WT/TPR/M/280  
12 September  2013 
(13-4754) Page: 1/51 
Trade Policy Review Body  
23 and  25 April 2013   
 
TRADE POLICY REVIEW  
SWITZERLAND AND LIECHTENSTEIN  
RECORD  OF THE MEETING  
Chairperson:  H.E. Eduardo Muñoz Gómez  
 
 
Page 
1   INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ ......................  2 
2   OPENING STATEMENT BY  THE REPRESEN TATIVE OF SWITZERLAND AND 
LIECHTENSTEIN  ................................ ................................ ................................ ...............  4 
3   STATEMENT BY THE DIS CUSSANT  ................................ ................................ .............  13 
4   STATEMENTS BY MEMBER S................................ ................................ ........................  16 
5   REPLIES BY THE REPRE SENTATIVE OF SWITZER LAND AND LIECHTENSTE IN 
AND ADDITIONAL COMME NTS ................................ ................................ .......................  44 
6   CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ ........................  50 
 
 
Note: Advance written questions by WTO Members and the replies provided by Switzerland and 
Liechtenstein  are reproduced in document WT/TPR/M/ 280/A dd.1 and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The fourth joint  Trade Policy Review of Switzerland and Liechtenstein was held on  23 and 
25 April 2013 . The  Chairperson H. E. Mr. Eduardo Muñoz Gómez (Colombia ) welcomed  the 
delegation of Switzerland headed by H.E. Mr. Didier Chambovey , Ambassador, Federal Council 
Delegate for Trade Agreements , and the delegation of Liechtenstein headed by H.E. Mr. Norbert 
Frick, Ambassador an d Permanent Representative of Liechtenstein ; the rest of the delegation from 
Bern and Vaduz and colleagues from the M ission in Geneva ; and the discussant, H.E. Ms Mariam 
Md Salleh  (Malaysia) . 
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews  and the main elements of 
the procedures for the meeting. The Report  by Switzerland and Liechtenstein  was contained in 
document WT/TPR /G/280  and that of the WTO Secretariat in WT/TPR /S/280 . 
1.3.  Questions by the following delegations had been submitted in writi ng at least two weeks in 
advance and had been transmitted to the delegation of Switzerland and Liechtenstein : the United 
States; Singapore; Australia; Colombia; Chinese Taipei; China; New Zealand; Republic  of Korea; 
the European Union; Argentina; Hong Kong , China; Chile; Japan; Costa Rica; Brazil; Canada; 
Mexico; and India . The following delegations submitted written questions after the two -week 
deadline: Ukraine; Malaysia; Thailand; Norway; Turkey; Pakistan; El Salvador; and Ecuador . 
1.4.  Based on the reports p repared for this meeting by Switzerland, Liechtenstein and the 
Secretariat, it can be said that both Switzerland and Liechtenstein have recovered well from the 
global economic crisis. As a result of Switzerland's debt -brake rule, substantial fiscal surplus es 
were recorded at the federal level over 2006 -08, which have allowed for the implementation of 
economic stabilization measures 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. How ever, with the escalation of the 
sovereign debt crisis in the euro zone in spring 2010, the economic recovery of Switzerland and 
Liechtenstein lost momentum in 2011.  
1.5.  Trade is an important driving force of the Swiss and Liechtenstein economies, with the GD P 
shares of trade in goods and services exceeding 100%. The main recent challenge for the two 
economies has been the strong appreciation of the Swiss Franc, which has been threatening to 
undermine competitiveness.  
1.6.  On trade regimes, the reports indicate th at, while Switzerland and Liechtenstein remain 
committed to the multilateral trading system and to an early conclusion of the Doha Round, they 
have also been negotiating new bilateral/regional free trade agreements with some of their trading 
partners, main ly under the ambit of the European Free Trade Association (EFTA). Since their last 
Review, eight new FTAs concluded under EFTA have entered into force and a bilateral FTA between 
Switzerland and Japan has entered into force in 2009. This large network of f ree trade agreements 
increases the complexity of both Switzerland's and Liechtenstein's trade regimes.  
1.7.  Overall, this Review provides Members an opportunity to exchange views on a range of trade 
policy issues. Based on the reports and the questions raised i n advance, these issues include:  
 Agriculture:  From an economic point of view, the importance of agriculture for Switzerland 
and Liechtenstein remains marginal despite high protection by various tariff and non -tariff 
measures. Overall government support by Switzerland represents 2.8 times the OECD 
average.  
 MFN Tariffs:  There has been no major change in the tariff regime since 2008. The tariff 
comprises only specific rates and affords higher protection to ag ricultural products than to 
non-agricultural goods.  The corresponding ad valorem equivalents range from zero to 
1,676%, and almost 40% of tariff lines carry non -zero rates of less than 2% (nuisance 
rates). The simple average MFN rate increased from 8.1% in 2008 to 9.2% in 2012, 
reflecting in part the apprec iation of the Swiss franc.  
 Technical Barriers to Trade:  In 2010, Switzerland unilaterally introduced the "Cassis de 
Dijon" principle to reduce technical barriers to trade but given its numerous exceptions, the 
benefits are limited.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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   Intellectual property:  Switzerland attaches great importance to intellectual property. The 
main development is Switzerland's unilateral decision to introduce EEA -wide exhaustion 
principle for patent inventions.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F SWITZERLAND (H.E. MR. DIDIER 
CHAMBOVEY) AND LIECH TENSTEIN (H.E. MR. N ORBERT FRICK)  
2.1.  It is a pleasure to be sharing with you this morning the main aspects of the economic and 
trade policy of Switzerland. This year once again, this review is being carried out in conjunction 
with t he Principality of Liechtenstein.  
2.2.  Allow me first to point out the outstanding quality of the Secretariat Report, which clearly and 
succinctly sets out the economic and trade policies of Switzerland and Liechtenstein, describing, on 
the one hand, the polici es largely formulated by Switzerland and, on the other, the areas in which 
each partner develops its own policies. The Secretariat has carried out an analysis which will be of 
great interest to our respective countries, and I am most grateful to it for its  work. I would also 
like to extend my sincere thanks to the head of the Malaysian  delegation to the WTO, H.E. 
Ms Mariam Md Salleh, who has accepted the role of discussant, and I thank the Members which 
have done us the honour of asking often challenging bu t always relevant questions to which we 
will return on Thursday.  
2.3.  After these introductory remarks, I will focus mostly on the following four points: first, I will 
discuss recent economic developments and the outlook for the Swiss economy; I will then go ov er 
the significance of integration into the world economy for the Swiss economy; third, I will outline 
our foreign economic policy by highlighting some of the most important reforms introduced 
domestically. Finally, I will briefly address Switzerland's vie ws in the current context of the WTO 
negotiations.  
2.4.  Afterward, my colleague, Ambassador Norbert Frick, will step in to discuss the issues specific 
to Liechtenstein.  
Recent economic developments and outlook  
2.5.  The internal economic reforms resolutely undertaken  by Switzerland since 1993, the growing 
globalization of trade, and closer economic integration with Europe, especially the effective 
implementation of the agreement on free movement of persons with the EU/EFTA, have resulted in 
the Swiss economy's rapid r ecovery from the global recession which followed the outbreak of the 
financial and economic crisis in 2008 2009. A moderate rise in prices, low rates of interest, sound 
public finances, and corporate restructuring before the crisis, as well as the revival in global trade, 
constituted the basis for strong domestic demand and an upturn in the export led economy since 
the end of 2009. The noticeable 1.9% drop in Swiss gross domestic product (GDP) in 2009 
gradually gave way to a welcome phase of recovery which reached 3% in 2010.  
2.6.  However, the emergence of the debt crisis in euro  zone countries in 2010 changed the 
situation once again for the Swiss economy. The fear that Greece's debt crisis would spread to 
other countries, even, possibly, to major countries in E urope, led investors to seek safe 
investments such as gold, real estate, and strong currencies. The Swiss franc thus rose sharply in 
comparison with the situation in the real economy. Moreover, since the second half of 2011, the 
Swiss economy has been faci ng a marked decline in global demand. Industry and tourism, two key 
sectors for Switzerland's economy, have been particularly affected. In addition, the financial 
sector, hitherto the engine driving Switzerland's growth, has been suffering since the bursti ng of 
the speculative real estate bubble in the United States. In 2011, value added in the financial sector 
was around 20% below the 2007 level.  
2.7.  According to the latest available estimates, in 2012, Switzerland's GDP growth rate reached 
1% in real terms. I n comparison with the fourth quarter of 2011, GDP even g rew by 1.4%. It was 
mostly household consumer spending and government sector spending which contributed 
positively to GDP growth. Gross fixed capital formation also provided a boost, albeit a far weak er 
one. On the other hand, trade in goods and services negatively affected GDP. So long as the global 
economic situation does not deteriorate, for 2013 the Swiss authorities still forecast that, at 1.3%, 
GDP growth in real terms will be slightly stronger t han in 2012. They continue to expect a slight 
rise in the unemployment rate, which should not exceed an annual average of 3.3%, far below the 
level in many OECD countries.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  2.8.  As regards Switzerland's foreign trade, the first quarter of 2013 saw a decline in b oth exports 
and imports, as a result of there being three fewer business days than in 2012. Upon correction of 
this difference, exports and imports nonetheless showed a rise of, respectively, 3.8% and 2.6% in 
nominal value. Both import and export prices ro se noticeably, so that while exports adjusted for 
working days rose by a further 2.4% in real terms, the volum e of imports dropped slightly ( 1%). 
In the first three months of the year, foreign sales in four of the nine principal export industries 
increased , the top spot being held by the foodstuffs, beverages, and tobacco industry (+10.6% in 
nominal terms). Watchmaking, for its part, increased by "only" 2.4%, whereas one year earlier it 
had leapt by 17.5%. The machinery and electronics industry brought up t he rear with a downturn 
of 7.6%. In the markets, it was mostly sales to North America which trended up wards, while those 
to Oceania (5%) and Latin America ( 4%) fell significantly. Lesser decreases wer e recorded in sales 
to Europe (2%) and Asia ( 1%). The tr ade balance closed the first quarter of 2013 with a surplus of 
SwF 5.9 billion, in comparison with SwF 5.5 billion for the same period the previous year.  
2.9.  Turning to macroeconomic policies, I will begin by saying that monetary policy has remained 
unaltered since September 2011. The Swiss National Bank is keeping its floor rate of SwF 1.20 to 
the euro unchanged because the franc remains high. An appreciation of our currency would 
compromise price stability and would have serious consequences for the Swiss eco nomy. For this 
reason, the National Bank will resolutely continue to impose this floor rate and is prepared to buy 
unlimited amounts of foreign currency for this purpose. Moreover, the National Bank is leaving the 
three month Swiss franc Libor range unchan ged at 0% 0.25%. If the need arises, it is prepared to 
take additional measures at any time. That said, for over six months now, we have seen the euro's 
exchange rate remain, in keeping with supply and demand on the exchange markets, consistently 
above the  floor rate set by the Swiss National Bank.  
2.10.  Compared with international circumstances, government finances are in a favourable 
situation in Switzerland. Between 2009 and 2011, the regular financial balance of government 
departments remained generally posit ive, despite the deteriorating economic situation. 
Communes, however, had deficits, whereas cantons partly posted a surplus. These discrepancies 
continued in 2012. At the federal level, 2012 closed with a surplus of SwF 1.3 billion, whereas 
what had been e xpected was a balance of the accounts. Low interest payments made this 
improvement possible, despite a decline in revenue due in particular to the decrease in National 
Bank dividend distribution, as well as to a series of tax reforms such as the family tax  reform, 
measures to offset graduated inflation related increases in direct federal tax, and the elimination of 
a stamp duty. If extraordinary receipts resulting from the new allocation of mobile telephony 
frequencies are taken into account, the positive p ublic financing ba lance rises even higher, to 
SwF 2 billion.  
2.11.  The 2013 budget adopted last December by Parliament shows a very slight structural 
surplus of SwF 66 million, or 0.01% of GDP. At the end of March 2013, the Federal Council 
forecast additional ex penditures for a net amount of 248 million. Nevertheless, it should be 
possible to meet the requirements of the debt break rule because a balance of appropriations 
normally remains at the end of the fiscal year. As regards the 2014 2016 financial plan esta blished 
last August, the Federal Council expects to maintain sufficient margin for manoeuvre. Thus, thanks 
to the programme for consolidation and review of responsibilities, which contains measures 
amounting to approximately SwF 570 million and which was s ubmitted to Parliament last 
December, the years 2014 to 2016 should produce structural surp luses of SwF 550 million to 
SwF 650 million. However, the latest decisions taken by the Federal Chambers at the spring 
session could substantially reduce, or even co mpletely eliminate, the expected margin for 
manoeuvre.  
Role of international trade for the Swiss economy     
2.12.  Let me now come to my second point, the importance of international trade for the Swiss 
economy. I nternational trade and investment  play a major ro le in the Swiss economy and in the 
formulation of Switzerland’s economic policy. Some facts help to understand this better.  
2.13.  First, manufacturing and the services’ sectors represent about 25% and 68%, respectively, 
of Swiss GDP. The Swiss economy was able to reinforce its specialization in key sectors of 
industrial production, including in areas of high technology and biotechnology, in addition to 
finance and insurance. Also, the share of exports and imports of goods and services (ex cluding 
valuables) repre sent 49.3% and 39. 5%, respectively, of Swiss GDP. A large number of companies WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  export more than 90% of their production. With globalization and the opening of new markets, 
they acquire raw materials and semi -finished goods at the best possible conditions on  very 
competitive international markets and tend to concentrate in Switzerland the high -tech and high 
value -added activities. Imports are facilitated by quick and efficient customs procedures as well as 
by average MFN customs duties of only abo ut 2.3% on m anufactured goods.  
2.14.  Globalization and the importance of global value chains for Switzerland are also major 
reasons why my country does not resort to anti -dumping nor to countervailing measures. Also, the 
use of anti -dumping tends to undermine the effects o f a country's own competition policy. In 
Switzerland where the price level is still high, the cheaper the inputs are to our industry or the cost 
of imports to our consumers, the better. The Swiss market is therefore wide open for industrial 
products. Econo mic activity proceeds in this area without subsidies except for processed 
agricultural products, which benefit from a system taking into account the differences in prices 
between dom estic and world raw materials.  
2.15.  The narrowness of the Swiss domestic marke t traditionally forced several key industrial 
sectors, as well as large banks, and the Swiss insurance companies to expand abroad. The fallout 
on Switzerland of these activities is generally both significant and positive as they help to keep 
within Switzer land research, production, and particular centers of competence and decision . But 
this high degree of integration in the world economy can also represent at times a major source of 
risk for our economy, particularly when a major crisis hits the world econo my, as we witnessed in 
2007-2009, in the wake of the world financial crisis.  
Switzerland’s foreign economic policy strategy and the need for domestic reforms  
2.16.  This leads me to my third point, i.e. Switzerland's foreign economic policy strategy and the 
need for domestic reforms linked to it. Given the paramount importance that international trade 
plays for the Swiss economy, it is not surprising that the Swiss Government attaches great 
importance to open world markets for goods and services , including in the  area of procurement , as 
well as to a solid protection of intellectual property . Essentially, Switzerland's foreign economic 
policy has not changed since the last review in December 2008. The present Swiss Government's 
priorities remains based upon the str ategy exposed in the introductory chapter of the Federal 
Council's Report of foreign economic policy of 2004. This strategy was further strengthened in 
2008 by the inclusion of a section on natural resources and in 2009 by a section on sustainability.  
2.17.  This strategy rests on three pillars . The first aims at improving access to foreign markets 
and establishing a coherent set of international regulations. The second targets the improvement 
of Switzerland’s competitiveness through the strengthening of domestic  competition, and the third 
was set with a view to integrate the largest possible number of countries in the world economy 
through contributions to the economic development in partner countries.  
Improvement of Market Access Abroad  
2.18.  The first of these object ives is to ensure nondiscriminatory access of Swiss suppliers to the 
markets of all countries. To reach this objective, Switzerland seeks, on the one hand, to eliminate 
obstacles to transborder trade, such as tariffs and non -tariff barriers. On the other h and, to 
guarantee a legal certainty and protection to our exporters and investors abroad, it is necessary to 
have trade rules established that are internationally transparent, efficient and compatible, and 
correctly applied by all.  
2.19.  This is why the Swiss Go vernment remains profoundly attached to an open multilateral 
trading system. In view of the growing tendency toward regionalism in trade, Switzerland 
considers the strengthening of the multilateral trading system as the priority . Multilateralism 
represents  indeed the best means to obtain both efficient market access rules and an adequate 
protection of all economic actors. Also, generally, smaller countries are in a better position to 
defend their interests in a multilateral setting, rather than find them co nfronted with a situation of 
disproportionate power relationships.  
2.20.  For the Swiss authorities, a key role must be assigned to the WTO in the areas of a 
progressive liberalization of trade, the establishment of rules, rights and obligations governing 
interna tional trade, as well as of the settlement of disputes. Also, it is necessary to reinforce the WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  multilateral trading system through a better integration in world trade of developing countries, 
economies in transition,  and least developed countries.  
2.21.  If Switz erland is also a party to a number of bilateral and regional trade agreements , it is 
because we consider that such agreements represent an additional tool to accelerate international 
trade liberalization. By no means, however, are they designed to be a sub stitute to an open 
multilateral trading system . Being geographically in the middle of Europe, Switzerland naturally 
developed close economic ties with the members of the European Union (EU). In addition to the 
1972 Free Trade Agreement, Switzerland conclud ed with the EU since 1999 the bilateral 
agreements I and II which cover a large array of areas. Since 2009, Switzerland and the EU 
further signed an agreement on customs facilitation and security, the agreement on education, the 
agreement on the protection  of designations of origin and geographical indications for agricultural 
products and foodstuffs, and the cooperation agreement with the European Defense Agency.  
2.22.  In addition to its bilateral agreements with the EU, the 1960 EFTA Convention, the Free 
Trade  Agreement with the Faroe Islands as well as the Free Trade and Economic Partnership 
Agreement with Japan which was concluded in 2009, Switzerland is presently a party to a network 
of 24 free trade agreements concluded in the framework of EFTA. Since the l ast review, 
agreements entered  into force with Canada in 2009; Albania and Serbia in 2010; Colombia and 
Peru in 2011; Ukraine;  Hong Kong, China and Montenegro in 2012. Most of the free trade 
agreements with partners outside of the euro -Mediterranean area a re agreements with an 
enlarged sectorial coverage. Beyond trade in goods, competition and intellectual property, these 
agreements generally include substantial commitments in the areas of services, investment and 
government procurement. In addition since m id-2010, Switzerland and the EFTA States propose to 
all of their negotiating partners the inclusion of specific provisions on tra de and sustainable 
development.  
2.23.  Switzerland intends to pursue its policy of concluding free -trade agreements with partners 
beyond the EU. Accordingly, Switzerland is currently negotiating in the framework of EFTA with 
Algeria, Bosnia -Herzegovina, four Central American States (Costa Rica, Guatemala, Honduras and 
Panama), India, Indonesia, Thailand, the Customs Union of Russia -Belarus-Kazakhstan, as well as 
with Viet  Nam. Negotiations with Malaysia are due to start in the near future. Bilaterally, 
Switzerland and China started negotiations toward a free trade agreement in January 2011. 
Finally, Switzerland and the other EFTA States a re exploring the possibility of opening negotiations 
with other trading partner s. 
Development of Switzerland’s Competitiveness  
2.24.  As second objective  of Switzerland’s foreign economic policy strategy, the Government 
considers that more competition on the dome stic market is essential for setting up competitive 
export structures in Switzerland. Particularly in the context of a strong Swiss franc, this requires 
the opening up in Switzerland of those economic sectors, such as agriculture and the health 
system, whi ch remain largely sheltered from foreign competition and are experiencing lower than 
average productivity, to limit the cost of inputs for companies, and to maintain, and possibly 
reduce, the cost of living in Switzerland, to make it affordable for its wor kers as well as for the rest 
of the population.  
2.25.  This is why Switzerland has been pursuing, since the first Growth Report was issued in 
2002, a thorough reflection on the causes of the weakness of its economic growth. The main six 
pillars of growth policy are to: (1) improve competition on the domestic market; (2) improve 
international economic integration;  (3) optimize public finances; (4) maintain a high level of labor 
participation; (5) strengthen human capital (educ ation, research and innovation);  and (6) 
establish pro -business framework conditions for companies.  
2.26.  In 2008, the Federal Council approved a second Report on Growth Policy for the period 
2008-2011. This report emphasized three goals: first, reducing the high level of costs in the 
economy; seco nd, improving the framework conditions for firms and third, improving professional 
training in Switzerland. Contrary to earlier growth enhancing measures, the 2008 -2011 Growth 
Policy was not limited to measures that the Federal Council could submit to Parl iament in its own 
right. International economic agreements and the economic policy of cantons were also considered 
as having a growth potential and were henceforth included in the action plan of the 2008 -2011 WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  Growth Policy. Unfortunately, some measures for eseen by this growth policy could not be 
implemented as the Federal Council had hoped for. Among other things, the total elimination of 
the postal monopoly or the reform of the  VAT could not be accomplished.  
2.27.  The Federal Council came also to the conclusion that, despite reforms undertaken so far, 
Switzerland's very favorable positions in international competitiveness rankings, and the 
impression that this country better weathered the international financial and economic crisis than 
others, reflect more the p ursuit of adequate macroeconomic policies than an underlying strong 
growth potential. Indeed, if Switzerland appears both competitive and rich, it is because of the 
high labor participation r ather than strong productivity.  
2.28.  Due to these findings, the Federa l Council is targeting the improvement of productivity 
growth, notably in domestic sectors in its new 2012 -2015 Growth Policy. It aims at improving 
productivity in the economy as a whole, so that domestic sectors no longer base their future 
growth excessiv ely on additional labor as in the past, but increasingly on improved productivity. 
Agriculture and the health sector are among the main sectors concerned. The 2012 -2015 Growth 
Policy also includes an additional pillar, namely to ensure the sustainability o f natural resources. 
The energy intensity indicator linking energy consumption to GDP illustrates this pillar of activity in 
order to foster environmentally friendly growth. In this context, pursuing climate objectives at a 
reasonable cost while using reso urces efficiently remains a major challenge. Developing 
infrastructure and linking Switzerland to international transport routes are other such challenges. 
Finally, the ageing of the population also has consequences. In Switzerland today more persons 
are leaving active life than new qualified young people are entering the labor mar ket.  
2.29.  Specifically, the 2012 -2015 Growth Policy contributes to productivity growth through: (1) a 
reform of the health sector; (2) a further reform of the agriculture policy; (3) a change in the 
orientation of energy policy as a result of the progressive elimination of nuclear energy without 
causing an excessive burden for companies; (4) the fixing of budgetary priorities over a period of 
eight years to be revised periodically; (5) the establishment of clear budgetary rules for the 
management of the social security system in order to prevent political blockades from threatening 
their financing and jeopardizing the promised benefits; and (6) a move toward e -Government with 
a view to allevia ting administrative procedures.  
2.30.  To accompany and reinforce Switzerland's Growth Policy, a number of structural reforms 
were implemented in recent years or are being considered on the domestic front to complement 
actions taken on the external front. I will limit myself to only mentioning briefly four of these 
reforms which are more fully detailed in the Swiss Government Report. First, the new revision of 
the Federal Law on cartels and other impediments to competition with a view to further 
intensifyin g competition in Switzerland, notably through the prohibition of horizontal agreements 
on prices, quantities and geographical distribution, as well as of vertical arrangements on minimal 
or fixed prices; second, the total revision of the Capital Adequacy O rdinance to reinforce financial 
stability and avoid that a bank of a systemic importance becomes "too big to fail"; third, 
Agricultural Policy 2014 -17 which aims at systematically targeting direct payments toward the 
provision of public goods as wished for  by the people and required by the Federal Constitution. 
Finally, the new revision of the Electricity Supply Act in the wake of the launching of the new 
Energy Strategy 2050 after the tragic events taking place in Japan in March 2011 which led 
Switzerland to decide to progressively eliminate nuclear energy as a source for electricity 
production and to replace it by renewable energies.  
Integration of developing countries and economies in transition in the world economy  
2.31.  The third objective  of Switzerland's f oreign economic policy strategy refers to the 
integration of developing countries and economies in transition in the world economy. Through 
economic development cooperation (multilateral and bilateral), Switzerland endeavors to help its 
partners to adjust their national framework conditions toward a better integration in the world 
economy and a sustainable economic growth. Fostering trade, the development of the private 
sector, the reinforcement of economic and fiscal policies, the development of infrastruc ture and of 
the supply of cities, as well as measures deemed to protect climate and the environment should 
contribute to lastingly reduce poverty and economic and social disparities while favoring a rational 
use of resources in partner countries. The "Aid for Trade" Initiative launched on the occasion of the 
6th WTO Ministerial Conference in Hong Kong is an example of the implementation of such 
development cooperation. In this context, Switzerland has particularly increased its commitment in WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  favor of the pr omotion of sustainable trade. On a yearly basis, Switzerland contributes 
approximately 120 million francs to its development programs dealing with trade. One specific 
focus is related to trade facilitation where Switzerland emphasizes capacity building of customs 
authorities.  
Switzerland and the WTO negotiations   
2.32.  Let me now say a few words, before I conclude, in relation to the ongoing negotiations in 
the WTO. The present situation of the Doha Round is no doubt critical. It’s difficult to see how and 
when t he Round will be revived. As Members, our main priority should therefore be to preserve the 
"acquis" of the WTO, that is, to ensure the integrity of its agreements, of the dispute settlement 
system and, last but not least, to contain protectionist pressure s. As long as Members will continue 
to respect the WTO agreements and to settle their trade disputes within the dispute settlement 
mechanism, the system will work. Regarding protectionism, Switzerland remains very much 
concerned by the fact that despite re peated commitments to establish a "standstill" on trade 
restrictive measures and to roll back the trade restrictive measures taken in the wake of the 
financial and economic crisis, a number of Members, notably from the G -20, have so far not lived 
up to the ir pledges. Therefore, to counteract this tendency, Switzerland will continue to fully 
support  any initiative leading to a further strengthening of the WTO monitoring exercise.   
2.33.  In the short run, with respect to the ongoing negotiations, it is important f or Switzerland 
that the opportunity offered by the 9th WTO Ministerial conference in Bali in December 2013 be 
seized. The objective of Members should be to reach a significant and balanced outcome in Bali 
and to contribute to the strengthening of the multi lateral trading system, while being aware that 
such a result will neither represent the end of the road nor allow conclusion of all the topics under 
discussion at the WTO. Nevertheless, such a step would represent a solid basis toward future work 
at the WT O and contribute to maintain the relevance of the WTO in the 21st century. Switzerland 
will continue to engage actively and constructively in favor of the conclusion of agreements on the 
basis of paragraph 47 of the Doha mandate. An agreement on trade faci litation should be, in our 
view, at the core of the results obtained in Bali, together with some issues related to agriculture, 
as well as topics of special interest to developing and, in partic ular, least developed Members.  
2.34.  Switzerland is also engaging a ctively in parallel with many Members toward updating the 
Information Technology Agreement and the negotiation of an ambitious International Services 
Agreement. Such an agreement should be open to all the Members of the WTO who will be ready 
to participate . In addition, in order to support the integration of developing countries, in particular 
of LDCs, in world trade, Switzerland will continue to work toward the development of the "Aid for 
Trade" Initiative. Coherence between trade and environment represent s also an essential area for 
Switzerland. Switzerland made proposals on how to avoid and possibly settle conflicts between 
trade and environmental rules. In addition, Switzerland supports the liberalization of additional 
goods and services with demonstrate d environmental value. We hope good progress can also be 
achieved in these areas.  
2.35.  One of the major challenges Members will face in the longer run will be to ensure that 
progress made to date in the Doha Round will not be put into question and will allow, w hen the 
time is right, to conclude negotiations in all a reas of the DDA.  
Conclusion  
2.36.  In conclusion, I hope to contribute, together with my colleague from Liechtenstein, to a 
frank and open dialogue on the review of the trade policies of our two countries. This openness is 
necessary if we are to adequately tackle the complex questions which must be addressed by our 
Organization, indeed, by all of us, in the interests of a stronger multilateral system that is firmly 
focused on present and future challenges.  
2.37.  This dialogue, which is essential to all the issues dealt with in the WTO, is key to all future 
progress. I am encouraged by the number of questions which we have already received. We have 
made great efforts to reply to all written questions, and we will re turn to the most important ones 
in Thursday's discussions. Although Switzerland's strength lies in services and manufactured 
goods, there are still sectors, such as agriculture, which remain difficult for our economic players, 
for our Government, and for o ur trading partners. Since the end of the Uruguay Round, our WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  agricultural sector has taken up many challenges. It intends to continue along the path of reform if 
it is not held up by excessive external or internal demands.  
2.38.  Ambassador Norbert Frick will now  say a few words on the issues specific to Liechtenstein.  
H.E.  MR. NORBERT  FRICK  (LIECHTENSTEIN)  
2.39.  Let me start by thanking Ambassador Didier Chambovey for his introduction in which he 
also referred to the close relationship between Switzerland and Liechtens tein and to the deep 
integr ation of our economies based on our customs and monetary union. For this reason, the 
Trade Policy Review of our two cou ntries has been dealt with in a joint report. We are very grateful 
to the Swiss representatives for  their supp ort and excellent co operation throughout the whole 
process. Once more, I wish to thank Switzerland for that, also on behalf of my authorities.  
2.40.  My thanks also go to her Excellency, Ambassador Mariam Md Salleh from M alaysia, who 
accepted to act as discussant  for this joint review.  
2.41.  Last but not least I would like to thank the Secretariat for the good co operation, it was a 
pleasure to work with the responsible team, and for the e xcellent report it has produced. It has 
succeeded in describing the particularities  of Liechtenstein in an excellent and comprehensive 
manner.  
2.42.  In principle, I would not have much to add to the Secretariat’s Report , compl emented by 
our policy statement. Nevertheless, let me highlight or add some information and remarks to this 
reports and  to what Ambassador Chambovey said.  
Liechtenstein: a  small but economically successful country  
2.43.  Liechtenstein is – with a surface of about 2/3 of the Canton of Geneva and a resident 
population of about 37’000 - a very small country. Nevertheless, it has a h ighly developed, 
remarkably divers ified economy. The number of jobs equals almost the number of inhabitants. In 
spite of the difficult economic env ironment since the last TPR, the nu mber of jobs has steadily 
grown  last year again by 1.3 %. More than half of  the workforce commutes daily from the 
neighboring  regions to Liec htenstein and altoge ther close to 70% of all jobs are held by 
non-Liechtenstein nationals.  
A highly developed and competitive industrial sector  
2.44.  The fact that Liechtenstein is a highly indust rialized country and home of several world 
leaders in their respective fields of activity is often little known. The high proportion of the 
manufactu ring sector is striking: It contributes close to  40% to GDP and employs over 40 % of the 
total wor kforce. In vestments by the Liechtenstein industrial companies – by the private sector - in 
research and development represents in percentage of GDP certainly one of the highest figures 
worldwide. Businesses and products, focused on high -tech niche products, are broa dly diversified, 
as are the export markets. About 1/3 of the produ ction is exported to markets outside Europe. An 
interesting feature is also that Liec htenstein’s industrial companies have - as an overall average - 
3 to 4 times more employees on their payr oll abroad than at home. Let me just mention one 
example, for i nstance Hilti, the world leader of fastening systems for the building industry, as 
many others in Liechtenstein a 100 % family owned company, e mploys 1’500 people in 
Liechtenstein, but over 20’0 00 abroad.  
2.45.  Of equal high importance for Liechtenstein’s economy is of course the financial services 
sector, mainly banking and insurance services, which represents a co nsiderable 27 % of GDP. The 
services sector as a whole is however smaller than in other E uropean countries. Striking is also the 
compa ratively low GDP figure for agriculture and forestry.  
Liechtenstein highly dependent on international trade  
2.46.  Liechtenstein is highly, almost entirely, dependent on imports and exports. In order to 
secure favorabl e framework conditions for international trade, Liechtenstein therefore seeks strong WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  international co -operation and partnerships and is, not surpri singly, a strong supporter of the 
multilateral trading system.  
2.47.  Four pillars form the legal basis of Liechten stein’s Foreign Ec onomic relations, namely:  
 the Customs Union Treaty with Switzerland;  
 the membership in the agreement on the European Economic Area (EEA) which provides for 
full participation in the EU’s i nternal market;  
 the membership of the World Trade Organization (WTO);  
 the membership of the European Free Trade Association (EFTA).  
 
The Customs Union with Switzerland  
2.48.  In application of the 1923 Customs Union Treaty – this v ery month we could celebrate 
90 years of the signature of this treaty – Liechtenst ein became an i ntegral part of the Swiss 
customs territory. Therefore, as far as trade in goods, including agricultural goods is concerned, 
trade policy measures affecting i mports and exports, including TBT and SPS measures etc., are 
formulated by Switzerl and and also applied to Liechtenstein. All these matters are also neg otiated 
by Switzerland on behalf of Liechtenstein in this organization and in EFTA. In the same way, as far 
as trade in goods is concerned, commercial treaties and trade agreements conclu ded by 
Switzerland also apply to Liechtenstein.  
2.49.  However, Liechtenstein has its own regulatory framework in trade in services, government 
procurement, investment, and in some areas of intellectual property rights. In these areas, our 
bilateral relationship with Switzerland is go verned by the EFTA Convention.  
2.50.  Concerning service negotiations Liechtenstein welcomes the initiative on a possible 
ambitious plurilateral trade in services agreement and is, therefore, cu rrently preparing its request 
for joining the Really Good Friends of Services (RGFS).  
Liechtenstein: A member of the European Economic Area  
2.51.  The EEA Agreement is the legal basis for the economic cooper ation of Liechtenstein with the 
29 other – soon 30 - member states of the European Economic Area. As g enerally known in this 
house, the EEA is based on the principle of the four fre edoms (free movement of goods, services, 
capital and persons) with uniform and common rules governing competition, inclu ding state aid. In 
addition, the EEA agreement covers coo peration in other important areas, known as flanking and 
horizontal policies, as well as participation in numerous EU pr ogrammes and EU agencies.  
2.52.  Liechtenstein is part of the EU’s Internal Market – a market of 500 Mio people - and 
therefore all correspond ing EU law is applicable in Liechtenstein. Accor dingly e.g. banking, 
insurance, securities and accounting legislation is based on the relevant EU directives. By now, the 
impressive number of close to 7000 EU acts have been taken over. The EEA Agreement is 
dynam ic, i.e. it provides for the on going inclusion of new EU legislation in all policy areas covered 
by the EU’s Internal Market. As a consequence of this agreement, a large part of Liec htenstein’s 
own economic legislation is based on EU law. Proper imple mentation of the Internal Market 
legislation is ensured through the two -pillar structure of the EEA, i.e. the monitoring by the EFTA 
Surveillance Authority and the jud icial functions of the EFTA Court.  
Liechtenstein part of two internal markets  
2.53.  It is note worthy and a special feature of Liechtenstein to be part of two internal markets, 
the Swiss and the European. Both, the Customs Union with Switzerland and the participation in the 
EEA Agreement are success stories for Liec htenstein. The basic principle tha t allowed participation 
in both is that goods produced either in conformity with Swiss or EEA regulations may be sold in 
Liechtenstein. The good functioning of this arrangement is assured with a sp ecific Market Control 
and Surveillance Mechanism.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  Major cha nges to the trade regime since the last TPR in 2008  
2.54.  There have been no major changes to the trade regimes as such, but a number of internal 
policy adaptations in reaction to the shockwaves caused by the global financial and economic 
crises since 2009, the escalation of the sovereign debt crises in spring 2010 and the massive 
strengthening of the Swiss franc - which is also the legal tender in Liechtenstein - as well as to the 
changing international environment and regulatory framework concerning the financi al services 
sector.  
2.55.  The long -standing liberal economic policy of the Liechtenstein Government is based on the 
principle of self -dependent economic actors, which means state interventions are limited to the 
establishment of framework conditions favorable to  entrepreneurship.  
2.56.  Examples of changes respectively adaptations since the last TPR are:  
 A full revision of the old tax act of 1961 and replacement by the new one from 2011 with the 
aim of further promoting an investor -friendly environment in compliance wit h relevant EEA 
law; 
 A new Location Marketing Act establishing a public entity called “Liechtenstein Marketing” to 
promote and raise the profile of Liechtenstein intern ationally as a highly diversified place to 
do business and as an attractive tou rism desti nation;  
 The establishment of the “RhySearch” centre together with the Swiss canton of St. Gallen 
with the aim of strengthening regional cooperation to foster research and innovation, 
especially designed for Small and Medium -Sized E nterprises;  
 A new agricul tural law with a focus on sustainable agriculture and entrepr eneurial 
orientation.  
 
2.57.  Then, on 12 March 2009 the Liechtenstein Government adopted the “Liechtenstein 
Declaration”. Through this declaration, Liec htenstein publicly expressed its commitment to 
implement global standards of transparence and exchange of tax information as developed by the 
OECD and to advance its participation in i nternational efforts in order to counteract non -
compliance with foreign tax law. With the declaration, Liechtenstein als o clarified its position 
regarding privacy and banking secrecy and confirmed its readiness to speed up the negotiation of 
tax information and other agreements. Since then Liechtenstein has negotiated and concluded a 
large number of tax info rmation exchange  agreements (TIEAs) and a number of double taxation 
agreements (DTAs) in accordance with the OECD -model conventions. Liechtenstein is actively 
participating in the work and review mechanism of the OECD Global Forum on Tran sparency and 
Exchange of Informati on for Tax Purposes.  
The necessity of fiscal consolidation  
2.58.  Traditionally, Liechtenstein’s national budgets always had a surplus and therefore fiscal 
reserves could be accumulated. However, the period under review has been marked by a 
downward trend. Since 2010 Liechtenstein has run budget deficits and the same is expected for 
this year. The re ason for this downward trend is the accumulation of different factors which 
occurred at the same time, such us:  
 Higher public expenditures;  
 Tax shortfalls due to the c ombination of the structural changes in the financial services 
sector, the economic and f inancial crisis and the challenge of the strong Swiss franc with 
corresponding negative effects on all economic sectors and operators;  
 The new tax law the benefit of w hich is designed for the mid -term.  
 
2.59.  Budget consolidation and the continuation of Liechtenstein’s overarching policy of zero 
external debts – Liechtenstein is a triple AAA country – are the highest priorities for both, the 
newly elected Government and the o pposition parties. These aims are being pursued through tight 
cost controls on the one hand and measures to secure revenues on the other.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  3  STATEMENT BY THE DIS CUSSANT  (H.E.  MS. MARIAM MD  SALLEH (MALAYSIA))  
3.1.  I am honoured to be the Discussant for this Trade policy review of Switzerland and 
Liechtenstein. My comments will be on the macroeconomic development, the overall tariff regime, 
certain sectoral policies and foreign economic policy.  
3.2.  Much has  been said of Switzerland and Liechtenstein, two small landlock ed countries  with 
limited natural resources  that are among the wealthiest countries in the world. Both economies are 
very much intertwined, forming an economic and monetary union and Liechtenstein in an integral 
part of the  Swiss customs territory.  
3.3.  Liechte nstein has developed into a prosperous, highly industrialized, free -enterprise economy 
with a vital financial services sector. While, Switzerland for t he fourth consecutive year, is ranked 
top in the overall global competitiveness by the World Economic For um in 2012, from a field  of 
144 economies. A remarkable  achievement, with innovation being the driving f orce. World class. 
Swiss made.  
3.4.  Since the last review, the two economies have gone through a period of overall growth. After 
a GDP growth rate of 2.16% in 2008, the GDP of Switzerland contracted by 1.94% in 2009 due to 
the severe global finan cial crisis during the period. Since then, the economy has recovered to post 
a growth of 3.03% and 1.93% in 2010 and 2011, respectively.  
3.5.  In the case of Liechtenstein , following a sharp fall in GDP growth in 2009 of almost 11%, 
Liechtenstein enjoyed a quick recovery with an increase of 8.7% in 2010. Unemployment in both 
countries remains low and inflation is under control. We commend both Members for the recovery 
made.  
3.6.  The Secretariat Report  notes that Switzerland and Liechtenstein are high -price "islands" in 
Europe. This is a fact that I am sure, is familiar to all WTO delegates here. The high prices led to 
the phenomena of border shopping. A recent study by the Swiss Retail Association indicated that 
cross border shopping has hit the level of SwF 5 billion a year. The study shows the high Swiss 
franc is to blame in 80 % of cases.  
3.7.  However, other factors also contributed to the high prices in these economies. As reported in 
both reports, these are the outcome of the high incomes, the high level of protection in 
agriculture, technical barriers to trade, and limited competition in various industries. The World 
Bank Rep ort 2013 placed Switzerland at N o. 28 in Doing Business, with the ranking for Starting A 
Business showing a 9 point drop from No. 88 in 2012 to N o.97. 
3.8.  With this background and the st rong appreciation of the Swiss f ranc due to its safe haven 
status, as noted in the Secretariat Report , threatening to undermine com petitiveness, the Swiss 
National Bank decided to contain the app reciation of the Swiss f ranc by setting a minimum 
exchange rate of SwF  1.20 per Euro.  
3.9.  Switzerland and Liechtenstein have also undertaken measures to stimulate competition 
during the period und er review.  
3.10.  The first, to note, is the adoption of the Cassis de Dijon principle. It ensures that products 
that are lawfully marketed in the European Union or European Economic Association i.e. the EEA 
may, in principle, be put on the market in Switzerland without further checks regarding their 
technical requirements. However, some of the potential gains from trade are lost because the 
principle is not applicable to certain products, for e.g. animal feed, pharmaceuticals or certain 
chemicals, and food import s which are subject to special approval procedures.  
3.11.  Secondly, Switzerland has also adopted an EEA -wide exhaustion principle for patented 
inventions. This notable change in the intellectual property regime allows for more competition in 
the market through p arallel importation o f products from the EEA market.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  Overall Tariff Rate Regime  
3.12.  As the Secretariat Report notes, there have been no major changes in the tariff since 2008 
(paragraph 3.13). The tariff regime in Liechtenstein and Switzerland are indeed, uni que. 
Nevertheless, it also raises questions of efficiency and competitiveness.  
3.13.  Tariff comprises only specific rates. Their range of ad valorem  equivalent go as high as over 
1,600%. While duty -free treatment applies to 18.7% of all tariff lines, agricultura l products 
continue to have high tariff protection with an average of 31.9%. Furthermore, almost 39% of 
tariff lines consist of nuisance rates, which bear rates of less than 2%. However, it is recognised 
that for non -agricultural goods, tariff protection i s low, with an average of 2.3%.  
3.14.  The Secretariat Report  notes that no measures to increase tariffs were taken during the 
period under review (paragraph 3.14). Despite this, the overall simple average applied MFN rate 
increased from 8.1% in 2008 to 9.2% in 2 012. This is as a result of the downward trend in the 
global prices of agricultural products and the strong appreciation of the Swiss franc, which led to a 
high ad valorem  equivalent of the specific duties.  
Agriculture  
3.15.  At the last review of the Swiss and L iechtenstein economies, the sector that attracted the 
most comments was agriculture. The Secretariat Report  notes that agriculture remains the 
“Achilles heel” of the Swiss and Liechtenstein economies.  
3.16.  Swiss agriculture contributed about 1% to GDP and 3.8% to employment in 2011. Likewise, 
the contribution of agriculture to Liechtenstein’s GDP is also marginal. Despite this, Agriculture 
remains the most protected sector in Switzerland and Liechtenstein.  
3.17.  A few tariff reduction initiatives have been carried out  since the last TPR, in the context of 
the Agricultural Policy 2011 or as a result of bilateral agreements with the EU. However, the report 
also notes that the overall high level of import protection in agriculture has been left largely 
untouched.  
3.18.  Highligh ts are:  
1. Meat and dairy products, in particular, are the most tariff -protected products, with averages 
over 100% and peaks of up to 1,676%. The tariff -quota sy stem is highly complex. The 
28 WTO tariff quotas are being divided into 58 sub -quotas and aggregat ed with 80 bilateral 
preferential -tariff quotas. The tariff quota management system itself runs to about 
300 pages long.  
2. The Swiss milk -quota system was abolished in 2009, but surplus problems persist. A surplus 
removal campaign or compulsory milk levy has  drawn criticisms from Members.  
3. 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.  
3.19.  The Swiss Parliament has ju st approved the next reform of the Swiss Agricultural Policy for 
2014-2017. As the Secretariat Report  notes, "While Switzerland's agricultural policy has been 
heading generally in the right direction, Swiss support and protection for agriculture is still a lmost 
three times the OECD average. The process of market -oriente d reforms needs to be faster”.  
Services  
3.20.  The services sector is the main contributor to the GDP of both economies and they are net 
exporters of services. The sector contributes close to 72% of  total employment in Switzerland and 
56% of total employment in Liechtenstein.  
3.21.  Financial services represent an important service sector. In this era of austerity, tax havens 
are increasingly coming under strict scrutiny. Recent reports with the latest bei ng the OECD report WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  to the G -20 Finance Ministers, have put the spotlight on Switzerland’s tradition of banking secrecy. 
In the period under Review, both economies have carried out improvements in the area of 
exchange of information regarding tax matters. S witzerland has lifted its reservation to the OECD 
model tax convention on income and capital regarding exchange of information on tax matters.  
3.22.  Additionally, through the "Liechtenstein Declaration" of 12 March 2009, the Government 
publicly expressed its co mmitment to implement global 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. 
Liechtenstein was removed from the OECD List of Uncooper ative Tax Havens on 
11 November  2009.  
Foreign Economic Policy Strategy  
3.23.  The Secretariat Report  notes that trade is an important driving force of the two economies, 
with GDP shares of trade in goods and services exceeding 100%. Thus, the importance of the WTO  
and the multilateral trading system to Switzerland and Liechtenstein. Switzerland remains active in 
pursuing efforts towards the conclusion of the Doha Development Agenda and has taken the 
initiative to lead the informal group of "middle -grounders" called  the friends of the system. 
Switzerland joins others in working out a credible package for the Bali 9th Ministerial Conference. 
It must be recognized too that both Members have made commendable contributions to the WTO 
technical assistance and capacity bui lding programmes.  
3.24.  At the same time, Switzerland and Liechtenstein are parties to multiple bilateral and 
regional trade agreements, seen as additional platforms to gain market access and forging c loser 
economic ties. This, the S ecretariat notes, has made t heir trade regimes increasingly complex. 
There are many layers and permutations to this, particularly in economic arrangements with t he 
European Union, the EEA and bilateral free trade agreements with non -EU trading partners, mainly 
within the EFTA Framewo rk. Since the last Review, Switzerland has 26 FTAs with 35 trading 
partners, besides the EU. And all trade agreements concluded by Switzerland also apply to 
Liechtenstein. There are several FTAs still under negotiations and that between EFTA and Malaysia, 
negotiations will commence soon.  
3.25.  I trust Switzerland and Liechtenstein would provide further clarification on their trade 
policies through the many questions made . In conclusion, I would like to commend Liechtenstein 
and Switzerland for its generally open dynamic economy and liberal trade and investment regime, 
and I wish them a successful trade policy review.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4  STATEMENTS BY MEMBER S 
UNITED  STATES  
4.1.  The United States enjoys a long tradition of friendly relations with Switzerland and 
Liechtenstein. Our countrie s have an active history of cooperation and we each appreciate the 
powerful role that international trade can play in global ec onomic and political stability.  The U.S. 
economic relationship with Switzerland and Liechtenstein is positive and gro wing across several 
dimensions.  Two-way goods trade between the United States and Switzerland totalled  
US$51.9  billion in 2012, and two -way services trade between the United States and Switzerland 
totalled  US$43 billion in 2011.  The U.S. stock of foreign direct invest ment in Switzerland was 
US$125  billion in 2011, led by the nonbank holding companies, manufacturin g, and wholesale 
trade sectors.  Swiss FDI in the United States was US$211.7 billion in 2011, led by the 
manufacturing and finance sectors.  With regards to Lie chtenstein, total two -way goods trade 
between the United States and Liechtenstein was US$332 million in 2012. The U.S. stock of 
foreign direct investment in Liechtenstein was US$285 million in 2012.  Liechtenstein FDI in the 
United States was US$556 million  in 2012.  
4.2.  As we have seen in previous reviews, the economies of Switzerland and Liechtenstein are 
among the world’s most advanced and prosperous, both of which are characterized by high living 
standards an d a highly skilled labor force.  Their economies hav e recovered well from the global 
economic crisis, and unemployment has been kept in check at about three to 4%. The major 
economic challenge for the two economies has been how to mitigate economic distortions that 
result from the strong pressures for appre ciation of the Swiss franc.  
4.3.  Trade continues to be an important driving force of both economies, with the value of trade 
in goods and services equivalent to more than 100 % of GDP. The two countries together are home 
to some of the world’s most specialized e nterprises, including electronics, metal manufacturing, 
pharmaceuticals, food products, precision instruments, optical instruments, and dental products.  
The services sector is the main employer and makes a significant contribu tion to GDP in both 
economies . Both are net exporters of services, and financial services represent an important 
branch of the sector.   
4.4.  The trade regimes of Switzerland and Liechtenstein are among the most liberal in the WTO, 
with the excep tion of the agriculture sector.  Despite its marginal contribution to GDP and 
employment, agriculture remains highly protected from global competition by various t ariff and 
non-tariff measures. And as the Secretariat Report  notes, this level of protection in agriculture has 
remained largely unchanged  since the last TPR.  
4.5.  Several specific agricultural policies are particularly o f concern to the United States.  The 
Secretariat’s Report  notes that  Switzerland does not apply administered prices for price support 
measures, but rather uses “observed” p rices to calculate the support.  Also, market support 
measures have been reduced by less than 50 % since 2009. We would appreciate further 
explanation from Switzerland regarding how its system of “observed prices” diffe rs from 
“administered prices.” We would also appreciate further explanation on how these prices are 
reflected in Switzerland’s domestic support notifications.   
4.6.  The United Sta tes understands that the Swiss G overnment does not appear to have taken 
into account the results of a comprehensive and defini tive review of the benefits and risks of 
genetically modified plants completed by the Swiss Nat ional Research Program in 2012.  Rather, 
both chambers of Parliament recently adopted a second extension of the moratorium on approvals 
for cultivation of biotech nology crops until the end of 2017.  We therefore look forward to hearing 
Switzerland’s views on this scientific research including why a ban was imposed on something that 
Swiss research determined to be safe.   
4.7.  The lack of competition for agriculture produ cts is further reflected in Switzerland’s and 
Liechtenstein’s approach, along with its EFTA partners, to the negotiation of free trade 
agreements, which eliminate tariffs on markedly fewer agricultural tariff lines than non-agricultural 
tariff lines. We co ntinue to encourage Switzerland and Liechtenstein to increase the market 
orientation of their agricultural production and trade policies.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.8.  In addition to our agricultural concerns, the United States is particularly concerned about 
subsequent interpretations  of a 2010 Swiss Federal Supreme Court decision that have seriously 
undermined the ability of companies and individuals to enforce their intellectual property rights 
against infringement over the Internet.  We look forward to hear ing about steps that the Sw iss 
Government is taking to address this concern and to combat copyright pirac y over the Internet 
generally. The United States will be closely monitoring the results of the current “Copyright 
Working Group 2012,” or AGUR12, as well as the Swiss Ministry of  Economy -led process.  
4.9.  The United States also looks forward to hearing about the steps that both Switzerland and 
Liechtenstein are taking to address issues caused by their dominant or government -owned 
telecommunications service providers.   
4.10.  Finally, we note  that the Government of Switzerland indicated that it is in the process of 
revising its long standing legislation on alcohol, and we look forward to hearing Switzerland’s views 
on how the revised legislation may affect imported products.  
4.11.  The United States , Switzerland, and Liechtenstein share a common fundamental desire to 
ensure the health and vitality of an open global trading system, which we view as critical to 
promoting economic growth a nd development for all Members.  We share Switzerland and 
Liechten stein’s view that a strong, rules -based system is the best guarantee against protectionism, 
and provides important transparency and predictability for traders around the world . 
SINGAPORE  
4.12.  We are very encouraged to find that Switzerland and Liechtenstein con tinued to pursue 
generally liberal trade and investment policies in the period under review. The economies have 
recovered from the global fina ncial crisis and despite the on -going European debt crisis, have 
continued to register growth albeit at a reduced rate. They are amongst the wealthiest countries in 
the world and ranked high on quality of life indices. Sw itzerland has also been recogniz ed as the 
most competitive economy in the world in 2012 by the World Economic Forum, for the fourth 
consecutive year.   
4.13.  As we have stated in the previous trade policy review, Switzerland and Lichtenstein are fine 
examples of how small countries can achieve sustained economic growth and a high quality of life 
with the appropriate economic strategies and by building up comp etitive advantages in selected 
niche areas such as financial services and high technology products. Small countries can turn the 
challenges of size into an advantage by being more nimble, business -friendly and plugged into the 
global economy.   
4.14.  Singapore w as the first Asian country to conclude a free trade agreement with Switzerland, 
Liechtenstein and their partners in the European Free Trade Association (EFTA). Following its entry 
into force on 1 Jan uary 2003, the EFTA -Singapore Free Trade Agreement (ESFTA ) has boosted 
trade and opened doors for Singapore and EFTA partn ers into each other’s markets. Our bilateral 
trade with Switzerland almost doubl ed between 2002 and 2012, to US$ 6.18 billi on. Singapore’s 
total stock of direct investment in Switzerland grew more than six -fold to reach US$2.66 billion in 
2012. As of 2011, the total Swiss investment in Singapore was US$17.5 billion, making 
Switzerland our 3rd largest European investor and the 7th largest investor globally. These 
investments span a diverse range  of sectors including financial and insurance services, 
pharmaceuticals, food, precision engineering, chemicals and electronics. Switzerland is also 
Singapore's 22nd largest trading partner.  
4.15.  Singapore's economic links with Liechtenstein have si milarly ben efited from the 
EFTA-Singapore FTA and there is still much potential for growth. Total bilateral trade between 
Liechtenstein and Singapore stood at US$4.8 million in 2012. Liechtenstein is Singapore’s 12th 
largest European investor, with FDI in Singapore s tanding at US$1.17 billion in 2011, mainly in the 
financial and insurance services sector. We look forward to the fourth review of the ESFTA this 
June to further strengthen our bilateral economic ties.  
4.16.  As a small economy highly dependent on international trade, we share Switzerland's and 
Lichtenstein's steadfast commitment to the multilateral trading system and desire for a successful 
9th Ministerial Conference i n Bali at the end of the year. We commend the highly constructive role WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  that Ambassador Remigi W inzap and his colleagues play in the DDA negotiations, and their 
unflagging efforts to search for convergence in the difficult area of NAMA. As G-10 coordinator, 
Switzerland is also well -placed to help deliver a meaningful outcome on some el ements of 
agriculture in Bali. As Swiss support for its agriculture sector remains at almost three times the 
OECD average, we encourage Switzerland to consider further liberaliz ation of this sector.  
AUSTRALIA  
4.17.  Australia and Switzerland enjoy a strong trading relationship  that is underpinned by growing 
two way trade and substantial Swiss investment in Australia. In 2011, Switzerland was Australia's 
fifth largest source of foreign direct investment at A$23 billion and the sixth largest investor 
overall at A$42 billion. In 2 011-2012, merchandise trade between Australia and Switzerland was 
worth A$3.8 billion, while two -way services trade amounted to around A$1.8 billion. Australia also 
appreciates its positive bilateral relationship with Liechtenstein.  
4.18.  As strong supporters of the multilateral trading system, Australia and Switzerland work 
together across a range of international bodies, including the WTO, to advance our respective 
trade and economic agendas. We welcome Switzerland's continuing efforts to strengthen and 
further  liberalize the multilateral trading system through the Doha Round negotiations. We also 
welcome Switzerland's positive support for new approaches to progress multilateral trade 
liberalization, including through Switzerland's efforts to help achieve a cred ible package for MC9 in 
Bali, including the important role it plays each year to bring trade ministers together in Davos, as 
well as its efforts here in Geneva.  
4.19.  Australia works closely with Switzerland in the Financial Stability Board, supported by the 
annual Australia -Switzerland Financial Dialogue. Leading up to Aus tralia's term as Chair of the 
G-20 in 2014, we look forward to working closely with Switzerland on trade liberalization and other 
economic stimulus measures advanced through the G -20. 
4.20.  It will c ome as no surprise that Australia for many years has been concerned  about the 
heavily -controlled Swiss agriculture market. While we understand  there are cultural, historic and 
environmental sensitivities in this sector, we continue to be concerned by the h igh tariff and 
non-tariff barriers that Switzerland imposes on a range of agricultural products. The very high 
levels of support Switzerland provides to its agricultural industry, almost three times the OECD 
average, impedes trade and imposes significant c osts on Swiss tax -payers and consumers. By 
lessening competition from international producers, Switzerland's agricultural policies constrain the 
productivity of its agricultural sector and undermine its own stated aims of increasing domestic 
competitivenes s and enhancing food security. This is why completion of the Doha agriculture 
negotiations as quickly as possible needs to be a priority for all WTO Members.  
4.21.  Australia is also concerned about Switzerland's practice of not including substantial 
agricultural  trade liberalization in its preferential trade agreements. Negotiating more 
comprehensive agreements would offer greater opportunities for Switzerland's FTAs to be more 
supportive of efforts to achieve broad -based multilateral trade liberalization.  
4.22.  While we continue to have strong differences on such issues, we nevertheless welcome the 
healthy state of our overall trade and investment relationship with Switzerland and our strong 
government to government links.  
COLOMBIA  
4.23.  A special supplement of The Economist  magazine ("The World in 2013") includes a ranking 
of 80 countries which indicates the best countries in which to be born, "The lottery of life: where to 
be born in 2013". According to this index, the best country in which to be born right now is 
Switzerla nd. The factors on which the index is based are: income per capita, life expectancy at 
birth, quality of family life, political freedom, unemployment rate, climate, security, and gender 
equality. This ranking suggests that the country has done well and set s a good example.  
4.24.  The fast recovery of Switzerland and Liechtenstein from the global economic and financial 
crisis during the period under review is striking. This recovery is attributable to a sound economy 
and a significant store of human, financial, and  economic capital. Nevertheless, the recovery has WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  been affected by the debt crisis in the euro zone and the weakening of the economies of the two 
countries' main partners. These external problems played a part in the overvaluation of the Swiss 
franc, which , along with gold, real estate, and other strong currencies, became a safe haven for 
investors. This was coupled with another difficulty facing the Swiss economy: high domestic costs.  
4.25.  In general, Switzerland and Liechtenstein are countries with open econom ies which are 
highly dependent on foreign trade. In Switzerland, exports and imports of goods and services 
accounted for 49.5% and 38.7% of GDP in 2011. Trade policy adopted during the period under 
review follows the same path, and reforms have been undert aken in two areas: (1) greater market 
access; and (2) increased competitiveness.  
4.26.  As regards greater market access, we would like to point out Switzerland's active 
participation in bilateral or regional free trade agreements: Switzerland has a network of 
24 agreements signed within the EFTA framework, including the 2011 Agreement with Colombia. It 
is currently negotiating eight more agreements within the EFTA framework and one bilateral 
agreement with China.  
4.27.  There have also been notable reforms in the area o f increased competitiveness, including 
the revision of the Federal Law on Technical Barriers to Trade and the Cassis de Dijon principle; 
the agreement on the free movement of persons; some reforms in the area of agriculture; some 
revisions to the Law on Ca rtels, the Law on Banks and the Law on Energy; and the domestic 
implementation of the revised Agreement on Government Procurement, which seems to suggest 
that Switzerland will ratify the revised Agreement around 2015.  
4.28.  Despite the reforms undertaken, sector s such as agriculture and the healthcare system are 
still highly protected from foreign competition and their performance is lower than average. The 
agricultural sector has average tariffs of over 100% and tariff peaks of up to 1,676%, an 
extremely complex  quota system, and a level of domestic support which is three times the OECD 
average.  
4.29.  In accordance with postal legislation, the traditional government provider of postal services 
retains a partial monopoly. Restrictions on investment in areas under State monopoly, such as 
insurance and railway transport, also remain in place.  
4.30.  Before concluding, we would like to highlight S witzerland's active role in Aid For Trade 
programmes. The FTA between our two countries contains a chapter on trade capacity building, 
which has enabled us to implement excellent projects and benefit from the SIPPO programme. 
Switzerland annually earmarks approximately SwF 120 b illion for its trade related co operation 
programmes.  
SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  KINMEN,  PENGHU  AND  MATSU 
4.31.  During the period under review, the economies of Switzerland and Liechtenstein, like many 
others, have been hit by the severe global economic crisis. We are pleased to see both countries 
have recovered quickly, and have managed to maintain relatively lo w levels of unemployment. 
But, the recent European sovereign debt crisis has had some noticeable adverse effects on their 
economies. Thanks to its substantial fiscal surpluses recorded in previous years, Switzerland has 
been able to implement some economic  stabilization measures as well as measures to mitigate the 
effects of the appreciation of the Swiss franc. And, since the Swiss National Bank set a minimum 
exchange rate of 1.20 Swiss francs to the euro September 2011, this too must have had an effect 
on trade between Switzerland and its trading partners.  
4.32.  As the Secretariat's Report  suggests, although Switzerland's investment regime is generally 
open to foreigners, investment restrictions continue to apply to areas under state monopoly, and 
domicile or res idency requirements apply in certain sectors. In this respect, we would encourage 
Switzerland of further liberate its investment regime.  
4.33.  Switzerland and Liechtenstein share similar views with ourselves on many issues, and we 
are generally working closely t ogether within the WTO forum. For example, all of us are signatories 
to the Plurilateral Agreement on Trade in Civil Aircraft, the Government Procurement Agreement 
and the Information Technology Agreement. In the DDA ne gotiations, we are all in the G -10 gr oup WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  on Agriculture. Switzerland and ourselves are also members of the Friends of Anti -Dumping 
Negotiations and the Really Good Friends in the Services negotiations.  
4.34.  On the bilateral front, Switzerland has long been a valued trade and investment partner of 
ours, and our economic relationship had broadened and deepened over the years. Switzerland is 
our 7th largest European trading partner, with two -way trade reaching a total value of 
US$2.3  billion in 2012, in which Switzerland enjoys a trade surplus of more  than US$1.8  billion. 
Bilateral co operation has been established in areas such as double t axation avoidance, technical 
cooperation in medical devices and the mutual recognition of patent priority rights. We look 
forward to further strengthening this bilate ral relationship in the future.  
CHINA  
4.35.  It’s great to know that the economies of Switzerland and Liechtenstein have recovered well 
from the global economic crisis. The unemployment has been kept in check at about 3 -4% and the 
inflation has generally remained  below 1%. During the review period, Switzerland’s current 
account has been traditionally in surplus. Liechtenstein continues its status of zero external debt. 
The sound performance of both economies demonstrates their strong competitiveness and proper 
responses to the crisis as well. Switzerland has ranked top in overall global competitiveness for 
four consecutive years.  
4.36.  We have taken note that the ratios of trade to GDP for both countries exceed 100%, which 
clearly indicates the vital role that trade has played in both economies. It’s commendable that both 
countries generally maintain liberal trade and investment regimes. Nonetheless, as the Secretariat 
Report points out, the agricultural sector is still highly protected by tariff and non -tariff measures 
and some tariff peaks on NAMA products such as textiles and clothing remain. We are pleased to 
note that both countries have taken steps towards reducing technical barriers and enhancing 
domestic competitions. It’s also impressive that the self -reflection a nd sober evaluations on the 
reform m easures are made in the Government R eports. We encourage both countries to continue 
their reform more effectively to address the decline in productivity and maintain competitive 
advantages.  
4.37.  China,  Switzerland and Liechte nstein enjoy friendly bilateral relations. Economic and trade 
relations have also been developing smoothly during the period under review. In 2012, trade 
volume between China on the one side, and Switzerland together with Liechtenstein on the other 
side, r eached almost US$26.4 billion, more than doubled in the past 4 years. China’s shares in 
Swiss export rose from 2.8% to 4.2%, and import from 2.5% to 3.4%, ranking China the largest 
trading partner of Switzerland in Asia.  
4.38.  On investment, Switzerland has the  largest investment in China among non -EU countries in 
Europe, while investment by China in Switzerland also increased rapidly from US$8 million in 2008 
to US$102 million as of December 2012. China is ready to continue all our efforts in collaboration 
with both countries to tap the potentiality to further our economic and trade co -operations. The 
FTA negotiation between China and Switzerland launched in January 2011 is obviously a crucial 
step. We have made great progress after eight rounds of negotiation a nd expect an early 
conclusion.  
4.39.  On the multilateral side, like many other Members, we always appreciate the firm 
commitments of Switzerland and Liechtenstein to the multilateral trading system and the 
successful conc lusion of the DDA negotiations.  We comme nd them for playing an active role both 
in the regular work of WTO and the negotiations. Switzerland has made great contributions to the 
negotiations by hosting meetings at the ministerial level during the annual World Economic Forum 
in Davos. We also woul d like to extend our special thanks to Ambassador WINZAP for his 
leadership as Chair of the NAMA Group as well as his strong team in Geneva. We fully share the 
view expressed in both Government Report s that the multilateral trading system has to be 
strengt hened and we should seize the opportunity afforded by MC9 to achieve deliverables and 
reinforce the system.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  NEW  ZEALAND  
4.40.  We should first acknowledge that despite the global economic crisis, Switzerland has, due 
largely to sound fiscal and economic policies , recovered well from the economic challenges of 
recent years. This is very positive. International trade continues to play a dominant role in the 
Swiss economy and Switzerland remains a strong advocate for the multilateral trading system.  
4.41.  New Zealand and Switzerland have a fairly modest trading relationship; however, we enjoy 
excellent bilateral relations, which provide a good foundation to develop our trading and 
investment links further.  
4.42.  While this broad context is positive, the mixed Report  of the Secre tariat gives us cause for 
concern in a number of areas, most significantly in agriculture. Domestically, Switzerland has 
removed tariffs and trade barriers across many of its sectors. As the Secretariat notes however, 
agriculture remains the stark exceptio n to this picture.  
 Current applied ad valorem  equivalent (AVE) tariff duties have increased since 2008, from a 
range from 0% to 1,468% to 0% to 1,676%;  
 The simple average tariff had increased from 8.1% to 9.2%;  
 Tariffs on agricultural products remain highe r than industrial tariffs, with average 
agricultural tariffs of 31.9% as compared to 2.3% for NAMA;  
 The Secretariat sums up these and other policies with the observation that support and 
protection for agriculture is currently at "three times the OECD aver age".  
4.43.  New Zealand nevertheless remains optimistic about Switzerland pursuing further reforms in 
the area of agriculture, given its evident desire and ability to do so. The positive reforms 
associated with the Agricultural Policy 2011 illustrate this. The c urrent proposals in the Agricultural 
Policy 2014 -2017 however do not, in our view, take the reforms much further and, in the words of 
the TPR Report , "The high level of import protection will be left virtually untouched".  
4.44.  New Zealand was also one of the WT O Members that raised concerns regarding the 
compulsory levy on milk approved by the Swiss Federal Council in August 2011 to provide relief on 
the butter market. This measure would appear to fit the definition of an export subsidy under 
Article 9.1(c) of t he Agreement on Agriculture and in our view is therefore not WTO compliant. 
New Zealand, like other WTO Members, calls for the non -renewal of the levy when it expires on 
30 April 2013.  
4.45.  Notwithstanding our concerns over agriculture, New Zealand acknowledges  Switzerland's 
leading role as an advocate for trade liberalization in the services and the industrial goods sector. 
We note that the most successful sectors of the Swiss economy are also the most open. In keeping 
with this approach, New Zealand encourages  Switzerland to undertake further market -oriented 
reforms in its agricultural sector.  
REPUBLIC  OF KOREA  
4.46.  We are very pleased to note that in February 2013, Korea and the Swiss Confederation 
celebrated the 50th anniversary of the establishment of their diplo matic relations. The relationship 
between our two countries is, and will remain one of the most prosperous partnerships which is 
characterized by both an ever -growing network of contacts at all levels and a solid growth of 
economic and trade ties. It is a source of satisfaction that our economic relations have continued 
to deepen since the EFTA and Korea came into force in 2006. As a corollary, the volume of 
bilateral trade reached record levels in 2010 and again 2011. We find it very encouraging that 
more than 50 Swiss companies which are operating in Korea are playing an important role as both 
countries work closely to further develop mutually beneficial and future -oriented relations. In Asia, 
Korea is Switzerland's sixth largest export market while Switze rland is Korea's ninth export 
destination. Korea's total stock of investments in Switzerland reached US$250 million in 2012. 
Switzerland has substantially increased its investments in Korea, with its cumulative investments 
reaching the level of US$2.1 bill ion in 2012. With regard to Liechtenstein, we are also pleased to 
witness our bilateral trade volume steadily increasing, reaching US$14 million in 2012.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.47.  From a trade policy perspective, as the Secretariat's Report  noted, there has been no 
drastic change d uring the period under review. The structure of the applied MFN tariff and the 
competition regimes of Switzerland and Liechtenstein have changed little. Both countries remain 
generally open to foreign investments and no specific trade concerns regarding Sw itzerland 
measures have been raised at the TBT and SPS meetings since 2008. It is also noteworthy that 
Switzerland as one of the most important global financial service cent res, did not introduce any 
measure to change its market access conditions during th e period under review.  
4.48.  As the Secretariat also noted, we very much appreciate that Switzerland and Liechtenstein 
have been staunch supporters of the multilateral trading system. Both countries, signatories to the 
ITA and the GPA in close co operation with K orea. When it comes to the DDA negotiations, as the 
Secretariat's Report  pointed out, Switzerland has emphasized the importance of preserving the 
progress that has been achieved in the negotiations, especially in the area of trade facilitation. We 
share th is view. Korea will also continue to work closely with Switzerl and and Liechtenstein, as the 
G-10 group proceeds to play its due dole in the DDA negotiations. In this regard, we expect and 
trust that Switzerland and Liechtenstein will make meaningful contr ibutions as Members try to 
ensure the success  of the MC9 in Bali.  
ARGENTINA  
4.49.  We are pleased to learn that the Swiss economy has recovered from the international 
financial crisis, the effects of which were especially noticeable in 2009, and that real GDP gre w 
by 3% and 1.9 % in 2010 and 2011 respectively. This made it p ossible to keep unemployment 
in check at 3 %-4%. 
4.50.  Argentina has an important economic relationship with Switzerland. T rade between 
the two countries has been growing since 2005, and in 2012, total  trade reached 
US$1,204.5  million, an increase of approximately 9 % over the previous year.  
4.51.  This increase is attributable to the rise in our exports, from US$567.9  million  
to US$652.2  million, and to our increased imports, which grew in 2012 from US$543  million 
to US$552  million.  
4.52.  We are convinced that bilateral trade would be greater without Switzerland's high level  
of agricultural protection, which is nearly three times the OECD average. In 2012, the average 
MFN tariff applied to agricultural products was 3 1.9%, the most protected products being meat 
(with an average tariff of 177 %), dairy products, and vegetables.  
4.53.  Switzerland also applies domestic support measures such as subsidies, price support, 
and direct payments. Although average annual support for agr icultural producers has decreased  
in recent years, it still remains high, totalling SwF  5.7 billion in 2009 -2011. This figure is out 
of proportion with agriculture's contribution to GDP (3.9  billion in 2010), as indicated in the 
Secretariat Report.  
4.54.  Agricul tural protectionism contrasts sharply with the liberalization of trade in manufactures. 
This disparity is reflected in the WTO negotiations, in which Switzerland maintains a position that 
stands in the way of progress in correcting the distortions which st ill affect agricultural trade, 
a matter of crucial importance to many developing countries.  
4.55.  We will closely follow the new 2014 -2017 Agricultural Policy, which is before Parliament.  
HONG  KONG,  CHINA  
4.56.  Hong Kong, China has long maintained close and cordial ec onomic relations with 
Switzerland and Liechtenstein. With the entry into force of the Free Trade Agreement between 
Hong Kong and the Member States of the European Free Trade Association (EFTA) in late 2012, we 
expect our trade and investment ties with Swit zerland and Liechtenstein will take new heights.  
4.57.  We appreciate that Switzerland and Liechtenstein have bound 99% of their tariff lines and 
applied a low average tariff rate of 2.3% to non -agricultural goods. However, only 18.8% of 
non-agricultural lines ar e duty free.  International tariff peaks are also applied to ce rtain WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  non-agricultural products, in cluding textiles and clothing. We would encourage Switzerland and 
Liechtenstein to improve in these aspec ts further to liberalise trade.  Moreover, we note cust oms 
duties are still calculated on the basis of quantity ins tead of value.  We believe this is anachronism 
and would encourage Switzerland and Liechtenstein to change them to one based on value.  
4.58.  We note that the agricultural sector of Switzerland and Liecht enstein remains highly 
protected. The average level of applied tariff on agricultural products is esti mated to be about 32% 
in 2012. Various measures are in place to provide domestic support and stimulate production, 
including subsidies, direct payments an d interest -free credit schemes.  In Switzerland, export 
subsidies are available to certain products to compensate the price gaps between t he domestic and 
world markets. As a result of these and other measures, Switzerland's support to agricultural 
producers  was almost three times the OECD average for the period  of 2009 -2011. We strongly 
encourage Switzerland and Liechtenstein to review their measures with a view to reducing the 
level of protection and distortion, and further liberalizing the agricultural sec tor. 
4.59.  Switzerland participates very actively and positively in the WTO negotiations on the draft  
Trade Facilitation Agreement. It has initiated and co -sponsored a significant number of proposals, 
including the temporary admission of goods/inward and outward  processing, goods in transit, risk 
management, separation of release from clearance, and more, and giv en support to other 
proposals. We appreciate Switzerland’s constructive participation in the negotiations, and look 
forward to working closely with Switz erland and other WTO Members towards an early conclusion 
of the agreement.  
4.60.  We are pleased to note that Switzerland and Liechtenstein do not have any anti -dumping, 
countervailing o r safeguard measures in place. We commend the two countries’ continuous effor ts 
in containing the use of contingency measures.  
4.61.  We commend Switzerland's active engagement in the anti -dumping negotiations for seeking 
to clarify and improve the relevant trade disciplines.  Both Hong Kong, China and Switzerland share 
the same objective of strengthening the Anti -dumping Agreement to forestall the abusive use of 
such trade instrume nt for protectionist purposes. We shall continue to work constructively with 
Switzerland and other Members on improving the multilateral trade rules and to bring  the 
negotiations to a fruitful conclusion.  
4.62.  In 2010, Switzerland introduced the Cassis de Dijon principle which allows products that are 
lawfully marketed in the EU or the European Economic Area (EEA) to be marketed in Switzerland 
without further checks re gardin g their technical requirements.  Similarly, Liechtenstein also allows 
goods produced in conformity either with Swiss or EEA regulat ions to be sold in its country.  We 
welcome these arrangements as they can reduce technical barriers to trade and facilit ate free flow 
of goods.  
4.63.  Switzerland is also amending its food law to lift the “positive principle” for foodstuffs, so that 
most foodstuffs and additives offered for sale will no longer need prior approv al by the relevant 
authorities.  In addition, Switzerla nd is a member of various bilateral and regional mutual 
recognition agreements (MRAs) on the conformity assessment procedures of various products. We 
would encourage Switzerland to continue engaging in the development of MRAs to further facilitate 
the free  flow of international trade.  
4.64.  Turning to trade in services, Hong Kong, China shares very similar ambition with 
Switzerland for a liberalised services regime underpinned by robust disciplines to prevent 
cumbersome domestic rules whi ch restrict and distort t rade. We look forward to our continuous 
and close cooperation in achieving our common goal.  
4.65.  Switzerland and Liechtenstein have gen erally open investment regimes.  Most economic 
sectors are open t o local and foreign investors. However, investment restriction s continue to apply 
in Switzerland to areas under state monopolies like postal, insurance, and rail transport services.  
Restrictions in the form of residency requirements also apply in certain sectors such as air 
transport. Liechtenstein’s investment rest rictions mainly apply in public utilities as well as a  
number of financial services. Hong Kong, China would encourage both Switzerland and 
Liechtenstein to review and further relax their existing restrictions.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  EUROPEAN  UNION  
4.66.  The EU is pleased to participat e in the 4th Trade Policy Review of Switzerland and 
Liechtenstein and discuss developments in their trade policies and practices since the previous 
review in 2008.  
4.67.  Switzerland and Liechtenstein, both landlocked countries in the heart of Europe, are among 
the wealthiest countries in the world; just only to mention that, in terms of gross national income 
per capita, in 2011 Switzerland ranked seventh and Liechtenstein second in the world.  
4.68.  Switzerland and Liechtenstein have formed a customs and monetary union , with Switzerland 
acting on behalf of Liechtenstein in monetary, agricultural, and much of trade in goods policies. 
This explains why their economies are highly integrated and why the two countries under review 
pursue similar economic strategies, includin g in areas such as manufacturing and services. 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 policy. Trade is also a 
very importa nt driving force of the Swiss and Liechtenstein economies, with the GDP shares of 
trade in goods and services of almost 100%.  
4.69.  Switzerland and Liechtenstein are among our closest neighbours, not only geographically, 
but also culturally and economically. Sw itzerland is the EU's third largest economic partner, after 
the US and China. In turn, the EU is by far the most important trading partner for Switzerland, 
accounting for 78.4% of its imports and 57.4% of its exports in goods in 2011, respectively. 
Liechte nstein’s exports to the EU amounted to €1.1 billion in 2011, representing about 60% of 
total exports (without counting those to Switzerland), while goods directly imported from the EU 
worth about €1.3 billion.  
4.70.  Our preferential trade agreement with both cou ntries, which was part of an overall EU – 
EFTA cooperation, dates back to 1972. Since then, Switzerland and Liechtenstein have built up 
strong economic relationships with its European neighbours. Starting point for this is their 
membership to the European Free Trade Association. Within this context Liechtenstein took a step 
further in joining the European Economic Area and thus fully participates in the internal market of 
the European Union. Switzerland, since the rejection of the ratification of the EEA Ag reement in 
1992, attempts to improve access to the EU market by sector specific agreements designed to 
complement the old free trade agreement. Although substantial progress was achieved both sides 
were unable to agree on a general agreement liberalising t rade in services or to implement 
measures allowing for the free movement of goods. In addition, investment restrictions continue to 
apply to insurance, rail transport and certain postal services.  
4.71.  Since 1999 Switzerland and the EU have as well deepened the ir trade relations notably in 
the area of customs procedures and mutual recognition of conformity assessments and trade in 
agricultural and processed agricultural products.  
4.72.  Switzerland and Liechtenstein have a policy of promoting themself as a stepping st one to 
the EU market for both third country based and EU based companies alike. In particular 
Switzerland became an important hub for trading, holding companies and license management. 
Geographical and cultural proximity to the main markets is an important  natural asset. Of concern 
are specific advantages offered on company taxation, lacking co -operation in competition law 
enforcement, cross border labour law issues as well as limited information exchange, flexible 
accounting standards, and reduced financia l supervision.  
4.73.  The EU maintains very close cooperation to Liechtenstein and Switzerland, which goes well 
beyond trade. It also comprises many other policy strands, such as education, social and economic 
cohesion, research and environment, amongst others. I n most areas Liechtenstein is strongly 
integrated into EU policies by virtue of the EEA Agreement. But also in relation to Switzerland the 
agreements signed since 1999 have considerably increased the areas of policy coordination. Let 
me recall, that in 201 0 an agreement was signed on Swiss participation in EU education, 
professional training and youth programmes.  
4.74.  Leaving aside our bila teral relations, the EU recogniz es the importance and dependence of 
both economies on external trade and understands the nee d of Switzerland and Liechtenstein to WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  improve the access to foreign markets extending the network of free -trade agreements, although 
the EU believes that this trend makes their trade regimes increasingly complex. Indeed, since their 
last Review, eight new FTAs concluded under EFTA have entered into force. In addition, a bilateral 
FTA between Switzerland and Japan entered into force in 2009.  
4.75.  Switzerland and Liechtenstein remain staunch supporters of the multilateral trading system, 
advocating resistance to protectionism since the financial crisis developed. The EU shares with 
them the efforts to break the current deadlock, considering necessary to overcome the DDA 
impasse.  
4.76.  The EU, Switzerland and Liechtenstein have important common interests, including our 
longstanding shared support for the WTO.  
4.77.  From a trade policy perspective, agriculture remains the "Achilles heel" of the Swiss and the 
EU thinks that there is room for significant improvement on agriculture, which is still highly 
protected by tariff and no n-tariff measures. Our hope is that such improvements can be achieved 
with the planned new Agricultural Policy 2014 -2017. The EU encourages Switzerland to re -arrange 
and fine -tune the direct payments scheme to improve its effectiveness and address conflict s with 
WTO Green Box criteria. Also, export refunds available for agricultural components in processed 
food should be adjusted to meet the disciplines set out in the WTO agreements. The EU finally 
encourages Switzerland (as Liechtenstein already abandoned similar schemes) to bring to an end 
those cantonal tax schemes which grant indirect subsidies for Swiss exports of goods and services.  
CHILE  
4.78.  Chile is one of the Latin American countries with the  highest proportion 
of Swiss  descendants. The Republic of Chil e has had two presidents of Swiss extraction, as well as 
numerous academics, businesspeople, and ministers of State of Swiss lineage.  
4.79.  Swiss immigration to Chile took place mostly at the end of the 19th century and involved 
exclusively German -speaking Swiss . It is estimated that more than 8,000 Swiss immigrants 
received land grants. They arrived in southern Chile and to this day, their descendants co ntinue 
to work mostly in farming, livestock breeding, the dairy industry, cheese production, tourism, 
gastrono my, or chocolate -making. This is why in the southern part of the country one hears  
of "Chilean Switzerland".  
4.80.  Chile, Switzerland and Liechtenstein share a high degre e of dependence 
(approximately  80%: Chile 72 % and Switzerland 89 %) on international trade, a nd all three 
countries accordingly view the strengthening of the multilateral trading system as both a priority 
and a necessity.  
4.81.  Dependence on international trade is reflected in the active p articipation of Switzerland 
and Liechtenstein in the business of this Organization. It is also reflected in their signing  
of 26 free trade agreements, in addition to the many agreements governing their relationship with 
the European Union.  
4.82.  Our trade relations are governed by an agreement signed within the framework of t he EFTA. 
This agreement, which it was my honour to negotiate on behalf of my country, has been in force 
since 2004.  
4.83.  Chile's economic relationship with Switzerland and Liechtenstein grows stronger year 
after year. It has great potential yet, and must contin ue to grow. In 2012, trade 
totalled US$1.4 (1.392)  billion, which amounts to 0.9 % of Chile's total international trade. 
In 2012, Switzerland accounted for 84 % of the total traded by Chile with EFTA, followed by 
Norway, which  accounted for 13 %. 
4.84.  Chile, like other countries, wishes to take this oppo rtunity to urge Switzerland 
and Liechtenstein to expedite liberalization of the agricultural sector. Although there have been 
some tariff -reduction initiatives since the last Trade Policy Review, in general there re mains a high 
level of import protection in the agricultural sector. For example, meat and dairy products are 
protected by average tariffs of over 100 % and tariff peaks nearing 1,700 % (1,676 %). There is WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  also a complex system of tariff quotas in effect, in a ddition to certain export subsidies which 
continue to be applied.  
4.85.  An analysis of the WTO Tariff Profile of Switzerland and Liechtenstein reveals that the 
average tariff applied to agricultural products (MFN) is 31.9 %, an average which for Chile, despite 
the FTA, comes to 30.6 %. Meanwhile, Chile applies to agricultural imports a rate (MFN) of 
only 6%. In other words, this is a case of reverse special and differential treatment.  
4.86.  We share with Switzerland and Liechtenstein the same views and principles as rega rds the 
other areas covered by the WTO (services, industrial goods, rules, dispute settlement, trade 
facilitation, etc.).  
4.87.  I would not wish to end this statement on a negative note, because Chile admires 
Switzerland's actions and presence in the internation al community. Recently, a distinguished 
economist friend of mine who was visiting Geneva said to me, "Switzerland is an impossibility; 
it defies all the parameters of economic development: it is a small country without raw materials, 
without direct access to the sea, mountainous, and communication within its borders is by 
no means easy, with its four languages and four distinct cultures. It should be a developing 
country!" . Yet despite this, Switzerland is one of the richest countries in the world. It is hi ghly 
competitive, has one of the highest standards of living in the world, and has a high international 
profile. It is an example to be followed in many respects, including its robust and deep -seated  
democracy, its  macroeconomic stability, its championing of international peace and security, its 
educational system, and its protection of the environment. As regards energy, Chile is closely 
following the Swiss Government's goal of ensuring the country's electrical supply without resorting 
to nuclear energy by  2050.  
4.88.  I will conclude with an anecdote. One of our Nobel laureates in literature, Pablo Neruda, 
while in exile, chose the town of Nyon in Switzerland as the place to spend his honeymoon. In fact, 
Neruda created his own flag, which he raised at each of his  various residences in Chile. H is was 
a white flag with a fish at its centre; it was a copy of the flag of Nyon. Thus, the ties between Chile 
and Switzerland have also extended to poetry. Luckily for Neruda, TRIPS did not exist back then.  
JAPAN  
4.89.  We are plea sed to note that Switzerland and Japan will celebrate 150 years of diplomatic 
relations and friendship next year. Both countries have also worked closely in terms of economic 
relations, such as having concluded economic partnership agreement which entered into force in 
2009. Trade between Japan and Switzerland has been generally expanding since then.  
4.90.  The Report  by the Secretariat considers the EPA as one of the reasons why Switzerland and 
Liechtenstein experienced stronger than expected growth in the period  after the global economic 
crisis. Japan also hopes that it will develop the traditional good relationship further with 
Switzerlan d and Liechtenstein.  
4.91.  Let me turn to Switzerl and’s and Liechtenstein’s macro economic environment and policies. 
According to the  Report  by the Secretariat, despite GDP contraction in 2009 due to the severe 
global financial crisis, both economies started recovering quickly. In addition, they achieved the 
recovery through the implementation of economic stabilization measures, without  introducing 
protectionist trade measures. Japan commends that both countries generally maintained liberal 
trade regimes even du ring the crisis.  
4.92.  The Report  by the Secretariat mentions that Switzerland and Liechtenstein remain staunch 
supporters of the mult ilateral trading system. Based on a firm conviction of centrality of 
multilateral trading system, they have be en active participants in DDA ne gotiations as well as 
other regular activities of WTO. They are also participants to GPA and ITA and their expansi on 
process. Also Japan appreciates Switzerland’s participation in new negotia tion on trading services.  
4.93.  Japan also notes that they are active in concluding FTAs and other arrangements for 
economic integration with outside, includi ng Mutual Re cognition Agree ments.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.94.  According to the Report  by the Secretariat, the main regulatory changes for financial 
services in Switzerland occurred since the last review. They include the reinforcement of banking 
supervision by the Swiss Financial Market Supervisory Agency. Jap an hopes that such a regulatory 
reform will continue to ensure fai r and efficient implementation.  
COSTA  RICA 
4.95.  It is very much in Costa Rica's interest to be part of this Trade Policy Review of Switzerland 
and Liechtenstein, particularly because of the signi ficant ties which exist between our countries. 
Switzerland is our main trading partner among the four countries which make up the 
European  Free Trade Association (EFTA). Precisely one year ago, Costa Rica and EFTA launched 
negotiations for a trade agreemen t which would provide legal certainty for trade and investment 
between the  parties and would strengthen our trade relations. The negotiations ended 
satisfactorily and  at present, the treaty is under legal review. We hope to be able to sign it at the 
end of  the first half of 2013.  
4.96.  My delegation would like to highlight the importance which both countries place on active 
participation in the multilateral trading system. We are pleased with the joint work carried out 
in groups such as the Friends of the System and the Colorado Group, and the plurilateral initiative 
regarding services. We would especially like to acknowledge the important role which Switzerland 
has played in negotiations such as NAMA, the review of the Dispute Settlement Understanding, 
and the ne gotiations on standards, such as those regarding anti -dumping. This active participation 
demonstrates the commitment of Switzerland and Liechtenstein to the multilateral trading system.  
4.97.  As others have pointed out, despite the global economic crisis, the ec onomic performance  
of these two economies is enviable. The fiscal surpluses accumulated before the crisis and the 
economic stabilization measures applied, including infrastructure -spending policies and 
labour -market measures, have made it possible to keep unemployment in check at 
around  3%-4%, which is one of the lowest rates in the OECD and far below rates in the rest 
of Europe.1 
4.98.  Trade continues to be an important driving force for both countries; its contribution to GDP 
exceeds 100 %, making both economies  highly susceptible to changes in global demand. As well, 
the strong appreciation of the Swiss franc in relation to other currencies significantly undermines 
the competitiveness of the country's exports.  
4.99.  Although Switzerland and Liechtenstein are exemplary  in many respects, we are concerned 
by their high level of import protection for agricultural products, as emphasized in the Secretariat 
Report . We are also concerned by their complex system of tariff quotas. Furthermore, the level 
of protection for agricu lture in Switzerland is still three times the OECD average. We would be 
interested to learn more about the steps being taken with regard to the 2014 –2017 Agricultural 
Policy and about how distortions in this sector will be reduced.  
BRAZIL  
4.100.   Switzerland and L iechtenstein stand out among the wealthiest countries in the world. Their 
economies are founded on services and capital -intensive manufacturing, with a large participation 
of research and development.  
4.101.   Both have striven to strengthen the WTO and the Multila teral Trading System. They have 
demonstrated to be fully committed to the successful conclusion of the Doha Round and to the 
negotiations to reach a deliverables package until the Ninth Ministerial Conference, in Bali. It is 
worth noting that Brazil and Sw itzerland have similar positions in the Doha Round regarding 
geographical indications, and Brazil looks forward to continue working in Switzerland and this 
issue.  
4.102.   Since their last TPR, Switzerland and Lichtenstein have successfully faced the challenges 
posed by the international financial crisis. We note with satisfaction that Switzerland, in particular, 
has experienced a 1.3% average yearly growth since 2008. An important contributor to this 
                                               
1 11.6% in the euro zone. Source: http://www.oecd.org/std/labour -stats/HUR_NR11e12.pdf . WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  success was the ability of the Swiss monetary authority in handli ng the challenges posed by the 
appreciation of the Swiss Franc.  
4.103.   The record value of the Swiss Franc in the end of 2011 shows how the turmoil in the 
financial markets may have a destabilizing effect on other economies. Switzerland has one of the 
most produ ctive and competitive industries in the world, and yet its companies were strongly hit 
by the unprecedented appreciation of the Swiss Franc. The SNB bold decision to intervene and to 
set a ceiling for the value of the Swiss Franc was not an easy one. It de monstrates how seriously 
countries may have to respond to a currency appreciation led by external factors.     
4.104.   Trade volume between Brazil and Switzerland has grown 35% since 2007, amounting to 
US$4.5 billion in 2012. There is a consistent commercial surpl us in favo ur of Switzerland, of 
approximately 25% of total bilateral trade flows. Ninety eight per  cent of Swiss exports to Brazil 
are composed by manufactured goods such as medicines, machinery and organic chemicals. 
Brazilian exports to Switzerland are c oncentrated on semi manufactured products, largely gold and 
alumin ium. 
4.105.   At this juncture, it is worth noting that food products, in which Brazil is highly competitive, 
accounted for no more than 8% of Brazilian exports to Switzerland and Lichtenstein. This shy 
record reflects the extraordinary level of tariff protection and subsidies accorded to the agricultural 
sector.  
4.106.   It is a cause for concern for Brazil that Switzerland imposes tariffs exceeding 100% and 
peaks of up to 1,676% on essential goods such as a nimal and dairy products. The Report  by the 
Secretariat confirms that Switzerland and Lichtenstein are viewed as “high -price islands” in Europe 
due to, among other reasons, the high level of tariff protection in agriculture.  
4.107.   Additionally, while imposing t ariff-quotas in agriculture leading to a level of support that 
amounts to almost three times the OECD average, Switzerland seems to administer these quotas 
in a manner that discriminates between domestic and foreign products.  
4.108.   Protectionism in agriculture hinders the overall competitiveness of the Swiss industry and 
harms the interests of farmers in the developing world. A more market -driven approach towards 
agriculture would certainly benefit not only businesses but also consumers in Switzerland and 
would help promote development in other parts of the world, especially in the Least Developed 
Countries.  
4.109.   A market -driven approach to agriculture requires efforts in the short term that will bear 
fruit in the long run by eliminating protectionist, distortive poli cies. Brazil is hopeful that 
Switzerland, given its proven excellence in a number of sectors, will take more effective steps to 
address the competitive challenges facing its agricultural sector.  
4.110.   Bilateral relations with Switzerland and Lichtenstein have al ways been close and 
constructive. Brazil and Switzerland signed a Memorandum of Understanding for the establishment 
of a Strategic Partnership Plan in 2008, and have maintained various bilateral mechanisms for 
dialogue and cooperation.  
4.111.   The role of Swiss in vestments and companies in the Brazilian economic development is of 
major importance because of the amounts involved and, more importantly, their quality. Between 
2001 and 2011, Swiss companies invested US$12. 5 billion in our country, with a marked presenc e 
in the food, pharmaceutical, machinery, insurance and energy industry. We hope this continuous 
investment inflow to increase and contribute to job and technology creation in Brazil.  
CANADA  
4.112.   Switzerland and Liechtenstein are deeply committed to the multila teral trading system and 
to on-going liberalization efforts, with Switzerland, exercising leadership at the WTO as host and a 
key delegation. Like Canada, Switzerland and Liechtenstein are trading nations largely dependent 
on foreign markets for their econ omic prosperity. We work together with Switzerland in many 
areas at the WTO, including plurilateral negotiations on services, negotiations on trade facilitation 
and on the expansion of the coverage of the Information Technology Agreement. The Secretariat WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  Report  and the Discussant’s opening statement confirm that Swiss policies over the review period 
have created an attractive environment for business and investment, as well as for trade in goods 
and services.  
4.113.   Despite the deadlock in Doha Development Agenda negotiations, Switzerland 
and Liechtenstein have multiplied their free trade agreements. Canada has benefited from the 
increasing importance given to bilateral agreements by these two countries, as shown by the entry 
into force of the Canada -EFTA Free Trad e Agreement since the last Trade Policy Review. Canada is 
pleased to see the positive effects of this agreement, which came into force in 2009. The p arties 
to the agreement have begun exploratory discussions aiming to expand the agreement's scope 
so that i t includes other areas, such as investment, services, and government procurement.  
4.114.   Since the last Review, Switzerland and Liechtenstein have had to weather several 
economic storms. Despite some backward steps, various sectors have retained t heir vigour than ks 
to judicious policies. Because we attach particular importance to our relationship with Switzerland 
and Liechtenstein, we would like to share some of our concerns in order to maintain and further 
develop this relationship.  
4.115.   Canada encourages Switzerland to extend its trade liberalization efforts to the agricultural 
sector. A substantial reduction in trade -distorting domestic support measures and improved 
market access for all agricultural and food products would benefit both Switzerland and its trading 
partners. Canada takes note of the considerable progress made in this regard and looks forward 
to further agricultural policy reforms in Switzerland and Liechtenstein. Canada also welcomes the 
recognition of the equivalence of Canadian and Swiss or ganic prod ucts, as announced 
in December  2012.  
4.116.   Despite those concerns about Switzerland’s agriculture policies, we enjoy a very healthy 
trading relationship. In fact, trade and investment between Canada and Switzerland and 
Liechtenstein is strong and continues to gr ow. We have developed a sophisticated bilateral 
commercial relationship spanning from the traditional export/import of goods to greater trade in 
services, innovation and investment. Together, Switzerland and Liechtenstein are our 16th largest 
merchandise t rading partner with two -way trade totalling US$4.4 billion in 2012. Our mutual 
exchange of foreign direct investment with the two countries is also significant, even as certain 
restrictions on investment remain in Switzerland.  
4.117.   The World Economic Forum Glob al Competitiveness Report ranked Switzerland as the most 
competitive economy in the world for 2012 -2013, a distinction it has held for a number of years 
now. Switzerland’s innovation -driven and knowledge economy provides foreign companies and 
institutions with opportunities for collaboration and attracting investment in R&D sectors. In our 
case, the science and technology agreement between Canada and the EU provides an additional 
framework for Switzerland to leverage funding for collaborative project. Beyon d the S&T sector, 
there are other areas of collaboration between Switzerland and Canada, including the signature of 
the Canada -Switzerland Tax Convention and the Canada -Switzerland Air Transport Agreement.  
4.118.   We appreciate the opportunity for this constructi ve exchange of views on all aspects of 
Switzerland and Liechtenstein’s economy. We have submitted a number of questions and look 
forward to reviewing the responses. Finally, we wish the delegation the utmost success during this 
review.  
MÉXICO  
4.119.   Switzerland a nd Liechtenstein are among the most prosperous countries in the world. 
They have achieved this as a result of their macroeconomic stability and openness to trade , 
among  other things. Both countries quickly recovered from the int ernational financial crisis 
and have been able to deal with the challenges generated by the sovereign debt crisis afflicting 
some of the members of the European Union.  
4.120.   We acknowledge the efforts Switzerland has made to re main a world leader in terms 
of competitiveness, to be one of t he countries ' most attractive to foreign investment, and to keep 
its unemployment rate low at an admirable level of 3 %-4%. WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.121.   The strength of the Swiss franc has, without a doubt, provided more than one challenge 
for the economies of both countries. As shown by the 2011 OECD Economic Survey of Switzerland, 
the Swiss franc's condition as a safe -haven currency feeds latent tensions associated with the 
competitiveness of its exporting sectors.  
4.122.   The Report repeatedly refers to the importance of foreign trade in goo ds and services, 
which  exceeds 100 % of GDP, as a driving force in the economies of Switzerland and Liechtenstein. 
Mexico acknowledges the efforts Switzerland has made to diversify its trade, despite its geographic 
situation and its natural relationship wit h the European Union, a partner which receives 
around  60% of Swiss exports. These efforts are evident in the expansion of its network 
of free trade agreements; its growing trade relations with Asia, the continent which, in 2011, was 
the recipient of nearly  20% of its exports; its recent trade agreement with Japan; and the 
negotiations under way with other countries in the region.  
4.123.   Unlike Switzerland's manufacturing and services sectors, agriculture continues to be highly 
protected. The country's agricultural  tariffs remain very high, with an MFN average above 30 %, 
putting Switzerland in 128th place out of 136  countries with available data, according to tariff 
profiles published in 2011. Agricultural products such as dairy and meat products receive 
prohibitive  protection, with tariffs exceeding 100 % in ad valorem  terms. In addition, the multiple 
subdivisions of the 28 tariff quotas make its system extremely complex, hindering trade in those 
products.  
4.124.   We cannot fail to stress our concern regarding the high level  of support and protection 
given to agriculture. We would also highlight the need for greater reforms in Swiss agricultural 
policy. Despite the recent reorganization and readjustment ensuing from the review of direct 
payments in the 2014 -2017 Agricultural Policy, the level of support has not been reduced, 
remaining well above the OECD average. It is worrying to us that the reorganization in question 
does not provide for greater market orientation.  
4.125.   We recognize that Switzerland has made a considerable effort  to eliminate export subsidies 
for agricultural commodities. Nevertheless, given the highly distorting nature of such subsidies, 
we urge Switzerland to eliminate those still in effect.  
4.126.   As regards technical barriers to trade, we commend the efforts made to harmonize 
technical requirements by introducing the Cassis de Dijon  principle, which allows products that 
do not comply with Swiss technical regulations to be marketed in Switzerland provided that such 
products are lawfully marketed in the European Union ( EU) or the European Economic Area (EEA) 
and comply with the technical requirements of the EU or the EEA or any of their members. 
Nevertheless, we urge Switzerland to apply this principle to all products in order to facilitate trade.  
4.127.   With regard to competit ion, we invite Switzerland and Liechtenstein to continue developing 
and implementing public policies which encourage the entry of more competitors into their markets 
and stiffen penalties for monopolistic practices.  
4.128.   With regard to financial services, Switz erland and Liechtenstein continue to be among the 
most important financial services centres in the world. We welcome Switzerland's adoption of the 
Basel III capital adequacy principles, and its adoption and implementation of the Capital Adequacy 
Ordinance,  which addresses the "too big to fail" issue and which entered into force 
on 1 January  2013.  
4.129.   I will conclude by acknowledging Switzerland's important role in this Organization and its 
commitment to the multilateral trading system, which makes it the leader  of the group of 
members known as the Friends of the System. We urge Switzerland to expand its role so that it 
further contributes to the efforts to improve disciplines in the areas regulated by this Organization, 
particularly agriculture.  
INDIA  
4.130.   The Swiss and Liechtenstein economies have shown notable resilience during the period 
under review by recovering rapidly from the negative effects of the global financial crisis of 
2008-2009 and the subsequent euro  zone crisis. After a contraction in their GDP in 20 09, the two WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  economies have maintained positive growth rates. Maintaining stability has been a challenge in 
view of the uncertain financial markets and a surge in the Swiss franc caused by the euro  zone 
crisis. However, the Swiss National Bank has been succ essful in limiting the appreciation of the 
Swiss franc by increasing liquidity and setting a minimum exchange rate of SWF 1.20 per Euro 
since September 2011.  
4.131.   Ranked among the richest countries in the world, Switzerland and Liechtenstein are highly 
depende nt on foreign trade which represents almost 100% of their GDP. As a result, their 
economies are deeply sensitive to global demand and exchange rate fluctuations, as demonstrated 
by a slowdown in their exports resulting from a costly Swiss franc and deterio ration in the global 
economic situation. Furthermore, as the EU remains the main supplier of imports and largest 
destination of exports for Switzerland and Liechtenstein, developments in the EU have major 
repercussions for them. A diversification of export  markets would enable Switzerland and 
Liechtenstein to overcome such vulnera bilities.  
4.132.   While trade policies of Switzerland and Liechtenstein are generally liberal, their trade 
regime is complex due to the large number of FTAs concluded by them. There is a high level of 
protection in agriculture with average tariffs of 32% as compared to only 2.3% for non -agricultural 
goods. Meat and dairy products are the most protected, with tariff averages of over 100% and 
peaks of up to 1,676%. The tariff -quota system re mains highly complex with the 28 WTO tariff 
quotas being divided into 58 sub -quotas and aggregated with 80 bilateral preferential -tariff 
quotas. While export subsidies for basic agricultural products were eliminated in 2009, they remain 
in place for certai n dairy products, fl our and other milled products.  
4.133.   Though the share of agriculture is marginal in terms of GDP and total employment, overall 
government support to the agricultural sector remains quite high at almost three times the OECD 
average. As a resu lt, domestic prices of agricultural and food products remain high by international 
standards. We encourage Switzerland to lower protection and exp edite reforms in this sector.   
4.134.   Switzerland and Liechtenstein are among the most attractive destinations for f oreign 
investment in light of their high standards of living, highly skilled labour force, flexible labour laws, 
reliable infrastructure and relatively low levels of taxation. They are also an important source of 
FDI. While their investment regimes are gen erally open, investment restrictions apply in certain 
areas. In this context, we welcome the reforms initiated by Switzerland and Liechtenstein to 
stimulate competition and promote greater openness in sectors such as energy, electricity, 
financial services , transport, etc.  
4.135.   The Swiss decision to allow certain products on the Swiss market without checking their 
technical compliance if they are lawfully marketed in the EU or EEA is welcome, but benefits only 
those members whose products meet EU/EEA technical requirements. Further, the potential gains 
from this initiative are limited by the exclusion of pharmaceuticals and food imports which are 
subject to special approval procedures.  
4.136.   On the bilateral front, economic and commercial relations between Switzerland  and 
Liechtenstein have deepened and diversified over the years. High level visits and business to 
business contacts have contributed to strengthening these ties. India’s bilateral trade with 
Switzerland recorded an all-time high of US$ 33.5 billion in 2011 -2012, primarily comprising 
imports of gold and silver bullion worth approximately US$ 30 billion, and imports of machinery and 
equipment, precision instruments and watches, and chemicals and pharmaceuticals. India’s 
exports to Switzerland comprise textiles  and garments, organic chemicals, carpets, precious stones 
and jewellery, chemicals and leather products. These figures do not include the growing trade in 
services and in visibles like software exports.  
4.137.   Switzerland is the 11th largest investor in I ndia wit h investments worth US$ 2.35 billion up 
to February 2013. Several joint ventures have been set up in India in collaboration with prominent 
Swiss companies in the areas of electrical equipment, chemicals, industrial machinery, 
miscellaneous mechanical and en gineering industries and drugs and pharmaceuticals. Recognizing 
the immense potential of enhancing our bilateral cooperation, India and EFTA launched 
negotiations on a Comprehensive Trade and Investment Agreement. Several rounds of 
consultations have taken  place and we hope for an early conclusion which would give a further 
boost to our trade and commercial ties with Switzerland and Liechtenstein.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.138.   Before concluding, we would like to commend Switzerland’s active role in the WTO and in 
strengthening the mult ilateral trading system.  
UKRAINE  
4.139.   Ukraine has always had good trade and economic relations with Switzerland and today are 
proud to say that we have created yet another opportunity for trade and economic growth by 
signing the FTA with the EFTA States.  
4.140.   This make us attach even more attention to trade regimes of these countries and we 
observe with pleasure a steady growth of the economies of Switzerland and Liechtenstein, which 
are among the wealthiest countries in the world. Despite of some GDP contraction be cause of the 
2008/09 global financial crisis, the two countries quickly managed to recover.  
4.141.   With the entry into force of the Free Trade Agreement between Ukraine and the European 
Free Trade Association in 2012 we are committed to and hope  for further devel opment of our 
mutually beneficial trade and economic relations.  
4.142.   Ukraine and EFTA experts are now finalizing preparatory process for the first meeting of 
the Joint Committee for FTA implementation to be held in May in Kiev. Its agenda is quite 
extensive and  intensive, it will cover the current and future implementation aspects at its 
operational level. We do hope this will bring together the experts in many areas with direct links 
allowing for working dialogue between them. We hope bilateral trade promotion can be ensured by 
growing mutual understanding and commitment to resolve trade issues.  
4.143.   However, as far as non -preferential trade regime is concerned, there are several issues 
Ukrainian experts observe in trade policies and practices in the agricultural sec tor. As an exporter 
of agricultural products Ukraine has concerns about the high level of domestic support provided in 
the agricultural sector, as well as export subsidies granted by the government for some 
agricultural products.  
4.144.   Besides, we are concerned with high levels of average tariffs on agricultural products, in 
particular, meat and dairy products, the complexity of tariff quota allocation system and the 
application of the "prise en charge".  
4.145.   We also note the complicated system of specific duties, whi ch leads to the lack of 
transparency and predictability, and a complex scheme of variable tariffs to protect domestic 
producers of cereals and oilseeds.  
4.146.   We believe that further market -oriented steps are needed to enhance competition in the 
agricultural sec tor. 
THAILAND  
4.147.   The two -way trade between Thailand and Switzerland and Liechtenstein for the past three 
years averaged at US$11.76 billion  and US$163.6 million. At the end of 2010 and 2011, the trade 
value was registered with increasing trend; however, at th e end of 2012, the trade value slightly 
decreased for about 8.9 % with Switzerland and 4.7 % with Liechtenstein. Switzerland and 
Liechtenstein together rank as our eleventh global trading partner and Switzerland alone is our 
largest trading partner in Europe . 
4.148.   Switzerland and Thailand celebrated the 80th anniversary of di plomatic relationship in 
2010. Our bilateral trade relationship includes the Swiss -Thai Chamber of Commerce, established 
in Bangkok in 1992 and the Agreement on the Promotion and Reciprocal Pr otection of Investment.  
Swiss consumer and luxury goods are very popular in Thailand, and Switzerland is one of the most 
important Thai to urists’ destinations in Europe.  When we consider foreign direct investment value 
in Thailand, Switzerland ranks third  among European countries and comes 10th globally.  
4.149.   Thailand also established a good diplomatic and commercial relationship with Liechtenstein 
and we appreciate the tie developed over the past years.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.150.   Not only do we appreciate our bilateral relationship wit h these two countries, but Thailand 
also hopes that the regional trade agreement negotiations between Thailand, and EFTA countries, 
including Switzerland and Liechtenstein, can resume and reach a successful development in the 
future.  
4.151.   With regard to the mul tilateral trading system, Thailand appreciates that the trade regime 
of Switzerland and Liechtenstein remain generally liberal, with a relatively low MFN rate for non -
agricultural goods at 2.3 %. The investment regimes of the two countries are also generall y open 
with some rest rictions. Thailand recognizes Switzerland and Liechtenstein’s high protection on the 
agriculture sector in both tariff and non -tariff measures, and would like to see if the two countries 
can reduce any protection in this sector so that  the market -oriented reforms can be accelerated.  
4.152.   Thailand and Switzerland also have similar views and interests in maintaining the balanced 
multilateral trading system, and Thailand is looking forward to continuing this work and effort with 
Switzerland and  other Members with this objective.  
NORWAY  
4.153.   Norway, Liechtenstein and Switzerland constitute, together with Iceland, the European 
Free Trade Association. We enjoy a long -standing  partnership and continue to cooperate very 
closely to develop free trade relat ions with an increasing number of partners in our immediate 
neighbourhood as well as further afield. We are therefore fairly well acquainted with Swiss trade 
policy. Although we do not necessarily agree on all issues we usually find a common way forward. 
We would like to thank Switzerland and  Liechtenstein for the close co operation during these 
negotiations. Our relations are such that we often talk about ourselves as members of the EFTA 
family.  
4.154.   Liechtenstein and Norway are also partners in the development of the Agreement on the 
European Economic Area which effectively extends the internal market of the European Union to 
the three EFTA states Iceland, Liechtenstein and Norway.  
4.155.   As Switzerland's and Liecht enstein Report  confirms, their G overnments remain deep ly 
committed to a strong multilateral trading system. Norway recognizes and appreciates the active 
participation of Switzerland and Liechtenstein in the WTO.  
4.156.   As evidenced in the reports, both Switzerland and Liechtenstein have open economies, 
with low tari ffs and generally few restrictions on trade in goods and services, as well as on foreign 
investment. Both countries refrain from applying anti -dumping and countervailing measures, 
indeed they have never done so. They have also not imposed any safeguard mea sures since the 
previous TPR.  
4.157.   Norway has close co operation with Switzerland and Liechtenstein in a number of areas 
both in the DDA and in the regular activities of the WTO. Agriculture is one, where we coop erate 
very closely within the G -10 and where our p ositions are well known. Switzerland and 
Liechtenstein attach importance to non -trade concerns in agriculture. These are concerns that are 
understood and shared by Norway.  
4.158.   We also appreciate our good collaboration within the context of ITA -expansion and th e 
TISA-process.  
4.159.   In the current global turbulence all countries with open economies will be challenged by 
the economic slowdown. An important challenge now is to avoid a proliferation of trade -restrictive 
measures by WTO Members. It is highly appreciated th at Switzerland and Liechtenstein, like 
Norway, are firmly committed not to use protectionist measures to cope with the current crisis.  
4.160.   The regulatory regime for the financial sector is highly topical. Switzerland is one of the 
most important financial cent res in the world, attracting high volumes of foreign business. A liberal 
regime on capital movements and a tradition of bank secrecy is well -known (cf. paragraph 4.62). 
At the same time, Switzerland is one of relatively few countries taxing financial trans actions at a 
substantial level. A transfer duty is levied on transfers of domestic or foreign securities. Another 
duty is levied on issuance of shares of Swiss corporations (while the stamp duty on the issuance of WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  corporate debt securities and money market  papers was abolished in 2012). The regulatory regime 
is thoroughly described in the documents prepared by the Secretariat, while taxation is not 
mentioned. It would be interesting to hear from the Swiss Delegation if there is evidence  of trade 
effects or other trade relevance of the relatively heavy tax burden on financial transactions.  
4.161.   Norway takes great satis faction from our close co operation with Switzerland and 
Liechtenstein in this organization, and commend s their commitment to both safeguarding the 
existing architecture of the multilateral trading system as well as contributing to its further 
development.  
TURKEY  
4.162.   During the review period, like most WTO Members, Switzerland and Liechtenstein have 
suffered the negative effects of the global economic cris is. However, after three quarters of 
economic decline, Switzerland and Liechtenstein experienced stronger than expected growth from 
mid-2009. This was driven largely by domestic demand, but also by recovery in foreign trade, 
supported by preferential acces s under new trade agreements with Japan and the free movement 
of persons in Europe.  
4.163.   However, as mentioned in  the Secretariat Report , with the deepening of the sovereign debt 
crisis in the euro zone from 2010 onwards, economic recovery lost momentum in 2011  and as 
result Swiss annual GDP growth declined from 3% in 2010 to 1.9% in 2011. The decline in global 
demand, in combination with the appreciation of the Swiss franc, has negatively affected exports, 
and employment in export -oriented industries.  
4.164.   Although Switzerland and Liechtenstein have a comparatively low level of unemployment 
at around 3%, annual decline in labour productivity between 2008 and 2011 was around 0.53%. 
This remains an issue for concern because its impact on future prospects for GDP growth . We are 
happy to hear from Switzerland that it has a strategy to effectively enhance the level of 
productivity.  
4.165.   Coming to the trade and inv estment front, the Secretariat Report  underlines that "the 
trade regimes of Switzerland and Liechtenstein remain gen erally liberal, except in agriculture, 
which is still highly protected by high tariffs and non -tariff measures. With a share of more than 
100% of GDP, international trade in goods and services plays a dynamic role in the economies of 
Switzerland and Liecht enstein. However, it seems that with this degree of depe ndence on trade, 
both countries  remain exposed  to serious risk factors in international markets such as volatility in 
global demand, appreciation of the currency due to its safe haven status, and resu lting decline in 
competitiveness.  
4.166.   As we all know, Switzerland's investment regime is generally open and liberalized. 
However, investment restrictions continue to apply in areas under state monopoly, including 
certain postal, insurance and rail transport se rvices. Restrictions in the form of domicile 
requirements are also applied in certain sectors, including air transport.  
4.167.   The Secretariat Report  states that although they remain staunch supporters of the 
multilateral trading system, due to the current impass e of the DDA negotiations, Switzerland and 
Liechtenstein have also extended their network of free -trade agreements to help improve access to 
foreign markets. Since their last Review, eight new FTAs concluded under EFTA have entered into 
force (with Albania ; Canada; Colombia; Hong Kong, China; Montenegro; Peru; Serbia; and 
Ukraine). In addition, a bilateral FTA between Switzerland and Japan entered into force in 2009.  
4.168.   We also observe that the structure of the applie d MFN tariff of the 
Switzerland -Liechtenste in Customs Union has changed little since the last TPR. However, the 
simple average MFN rate increased from 8.1% in 2008 to 9.2% in 2012, which reflects in part the 
appreciation of the Swiss franc.  
4.169.   From a trade policy perspective, agriculture remains the w eak point of the Swiss and 
Liechtenstein economies, despite its marginal contribution to GDP and employment. A few tariff 
reduction initiatives have been carried out since the last TPR, but overall the high level of import 
protection in agriculture has bee n left largely untouched.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.170.   Switzerland has taken steps towards reducing technical barriers to trade and enhancing 
import competition in the domestic market. In 2010, Switzerla nd unilaterally introduced the Cassis 
de Dijon principle  for certain products. It is good to see that exports from the broader WTO 
Membership to Switzerland may benefit too. However, the S ecretariat Report  explains that some 
of the potential gains from trade are lost because the Cassis de Dijon principle is not applicable to 
certain pro ducts (e.g. animal feed, pharmaceuticals or certain chemicals), and food imports are 
subject to special approval procedures.  
4.171.   Turkey has an excellent relationship in all areas with Switzerland which is a partly to the 
Turkey -EFTA Free Trade Agreement. Regre ttably, since the last trade policy review, the total trade 
volume between Turkey and Switzerland has declined from US$8.4 billion in 2008 to US$6.4 billion 
in 2012. We hope to see this decline reversed as the Swiss economy recovers from the effects of 
the crisis.  
4.172.   We are very happy that Switzerland and Liechtenstein do not implement any trade policy 
measures against Turkish products. Turkey has close co -operation with Switzerland in the areas of 
international investments, logistics and in the energy sectors . The total volume of Swiss FDI in 
Turkey amounts to US$1.1 billion. There is also a total of 68 Turkish companies operating in 
Switzerland. We , of course, want to improve and deepen our current level of trade and investment 
relations with Switzerland thro ugh all available means, bilateral, regional and multilateral.  
PAKISTAN  
4.173.   Switzerland and Liechtenstein are highly prosperous and advanced economies with per 
capita GDP among the highest in the w orld, highly skilled labo ur force , and low unemployment. 
They w eathered the 2008 -2009 crisis well  due to "debt break" rule and substantial fiscal surpluses. 
The Swiss National Bank (SNB) implemented a zero -interest rate policy to prevent downslide and 
to prevent appreciation of the franc, with the result that Swiss ec onomy rebounded with a 3% 
growth in 2010. Swiss franc is now considered a safe -haven currency.  
4.174.   They have GDP shares of trade in goods and services exceeding 100% and therefore have 
a high dependence on international trade.  
4.175.   Services and manufacturing are th e key sectors of the Swiss and Liechtenstein economies. 
A prominent niche in the world of financial service is another main feature. The economies benefit 
from a highly developed services sector and attract large volumes of foreign business. 
Manufacturing specializes in high -technology products based on R&D. Both are net exporter of 
services. Switzerland's current account has been traditionally in surplus driven mainly by trade in 
services (financial services in particular), followed by investment income.  
4.176.   Switzerland ranked top in overall global competitiveness  in 2012, for the fourth 
consecutive year due to economic and political stability, transparent legal system, modern 
infrastructure, sophisticated capital markets, and low corporate tax rates.  
4.177.   The main economic challenge for the two economies has been the strong appreciation of 
the Swiss franc, which poses a threat to competitiveness. A major objective is to improve 
competition in the domestic market.  
4.178.   The simple average MFN rate increased from 8.1% in 20 08 to 9.2% in 2012, which is also 
attributable, in part, to the appreciation of the Swiss franc.  
4.179.   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.  
4.180.   The Swiss GSP utilization rate varies between 40% and 50% of its potentially because of 
complex rules conferring origin.  
4.181.   Switzerland and Liechtenstein have a high level of protection in agriculture, technical 
barriers to t rade, and have limited competition in various industries. Tariff -quota system remains 
highly complex. Some international tariff peaks are maintained on products such as textiles and WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  clothing, which are of export interest to the developing countries. Accord ing to the Secretariat 
Report, agriculture remains the "Achilles heel" of the Swiss and Liechtenstein economies, despite 
its marginal contribution to GDP and employment. Swiss support and protection for agriculture is 
still almost three times the OECD aver age and the Secretariat Report recommends that the 
process of market -oriented reforms needs to be faster in order to catch up with its OECD peers.  
4.182.   Switzerland and Liechtenstein have extended their network of FTAs, which has been 
adjudged to make their trad e regimes increasingly complex.  
4.183.   Switzerland has been an active player in fostering the MTS. It has retained the chair of 
NAMA for a long time, besides an active role as coordinator of Friends of System. We hope for an 
active Swiss role in developing a bala nced Bali package.  
4.184.   Pakistan's exports to Switzerland include articles of apparel and other made textiles, 
ethanol, leather items, etc. In 2012, Pakistan was the first s upplier of the Swiss market in e thanol, 
Pakistan supplied 41% of the total ethanol impor ted by Switzerland. Swiss exports to Pakistan 
include pharmaceutical products ; nuclear reactors; boilers;  machinery and mechanical appliances; 
clocks  and watches, organic chemicals.  
EL SALVADOR  
4.185.   According to the reports made available by the Secretariat, bo th Members are among the 
world's richest countries, with a per capita GDP of US$42,783 and a growth rate averaging 2.2 %, 
owing to the impetus provided by exports and private consumption. Their trade regimes during the 
period under review remained liberal, except in agriculture, which is still highly protected by tariff 
and non -tariff measures. We note that the Swiss competition regime has been strengthened in 
sectors such as agriculture, healthcare, and public transport.  
4.186.   Competition continues to be limited,  which, according to the reports presented, is part of 
the reason why the prices of certain products are high. Various initiatives to stimulate competition 
and check high prices were launched during the review period. As well, the new 2014 –2017 
Agricultura l Policy is currently before the Swiss Parliament.  
4.187.   We note that the Swiss investment regime is generally open to foreigners. However, 
investment restrictions continue to apply to areas under State monopoly, such as certain postal, 
insurance, and rail trans port services. Liechtenstein also has an investment regime which 
is generally open. Restrictions are applied to investment in public services, as well as to a number 
of financial services (asset management, investment consulting, and trusteeships). There a re also 
residency requirements.  
4.188.   Within the framework of our bilateral relationship, I am pleased to say that Swiss 
investment in El Salvador amounted to some US$150  million in the period 2008 -2013, in sectors 
such as textiles and clothing, cement (Holcim c ement works), and certain services sectors. 
In the trade sphere, given that El  Salvador is seeking to improve its trade balance  with a view 
to achieving a surplus, our authorities have identified business opportunities in agro -industry 
segments such as org anic fruits and vegetables, processed f ruits and vegetables, 
and other  organic products.  
4.189.   Within the multilateral framework, we agree with Switzerland in considering the 
strengthening of the multilateral trading system as a priority for the Membership as a whole. 
In our view, multilateralism is the ideal means of ensuring trade liberalization and protecting 
economic operators (State, business, public sector, etc.), particularly because small countries such 
as ours are able to better defend their interests wi thin a multilateral framework than under the 
potentially "unequal" circumstances of a bilateral relationship.  
4.190.   As regards the WTO trade negotiations, Switzerland and Liechtenstein actively participate 
in the various negotiating areas of the Doha Development  Agenda, making proposals and taking 
part at a highly technical level in the Committee on Agriculture and in the Negotiating Group 
on Non-Agricultural Market Access (NAMA), which is chaired by the Swiss Ambassador.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.191.   As regards the regular work of the Organi zation, Switzerland has kept a subtle but 
constant pace, which stimulates the participation of all Members. It has facilitated a space for the 
presentation of ideas and contributions aimed at building a consensus on all the issues 
previously  mentioned so t hat trade can lead to economic growth and the development of our 
countries. I n this context, we express our appreciation to the delegation of Switzerland for the 
work it has done during the period under review, chairing the Management Board of the 
WTO Pension Plan, inter alia . 
4.192.   We also wish to take this opportunity to thank the Building Foundation for International 
Organisations (FIPOI) of the Swiss Confederation and the Canton of Geneva for their support 
for the projects concerning the extra  muros extension  of the Centre William Rappard and the 
building of the security perimeter for the WTO.  
4.193.   Lastly, bearing in mind its role in this Organization, its work ethic, and the  influence 
of its diplomacy and leadership, we urge Switzerland to pursue its agricultural policy reforms 
in order to broaden and strengthen its commitment to trade liberalization. The eliminati on 
of export subsidies, a significant reduction in domestic support, and initiatives to improve market 
access for all agricultural and food products woul d benefit not only Switzerland, but also its current 
and future trading partners.  
4.194.   Our delegation has submitted questions on intellectual property, particularly on patents 
and enforcement of industrial property rights. We look forward to the response from t he delegation 
of Switzerland.  
ECUADOR  
4.195.   Switzerland and Liechtenstein have succeeded in overcoming the adverse  effects 
of the global economic crisis thanks to their accumulated fiscal surpluses and their "debt  break" 
policies prior to the crisis. In addition , Switzerland has implemented countercyclical stabilization 
policies involving infrastructure spending and labour -market management measures, which have 
helped in  the country's economic recovery. Nevertheless, owing to their  general dependence 
on trade the  main vulnerability of Switzerland and Liechtenstein has been the unusual appreciation 
of the Swiss franc in comparison with other currencies, which t hreatens the competitiveness 
of their products on the foreign market. Ecuador understands the two countrie s' concern regarding 
the appreciation of their currency, as this raises the price of their exports ( both goods 
and services) on international markets, something with which my country has had to contend 
as a result of the use of the dollar as legal tender.  
4.196.   According to the WTO Secretariat Report , trade policies have not noticeably changed since 
the last Review in 2008, but the trade regime applied in the agricultural sector is still highly 
protected by tariff and non -tariff measures of all types. This pa rtly explains the high price 
of various goods, particularly agricultural products, and, logically, affects the export expectations 
of the developing countries, whose exports are primarily agricultural or agro -industry products; 
this also affects Swiss consumer  spending. As things stand, tariff protection varies significantly 
between sectors, with protection averaging 31.9 % for agricultural products and 2.3 % 
for non-agricultural products, and even tariff peaks of up to 1,676 % for various products 
of interest to the developing countries.  
4.197.   As regards their position in respect of the multilateral trading system, S witzerland 
and Liechtenstein are important participants in the Doha Round negotiations and in the regular 
work of this Organization. However, in keeping wit h current trends, and in the absence  
of multilateral agreements, they are increasing their network o f bilateral trade agreements 
to improve access to foreign markets. Under these agreements, either most non -agricultural 
products are granted very low to zer o tariff treatment, or agricultural products receive limited 
preferential access which is generally subject to complex tariff quotas. This demonstrates the need 
for the two countries under review to reassess their agricultural regimes and adapt them to the  
reality of the international market in order to balance their trade relationship with their trading 
partners and, particularly, with the developing countries.  
4.198.   Relevant aspects of the policies adopted by Switzerland and Liechtenstein in response to 
the glo bal economic crisis include those regarding the new systems of export insurance WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  and guarantees, the aim of which is to help improve export competitiveness and ease companies' 
liquidity problems. My country would like to learn more about these policies, as they appear to 
respond to a clear need for State intervention in assisting sectoral development and mitigating the 
effects of the lack of financing for trade. We look forward to receiving the answers to our questions 
regarding these policies.  
4.199.   As regards tr ade policies by measure, the two countries maintain a "high level of 
protection" vis -à-vis agricultural imports from third countries, and apply a combination of tariff and 
non-tariff measures that limit the access of these products. These measures include,  for example, 
tariff averages of 100 % or more and peaks of up to 1,676 %. Furthermore, there are highly 
complex tariff quotas and technical and sanitary measures which, although based on international 
standards, are also difficult to manage and observe. The se circumstances could affect the export 
to the Swiss and Liechtenstein markets of products of interest to the developing countries.  
4.200.   The bilateral trade relationship continues to be unfavourable for Ecuador. For example, 
between January  2008 and February  2013, Ecuador's exports to Switzerland reached 
almost  US$325  million and consisted mostly of precious metals and flowers  corresponding 
to 328 tariff lines; 28 of these accounted for most of the amount exported, and only four involved 
significant exports. Du ring the same period, Switzerland's exports to Ecuador totalled 
approximately  US$547  million and consisted mostly of pharmaceuticals and industrial products  
corresponding to  1,736 tariff lines; 33 of these accounted for exports of interest, 
and seven  involved significant amounts of trade. Clearly, the situation has not changed much  since 
the last  Review, and Ecuador still has a large trade balance deficit with Switzerland 
and Liechtenstein.  
4.201.   We reiterate our interest in expanding, diversifying, and further d eveloping our 
participation in the markets of both countries. To this end, we feel that favourable consideration 
might be given to trade negotiations aimed at establishing a trade agreement for development 
which recognizes the imbalances between our countr ies. 
BÉNIN  
4.202.   Small countries with large economies, may their success reach the highest of levels. 
All of us, here and elsewhere, would concur in referring to Switzerland and Liechtenstein 
in these  terms.  
4.203.   Benin greatly appreciates the major role which the Sw iss Confederation has played 
in consolidating the multilateral trading system.  
4.204.   Switzerland has adopted a clear strategy, set out in the Federal Council' s 2004 Report 
on Foreign Economic Policy, which defines the relevant national priorities. It also develop ed a new 
growth policy for 2012.  
4.205.   As regards the domestic economy, Switzerland was able to counter the 2.9 % drop in gross 
domestic product (GDP) recorded in the first half of 2009, and GDP rebounded to +3 % in 2010.  
4.206.   The global economic crisis affected this p ositive trend, causing the Swiss economy's 
growth rate to fall to 1 % in 2012 and 1.3 % in 2013.  
4.207.   The delegation of Benin thanks Switzerland for the actions and initiatives it has taken 
in favour of the developing countries. These include promoting a broad op ening  up 
of Swiss  markets to products from the least developed countries (LDCs); affording support  
for countries in the process of acceding to the WTO; and providing technical assistance to the 
developing countries in order to further their integration int o the multilateral system and to build 
up their capacities.  
4.208.   Swiss companies import from Benin agricultural products such as cotton and Sugarloaf 
pineapple, which has a much appreciated flavour which is unique in the world.  
4.209.   Benin thanks Switzerland for its assistance in promoting economic activities in rural 
environments and in combating poverty.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.210.   As an LDC, Benin also appreciates Switzerland's support for the principle whereby the 
developed countries grant LDCs duty -free, quota -free market access on a predic table 
and sustainable basis. Benin thanks Switzerland for having itself applied this principle 
to all imports from LDCs. We urge Switzerland to continue providing its active contribution 
to and support for the Doha Round trade and multilateral negotiations  so that, within the 
WTO framework, this principle is applied to all LDCs, for all tariff lines.  
4.211.   Liechtenstein and Switzerland are joined in a customs and monetary union which is highly 
integrated into the European Economic Area (EEA).  
4.212.   Following a sharp fa ll of almost 11 % in GDP growth in 2009, Liechtenstein experienced 
a rapid recovery with an increase of 8.7 % in 2010 and growth between 0.1 % and 0.5 % 
in 2012-2013.  
4.213.   From a social perspective, the Liechtenstein authorities have implemented policies 
which  have continued to generate a steady increase in job creation. In 2011, the number of jobs 
reached 35,253.  
4.214.   During the period under review, Liechtenstein adopted and implemented bold reforms, 
including measures to strengthen regional cooperation and the implemen tation of a completely 
revised new tax law.  
4.215.   In 50 years, Liechtenstein has gone from being an almost ex clusively agricultural State 
to becoming one of the most industrialized countries in the world. I ts exemplary model 
of a diversified economy and the stra tegies and approaches it has developed deserve to be 
emulated by other Members of our Organization.  
URUGUAY  
4.216.   This statement will focus on our relationship with the Swiss Confederation. Our country 
enjoys friendly and constructive relations with Switzerland.  These date back more than 100 years 
and are based on solidarity and mutual respect. In fact, because of its respect for the law, 
democratic principles, political stability, and geographic situation (it, too, is surrounded by giant 
countries), Uruguay came  to be known as the Switzerland of America.  
4.217.   The Uruguayan authorities highlight the fruitful results of a bilateral relationship marked by 
a smooth exchange of high -level visits and meetings. In the last six months alone, our  
Minister  of Foreign Affairs, D r Luis Almagro, made another visit to Switz erland during which 
a series of  agreements were signed between the two countries. Last year, Uruguay welcomed 
Chancellor  Corina Casanova, whose various activities included participation in the celebrations 
commemo rating the 150th anniversary of "Nueva Helvecia ". This Sw iss colony was founded 
by Swiss  immigrants who settled in western Uruguay to begin a new life, 
changing  agricultural -livestock production for the better and applying the new and contemporary 
concept of openness in agriculture.  
4.218.   Other noteworthy aspects include the concrete advances made in the bilateral agenda, 
increased trade flows, Swiss investment in our country, and the very good level of dialogue 
and coordination between the two countries on both a regional and an international scale. 
Uruguay  places great importance on the possibility of an agreement being reached between 
MERCOSUR and EFTA.  
4.219.   As the second European destination for Uruguayan products after Germany, Switzerland 
is an increasingly impor tant market for Uruguayan trade. According to the latest data, trade 
between the two countries increased sevenfold during the last period under review. The main 
products sold to Switzerland are gold, bovine meat, and soy. Uruguay imports from Switzerland 
pharmaceuticals, chemical technology, and machinery.  
4.220.   In future, we expect to introduce other foods with greater value added to the Swiss 
market.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  4.221.   We are paying close attention to today's statements emphasizing the need for continued 
reforms in certain sector s of the economy.  
4.222.   The main political and economic agreements recently signed between the two countries 
concern avoidance of double taxation and prevention of tax evasion, protection of investments, 
and protection of workers' social security.  
4.223.   Before closing , Uruguay wishes to highlight Switzerland's role  in the multilateral system 
and its commitment to ensuring the successful completion of the Doha Development Round, 
as well as to strengthening a multilateral trading system based on predictable, transparent,  and 
balanced rules.  
NIGERIA  
4.224.   From the outset, my delegation is pleased with Switzerland's commitment to the 
multilateral trading system and the WTO. As the host of the WTO, Switzerland has contributed to 
the expansion of the premises of the WTO, in particu lar, the provision of modern meeting rooms 
and parking facilities for delegations.  
4.225.   Nigeria is pleased to note that the trade regimes of Switzerland and Liechtenstein remain 
generally liberal. Their economies have recovered well from the global economic cri sis. Thanks to 
the "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%. 
4.226.   The Secretariat Report  also indicates that trade is an important driving force of the 
economies of Switzerland and Liechtenstein, with the GDP share of trade in goods and services 
exceeding 100%. Given th eir degree of dependence on trade, both countries remain exposed to 
developments 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 threaten ing 
to undermine competitiveness. In September 2011, the Swiss National Bank decided to contain the 
appreciation of the Swiss franc by setting a minim um exchange rate of SwF 1.20 per euro and 
committing to unlimited purchases of foreign currencies, if need ed. Liechtenstein uses the Swiss 
franc as its national currency.  
4.227.   Though, the report suggests that Switzerland's agricultural policy has been heading 
generally in the right direction, however, the process of the reforms has remained slow despite its 
margina l economic importance in terms of its contribution to the GDP and employment. Nigeria, 
therefore, calls on Switzerland to hasten the process of the reforms, in order to enhance the 
efficient allocation of resources and consumer welfare.  
4.228.   At the bilateral le vel, Nigeria has long -standing relationship with Switzerland dating back 
to 1960 when full diplomatic relations were established. The bilateral relation s have been 
characterised by co operation and trust between the leaders of the two countries; and set to 
continue to grow through the desire of our two countries to forge ahead in addressing the 
important issues that would make the world a better place to live. The bilateral relations generally 
cover air services and investment promotion and protection. The c lose relationship between the 
two countries is also reflected in the high -level official visits in t he past few years. There are 
on-going efforts for Nigeria to sign a J oint Declaration on Economic Co operation with the EFTA 
States, which promote and enhanc e the existing bilateral trade and investment relations between 
the two countries.  
4.229.   As important Members of the WTO, Switzerland and Liechtenstein have remained staunch 
supporters of the multilateral trading system. It is our hope that the two countries wou ld continue 
to promote trade liberalization and structural reform; and to contribute to the further progress of 
the DDA negotiations. We look forward to continue working with Switzerland and Liechtenstein to 
conclude the Doha Development Agenda negotiation s. WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  HONDURAS  
4.230.   We are pleased to note the swift recovery of both economies from the global economic 
crisis, thanks to the implementation of the "debt break" rule and the substantial fiscal surpluses 
accumulated at the federal level prior to the crisis. The S wiss Government has implemented 
economic stabilization measures mostly consisting of infrastructure spending and labour market 
measures. Unemployment has thus been kept in check at about 3% -4%. Liechtenstein, 
for its part, has shown excellent economic perf ormance, attracting increasing numbers of foreign 
workers, who currently make up two thirds of the Liechtenstein workforce.  
4.231.   The World Bank classifies both economies among the first in the world according 
to their gross national income at purchasing power p arity. Trade remains  an important driving 
force for  both economies, with the GDP share of trade in goods and services exceeding 100 %. 
The Swiss Government accordingly attaches great importance to the opening up of global markets 
to trade in goods and servi ces, including government procurement, and to strong protection 
of intellectual property.  
4.232.   According to the Government Report, Switzerland con siders the strengthening 
of the multilateral trading system a priority, as small countries are better able to defen d their 
interests in a multilateral forum rather than in a situation marked by an unequal balance of market 
power. Within the WTO framework, particularly that of the Doha Development Agenda 
negotiations, we recognize Switzerland's active efforts to achieve  an ambitious outcome 
and a broad -based round of negotiations.  
4.233.   Since early last year, Honduras, Guatemala, Costa Rica and Panama have been negotiating 
a trade agreement with the European Free Trade Association (EFTA), which is composed of 
Norway, Switzerla nd, Iceland and Liechtenstein. For Honduras and the other countries of 
Central  America, such an agreement would mean an expansion of the range of agricultural 
products exported to countries such as Norway, and would also be the ideal complement to the 
Association Agreement between Central America and the European Union. We hope to conclude 
the trade agreement in question this year.  
4.234.   I will mention the long -standing bilateral relations between Honduras and Switzerland. 
Indeed, since the 1970s the two countrie s have concluded a series of  investment, promotion, and 
technical cooperation agreements. In recent years, Switzerland has implemented debt reduction 
programmes in Honduras. It has also steadfastly contributed with development assistance 
programmes, provid ing support in fields such as environmental protection, hydroelectric power, 
and drinking water services.  
4.235.   We would also like to take this opportunity to acknowledge and express our thanks for the 
work done by the Swiss Agency for Development and Coop eratio n (SDC), which focuses 
on support for small businesses, management of public finances, and provision of local 
infrastructure services. As part of its renewed commitment to the Central American region, 
in March the SDC introduced the Swiss Cooperation Strat egy for Central America 2013 -2017, 
which earmarks US$210  million over the next five years for economic development, 
inclusive  governance, and reduction of environmental vulnerability.  
NEPAL  
4.236.   Nepal and Switzerland have enjoyed friendly relations since long a nd Switzerland is an 
important development partner of Nepal.  
4.237.   It is a great pleasure to us to acknowledge that both economies became successful to save 
them limiting on m odest and short -term impact of world financial c risis a nd euro zone crise s, 
because of their proper trade and economic policies. Customs and Monetary Union between the 
two economies and their full participation in the European internal market based on the principle of 
free movement of goods, services, capital and persons, with uniform and co mmon rules govern ing 
competition is remarkable.  
4.238.   Both economies firm commitment to the rule -based, transparent and open multilateral 
trading system of the WTO and their fundamental belief on well -functioning of this system to WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  economic growth and developmen t is appreciable. My delegation is thankful to their foreign 
economic policy objective of “integrating the developing countries and countries with economies in 
transition into the global economy”. We hope all LDCs will be more benefited from this initiatio n by 
getting sufficient aid for trade to remove their supply -side constraints and getting full market 
acces s for their goods and services.  
4.239.   My G overnment would like to express sincere appreciation to Switzerland for its full 
commitment on “Aid for Trade” wi ts and duty -free quota -free market access launched in Hong 
Kong and requests to increase the volume of AfT a nd simplify its rule of o rigin. Our G overnment is 
fully thankful to the G overnment of Switzerland for its contribution on DDA negotiations and also is 
expecting that the G overnment of Switzerland will play a significant role to forward the LDCs 
package in Bali Ministerial as well.   
SAUDI  ARABIA  
4.240.   The economies of Switzerland and Liechtenstein have performed admirably during the 
review period, marked as  it has been by extraordinary regional and global economic turmoil. In no 
small part their performance can be attributed to these countries' deep -rooted commitment to 
open markets for goods and services. Switzerland's reasonablen ess and sensitivity to the 
give-and-take underpinning international trade is further evidenced by its 2001 foreign economic 
policy, which is still in effect. That policy balances the pursuit of market -access for Swiss exports, 
on the one hand, with a commitment to making Swiss domes tic markets more competitive, on the 
other.  
4.241.   Saudi -Swiss economic and trade relations continue to develop. Over the review period, 
bilateral trade improved. Swiss exports to Saudi Arabia have remained stable and significant. 
Switzerland is one of the leadin g exporters to Saudi Arabia and key exports to the Kingdom include 
pharmaceuticals, machinery and watches. Exports from Saudi Arabia to Switzerland, which were 
decreasing until 2010, started picking up again in 2011. The ratification of the EFTA -GCC free 
trade agreement by the Kingdom of Saudi Arabia's Council of Ministers in 2011 reflects a firm 
commitmen t to deepening our ties, as do  the existing bilateral agreements on the promotion and 
protection of investments between our countries.  
4.242.   Economic and trade relations between our countries will also benefit from the initiatives of 
private business organizations such as the Saudi -Swiss Business Council, the Swill Business 
Association Saudi Arabia and the Arab Swiss Chamber of Commerce and Industry. During a vis it to 
Switzerland at the end of last year, Saud i businessmen sought greater co operation between the 
industries of our countries in multiple sectors, including tourism, education, construction and 
pharmaceuticals and invited Swiss companies to invest in Sau di Arabia.  
4.243.   Home of the WTO Secretariat, Switzerland is a key Member of this organization and an 
active contributor to its activities. As part of the Friends of the System, Switzerland seeks 
constructive solutions to support the reinforcement of a truly mul tilateral trading system.  
4.244.   In addition to considering long -term improvements to the system, Switzerland and 
Liechtenstein support the conclusion of the multilateral trade negotiations. We note Switzerland's 
leading role in the trade -facilitation negotiation s ahead of the Ninth Ministerial Conference and 
support a comprehensive package including these and issues that are of paramount importance to 
developing and least developed Members. We also continue to actively support the conclusion of a 
single undertaki ng agreement that will benefit all Members.  
OMAN  
4.245.   The Sultanate of Oman enjoys excellent relations with Switzerland and Liechtenstein who 
are important trading partners of Oman.  
4.246.   Switzerland is a highly developed and diverse economy. It has an open and liber al 
economy which successfully weathered the financial crises of 2008 -2009. An index of the success 
of the Swiss economy is its unemployment rate which compares very favourably with other 
developed countries. According to the Secretariat Report , the unemplo yment rate is about 3 -4% WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  while many other developed economies have rates of 7% to 10% . It is a tribute to the managers 
and operators of Swiss economy.  
4.247.   Switzerland's foreign trade regime appears to be a mixed bag. It is a very liberal regime 
for non -agricul tural goods for which the tariffs are very low, 2.3% on average, with no import 
restrictions, no quotas. Also  Switzerland does not provide any export subsidies or any actionable 
subsidies which is praiseworthy. However, as for agriculture products, Swiss t rade regime is quite 
restrictive, highly protected by tariffs and non -tariffs measures.  
4.248.   We note with appreciation that Switzerland and Liech tenstein has never applied 
anti-dumping or countervailing duties. In fact, Switzerland has no specific anti -dumping,  
countervailing or safeguards legislation.  
4.249.   Another feather in the cap of Switzerland is it program of export promotion for developing 
countries which is highly commendable.  
4.250.   The delegation of Oman is pleased to note that Switzerland and Liechtenstein are st aunch 
supports of the WTO and the multilateral trading system. Both have also been active participants 
in DDA negotiations. However, we noted with concern that Switzerland is favouring an 
"international agreement on services open to all WTO Members ready t o participate". Does it mean 
a selective agreement or a plurilateral type of agreement which fragments the WTO? We would like 
to hear some clarity from Switzerland on this issue.  
GUATEMALA  
4.251.   Switzerland and Liechtenstein are among the world's wealthiest coun tries. Like the other 
Members of this Organization, the two countries had to deal with the global financial crisis , 
which  they succeeded in overcoming thanks to effective macroeconomic measures taken to reduce 
the impact on their economies.  
4.252.   We commend the action taken to avoid the financial crisis, in cluding the implementation 
of standards such as Basel III, which we are sure will boost confidence in the banking and financial 
system. We would also like to point out that Switzerland and Liechtenstein overcam e 
one of the greatest challenges to their economy, which was the s trong appreciation 
of the Swiss  franc. Those of us who live here witnessed both the difficulties this caused and the 
significant efforts made by the competent authorities to solve the proble m. 
4.253.   Switzerland and Liechtenstein have staunchly defended the multilateral trading system. 
With the same resolve, they have continued to liberalize their trade through free trade agreements 
with other countries. Such is the case of the treaty being negotiat ed between the EFTA countries 
and some Central American countries. We hope that it will soon be concluded and that this will 
bring our economies even closer together.  
4.254.   As regards agricultural trade, although we understand the sen sitivity of this topic 
for both countries, we urge them to continue the process of liberalizing agricultural products 
by reducing the level of protection and further opening up the market.  
4.255.   We know that Switzerland and Liechtenstein pay special attention to promoting trade 
in developi ng and least developed countries. We therefore urge them to provide further details 
on the system of preferences in force, and on the granting of preferences and the eligibility 
requirements in particular.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF SWITZERLAND AND LIECHTENSTEIN  AND 
ADDITIONAL COMMENTS  
SWITZERLAND  
5.1.  I was very pleased to note the generally positive comments made by many Members 
regarding the development of Switzerland's trade policy and our commitment to the multilateral 
trading system. We received nea rly 400 written and oral questions, which clearly demonstrates 
Members' interest in our trade policy. I thank the Members heartily for their interest. For our part, 
since Monday we have provided answers to all the questions submitted to us by 19  April 2013. 
This morning, Members will receive a revised document containing the written responses to these 
questions, including the responses to the questions we have received since then. I shall take the 
opportunity of today's meeting to address some of the salien t points brought up by Members 
and the discussant, Ms  Mariam Md Salleh.  
5.2.  I will divide my oral response into three parts which reflect th e principal subjects covered 
in the Secretariat Report. First, I will deal with the questions regarding the economic env ironment 
and the institutional framework for our trade policy. Second, I will address the questions 
concerning trade policies and their instruments. Lastly, I will go into the main sectoral questions.  
5.3.  Afterward, my colleague,  Ambassador Norbert Frick, will  respond to the questions specifically 
addressed to Liechtenstein.  
Economic environment and institutional framework for trade policy  
5.4.  On the subject of the economic environment, several Members asked us about the reasons 
for the long -term downward trend in productivity growth. I would first like to specify that the drop 
in productivity which took place between 2008 and 2011 was largely temporary. N evertheless, it is 
true that for the moment we do not expect any long -term productivity growth in the banking 
sector as a result of the debt crisis and new regulations in this area. F or Switzerland, this is 
a considerable change which will affect  the overall performance of  the economy. This also explains 
why the Federal Council's growth policy for 2012 -2015 emphasiz es the need to improve 
productivity in domestic sectors such as agri culture, health, energy, and  transport. Trade openness 
in the distribution sector and streamlining of federal administration through e -Government should 
also stimulate productivity.  
5.5.  Some M embers also asked us to clarify the nature of the measures taken by the 
Confederation in the autumn of 2011 as part of its SwF 870  million impetus programme. 
These measures, which corresponded to approximately 0.2 % of GDP , mostly sought 
to mitigate  the con sequences of the strong franc and to improve the framework condition s 
of the Swiss  economy in the long term. The measures were directed at un employment insurance, 
knowledge  and technology transfer, tourism, promotion of exports, and infrastructure. 
Althoug h relatively modest in financial terms, the measures nevertheless created confidence 
among export -oriented companies.  
5.6.  As regards the institutional framework for our trade policy, I first of all note that several 
Members raised the question of our participa tion in various free trade agreements. 
We have responded in writing to the specific questions which these Members asked concerning, 
notably, the agreements recently concluded and those being negotiated. I would, however, 
like to stress that while the signi ng of regional trade agree ments is a complementary way 
of opening up to the global market, our priority continues  to be the strengthening 
of the multilateral trading system. For the Swiss Government, integration into the world economy 
requires membership i n the WTO. All countries applying for membership have perfectly understood 
this. However, this is not sufficient, and we feel that  free trade agreements can be 
a complementary means of expediting the liberalization of trade on an international scale, 
particularly in areas which are not yet, or are only partly, the subject of WTO negotiations. 
Thus, in our most recent agreements, in addition to provisions regarding the liberalization of trade 
in goods and services, we have also included clauses concerning go vernment procurement, 
competition, investment, intellectual property, and trade facilitation, as well as, in certain cases, 
specific provisions on trade and sustainable development. It is true that these agreements lead WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  to a trade environment which is more  complex for those using these preferences. 
The Swiss  Government would prefer it if such solutions were also found in the multilateral context.  
5.7.  As regards investment, several Members asked us whether Switzerland intends to further 
liberalize access to sect ors under monopoly or controlled by government -owned corporations. 
In general, Switzerland is very open to foreign investment, and restrictions continue to apply only 
to certain sectors. This is the case for certain passenger -transport companies, while fre ight 
transportation, on the other hand, is liberalized. The postal monopoly still applies to letters 
weighing less than 50 grammes. Mandatory fire and natural -disaster insurance is under monopoly 
in certain cantons; the same applies to trade in salt, which  is also under the jurisdiction of the 
cantons. These State monopolies are clearly defined by the law. Most are limited restrictions which 
do not cover a sector in its entirety, as some questions appear to assume. T here were 
no legislative changes in these  areas during the period under revi ew, and there are currently, 
in principle, no plans to further liberalize the sectors which remain under State control.  
5.8.  Some Members also raised the question of tax relief offered by the cantons. I  would first  like 
to cla rify that cantonal policies are based on the constitutional powers of the cantons. They aim to 
foster overall economic development. Tax relief at the sub -federal level is often tied to  that of the 
federal government within the framework of its regional pol icy in support of rural and structurally 
weak areas. All these measures have been made public. These tax relief programmes do not aim 
to specifically favour foreign companies  and are applicable and open to  both domestic and foreign 
companies if they meet t he object ive criteria established by  the canton or commune concerned.  
Trade policy instruments  
5.9.  I will now respond to some more general questions regarding trade policy instruments.  
5.10.  Some Members raised the question of Switzerland's maintenance of specific d uties for all its 
tariff lines. The Swiss system has been used consistently for decades. Economic operators are 
therefore perfectly familiar with it. The system is simple and predictable. I ts everyday application 
thus poses no problems. I do not think, th erefore, that it can be said to  lack transparency. I would 
also like to remind Members that Article II of the GATT does not prescribe the type of customs 
duties which a Member must apply. The only obligation is that the duties applied must not be 
higher tha n the bound duties contained in the WTO schedule  of commitments, a provision with 
which Switzerland fully complies.  
5.11.  Some Members asked us whether Switzerland had the intention of completely eliminating 
tariffs on some 39 % of tariff lines subject to low tar iffs between 0 % and 2 %. Switzerland believes 
that imports are facilitated both by speedy and efficient customs procedures and by low tariff 
rates. Clearly, it is high tariffs which pose a problem for exporters. In fact, even without tariffs, 
goods are gene rally subject to the value -added tax levied by Customs, so the existence or absence 
of low tariffs has no bearing on the cost or speed of customs clearance procedures. The outcome 
of the WTO negotiations will determine the progress which can be made in the  reduction 
or complete elimination of these low tariffs.  
5.12.  Members also asked us about the 0 % to 71 % variation in MFN import tariffs on textiles and 
clothing, the average being 6 %. In fact, high tariffs in textiles and clothing are likely to  be applied 
to used textiles or second -hand clothes with zero or little economic value, as well as to inexpensive 
textile products used for covering seeds or plants. According to the Swiss tariff, used  or 
second -hand clothing is generally subject to the same tariff as new products. Given that 
Switzerland has only specific tariffs, the ad valorem  equivalents can vary a great deal depending 
on the market value of these products, which is often low or even non -existent.  
5.13.  Many Members mentioned Switzerland's introduction of the Cassis de Dijon  principle 
in 2009, and some asked us to indicate the exceptions. The exceptions to the Cassis de Dijon  
principle fall into two main categories: products subject to authorization, whether for marketing or 
for import, and exceptions granted b y the Federal Council. In Switz erland, the products subject 
to authorization are those which pose a high risk to animal and human life or health or to the 
environment. Products subject to authorization are, for example, pharmaceuticals or certain 
chemical products, certain measuring instruments and motor vehicles, and animal feed. 
The Cassis  de Dijon  principle applies exclusively to products from the European Union and WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  European Economic Area. However, the introduction of the Cassis de Dijon  principle also b enefits 
non-European producers so long as they meet the technical requirements of the European Union.  
Sectoral policies  
Agriculture  
5.14.  We received numerous questions regarding agriculture. I  will only respond here to  questions 
involving policy issues. Switzer land has provide d detailed written responses to  the more technical 
questions.  
5.15.  Despite the significant reforms which we have undertaken, some Members consider that 
Switzerland's agricultural reform efforts are still very modest or even insufficient. I  would  like 
to respond to this criticism by saying that, since the beginning of the Doha Round in 2001, 
Switzerland has undertaken three reforms of its agricultural policy. These reforms have made 
Swiss agriculture more environmentally friendly and more competit ive in response to the demands 
of citizens in the agrifood industry. Admittedly, some revenue and some jobs were lost, 
but the stakeholders in Swiss agriculture have begun and are continuing the move toward modern, 
diversified and sustainable agriculture w hich meets the demands of both consumers 
and the agrifood industry.  
5.16.  Several participants also asked us why Switzerland, which wants to stimulate competition 
on the domestic market, including in agriculture, continues to maintain a high level of agricultura l 
protection. The answer is relatively simple: to be able to pursue domestic reforms, it is also 
necessary to be able to show that things are moving ahead at the international level. 
In the absence  of progress in the multilateral negotiations, it has not b een possible to bring about 
drastic reforms, particularly in terms of the level of border protection, without reciprocity from the 
other WTO Members. The reforms undertaken have therefore logically focused on domestic policy 
areas enabling Swiss agricultur e to prepare for a future Doha agreement. Today, support is largely 
decoupled from production and better targeted at public goo ds produced by farmers, 
and all export subsidies for agricultural commodities have been abolished.  
5.17.  Members also raised questions as to the way in which Switzerland had sought to deal with 
the drop in the price of milk which followed the abolition of the milk quota in 2009. I  would like 
to say first of all that this was a measure taken by a private association, IP -Lait. The federal 
authorities neither collect nor prescribe the application of the levy of one centime per kilogramme 
of marketed milk intended for the funding of market relief measures. E xtending this levy 
to non-members of IP -Lait is only meant to prevent free -riders from undermining this private 
initiative. Since IP -Lait has not asked that the measure's application to non -members 
be prolonged, the Federal Council has not taken a new decision on the matter. C onsequently, 
the measure applicable to non -members of IP -Lait rema ined in effect only until 30  April 2013.  
5.18.  We have heard several comments on the level of tariffs for the agricul tural products 
of Switzerland and Liechtenstein. It should be recalled that examples of high tariffs do not provide 
an economically accurate refl ection of the situation, since trade is carried out under tariff quotas. 
Thus, tariff averages do not provide information on market openness. I n fact, Switzerland 
and Liechtenstein are, per capita, among the world's biggest net importers of agricultural pr oducts. 
The quota system makes it possible to import products at fairly low rates. The quotas are properly 
filled, and even overfilled.  
5.19.  Several participants also asked us about the price compensation scheme for processed 
agricultural products. This scheme ensures compensation for the additional cost incurred 
by the domestic agrifood industry as a result of the use of locally produced agricultural raw 
materials. In this regard, Switzerland still intends to honour t he commitment made 
at the Sixth WTO Minister ial Conference, held in Hong Kong in 2005, as part of the Doha Round 
single undertaking. We are unable to specify when the remaining export subsidies can be 
eliminated, however, since confirmation of the date of elimination of all forms of export subsidies , 
in accordance with paragraph 6 of the Hong Kong Ministerial Declaration, is still pending.  
5.20.  In the area of sanitary and phytosanitary measures, Switzer land has largely harmonized 
its standards with European standards. I would like to point out that this adjustment has served WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  to simplify the rules for exporters as, in most cases, meeting the criteria for exp orting 
to the European Union means that operators can automatically export to Switzerland without any 
further complication.  
5.21.  Some participants asked us a bout the cultivation of genetically modified plants (GMPs), 
which is subject to a moratorium until 2017. I would first of all remind Members t hat 
this moratorium was adopted by 55.7 % of the Swiss population in a popular vote in 2005. 
Parliament took the de cision to renew it until the end of 2017. The Swiss authorities need the time 
afforded by the moratorium to propose a review of the existing la w on genetic technology, 
and to establish a "coexistence ordinance" taking into account the results of Swiss Nati onal 
Research Programme No.  59. The Swiss Government has begun consultation on the legislative 
framework proposed in January  2013. This moratorium applies only to the cultivation of genetically 
modified organisms and the import of genetically modified live stock, and not to the import of food 
products, the import of livestock feed, or research.  
Services  
5.22.  Aside from the questions concerning the agricultural sec tor, we received relatively 
few additional questions regarding services.  
5.23.  One Member asked about the p articipation of WTO Memb ers in an agreement on trade 
in services. I would answer that Switzerland considers the plurilateral approach as a launching pad 
for the multilateral process. Accordingly, Switzerland fully supports the initiation of plurilateral 
negotiations on services, in the hopes that the outcome of the negotiations will subsequently  
be placed on a multilateral footing within the WTO so as to create a system of trade in services 
which is multilateral, open, transparent, simple, and secure.  
5.24.  I wou ld not want to conclude this meeting (my statement) without thanking all the 
participants for the interest they have shown. I also sincerely hope that our replies were 
satisfactory and made a positive contribution to this meeting.  
5.25.  Ambassador Frick will now  respond to the questions addressed directly to Liechtenstein.  
LIECHTENSTEIN  
5.26.  Let me start by thanking all delegations, our discussant and you, Mr. Chairman, for the 
interest shown in the Trade Policy Rev iew of Switzerland and Liechten stein and for all ques tions 
and comments received.  
5.27.  Quite logically, most of the questions received - either are addressed directly to Switzerland 
or concern matters falling under the Swiss -Liechtenstein Customs Union - for which Switzerland is 
competent. I thank my colleague Am bassador Chambovey and his team for the exhaustive 
answers and explanations given to the large number of issues raised.  
5.28.  Therefore, I will limit my comments to issues spe cifically addressed to Liechten stein.  
5.29.  At the outset, I would like to emphasize that ou r answers to a number of issues have to be 
seen in light of Liechtenstein’s very specific geographical situation to which I already referred on 
Tuesday. For instance, a question raised refers to a possible further liberalization of our 
investment regime. A lthough Liechtenstein has a generally open, stable and predictable 
investment regime and most sec -tors are open to national and foreign investment, Liechtenstein 
has – against the background of its geographical situation  – to manage a difficult compro mise 
between our interests for new investments on the one hand and what is politically acceptable on 
the other. Key facts in this context are: the very small size of the country of which only about 7% 
are settlement area; the high num ber of jobs which practical ly equal the number o f inhabitants; 
the dried out la bour market a nd the fact that already now 70 % of the jobs are held by  non-
nationals and more than 50 % by cross -borde r workers. Because of these par ticular circumstances, 
Liechtenstein is also the only mem ber State of the EEA which has been granted a special 
arrangement with regard to the principle of free movement of persons within the Interna l Market 
through the general ap plication of a quota system.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  5.30.  Another specific feature of Liechtenstein which concer ns a number of questions received and 
which I already mentioned in my introductory statement the other day is that Liechtenstein is part 
of two internal markets, the Swiss and the European. For instance, for a question received 
regarding labour law applied  in Liechtenstein our answer is, I quote “As a member State of the 
European Economic Area, Liechtenstein transposes all EU law relevant for the European Internal 
Market into its domestic legislation, including EU labour law. The proper implementation of th ese 
EU directives and regulations is monitored by the EFTA Surveillance Authority and can be 
challenged with a complaint to the EFTA Court of Justice”.  
5.31.  Other advance written questions received where EU law is relevant concerned issues such 
as Liechtenstein ’s public procurem ent system or its insurance mar ket. All of these areas are 
regulated by EEA legislation – that is to say by EU Directives, transposed into domestic legislation, 
and directly applicable EU regu lations. The same is true for Liechtenstein’s telecommunication and 
electricity markets. Telecom Liechtenstein AG and Liechten steinische Kraftwerke, the state -owned 
producer and distributor of electricity, are obliged to make their infrastructure and services 
available to other enterprises in a neutra l, non -discriminatory and cost -based manner. 
Interconnection regulations are based on the relevant EU principles. Neither Teleco m Liechtenstein 
AG nor Liechten steinische Kraftwerke enjoy any exclusive rights.  
5.32.  As regards telecommunication, these framework conditions will continue to apply regardless 
of the outcome of the current discussions on a possible acqui sition of Telecom Liechtenstein AG by 
Swisscom AG. These discussions are held against the background of an increasingly diffic ult 
situation for Teleco m Liech tenstein AG because of the limited size of the domestic market.  
5.33.  Another question referred to the control and managemen t of state -owned en terprises. The 
control of Telecom Liechtenstein AG as well as of other state owned enterprises is governed by th e 
law on the governance and surveillance of public enterprises of 10 November 2009. Under the 
terms of this law, the Government adopts strategic aims and targets for each enterprise. The 
strate gies adopted are reviewed by Parliament which can request the G overnment to change or 
adopt a strategy. The strategies adopted are public. The enterprise has to report regularly to the 
Government with regard to the implementation of the adopt ed strategic aims and targets.  
5.34.  Another very topical question raised the issu e of Liechtenstein’s public budget. I just repeat 
in short what I stated in this regar d on Tuesday. Up to 2009, Liech tenstein has always had 
surpluses. Since 2010, due to a number of factors, we have each year run a budget deficit. 
Liechtenstein has no pub lic debt and still State reserves of considerably more than one annual 
budget. The overarching policy is the continuation of zero external debt. Fiscal consolidation has 
there -fore become the highest priority of the Liechtenstein government.  
5.35.  In spite of th ese particularities, Liechtenstein shares a high number of policy communalities 
with Switzerland, including for the sector which attracted most comments, namely agriculture. 
Liechtenstein fully shares the Swiss policy of the multifunctional role of agricul ture which goes 
beyond the mere calculation of the latter’s contribution to GDP. About two thirds of the territory of 
Liechten stein is hilly and mountainous  areas. The general maintenance of its rural character is one 
the overarching goals of Liechtenstein ’s internal development policy. Agricultural use of the 
mountainous  areas ensures their sustainable development which in turn is also an important factor 
for Liechtenstein’s posi tioning as an attractive tourism destination. Such use and maintenance of 
these mountainous areas is, however, costly. Green  box measures are therefore nec essary and 
enjoy widespread public support in Liechtenstein despite their high price.  
5.36.  This brings me to the end of my statement. Le t me express again our apprecia tion for the 
comments and questions of delegations which provided us with very valuable food for thought.  
DISCUSSANT  
5.37.  Members in their statements had commended Switzerland and Liechtenstein for their 
generally open dynamic economy and liberal trade and investment regime an d the domestic 
reforms undertaken. The fact that both have recovered from the global economic crisis during the 
period under review.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  5.38.  However, many also pointed out that although reforms are in the right direction, the pace 
has been slow in major areas par ticularly agriculture that remains protected. Certain services sub 
sectors continue to be a monopoly.   
5.39.  We take note of Switzerland’s statement that strengthening the multilateral trading system 
remains the priority where smaller countries are in a better position to defend their interests 
rather than in a situation of disproportionate power relationships. We therefore call on Switzerland 
and Liechtenstein to assume a leading role in forging flexibilities among Members for us to have a 
successful MC9 in Bal i. Its success is particularly important for developing Members and critical for 
the WTO as a shared institution.  
5.40.  We wish both Switzerland and Liechtenstein every success and we thank for the responses 
provided to Members.  
EUROPEAN  UNION  
5.41.  The EU would like  to express his appreciation for the efforts made by the delegations of 
Switzerland and Liechtenstein in presenting their replies to Members' advance questions. We have 
carefully studied the replies which provided us with valuable information necessary to understand 
the situation in these two countries on issues we raised on our first submission.  
5.42.  In general, we are satisfied with the clarification received and for the time -being we would 
appreciate to receive additional clarification on rules of origin. We are looking forward to the 
session to complete our better understanding of Liechtenstein and Swi tzerland trade policy and we 
will continue our discussion on the issues we raised today and on other issues of interest to the EU 
and also bilateral ly. 
SWITZERL AND 
5.43.  We had a number of comments this morning and a few received from the EU. It's a highly 
technical question and the EU will receive an answer in writing. I would also like to thank Mariam 
Salleh for her comments.  
5.44.  It came as no surprise to us that agricu lture was very prominently discussed and most of 
the questions received concerned the agricultural policy. But there is something I would like to 
insist on and it is something that I mentioned in my speech: Members may feel that the level of 
protection of Swiss and Liechtenstein agriculture (we are forming a customs union) is still high, in 
particular as far as tariffs are concerned. This is true but here  are a couple of remarks:  
5.45.  Those countries are certainly among the largest importers of agricultural pro ducts and all 
the quotas are very well filled and sometimes they are overfilled . There has been a comment 
pointing to a contradiction between the stated objectives  of our economic policy to inject more 
competition domestically in order to lower the general ly high level of prices including in the area of 
agriculture , and the high level of protec tion of the latter at the boarder . But to implement reform 
we need an international framework and this is precisely what is currently lacking due to the 
stalemate of the Doha Round. It's quite difficult to sell this kind of reform domestically if there is 
no reciprocity, if there is no way to show that the effort that will be undertaken domestically is 
matched with similar efforts by partners , thus  creating opportuniti es for the most competitive 
sectors domestically. This is the situation we are facing also in Switzerland.  
5.46.  We hope that in a not too distant future we will manage to make ways here at the WTO 
across all Doha issues. But for the time -being the prospects are  not clear. This, of course, has an 
impact on the domestic reform that we are able to undertake and probably also has an impact on 
domestic reforms that other Members of this Organization are able to undertake, not only in the 
area of agriculture but also in other areas under nego tiation at the WTO.  WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This fourth joint Trade Policy Review of Switzerland and Liechtenstein, the sixth for 
Switzerland, has provided us an excellent opportunity to appraise the developments in their trade 
regimes since their last TPR in December 2008. Our discussion has benefited from the active 
participation of the Swiss delegation, led by H.E. Mr. Didier Chambovey, and the Liechtenstein 
delegation, led by H.E. Mr. Norbert Frick, as well as fro m the insightful contribution of the 
discussant, H.E. Ms Mar iam Md  Salleh, and the numerous interventions by Members.  
6.2.  Members commended Switzerland and Liechtenstein on their economic performance in the 
aftermath of the global economic crisis and on their continued top ranking amongst the most 
competitive and innovative economies in the world, even if they remain "high -price islands" in 
Europe. Members praised their generally open trade regimes, and their strong support for an open 
multilateral trading syst em and for the successful conclusion of the Doha Development Round.  
Nonetheless, their agricultural sector remains heavily protected, and the large number of FTAs 
makes their trade regimes increasingly complex.  
6.3.  Much of the focus of the comments and questi ons from Members was on agriculture.  
Clarification was sought, amongst other matters, on tariff peaks and complex variable tariffs, the 
justification of classifying certain measures in the Green Box, the difference between the system of 
"observed prices" and "administered prices" in price support measures, ending the compulsory 
levy on milk, and plans for phasing -out export subsidies entirely. Members also observed that the 
Agricultural Policy 2014 -17 appears to be less ambitious than the Agricultural Poli cy 2011 in terms 
of a further liberalization of the sector.  
6.4.  The numerous statements and questions raised in the course of this TPR lead to the 
conclusion that there is room for further improvement in certain areas. The Swiss and 
Liechtenstein authorities might in particular give consideration to the following issues:  
 Tariffs. Switzerland and Liechtenstein are the only WTO Members that use exclusively 
specific tariffs. Members stressed that the use of specific tariffs makes the level of protection 
more unp redictable, in particular because of exchange rate and import price fluctuations. 
Thus, while the applied MFN tariff has remained broadly unchanged since the last TPR, the 
simple average rate has increased on an ad valorem  basis from 8.1% in 2008 to 9.2% i n 
2012. Members invited both countries to consider moving from specific to ad valorem  tariffs.  
 
 Tariff quotas. Members were concerned about the complexity of the Swiss tariff quota 
regime, including its administration, and encouraged Switzerland to simplif y the regime and 
abolish the prise en charge  system.  
 
 Agriculture.  Members expressed concern about the still high level of support and protection 
for agriculture. They encouraged the authorities to reduce the high or prohibitive tariffs, and 
to increase t he pace of market -oriented agricultural reforms, consistent with Switzerland's 
wider policy objectives of improving competitiveness of domestic goods and services.  
 
 Technical barriers to trade. Members welcomed Switzerland's unilateral initiative to 
reduc e technical barriers to trade through the introduction of the Cassis -de-Dijon principle. 
At the same time, they encouraged the authorities to consider enlarging the product scope 
and remove exceptions, so that the Cassis -de-Dijon principle works more effec tively in 
facilitating the free flow of goods.  
 
 Intellectual property rights . Members welcomed the introduction of the EEA -wide 
exhaustion principle for patented products but invited the authorities to broaden the scope 
of application in order to stimulat e competition on the domestic markets. Switzerland was 
also encouraged to take further steps to address copyright piracy over the internet.  
 
 Services . Members recognized that Switzerland's and Liechtenstein's services trade regimes 
are generally liberal, but identified restrictions in certain areas such as insurance, postal 
services and rail transport, where further liberalization would be of interest to them.  
 
6.5.   To conclude, I would like to commend the Switzerland and Liechtenstein governments on 
their ex emplary commitment and high aspirations in this exercise. We hope that they will take WT/TPR/M/280 • Switzerland and Liechtenstein  
 
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  away the comments and suggestions made in the course of this trade policy review as valuable 
inputs for further reflection on how to shape their future trade policy, for the benefit of their 
populations. I would also like to thank the discussant, for her insightful observations and 
questions, and Members for contributing to what has been a very fruitful and en riching two days of 
discussion.  We look forward to receiving Swi tzerland's and Liechtenstein's responses to the few 
remaining questions within the next month.  
 
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