: 1) unbound; 2) none; 
3) MA: none for vehicles having an actual 
total weight of less than 40 t; NT: vehicles 
must be registered in Switzerland. 
EFTA-CHL, EFTA-SGP: no MFN exemptions   
 
EFTA-COL, EFTA-KOR: (excluding cabotage) 
1) unbound; 2) 3) none + 1 MFN exemption 
to the benefit of all partners in bilateral 
agreements on road transport or other 
arrangements relating to road transport or 
that may be desirable to  regulate, on the 
basis of mutual access to the market, for 
transport of goods and/or passengers by 
vehicles registered in countries other than 
Switzerland in, into, out of, or in transit 
through Swiss territory, normally pursuant to 
bilateral agreements 
 
Other agreements 
EFTA: special protocol on land transport, 
maintaining the prohibition of cabotage, 
abolishing transit quotas, incorporating EU 
liberalization (regul ation 881/92) and 
foreseeing joint agreements for triangular 
quotas with third parties while grandfathering 
existing bilateral arrang ements in this regard 
 50 bilateral agreements (see 2002 
road transport agreement with the 
EU, which raises the maximum 
permissible weight of vehicles from 
28 to 40 tonnes, liberalizes road 
transport between the EU and 
Switzerland, and opens up the 
market for transport between EU 
member states ( grand cabotage ) to 
Swiss carriers. Cabotage (i.e. road 
transport within Switzerland or 
within a member state of the EU) 
was not liberalized.  
 
Mutual recognition of the licences 
needed to gain admission to the 
occupation; a general 
harmonization of technical 
standards; and coordination of 
transport policies, in particular for 
combined rail-road transport. The 
EU-Switzerland agreement does not 
affect triangular quotas for freight  Cross-border/mode1 
and transit: see 
previous column 
 
Prohibition of cabotage 
 
Overall regime identical 
to that provided under 
the JPN-CH FTA via the 
obligations contained in 
Articles 57.2.a and 
90.1 a and b of this 
agreement   
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- 157 - Subsectors GATS FTAs Other preferential treatment Applied regime 
CH-JPN: reservation to MFN, MA, and NT to 
cover the limitation of cr oss-alpine transit to 
650,000 rides, the bilateral road transport 
agreements, and the prohibition of cabotage 
unless the vehicle carries a Swiss vehicle 
document and Swiss licence plate  
11.F.c Rental of 
commercial vehicles with operator (CPC 7124) 1) 2) 3) none Positive listing agreements 
EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP: 
1) 2) 3) none  Other agreements 
EFTA: no reservations CH-JPN: no reservations None 
 Overall regime identical 
to that provided under the JPN-CH FTA via the obligations contained in Articles 57.2.a and 90.1 a and b of this agreement  
 
11.F.d Maintenance 
and repair of road 
transport 
equipment 
(CPC 6112 + 8867) 1) unbound*, 2) 3) none Positive listing agreements 
EFTA-CHL, EFTA-COL, EFTA-KOR,EFTA-SGP: 
1) unbound*; 2) 3) none 
 
Other agreements 
EFTA: no reservations 
CH-JPN: no reservations None 
 Overall regime identical 
to that provided under 
the JPN-CH FTA via the 
obligations contained in 
Articles 57.2.a and 
90.1 a and b of this 
agreement  
11.F.e Supporting 
services for road transport  (CPC 744) No commitments Positive listing agreements 
EFTA-CHL, EFTA-SGP: no commitments 
EFTA-COL, WEFTA KOR: 1) 2) 3) none  Other agreements 
EFTA: no reservations CH-JPN: no reservations None 
 Overall regime identical 
to that provided under the JPN-CH FTA via the obligations contained in Articles 57.2.a and 
90.1 a and b of this 
agreement  
a The full description of these reservations reads : 
 "(A) FEDERAL LEVEL : State monopoly for regular transport of passengers (SR 744.10, Article 2; SR 747.201, Article 7). Concession or authorization  is 
required for regular transport of passengers (Article 4 SR 744.11) . Concession is required for regular transport as defined in Article 5 of the Federal Ordinance 
on concessions for passenger transportation (SR 744.11). Such a concession may be granted under the condition that the transpor t service is supplied in a 
practical and economical way and,  in addition, that either the transport service does not negatively affect public transport en terprises or that the transport 
service establishes an important new transport connection (SR 744. 10, Article 5; SR 744.11, Article 13). Authorization is requi red for regular transport as 
defined in Article 6 of the Federal Ordina nce on concessions for passenger transporta tion (SR 744.11), namely for regular cross -border transport, certain 
international shuttle transport and for the transport of passengers between airports and tourist regions. To obtain an authoriz ation for regular cross-border 
and certain international shuttle transport by road, the newly introduced transport services must not compete in any way with p ublic or other existing 
transport services and an enterprise of Sw itzerland must have a substantial share in the business. Such an authorization does n ot allow the supply of 
transport services between points within the territory of Switzerland (cabotage). To obtain an authorization for the transport of passengers between airports 
and tourist regions, the conditions for obtaining a concession must be met (SR 744.11, Articles 6, 37, 38, 39 b, 40 and 47 a). Authorization is required for 
enterprises undertaking regular passenger transport or  freight transport by road (SR 744.10, Article 8). 
 CANTONAL LEVEL : Authorization issued by cantons is required for regular passen ger transport as defined in the Federal Ordinance on concession s for 
passenger transport (SR 744.11, Article 6). To obtain such authorization, the newly introduced service must not compete in any way with public transport 
(SR 744.10, Article 4; SR 744.11, Articles 13 and 32)."  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 158 -  (B) Alps traffic shall not exceed 650,000 rides per year (SR 740. 1, Article 1). The Federal Law on the shift to rail of freigh t traffic crossing the Alps provides 
the possibility to introduce non-discriminatory measures to achi eve the objective of shifting fre ight traffic to rail (SR 740.1 , Article 2). Switzerland reserves 
the right to accord less favourable treatment to services or se rvice suppliers of Japan for transport of goods and/or passenger s by vehicles registered in 
countries other than Switzerland in, into, out of, or in transit through Swiss territory than that accorded to like service sup pliers of any other country, 
normally pursuant to bilateral road transport agreements (SR 741.01, Article 106; SR 0.741). Vehicles must carry a Swiss vehicl e document and a Swiss 
licence plate if they transport passengers or  freight between points within the territo ry of Switzerland (prohibition of cabota ge) on a commercial basis 
(SR 741.51, Article 115). 
 (C) Cantonal and municipal enactments on taxi services provide monopolies, concessions or licenc es to specific operators or im pose various measures 
restricting market access and/or national treatment. Qualificatio n: Switzerland reserves the right to maintain, modify or adopt  any measures of the type 
described. 
 Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120.  
 Source:  Compiled by the WTO Secretariat.  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 159 - Table A4. 6 Summarized trade regimes on selected railway s transport services and related construction services  
Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
11.F.a., b. and c., 
Passenger and freight transportation and pushing and towing services (CPC 7111-7113) 1) unbound; 
2) none; 3) concession required with economic needs test and absence of a more ecological and economical means of transport EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP 
1) unbound; 2) none; 3) concession required with economic needs test and absence of a more ecological and economic al means of transport 
 EFTA-MEX: no commitments  CH-JPN: concession required to operate railway infrastructure with economic needs test and absence of a more ecological and economical means of transport and no affectation of substantial public interest s such as zoning plans, 
the protection of the environment and of the landscape or defence Authorization is required for access to railway infrastru cture, only enterprises 
domiciled in Switzerland and registered in a cantonal commercial register or possessing a 
concession to construct and or operate such an 
infrastructure may obtain such authorization; future measures at cantonal level  CH-EU land 
transport agreement: right of access and transit for railways companies and railways grouping 
of both parties
a Concession required to operate railway infrastructure 
with economic needs test and absence of a more ecological and economical mean of transport and no 
impact on substantial public interest such as zoning plans, the protection of the environment and of the landscape or defence (SR 742.101, articles 5 and 6)   Authorization is required for access to railway infrastructure, only en terprises domiciled in 
Switzerland and registered in a cantonal commercial 
register or possessing a concession to construct and or operate such an infrast ructure may obtain such 
authorization (SR 742.722, article 3) 
11.F.d Maintenance 
and repair of rail 
transport 
equipment (part of 
CPC 8868) 1) unbound*; 
2) 3) none EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP 1) 
unbound*; 2) 3) none 
 
EFTA-MEX: no commitments 
 
CH-JPN: future measures  at cantonal level  No restrictions  
11.F.e Supporting 
services for railways transport No commitments EFTA-CHL, EFTA-SGP: 1) unbound; 2) none; 3) 
concession required with economic needs test and absence of a more ec ological and economical 
means of transport  EFTA-COL, EFTA-KOR; EFTA-MEX: no commitments  CH-JPN: as under passenger and freight transport  Concession required to operate railway infrastructure 
with economic needs test and absence of a more ecological and economical means of transport and no 
impact on substantial public interest such as zoning plans, the protection of the environment and of the landscape or defence (SR 742.101, articles 5 and 6)  Authorization is required for access to railway infrastructure, only en terprises domiciled in 
Switzerland and registered in a cantonal commercial 
register or possessing a concession to construct and or operate such an infrast ructure may obtain such 
authorization (SR 742.722, article 3)  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 160 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
Part of 3.B General 
construction work 
for civil 
engineering: 
- part of CPC 51310 
general 
construction work 
for civil engineering 
for [highways, 
streets, roads], 
railways [and 
airfield runways] 
- part of CPC 5320 
general 
construction work 
for civil engineering 
for [highways, 
streets, roads], 
railways for 
bridges, elevated 
highways, tunnels 
and subways  1) unbound*; 
2) 3) none EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP: 1) 
unbound*; 2) 3) none 
 
EFTA-MEX: no commitments 
 
EFTA (itself): no reservations (transposition of 
the EU rules on vertical separation and access) 
 
CH-JPN: concession required to construct railway 
infrastructure with economic needs test and 
absence of a more ecological and economical 
means of transport and no impact on substantial 
public interest such as zoning plans, the 
protection of the environment and of the 
landscape or defence (SR 742.101, Articles 5 and 
6)   Concession required to construct railway 
infrastructure with economic needs test and absence 
of a more ecological and economical means of 
transport and no impact on substantial public 
interest such as zoning pl ans, the protection of the 
environment and of the landscape or defence 
(SR 742.101, articles 5 and 6) 
a For an English version see: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX: 22002A0430(03):EN:HTML, articles 23- 29 and 33-36. 
Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120.  
Source:  Compiled by the WTO Secretariat.  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 161 - Table A4. 7 Summarized trade regimes on postal and courier services  
Subsectors GATS FTAs Other preferential 
treatment Applied regime 
2.A Postal services 
(CPC 7511) No commitments  Positive listing agreements 
EFTA-CHL: no commitments 
 EFTA-COL, EFTA-KOR: for express delivery services 
(part of CPC 7511 and CPC 7512)
a: 1) 2) 3) none 
 
Other agreements 
EFTA: unbound for the chapters on trade in services and on investment  CH-JPN: reservation on mark et access an d national 
treatment for: Swiss Post  (Die Schweizerische 
Post; LaPoste Suisse; La Posta Svizzera) has the exclusive mandate to guar antee universal postal 
service. This covers the pick-up, transport, and 
delivery of domestically and internationally addressed letters up to 50 g and parcels up to 
20 kg, as well as the pick-up, transport, and delivery of subscribed ne wspapers and periodicals. 
The same regime applies for the Swiss Post and private postal operators since 1 October 2012. Legal basis: SR 741.11, articles 91 and 92. (Private postal operators need permission) None No restriction for express delivery services 
 Reserved services are provided exclusively by Swiss Post (monopoly). They include the delivery of letters posted in Switzerland or originating from abroad and whose weight does not exceed 50 g  Non-reserved services  are services where 
Swiss Post is in competition with private providers. Those services are subject to a concession regime when  delivered by private 
operators. Where Swiss Post can prove that the costs of universal service are not covered in full, fees on postal services 
subject to concession might be perceived to contribute to the financing of universal service. Non-reserved services include (a) 
postal deliveries of lett ers above 50 g posted 
in Switzerland or originating from abroad, (b) postal delivery destined for abroad, (c) transport of parcels up to 20 kg, (d) transport of periodicals and newspapers, (e) payment services  Free services are services that Swiss Post may provide in addition to universal service in competition with private operators from Switzerland and abroad, for instance Express Mail Services and Mail Exchange Services  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 162 - Subsectors GATS FTAs Other preferential 
treatment Applied regime 
2.B Courier services No commitments Positive listing agreements 
EFTA-CHL: no commitments 
 
EFTA-COL, EFTA KOR EFTA SGP: for express 
delivery servicesa (part of CPC 7511 and CPC 
7512): 1) 2) 3) none 
 
EFTA-SGP: for parcel mail when the weight 
exceeds 2kg: 1) 2) 3) none 
 
Other agreements 
 
EFTA: unbound for the chapters on trade in 
services and on investment 
 
CH-JPN: reservation on mark et access an d national 
treatment for: Swiss Post  (Die Schweizerische 
Post; LaPoste Suisse; La Posta Svizzera) has the 
exclusive mandate to guar antee universal postal 
service. This covers the pick-up, transport, and 
delivery of domestically and internationally 
addressed letters up to 50 g and parcels up to 
20 kg, as well as the pick-up, transport, and 
delivery of subscribed ne wspapers and periodicals. 
The same regime applies for the Swiss Post and 
private postal operators since 1 October 2012. 
Legal basis: SR 741.11, articles 91 and 92. (Private 
postal operators need permission) None No restriction for express delivery services 
 
Reserved services are exclusively provided 
by Swiss Post (monopoly). They include the 
delivery of letters posted in Switzerland or 
originating from abroad and whose weight 
does not exceed 50 g 
 
Non-reserved services  are services where 
Swiss Post is in competition with private 
providers. Those services are subject to a 
concession regime when  delivered by private 
operators. In cases where Swiss Post would 
bring the proof that the costs of universal 
service are not integrally covered, fees on 
postal services subject to concession might 
be perceived to contribute to the financing 
of universal service.  These non-reserved 
services include (a) postal deliveries of 
letters posted in Switzerland or originating 
from abroad and whose weight is above 
50 g, (b) postal delivery destined for 
abroad, (c) transport of parcels up to 20 kg, 
(d) transport of periodicals and newspapers, 
(e) payment services 
 
Free services are services that Swiss Post 
can provide in addition to universal service 
in competition with private operators from 
Switzerland and abroad for instance EMS 
and Mail Exchange Services 
a "Express delivery services" are taken as letter deliveries at five times the price applied by Swiss Post (La Poste Suisse/Die  Schweizerische Post) for delivery of 
a priority letter of first level of weight and format, and as pa rcel deliveries at double the basic tariff applied by Swiss Pos t for the delivery of a parcel of first 
level of weight, according to Swiss law. 
Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120.  
Source: Compiled by the WTO Secretariat.  
  WT/TPR/S/280 •  Switzerland and Liechtenstein  
 
- 163 - Table A4. 8 Summarized trade regimes for distribution services  
Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
4.A Commission 
agent services 
(CPC 621)  Commission agents' 
services excluding services related 
to goods subject to import 
authorization, to pharmaceutical products, toxics, explosives, weapons and ammunition, and precious metals 
(part of CPC 6211): 1) 2) none; 3) 
some cantons have restrictions on 
sales area Positive listing agreements 
EFTA-CHL, EFTA-SGP: same as GATS 
commitments  
 
EFTA-COL, EFTA-KOR: 1) 2) 3) none  
Other agreements 
EFTA: unbound for trade in services and the 
investment chapters fo r commission agents' 
services related to goods subject to import authorization, pharmaceutical products, toxics, explosives, weapons and ammunition, and precious metals 
 
CH-JPN: 6 reservations echoing the exclusions 
and qualifications in the GATS commitments and the positive listing agreements (goods subject to 
import authorization, ph armaceutical products, 
toxics, explosives, weapons and ammunition, and precious metals, authorization procedures for large scale outlets).  
All these reservations are for existing measures 
and for both MA and NT except for three: authorization procedures for large-scale outlets (existing, only MA); ammunitions (including 
future measures); and material of war (idem)
a None  Overall regime identical to that 
provided under the JPN-CH FTA 
via the obligations contained in 
articles 57.2.a and 90.1 a and b of this agreement 
4.B Wholesale trade 
services 
(CPC 622) Wholesale trade services excluding 
services related to goods subject to 
import authorization, to 
pharmaceutical products, toxics, 
explosives, weapons and 
ammunition, and precious metals 
(part of CPC 622) 
1) 2) none; 3) some cantons have 
restrictions on sales area Positive listing agreements 
EFTA-CHL, EFTA-SGP: same as GATS 
commitments 
 
EFTA-COL, EFTA-KOR: 1) 2) none; 3) none 
except for large-scale dist ribution facilities, which 
are subject to authorization procedures at 
cantonal and/or municipal level that may lead to 
the rejection of the authorization; no economic 
needs tests or other market access restrictions 
apply 
 
 None Overall regime identical to that 
provided under the JPN-CH FTA 
via the obligations contained in 
articles 57.2.a and 90.1 a and b 
of this agreement   
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 164 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
Other agreements 
EFTA: no reservations  
CH-JPN: 6 reservations echoing the exclusions 
and qualifications found in the GATS 
commitments and the positive listing agreements 
(goods subject to import authorization, 
pharmaceutical products , toxics, explosives, 
weapons and ammunition, and precious metals, 
authorization procedures for large scale outlets).  
All these reservations are for existing measures 
and for both MA and NT except for three: 
authorization procedures for large-scale outlets 
(existing, only MA); ammunitions (including 
future measures); and ma terial of war (idem)  
4.C Retailing services 
(CPC 631, 632)  Retailing services excluding 
services related to goods subject to 
import authorization, to 
pharmaceutical products, toxics, explosives, weapons and ammunition, and precious metals; not covered is retailing through mobile sales unit (part of CPC 631 + part of 632 + part of 6111 + part of 6113 + part of 6121) 
1) 2) none; 3) some cantons have 
restrictions on sales area; 4) 
unbound except as indicated in the horizontal commitments+ commercial presence required  Positive listing agreements 
EFTA-CHL, EFTA-SGP: same as GATS 
commitments 
 
EFTA-COL, EFTA-KOR: 1) 2) none; 3)  none 
except for large-scale dist ribution facilities, which 
are subject to authorization procedures at cantonal and/or municipal level that may lead to the rejection of the authorization; no economic needs tests or other market access restrictions apply; 4) unbound except  as indicated in the 
horizontal commitments + commercial presence required 
 
Other agreements 
EFTA: unbound for trade in services and the 
investment chapters for re tailing services related 
to goods subject to import authorization, to 
pharmaceutical products , toxics, explosives, 
weapons and ammunition, and precious metals, and for retailing services through mobile sales unit 
 CH-JPN: 7 reservations echoing the exclusions 
and qualifications found in the GATS 
commitments and the positive listing agreements (goods subject to import authorization, pharmaceutical products , toxics, explosives, None  Overall regime identical to that 
provided under the JPN-CH FTA 
via the obligations contained in 
Articles 57.2.a and 90.1 a and b of this agreement   
  WT/TPR/S/280 •  Switzerland and Liechtenstein  
 
- 165 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
weapons and ammunition, and precious metals, 
authorization procedures for large scale outlets).  
All reservations are for existing measures and for 
both MA and NT except for three: authorization procedures for large-scale outlets (existing, only 
MA); ammunitions (including future measures); and material of war (idem) 
4.D Franchising 
services 
(CPC 8929) 1) 2) 3) none Positive listing agreements 
EFTA-CHL, EFTA COL, EFTA-KOR, EFTA-SGP: 
same as GATS commitments 
 
Other agreements: 
EFTA, CH-JPN: no  None Overall regime identical to that 
provided under the JPN-CH FTA 
via the obligations contained in 
Articles 57.2.a and 90.1 a and b 
of this agreement  
4.E Other 
distribution services No commitments  Positive listing agreements 
EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP: no 
commitments  
 
Other agreements 
EFTA, CH-JPN: no reservations None Overall regime identical to that 
provided under the JPN-CH FTA 
via the obligations contained in Articles 57.2.a and 90.1 a and b of this agreement  
a For full descriptions of  these six reservations, which are valid for commission agents, and wholesale and retail trade servic es, as well as of that of a seventh 
(precious metal), which is valid only for retail trade, see ht tp://www.mofa.go.jp/region/europe/ switzerland/ epa0902/annex3.pdf , pp 488 to 497. 
Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120. 
Source: Compiled by the WTO Secretariat. 
  
  WT/TPR/S/280 • Switzerland and Liechtenstein  
 
- 166 - Table A4. 9 Summarized trade regimes on  tourism and travel related services  
Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
9.A Hotels and 
restaurants (CPC 641-643) 1) unbound* except unbound for 
catering (CPC 6423); 2) none; 3) MA: federal law enables cantons to grant licences for restaurants based on economic needs (assessment of economic needs is based on criteria such as population, degree of built-up area, type of neighbourhood, touristical interests, number of existing restaurants); NT: residency of licence holder in same canton may be required in some cantons; passing an examination in same canton may be required; 4) MA: unbound except as indicated in horizontal commitments + commercial presence in Switzerland required; NT: 
residency of licence holder in same 
canton may be required in some cantons Positive listing agreements  
EFTA-CHL, EFTA-SGP: same as GATS 
commitments   EFTA-COL, EFTA-KOR: 1) unbound*; 2) 3)none except that (NT) passin g an exam in the same 
canton may be required, residency of licence holder in the same canton is required in the canton of Jura; 4) MA: unbound except as indicated in horizontal commitments + commercial presence in  Switzerland required; 
NT: residency of licence holder in the same canton is required in the canton of Jura   Other agreements 
EFTA: reservation to the investment chapter. Federal law enables cantons to grant licences 
for restaurants based on economic needs 
(assessment of economic needs is based on criteria such as popula tion, degree of built-up 
area, type of neighbourhood, touristical interests, number of ex isting restaurants) 
 CH-JPN: no reservation  None Erga omnes (except for Japan 
where no reservations apply and for EFTA where only the economic needs test on restaurants applies):  1) unbound*; 2) 3) none except that (NT) passing an exam in the same canton may be required, residency of licence holder in the same canton is required in the canton of Jura; 4) MA: unbound except as indicated in horizontal commitments + commercial presence in Switzerland required; NT: residency of licence holder in the same canton is required in the canton of Jura  
9.B Travel agencies 
and tour operators 
services (CPC 7471) 1) 2) 3) none Positive listing agreements  
EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP: 
same as GATS commitments 
 
Other agreements 
EFTA: no reservation 
CH-JPN: no reservation None 1) 2) 3) none  
  WT/TPR/S/280 •  Switzerland and Liechtenstein  
 
- 167 - Subsectors GATS FTAs Other 
preferential 
treatment Applied regime 
9.C Tourist guides 
services (CPC 7472) Unbound*; 2) none; 3) NT: in order 
to work as a mountain guide or ski 
instructor, passing of an examination is required; cantons may restrict access to such exams for foreigners and may restrict the ability of foreign mountain guides, and ski instructors, to practise independently; residency in same canton may be required in some cantons; 4) unbound except as indicated in the horizontal commitments + MA: in some cantons commercial presence may be required; NT: in order to work as a mountain guide or ski instructor, passing of an examination is required; cantons may restrict access to such exams for foreigners and may restrict the ability of foreign mountain guides, and ski instructors, to practise independently
 Positive listing agreements  
EFTA-CHL, EFTA-SGP: same as GATS commitments  EFTA-COL, EFTA-KOR: 1) unbound*; 2) none; 3) NT:
 none except that in order to work as a 
mountain guide passing of an exam is required, the access to which ma y be restricted for 
foreigners in some cant ons; some cantons may 
restrict the ability of foreign mountain guides to practise independently; 4) unbound except as 
indicated in horizontal commitments + NT: in order to work as a mountain guide passing of an exam is required, the access to which may be restricted for foreig ners in some cantons; 
some cantons may restrict  the ability of foreign 
mountain guides to practise independently  Other agreements 
EFTA: no reservation CH-JPN: no reservation   Erga omnes (except for EFTA and 
Japan where no reservation apply): 
1) unbound*; 2) none; 3) NT: none except that in order to work as a mountain guide passing of an exam is required, the access to which may be restricted for foreigners in some cantons; some cantons may restrict the ability of foreign mountain guides to practise independently; 4) unbound except as indicated in horizontal commitments + NT; in order to work as a mountain guide passing of an exam is required, the access to which may be restricted for foreigners in some cantons; some cantons may restrict the ability of foreign mountain guides to practise independently  
 
9.D Other tourism 
and travel related 
services No commitments Positive listing agreements 
EFTA-CHL, EFTA-COL, EFTA-KOR, EFTA-SGP: 
No commitments 
 
Other agreements 
EFTA: no reservation 
CH-JPN: no reservation   No restrictions  
Note: CPC means the United Nations Provisional Central products Classification. Restrictions to national treatment are indicate d only to the extent that they differ 
from or add specific restrictions to mark et access restrictions; mode 4 commitments are indicated only if they differ from the standard entry "unbound except 
as indicated in the horizontal commitments". Some entries have been summarized so as to fit within the tables but their substan ce has been preserved and 
the text checked by the examined member; "unbound*" means unboun d due to lack of technical feasibility. A classification headin g followed by an asterisk 
(e.g. CPC51310*) means "part of" the heading, unless otherwise expl icitly stated. The nomenclature used for the first column of  the table is that of document 
MTN.GNS/W/120.  
Source:  Compiled by the WTO Secretariat. 
 
__________