RESTRICTED  
  
WT/TPR/S/355  
11 April 2017  
(17-1942) Page: 1/177 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
SWITZERLAND AND LIECHTENSTEIN  
This report, prepared for the fifth joint Trade Policy Review of Switzerland and Liechtenstein, has 
been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required 
by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh 
Agreement Establishing the World Trade Organization), sought clarification from Switzerland and 
Liechtenstein on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Mr. Thomas Friedheim 
(tel: 022 739 5083); Mr. John Finn (tel: 022 739 5081); Mr. Cato Adrian (tel: 022 739 5469); 
Mr. Pierre Latrille (tel: 022 739 5266); Ms. Takako Ikezuki (tel: 022 739 5534); Ms. Anna Caroline 
Müller (Government Procurement - tel: 022 739 5514) and Mr. Wolf Meier -Ewert (Intellectual 
Property - tel: 022 739 6344).  
 
Document WT/TPR/G/355 contains the policy statement submitted by Switzerland and 
Liechtenstein.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Switzerland and Liechtenstein. This 
report was drafted in English.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Recent Economic Developments  ................................ ................................ ................... 13 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 22 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 22 
1.3.2    Trends and Patterns in FDI ................................ ................................ ........................ 25 
2   TRADE AND INVESTMENT REGIM E ................................ ................................ ............  27 
2.1   General Framework  ................................ ................................ ................................ ....27 
2.2   Trade Policy Objectives  ................................ ................................ ............................... 30 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 31 
2.3.1    WTO ................................ ................................ ................................ ...................... 31 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 32 
2.3.2.1    European Free Trade Association (EFTA)  ................................ ................................ ..32 
2.3.2.2    Agreement on the European Economic Area (EEA)  ................................ .................... 33 
2.3.2.3    Bilateral agreements  ................................ ................................ ............................. 35 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 36 
2.3.3.1   Non-reciprocal preferential arrangements  ................................ ................................ 36 
2.4   Investment Regime  ................................ ................................ ................................ ....37 
2.4.1    Switzerland  ................................ ................................ ................................ ............. 37 
2.4.2    Liechtenstein  ................................ ................................ ................................ ........... 41 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  42 
3.1   Measures Dire ctly Affecting Imports  ................................ ................................ .............. 42 
3.1.1    Customs procedures and requirements  ................................ ................................ .......42 
3.1.2    Customs valuation  ................................ ................................ ................................ ...43 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 43 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 44 
3.1.4.1    Applied MFN customs duties  ................................ ................................ ................... 44 
3.1.4.2    Tariff quotas  ................................ ................................ ................................ ......... 48 
3.1.4.3    Bound duties  ................................ ................................ ................................ ........ 50 
3.1.4.4    Other  duties and charges  ................................ ................................ ....................... 50 
3.1.4.5    Tariff exemptions and reductions  ................................ ................................ ............ 51 
3.1.4.6    Tariff preferences  ................................ ................................ ................................ ..53 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 56 
3.1.6    Anti-Dumping, countervailing, and safeguard measures  ................................ ................ 58 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 58 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 58 
3.2.2   Export taxes, charges, and levies  ................................ ................................ ............... 59 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 59 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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3.2.4    Export support and promotion  ................................ ................................ ................... 60 
3.2.5    Export finance, insurance, guarantees  ................................ ................................ ........ 60 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......61 
3.3.1    Internal taxes ................................ ................................ ................................ .......... 61 
3.3.1.1    Corporate income tax  ................................ ................................ ............................ 61 
3.3.1.2    Indirect ta xes ................................ ................................ ................................ .......62 
3.3.1.2.1    VAT ................................ ................................ ................................ .................. 62 
3.3.1.2.2    Excises  ................................ ................................ ................................ ............. 63 
3.3.2    Incenti ves and other assistance  ................................ ................................ ................. 65 
3.3.3    Standards and other technical requirements  ................................ ............................... 68 
3.3.4    Sanitary and phytosanitary requirement s ................................ ................................ ....70 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 72 
3.3.6    Competition policy and price controls  ................................ ................................ ......... 74 
3.3.7    Government procurement  ................................ ................................ ......................... 78 
3.3.7.1    Overview  ................................ ................................ ................................ ............. 78 
3.3.7.2    Switzerland  ................................ ................................ ................................ .......... 79 
3.3.7.3    Liechtenstein  ................................ ................................ ................................ ........ 80 
3.3.8    Trade -related intellectual property rights  ................................ ................................ ....81 
3.3.8.1    Overview  ................................ ................................ ................................ ............. 81 
3.3.8.2    Economic policy context  ................................ ................................ ......................... 82 
3.3.8.3    Structure and use of the IP Sy stem ................................ ................................ ......... 83 
3.3.8.4    International initiatives and WTO participation  ................................ .......................... 85 
3.3.8.5    Patents  ................................ ................................ ................................ ................ 87 
3.3.8.6    Plant varieties  ................................ ................................ ................................ ......88 
3.3.8.7    Trademarks  ................................ ................................ ................................ .......... 88 
3.3.8.8    Geographical indications  ................................ ................................ ........................ 90 
3.3.8.9    Copyright and related rights  ................................ ................................ ................... 91 
3.3.8.10    Enforcement  ................................ ................................ ................................ .......93 
4   TRADE POLICIES BY SECTO R ................................ ................................ .....................  95 
4.1   Agriculture  ................................ ................................ ................................ ................. 95 
4.1.1    Market access  ................................ ................................ ................................ ......... 95 
4.1.1.1    Applied MFN tariffs  ................................ ................................ ................................ 95 
4.1.1.2    Tariff quotas  ................................ ................................ ................................ ......... 97 
4.1.2    Domestic support ................................ ................................ ................................ .....98 
4.1.2.1    Direct payments  ................................ ................................ ................................ ...99 
4.1.2.2    Market support measures  ................................ ................................ .....................  101 
4.1.2.3    Milk ................................ ................................ ................................ ...................  102 
4.1.2.4    Grains, oilseeds and sugar  ................................ ................................ ...................  103 
4.1.3    Export subsidies  ................................ ................................ ................................ .... 103 
4.1.4    Level of support ................................ ................................ ................................ ..... 105 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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4.2   Mining and Energy  ................................ ................................ ................................ .... 108 
4.2.1    Energy  ................................ ................................ ................................ .................  108 
4.2.1.1    Switzerland  ................................ ................................ ................................ ........  108 
4.2.1.2    Recent developments in the general policy framework  ................................ .............  108 
4.2.1.2.1    Electricity  ................................ ................................ ................................ ........  108 
4.2.1.2.2    Environmental measures  ................................ ................................ ...................  110 
4.2.1.2.3    Oil ................................ ................................ ................................ ..................  111 
4.2.1. 2.4   Gas ................................ ................................ ................................ ................  111 
4.2.1.2.5    Renewables  ................................ ................................ ................................ ..... 113 
4.2.1.3    Liechtenstein  ................................ ................................ ................................ ...... 113 
4.2.1.3.1    Electricity  ................................ ................................ ................................ ........  113 
4.2.1.3.2    Gas ................................ ................................ ................................ ................  113 
4.3   Services  ................................ ................................ ................................ ..................  114 
4.3.1    Financial services  ................................ ................................ ................................ ... 114 
4.3.1.1    Switzerland  ................................ ................................ ................................ ........  114 
4.3.1.1.1    Banking services  ................................ ................................ ..............................  116 
4.3.1.1.2    Insurance services  ................................ ................................ ...........................  120 
4.3.1.1.3    Pension fund services  ................................ ................................ .......................  122 
4.3.1.1.4    Securitie s services and capital markets  ................................ ...............................  123 
4.3.1.2    Liechtenstein  ................................ ................................ ................................ ...... 125 
4.3.1.2.1    Statistical overview  ................................ ................................ ..........................  125 
4.3.1.2.2    Regulatory regime  ................................ ................................ ............................  126 
4.3.2    Telecommunications services  ................................ ................................ ..................  132 
4.3.2.1    Switzerl and ................................ ................................ ................................ ........  132 
4.3.2.2    Liechtenstein  ................................ ................................ ................................ ...... 136 
4.3.3    Postal, express and courier services  ................................ ................................ .........  139 
4.3.3.1    Switzerland  ................................ ................................ ................................ ........  139 
4.3.3.2    Liechtenstein  ................................ ................................ ................................ ...... 141 
4.3.4    Architectural services  ................................ ................................ .............................  142 
4.3.5    Construction services  ................................ ................................ .............................  144 
4.3.6    Health and social services "cluster"  ................................ ................................ ..........  146 
4.3.6.1    Health services  ................................ ................................ ................................ ... 146 
4.3.6.1.1    Medical professions  ................................ ................................ ..........................  146 
4.3.6.1.2    Hospital services  ................................ ................................ ..............................  148 
4.3.6.2    Social services  ................................ ................................ ................................ .... 150 
4.3.6.2.1    Overview  ................................ ................................ ................................ ........  150 
4.3.6.2.2    Retirement houses and me dicalized homes  ................................ ..........................  150 
4.3.7    Air transport services  ................................ ................................ .............................  151 
REFERENCES  ................................ ................................ ................................ ................  154  
5   APPENDIX TABLES  ................................ ................................ ................................ .. 156  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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CHARTS  
 
Chart 1.1 Foreign exchange rates, 2008 -16 ................................ ................................ ........... 16 
Chart 1.2 Merchanti ng trade, 2015  ................................ ................................ ....................... 18 
Chart 1.3 Federal budget revenues, 2015  ................................ ................................ ............. 19 
Chart 1.4 Composition of merchandise trade, 2012 and 2015  ................................ .................. 24 
Chart 1.5 Direction of merchandise trade, 2012 and 2015  ................................ ....................... 25 
Chart 3.1 Breakdown of applied MFN tariffs, 2012 and 2016  ................................ .................... 47 
Chart 3.2 Distribution of applied MFN and preferential tariffs, 2016  ................................ .......... 54 
Chart 3.3 Licence fees, 2010 -15 ................................ ................................ .......................... 82 
Chart 4.1 Export subsidy expenditures for processed agricultural products, 2010 -15 ................  105 
Chart 4.2 Level and composition of support to agricultural producers  ................................ ..... 107 
Chart 4.3 Final energy consumption, 2015  ................................ ................................ ..........  108 
 
TABLES  
 
Table 1.1 Switzerland – Selected macroeconomic indic ators, 2012 -15 ................................ ......13 
Table 1.2 Liechtenstein – Selected macroeconomic indicators, 2012 -15 ................................ ....21 
Table 1.3 Swiss exports and the extern al value of the Swiss franc  ................................ ............ 22 
Table 2.1 Main trade -related laws and regulations, 2016  ................................ ......................... 28 
Table 2.2 EFTA agreements under negoti ation – RTAs under early announcement, 2016  ............. 32 
Table 2.3 Work and residence permits: rules and procedures, 2014 -16 ................................ .....37 
Table 3.1 Principal customs legislation in Switzerland, 2016  ................................ .................... 42 
Table 3.2 Examples of ad valorem  equivalents, 2013 -15 ................................ ......................... 46 
Table 3.3 Structu re of MFN tariffs, 2016  ................................ ................................ ............... 46 
Table 3.4 Summary of tariff analysis, 2016  ................................ ................................ ........... 47 
Table 3.5 In -quota tariff lines, by tariff regime, 2016  ................................ ............................. 49 
Table 3.6 Guarantee fund contributions, 2016  ................................ ................................ .......50 
Table 3.7 Guarantee fund contributions (GFC), applied tariffs, and bound tar iffs ........................ 51 
Table 3.8 Suspension of customs duties in the textiles sector  ................................ .................. 51 
Table 3.9 Key features of tariff exemptions and reducti ons ................................ ...................... 52 
Table 3.10 Tariffs under preferential agreements, 2016  ................................ .......................... 54 
Table 3.11 GSP utilization, 2012 -15 ................................ ................................ ..................... 56 
Table 3.12 Selected products subject to import prohibitions, 2012  ................................ ........... 56 
Table 3.13 Insurance products available from SERV, 2016  ................................ ...................... 61 
Table 3.14 Liechtenstein corporate taxes and other selected taxes, January 2016  ...................... 62 
Table 3.15 VAT rates  ................................ ................................ ................................ .......... 63 
Table 3.16 Taxation of alcoholic beverages  ................................ ................................ ............ 64 
Table 3.17 Federal assistance, 2010 -15 ................................ ................................ ................ 66 
Table 3.18 Government  procurement in Liechtenstein, 2013 -15 ................................ ............... 81 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Table 3.19 Switzerland: Applications for trademarks, industrial designs, and patents, and 
patents granted, 2012 -15 ................................ ................................ ................................ ...84 
Table 3.20 Liechtenstein: Applications for trademarks, industrial designs, and patents, and 
patents granted, 2012 -15 ................................ ................................ ................................ ...85 
Table 4.1 Direct payments, 2012 -15 ................................ ................................ ..................  100 
Table 4.2 Liechtenstein's direct payments, 2013 -15 ................................ .............................  101 
Table 4.3 Market support and direct payments, 2012 -15 ................................ .......................  102 
Table 4.4 Crop premiums, 2013 -15 ................................ ................................ ....................  103 
Table 4.5 OECD producer support estimate (PSE) for Switzerland, 2013 -15 ............................  106 
Table 4.6 Shareholders of Swissgas AG, 2015 ................................ ................................ ...... 112 
Table 4.7 Telecom tariffs, 2012 -15 ................................ ................................ .....................  135 
Table 4. 8 Retail mobile roaming rates, 2015  ................................ ................................ ........  135 
Table 4.9 Main economic indicators of the Swiss postal services sector, 2015  ..........................  140 
Table 4 .10 Number of postal service providers with more than 1% of the total Swiss postal 
market, 2015  ................................ ................................ ................................ ..................  141 
Table 4.11 Construction sector main economic indicators, 2006, 2011 and 2015  ......................  144 
Table 4.12 Human health activities sector, 2006, 2011 and 2014 -15 ................................ ...... 146 
Table 4.13 Number of physicians and its evolution, 2010 -15 ................................ .................  147 
Table 4.14 Number of beds operated by the Privatklinikgruppe Hirslanden, 2012 -16 ................  149 
Table 4.15 Number of institutions by legal/econom ic status and sector, 2014  ..........................  150 
Table 4.16 Switzerland's air transport agreements concluded or modified between January 
2012 and December 2015  ................................ ................................ ................................ . 153 
 
BOXES  
 
Box 2.1 Liechtenstein's Market Control and Surveillance Mechanism  ................................ ......... 34 
Box 4.1 Financial services: statistical overview, 2006 -15 ................................ ......................  114 
Box 4.2 Switzerland's regulatory framework for banking services  ................................ ...........  117 
Box 4.3 Switzerland's regulatory framework for insurance, 2016 ................................ ............  120 
Box 4.4 Switzerland's regulatory framework for pension funds, 2016 ................................ ...... 122 
Box 4.5 Switzerland's market and regulatory regime for securit ies services and capital 
markets, 2016  ................................ ................................ ................................ .................  123 
Box 4.6 Financial services: statistical overview  ................................ ................................ .... 125 
Box 4.7 Liechtenstein's regulato ry framework for banking services, 2015  ................................  127 
Box 4.8 Liechtenstein's regulatory framework for insurance services, 2016  .............................  129 
Box 4. 9 Regulatory framework for investment undertakings, asset management 
companies, and payment services providers  ................................ ................................ ........  130 
Box 4.10 Liechtenstein's regulatory framework for pension funds  ................................ ...........  131 
Box 4.11 Market structure and regulatory framework of Switzerland's telecommunications 
sector, 2016  ................................ ................................ ................................ ....................  132 
Box 4.12 Regulatory framework for  telecommunication services in Switzerland  ........................  133 
Box 4.13 Market structure and main economic indicators of Liechtenstein's 
telecommunications sector, 2016  ................................ ................................ .......................  136 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Box 4.14 Regulatory framework of telecom services in Liechtenstein  ................................ ...... 137 
Box 4.15 Main features of the Swiss postal sector, 2016  ................................ .......................  139 
Box 4.16 Main economic and regulatory features of architectural services in Switzerland  ..........  142 
Box 4.17 Regulatory framework for construction services  ................................ ......................  145 
Box 4.18 Regulatory framework for medical services in Switzerland  ................................ ....... 147 
Box 4.19 Regulatory framework for hospital services in Switzerland  ................................ ....... 149 
Box 4.20 Switzerland's market and regulatory regime for air transport subsectors, 2016  ..........  152 
 
APPENDIX TABLES  
 
Table A1.1 Merchandise exports by product group, 2012 -15 ................................ ..................  156 
Table A1.2 Merchandise exports by destination, 2012 -15 ................................ ......................  158 
Table A1.3 Merchandise imports by product group, 2012 -15 ................................ .................  159 
Table A1.4 Merchandise imports by origin, 2012 -15 ................................ .............................  160 
Table A1.5 Liechtenstein's direct imports and exports, 2010 -14 ................................ .............  161 
Table A1.6 Trade in services by sector and destination/origin, 2012 -15 ................................ .. 162 
Table A1.7 Foreign direct investment by selected trading partners, 2012 -15 ...........................  163 
 
 
Table A2.1 Most recent notifications made by Switzerland to the WTO  ................................ .... 164 
Table A2.2 Most recent notifications made by Liechtenstein to the WTO  ................................ .. 166 
Table A2.3 Participation in EFTA free trade agreements, November 2016  ................................  168 
 
 
Table A3.1 SPS, 2015  ................................ ................................ ................................ ....... 170 
Table A3.2 State -owned enterprises and exclusive arran gements, 2016  ................................ .. 173 
 
 
Table A4.1 Switzerland's major traded agricultural products, 2012 -15 ................................ .... 175 
Table A4. 2 WTO tariff quotas for agricultural products, 2015 and 2016  ................................ .. 176 
 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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SUMMARY  
1. The trade regimes of Switzerland and Liechtenstein remain generally open, except in 
agriculture, which continues to be protected with high imp ort tariffs levied on sensitive products. 
Switzerland and Liechtenstein continue to be strong supporters of a rules -based multilateral 
trading system and, during difficult times for the global economy, they advocate further trade 
liberalization. The last j oint TPR of Switzerland and Liechtenstein took place in 2013.  
 
2. The Swiss economy, a well -diversified and advanced economy, has shown resilience against 
the headwinds from the economic problems in the euro zone and a strong Swiss franc.  Despite a 
difficu lt environment, t he economy continued to grow  by 1.5 % on average in 2013 -15, 
accompanied by relatively low unemployment  (4.5%).  The country enjoys good governance with a 
system of direct democracy that is deeply rooted in Swiss tradition, while the economy  is managed 
with fiscal prudence. The Confederation aims at a balanced budget over the business cycle, which 
is underpinned by a constitutional fiscal rule ("debt brake"). The public debt, including that from 
cantons and municipalities, equals roughly 34% of GDP. The main challenges for the Swiss 
economy revolve around the issues of competitiveness in the face of a strong Swiss franc, high 
prices prevailing in Switzerland, weak productivity growth, and open issues in Switzerland's 
relations with the EU.   
 
3. Liechtenstein has a diversified economy, which is based on a comparatively large industrial 
sector (about 41% of GDP) and the financial services industry (about 25% of GDP). As a 
consequence of the very small domestic market, Liechtenstein's  economy is h ighly export -
oriented. Although affected by a strong Swiss franc, it has retained its competitiveness owing to 
niche products , and regulatory reforms in the financial services sector.   
 
4. The 1923 Swiss -Liechtenstein Customs Union Treaty created a common regime for goods. 
Switzerland acts on Liechtenstein's behalf in customs union matters, notably concerning trade 
policy measures affecting imports and exports of goods, and agriculture. The EFTA Convention 
regulates the bilateral relationship in services, g overnment procurement, consumer protection, 
investment, and certain intellectual property rights. As a member of the European Economic Area, 
Liechtenstein participates in the single market between the EU and EEA/EFTA countries (Iceland, 
Liechtenstein and N orway), which is designed to provide for the free movement of goods, services, 
persons, and capital.  The trade relations between Switzerland and the European Union are 
governed by a number of bilateral agreements. Liechtenstein maintains a Market Control a nd 
Surveillance Mechanism for the limited instances where Swiss and Liechtenstein/EEA import 
requirements differ. Switzerland and Liechtenstein share the Swiss franc as a common currency.  
 
5. The period under review was marked by monetary policy developme nts. In 2011, the debt 
crisis in the euro zone and uncertainty in world financial markets triggered a flight to safe havens 
by investors, leading to a strong appreciation of the Swiss franc. On 6 September 2011, the Swiss 
National Bank (SNB) set a minimum exchange rate of SwF 1.20 per euro. The exchange rate floor 
was enforced by the SNB through foreign exchange interventions. On 15 January 2015, the SNB 
abandoned its exchange rate floor policy, while continuing to intervene in the foreign exchange 
market, as deemed necessary. Since the lifting of the exchange rate floor, the real exchange rate 
of the Swiss franc, which gives an indication of the price competitiveness of Swiss exporters, has 
appreciated.  
 
6. After a contraction in the first quarter of 2015 (down 0.4%) due to the impact of currency 
appreciation, GDP growth resumed and the Swiss economy has posted modest quarterly growth 
rates since then. The economic expansion in 2014 -15 was carried mainly by domestic demand, as 
very low interest rates have e ncouraged private consumption and construction. Switzerland has a 
large services sector (about 74% of GDP), but also possesses a strong, high -tech and export -
oriented manufacturing sector (18 -19% of GDP). In general, the traditional export industries, such  
as the machinery industry, have suffered from the strong franc and weak external demand, while 
more domestically oriented sectors have fared better and benefited from the demand created by 
population growth (immigration).  
 
7. Switzerland's current account  is traditionally in surplus. European countries, and especially 
euro zone countries, remain Switzerland's most important export and import markets. Some of the 
main shifts in the direction of trade include a significant increase in exports to the United S tates 
and China. The chemical and pharmaceutical industry is Switzerland's largest export industry and WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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accounted for approximately SwF 85 billion or over 40% of total goods exports in 2015. The 
industry has been the main driver of Swiss merchandise exports , while exports from the rest of the 
economy have been declining since 2011 (in volume terms). Liechtenstein normally runs a surplus 
in direct merchandise trade, which excludes trade with Switzerland.  
 
8. Switzerland remains among the top destinations for  foreign direct investment. Most 
economic sectors are open to investment, including by foreigners. However, investment 
restrictions continue to apply to activities under state monopoly, including certain rail transport 
services, some postal services, and c ertain insurance services. Restrictions (domicile 
requirements) are also applied to air and maritime transport, hydro - and nuclear power, oil and 
gas pipelines, and transport of explosive materials.  
 
9. In December 2016, the Swiss Parliament adopted imple menting legislation regarding a 
constitutional amendment triggered by a popular vote on immigration on 9 February 2014. The 
chosen solution, which aims to be compatible with the agreement with the EU on the free 
movement of persons, is based on an obligati on for employers to notify vacancies to the public 
employment services (for certain groups of professions and in certain regions where 
unemployment is above average) and to organize interviews and testing of persons registered with 
the public employment se rvices in order to give an employment opportunity to locals, but without 
an obligation to hire them.  
 
10. In Liechtenstein, most sectors are open to national and foreign investment (subject to 
residency requirements), except for restrictions on: the purch ase of real estate; production, trade, 
and transport of electricity, gas, and water; and on a number of financial services (asset 
management, investment consulting, and assuming trusteeships).  
 
11. As regards the WTO, Switzerland and Liechtenstein both fo rmally accepted the Trade 
Facilitation Agreement in September 2015. The tariff reductions resulting from the expansion of 
the Information Technology Agreement (ITA II) are being implemented on a provisional basis with 
effect from 1 January 2017. Liechtenst ein became the first WTO Member to ratify the revised 
plurilateral Agreement on Government Procurement in 2013, while Switzerland intends to ratify 
the revised GPA in parallel with ongoing reforms aimed at harmonizing its procurement regime at 
the federal and cantonal levels.  
 
12. Since the last review in 2013, Switzerland has submitted well over 100 notifications on a 
broad range of subjects, notably on TBT and TRIPS matters. Switzerland's notifications frequently 
include Liechtenstein, although Liechtens tein also provides separate notifications for certain 
measures. Neither Switzerland nor Liechtenstein was involved in any dispute settlement cases as a 
complainant or respondent during the period under review.  
 
13. Switzerland's multilateral approach is co mplemented by an extensive preferential network, 
led by its bilateral agreements with the EU, and RTAs concluded within the framework of EFTA. As 
a consequence, the share of Switzerland's imports and exports subject to most favoured nation 
treatment is low  (less than 20%). Since the last review, three new EFTA RTAs have entered into 
force (Central American States – Panama and Costa Rica; Bosnia and Herzegovina; and the Gulf 
Cooperation Council). Several EFTA agreements have been signed but are not yet in fo rce 
(Philippines; Georgia; and the accession of Guatemala to the RTA with the Central American 
States). Switzerland's RTAs are supplemented by important bilateral FTAs with Japan (2009) and 
China (in force since 1 July 2014). In addition to the EEA, Liecht enstein participates in RTAs 
through EFTA. Switzerland's bilateral FTAs with the Faeroe Islands, Japan, and China also apply to 
Liechtenstein for trade in goods, while other elements (such as trade in services) are not extended 
to Liechtenstein.  
 
14. Swiss (and Liechtenstein) customs procedures remain substantially unchanged. As a trade 
facilitation measure in line with the WTO Ministerial Decision of 19 December 2015 on preferential 
rules of origin for LDCs, Switzerland introduced the "registered exporter  system" (REX system) on 
1 January 2017. The new self -certification system requires exporters to register with the 
competent authorities in the exporting country for this purpose. It is expected to reduce the 
administrative burden related to documentary an d procedural requirements for LDC and GSP 
beneficiaries.  
 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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15. All of Switzerland -Liechtenstein's applied tariffs continue to be expressed as specific rates. 
The average applied MFN tariff was 9.0% in 2016 (based on ad valorem equivalent estimates 
using 20 15 import data), compared with a simple average of 9.2% in 2012. MFN tariffs on 
agricultural products (WTO definition) averaged 30.8% in 2016, while the average for non -
agricultural products was 2.3%. Rates above 100% apply only in agriculture, mainly to v egetables, 
meat, and dairy products. All tariff lines are bound with the exception of 84 lines covering gas, 
petroleum, and related products. Switzerland administers a complex tariff quota system with 
overlapping WTO and preferential tariff quotas, and num erous sub -quotas. Most WTO tariff quotas 
have been over -filled in recent years.  
 
16. Switzerland maintains compulsory reserve stock requirements on certain products. To 
finance these stocks, "guarantee fund contributions" are levied on imports of certain foodstuffs and 
fuels covered by the scheme, as well as on imports and domestic production of fertilizers, natural 
gas and therapeutic products subject to compulsory reserve stock requirements. Since ODCs are 
bound at zero and applied tariffs often equal th e bound rates, it would appear that the sum of 
tariff and guarantee fund contributions may exceed Switzerland's bound commitments on several 
tariff lines at present.  
 
17. Switzerland stands out as a "high -price island" in Europe. Reasons include remaining  trade 
barriers (for instance, tariffs on agricultural products but also some technical barriers to trade), 
and the higher purchasing power and lower price sensitivity of Swiss consumers. One of the key 
elements of the Swiss Government's current growth pol icy is to further open up the economy to 
imports, with the aim of stimulating price competition and spurring productivity. MFN tariffs on 
textiles (60 tariff lines) were suspended from 1 January 2016 for a period of four years. Further 
autonomous trade -liberalizing measures are under consideration.  
 
18. With regard to non -tariff measures, Switzerland has continued to harmonize its technical 
requirements with those of the EU. In addition, Switzerland applies the "Cassis de Dijon principle" 
as a trade policy  instrument to dismantle technical barriers to imports from the EU and EFTA 
markets and thereby enhance import competition. However, a number of exceptions diminish its 
effectiveness. A reform of the Swiss food safety regime is underway that will further a lign the food 
safety requirements with the EU acquis communautaire. The new food safety regime entering into 
force on 1 May 2017 will also bring about a paradigm shift in the Swiss approach to food safety. 
The positive principle (requiring that all food it ems for sale must be defined in regulations or 
approved by the authorities) has been abolished as an unnecessary barrier to trade and, in future, 
all safe food items will be allowed unless explicitly prohibited. The "precautionary principle" has 
also been introduced into Swiss food safety legislation. Since the last review, no specific trade 
concerns have been raised in the TBT or SPS Committees regarding measures maintained by 
Switzerland or Liechtenstein.  
 
19. Switzerland and Liechtenstein apply a number  of prohibitions and restrictions on imports and 
exports, mainly for reasons of security, health, protection of intellectual property, and protection 
of the environment, or to ensure compliance with international obligations. Switzerland and 
Liechtenstein do not have any specific anti -dumping, countervailing or safeguard legislation, and 
have never applied such measures.  
 
20. There have been no new developments regarding taxes affecting imports. Switzerland and 
Liechtenstein apply certain indirect taxes th at are also levied on imports, notably value added tax 
(VAT), but also a motor vehicle tax, a consumption tax on mineral oils and fuels, a CO2 tax on 
fossil fuels, an incentive fee on volatile organic compounds, and taxes on tobacco and alcoholic 
beverages  (beer and spirits). Switzerland administers about 300 federal support programmes 
(amounting to more than SwF 37 billion in 2015), principally for social security purposes, 
education, research, transportation, and agriculture. Schemes notified to the WTO's  Committee on 
Subsidies and Countervailing Measures cover support for regional development, SMEs operating in 
arts and crafts, CO2 refunds, and forestry. Liechtenstein does not provide internal assistance to its 
industries, except agriculture. Through the EEA Agreement, uniform and common rules govern 
competition, including the provision of (non -agriculture) state aid.  
 
21. The Swiss competition regime has not changed substantially since 2004. To counter the high 
prices prevailing in Switzerland, the Compet ition Commission routinely intervenes to expose and 
prevent market foreclosures, which have the effect of reducing import competition, and by taking 
pivotal decisions regarding enforcement actions. Switzerland has regularly notified the activities of WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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the S wiss Alcohol Board to the Working Party on State Trading Enterprises. According to an 
amendment of the Alcohol Law, Switzerland is to abolish its statutory import monopoly for (high -
grade) ethanol by the end of 2018. A monopoly on salt is held by the canto ns. 
 
22. Regarding intellectual property, Switzerland has launched legislative initiatives on copyright, 
which aim to balance protection and enforcement in the context of new technologies with the 
privacy and freedom of the internet user. In the area of tr ademarks and geographical indications, 
the so -called "Swissness legislation" entered into force on 1 January 2017, which introduces 
significant changes to improve the protection of the Swiss brand at home and abroad. Two 
international IP treaties have been  submitted to the Swiss Parliament for approval (Marrakesh VIP 
Treaty, and Beijing Treaty on Audiovisual Performances). As a consequence of the customs union, 
Liechtenstein's intellectual property system is strongly integrated with the IP system of 
Switzer land.  
 
23. Regarding developments in the energy sector, the Swiss Parliament adopted new legislation 
in 2016 (albeit subject to a referendum) that is based on the "Energy 2050 Strategy" and entails, 
amongst other things, a shift towards increased support for renewable energy (including 
hydropower) along with the progressive closure of nuclear power plants. Production and 
distribution of electricity and gas is largely ensured by Swiss public utilities at the cantonal and 
municipal levels but the sector is o pen to foreign investment. The full liberalization of the 
electricity market has been suspended, pending negotiations with the EU on an electricity 
agreement. Liechtenstein has transposed the first two EU energy packages and is in the process of 
transposin g the third. The electricity and gas markets have been liberalized (except ownership 
unbundling for electricity).  
 
24. With regard to banking services, a key regulatory development was the adoption of the 
automatic exchange of information (AEOI) regarding tax matters, in order to combat cross -border 
tax evasion. Liechtenstein was among the early adopters of the OECD standard, and it put in place 
the necessary legislation for the AEOI as of 1 January 2016, including an AEOI agreement with the 
EU effective fr om that date. Switzerland has adopted the principle of the AEOI through various 
legal instruments and is to exchange information with the EU and other countries from 2018.  
 
25. Switzerland has strengthened its "too big to fail" regime for banks, which inc ludes higher 
capital adequacy standards for systemically important banks. Anti -money -laundering legislation 
has also been reinforced. Consumer protection and supervision has been strengthened for 
insurance companies. Legislation for the securities and capi tal markets has been reformed and 
new rules have been introduced regarding central counterparties, trade repositories, and cross -
border participation in Swiss trading venues. A reform of the Swiss pension fund regime is 
underway. Liechtenstein has continue d to transpose financial and anti -money -laundering EU 
legislation via EEA mechanisms, and unilaterally in the case of the first legislative package on the 
financial supervisory bodies. The regime of collective investment schemes/investment 
undertakings has  been extensively revised with the creation of new categories.  
 
26. In the area of air transport services, Switzerland has pursued its liberal air policy with the 
signature or modification of a series of "more than open skies" agreements with numerous 
countries. The Swiss postal services reform, launched in 2010, has been fully implemented and the 
state-owned Swiss Post has been corporatized. There is competition outside the reserved areas. 
There have been no major changes in the telecoms regimes of Switze rland and Liechtenstein.  
 
27. With respect to professional services, market access to architectural and construction 
services is lightly regulated in Switzerland. Only six cantons regulate architectural services and 
only one canton regulates construction services. Foreign qualifications may be recognized, 
including through an accelerated procedure for EU/EFTA citizens. Medical and hospital services are 
subject to a non -discriminatory economic needs test to ensure universal services at the lowest cost 
for the Swiss social security system. Some cantons have waived these limitations for medical 
services. Social services, such as retirement homes, are open to foreign investment.  
 
28. Since the last review, Switzerland has implemented the Agricultural Policy 20 14-17. The new 
agricultural policy framework involves mainly a rearrangement and fine -tuning of the Swiss direct 
payments system to improve its efficiency and effectiveness, to reallocate some subsidies from 
livestock and milk production to the arable sect or and marginal areas, and to address conflicts with 
WTO Green Box criteria. Switzerland provided around SwF 95 million in 2016 for export subsidies WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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on processed agricultural products in order to compensate the domestic food industry for the price 
handicap  of using tariff protected locally produced agricultural raw materials. Meanwhile, the Swiss 
Government has initiated domestic procedures to eliminate such export subsidies by January 
2019, in line with commitments made at the WTO Ministerial Conference in  Nairobi. Despite these 
steps, agriculture (together with some domestic services) remains vulnerable to a more 
competitive environment – highlighting the need for more market -oriented reforms.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.   Switzerlan d is a high -income country whose wealth is highly dependent on international 
trade. The country enjoys good governance, based on a system of direct democracy with the right 
to a popular vote on legislative reforms. The economy is managed with fiscal pruden ce. 
Switzerland has a large services sector (close to 74% of GDP), but also possesses a strong, high -
tech and export -oriented manufacturing base. Agriculture and some domestic services remain the 
economy's greatest weaknesses in terms of international comp etitiveness. The main economic 
challenges revolve around the issue of competitiveness in the face of a strong Swiss franc, the 
high prices prevailing in Switzerland, weak productivity growth, and uncertain future relations with 
the European Union.  
1.2.  Liechte nstein is a very small  but wealthy country with a diversified economy. The main pillars 
of the economy are a comparatively large industrial sector (about 41% of GDP) and the financial 
services industry (about 25% of GDP). Liechtenstein faces similar econom ic challenges to 
Switzerland. Its economic performance is tied, amongst others, to the exchange rate movements 
of the Swiss franc, as it shares a common currency with Switzerland. As a member of the 
European Economic Area  (EEA) , Liechtenstein participates in the single market among the EU and 
EEA/EFTA countries, which is designed to provide for the free movement of goods, services, 
persons, and capital.  
1.2  Recent Economic Developments  
1.3.  The Swiss economy has shown resilience in a difficult environment , faced with headwinds 
from the economic problems in the euro zone and a strong Swiss franc. Since the last trade policy 
review  in 2013, the economy has continued to grow (1.5% on average during the period  2013-
15), accompanied by low unemployment (in the range of 4 -4.5%, based on ILO methodology) 
(Table 1.1).  
Table 1.1 Switzerland – Selected macroeconomic indicators, 2012 -15 
  2012  2013  2014  2015  
GDP at market prices (SwF billion)a 623.5  635.0  643.8  645.4  
GDP at marke t prices (US$ billion)a 664.9  685.1  703.6  670.6  
Real GDP (%age change, reference year = 2010)  1.1 1.8 2.0 0.8 
Per capita GDP at current prices (US$)  82,709  84,169  85,407  80,538  
Per capita GDP at current prices (SwF)b  77,573 
(77,559)   77,986 
(78,023)   78,151 
(78,159)   77,524 
(77,508)  
Population ('000)c 8,039  8,140  8,238  8,327  
Unemployment rate, annual average, %  4.2 4.4 4.5 4.5 
GDP by economic activity (% of GDP at basic prices)  
Agriculture, forestry and fishing  0.7 0.7 0.8 0.7 
Mining and quarrying  0.1 0.1 0.1 0.1 
Manufacturing  18.0 18.9 18.6 18.0 
Energy and water supply, waste management  1.8 1.8 1.6 1.9 
Construction  5.2 5.3 5.4 5.5 
Services  73.1 73.2 73.6 73.8 
Trade, repair of motor vehicles and motorcycles  14.9 14.6 14.9 14.5 
Transportation and storage; information and 
communication  8.3 8.1 8.1 8.4 
Accommodation and food service activities  1.8 1.8 1.8 1.7 
Financial service activities  5.7 5.9 5.6 5.1 
Insurance service activities  4.7 4.6 4.3 4.5 
Real estate, professional and support service  
activitiesd 10.4 10.7 10.9 11.1 
Public administration  10.8 10.8 10.8 10.8 
Human health and social work activities  7.3 7.5 7.6 7.8 
Other  9.3 9.3 9.6 9.8 
General government finances (% of GDP)e 
Revenue  32.6 32.7 32.7 33.7 
Expenditure  32.6 32.9 32.9 33.6 
Overall fiscal balance  0.0 -0.2 -0.2 0.1 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  2012  2013  2014  2015  
Confederation  0.1 0.0 0.0 0.3 
Cantons  -0.4 -0.2 -0.4 -0.4 
Municipalities  -0.1 -0.2 -0.1 -0.1 
Social security funds  0.5 0.3 0.3 0.3 
Tax-to-GDP ratio  
General government  26.9 27.0 27.0 27.7 
Confederation  9.5 9.6 9.5 9.9 
  Cantons  6.6 6.6 6.7 6.8 
Debt ratiof 
General government  34.2 34.2 34.7 34.0 
Confederation  17.8 17.4 16.7 15.9 
  Cantons  8.8 9.3 10.3 10.4 
Prices and exchange rates  
CPI (%age change)  -0.69 -0.22 -0.01 -1.14 
SwF/US$ (period average)  0.94 0.93 0.92 0.96 
SwF/€ (period average)  1.21 1.23 1.21 1.07 
Nominal exchange rate indexg 138.05  138.07  140.92  153.07  
Real exchange rate indexg 113.17  110.75  111.38  119.01  
Swiss Confederation bond issues – 10 years 
(%)h 0.65 0.95 0.69 -0.07 
External sector (in SwF billi on, unless otherwise indicated)  
Current account  64.3 73.2 58.5 71.9 
% of GDP  10.3 11.5 9.1 11.1 
Goods (net)  37.7 49.8 50.8 51.6 
Receipts, of which  312.0  346.4  301.5  291.7  
Foreign trade totali 200.6  201.2  208.4  202.8  
Non-monetary gold  79.4 117.7  65.0 65.8 
  Supplements to foreign trade  -7.9 -9.0 -10.2 -12.2 
  Merchanting  26.9 23.3 26.5 24.8 
Expenses, of which  274.3  296.6  250.8  240.2  
Foreign trade totali 176.8  177.6  178.6  166.3  
Non-monetary gold  88.8 109.8  65.2 68.2 
   Supplements to foreign trade  -3.3 -1.8 -1.7 -3.5 
Services (net)  21.5 20.3 19.4 18.0 
Receipts  102.3  105.9  110.9  108.8  
Expenses  80.8 85.6 91.5 90.8 
Primary income (net)  13.4 15.1 6.0 15.2 
Secondary income (net)  -8.2 -12.0 -17.7 -12.8 
Capital account  -2.2 0.7 -10.6 -13.7 
Financia l account (excluding derivatives, net)  82.1 107.0  43.1 59.6 
Reserve assets (net)  174.6  12.9 34.0 94.5 
Derivatives (net)  -1.5 -0.8 -0.1 1.4 
Statistical difference  18.5 32.3 -4.9 2.7 
Total reserves (includes gold, current SwF 
billion)  485.0  477.4  541.2  601.4 
a Calendar and seasonally adjusted data.  
b Figures in parentheses indicate seasonally and calendar adjusted GDP per permanent resident.  
c Permanent resident population at the end of the period.  
d Including real estate, legal, accounting, management, architecture,  and engineering activities,  
 scientific research and development, scientific and technical activities, and administrative and 
support service activities.  
e Forecasts for 2015 -2016, except 2015 Confederation and social security funds.  
f With reference to the Maastricht definition.  
g Export -weighted against 40 trading partners, January 1999 = 100. An increase means appreciation 
of the Swiss franc.  
h Annual average calculated on the basis of monthly data.  
i Foreign trade according to the Federa l Customs Administration (FCA).  
Source:  State Secretariat for Economic Affairs (SECO) online information. Viewed at: 
https://www.seco.admin.ch/seco/fr/home.html ; Federal Finance Administration onl ine information. 
Viewed at: https://www.efv.admin.ch/efv/fr/home.html ; Swiss National Bank (SNB) data portal. 
Viewed at: https://data.snb.ch/en ; Federal Statis tical Office  (FSO). Viewed at: 
http://www.bfs.admin.ch/bfs/portal/fr/index.html ; and World Bank, World Development Indicators. 
Viewed at: http://databank.worldbank.org/data/home.aspx  [October 2016].  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Monetary policy  
 
1.4.  In the course of 2011, the debt crisis in the euro zone and a high degree of uncertainty in the 
financial markets triggered a flight to safe havens by investors, which pr ompted a strong 
appreciation of the Swiss franc ( vis-à-vis the euro, the dollar and other currencies), culminating in 
near parity between the SwF and the euro in August 2011 (Chart 1.1).1 On 6 September 2011, the 
Swiss National Bank (SNB) set a minimum exc hange rate of SwF  1.20 per euro, citing a serious 
threat to the Swiss economy and a risk of deflation. The IMF endorsed the SNB's temporary 
emergency measure, calling it an "appropriate policy response to the risk of a sharp economic 
contraction and deflat ion caused by a rapid exchange rate appreciation".2 Monetary policy was 
geared towards enforcing the exchange rate floor through foreign exchange interventions. The 
SNB declared that it would defend the exchange floor by buying foreign currencies in unlimi ted 
quantities, if needed.3  
1.5.  Towards the end of 2014, financial markets were expecting a tightening of monetary policy in 
the United States and a further easing in the euro zone. As a result, the euro – and the Swiss franc 
with it – depreciated against th e U.S. dollar. At the same time, the Swiss franc appreciated against 
the euro and the exchange rate floor came under pressure.  
1.6.  In early January 2015, the SNB had to intervene to an increasing extent  to defend the 
exchange rate floor. On 15 January 2015, t he SNB abandoned its exchange rate floor policy. The 
minimum exchange rate was no longer sustainable, according to the SNB, since the risks 
associated with maintaining it would have compromised the SNB's ability to conduct monetary 
policy in the long term.  Further, the SNB noted that p ostponing the inevitable exit would not have 
lessened the turbulence on the financial market, nor would it have alleviated the impact on the 
economy.4 The SNB announced that it would nonetheless continue to intervene in the fo reign 
exchange market, if necessary.5 By end -2015, its currency reserves, including gold, had increased 
to SwF 601 billion (roughly equivalent to the size of the Swiss GDP), up from around SwF  79 billion 
in 2008. In the course of 2016, the SNB continued to  intervene in the foreign exchange market, 
notably following the Brexit vote.  
1.7.  The surprise decision by the SNB to discontinue the exchange rate floor against the euro 
triggered a sharp appreciation of about 20% against the euro (towards a SwF/euro exchange  rate 
slightly below parity). By August 2015, the Swiss franc had weakened towards a level of SwF 1.10 
per euro and has since been relatively stable vis-à-vis the euro, trading within a range of SwF 1.08 
to 1.12 per euro. As of end -October 2016, there had been no appreciation of the Swiss franc 
against the U.S. dollar compared to the situation before the SNB's decision of 15 January 2015. 
The Swiss franc traded slightly under parity against the U.S. dollar albeit with some volatility. The 
trade -weighted rea l exchange rate of the Swiss franc, which gives an indication of the price 
competitiveness of Swiss exporters, has moved into a higher range (meaning appreciation) since 
the lifting of the exchange rate floor (Table  1.1). As of September 2016, the SNB  was of the view 
that the Swiss franc remain ed "significantly overvalued".6 
                                                
1 The exchange rate stood at around at 1.25 SwF/€ on 3 January 2011, at 1.03 SwF/€ on 
10 August  2011, and at 1.11 SwF/€ on 5 September 2011.  
2 IMF (2012).  
3 SNB onli ne information. Viewed at: 
http://www.snb.ch/en/mmr/reference/pre_20110906/source/pre_20110906.en.pdf . 
4 SNB (2016).  
5 SNB online information. Viewed at: 
http://www.snb.ch/en/mmr/reference/pre_20150115/source/pre_20150115.en.pdf . 
6 Viewed at: http://www.snb.ch/en/mmr/reference/pre_20160915/source/pre_20160915.en.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Chart 1.1 Foreign exchange rates, 2008 -16 
0.600.801.001.201.401.601.80
01/01/2008
01/06/2008
01/11/2008
01/04/2009
01/09/2009
01/02/2010
01/07/2010
01/12/2010
01/05/2011
01/10/2011
01/03/2012
01/08/2012
01/01/2013
01/06/2013
01/11/2013
01/04/2014
01/09/2014
01/02/2015
01/07/2015
01/12/2015
01/05/2016
01/10/2016Chart 3. [CHE -LIE] Foreign exchange rates
SwF/€
SwF/US$6September 
2011 15January 
2015
Information provided by Swiss authorities.     Source:
 
Source:  Information provided by the Swiss authorities.  
1.8.  Current monetary policy remains expansi onary with interest rates in negative territory. The 
SNB first announced negative interest rates on sight deposit account balances on 
18 December  2014, with the objective of taking the three -month LIBOR to a target range of 
-0.75% to +0.25%. This unconvent ional measure of imposing negative interest rates was taken to 
weaken appreciating pressures on the Swiss franc, by reducing the attractiveness of holding 
investments in Swiss francs. On 15 January 2015, the SNB further lowered the interest rate on 
SNB sig ht deposits to -0.75%, with a target range for the three -month LIBOR at -1.25% to 
-0.25%. The policy rates remained unchanged in 2016.  
1.9.  Negative interest rates are charged on SNB balances of almost all account holders that 
exceed certain exemption threshol ds (excess reserves).7 Account holders affected are banks, 
securities dealers, cash processing facilities, clearing settlement organizations, mortgage bond 
institutions, insurance companies, international organizations, and central banks. The exemption 
threshold is specific to each account holder, but is at least SwF 10 million. For account holders 
subject to minimum reserve requirements (domestic banks) and bank -like domestic institutions, it 
is calculated as 20 times the minimum reserve requirement in a s pecified reporting period, 
20 October -19 November 2014 (static component), minus any increase/plus any decrease in the 
amount of cash held (dynamic component) between the current reporting period and a reference 
period. The other types of account holders a re subject to fixed exemption thresholds set by the 
SNB. Banks have so far generally spared small depositors (i.e. private clients and SMEs) from 
negative interest rates, while passing them on to large depositors (i.e. institutions and large 
enterprises).8 
Economic performance  
 
1.10.   Economic growth in Switzerland accelerated during 2013 -14 (real GDP up 2.0% in 2014) 
along with the modest recovery of the world economy. After a GDP contraction in the first quarter 
of 2015 (down 0.4%) due to the impact of currency appreciation, growth resumed and the 
economy has since posted modest quarterly growth rates. The economic expansion in 2014 -15 
                                                
7 The only account holders that are exempt from negative interest rates are those of the central Federal 
Administration and the compensation funds for old age and survivors ' insurance, disability insurance and the 
fund for loss of earned income (AHV/AVS; IV/AI; EO/APG) . 
8 The SNB profits on Swiss franc positions coming from negative interest charged on sight deposit 
account balances since January 2015 amounted to SwF 1,163.9 mil lion in 2015 and SwF 1.1 billion (first three 
quarters of 2016).  SNB online information. Viewed at:  
http://www.snb.ch/en/mmr/reference/pre_20161031/source/pre_20161031 .en.pdf ; and  
http://www.snb.ch/en/mmr/reference/pre_20160304/source/pre_20160304.en.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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was carried mainly by domestic demand, as very low interest rates have encouraged private 
consumption, and construction. In gener al, the traditional export industries, such as the machinery 
industry, have suffered from the strong franc and weak external demand, while more domestically  
oriented sectors have fared better and benefited from the demand created by population growth 
(immi gration).  
1.11.   In the period under review, inflation (measured by the Swiss consumer price index) was 
negative, i.e. below the SNB's definition of price stability. The negative rate of inflation was mainly 
attributable to declining oil prices and lower import prices due to the appreciation of the Swiss 
franc. In response to rapidly rising mortgage lending in recent years and the risk of a bubble in the 
real estate market, the SNB has adjusted, inter alia , the minimum capital buffers of banks, in 
order to safegu ard the stability of the financial system. Since 2015, the construction sector  has 
shown signs of cooling after a long period of strong growth; quarterly building activity has 
remained more or less stable.  
1.12.   The industrial sector has maintained its share of  about 18 -19% of GDP (Table 1.1). Key 
sectors in terms of output, employment and exports are the chemical and pharmaceutical 
industries; the machine, electronics and metal industries; and the watch -making industry.  
Switzerland does not have an industrial p olicy. There are no specific incentive schemes for the 
manufacturing sector, with the exception of the export subsidy scheme for processed agricultural 
goods, such as chocolate (see Section 4.[ag]). Switzerland has a policy to support research and 
innovati on and improve framework conditions for all economic sectors but does not adhere to a 
policy of national champions.  
1.13.   Agriculture's contribution to GDP is marginal (less than 1%) and declining. The number of 
farms, most of them small family farms, decreased  to 54,000 in 2014 (4,000 less than in 2011). 
The performance of the agriculture sector has important fiscal consequences (in terms of 
transfers) and repercussions for the competitiveness of the food industry and tourism sector 
through its impact on restau rant prices and contribution to preserv ing a scenic countryside. The 
agriculture sector is sheltered from import competition through relatively high tariffs on sensitive 
agricultural products and direct payments.  Domestic prices of agricultural and food pr oducts 
remain high by international comparison (see Section 4.[ag]).9  
1.14.   Services contribute over 70% to GDP. Amongst the major service industries, the trade and 
tourism sectors were most affected by the economic slowdown following the discontinuation of the  
minimum exchange rate policy. After a number of negative quarters, the tourism industry 
recovered in the second quarter of 2016. Financial services (including insurance services) 
represent a large sector of the economy (about 10% of GDP), but the growth p erformance of 
banks has been below that of the rest of the economy since the global financial crisis. Banks  and 
insurers have faced a difficult environment due to low interest rates, high costs, declining 
commission and export revenues (when converted into  Swiss francs), and regulatory 
developments.  
Balance -of-payments  
 
1.15.   Notable features and developments in Switzerland's balance of payments include the 
following (Table 1.1):  
i. The current account is traditionally in surplus (SwF 71.9 billion in 2015, equivale nt to 
about 11% of GDP), but varies substantially from year to year (note the sharp drop 
in 2014). According to the IMF, the high and volatile surplus is partly due to special 
factors and activities, such as commodity trading, financial and insurance activ ities 
and net FDI earnings "that are highly affected by the operations of large 
multinationals, financial firms, and wealthy foreigners for whom Switzerland is a 
desirable destination to centralize income and assets – reflecting Switzerland's 
economic stab ility and tax competitiveness, among other factors  – but whose savings 
may not be fundamentally Swiss."10  
                                                
9 On aggregate, Swiss prices of basic agricultural products were a bout 90%  higher than world market 
prices  in 2015 , according to OECD estimates.  
10 IMF (2015).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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ii. Switzerland is an important commodity trading (merchanting) centre. Merchanting is 
an offshore business, whereby commodity traders based in Switzerlan d, particularly 
in the Geneva area, buy and sell commodities on the world markets (Chart  1.2). 
Merchanting trade has been a major driver of the current account surplus – reaching 
around SwF 25 billion of net revenues  in recent years (up from SwF 2 billion in 
2000).  
iii. Capital income is normally in surplus, given Switzerland's international investment 
position with an outward capital stock (FDI and portfolio investment) that is 
substantially larger than the inward capital stock (Section 1.3). However, income 
derived from direct investments is highly volatile, in part for reasons explained 
above.  
iv. The currency reserves have increased sharply since the global financial crisis. The 
accumulation of reserves was particularly large in 2010, 2012 and 2015 (up 
SwF 95 billion in 2015), reflecting the foreign currency purchases by the SNB to 
contain the SwF appreciation and defend the minimum exchange rate against the 
euro. The SNB's foreign currency reserves are invested mainly (over 70%) in foreign 
government bonds. No investments are made in mid -cap and large -cap international 
banks and bank -like institutions to avoid conflicts of interest; the equity portfolio is 
diversified but no investments are made in Swiss equities.11  
Chart 1.2 Merchanting trade, 2015  
Energy, 64%
Agricultural and forestry 
products, 7%Leather, rubber, plastics, 
chemicals, 
pharmaceuticals, 3%Machinery, equipment, 
electronics, vehicles, 2%Non-metallic mineral 
products, metals, 17%Other, 6%Chart 1.[CHE]  Merchanting, 2015
Source:  Swiss Balance of Payments and International Investment Position, 2015.SwF 24.8 
billion
 
Source:  Swiss Balance of Payments and International Investment Position, 2015.  
Fiscal performance  
 
1.16.   The Confederation aims at a balanced budget over the business cycle, which is underpinned 
by a constitutional fiscal rul e ("debt brake"), applied at the federal level since 2003.12 In the past 
years, the Confederation has run balanced budgets or posted small surpluses. The overall public 
finances (including the cantons and municipalities) have also remained in a healthy posi tion. 
Almost all cantons have their own fiscal rules. As a result of the fiscal rules and budget surpluses, 
the total public debt (including cantons, municipalities and social insurances) was reduced to SwF 
220 billion at the end of 2015 (down from SwF 221  billion in 2008), equivalent to a comparatively 
moderate level of roughly 34% of GDP (Table 1.1). The Cantons have been confronted with slightly 
increasing debt ratios in recent years. The Confederation is currently able to finance itself at zero 
or negat ive interest rates on short -term and long -term loans.13 The IMF noted in 2016 that 
"Switzerland has ample fiscal space to respond to a prolonged recession with discretionary fiscal 
                                                
11 The large increase  in SNB's foreign currency investments has led to a debate about establishing a 
sovereign wealth fund to manage the investments. SNB (2016), Annual Rep ort 2015 . 
12 The debt brake rule requires a balanced budget over the period of a business cycle.  
13 The yields of Swiss sovereign bonds in 2015 were the lowest in the world. IMF (2015).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 19 - 
 
stimulus in order to support growth and inflation. This could also avoid ove rburdening of monetary 
policy".14  
1.17.   The tax -to-GDP ratio at the general government level has been relatively stable at around 
27-28%, with the cantons' shares higher than the Confederation's share (Table 1.1). The Swiss tax 
system is federally organi zed, wit h the Confederation, the cantons, the municipalities and the 
social security funds levying their own taxes (Section 2 .3.2). The Confederation's main sources of 
revenue are consumption taxes (VAT on goods and services, mineral oil tax, and tobacco tax), 
followed by federal taxes on income and profits (Chart  1.3). The revenues of import duties are on 
a declining trend because of Switzerland's expanding network of FTAs. Import duty collections 
amounted to SwF 1,056 million in 201 5, of which SwF  730 million cam e from trade with the EU 
(77% of these SwF 730 million were import duties on agricultural products).15 
1.18.   The appreciation of the Swiss franc following the discontinuation of the minimum exchange 
rate has left traces in the government finances. The projected t ax revenues beyond 2015 had to 
be corrected downward s as a consequence of the economic slow -down and lower inflation, 
affecting notably the (price -related) VAT, the direct federal tax, and mineral oil tax collections. Due 
to the currency appreciation, the projected income tax revenues from repatriated profits by 
Switzerland -based companies also had to be adjusted downwards. In these circumstances, the 
Government presented a "stabilization programme 2017 -19" to the Swiss parliament in May 2016, 
which include s a package of fiscal consolidation measures in the federal budget, amounting to 
savings of approximately SwF 800 million to SwF 1 billion annually over the three -year period. A 
decision on the stabilization programme is pending.  
Chart 1.3 Federal budget revenues, 2015  
(SwF billion and % of total revenues)  
VAT on 
domestic goods & 
services
(12.4 bn, 18.4%)
VAT on imports
(10.0 bn, 14.9%)
Import duties
(1.1 bn, 1.5%)Direct federal tax
(20.1 bn, 29.8%)Withholding tax
(6.6 bn, 9.8%)Stamp duty
(2.4 bn, 3.5%)Tobacco duty
(2.2 bn, 3.3%)Mineral oil tax
(4.7 bn, 7.0%)Charges on 
heavy traffic
(1.5 bn, 2.2%)Other tax receipts
(2.2 bn, 3.2%)Non -tax revenue
(4.4 bn, 6.5%)Chart 3. [CHE -LIE] Federal budget revenues, 2015
(SwF billion and % of total revenues)
Federal Finance Administration FFA, State financial statements, Report on federal financial statements, 2015. Source:Federal budget revenues
SwF 67.6 billion
 
Source:  Federal Customs Administration (FCA). 
Structural measures  
 
1.19.   Switzerland is facing a number of competitiveness issues, notably low productivity growt h 
and high prices.  
1.20.   As noted above, economic growth in Switzerland has been largely driven by domestic 
demand, as low interest rates and positive population growth16 have stimulated consumption. On 
                                                
14 IMF (2016).  
15 Federal Customs Administration online information. View ed at: www.swiss -impex.admin.ch . 
16 Swiss population growth has exceeded 1% per annum since 2007, mainly due to positive net 
immigration (7 1,500 in 2015, down 9.4% on 2014). State Secretariat for Migration online information. Viewed 
at: https://www.sem.admin.ch/sem/fr/home/aktuell/news/2016/2016 -01-280.html [29 September 2016].  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 20 - 
 
the other hand, the Swiss real per  capita income has increa sed only modestly in recent years (up 
0.2% on average during  2008-13), mainly owing to an increase in labour participation rates rather 
than productivity. Productivity growth has been virtually stagnant since 2007.17 Some of the 
factors underlying the weak productivity performance include  a growing share of domestically -  
oriented and state -related activities (e.g. health and government services), a decline in the capital 
intensity of the economy, and the poor performance of the banking industry.  
1.21.   Swiss econ omic policy is underpinned by growth plans with the aim to enhance productivity 
and improve competitiveness. The third growth plan (Growth Policy 2012 -2015) comprised a 
package of 13 measures or (reform) objectives, including the adoption of a new Agricult ural Policy 
2014-17 to facilitate structural adjustment within the  agricultural sector (Section 4.1 ); cor porate 
tax reform (Section 3.3.1.1 ); and the promotion of e -government and a reduction in regulation. 
Some objectives, such as the conclusion of a trad e agreement on electricity with the EU, could not 
be realized. Some uncertainty currently surrounds the future economic relations with the EU, as 
Switzerland has been reviewing its policies on the free movement of labour (immigration).  
1.22.   In June 2016, the G overnment presented its "New Growth Policy 2016 -2019" which consists 
of a package of 14 new productivity -enhancing measures.18 While the focus of the reform package 
lies in enhancing productivity, some of the reforms aim to strengthen the resilience of the 
economy (e.g. enhanced "too-big-to-fail" regulation) and reduce negative externalities of economic 
growth (e.g. climate and energy policy). The Government considers that without further reforms 
Switzerland risks moving further towards a dual economy – with a competitive export sector, on 
the one hand, and an expensive domestic sector with low competition intensity, on the other 
hand.19  
1.23.   One of the central elements of the New Growth Policy is the further opening of the economy 
to imports. Switzerland is a "hi gh-price island" within Europe. The Swiss price level is estimated to 
be about 45% higher than in the EU (EU -15) – about 25% higher for goods and 60% higher for 
services, which tend to be less tradeable.20 Reasons include remaining trade barriers (for insta nce, 
tariffs on agriculture products but also several technical trade barriers), the higher purchasing 
power and lower price sensitivity of Swiss consumers. The Government has submitted a report on 
barriers to parallel imports, which addresses the persiste ntly high input costs and output prices in 
Switzerland and relates these high prices with trade barriers and room for price discrimination. It 
will consider the costs and benefits of an autonomous elimination of MFN tariffs on industrial 
products (averagin g 2.3% in 2016, see Table 3.3 ), following the example of other countries, such 
as Canada, Iceland or Norway.21 At the request of the Swiss textile industry, MFN tariffs on textiles 
(60 tariff lines) were suspended from 1 January 2016 for a period of four ye ars (Section  3.1.4.1).  
1.24.   Furthermore, a number of options were identified to facilitate imports, including a reduction 
of nuisance duties; autonomous (selective) reduction of the high border protection and tariff 
escalation for agricultural products (averag ing 30.8%); and a review of the exceptions to the 
"Cassis de Dijon " principle, as well as the special treatment of food products, which  reduce the 
effectiveness of the instrument (Section 3. 3.3). Trade facilitation measures already decided by the 
Governmen t include the establishment of a new web portal for customs formalities (to replace e -
dec); opening of the "trusted partner" status to SMEs; and making the choice of customs entry 
points more flexible (Section 3. 3.1). Private -sector restraints on parallel imports are covered in the 
section on competition policy (Section 3. 3.6).  
                                                
17 SECO online information. Viewed at: 
https:/ /www.seco.admin.ch/seco/fr/home/Publikationen_Dienstleistungen/Publikationen_und_Formulare/Strukt
urwandel_Wachstum/Wachstum/Grundlagen_Neue_Wachstumspolitik.html . 
18 The measures are: i) preservation and development of bilateral agreements with the EU; ii)  improved 
market access for Swiss enterprises; iii) digital economy; iv) liberalization of the electricity market and 
regulation of the gas market; v) reduction of administrative impediments and better regulation of enterprises; 
vi) enhancing domestic comp etition through facilitation of imports; vii) development of the agricultural policy 
(2022 -25); viii) regulation in the area of "too -big-to-fail"; ix) fiscal stabilization programme 2017 -19; x) review 
of fiscal incentives raising private indebtedness; xi) energy strategy 2050; xii) climate change regulation after 
2020; xiii) better regulation of the housing market; xiv) more efficient use of the transport infrastructure.  
19 Federal Council (2016).  
20 Based on the comparative price indices by Eurostat for co nsumer spending of private h ouseholds in 
2014. SECO (2016a).  
21 WTO (2011).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Liechtenstein  
 
1.25.   The economy of Liechtenstein is small with a GDP of just over SwF 5 billion, a population of 
37,622 , a workforce of 38,755 in 2017, and about 4,300  enterprises. A dis tinctive feature of the 
economy is the large number of inward cross -border commuters (54% of Liechtenstein's workforce 
in 2015), mainly living in Switzerland and Austria.22 GDP grew by 2.1% in 2013 and about 3% in 
2014 (Table 1.2).23 
1.26.   The manufacturing sector  is the largest sector of the economy, contributing about 40% to 
GDP in 2015. There are about 600 enterprises that operate mainly in market niches such as 
professional entertainment connector products (Neutrik AG). The main industries are automotive 
compon ents (ThyssenKrupp Presta AG – the largest employer of Liechtenstein), mechanical 
engineering and electrical machinery (Hilti AG), dental technology (Ivoclar Vivadent AG), and food 
products (Hilcona AG).  
1.27.   Services contribute about 52% of GDP and there are about 3,800 services enterprises. 
Liechtenstein's financial services industry – the third -largest sector of the economy after general 
services with about 24% of GDP – is specialized in private banking, wealth management, and 
funds, trustee and insurance se rvices. Total (global) assets under management by Liechtenstein 
banks have continued to increase to SwF  210 billion in 2015 (up from SwF 172 billion in 2009), 
including an increase of assets under management in the domestic banking system from 
SwF 118.3 bi llion in 2009 to 130.5 billion in 2015 (Box 4.6).  
1.28.   The period since the last TPR in 2013 has been  marked by a consolidation of the state 
budget, as Liechtenstein continues its policy of zero external debt.24 Following several years of 
rising deficits (2010 -13), three fiscal stabilization packages were implemented, involving savings 
of about SwF  162 million in the areas of personnel, material costs, and financial contributions, and 
increased revenues of SwF 59 million. Income taxes are the main source of gover nment revenues 
(totalling SwF 228 million from companies and SwF 227 million from natural persons in 2015). 
Liechtenstein applies a corporate income tax of 12.5%. The State budget posted a surplus in 2014 
and 2015. The proposed budget for 2016 -19 aims at a  balanced budget without further savings 
measures. The sustainability of the social security balances has been strengthened by the recent 
reform of the retirement scheme (AHV). In October 2015, Liechtenstein Post AG, which is majority 
state-owned by Liecht enstein, was recapitalized due to financial difficulties.  
Table 1.2 Liechtenstein – Selected macroeconomic indicators, 2012 -15 
  2012  2013  2014  2015  
GDP at market prices (SwF million)a 5,116  5,925  6,105  .. 
GDP at market prices (US$ million)a, b 5,456  6,392  6,672  .. 
Real GDP (%age change)  -0.1 2.1 3.0 .. 
GNI per inhabitant at current prices (SwF)  97,410  108,830  .. .. 
Population ('000)  36.8 37.1 37.4 37.6 
GDP by industry (% of GDP at basic prices)      
     Industry and manufacturing  38.6 40.7 41.0 .. 
     General services  28.9 27.3 26.8 .. 
     Financial services  24.0 25.1 25.2 .. 
     Agriculture and households  8.6 7.0 7.0 .. 
.. Not available.  
a Provisional data for 2014.  
b Swiss/US$ exchange rate w as applied.  
Source:  Statistical information provided by the authorities of Liechtenstein; Volkswirtschaftliche 
Gesamtrechnung 2014  (National Accounts 2014). Viewed at: 
http://www.llv.li/files/as/volkswirtschaftliche -gesamtrechnung -2014.pdf  [January 2017]; and 
Liechtenstein in Figures 2017 . Viewed at: http://www.llv.li/files/as/fliz -englisch -2017.pdf  
[Janua ry 2017].  
                                                
22 Liechtenstein has one of the highest per  capita incomes in the world (avera ging over US$150,000) 
(Table 1.2 ). Since the GDP is generated by the entire workforce, country compariso ns of GDP per capita may in 
the case of Liechtenstein lead to misleading conclusions.   
23 As Liechtenstein estimates its GDP based on tax declarations, results for a given year are only 
available two years thereafter.  
24 The accumulated fiscal reserves amoun ted to about SwF 1.4 billion in 2015, equivalent to 
approximately two years of spending.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.29.   Switzerland's merchandise trade recovered quickly following the global financial crisis in 
2008-09. Exports increased by 7.2% in 2010 ; in 2009 they fell by  12.5%. From 2011 until 2013, 
however, with the sluggish growth of world trade, the growth in Swiss exports began to slow. This 
was followed in 2014 by a 3.6% increase in exports to SwF 208 billion (exceeding the record of 
2008), but in 2015 exports declin ed again (down 2.6%), reflecting the appreciation of the Swiss 
franc against the euro (Table A1.1). As an indication of the exchange rate sensitivity of Swiss 
exports, the Swiss franc appreciated by 8.7% against the currencies of Switzerland's main trading  
partners in 2015, and exports declined by 2.6%; the depreciation of  the Swiss franc against the 
U.S. dollar went along with an increase in exports to North America (Table  1.3). Since mid -2015, 
Swiss merchandise exports have appear ed to show signs of a rec overy, signalling that the Swiss 
economy may have started to adjust to the exchange rate shock against the euro, but the trend 
differs from industry to industry (for trade in agricultural products, see Section 4.1).  
Table 1.3 Swiss exports and the external value of the Swiss franc  
Continents  Annual change from 2014 to 2015, in %  
 SwF valuea Exports  
Europe  +13.0  -5.0 
Asia +0.9 -0.1 
North America  -3.7 +5.4 
Total +8.7 -2.6 
a Based on the exchange rate inde x of the Swiss franc weighted by export. This index measures the 
external value of the Swiss franc against the currencies of the major trading partners of Switzerland. 
A rise in the index indicates an appreciation of the Swiss franc.  
Source:  Federal Custo ms Administration, " Rapport annuel : Commerce extérieur suisse 2015".  Viewed at: 
http://www.ezv.admin.ch/themen/04096/04101/04125/index.html?lang=fr . 
1.30.   The chemical  and pharm aceutical industry is the largest export industry and accounted for 
approximately SwF 85 billion , or over 40% of total goods exports , in 2015 (Table A1.1). The 
industry has been the main driver of Swiss merchandise exports, while the exports from the rest of 
the economy have been declining since 2011 (in volume terms). Exports of chemical and 
pharmaceutical products continued to surge in 2016. One of the main factors contributing to the 
industry's export performance is its strong integration into global val ue chains to maximi ze 
economies of scale and improve competitiveness. Industry sources estimate that over three -
quarters of Swiss chemical and pharmaceutical products are deliveries to foreign subsidiaries.25  
1.31.   The machine  and electronics industry and the metal indust ry have been particularly affected 
by the strong Swiss franc in recent years, with export revenues still significantly below the levels 
observed prior to  the global financial crisis. Machine -electronics exports fell to SwF 31.1 billion in 
2015 (d own 6.9% on 2014), with a decline in exports to the main markets (EU and China), while 
exports to the U.S. increased by 6%.  
1.32.   The watch industry generated impressive export growth in recent years (up 22% in 2010, 
up 19% in 2011 , and up 11% in 2012), but sinc e mid -2014 exports have been declining, for 
reasons including the strong Swiss franc; and cooling demand in key Asian markets (Hong Kong, 
China; China; and Japan). Watch exports declined to SwF 21.5 billion in 2015 (down 3.2% on 
2014).  
1.33.   Switzerland's total  merchandise imports increased marginally in 2013 and 2014, but 
dropped by 6.8% to SwF 166.4 billion in 2015, reflecting a decline in import prices (Chart 1.4 and 
Table  A1.3). In real terms, imports were virtually unchanged in 2015. About half of Swiss imp orts 
are consumer goods (48.1% in 2015); the remainder are capital goods (24.3%) , raw materials 
and semi -manufactures (22.5%) , and energy (5.1%). The energy import bill declined by 30% to 
SwF 8.4 billion in 2015.  
                                                
25 SECO (2016b).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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1.34.   European countries, and especially euro zon e countries, remain Switzerland's  most 
important export and import markets. The United Kingdom was Switzerland's fifth -largest trading 
partners for exports in 2015 (5.8% of total exports) and eighth -largest for imports (3.9% of total 
imports). Some of the main shifts in the direction of trade include a significant increase of exports 
to the United States and China. Switzerland's export surplus to the United States has increased 
markedly in recent years, owing mainly to the rise in exports of pharmaceutical -chemical products, 
which account for about half of Swiss exports to the United States. On the import side, imports 
from China reached SwF 12.3 billion in 2015 (up 50% since 2010) , increasing its  share in total 
merchandise imports to 7.4% (up from 5.8% in 2 012).  
1.35.   Liechtenstein traditionally runs a surplus in direct merchandise trade, which excludes trade 
with Switzerland. It does not reflect Liechtenstein imports, such as automobiles, that are imported 
indirectly from third countries via Switzerland. Liechte nstein's direct exports and direct imports in 
2014 reached SwF 3.45 billion and SwF 2.04 billion, respectively (Table A1.5). Liechtenstein's main 
sources and destinations of trade are Switzerland, Germany, and the United States.  
1.36.   Switzerland is traditional ly a net  exporter of services, but its services surplus continued to 
decline during the review period (Table A1.6). Since the global financial crisis, exports of services 
have fluctuated around a level of just over SwF 100 billion annually, while services imports show a 
long-term rising trend. Financial services remain the leading export sector, although exports have 
declined steadily since 2007, reflecting the above -mentioned factors. The share of financial 
services in total services exports decreased from  about 34% in 2007 to 18.3% in 2015.  
1.37.   Business services account for the largest share of Switzerland's services imports. The main 
reason for increasing services imports have been  an increase in  business services and imports of 
patents and licences. Service s imports have also been underpinned by rising tourism imports, i.e. 
increased foreign travel by Swiss residents benefiting from a strong Swiss franc.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Chart 1.4 Composition of merchandise trade, 2012 and 2015  
Chart 1.[Prd]
Composition of merchandise trade, 2012 and 2015
2012 2015
(a)    Exports  (f.o.b.)
Metals
5.9%Vehicles
2.5%
Metals
5.8%Vehicles
2.9%Energy source
1.3%
Precision 
instruments 
and 
equipment
7.1%Chemical and 
pharmaceutical 
products
41.7%Other
7.1%Food, beverages 
and tobacco
4.0%
Industry 
machinery
9.2%Watches
10.6%
Electronic 
industry 
appliances and 
devices
5.0%Jewellery
5.3%
Total:  SwF 200.6 billion Total:  SwF 202.9 billion  
(b)    Imports (c.i.f.)
Machines and 
appliances
17.6%Vehicles
6.6%
Timepieces, 
jewellery and 
optical goods
5.9%Raw materials 
0.9%
Personal care 
products, 
cosmetics, 
pharmaceutical 
products
17.3%Consumer 
goods
44.2%
Capital goods
22.7%Semi-finished and 
intermediate 
products
22.2%
Commercial 
vehicles
2.8%Food, beverages 
and tobacco
4.3%Other
6.5%Clothing and shoes & 
bed and other 
household linen
3.8%
Machines and 
appliances
18.8%Vehicles
6.8%
Timepieces, 
jewellery and 
optical goods
7.3%Raw materials 
0.9%
Personal care 
products, cosmetics, 
pharmaceutical 
products
18.6%Consumer 
goods
48.1%
Capital goods
24.3%Semi-finished 
and 
intermediate 
products
21.6%
Commercial 
vehicles
3.0%Food, 
beverages 
and tobacco
4.6%Other
6.6%Clothing and 
shoes & bed and 
other household 
linen
4.2%
Building 
requisites 
goods
2.4%Energy 
sources
5.1%
Total:   SwF 176.8 billion Total:  SwF 166.4 billion %
Building 
requisites 
goods
2.3%Energy source
3.4%
Precision 
instruments and 
equipment
7.1%
WTO Secretariat calculations, based on Swiss -Impex database of the Swiss Federal Customs 
Administration.Energy 
sources
9.9%Chemical and 
pharmaceutical 
products
39.4%Other
7.9%Food, beverages 
and tobacco
3.8%
Industry 
machinery
9.8%Watches
10.7%
Electronic industry 
appliances and 
devices
5.7%Jewellery
3.8%
Source:   
 
Source:  WTO Secretariat calculations, based on the Swiss -Impex database of the Swiss Federal Customs 
Administration.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 25 - 
 
Chart 1.5 Direction of merchandise trade, 2012 and 2015  
Chart 1.[Reg]
Direction of merchandise trade, 2012 and 2015
2012 2015
(a)    Exports (f.o.b.)
Americas 
18.4%
Other Europe
1.5%Europe
55.2%
EU-28
53.7%Asia 
18.3%Other Asia 
7.9%
Japan 3.1%
CIS 1.5%United States
13.5%
Other America
4.9%
Africa 1.6%Middle East 
5.0%Hong Kong, 
China 2.8%
China 4.4%
Total:  SwF 200.6 billion Total:  SwF 200.9 billion
(b)    Imports (c.i.f.)
Europe  
76.9%
EU-28
76.0%Americas 
7.1%Other Europe
0.9%China 5.8%Other Asia
4.9%United States 5.2%
Other America1.9%
Japan 2.2%Other
3.1%
Americas 
9.0%
EU-28
72.4%Other 
Europe
1.1%China 7.4%Japan 1.9%United States 7.0%
Other America 2.0%
Europe  
73.5%Other Asia 5.9%Other
2.3%
Asia
15.2%
Total:   SwF 176.8 billion Total:   SwF 166.4 billionAmericas 
15.9%
Other Europe
1.6%
Asia
12.9%Europe
57.2%China 3.7%
EU-28
55.6%Asia 
18.9%Other Asia 
8.3%
Japan 3.4%
CIS 2.1%United States
11.1%
Other America
4.8%
Africa 1.7%Middle East 
4.3%Hong Kong, 
China 3.5%
WTO Secretariat calculations, based on Swiss -Impex database of the Swiss Federal 
Customs Administration.Source:  
 
Source:  WTO Secretariat calcula tions, based on the Swiss -Impex database of the Swiss Federal Customs 
Administration.  
1.3.2   Trends and Patterns in FDI  
1.38.   According to UNCTAD, Switzerland ranks among the top destinations for foreign direct 
investment (inward FDI) and as a source of outward FDI (me asured in terms of capital stock).26 
Numerous large multi -nationals have their headquarters in Switzerland and it is also an attractive 
location for foreign -controlled holding companies.27 Finance and holding companies account for 
well over half of the inwar d FDI stock (SwF 409 billion in 2014). The year -to-year volatility of 
                                                
26 UNCTAD (2016).  
27 SNB (2015).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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Switzerland's FDI flows is in part due to financial restructuring of finance and holding companies 
and their foreign subsidiaries, for reasons explained by the IMF above (Section 1.2).28 Swiss data 
on FDI collected by the SNB also include Liechtenstein; separate data are not available.  
1.39.   Switzerland's flows of direct investment abroad declined from 2011 -14, before a major 
rebound followed in 2015 in line with a global recovery in FDI, accor ding to UNCTAD. In 2013, 
outward FDI flows declined to 35.7 billion (Table A1.7). Equity investment (including re -invested 
earnings) by Switzerland -based banks and insurers in their foreign subsidiaries accounted for the 
largest share of the FDI flows in 2 013 (SwF 18 billion). The main destinations were the EU 
(SwF 11.7 billion) and Asia (SwF  11 billion). In 2014, Swiss FDI flows turned negative, driven by 
disinvestment abroad notably by the trade and banking sectors. The industrial sector, on the other 
hand, increased its outward FDI to SwF 26 billion. Asia was the main FDI destination with 
SwF 10 billion in 2014. The capital stock abroad declined in 2013, mainly due to financial 
operations by foreign -controlled finance and holding companies that are unrela ted to actual 
operations. In 2015, Switzerland's FDI surged to SwF 70.3 billion (according to UNCTAD data), 
which was one of the largest increases worldwide.  
1.40.   Inward FDI decreased from SwF 15 billion in 2012 to SwF 0.6 billion in 2013, mainly due to 
capita l withdrawals from finance and holding companies, and banks. In 2014, inward investment 
flows increased to SwF 6.1 billion, largely due to investments in finance and holding companies, 
and in banks.  
                                                
28 Swiss data on FDI collected by the SNB also include Liechtenstein; separate data are not available . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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 2  TRADE AND INVESTMENT  REGIME  
2.1  General Framework  
2.1.  The Swiss  Confederation is a federal State comprising 26 cantons, according to the Federal 
Constitution of 18 April 1999. About 2,300  local authorities (communes) form the third political 
administrative level. The principle of subsidiarity applies (Article 5), thus  matters are dealt with at 
the lowest political level possible. The Federal Constitution assigns exclusive responsibility for 
certain tasks to the Confederation, including foreign and security policy, customs and monetary 
matters, legislation applicable na tionally, and defence. Subjects not expressly designated as 
federal matters are the responsibility of the cantons. The cantons thus exercise considerable 
autonomy in several areas, including taxation, health, education and cultural policies.  
2.2.  At the federa l level, legislative power is vested in the bicameral Federal Assembly, comprising 
a National Council and a Council of States. The 200 members of the National Council are elected 
for four -year terms by proportional representation (according to the number o f inhabitants in each 
canton) in a nationwide popular vote. The 46 councillors of the Council of States are elected at the 
cantonal level and represent their respective cantons.1 Decisions of the Federal Assembly must be 
accepted by both chambers to be ado pted. The Federal Assembly appoints the judges of the 
Federal Court (Supreme Court). At the cantonal level, most legislatures are unicameral 
parliaments of varying sizes. Two cantons have retained the practice of general popular assemblies 
(Landsgemeinde ).  
2.3.  The system of direct democracy is deeply rooted in Swiss political culture. The first Federal 
Constitution of the Swiss Confederation was approved by referendum in 1848. The Federal 
Constitution requires amendments thereto, accession to organizations for  collective security or to 
supranational communities, and certain emergency acts to be approved by referendum 
(mandatory referendum). Several other matters, including federal laws, federal decrees and 
international treaties, are subject to optional referen dum. A trade agreement may be subject to 
optional referendum depending on its content.2 Popular initiatives for a full or partial revision of 
the Federal Constitution may be called by the collection of a minimum of 100,000 signatures of 
eligible voters wit hin an 18 -month period. Items subject to optional referendum may be challenged 
within 100 days of their publication by a minimum of 50,000 eligible voters, or a referendum may 
be requested by at least eight cantons. A double majority is required for matter s subject to 
mandatory referendum; for all other items, the majority of the votes cast is sufficient.3 Nationwide 
referendums are organized regularly, typically two to four times per year, and normally with more 
than one item up for vote each time.4 A popu lar initiative may, in principle, be organized by any 
Swiss citizen eligible to vote. In practice, initiatives are tabled by ad hoc committees supported by 
social groups with (or against) recommendations of the political parties.  
2.4.  Federal executive power i s vested in the seven -member Federal Council, assisted by the 
Federal Chancellery. The members of the Federal Council and the Federal Chancellor are appointed 
by the Federal Assembly after each general election. The Federal Council reaches its decisions as  a 
collegial body5, based on a tradition of consensus. The Federal Assembly elects the President and 
Vice-President of the Confederation annually from among the seven federal councillors.6  
2.5.  Within the Federal Department for Economic Affairs (FDEA), the Sta te Secretariat for 
Economic Affairs (SECO) is the main agency dealing with economic policy issues. SECO's 
responsibilities include the formulation and implementation of trade policy, and representation in 
multilateral institutions such as the WTO. Its resp onsibilities are derived from various laws and 
regulations (Table 2.1). Domestically, SECO acts as an interface between business, trade unions, 
                                                
1 Each canton elec ts two councillors, except the six half -cantons (Appenzell Inner Rhodes, Appenzell 
Outer Rhodes, Basel -City, Basel -County, Nidwalden, and Obwalden), which elect one councillor each.  
2 Article 141.1(d) of the Federal Constitution stipulates, inter alia , that international agreements 
containing important legal norms or requiring federal implementing legislation are subject to optional 
referendum.  
3 The double majority requirement stipulates approval by the majority of voters nationwide as well as 
voter majo rities in at least 12 cantons. The results in the six half -cantons each count as a 0.5 -vote in the 
cantonal outcome.  
4 Voters may also be invited to decide on cantonal and communal matters in local referendums.  
5 Article 177 of the Federal Constitution.  
6 The positions rotate annually between the members of the Federal Council.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  NGOs and government. SECO's portfolio includes economic development cooperation by means of 
its trade -related te chnical assistance activities. Some of SECO's activities have been delegated, for 
instance, import and export promotion and inward investment (to Switzerland Global Enterprise 
(S-GE)) and the management of SECO's investments in developing and transition ec onomies (to 
the Swiss Investment Fund for Emerging Markets). Switzerland's relationship with the European 
Union is coordinated by the Directorate for European Affairs (DEA) within the Federal Department 
of Foreign Affairs (FDFA).7  
Table 2.1 Main trade -related laws and regulations, 2016  
Legislation  Entry into force/  
latest amendment  Reference  
Switzerland  
Federal laws on intellectual property and protection of 
data, 1931 -2001a 1932-2002/2016  Laws in the series  RS 23 
Ordinances on animal husbandry, 1984 -2011a 1985-2012/2015  Ordinances in the series 
RS 916.3  
Federal Law on Government Procurement of 16  December 
1994a 1 January 1996/2015  RS 172.056.1  
Federal Law against Unfair Competition of 
19 December  1986 1 March 1988/2016  RS 241  
Federal Law on Cartels and Other Impediments to 
Competition of 6  October 1995  1 February 1996/2014  RS 251  
Federal Law on the Protection of Animals of 16  December 
2005a 1 September 
2008/2014  RS 455  
Federal Law on War Material of 13  December 1996a 1 April 1998/2009  RS 514.51  
Federal Law on National Economic Supply  of 
8 October  1982a 1 September 
1983/2007  RS 531  
Customs Law of 18 March 2005a 1 May 2007/2011  RS 631.0  
Federal Law on Customs Tariffs of 9 October 1986a 1 January 1988/ 2013 RS 632.10  
Federal Law on Stamp Duty of 27 June 1973a 1 July 1974/2015  RS 641.10  
Federal Law Regulating Value -Added Tax of 
12 June 2009a 1 January 2010/2015  RS 641.20  
Federal laws on taxation of tobacco, beer, alcohol, motor 
vehicles, and mineral oi ls, 1932 -2006a 1933-2007/2016  RS 641.31; 641.411; 
680; 641.51; and 641.61  
Federal Law on Medicinal Products and Medical Devices of 
15 December 2000a 1 January 2002/2013  RS 812.21  
Federal Law on Protection against Hazardous Substances 
and Preparations of 15 December 2000a 1 January 2005/2014  RS 813.1  
Federal Law on Agriculture of 29 April 1998a 1 January 1999/2013  RS 910.1  
General Ordinance on Imports of Agricultural Products of 
26 October 2011a 1 January 2012/2016  RS 916.01  
Law on Price Surveillance of  20 December 1985  1 July 1986/2005  RS 942.20  
Federal Law on the Internal Market of 6 October 1995  1 July 1996/2005  RS 943.02  
Federal Law on Consumer Information of 5 October 1990  1 May 1992/2000  RS 944.0  
Federal Law on Swiss Insurance against Export Ri sks of 
16 December  2005 1 June 2006/2014  RS 946.10  
Federal Law on Export Promotion of 6 October 2000  1 March 2001/2005  RS 946.14  
Federal Law on External Economic Measures of 
25 June 1982a 1 January 1983/2005  RS 946.201  
Federal Law on the Application of  International Sanctions 
of 22 March  2002a 1 January 2003/2004  RS 946.231  
Ordinance on Attestation of the Non -Preferential Origin of 
Goods of 9  April 2008a 1 May 2008/2014  RS 946.31  
Federal Law on Technical Barriers to Trade of 
6 October  1995a 1 July 199 6/2009  RS 946.51  
Liechtenstein  
Law on Craft, Trade and Industry  1 January 2007/2015  LR 930.1  
Government Ordinance on Craft, Trade and Industry  15 June 2011/2012  LR 930.11  
Law on the Provision of Services  9 December 
2010/2014  LR 930.4  
Law on Payment S ervices  1 November 
2009/2016  LR 950.1  
E-Money Act  1 May 2011/2016  LR 950.3  
Law on undertakings for collective investment in 1 August 2011/2016  LR 951.31  
                                                
7 A joint (SECO -FDFA) Integration Office performed this task until the end of 2012.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Legislation  Entry into force/  
latest amendment  Reference  
transferable securities  
Laws on government procurement  1998-2014 Laws in the series 
LR 172.05  
Laws on intellectual property, including authors' rights, 
industrial property, and data protection  1957-2002/2016  Laws in the series LR 23  
Law against Unfair Competition  1 November 
1994/2016  LR 240  
Government Ordinance on Indication of Prices  24 Septembe r 1996/ 
1999 LR 240.12  
Law on Consumer Information  17 December 2002/ 
2015 LR 944  
Law concerning the Application of International Sanctions  1 March 2009  LR 946.21  
Law on the Revision of the Persons and Companies Act  1 April 2009/2015  LR 216.0  
Law on Na tional and Municipal Taxes  1 January 2011/2016  LR 640.0  
Government Ordinance on National and Municipal Taxes  1 January 2011/2016  LR 640.01  
Law on the Promotion of Liechtenstein as a Business and 
Tourism Location  1 January 2012  LR 935.20  
Law on Agricultu re 1 July 2009/2016  LR 910.0  
a Also applicable to Liechtenstein, due to the Customs Union Treaty.  
Source:  Federal Authorities of the Swiss Confederation online information, "Recueil systématique du droit 
fédéral" . Viewed at: http://www.admin.ch/ch/f/rs/rs.html ; and Liechtenstein authorities online 
information. Viewed at: http://www.gesetze.li . 
2.6.  The Constitution of the Principality of Liechtenstein (LR 101) of 5 Octobe r 1921 proclaims 
Liechtenstein a constitutional, hereditary monarchy (male line) on a democratic and parliamentary 
basis. The power of State is embodied in the Reigning Prince and the People and exercised by 
both. The Reigning Prince represents the State i n all its relations with foreign countries and 
sanctions all laws passed by the unicameral Parliament (Landtag). The Constitution grants him 
jurisdictional immunity. The Reigning Prince appoints the Government, comprised of the Prime 
Minister and four Mini sters, for four years on the proposal of the Parliament. The Reigning Prince 
may dismiss the Government or its members if they lose his confidence, but he must appoint an 
interim government immediately in such case.8  
2.7.  The Parliament comprises 25 representa tives elected for renewable four -year terms by 
universal adult suffrage under a system of proportional representation. 9 No law may be enacted, 
amended, or declared to be authentic without the participation of Parliament (Article 65 of the 
Constitution), an d no direct or indirect taxes or any other national dues or general levies may be 
imposed or collected without the approval of Parliament (Article 68). In order to become effective, 
a law must receive the assent of Parliament, be sanctioned by the Reigning  Prince, countersigned 
by the Prime Minister or the Deputy Prime Minister, and promulgated in the Liechtenstein Law 
Gazette.  
2.8.  Amendments to the Constitution (in whole or in part) and resolutions of Parliament 
concerning assent to an international treaty ma y be subject to popular vote if the request is 
backed by at least 1,500 Liechtenstein citizens eligible to vote or by a minimum of four 
municipalities. For laws and financial resolutions involving new, non -recurrent expenditure of at 
least SwF 500,000 (or new annual recurrent expenditure of SwF 250,000) the threshold for a 
referendum is 1,000 signatures (or the support of a minimum of three municipalities).10 
Participation in elections and referendums is compulsory.  
2.9.  Liechtenstein's state administration cons ists of 36 bodies (including offices and units), and all 
but two of them are under government control.11 The Office of Economic Affairs implements  
economic policy, and the Office for Foreign Affairs coordinates Liechtenstein's membership in 
                                                
8 The Constitution also grants a "reasoned motion of no -confidence against the Reigning Princ e" to be 
put to a popular vote if the motion is supported by not less than 1,500 Liechtenstein citizens.  
9 The Principality of Liechtenstein is a union of two regions (Upper and Lower Country) with eleven 
municipalities. The Upper Country (15 representati ves) and the Lower Country (10 representatives) each form 
a voting district. The capital Vaduz is the seat of Parliament and the Government.  
10 A referendum may not be called if a law or financial resolution is declared urgent.  
11 The Data Protection Offic e and the Financial Audit Office report to Parliament.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  international ag reements (such as the WTO Agreement and the EFTA Convention), including the 
administration of Liechtenstein's rights and obligations. The offices formulate policies in 
collaboration with other national offices or institutions, such as the Office for Agricu lture, and in 
consultation with the private sector. An EEA Coordination Unit is responsible for Liechtenstein's 
participation in the European Economic Area (EEA).  
2.10.   The 1923 Swiss -Liechtenstein Customs Union Treaty ties the two countries together with a 
common regime for goods and, following Liechtenstein's unilateral introduction of the Swiss franc 
in 1924, also a common currency.12 Switzerland acts on Liechtenstein's behalf in customs union 
matters, notably concerning trade policy measures affecting imports  and exports of goods, and 
agriculture. The EFTA Convention regulates the bilateral relationship in services, government  
procurement, consumer protection, investment, and certain intellectual property rights.  
2.2  Trade Policy Objectives  
2.11.   Key objectives for Swi tzerland's foreign economic policy are to strengthen Switzerland as a 
business location and support the positioning of Switzerland in a European and global context. A 
strong Swiss franc has become a regular feature making Switzerland a high cost location, and 
abrupt appreciation may accentuate this challenge. Consequently, achieving the best possible 
long-term environment for job creation and innovative activities requires an efficient 
infrastructure, a flexible labour market, lean administrative procedures , and the preservation of a 
stable political and macroeconomic climate.  
2.12.   Switzerland is a strong supporter of the WTO and advocates further liberalization of world 
trade. Switzerland has been an active participant in the Doha Development Agenda (DDA) 
negot iations and engages constructively in initiatives that may lead to further liberalization within 
the multilateral framework. However, Switzerland's multilateral approach is supplemented by an 
extensive preferential network to avoid discrimination against S wiss exporters in important 
markets. Relying on foreign trade to promote economic efficiency and job creation, Switzerland's 
relations with key trading partners, particularly the European Union and the United States, 
continue to be essential for the Swiss economy. The Swiss Government has examined the possible 
effects of a comprehensive free trade agreement with the EU as an alternative to the traditional 
bilateral approach, and dismissed the FTA as an option, since it is likely to provide less market 
acces s while offering no significant improvement in the regulatory autonomy of Switzerland.  
2.13.   The share of Switzerland's imports and exports subject to most favoured nation treatment is 
low (less than 20%) due to the dominance (albeit declining) of the EU in Swi ss foreign trade, but 
also as a consequence of Switzerland's comprehensive network of FTAs with non -EU partners. Most 
of these agreements have been concluded within the framework of the European Free Trade 
Association (EFTA), supplemented by important bila teral FTAs with Japan and China. Switzerland 
views the expansion of its FTA network to additional emerging markets positively, but recognizes 
that diverging economic interests complicate such negotiations.13  
2.14.   Switzerland's Government is committed to impleme nting a foreign trade policy that 
facilitates sustainable economic growth in Switzerland as well as among its partners. Although the 
traditional aim is to improve market access for Swiss enterprises worldwide and to protect their 
investments abroad, the br oader target is to create a win -win situation for all that includes the 
consideration of non -economic factors such as ecological and social aspects. Within the 2030 
Agenda for Sustainable Development, approved at the UN Summit on 25 September 2015, 
Switzer land is working with its development partners, including international organizations, to 
support the Agenda's development goals and detailed targets.  
2.15.   Liechtenstein broadly shares the trade policy of Switzerland due to their close economic 
integration and t hrough their membership in EFTA. Its trade policy objectives are set according to 
                                                
12 The two countries formalized their common currency arrangement in a Currency Treaty of 
19 June 1980.  
13 For example, while Switzerland would like new FTAs to facilitate exports of industrial goods a nd 
certain services (e.g. financial services and logistical services), strengthen the protection of intellectual 
property, liberalize government procurement, and focus on sustainable development (e.g. environmental and 
labour standards), some of its prospe ctive partners would like to focus on significantly improved market access 
for agricultural exports or the provision of services through expanded movement of labour.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  the country's trading environment, i.e. the Customs Union Treaty with Switzerland, and 
membership in EFTA, the EEA, and the WTO. As a country with a very small domestic marke t and 
a highly export -oriented economy, Liechtenstein seeks to ensure and extend non -discriminatory 
market access for its economic operators to the global markets. Liechtenstein's foreign economic 
policy assigns high priority to trade liberalization and th e further development of a strong, rules -
based international trading system.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.16.   Switzerland and Liechtenstein are original members of the World Trade Organization. They 
grant at least MFN treatment to all Members of the WTO, except those subject to economic 
sanctions. 14 Both countries are signatories to the plurilateral agreements on Trade in Civil Aircraft 
and Government Procurement and the Ministerial Declaration on Trade in Information Technology 
Products. Since 1 Janua ry 2017 and on a provisional basis, Switzerland and Liechtenstein have 
implemented the tariff reductions resulting from the expansion of the Information Technology 
Agreement (ITA II), agreed at the tenth Ministerial Conference in December 2015.15 According to 
the Swiss authorities, ITA II affects an estimated annual trade  volume of approximately 
SwF 30 billion (2012 -14 average figures) for Switzerland, of which SwF 7.2 billion concern Swiss 
imports and exports not covered by an FTA (or where FTA tariff reduc tions have not been fully 
implemented yet). Switzerland and Liechtenstein became the 14th and 17th Members of the WTO to 
formally accept the WTO Agreement on Trade Facilitation in September 2015. Following the 
agreement to eliminate agricultural export sub sidies among WTO Members reached in Nairobi, 
Switzerland will phase out export subsidies on processed agricultural products by the end of 2020. 
Liechtenstein became the first WTO Member to ratify the revised plurilateral Agreement on 
Government Procurement  (of 30 March 2012) in 2013. Switzerland intends to accede to the 
revised agreement once all required harmonized legislation has been adopted at the federal and 
cantonal levels, i.e. by 2017 at the earliest.  
2.17.   In the Doha Development Agenda negotiations, Sw itzerland has been participating in the 
Friends of Ambition (NAMA), Friends of A -D Negotiations (FANs), and the "Really Good Friends" 
(services) groups. Switzerland is the coordinator of the G1016 and the group of W52 Sponsors .17 
Liechtenstein is also a part icipant in these two groups. Switzerland, negotiating also on behalf of 
Liechtenstein, is participating in the negotiations to conclude an Environmental Goods Agreement 
and, outside of the WTO agenda;  the two countries are both participating in the negotia tions to 
achieve a plurilateral Trade in Services Agreement (TiSA).  
2.18.   During the period under review, Switzerland submitted approximately 130 notifications to 
the WTO. Although the majority of these notifications concerned TBT and TRIPS matters, a broad 
range of subjects have been covered (Table A2.1). Switzerland's notifications frequently include 
Liechtenstein, although Liechtenstein also provides separate notifications for certain measures 
(Table A2.2).  
                                                
14 Switzerland and Liechtenstein implement all UN Security Council Resolutions. As a membe r of the 
EEA, Liechtenstein generally aligns itself with the EU sanctions regimes. Switzerland implements sanctions 
autonomously, taking into account the consolidated list of EU financial sanctions and the consolidated list of 
persons, groups and entities subject to EU financial sanctions. When the EU sanctions regime is not followed, 
measures are taken to ensure that Switzerland is not used to circumvent the sanctions applied by others. No 
sanctions are applied unilaterally. For further details, see Sectio n 3.1.5.  
15 The tariff reductions are subject to final approval by Parliament and a possible referendum.  
16 A coalition of nine WTO Members lobbying for agriculture to be treated as diverse and special because 
of non -trade concerns.  
17 WTO Members (109) sup porting a proposal for "modalities" covering the TRIPS issues in negotiations 
in the Doha Round, i.e. the extension of the higher level of protection for geographical indications beyond 
wines and spirits, the establishment of a corresponding multilateral r egister, and the introduction of a 
mandatory disclosure requirement on patent applicants to disclose the origin of genetic resources and 
traditional knowledge used in the inventions (WTO document TN/C/W/52/Add.3, 29 July 2008).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  2.19.   Neither Switzerland nor Liechtenstein has been invo lved in any dispute settlement cases as 
a complainant or respondent during the period under review. Switzerland has reserved its third -
party rights or joined the consultations in three recent disputes involving other WTO Members.18  
2.3.2   Regional and preferentia l agreements  
2.3.2.1   European Free Trade Association (EFTA)  
2.20.   Switzerland is a founding member of the EFTA, and Liechtenstein acceded in its own right in 
1991. The other current members of EFTA are Iceland and Norway. The original EFTA Convention, 
signed in Stockhol m in 1960, provided for free trade within EFTA in industrial goods from 
31 December 1966. In 2001 (in Vaduz), the four current members signed a revised EFTA 
Convention, in force since 1  June 2002. The revised Convention extended the scope of EFTA to 
new ar eas such as trade in services, investment, land and air transport, public procurement, 
protection of intellectual property rights, mutual recognition of conformity assessments, free 
movement of persons, social security, and mutual recognition of diplomas. The revised EFTA 
Convention is updated on a continuous basis to ensure, wherever possible, that contractual 
relations between EFTA States develop in parallel with changes in agreements between EFTA 
States and the EU. Amendments in force since 2013 reflect developments in the areas of 
agriculture, land and air transport, social security schemes, and mutual recognition of conformity 
assessments.  
2.21.   EFTA States aim at maintaining and strengthening their competitive position worldwide. 
They have chosen to use the  EFTA framework as much as possible to conclude free trade 
agreements with non -EU partners since the 1990s. The first FTAs were confined to trade in goods, 
i.e. industrial goods, fish, and processed agricultural products, with trade in basic agricultural 
products being covered by bilateral agreements with individual EFTA States. Additional elements of 
"first generation" FTAs were the protection of intellectual property rights and competition issues. 
More recent ("second generation") agreements add substanti ve rules on trade in services, 
investment and public procurement. EFTA States have also included model provisions on trade and 
sustainable development in the negotiating processes in a systematic manner since 2010.  
2.22.   Since 2013, FTAs with countries in Centr al America (Panama and Costa Rica), Bosnia and 
Herzegovina, and the Gulf Cooperation Council have entered into force. At present, the EFTA FTAs 
in force comprise a large network of 25 agreements with 35 partners outside the EU (Table A2.3). 
Agreements with  the Philippines and Georgia, and the accession of Guatemala (to the FTA with the 
Central American States), have been signed but the FTAs are not yet in force. In addition, a 
number of new FTAs are under negotiation (Table 2.2). The review, updating, and e xpansion of 
existing FTAs, such as those with Turkey and Mexico, have also become important activities.  
2.23.   EFTA States do not have a common agricultural policy, and their agriculture support 
regimes differ considerably. However, in recently negotiated FTAs w ith Central American States, 
the Philippines, and Georgia the EFTA States have followed an integrated approach on trade in 
basic agricultural commodities, processed agricultural products, and industrial goods.  
Table 2.2 EFTA agreements under negotiation – RTAs under early announcement, 2016  
RTA name  Launch/First 
round of 
negotiations  RTA status  Remarks  
EFTA-Costa Rica, 
Guatemala, Honduras, 
and Panama  28 February 2012  In force for Costa Rica and 
Panama  Protoc ol of accession of 
Guatemala signed on 22 June 
2015; negotiations with 
Honduras are ongoing  
EFTA-India 6 October 2008  Under negotiation   
EFTA-Indonesia  31 January 2011  Under negotiation   
                                                
18 The disputes concern Argen tina – Measures Affecting the Importation of Goods (DS438, DS444, 
DS445).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  RTA name  Launch/First 
round of 
negotiations  RTA status  Remarks  
EFTA-Viet Nam  22 May 2012  Under negotiation   
EFTA-Malaysia  25 Ma rch 2014  Under negotiation   
EFTA-Ecuador  14 November 2016  Under negotiation   
Note:  EFTA FTA negotiations with Algeria, Russian Federation/Belarus/Kazakhstan, and Thailand are 
currently on hold.  
Source:  RTA Database, WTO, and information provided by the authorities.  
2.24.   EFTA States have signed joint declarations on cooperation with various partners, of which 
five declarations (Mercosur, Pakistan, Mongolia, Myanmar, and Mauritius) remain active. The 
declarations address several trade -related topics, including customs and origin matters, technical 
barriers to trade, intellectual property rights, trade in services, public procurement, competition, 
and information on foreign trade. The signing of a joint declaration on cooperation may be a step 
towards the initiat ion of free trade negotiations.  
2.3.2.2   Agreement on the European Economic Area (EEA)  
2.25.   All EFTA States, except Switzerland, are members of the EEA. Switzerland participated 
actively in the negotiations leading to the establishment of the EEA. However, Switzerland' s 
participation in the EEA was narrowly rejected in a referendum in December 1992.  
2.26.   The EEA19 makes Iceland, Liechtenstein, and Norway full participants in the EU's internal 
market based on the principle of free movement of goods, persons, services and capi tal in all 
areas covered by the Agreement.20 Uniform and common rules govern competition, including the 
provision of state aid. The EEA Agreement provides for the continuous inclusion of additional EU 
legislation related to the internal market. However, the  EEA EFTA States have retained their 
legislative competencies, and EEA -relevant acts require passage through the respective national 
parliaments. In its latest biannual assessment, the Council of the European Union once again 
commended Liechtenstein for it s continued excellent rate of implementation of EEA -relevant EU 
acquis.21 In November 2016, 8,715 EEA -relevant EU acts were applicable in Liechtenstein.  
2.27.   The EEA Joint Committee, where the EFTA States speak with one voice and the European 
External Action Se rvice (EEAS) represents the EU, takes decisions to include a new legal text in 
the EEA Agreement by consensus. This step must be completed before the implementation process 
begins in EFTA States. The EU acquis communautaire therefore usually enters into fo rce with a 
time lag in EFTA States. Simplified procedures apply to urgent measures, e.g. safeguards or 
protective SPS measures, where implementation is simultaneous in EFTA and EU member States. 
The EFTA Surveillance Authority and the EFTA Court uphold a u niform legal standard with the EU 
in the three EFTA EEA members. Distinct from infringement actions brought before the EFTA Court 
against an EEA EFTA State regarding the implementation, application or interpretation of EEA law 
and procedures, procedures ar e also available for EEA EFTA States to request advisory opinions 
from the EFTA Court.  
2.28.   The EEA Agreement does not cover the EU Common Agricultural and Fisheries Policies; 
Common Trade Policy; Common Foreign and Security Policy; Justice and Home Affairs (a lthough 
all EFTA States have joined the Schengen area), and the Economic and Monetary Union (EMU). 
However, Article 118 encourages cooperation beyond the four freedoms and in new areas. EFTA 
States have voluntarily joined a large number of EU programmes an d activities, e.g. in research 
                                                
19 See www.sewr.llv.li  or www.efts.int/eea  for further information.  
20 Liechtenstein has been granted a  number of exemptions from the EEA Agreement either due to its 
size or because of its exceptionally close relationship with Switzerland. For example, whereas any EEA national 
may work in Liechtenstein (since 1 January 2000), only EEA nationals with residen cy permits may reside in the 
country. Taking account of the absorption capacity of Liechtenstein, an annual net increase in the population of 
residing EEA nationals is to be ensured among those that are economically active (+1.75%) and not 
economically act ive (+0.5%). At present, the minimum percentage increases translate into 56 additional 
permits for economically active EEA nationals and 16 permits for non -economically active EEA nationals per 
year. Half of these new permits are allocated through a ballot ing procedure with equal chances for all 
participants.  
21 Council of the European Union (2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  and technological development, health, and civil protection. Liechtenstein has observer status in 
several EU agencies (e.g. EMEA, EFSA, EBA, EIOPA, and ESMA) and participates in three 
programmes in the current EU programme cy cle.22 The participation (without the right to vote) of 
EEA EFTA States in EU agencies is always based on a Joint Committee Decision incorporating the 
respective EU act into the EEA Agreement.  
2.29.   The growth in new EU legislation has been particularly pronounc ed in the TBT and SPS 
areas. Simultaneously, bilateral agreements between the EU and Switzerland have reduced 
differences in technical regulations significantly between Switzerland and the EEA since 1995. 
Nonetheless, customs tariffs or non -tariff requirem ents are different in Switzerland and the EEA for 
certain products. Liechtenstein maintains a Market Control and Surveillance Mechanism (MCSM) to 
comply with Swiss import requirements in such cases (Box 2.1). Amendments to the Additional 
Protocol to the Cu stoms Union Treaty are made periodically to mirror legislation applicable due to 
amendments of the bilateral Swiss -EU Mutual Recognition Agreements. Now only a few products 
(chemicals, some telecom equipment, GMOs, fish, and fish products) remain subject t o the MCSM.  
Box 2.1 Liechtenstein's Market Control and Surveillance Mechanism  
As a consequence of Liechtenstein's EEA membership since 1 May 1995, and in order to maintain the Customs 
Union with Switzerland (Sw itzerland is not an EEA member), Liechtenstein must ensure the parallel marketability 
of goods under Swiss and EEA rules within its territory. Liechtenstein maintains a Market Control and Surveillance 
Mechanism (MCSM), applicable to imports subject to cust oms tariffs or non -tariff requirements that are different 
in the EEA and Switzerland, for this purpose. The MCSM aims at ensuring that goods that do not satisfy Swiss 
import requirements do not enter the Swiss market via the open border. The MCSM has been accepted by the 
other EEA members (EEA Council Decision No. 1/95).  
The MCSM applies to professional traders, i.e. distributors/dealers/importers, and to three categories of goods 
(LGBl. 2009/394, Annex 1): (i) products on which Swiss and EEA import requir ements remain different 
(e.g. pharmaceuticals, chemicals/goods hazardous to the environment, genetically modified organisms, some 
telecom equipment); (ii) goods subject to different tariffs under the 1972 FTA between Switzerland and the EU on 
the one hand,  and the EEA agreement on the other (fish and fish products); and (iii) salt, as Liechtenstein 
exempts salt of EEA origin from the otherwise applicable Swiss salt monopoly.  
Under the MCSM, the Swiss Federal Customs Administration clears all imports to Li echtenstein, collects duties, 
and informs the Liechtenstein Office of Economic Affairs. Where customs tariffs differ, the Swiss Customs 
reimburses importers the duties paid and informs them of their obligations, including the submission of proof of 
sale in  Liechtenstein. Where import requirements differ, goods destined for Liechtenstein, in transit through 
Switzerland, are registered at the Swiss Customs, which sends an electronic copy of the customs documents to 
the Liechtenstein Office of Economic Affairs  for processing. When in doubt (e.g. whether an importer has obtained 
a wrongful reimbursement of customs duties, or has paid the required customs duties on goods re -exported to 
Switzerland), the Liechtenstein administration may launch further investigatio ns. Businesses involved in the 
production and import of the relevant goods must appoint an official contact person for this purpose. Wholesalers 
and retailers must keep proof of sales and provide notices in their stores that product use is limited to the 
Liechtenstein territory. Infringements of MCSM provisions are liable to fines of up to 20 times the amount of the 
customs duties wrongfully reimbursed or unpaid, or imprisonment for up to 6 months. Infringements identified so 
far have not entailed any crimi nal action; only written reprimands have been issued.  
Source:  WTO Secretariat.  
2.30.   Iceland, Liechtenstein and Norway have been providing funds to reduce social disparities in  
the EEA since 1994. Grants are administered by the Financial Mechanism Office in Bru ssels. Over 
the period 2009 -14, EEA Grants set aside nearly €1 billion channelled through 5,246 projects in 
16 beneficiary countries of the EU. Liechtenstein's GDP -based share of the funding will amount to 
approximately €10.5 million.23 The Agreement on the  EEA Financial Mechanism 2014 -2021 
foresees the provision of a further €1.5 billion, of which Liechtenstein's share will amount to 
approximately €16.5 million, with a focus on combatting youth unemployment.  
                                                
22 These three programmes are the Rights, Equality and Citizenship Programme 2014 -2020, Erasmus+, 
and the European Statistical Programme 2013 -2017.  
23 EEA Grant s are co -financed by Norway (95.8%), Iceland (3%) and Liechtenstein (1.2%). In addition, 
Norway funds Norway Grants separately. The grants are made available to NGOs, academic and research 
institutions, and public and private sector bodies. Projects funded  through the 2009 -14 grants could be 
implemented until 2016 or, in exceptional cases, until 2017.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  2.3.2.3   Bilateral agreements  
2.31.   Switzerland lodged an appli cation to join the European Economic Community in May 1992. 
However, any possible timetable for Switzerland's eventual membership disappeared overnight 
with the rejection of the EEA Agreement by the majority of Swiss voters in December 1992. 
Negotiations o n Switzerland's EU membership were never launched. On 1 March 2016, the 
National Council passed a motion for Switzerland to withdraw its EU membership application, and 
the Council of States decided likewise on 15 June 2016. The application was formally wit hdrawn in 
a letter dated 27 July 2016. At the same time, the Swiss Government expressed its wish to 
continue pursuing the existing bilateral approach to preserve and develop Switzerland's close 
relationship with the EU.  
2.32.   As a consequence of the Swiss voter s' rejection of the EEA Agreement, Switzerland's 
relationship with the EU is currently governed by an extensive set of bilateral agreements, 
including the Free Trade Agreement (1972)24, the Insurance Agreement (1989), and two packages 
of agreements conclude d in 1999 and 2004 (Bilateral Agreements I and II).25 The seven 
agreements included in Bilateral Agreements I came into force simultaneously and involved classic 
market liberalization in respect of the free movement of persons, technical barriers to trade, public 
procurement, agriculture, overland transport and civil aviation, as well as an agreement on 
research that fully  integrated Switzerland into the EU's framework research programmes at that 
time. The agreements in Bilateral Agreements I are linked to e ach other in such a way that the 
suspension, denunciation or non -renewal of one agreement affects the validity of the entire 
package ("guillotine clause"). The nine agreements constituting Bilateral Agreements II cover 
Switzerland's participation in the EU 's Schengen and Dublin regimes, the European Environment 
Agency, and the EU's MEDIA programme; the taxation of savings; the fight against fraud; trade in 
processed agricultural products; statistics; and an agreement on certain EU pensions. Although 
Bilater al Agreements II was negotiated as a package, the agreements have entered into force 
individually.26 An agreement on Switzerland's participation in EU education, vocational training, 
and youth programmes existing at the time was signed in 2010. The bilatera l agreements have 
been submitted to the Swiss electorate and endorsed at regular intervals. Since 2008, Switzerland 
has also been making financial contributions to reduce economic and social disparities in the 
enlarged EU.27 The legal basis for Switzerland' s contribution, initially valid until 31  May 2017, was 
renewed until the end of 2024 on 30 September 2016. Projects are financed with an overall 
allocation of SwF 1,302 million.28  
2.33.   Negotiations to link the Swiss and EU systems for trading in CO2 emission ri ghts were 
launched in 2011, and the agreement was recently initialled by both sides. Ongoing negotiations 
relate to the legal framework for a mutual free market in electricity, Switzerland's participation in 
"Creative Europe" (an extension of the "MEDIA 20 07" programme), agriculture and food (including 
food safety, product safety and public health matters), and institutional issues. At present, the 
bilateral agreements are managed within a complex structure that includes several joint 
committees. Since May 2014, Switzerland and the EU have been negotiating a new framework for 
current and future bilateral agreements to ensure a consistent and efficient application of the 
                                                
24 Protocol 3 of the FTA was modified on 3 December 2015, replacing its rules of origin provisions with a 
reference to the Pan -Euro-Mediterranean Convention f or the cumulation of origin. The revised Protocol 3 
entered into force on 1 February 2016.  
25 Overall, Switzerland and the EU have concluded approximately 20 major agreements and more than 
100 supplementary agreements that regulate mutual access to an inte grated market, sector by sector, and 
detail the cooperation between Switzerland and the EU in various areas.  
26 The Agreement on the Fight against Fraud was approved by the Swiss Parliament in 2004, but has not 
yet been ratified by all 28 EU member States,  and is therefore not yet in force.  
27 A Memorandum of Understanding on a Swiss financial contribution was signed on 27 February 2006. 
The initial contribution, amounting to SwF 1 billion over a five -year period, has been supplemented by fresh 
funds followi ng the accessions to the EU of Bulgaria (SwF 76 million), Romania (SwF 181 million), and Croatia 
(SwF 45 million). Switzerland decides autonomously on the use of the enlargement contribution funds and 
negotiates directly with the partner States on which pr ojects to support. Information regarding projects 
financed under the mechanism is available (in English) at: 
https://www.erweiterungsbeitrag.admin.ch/erweiterungsbeitr ag/en/home.html . The most recent annual report 
on the Swiss Enlargement Contribution may be consulted at: 
https://www.erweiterungsbeitrag.admin.ch/content/dam/erweiterungsbeitrag/en/documents/Publikationen/eb -
jahresbericht -2015_EN.pdf .  
28 The implementation period for projects in Bulgaria and Romania runs until December 2019 and in 
Croatia until mid -2024.   WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  agreements on market access. Key issues concern the adaptation of the agreements to an 
evolving EU a cquis communautaire, supervision of the good functioning of the agreements, 
uniform interpretation, and dispute settlement mechanisms. From Switzerland's point of view, it is 
critical to ensure that new mechanisms do not involve automatic incorp oration by Switzerland of 
the acquis communautaire into its laws or its subjection to any supranational institution.  
2.34.   Although Switzerland is closely linked to the EU economically and politically, the relationship 
suffered a setback when Swiss voters appro ved a constitutional initiative to better manage 
immigration in a referendum in February 2014. The constitutional provisions provide a three -year 
deadline for its implementation, i.e. until February 2017. The amendments required by the 
initiative in Switze rland's Constitution raise questions regarding their compatibility with the 
bilateral Agreement on the Free Movement of Persons with the EU.29 The free movement of 
persons is at the core of EU -Switzerland relations. As a consequence of the vote, the EU has made 
it clear that the conclusion of various dossiers is contingent on a solution on the free movement of 
persons. The Swiss Federal Parliament adopted implementing legislation for the new constitutional 
provisions on 16 December 2016. The legislation prov ides for the improved realization of the 
workforce potential in Switzerland in the first phase and, in the second phase, for the obligation to 
notify vacant positions to the regional placement offices in sectors with a high unemployment rate.  
2.35.   Although mos t of Switzerland's free trade agreements are concluded together with 
Liechtenstein, Iceland and Norway within the EFTA framework, EFTA States have the possibility of 
entering into FTAs on an individual basis. In addition to the bilateral agreements with th e EU, 
Switzerland has concluded bilateral free trade agreements with the Faroe Islands (1995), Japan 
(2009), and China. The bilateral FTA with China, in force since 1 July 2014, comprises 16 chapters 
covering trade in goods and services, including customs procedures and trade facilitation, trade 
remedies, investment promotion, transparency in government procurement, environmental issues 
and dispute settlement.30 As a result of the FTA, imports from China are now duty free for 86.2% 
of Switzerland's tariff li nes, while 1,148 tariff lines will remain dutiable. The two countries have 
granted each other tariff concessions on industrial goods as well as on a range of basic and 
processed agricultural goods. Regarding trade in services, the bilateral FTA includes ma rket access 
commitments beyond the WTO General Agreement on Trade in Services (GATS) in many areas, 
including for financial services, air transport services, private sector training services, and short -
term services provided by highly qualified natural per sons. FTA rules, particularly related to 
transparency and licensing procedures, are also more specific than those set out in the GATS. 
Switzerland's FTA with China is accompanied by a bilateral agreement on labour and employment 
cooperation and five side a greements dealing with TBT and SPS matters.  
2.36.   Provisions related to trade in goods in Switzerland's free trade agreements with the Faroe 
Islands, Japan, and China also apply to Liechtenstein by virtue of the 1923 Customs Union Treaty. 
Other elements of the FTAs, such as trade in services, are not extended to Liechtenstein.  
2.37.   Switzerland and Liechtenstein were not involved in any disputes under their regional or 
bilateral agreements during the period under review.  
2.3.3   Other agreements and arrangements  
2.3.3.1   Non-recipro cal preferential arrangements  
2.38.   Switzerland's Generalized System of Preferences (GSP) scheme has been revised several 
times since its introduction in 1972, but essentially remained unchanged during the period under 
review.31 The last major modification occurr ed in 2011, when the revised Federal Ordinance on 
Rules of Origin on Tariff Preferences for Developing Countries aligned Swiss origin criteria with 
                                                
29 A req uest from Switzerland to renegotiate the bilateral agreement was rejected by the Council of the 
European Union in July 2014. Since February 2015, Switzerland and the EU have been looking for a mutually 
amenable solution based on a common interpretation of the existing safeguard clause in the bilateral 
Agreement on the Free Movement of Persons.  
30 The notification of the bilateral FTA was circulated in WTO document WT/REG351/N/1 and S/C/N/742 
of 2 July 2014. The WTO Secretariat's factual presentation of the FTA is contained in document WT/REG351/1 
of 18 June 2015.  
31 The scheme has also been applicable to Liechtenstein since 1972 by virtue of the Customs Union 
Treaty.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 37 - 
 
  those applied by the EU and Norway, thereby allowing producers in developing countries to take 
advantage of a unified European market with respect to origin rules for products within HS 
chapters 25 to 97.  
2.39.   Switzerland grants duty -free, quota -free market access for products originating in least 
developed countries (LDCs). Countries that have joined an internation al debt relief initiative 
supported by Switzerland and have not yet eliminated their debt may be deemed equivalent to 
LDCs by Switzerland.32 For other developing countries, the GSP scheme provides tariff exemptions 
or tariff reductions on approximately 7,00 0 tariff lines (at the 8 -digit level). Proof of origin must be 
submitted to claim GSP treatment: a certificate (or replacement certificate) of origin Form A, a 
declaration of origin on the invoice for shipments of originating products with a value of 
SwF 10,300 or more or, since 1 January 2017, a statement of origin.  
2.40.   As a trade facilitation measure in keeping with paragraph 4.2 of the WTO Ministerial 
Decision of 19 December 2015 on preferential rules of origin for least developed countries, 
Switzerland int roduced the Registered Exporter system (REX system) on 1 January 2017.33 The 
new electronic system is replacing Form A certificates with statements of origin issued by the 
exporters. The self -certification system requires exporters to register with the comp etent 
authorities in the exporting country for this purpose.34 Switzerland expects the REX system 
together with a new non -alteration rule35 to significantly reduce the administrative burden related 
to documentary and procedural requirements for LDC and GSP b eneficiaries.36  
2.41.   Further information on the GSP scheme, including utilization rates, is provided in 
Section  3.1.4.6.  
2.4  Investment Regime  
2.4.1   Switzerland  
2.42.   Under the principle of freedom of trade, any person in Switzerland can run a business, setup 
a company, or o wn shares in a company. No approval by the authorities, no membership of 
chambers of commerce or professional associations, and no annual reporting of operating figures 
are required to establish a business. The only requirement is that the authorized signa tory is 
domiciled in Switzerland. If the authorized signatory is a foreign national he must have both work 
and residence permits in order to conduct a business personally on a permanent basis. In 2013, 
around 1 in 3 founders of new companies were non -Swiss . 
2.43.   Table 2.3 below describes in detail the conditions regulating the granting of work and 
residence permits in Switzerland.  
Table 2.3 Work and residence permits: rules and procedures, 2014 -16 
Rules for EU/EFTA citizens  Rules for citizens of non -EU/EFTA 
countries  EU-25 EU-2: Romania and Bulgaria  
Short -term resident permit  
(Permit L -EU/EFTA)  (Permit L -EU/EFTA)  (Permit L)  
- Entitlement as long as proof is 
provided of employment in Switzerland 
lasting between 3  months and 1 year 
(for employment of less than 3 months 
in one calendar year: registration only)  
- Family reunification possible  - Entitlement as long as proof is 
provided of employment lasting up to 1 
year. Renewal after 1  year if secure 
employment is ob tained, subject to 
quota.  
- Annual quota of 9,090 permits (2014 -
15), then 11,664 permits (2015 -16) 
- Priority for Swiss workers, inspection 
of remuneration and working conditions  
- Family reunification possible  - For key positions (forming a 
company, train ing of new employees, 
specialists working for international 
companies): 12 months, can be 
extended to 24 months  
- Family reunification possible  
- Annual quota of 5,000 permits  
- Trainees/interns: valid for 12 -18 
months, no provision for family 
reunificatio n 
                                                
32 This provision applies to Côte d'Ivoire.  
33 Switzerland applies the REX system together wi th the EU and Norway.  
34 Eligible beneficiary countries wishing to apply the REX system should inform Swiss Customs in writing 
as soon as practically possible. The process of adaptation to the REX system is open until June 2020.  
35 The non -alteration rule,  allowing consignments to be split into sub -consignments without mandatory 
presentation of a non -manipulation certificate, replaces the direct transportation rule.  
36 Switzerland notified these changes to the Committee on Rules of Origin in November 2016 (W TO 
document G/RO/80, 18 November 2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Rules for EU/EFTA citizens  Rules for citizens of non -EU/EFTA 
countries  EU-25 EU-2: Romania and Bulgaria  
Cross -border commuter  
(Permit G -EU/EFTA)  (Permit G -EU/EFTA)  (Permit G)  
- Unrestricted geographical mobility  
- Holder must return to main residence 
in an EU/EFTA country every week  
- Self-employment possible  
- Period of validity depends on 
employment contract, but 5 years 
maximum, with possibility of extension  - Geographical mobility within all 
Swiss border zones  
- Priority for Swiss workers, 
inspection of remuneration and 
working conditions  
- Otherwise as EU -25 
 - Valid for 12 months for border zone o f 
canton in which permit issued; annual 
renewal required.  
- Applicant has been resident for at least 6 
months with permanent residence permit 
in border zone of a neighbouring country  
- Weekly return to his place of residence  
- Change of job or place of wo rk possible 
with permission  
Residence permit  
(Permit B -EU/EFTA)  (Permit B -EU/EFTA)  (Permit B)  
- Valid for 5 years, after the 
presentation of a certificate of 
employment with a duration of 1 year or 
more or of unlimited duration  
- Full-time residence fo r specific 
purpose with main residence in 
Switzerland  
- Family reunification possible  
- Entitlement to work in self -employed 
capacity  - Annual quota of 1,046 permits 
(2014 -15), then 1,207 (2015 -16) 
permits  
- Permission required to become an 
employee  
- Priority for Swiss workers, 
inspection of remuneration and 
working conditions  
- Otherwise as EU -25 - Full-time residence in Switzerland for 
work purposes with main residence in 
Switzerland  
- Priority for Swiss workers, inspection of 
remuneration and working c onditions  
- Family reunification possible  
- Annual renewal of permit is a formality  
- Annual quota of 3,500 permits  
Permanent residence permit  
(Permit C -EU/EFTA)  (Permit C -EU/EFTA)  (Permit C)  
- Normally issued on the basis of 
permanent residence agreem ents or 
agreements based on reciprocal rights 
once a person has resided in 
Switzerland for 5 years  
- Holders have the same rights as Swiss 
workers on the labour market  - As EU -25 - Can usually be applied for after 10  years 
uninterrupted residence in Switze rland (5 
years for U.S. citizens)  
- Holders are no longer subject to 
employment restrictions. Entitlement to 
work in a self -employed capacity  
Source:  Federal Office for Migration (FBM), 2015.  
2.44.   On 9 February 2014, the Swiss electorate accepted the popular i nitiative "Stop Mass 
Immigration", opposing the freedom of movement of persons between Switzerland and the 
EU/EFTA and supporting a change in Swiss migration policy. The resulting constitutional 
amendment (Art. 121a of the Federal Constitution) new constit utional text contains two mandates. 
Firstly, it obliges the Federal Council and the parliament to introduce a new admission system for 
all foreign nationals that limits the number of migrants by means of maximum levels and quotas. 
In addition, the new syst em should allow Switzerland to manage future immigration in a way that 
safeguards the country's overall economic interest and gives priority to Swiss nationals as well as 
resident foreign nationals already on the Swiss labour market. Secondly, it mandated the Federal 
Council to negotiate an amendment to the Agreement on the Free Movement of Persons (AFMP) 
with the EU. These two mandates were required to be completed within three years.  
2.45.   The Federal Council immediately began working to implement the new cons titutional 
provisions relating to migration. On 20 June 2014, it presented its plan for the implementation of 
the new migration policy. On 4 December 2015, it took the decision to pursue the ongoing 
discussions with the EU and continue to seek a mutually a greed solution, with a view also to 
safeguarding the bilateral approach. On 4 March 2016, it submitted several pieces of draft 
legislation to Parliament to implement the constitutional provisions on immigration, stating that it 
was endeavouring to agree on  a solution with the EU so as not to endanger the bilateral 
agreements. Should that ultimately prove impossible, it proposed introducing a unilateral 
safeguard clause as a means of controlling the immigration of persons covered by the Agreement 
on the Free  Movement of Persons (AFMP). Simultaneously, intensive consultations with EU 
representatives were conducted, which continued through to the summer of 2016.  
2.46.   However, following the UK's vote to leave the European Union, it became clear that an 
agreement wit h the EU would not be possible. During the autumn 2016 session of Parliament, the 
National Council was the first chamber to debate the Federal Council's draft proposal. On 
21 September 2016, it adopted a "light" version of the proposal to assure preferenti al treatment of 
Swiss nationals on the labour market. The proposal was taken up by the Council of States during 
its winter 2016 session. On 16 December 2016, the two chambers reached agreement on a new 
law, la Loi fédérale sur les Étrangers (LEtr), which i s compatible with the existing rules on the free 
movement of persons so as not to jeopardize Switzerland's bilateral agreements with the EU.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  2.47.   This law is aimed at drawing the maximum potential from manpower in Switzerland . It 
stipulates in its Article 21.a that when certain group s of professions, sectors of activity , or 
economic regions record an unemployment rate superior to the average, vacancies  must be 
communicated by employers to the public employment service . Access to the information on the 
vacancies will be restricted, for a limited period, to persons registered with the public employment 
service  (registration which is not limited to persons residing in Switzerland). The public 
employment service  will then communicate  the details  of qualified persons registered with them  to 
the employer within  the shortest  possible  delay. The employer will then be required to  organize an 
interview or an aptitude test for the candidates whose profile corresponds to the vacancy. The 
result of these interviews/tests must be communicated to the public employment service  but the 
employer does not have to justify a possible refusal. Further exceptions to the obligation to 
communicate vacancies to the public employment service  may be decided in the future by the 
Federal Counci l in order to take into account the peculiar situation of family businesses and of 
workers having been employed previously by the same employer. The Federal Council will 
establish periodical list of groups of professions and of sectors of activity recordin g an above 
average unemployment rate for which the obligation to communicate the vacancies will apply.  
2.48.   If the above measures do not achieve their objective, the Federal Council will submit 
supplementary measures to the Parliament after having consulted th e cantons and the social 
partners. In addition, in case of serious problems, notably linked to cross -border workers , the 
canton concerned may propose additional measures to the Federal Council. The stated aim of this 
new legislation was to be fully consist ent with the Agreement o n the F ree Movement of Persons  
(AFMP)  with the EU. Th is law adopted by the Swiss Parliament concerning the implementation of 
Article 121a of the Federal Constitution is subject to an optional referendum. The optional 
referendum was launched on 28 December 2016 by an individual. A total of 50,000 signatures 
must be collected within 100 days by 7 April 2017  for the vote to take place . 
2.49.   On 28 December 2016, t he Federal Council ratified the protocol extending the free 
movement to Croatia,  which the Parliament had approved in June 2016.  
2.50.   Most economic sectors are open to investment by Swiss nationals and foreigners. However, 
investment restrictions continue to apply to areas under state monopolies, including certain rail 
transport services, some postal services, and certain insurance services and commercial activities 
(e.g. trade in salt). Restrictions (in the form of domicile requirements) are also applied in air and 
maritime transport37, hydroelectric and nuclear power, operation of oil and gas pipelines, and 
transportation of explosive materials.  
2.51.   Certain professions, particularly in the healthcare, education, and technical sectors and in 
the administration of justice, are regulated. To practice these professions it is necessary to possess 
a qualification, certificate , or certificate of competence. Foreign qualifications must be recognized 
by the responsible authorities. Various d ifferent authorities are responsible for recognition 
depending on the profession. Normally , the authorities that r egulate training for a particular 
profession are also responsible for the recognition of foreign qualifications. Within the scope of the 
Agreement on the Free Movement of Persons, Switzerland works closely with the EU and 
participates in the European quali fication recognition system.  
2.52.  Swiss law distinguishes between the following types of business entities: partnership -type 
unincorporated companies (sole proprietorship, limited partnership or general partnership) and 
capital -based incorporated companies (st ock corporation (AG) or limited liability company 
(GmbH )). The "limited partnership for collective investment" (KkK) corresponds to the "limited 
partnership" form common in English -speaking countries.  
2.53.   The following basic options are available for establish ing a business in Switzerland:  
 Forming an unincorporated or incorporated company;  
 Setting up a branch office;  
 Acquiring an existing company in Switzerland (either unincorporated or incorporated);  
                                                
37 Two thirds of the partners of a shipping company must be Swiss nationals.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 40 - 
 
   Formation of a joint venture (unincorporated or incorporated  company);  
 Forming a strategic alliance with or without an equity interest.  
2.54.   The most common choices for a foreign company located in Switzerland are subsidiaries (in 
the form of a stock corporation or limited liability company, i.e. an AG or GmbH) and bran ch 
offices , while limited partnerships for collective investment are designed for risk capital 
investment.  
2.55.   The general accounting regulations in Switzerland are brief. The law requires that the 
income statement (profit and loss account) and the balance she et be drawn up annually according 
to generally accepted accounting principles and that they be complete, clear and easily 
understood. This means that the accounting system can be based on any internationally accepted 
standards (such as US -GAAP, IFRS or Swi ss GAAP FER). The annual financial statements of group 
companies must be consolidated in a single set of group financial statements if two of the following 
parameters are present in two successive fiscal years:  
– Total assets of SwF 10 million  or above ; 
– Annual sales of SwF 20 million  or above ; 
– An average headcount over the year of at least 200 employees.  
2.56.   Audits of annual financial statements for correctness and accuracy must be conducted by 
companies  or persons with  the required state licen ce. Normally they are fiduciaries, fiduciary 
companies or auditing companies. The auditing obligation depends on the size and economic 
importance of the corporation (AG) or limited liability company (GmbH). Regular audits apply to 
companies that are required to prepare  consolidated financial statements, or if two of the three 
parameters below are present in two successive fiscal years:  
– Total assets of SwF 20 million  or above ; 
– Annual sales of SwF 40 million  or above ; 
– An ave rage headcount over the year of at least 250 employees or more.  
2.57.   As a rule, any trading, manufacturing or other form of commercial enterprise is required to 
be registered in the commercial register. Registration guarantees that the company name is 
protected. It is only after registration in the com mercial register that legal entities receive their 
own legal personality and status. The commercial register charges a fee of SwF 1,000 per 
company registered.  
2.58.   No permit is required for real estate that is used for the pursuit of a business activity, i.e. a 
professional, commercial or industrial activity (with the exception of land for the construction, 
trade or letting of housing). The concept of business activity is very broad. It applies not only to 
the classic forms of trade, industry, and commerce but also to the financial and services sector. It 
therefore covers self -employed professionals such as IT specialists or hotel owners, as well as the 
operation of a trade or service centre and even industrial production. The acquisition of an interest 
in real estate companies engaged in the buying and selling of such properties is also possible. 
Residential property can also be acquired under the "business establishment" heading if it is 
necessary for business purposes (such as accommodation for caretakers or t echnicians whose 
permanent on -site presence is required) or if separation from the business property would be 
impractical or unreasonable.  
2.59.    Switzerland has an extensive network of bilateral investment protection agreements 
covering 117 countries .38 During t he period under review one agreement was signed with Georgia 
on 3 June 2014 and entered into force on 17 April 2015 , while an agreement signed in 2008 with 
                                                
38 For a complete list of these agreements, see:  
https://www.seco.admin.ch/seco/en/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Internationale_Inv estitionen/Vertragspolitik_der_Schweiz/overview -of-bits.html . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Madagascar entered into force on 7 May 2015. Switzerland has signed a total of 106 double 
taxation a voidance agreements39, 57 of which are in accordance with the international OECD 
standards and 47 of which have already entered into force. All 31 agreements signed by 
Switzerland since the last review are in conformity with these international standards. I n addition , 
Switzerland has signed ten tax information exchange agreements (TIEAs), all during the period 
under review,  seven of which have entered into force.  
2.60.   Overall , the World Bank 's 2016 Doing Business Report ranks Switzerland 26th worldwide , a 
rank un changed as compared to 201 5 Regarding the subcomponents of this index , Switzerland 
ranks 5th for getting electricity, 16th for registering property, 19th for paying taxes, 40th for trading 
across borders, 44th for resolving insolvency, 46th for enforcing c ontracts, 56th for dealing with 
construction permits, 69th for starting a business and 105th for protecting minority investors.  
2.4.2   Liechtenstein  
2.61.   Liechtenstein has a stable and predictable investment regime. Most sectors are open to 
national and foreign inves tment, with the following restrictions: residency requirements; 
restrictions on the purchase of real estate; restrictions in production, trade, and transport of 
electricity, gas, and water (subject to state monopoly); and restrictions applied to a number o f 
financial services (asset management, investment consulting, and assuming trusteeships) when 
these are provided on a professional basis by trustees or trust companies.  
2.62.   All investors may establish a company in Liechtenstein without restriction. If the in vestor 
established in Liechtenstein wishes to become commercially active, the investor has to apply to the 
Office of Economic Affairs in order to obtain a commercial licence40, unless specific licensing 
requirements exist, e.g. for financial sector companie s or certain professional services like lawyers 
or auditors. For "qualified" professions, sector -specific government -recognized professional 
qualifications are required.41 A prerequisite for obtaining the commercial licence is that the 
investor him/herself is an EEA or Swiss citizen or meets the 12 years' prior -residence and 
professional -qualification requirements. If this is not the case, the investor may appoint a 
managing director who fulfils these requirements. All entities (of natural or legal persons) must 
have an office and/or business premises in Liechtenstein that is suitable to carry out the business.  
2.63.   Liechtenstein corporate forms are regulated under the Persons and Companies Act of 
20 January 1926 (LR 216.0) known as the "PGR Code". The most common  entities established 
under the PGR Code include joint stock companies, establishments, and foundations. All corporate 
bodies established under the PGR Code must be registered with the Commercial Register. 
Processing by the Commercial Registrar usually tak es two to three days. In January 2012, the 
agency "Liechtenstein Marketing" was established to promote, inter alia, foreign investment and 
tourism (Act on Location Promotion of 20 October 2011 (LR 935.20)).  
2.64.   Liechtenstein has not concluded any bilateral in vestment protection treaties. It has not 
concluded any plurilateral or multilateral conventions regarding investment protection as such. 
However, in the EFTA context, there are two FTAs (with Korea and Singapore) that include some 
investment protection pro visions.  
2.65.   As of 25 October 2016, Liechtenstein has concluded 18 double taxation agreements  
(DTAs).42  
                                                
39 For a complete list of these agreements, see:  
https://www.sif.admi n.ch/sif/en/home/themen/internationale -steuerpolitik/doppelbesteuerung -und-
amtshilfe.html . 
40 For citizens of non -EEA member States (other than Switzerland), 12 years' prior residency is required.  
41 There are 64 "qualified" or regulated professions. Viewed  at: 
http://www.gesetze.li/Seite1.jsp?LGBl=2011226.xml&Searchstring=gewerbeverordnung&showLGBl=true .  
42 See http://www.llv.li/files/stv/int -uebersicht -dba-tiea-engl.pdf . WT/TPR/S/355 • Switzerland and Liechtenstein  
 
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 3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures and requirements  
3.1.  The Federal Customs Administration (FCA) is responsible for implementing customs 
procedures. The principal legislation on customs procedures comprises the Customs Law of 
18 March  2005 (RS 631.0), which entered into force on 1  May 2007, and related regulations 
(ordinances) (Table  3.1). There have been no significant amendments to the Customs Law or 
ordinances related to customs since the last Review but there have been several amendments to 
facilitate trade, such as waiving the need for proofs of origin in some cases, and simplified forms 
for small  consignments. Customs laws and procedures in Switzerland are similar to the Customs 
Code of the European Union with the same procedures (except processing under customs control), 
and similar terminology and definitions.  
Table 3.1 Principal customs legislation in Switzerland, 2016  
Reference  Name  Date  
RS 631.0  Customs Law  18 March 2005  
RS 631.01  Customs Ordinance  1 November 2006  
RS 631.011  Ordinance of the Federal Department of Finance (DFF) on Customs  4 Apr il 2007  
RS 631.012  Ordinance of the Federal Department of Finance (DFF) on Goods Eligible  
for Customs Duty Reductions Depending  on Use 4 April 2007  
RS 631.013  Ordinance of the Federal Customs Administration (AFD) on Customs  4 April 2007  
RS 631.016  Ordin ance of the Federal Department of Finance (DFF) on Processing  4 April 2007  
RS 632.10  Federal Law on Customs Tariffs  9 October 2007  
Source:  WTO Secretariat, based on information provided by the authorities.  
3.2.  In practice, on arrival at a customs post, impor t procedures are carried out at a single desk, 
although the necessary permits and licences may first need to be obtained from different agencies. 
Since 4  April 2016, a single Customs Information Office has operated to answer general queries 
from the public  and companies. This information service is provided in addition to the information 
on the FCA website which includes links to the web -based declaration systems, tariffs, rules of 
origin, and other rules, procedures, and charges related to trade.1 Switzerl and and Liechtenstein 
ratified the Trade Facilitation Agreement on 2 September 2015 and 18 September 2015, 
respectively. According to the authorities, Switzerland complies with Section 1 of the TFA and, in 
2016, established a national trade facilitation co mmittee.  
3.3.  Where the final destination of the goods is Switzerland, they must be delivered to a customs 
office and declared for customs clearance by the carrier or the person arranging for the goods to 
be imported (the importer, recipient, shipper, or clien t). Goods must be declared at specified 
customs offices during office hours and, since 1 January 2013, using the e -dec customs clearance 
system which replaced the single administrative document (Form 11.010). In addition, there are 
online systems for rail freight through the RailControl system, and goods in tr ansit through the 
New Computeriz ed Transit System (NCTS).  
3.4.  Documents required to support the customs declaration include invoices, certificate of origin, 
authorizations, official confirmations and anal ysis certificates, delivery notes, cargo manifests, and 
weight certificates.  
3.5.  In principle, customs duties and other taxes, charges, and levies applied at point of import 
are payable in cash or by credit card at the point of entry. However, regular importe rs may avail of 
the centralized settlement procedure (CSP) which, in addition to allowing electronic payments, 
allows for payment of customs duties within five days of import and VAT within 60 days of import.  
3.6.  For goods in transit, import duties and VAT mu st be secured temporarily either using the 
Transports Internationaux Routiers (TIR) procedure, or the NCTS (also called the Common Transit 
                                                
1 Federal Customs Administration online information includes links to all requirements for importing, 
exporting, and transit of goods in Switzerland. Vie wed at: https://www.ezv.admin.ch/ezv/fr/home/infos -pour-
entreprises/declarer -des-marchandises/acc roissement -de-la-securite -de-la-chaine -logistique.html  
[January  2017].  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 43 - 
 
  Procedure (CTP)). The TIR procedure applies only to goods transported by road and under a 
customs seal for transporte rs holding a TIR carnet, which includes a financial guarantee for the 
suspended duties and taxes and is administered by the International Road Transport Union. The 
CTP is an electronic system which applies in the EU, The former Yugoslav Republic of Macedon ia, 
Turkey, and the Republic of Serbia. The system generates electronic messages that are sent to the 
customs offices of transit and destination, in addition to the document which must accompany the 
transit. A guarantee for duties and taxes must be provide d in the country where the procedure 
starts and is released on completion of the transit. Goods in transit under the CTP must be 
accompanied by a detailed description of the goods or the goods must be carried under bond.  
3.7.  Since 1 January 2011, with the ent ry into force of the Agreement between Switzerland and 
the EU on the Simplification of Customs Formalities and Customs Security Measures 
(RS 0.631.242.05), prior notification for imports and exports between them has not been required. 
Since that date, pers ons domiciled in Switzerland who meet the required conditions have been 
able to apply for Authorized Economic Operator (AEO) status. The general requirements include an 
appropriate record of compliance with customs requirements, a satisfactory system of ma naging 
records, proven financial solvency, and appropriate security and safety standards. Accreditation by 
the FCA is based on a risk analysis and inspection.2 As at 26 September 2016, 93 enterprises had 
been certified. According to the authorities, Switze rland intends to broaden the scope of its AEO 
agreements beyond the EU, starting with Norway and continuing with Japan, the United States, 
and China.3 
3.8.  Appeals against decisions by the FCA may be made in the first instance by writing to the 
customs office w here the customs declaration was made within 60 days of the decision. Rulings by 
the FCA may be appealed to the courts. In 2015, there were about 150 appeals, of which 12 
resulted in a reversal or review of the original decision. In other cases, the decisi on was upheld or 
the appeal was withdrawn.  
3.9.  Switzerland's 2016 ease of doing business ranking by the World Bank was 40th out of 189 
economies for trading across borders with imports requiring one hour and US$201 for border 
compliance, and 2 hours and US$108  for documentation.4 Other indicators ranked Switzerland 
differently such as: the World Bank's Logistics Performance Index which, in 2016, ranked 
Switzerland 11th out of 160  economies for logistics generally and 10th for customs5; and the World 
Economic Fo rum's Global Competitiveness Index, which ranked Switzerland 17th out of 140 
economies for the burden of customs procedures.6 
3.1.2   Customs valuation  
3.10.   All tariffs in Switzerland and Liechtenstein are specific duties and do not need a customs 
valuation as the gros s weight (weight of goods plus packaging) is used to calculate the duty. For 
VAT and some other taxes, such as the automobile duty, which are collected at the border and are 
based on value, the invoice value is used. Compared to VAT collected on imports, i mport duties 
represent a relatively small proportion of total revenues collected by the FCA (Chart 1.3).  
3.1.3   Rules of origin  
3.11.   The legislation on rules of origin for Switzerland and Liechtenstein is set out in a number of 
regulations including the Ordinance on A ttestation of Non -Preferential Origin of Goods of 
9 April 2008 (RS 946.31), the Ordinance of the Federal Department of Economic Affairs, Education 
and Research (EAER) on the Certification of the Non -Preferential Origin of Goods of 9 April 2008 
(RS 946.311) , the Ordinance on the Delivery of Proofs of Origin of 23 May 2012 (RS 946.32), and 
the Ordinance on Rules of Origin for Preferential Tariffs for Developing Countries of 30 March 2011 
(RS 946.39). In addition, the various free trade agreements in force bet ween Switzerland and 
                                                
2 WCO (2016), p. 51.  
3 FCA online information. Viewed at: https://www.ezv.admin.ch/ezv/fr/home/infos -pour-
entreprises/declarer -des-marchandises/accroissement -de-la-securite -de-la-chaine -logistique.html  
[January  2017].  
4 World Bank (2016), pp 67 -72. 
5 World Bank online information . Viewed at: http://lpi.worldbank.org/  [January 2017].  
6 World Economic Forum (2015), pp. 336 -337. WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 44 - 
 
  Liechtenstein and third countries include the rules of origin applicable to those agreements, such 
as the free trade agreement between Switzerland and China (Chapter 3, Articles 3.1 -3.25).7 
3.12.   According to the authorities, the basic princ iples for ascribing origin are:  
 Wholly obtained (which mainly affects goods under HS headings 01 to 24); or  
 Sufficiently worked and processed (which applies to goods under HS headings 07 to 97, 
but also to many goods under HS headings 07 to 24), where the two main criteria are:  
o value addition, which means the local content of the final product must be above a 
threshold percentage of the value and a minimal operation must have taken place; 
or 
o a change in tariff heading, which means the exported product must be classified 
under another tariff heading compared to the imported inputs. Goods imported 
within a preferential regime from a partner or partners of the regime may be used 
in production as if they were domestically obtained (cumulation).  
3.13.   Under the non -preferential rules of origin, the country of origin is the country where the 
goods were wholly obtained or they have been sufficiently worked or processed, which is defined 
as having foreign content not exceeding 50% or 60% of the ex -works price, a change in the four -
digit heading in the Harmonized System, or (in some cases) subject to specific origin -conferring 
processing or working. Operations such as packing, cleaning, applying labels or brands, simple 
mixing, or the slaughter of animals and cutting up of m eat, are insufficient working or processing 
for conferring origin.  
3.14.   In its free trade agreements, Switzerland usually applies a general rule that sufficiently 
worked or transformed means non -originating material should not represent more than a 
percentage o f the ex -works price or that a change in HS heading at the 2 -, 4-, or 6 -digit level, 
(with some additional limits to the value of non -originating material) applies. Specific rules may 
apply to some products and the wholly obtained criteria may be used for some agricultural 
products.  
3.1.4   Tariffs  
3.1.4.1   Applied MFN customs duties  
3.15.   Switzerland and Liechtenstein form a customs union (Section 2.1). In 2015, the customs 
duties collected by the Swiss Federal Customs Administration constituted 1.5% of federal receipts 
(Chart 1 .3) 
3.16.   As reported in Switzerland and Liechtenstein's previous review, under the Federal Law on 
Customs Tariffs, the Federal Council may modify tariffs through an ordinance, when deemed 
necessary.8 The modifications are temporary until their approval by the F ederal Assembly. Any 
tariff changes would be made after a case -by-case evaluation, which would take into account the 
needs of the Swiss economy. The tariff suspension system was introduced during the period under 
review in January 2016 (Table 3.8).9 
3.17.   Overal l, the 2016 tariff structure has not changed since the last review; the tariff schedule 
is based on the 2012 Harmonized Commodity Description and Coding System (HS) and comprises 
8,615 tariff lines at the 8 -digit level.10 The Swiss Federal Customs Administr ation maintains a 
public online database, Tares ( www.tares.ch ), containing information on applied MFN and 
preferential duties and other measures including tariff quotas, additional charges (i.e. ODCs), and 
                                                
7 Free trade agreements to which Switzerland and Liechtenstein are parties (including rules of origin) 
are availabl e online at: https://www.ezv.admin.ch/ezv/fr/home/documentation/directives/d -30-accords -de-
libre-echange --preferences -tarifaires -et-origine.html  [January 2017].  
8 Federal Law on Customs Tariffs (RS 632.10), version of 1 July 2016.  
9 Ordinance on the Temporary Reduction of Customs Duties on Textiles  (RO 2015 4935; RS  632.102.1).  
10 8,299 tariff lines (excluding in -quota lines) were taken into account in all tariff calculations.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 45 - 
 
  authorization requirements (i.e. import permit). Switzerland continues to submit its customs tariff 
and trade data regularly to the WTO Integrated Database.  
3.18.   The Switzerland -Liechtenstein tariff schedule consists exclusively of specific rates. Despite 
one of the main ra tionales for specific duties being their administrative simplicity, it has been 
noted that their shortcomings include a lack of transparency and predictability.11 Unlike ad valorem  
tariffs, the level of protection by means of specific duties is not evident;  estimating the ad valorem  
equivalents (AVEs) allows the actual protection of specific duties to be assessed.12 AVEs used in 
this section were calculated by the Secretariat as the ratio of specific duties to import unit values, 
estimated using the ratio of import values to import quantities in 2015 (at the HS eight -digit 
level). If there were no imports in 2015, 2014 import data were used. The Swiss authorities 
expressed reservations about the methodology and noted that any estimate of AVEs has 
limitations a s they are affected by many factors, including the base period, unit prices, exchange 
rates, and cases where only limited volumes were imported.  
3.19.   The limits of estimated AVEs should be kept in mind:  
 First, if there are no imports, the estimates of AVEs are not calculated. A lack of imports 
does not necessarily imply that a tariff is high; it may be that there is no domestic demand 
for a particular product. For the purpose of the 2016 tariff analysis, it was not possible to 
estimate AVEs for approximately 4% of all tariff lines;  
 Second, the estimates of AVEs are affected by variations in import prices through 
fluctuations of world market prices and/or exchange rates even though the customs duties 
remained the same. The appreciation of the Swiss franc has affec ted the AVEs for some 
products (Section 1.2); and  
 Third, the unit values used may vary depending on the source of imports and whether they 
qualify for a tariff concession or exemption, resulting in a wide variation in AVEs without 
any change in customs dut ies.  
3.20.   One feature of a specific duty is that it provides a level of protection that is inversely related 
to the price of the imported good. Therefore, a specific duty places a relatively heavier burden on 
lower priced goods compared to higher priced goods in the same tariff line. Moreover, in some 
cases, a lower specific duty under a preferential tariff arrangement (e.g. GSP) may have an AVE 
which is higher than the AVE of the MFN specific duty because imports from the GSP recipients 
have lower unit prices than the MFN imports (examples in Table 3.2). In order to take this into 
consideration, in this section, the calculated import values were based on total Swiss imports (i.e. 
all trading partners) for each tariff line concerned. Nevertheless, it must be not ed that about 80% 
of tariff lines (i.e. excluding applied MFN duty -free) are duty -free (zero) under preferential 
agreements (Section 3.1.4.6) and, therefore, are always lower than the MFN duty regardless of 
unit prices.  
3.21.   Overall, the simple average of the 2 016 applied MFN tariff rate is estimated at 9.0%, 
slightly down from 9.2% in 2012 (Table 3.3). The standard deviation of 42.4 indicates high tariff 
dispersion, with tariff rates ranging from 0% to 1,850.6% (up from 1,676% in 2012). The high 
dispersion is a  consequence of specific duties, leading to a wide range of AVE rates from one tariff 
line to another.  
                                                
11 WTO (2000), Box III.1.  
12 AVEs can be estimated using two main methods: the duty -collection ratio (the ratio of tariff revenue 
to the import value) and the unit value method (the ratio of specific duties to import prices). For details on 
AVEs, see the TPR of Switzerland and Liechtenstein (2000), Box III.1; and WTO document TN/MA/S/10 , 
20 May 2003.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 46 - 
 
  Table 3.2 Examples of ad valorem  equivalents, 2013 -15 
HS Imported items only subject to 
applied MFN tariff sa Imported items subject to  
preferential tariffs (e.g. GSP)b 
2013  2014  2015  2013  2014  2015  
HS 19059085  Bread, pastry, cakes, biscuits and other bakers' wares, containing added sugar or other 
sweetening matter, containing fat other than milkfat, n.e.s.  
  2016 applied specific duties  1.003 SwF/Kg  0.403 SwF/Kg  
  Import unit value  8.85 9.26 7.83 7.99 8.18 8.48 
  AVE 11.3%  10.8%  12.8%   5.0%   4.9%   4.8%  
HS 62046990  Women's or girls' trousers, bib and brace overalls, breeches and shorts of textile materi als 
  2016 applied specific duties  4.25 SwF/Kg  2.125 SwF/Kg  
  Import unit value  193.40  151.95  179.95  53.70  39.40  40.52  
  AVE 2.2%  2.8%  2.4%  4.0%  5.4%  5.2%  
a Import unit values were calculated based import flows between Switzerland and MFN trading 
partners. 
b Import unit values were calculated based import from GSP countries (excluding LDCs, which benefit 
from duty -free-quota -free treatment). Please note that actual preferential imports were not taken 
into account, i.e. it was assumed that all imports f rom non -LDC GSP countries qualified for GSP 
treatment.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and the Swiss Federal 
Customs Administration's Swiss -Impex online database. Viewed at: https://www.swiss -
impex.admin.ch/ pages/bereiche/waren/query.xhtml  (December 2016).  
3.22.   Agricultural products (WTO definition) are more highly protected than other products, with 
an average of 30.8%, whereas the average for non -agricultural products is 2.3%. The maximum 
rate on an AVE basis of 1,850.6% is applied to out -of-quota imports of frozen edible bovine livers 
(HS 02062290), followed by 1,582.2% applied to frozen edible bovine offal, other than tongues 
and livers (HS 02062990). Rates higher than 100% only apply to agriculture, mainly in vegetables 
(HS 07), meat (HS 02), and dairy products (HS 04). Within agriculture, animals and animal 
products, and dairy products are the product groups with the highest import duties. Some 
agricultural product groups such as animals and animal products, dairy products, and fruits, 
vegetables and plants display higher standard deviations, implying larger tariff ranges within these 
product categories (Table  3.4). 
Table 3.3 Structure of MFN tariffs, 2016  
  Applied MFN tariff  Final 
boundb   2012a 2016b 
1.  Bound tariff lines (% of all tariff lines)  n.a. n.a. 99.0 
2. Simple average tariff rate  9.2 9.0 13.5 
 Agricultural produc ts (WTO definition)  31.9 30.8 49.2 
 Non-agricultural products (WTO definition)  2.3 2.3 2.5 
 Agriculture, hunting, forestry and fishing (ISIC 1)  23.5 22.3 36.6 
 Mining and quarrying (ISIC 2)  0.5 0.6 0.7 
 Manufacturing (ISIC 3)  7.8 7.8 11.2 
3.  Specific  tariffs (% of all tariff lines)  100.0  100.0  100.0  
   of which: duty -free tariff lines (% of all tariff lines)  18.7 19.7 15.4 
4.  Simple average rate of dutiable lines only  11.4 11.4 16.2 
5. Tariff quotas (% of all tariff lines)  3.8 3.8 3.8 
6. Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  4.3 4.1 4.5 
7. Domestic tariff peaks (% of all tariff lines)c 5.8 6.4 7.6 
8. International tariff peaks (% of all tariff lines)d 8.9 9.0 12.4 
9. Overall standard deviation of applied rates  48.7 42.4 51.4 
10. Nuisance applied rates (% of all tariff lines)e 38.8 38.3 37.8 
n.a. Not applicable.  
a Ad valorem  equivalents (AVEs) were estimated based on 2011 import data at the 8 -digit tariff line 
level. If no import data were available for 2011, 2010 import data were used in calculations.  
b Ad valorem equivalents (AVEs)  were estimated based on 2015 import data at the 8 -digit tariff line 
level. If no import data were available for 2015, 2014 import data were used in calculations.  
c Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  All tariff calculations exclu de in-quota lines. The tariff schedules are based on HS12 nomenclature, 
consisting of 8,299 tariff lines (at the 8 -digit tariff line level).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 47 - 
 
  3.23.   Some 83.9% of all tariff lines car ry rates of 10% or below (Chart 3.1). Duty -free treatment 
applies to 19.7% of tariff lines, covering a wide range of products such as fish and crustaceans, 
nuts, fruits, tea, some cereals, certain chemicals, medical equipment, agricultural equipment, 
furniture, and products granted duty -free treatment under the Pharmaceutical Initiatives, the 
Information Technology Agreement, and the Plurilateral Agreement on Trade in Civil Aircraft  
(implementation of the ITA expansion commenced on 1 January 2017).13  
3.24.   The pr oportion of duty -free lines in 2016 (19.7%) was slightly higher than in 2012 (18.7%), 
reflecting the elimination of import duties on certain agricultural products such as 
animal/vegetable fats and oils, as well as textiles under the tariff suspension syste m (Table 3.8).  
Chart 3.1 Breakdown of applied MFN tariffs, 2012 and 2016  
(Number of tariff lines)  
(18.7)(64.9) 
(4.7) 
(2.1) (1.1) (0.8) (3.5) (19.7)(64.2)
(4.6)
(1.6) (1.4) (1.2)(4.0)
01,0002,0003,0004,0005,0006,000
0 >0-10 >10-20 >20-30 >30-40 >40-50 >502012 2016Chart 3. [CHE -LIE] Breakdown of applied MFN tariffs, 2012 and 2016
Number of tariff lines
WTO Secretariat calculations, based on data provided by the authorities. Source:Figures in parentheses indicate the share of total lines.  Calculations exclude in -quota rates .  They do not add to 100% 
since some AVEs were not available (4.3% and 4.1% of all lines in 2012 and 2016, respectively).  Note:
 
Note:  Figures in parentheses indicate the percentage share of total lines. Calculations exclude in -quota 
rates. They do not add to 100% since some AVEs were not available (4.3% and 4.1% of all lines in 
2012 and 2016, respectively).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.4 Summary of tariff analysis, 2016  
 No. of 
lines  Simple 
average  
(%) Tariff  
range  
(%)  SDa Share of 
tariff 
quota 
lines  
(%) Share of  
duty-
free 
lines 
(%) 
Total  8,299  9.0 0-1,850.6  42.4 3.8 19.7 
HS 01 -24 2,310  28.0 0-1,850.6  79.9 13.4 24.7 
HS 25 -97 5,989 2.5 0-382.5  6.4 0.1 17.7 
By WTO category        
WTO agricultural products  2,134  30.8 0-1,850.6  83.5 14.7 20.0 
Animals and products thereof  173 103.0  0-1,850.6b 227.1  67.6 9.8 
Dairy products  58 100.2  2-402 108.8  24.1 0 
Fruit, vegetables, and plants  617 29.9 0-569.6  63.4 20.7 15.1 
Coffee, tea, and cocoa and cocoa 
preparations  62 10.7 0-87 15.8 0 16.1 
Cereals and preparations  426 22.1 0-128 26.2 5.4 10.6 
Oilseeds, fats, oil and their 
products  394 22.2 0-196.6  37.4 0 26.6 
Sugars and confectionary  58 7.2 0-47.2 8.5 0 25.9 
Beverages, spirits and tobacco  124 24.2 0-264.3  39.0 21.0 8.9 
Cotton  6 0 0 0 0 100.0  
Other agricultural products, n.e.s.  216 5.9 0-382.5  29.4 2.8 57.4 
                                                
13 Tariff concessions under the ITA expansion were not taken into account in calculations in th is section 
since the Secretariat's tariff analysis was based on the 2016 tariff schedule.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 48 - 
 
   No. of 
lines  Simple 
average  
(%) Tariff  
range  
(%)  SDa Share of 
tariff 
quota 
lines  
(%) Share of  
duty-
free 
lines 
(%) 
WTO non -agricultural products  6,165  2.3 0-63.1 3.9 0 19.6 
Fish and fishery p roducts  254 0.5 0-33.7 2.5 0 75.2 
Minerals and metals  1,286  1.9 0-27.9 2.7 0 12.2 
Chemicals and photographic 
supplies  1,083  1.2 0-40.5 2.7 0 38.2 
Wood, pulp, paper and furniture  344 5.0 0-35.1 6.1 0 21.2 
Textiles  766 6.0 0-63.1 6.1 0 7.2 
Clothing  332 5.3 0.6-31.6 4.0 0 0 
Leather, rubber, footwear and 
travel goods  178 2.1 0-44.1 3.7 0 3.4 
Non-electric machinery  855 0.8 0-15.1 1.3 0 15.9 
Electric machinery  382 1.0 0-9.3 1.3 0 16.2 
Transport equipment  183 1.9 0-20.9 2.8 0 9.8 
Non-agricultural product s, n.e.s.  481 1.4 0-20.8 2.1 0 15.2 
Petroleum  21 0 0 0 0 100.0  
By ISIC sectorc       
ISIC 1 – Agriculture, hunting and 
fishing  881 22.3 0-569.6  55.3 17.1 26.7 
ISIC 2 – Mining and quarrying  105 0.6 0-14.9 2.0 0 62.9 
ISIC 3 – Manufacturing  7,312  7.8 0-1850.6  40.9 2.2 18.2 
By stage of processing        
First stage of processing  1,402  14.5 0-569.6  44.8 11.1 34.5 
Semi-processed products  2,459  3.4 0-102.4  7.4 0.0 20.1 
Fully processed products  4,438  10.6 0-1850.6  51.7 3.6 14.7 
a Standard deviation.  
b The highest tariff peak is 1,850.6% (HS 02062290), followed by 1,582.2% (HS 02062990).  
c International Standard Industrial Classification (Rev.2). Electricity , gas and water are excluded 
(1 tariff line).  
Note:  Calculations for averages are based on the nation al tariff line level (8 -digit), excluding in -quota 
rates. Tariff schedule is based on HS2012. Ad valorem equivalents (AVEs) were estimated based on 
2015 import data at the 8 -digit tariff line level. If no import data were available for 2015, 2014 
import da ta were used in calculations.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.25.   The applied MFN tariff structure as a whole displays mixed escalation: the average tariff in 
2016 is estimated at 14.5% on raw materials; 3.4% o n semi -processed products, and 10.6% on 
fully processed products (Table 3.4). The negative escalation from raw materials to semi -finished 
products is mainly due to high tariffs on unprocessed agricultural products – which often have 
higher unit values than  semi-processed agricultural products. For example, tariff rates for fresh 
fruits, semi -processed fruits, and preparations of fruits are 31.2%, 9.2%, and 25.7%, respectively, 
which suggests greater protection of the higher value fresh product than the lowe r value semi -
processed and processed fruits.  
3.26.   At a more disaggregated level, positive escalation (indicating higher rates of effective 
protection for more processed products) seems to exist on some products: tariff rates for cocoa 
beans are duty free, for cocoa paste and cocoa powder are 3.7%, and for chocolate confectionery 
are 13.6%; and tariff rates for tobacco (unmanufactured) and tobacco (products) are 15.2% and 
19.7%, respectively.  
3.1.4.2   Tariff quotas  
3.27.   Tariff quotas (TQs) apply to a number of agricultural products (3.8% of all tariff lines), 
mainly covering live animals, eggs, bovine semen, cut flowers, potatoes, fresh and frozen 
vegetables, fresh fruits, wine, and certain cereals. Tariff quotas may be modified, mainly as a 
result of domestic shortages. Thu s, imports above the bound quota quantity at the in -quota tariff 
may be allowed in some cases. The process of quota allocation varies according to product 
(Section 4.1.2.2). Tariff quotas are managed by an electronic application system ("e -quota").  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 49 - 
 
  3.28.   Switze rland provides either preferential in -quota rates within its MFN TQs or specific 
bilateral TQs. Switzerland has a total of 316 applied MFN in -quota tariff lines. Albania, for example, 
benefits from tariff preferences on 96 of these 316 in -quota tariff line s (Table  3.5). Moreover, 
under certain bilateral trade agreements, Switzerland has opened specific bilateral TQs for certain 
products. In the case of Albania, Switzerland has opened two specific bilateral TQs for olive oil 
(HS 1509.1091 and 1509.1099) with  duty-free in -quota tariff (for up to 500  tonnes per year).14 
Table 3.5 In-quota tariff lines, by tariff regime, 2016  
 Tariff preferences on 
products covered by 
WTO TQs  Specific bilateral tariff 
quotas  
 (Numbe r of tariff lines at the 8 -digit level)  
Number of applied MFN in -quota tariffs  316  
 of which preferential tariff rates:  
Albania  96 2 
Bosnia and Herzegovina  104  3 
Canada  3 1 
Chile 167 3 
China  261  
Colombia  183  
Costa Rica  144  
EFTA 186  
Egypt  85 8 
EU 40 81 
Faeroe Islands  2  
GCC 40  
Hong Kong, China  29  
Israel  41  
Japan  131   4 
Jordan  78 1 
Korea, Republic of  182   
Lebanon  98 2 
Mexico  42   
Montenegro  103 5 
Morocco  93   
Panama  74   
Peru 183  
SACU excl. Lesotho  187 13 
Serbia  103   
Singapore  5   
Palestine  29   
The former Yugoslav Republic of Macedonia  66  
Tunisia  18 2 
Turkey  38   
Ukraine  121 1 
GSP 179 3 
LDCsa    
a LDCs benefit from the duty -free and quota -free treatment.  
Note:  The tariff schedule separates tariff lines for in -quota (316 at the 8 -digit tariff line level) and out -of-
quota tariffs (314 at the 8 -digit tariff line level). Calculations are based on the national tariff line 
level (8 -digit). The figures correspond to numbers of in -quota tariff lines.  
Source:  Compiled by the WTO Secretariat, based on data provided by the authorities; and online information 
from the Swiss Customs Administration. Viewed at: http://www.ezv.admin.ch/index.html?lang=en . 
3.29.   Seasonal tari ffs apply to some 95 products and are levied mostly on fruits and vegetables 
produced domestically, most of which are also subject to tariff quotas (Section 4.1.2).  
                                                
14 WTO Document WT/REG292/1/Rev.1 , 21 September 2012 . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.1.4.3   Bound duties  
3.30.   As a result of the Uruguay Round, 99% of Switzerland -Liechtenstein tariff line s are bound. 
Unbound tariff lines cover some 84 lines (at the HS 8 -digit level) for gas, petroleum, and related 
products.  
3.31.   The simple average bound tariff is estimated at 13.5% (49.2% for agricultural products and 
2.5% for non -agricultural products) and 15 .4% of all tariff lines are duty free (WTO definitions).  
3.1.4.4   Other duties and charges  
3.32.   The Switzerland -Liechtenstein Customs Union has bound "other duties and charges" (ODCs) 
on the tariff lines covered in their schedule of concessions at zero. However, Switze rland applies 
levies on imports of certain goods that are subject to compulsory reserve stock requirements to 
finance these reserve stocks.15 Under the compulsory stock system, these are called "guarantee 
funds", which are managed by five private organizati ons/cooperatives: CARBURA (energy), 
Réservesuisse (foodstuffs), Agricura (fertilizer), Helvecura (therapeutic products), and Provisiogas 
(natural gas), on behalf of the federal government.16 In the case of foodstuffs, fees are levied on 
basic foodstuffs, su ch as rice, sugar, coffee, edible oils and fats, cereals for bread making, durum 
wheat and feedstuffs, which are collected by Réservesuisse (Table 3.6). These fees are levied in 
addition to customs duties. No guarantee fund contributions are levied on dome stically produced 
foodstuffs (Réservesuisse) or energy products (CARBURA) subject to reserve stock requirements, 
whereas Agricura, Helvecura and Provisiogas levy fees on both domestic and imported goods 
(Section 3.1.5).17 
Table 3.6 Guarantee fund contributions, 2016  
  Guarantee fund contribution (GFC)  
Réservesuisse (foodstuffs)  
Animal feed  SwF 0 -5/100 kg gross  
Bread cereals/Durum wheat  SwF 0 -5/100 kg gross  
Coffee  SwF 0 -8.85/100 kg gross  
Durum wheat  SwF 1.20 /100 kg gross  
Edible fats and oil  SwF 0 -9.8/100 kg gross  
Rice SwF 0 -4.75/100 kg gross  
Sugar  SwF 0 -5.0/100 kg gross  
CARBURA (energy)   
     Petroleum spirit and fractions  SwF 3.30/m3 
     Diesel oil  SwF 3.30/m3 
     Biofuels  SwF 3.30/m3 
     Biodiese l SwF 3.30/m3 
     Bioethanol and petrol mixture  SwF 3.30/m3 
Agricura   
     Fertilizers  SwF 3.00/100  kg gross  
Helvecura   
     Therapeutic products  0-2.2%/price ex -factory   
Provisiogas  
     Natural gas, liquefied/gaseous state  SwF 0.013 Ct./kWh  
Source: Reservesuisse. Viewed at: http://www.reservesuisse.ch/en/goods/  [November 2016];  
 CARBURA. Viewed at: 
http://www.carbura.ch/fileadmin/user_upload/editors/web_dokumente/Zirkulare/MGL_Zirk/2016/Zir
k21744_Info_B_C_Bioprodukte_ab_20160801_f.pdf  [November 2016]; and information provided by 
the Swiss  authorities.  
3.33.   Since ODCs bound at zero and applied tariffs often equal the bound rates, it is possible that 
the sum of tariff and guarantee fund contributions may exceed Switzerland's bound commitments 
on several tariff lines at present (Table 3.7).  
                                                
15 Liechtenstein does not maintain any reserve stocks, according to the authorities.  
16 Federal Office for  Nationa l Economic Supply , (2015 ), page 8 . 
17 Federal Office for National Economic Supply (2015) , page 52.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table  3.7 Guarantee fund contributions (GFC), applied tariffs, and bound tariffs  
Tariff code  Item  Guarantee 
fund 
contribution  
(SwF 100 kg 
gross)  2016 
applied 
tariff  
(SwF 100 
kg gross)  Bound 
tariff  
(SwF 100 
kg gro ss) 
Rice 
 10061090  Rough rice (paddy rice)  2.85 0.0 0.0 
 10061090  Rough rice, for direct consumption  4.75 0.0 0.0 
 10062090  Half rough rice, for direct consumption  4.75 0.0 0.0 
 10062090  Half rough rice, for post -processing  3.80 0.0 0.0 
 10063090  Merchant rice  4.75 0.8 0.8 
 10064090  Broken rice  4.75 0.8 0.8 
Coffee  
 09012100  Coffee, roasted, not decaffeinated  4.50 63.0 63.0 
 09012200  Coffee, roasted, decaffeinated  4.50 63.0 63.0 
 21011100  Coffee extract, unmixed  8.85 182.0  182.0  
 21011100  Coffee extract, liquid/frozen  2.65 182.0  182.0  
 21011219  Coffee extract, mixed 20 %  1.75 182.0  182.0  
 21011219  Coffee extract, mixed 30 %  2.65 182.0  182.0  
 21011219  Coffee extract, mixed 60 %  5.30 182.0  182.0  
Fats and oils  
 15179063  Other edible fats and oil s in tanks/metal drums  9.10 245.1  254.0  
Source:    Information compiled by the WTO Secretariat, based on information from Reservesuisse viewed at: 
http://www.reservesuisse.ch/en/goods/  [November 20 16]; and tariff data provided by the 
authorities.  
3.1.4.5   Tariff exemptions and reductions  
3.34.   On 18 November 2015, the Federal Council adopted an Ordinance on the Temporary 
Reduction of Customs Duties on Textiles (RO 2015 4935; RS 632.102.1).18 The measure came into 
force on 1  January  2016 and is effective until 31 December 2019. The programme covers some 60 
tariff lines in chapters 52, 54, 55, 56, 58, 59 and 60, of which 21 tariff lines may not benefit from 
the suspension programme if these items are used for retail s ale or are in ready -to-use form 
(Table  3.8). All importers of the goods, irrespective of their origin, may benefit from tariff 
suspensions.  
Table 3.8 Suspension of customs duties in the textiles sector  
Produc t description (HS 4 -digit level)  Tariff code  
Cotton yarn  52053290  
Woven fabrics of cotton (85% or more by weight of 
cotton, weighing not more than 200 g/m²)  52081100  
Woven fabrics of cotton (85% or more by weight of 
cotton, weighing more than 200 g/m² ) 52092100; 52094100; 52094200;52095100  
Woven fabrics of cotton (less than 85% by weight of 
cotton, mixed mainly or solely with man -made fibres, 
weighing not more than 200 g/m²)  52101900  
Synthetic filament yarn  54023300  
Woven fabrics of synthetic filame nt yarn  54071000; ex 54072000; 54074100; 54074200;  
54074400; 54075100; 54075200; 54075300; 
54075400; 54076110; 54076120; 54076130; 
54076140; 54076920;54076930; 54076940; 
54077100; 54077200; 54078200; 54079200  
Sewing thread of man -made staple fibres  ex 55081000  
Woven fabrics of synthetic staple fibres  55132300; ex 56031100; ex 56031200  
Gimped yarn; chenille yarn (including flock chenille 
yarn); loop wale -yarn ex 56060090  
 
                                                
18 Article 4. Para. 3 (b) of the Federal Law on Customs Tariffs, version of 1 July 2016 (RS 632.10).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Produc t description (HS 4 -digit level)  Tariff code  
Narrow woven fabrics  ex 58061000; ex 58063200; ex 58064000  
Embroidery, in the piece, in strips or in motifs  58109220; 58109900  
Textile fabrics impregnated, coated, covered or 
laminated with plastics  ex 59031000; ex 59032000; ex 59039000  
 
Textile fabrics otherwise impregnated, coated or covered  ex 59070000  
Textile products and articles, for technical uses  59111000; 59114000; ex 59119000  
Pile fabrics, including "long pile" fabrics and terry fabrics, 
knitted or crocheted  60011000; 60019100; 60019200  
Knitted or crocheted fabrics of a width exceeding 30 cm  60041000  
Warp knit fabrics  60053300; 60053400; 60059090; ex 60053100  
Other knitted or crocheted fa brics 60063100; 60063200; 60063300; 60063400; 
60064200; 60064400; 60069000  
Source:  Ordinance on the Temporary Reduction of Customs Duties on Textiles  (RO 2015 4935).  
3.35.   Besides the tariff suspension system, Switzerland and Liechtenstein maintain various tari ff 
exemptions and reductions under different laws and ordinances.  
3.36.    Under the Federal Law on Customs Tariffs, the Federal Council may reduce tariffs or 
exempt imports from duties in exceptional circumstances such as shortages of foodstuffs or other 
essentia l goods.19 During the period under review, the Federal Council did not order any measures 
on the grounds of national emergency.  
3.37.   In addition, a variety of customs duty reliefs in the form of different schemes are provided 
when entering the Customs Union, su ch as the temporary admission of goods/inward processing, 
customs relief by type of use and for animal feed, duty -free warehouses, and open customs 
warehouses (Table 3.9).  
Table 3.9 Key features of tariff exe mptions and reductions  
Schemes  Summary  Relevant 
laws/ 
ordinance  
Duty-free 
movement of 
goods  o Goods eligible for exemption under international conventions (the exemption 
can be restricted or suspended temporarily or durably for goods from countries 
that do not grant reciprocity)  
o Customs privileges for diplomats: exemption from customs duties and VAT is 
granted on the importation of goods that are intended for the official use of 
embassies, consulates, international organizations and missions as well as for 
the personal use of members of representations who have diplomatic status.  
o Coffins, and funerary urns and ornaments  
o Prizes, commemorative badges, and gifts of honour  
o Stocks on dining cars of international trains; and stocks, spare parts, and 
equipment on bo ard boats and aircrafts  
o Legal payment means, bonds, manuscripts and documents with no value for 
collection, stamps, as well as foreign public transport tickets  
o Items for returning residents, wedding trousseau (e.g. items for household, 
wedding gifts), and inheritance  
o Goods for charitable institutions and for poor persons  
o Cars for disabled people  
o Objects for teaching and research  
o Works of art and exhibition objects for museums  
o Instruments and devices for medical examination or treatment of patients in 
hospit als or similar facilities  
o Studies and works of Swiss artists staying temporarily abroad for study  
o Border trade, and animals from border waters  
o Commercial samples and specimens  
o Indigenous packing material  
o The Confederation's war material  
o Capital goods and capital items of foreign companies that transfer their 
activities to the customs territory  RS 631.0  
RS 631.01  
                                                
19 Section 3 of the Federal Law on Customs Tariffs, versio n of 1 July 2016 (RS 632.10).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Schemes  Summary  Relevant 
laws/ 
ordinance  
Temporary 
imports  The Federal Council may provide partial or full exemption from import duties on 
foreign goods for temporary admission into the customs territory or on indigenous 
goods after temporary admission into the foreign customs territory.  
The temporary admission procedure is generally restricted to two years (but a one -
year extension may be requested no more than three times) after which t he goods 
are re -exported without being modified. Customs offices require a deposit 
equivalent to the import duties, which would be payable in the case of permanent 
importation (release into free circulation). In the case of a full and punctual re -
exportati on of the goods, the deposit is returned. Almost all goods can be imported 
under temporary admission. The main categories of goods eligible for temporary 
admission include professional equipment, goods for exhibitions and trade fairs, 
certain means of tran sport (e.g. racing motor vehicles) and packaging.  RS 631.0  
RS 631.01  
Inward 
processing 
regime  Goods under the inward - processing regime may be subject to partial or full 
exemption from import duties when entering Switzerland. In addition, in certain 
cases, imported goods can be exempted from VAT.  
The inward processing procedure can be applied to goods that are temporarily 
processed in Switzerland. Under the scheme, the imported goods must be intended 
for re -exportation within 12 months of the date of the temporary importation after 
having undergone manufacturing, processing or repair. The approval of the Swiss 
Federal Customs Administra tion is required.  RS 631.0  
RS 631.01  
RS 631.016  
Duty relief    
By type of use  Goods may be imported at reduced duties de pending on their final use. Importers 
that wish to claim for the duty relief must present an end -use commitment and 
obtain a permit from the General Directorate of Customs. Annex 1 of Ordinance on 
Customs Relief (RS 631.012) determines goods being brought into the customs 
territory under the customs tariff relief scheme. The scheme covers mainly 
agricultural products and certain manufacturing products.  RS 631.0  
RS 631.01  
RS 631.012  
Food for zoo, 
laboratory, and 
other animals  Exemptions from customs dutie s may apply to forage products intended for animal 
food (e.g. animals in zoos, animals used for scientific purposes, wild animals, fish, 
dogs, cats and other animals kept in apartments, not for the purpose of food 
production).  RS 631.0  
RS 631.01  
RS 631.01 2 
Duty-free 
warehouses  Goods can be temporarily stored without paying import duties. Goods are moved 
via the transit procedure from the border to the duty -free warehouse. After 
temporary storage, the goods can be either imported or exported from the custo ms 
territory as part of the transit procedure.  
The following goods can be temporarily stored in a duty -free warehouse without 
paying tax: highly -taxed goods or goods subject to a quota and; goods stored on a 
temporary basis whose end use is not yet certai n. RS 631.0  
RS 631.01  
RS 631.013  
 
Open customs 
warehouses 
(OCW)  A warehouse operator can store their own or third -party foreign goods (within Swiss 
customs territory). Goods are moved in transit from the border to the warehouse 
(approved place) without an y customs duties or taxes being paid. The main benefits 
of an OCW are: temporary storage without paying any import duties; import duties 
must be paid after the end of stockpiling for goods for sale in the customs territory; 
goods remain at a warehouse and do not have to be sent to a specific customs 
office for any clearance formalities.  RS 631.0  
RS 631.01  
RS 631.013  
 
Source:  Information compiled by the WTO Secretariat, based on laws and ordinance as noted in the table; 
and online information of the Swiss F ederal Customs Administration.  Viewed at: 
https://www.ezv.admin.ch/ezv/en/home/information -companies/declaring -goods/importation -into-
switzerland.html  [December 2016].  
3.1.4.6   Tariff preferences  
3.38.   The Customs Treaty of 1923 created a customs union between Switzerland and 
Liechtenstein. Consequently, all goods are freely traded between the two countries, although they 
are subject to the Market Control and Surveillance Mechanism (Section 2.3.2.2, Box 2.1). The 
bilateral agreements between the EU and Switzerland and the EEA Agreement (for Liechtenstein) 
provide for free trade in most non -agricultural products with a valid certificate of origin. In  addition 
to the European Union and the EFTA Convention, Switzerland and Liechtenstein have engaged in 
29 FTAs, of which three (with China, Faeroe Islands, and Japan) are bilateral, while the remaining 
agreements are within the ambit of EFTA.20  
3.39.   Under the f ree trade agreements (i.e. reciprocal basis), over 75% of all tariff lines 
(excluding applied MFN duty -free) are eligible for preferential tariff rates at zero or at reduced 
rates (i.e. lower than the applied MFN rate) with a proof of origin. The main exce ptions from 
                                                
20 As of December 2016.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  preferences are in the categories of vegetables (HS 07), oil seeds (HS 12), products of the milling 
industry (HS 11), meat products (HS 02), and animal and vegetable oil fats (HS 15) (Chart 3.2).  
Chart 3.2 Distribution of applied MFN and preferential tariffs, 2016  
(Number of tariff lines)  
01,0002,0003,0004,0005,0006,0007,0008,0009,000Applied MFN ratesEUChinaFaeroe IslandsJapanAlbaniaBosnia and HerzegovinaCanadaChileColombiaCosta RicaEFTAEgyptGCCHong KongIsraelJordanKorea, Republic ofLebanonMexicoMontenegroMoroccoPalestinian AuthorityPanamaPeruSACU excl. LesothoSACU LesothoSerbiaSingaporeMacedoniaTunisiaTurkeyUkraineGSPLDC
Former Yugoslav Republic  
of MacedoniaMFN duty -free
Dutiable lines (no preferential rate)Duty-free
Reduced ratePreferential tariff 
rates
WTO Secretariat calculations, based on data provided by the authorities. Source:Implementation period is not yet over. aChart 3. [CHE -LIE] Breakdown of applied MFN and preferential tariffs, 2016aaaa
aaaaaa
a
aa(Number of tariff lines)
 
a Implementation period is not yet over.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.40.   Duty-free treatment is granted to 99.9%  of non -agricultural imports, while preferences are 
granted on a limited range of agricultural products (WTO definition). As a result, the simple 
average tariff rates for agriculture under the agreements are in general slightly lower than the 
averaged appl ied MFN tariff rates, while tariffs on non -agricultural products are nearly all zero 
(Table 3.10).  
Table 3.10 Tariffs under preferential agreements, 2016  
 Simple average tariff (%)a Duty -free lines in total  
 All WTO 
agriculture  WTO  
non-
agriculture  All WTO 
agriculture  WTO  
non-
agriculture  
MFN applied duty rates  9.0 30.8 2.3 19.7 20.0 19.6 
EFTA 6.5 27.8 0.0 85.2 42.7 99.9 
EU 6.6 28.1 0.0 81.5 30.9 99.0 
Bilateral agreements           
  Chinab 6.5 26.9 0.0 85.8 45.2 99.8 
  Faeroe Islands  7.1 30.5 0.0 79.6 21.1 99.9 
  Japanb 6.8 28.9 0.0 83.6 36.5 99.9 
EFTA agreements           
  Albania  6.8 29.1 0.0 83.1 34.5 99.9 
  Bosnia and Herzegovinab 6.7 28.7 0.0 83.6 36.3 99.9 
  Canadab 6.9 29.5 0.0 81.1 26.8 100.0  
  Chile 6.8 29.2 0.0 82.7 33.0 99.9 
  Colombiab 6.6 28.2 0.0 84.7 40.8 99.9 
  Costa Ricab 6.8 29.1 0.0 83.4 35.7 99.9 
  Egyptb 6.8 29.2 0.0 82.5 32.3 99.9 
  GCCb 6.9 29.3 0.0 82.8 33.4 99.9 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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   Simple average tariff (%)a Duty -free lines in total  
 All WTO 
agriculture  WTO  
non-
agriculture  All WTO 
agriculture  WTO  
non-
agriculture  
  Hong Kong, China  6.9 29.5 0.0 82.2 31.1 99.9 
  Israel  6.9 29.3 0.0 81.7 29.2 99.9 
  Jordan  6.9 29.6 0.0 80.8 25.6 99.9 
  Korea, Republic of  6.8 29.0 0.0 83.6 36.5 99.9 
  Lebanon  6.9 29.3 0.0 82.8 33.3 99.9 
  Mexico  7.1 30.3 0.0 81.6 28.6 99.9 
  Montenegrob 6.8 29.1 0.0 83.2 34.8 99.9 
  Morocco  6.9 29.3 0.0 81.4 27.9 99.9 
  Palestine  6.9 29.6 0.0 81.0 26.4 99.9 
  Panamab 6.9 29.3 0.0 82.7 32.9 99.9 
  Perub 6.6 28.2 0.0 84.6 40.6 99.9 
  SACU excl. Lesotho  6.7 28.7 0.0 84.1 38.4 99.9 
  SACU Lesotho  0 0 0 100.0  100.0  100.0  
  Serbia  6.8 29.0 0.0 83.2 35.0 99.9 
  Singapore  6.9 29.5 0.0 81.7 29.1 99.9 
  The former Yugoslav 
Republic of Macedonia  6.9 29.4 0.0 81.6 28.7 99.9 
  Tunisiab 7.0 29.9 0.0 80.3 23.7 99.8 
  Turkey  6.9 29.3 0.0 82.3 31.7 99.9 
  Ukraineb 6.9 29.3 0.0 82.6 32.8 99.9 
Non-reciprocal           
  GSP 7.2 29.0 0.5 71.9 37.4 83.8 
  LDC 0 0 0 100.0  100.0  100.0  
Note:  All tariff calculations exclude in -quota lines.  
 The tariff schedules are based on HS12 nomenclature, consisting of 8,299 tariff lines (at the 8 -digit 
tariff line level). 0.0 re fers to >0 and <0.05.  
a Ad valorem  equivalents (AVEs) were estimated based on 2015 import data at the 8 -digit tariff level.  
 If no import data were available for 2015, 2014 import data were used in calculations.  
b Implementation is not completed yet.  
Source: WTO Secretariat calculations, based on data provided by the authorities.  
3.41.   Within the framework of the Generalized System of Preferences (GSP), Switzerland and 
Liechtenstein grant non -reciprocal preferential tariff treatment for goods originating in bene ficiary 
countries while LDCs benefit from duty -free and quota -free access for all products.21 Preferences 
given to non -LDC GSP countries are more limited, especially for agricultural products: the average 
tariff rate under the GSP is 29% compared to the ave rage applied MFN rate of 30.8%. According to 
data provided by the Swiss authorities, in 2015, some 8.5% of total imports from GSP 
beneficiaries into Switzerland were under the GSP scheme, which corresponds to a utilization rate 
of 32.8%; the utilization ra tes were 51.0% for LDCs and 31.0% for non -LDC GSP beneficiaries 
(Table 3.11).22 Imports under GSP schemes from non -LDC GSP beneficiaries fell from 
SwF 4.4 billion in 2012 to SwF  1.5 billion in 2015, as a result of the bilateral agreement between 
Switzerland  and China whose status as a developing country in the framework of GSP ceased as of 
1 July 2014.  
                                                
21 The current GSP scheme provides preferential access to 123 developing countries, of which 48 are 
least developed countries, based on the Ordinance Determining the Preferential Customs Tariffs for Deve loping 
Countries (RS 632.911) (version of 1 January 2016).  
22 The GSP utilization rate is equal to the share of imports entered into the customs union under the 
GSP scheme.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table 3.11 GSP utilization, 2012 -15 
(SwF billion and %)  
  2012  2013  2014  2015  
All GSP beneficiaries  Total impo rts 34.9 34.6 21.2 20.9 
 GSP eligible importsa 12.1 12.1 5.1 5.4 
 Imports under GSP schemeb 4.7 4.5 2.0 1.8 
 Pref. utilization (%)c 39.1%  37.4%  38.3%  32.8%  
 % of total imports  13.5%  13.1%  9.2%  8.5%  
GSP excluding LDCs  Total imports  29.6 30.2 17.4 17.1 
 GSP eligible importsa 11.6 11.6 4.5 4.8 
 Imports under GSP schemeb 4.4 4.3 1.6 1.5 
 Pref. utilization (%)c 38.3%  36.7%  36.2%  31.0%  
 % of total imports  15.0%  14.1%  9.4%  8.5%  
GSP LDCs  Total imports  5.2 4.4 3.8 3.8 
 GSP eligible importsa 0.5 0.5 0.6 0.6 
 Imports under GSP schemeb 0.3 0.3 0.3 0.3 
 Pref. utilization (%)c 56.9%  52.9%  54.7%  51.0%  
 % of total imports  5.4%  6.4%  8.3%  8.4%  
a Imports are subject to GSP tariff rates.  
b Imports actually entering into Switzerland/Liechtenstein under GSP tariff regime.  
c The utilization rate is equal to the share of imports made under the preferential scheme in total 
preferential eligible imports.  
Source:  WTO Secretariat estimates, based on statistics provided by the Swiss authorities.  
3.1.5   Import prohibitions, rest rictions, and licensing  
3.42.   Switzerland applies a number of prohibitions and restrictions on imports, mainly for reasons 
of security, health, protection of intellectual property, and protection of the environment. In 
addition, some measures are applied as a re sult of UN Security Council Resolutions or EU sanctions 
regulations. In some cases, such as trade in weapons, dual -use goods, and articles of cultural 
significance, the regulations on trade apply to imported, exported, and transit goods. At end -2016, 
the last WTO notification on quantitative restrictions for Switzerland was for 2014 -1623, and covers 
Liechtenstein as well.24 The list of goods subject to import prohibitions is relatively limited (some 
examples are listed in Table 3.12).  
Table 3.12 Selected products subject to import prohibitions, 2012  
Products  Regulation/agreement  Purpose  
Endangered species and their products  CITES  Environment  
Nuclear, chemical, and biological 
weapons/anti -personnel mines  Federal Law on War Materials  
(RS 514.51, Articles 7 and 8)  Security  
Certain toxic and environmentally 
hazardous chemical substances  Ordinance on Risk Reduction Related  to 
Chemical Products (RS 814.81)  Environment/public 
health and safety  
Potatoes, potato plants , certain soil 
substrates, vines, fruit trees from non -
European countries  Ordinance on the Protection  of Plants  
(RS 916.2)  Plant health 
(prohibition concerns 
mainly plant species 
intended for planting)  
Certain carbon -zinc batteries and alkali -
manganese b atteries/accumulators  Protocol to the Convention on Long -
Range  Transboundary Air Pollution  
(RS 0.814.326)  Environment  
Rough diamonds shipped from a country 
that is not a participant in the Kimberley 
Process Certification Scheme (KPCS)  Ordinance on Intern ational Trade  in 
Rough Diamonds  (RS 946.231.11)  Combating 
international trade in 
conflict diamonds  
                                                
23 WTO document G/MA/QR/N/CHE/1, 2 May 2014  
24 WTO document G/MA/QR/N/LIE/1, 11 June  2014 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Products  Regulation/agreement  Purpose  
Misappropriated cultural property from 
Iraq and Syria  
 Ordinance on Measures against the 
Republic of Iraq (RS 946.206) and 
Ordinance on Measures against Syr ia 
(RS 946.231.172.7)  Protection of cultural 
property  
 
Goods from the Crimea and Sebastopol  
if not accompanied by a certificate of 
origin issued by the Ukrainian 
authorities  Ordinance on Measures to Prevent the 
Circumvention of International Sanctions 
Related to the Situation in Ukraine 
(RS 946.231.176.72)  International law and 
security  
Source:  WTO document G/MA/QR/N/CHE/1, 2 May 2014. The full list of current sanctions is available online 
from SECO: 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit
/Wirtsc haftsbeziehungen/exportkontrollen -und-sanktionen/sanktionen -
embargos/sanktionsmassnahmen.html  [January 2017].  
3.43.   The import licensing regime of Switzerland and Liechtenstein for 2016 was notified to the 
WTO on 30 September 2016. The authorities stated that, apart from some minor amendments, 
there had been no substantial changes compared to earlier notifications.25 
3.44.   For agricultural products, automatic or non -automatic licences may be required depending 
on the product and/or whether the imports are within a tari ff quota (TQ). The legal basis for 
licences is set out in the Federal Law on Agriculture of 29 April 1998 (RS 910.1) and the General 
Ordinance on Imports of Agricultural Products of 26 October 2011 (RS 916.01) plus more specific 
legislation for some produc t groups. Non -automatic licences are used for allocating some parts of 
tariff quotas to authorized importers who meet the legal requirements for importing within TQs. 
Non-automatic licences may be transferred to other authorized importers and are generally  for 
limited periods (Section 4.1.2.[tariff quotas]). An automatic import licence (general import licence 
(PGI)) is required for a wide range of agricultural products. The PGI is delivered automatically, at 
no charge and for an unlimited duration. However,  for some products, such as horses and eggs, no 
licence is required and imports up to the tariff quota limit are charged the in -quota tariff.  
3.45.   For SPS reasons, imports of animals and animal products, vegetables and vegetable 
products, and forestry plants no rmally require an authorization from the Federal Office for Food 
Security and Veterinary Affairs (OSAV), the Federal Office for Agriculture (OFAG), or the Federal 
Office for the Environment (OFEV). Imports from the EU, Norway, and Iceland do not normally 
require an authorization. Imports of plants and plant products for planting must be accompanied 
by a phytosanitary certificate. Furthermore, imports of some plant and plant products from certain 
countries are prohibited where the phytosanitary situation of these products presents a clear 
danger of introduction of pests or diseases into Switzerland. For some products, such as potatoes, 
the prohibition applies to all countries except those that are members of the European and 
Mediterranean Plant Protection Org anization (EPPO).  
3.46.   Licences are also required for imports of species covered by the Convention on International 
Trade in Endangered Species of Wild Fauna and Flora (from OSAV); reproductive forestry materials 
(OFEV); human tissues and transplants (Federal O ffice for Public Health (OFSP)); blood, blood 
products and immunological products (Swissmedic); psychotropic substances (Swissmedic); and 
products with an ethanol content greater than 80% by volume (Swiss Alcohol Board). Imports of 
ethanol are to be libera lized from end -2018, when the Confederation's monopoly will be abolished 
and the tariff reduced to zero. The Swiss Alcohol Board will be progressively integrated into the 
Federal Customs Administration, effective in 2018 (Section 3.3.4).26 
3.47.   Switzerland conti nues to apply a system of compulsory stockpiles for fuel, and food and 
feedstuffs (Section  3.1.4.4) . Automatic licences are granted on the condition that the importer has 
a reserve stock contract. Licences for fuels are provided by the Central Swiss Office  for Imports of 
Fuels and Combustible Liquids (CARBURA – an association of importers) and for food and 
feedstuffs by Réservesuisse Genossenschaft (a cooperative of importers).27 Under the Ordinance 
                                                
25 WTO document G/LIC/N/3/CHE/12, 30 September 2016.  
26 Swiss Alcohol Board online information. Viewed at: 
https://www.eav.admin.ch/eav/fr/home/revision_alkoholgesetz/revision_partielle_de_la_loi_sur_l_alcool/calen
drier_mise_en_oeuvre.html  [January 2017].  
27 WTO document G/LIC/N/3/CHE/12, 30 September 2016, Section 9.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  on Obligatory Stocks of Natural Gas of 20 May 2015 (RS 531. 215.42), natural gas was added to 
the list of fuels subject to compulsory stocks (operated by Provisiogas), although automatic 
licences are not required for imports of natural gas.  
3.48.   In addition, reserve stocks are maintained for fertilizer and some therapeu tic products. The 
cooperative society Agricura Genossenschaft is responsible for managing the fertilizer reserve 
stocks held by importers and manufacturers. Agricura maintains a guarantee fund to protect its 
members from any losses that may be incurred fro m holding reserve stocks. The guarantee fund is 
financed by contributions from domestic sales of fertilizers.28 Helvecura Genossenschaft is a 
cooperative society responsible for managing the stocks of therapeutic products which also 
operates a guarantee fun d to cover losses incurred by its members from holding the reserve 
stocks (Section 3.1.4.4).29 
3.49.   Access to some tariff quotas for agricultural products requires the importer to purchase or 
produce similar products domestically under a " prise en charge " system  (Section 4.1.2.2).  
3.1.6   Anti-Dumping, countervailing, and safeguard measures  
3.50.   Neither Switzerland nor Liechtenstein has any specific legislation on contingency measures, 
although the WTO Agreement on Implementation of Article VI of GATT 1994, the Agreement on 
Subsidies and Countervailing Measures, the Agreement on Safeguards, as well as the other 
Uruguay Round agreements, are legally binding having being published in the classified 
compilation of acts and ordinances of Switzerland.30 Neither Switzerland nor Liec htenstein has 
applied any contingency measures.31 SECO is the competent authority for investigation and 
application of contingency measures.  
3.51.   Switzerland also reserved the right to use the special agricultural safeguard (SSG) under 
Article 5 of the Agreement  on Agriculture for 1,176 tariff lines, but has not invoked it for any 
product since 1999.32 
3.52.   As noted in previous reports, in cases of emergency or when the national interest is at 
stake, the legislation does provide for changes in tariff rates or the impos ition of non -tariff 
measures.33 However, these provisions have never been used.  
3.2  Measures Directly Affecting Exports  
3.2.1   Export procedures and requirements  
3.53.   Export procedures for Switzerland and Liechtenstein are similar to those for imports. An 
export declaratio n is required (for statistical purposes) and goods must be exported within one day 
of submission of the customs declaration. The declaration must be made electronically by the 
exporter or someone acting on behalf of the exporter. Goods delivered to a duty -free or customs 
warehouse must be exported within six months of the submission of the customs declaration.  
3.54.   The legislation on non -preferential rules of origin for Switzerland and Liechtenstein applying 
to exports claiming Swiss or Liechtenstein origin is set out in the Ordinance on Attestation of the 
Non-Preferential Origin of Goods of 9 April 2008 (RS 946.31), and Ordinance of the FDEA on the 
Certification of the Non -Preferential Origin of Goods of 9 April 2008 (RS 946.311) (Section 3.1.3). 
Ordinance 946. 311 includes a list of chambers of commerce in Liechtenstein and the Swiss cantons 
which operate as bureaux of origin (Annex 1).  
                                                
28 Agricura online information. Viewed at : http://www.agricura.ch/fr/engrais_azotes.htm  
[January  2017].  
29 Helvecura online information. Viewed at: http://www.helvecura.ch/fr/page -initiale  [January 2017].  
30 Tariff Regime GATT/WTO (RS 0.632.2).  
31 WTO documents: G/ADP/N/1/CHE/1, 4 May 1995; G/ADP/N/193/CHE, 23 December 2009; 
G/SCM/N/202/CHE, 23 December 2009; G/SCM/N/48/CHE, 7 July 1999.  
32 WTO Agriculture Information Management System . Viewed at: http://agims.wto.org/  [January 2017].  
33 For example see: Federal Law on Customs Tariffs of 9 October 1986 (RS 632.10), Articles 7 (national 
interest) & 11 (agricultural products); and Federal Law on Extern al Economic Measures (RS 946.201), Article 1 
(emergencies).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.2.2   Export taxes, charges, and levies  
3.55.   Neither Switzerland nor Liechtenstein applies any taxes, charges, or levies on exports. 
Exported goods are exempt from VAT and exported spirits may qualify for a refund of the 
"monopoly tax".34 The Federal Law on Customs Tariffs (Article 5) provides for an export tariff as 
set out in the tariff book (Part 2), the rate of which may be changed by th e Federal Council to 
ensure national supply. However, the 47 tariff lines (eight -digit level) listed in Part 2 of the tariff 
book are exempt from export tariffs. Most of these tariff lines refer to scrap and waste metals and 
rough wood. In general, there a re no fees for customs services, although the FCA may charge a 
fee for some services, such as customs clearance outside office hours.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.56.   Switzerland and Liechtenstein maintain restrictions and prohibitions on e xports to certain 
countries on the basis of foreign and security policy and on some goods on the grounds of safety, 
security, the environment, and compliance with international conventions and treaties. In addition, 
capital and payment transactions with so me economic regions and trade with specific persons, 
organizations, or institutions may be restricted. Concerning export embargoes, Liechtenstein 
implements the relevant UN Security Council Resolutions and aligns itself with the EU Common 
Foreign and Secur ity Policy (CFSP) in regard to export embargoes.  
3.57.   Under the Federal Law on the Implementation of International Sanctions of 22 March 2002 
(RS 946.231), the Federal Council may, by means of ordinances, apply import and export 
prohibitions and restraints base d on international law, particularly decisions by the UN Security 
Council, the Organization for Security and Cooperation in Europe (OSCE), or Switzerland's principle 
trading partners. Measures currently in force under the Law are listed on the SECO website .35  
3.58.   Switzerland and Liechtenstein are states parties to the Arms Trade Treaty which sets out 
legally binding criteria for the import, export, and transfer of conventional weapons as defined in 
the Treaty, which entered into force for both countries in 2015 . 
3.59.   Switzerland is a participant in several non -binding arrangements, including the Wassenaar 
Arrangement on Export Controls for Conventional Arms and Dual -Use Goods and Technologies; the 
Missile Technology Control Regime; the Treaty on the Non -Proliferation  of Nuclear Weapons and 
the Zangger Committee; the Nuclear Suppliers Group; and the Australia Group. Liechtenstein is 
not a participant in these arrangements but applies their goods control lists in its export controls.  
3.60.   Export controls on goods and technol ogy are generally applied to ensure compliance with 
international agreements to which Switzerland is a party. In Switzerland, the legal bases for 
controls on exports of arms and dual -use goods are the Federal Law on the Control of Dual -Use 
Goods, Specific Military Goods and Strategic Goods (Goods Control Law) of 13  December 1996 (RS 
946.202), the Ordinance on the Export, Import and Transit of Goods for Civilian and Military 
Purposes and Specific Military Goods (Goods Control Ordinance) of 3  June 2016 (RS 94 6.202.1), 
the Federal Law on War Material of 13 December 1996 (RS  514.51), and the Ordinance on War 
Material of 25 February 1998 (RS 514.511). The Goods Control Ordinance extended the provisions 
of the Goods Control Law to specifically include nuclear good s, dual -use goods and military goods 
that are subject to non -binding international control measures, strategic goods subject to 
international agreements, and goods subject to national export controls.  
3.61.   Under the Federal Law on War Material, the export and transit of war material for recipients 
abroad may only be authorized if this is not contrary to international law, international obligations, 
and the principles of Swiss foreign policy (Article 22).  
3.62.   In practice, an enterprise or person wishing to export o r transit goods covered by the 
legislation must submit a request for authorization to the State Secretariat for Economic Affairs 
                                                
34 FCA online information. Viewed at: https://www.ezv.admin.ch/ezv/en/home/information -
companies/taxes -and-duties/exportation -from-switzerland/refund -of-monopoly -tax--spirits -tax-.html 
[February  2017].  
35 See 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaf
tsbeziehungen.html  [January 2017].  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 60 - 
 
  (SECO) for examination. SECO also retains the right to prevent exports of goods which do not 
require an export permit where it has reason to believe that the goods could be used for the 
development, manufacture, use, passing on, or the deployment of weapons of mass destruction.  
3.63.   Based on the Convention of 13 January 1993 on the Prohibition of the Development, 
Production, Stockpilin g and Use of Chemical Weapons and on their Destruction (RS 0.515.08), the 
Goods Control Law, the Ordinance on the Control of Chemical Products for Civilian and Military 
Purposes of 21  August 2013 (RS 946.202.21) deals with the import, export, transit and p roduction 
of chemicals listed in the annex of the ordinance. Authorization may be obtained from the Federal 
Council or SECO, depending on the type of activity requested.  
3.64.   According to the Federal Law on Nuclear Energy of 21 March 2003 (RS 732.1), the 
Ordina nce on Nuclear Energy of 10 December 2004 (RS 732.11), and the Goods Control Ordinance 
(Article 3.2), the handling (including the import, export and brokering) of nuclear materials, as 
well as the export and brokering of related technology and software, re quires an authorization by 
the Swiss Federal Office of Energy (SFOE).  
3.65.   An authorization by SECO is required for the export of listed nuclear -related equipment as 
well as related technology and software, according to the Goods Control Ordinance (Article 3).  
3.2.4   Export support and promotion  
3.66.   Switzerland eliminated export subsidies on basic agricultural goods in 2010, although 
exports of processed agricultural products may be granted export subsidies under the Federal Law 
on the Import and Export of Processed Agricu ltural Products of 13 December 1974 
(RS 632.111.72) (Section 4.1). Although Liechtenstein does not have an export subsidy regime, its 
exporters may also qualify for Swiss export subsidies.  
3.67.   Switzerland Global Enterprise (S -GE) (formerly the Swiss Office of Commercial Expansion), 
a non -profit entity under SECO, is responsible for supporting export -orientated SMEs in 
Switzerland and Liechtenstein in exporting their products. Through its 21 representative offices, or 
Swiss Business Hubs, it provides information , consulting, and marketing services. S -GE also runs 
the "Cleantech" programme for enterprises producing goods and services seen as protecting and 
preserving natural resources. The total contribution from the Confederation to S -GE's export 
promotion was Sw F 21 million in 2014 and 2015, representing about half of S -GE's total income in 
each year.  
3.2.5   Export finance, insurance, guarantees  
3.68.   In addition to private -sector export finance, insurance, and guarantees, Swiss Export Risk 
Insurance (SERV), which is owned by  the Swiss Confederation, provides protection against non -
payment, facilitates the financing of exports, and helps companies to maintain their liquidity. SERV 
operates under the Federal Law on Swiss Export Risk Insurance of 16 December 2005 (RS  946.10) 
and the Ordinance on Swiss Export Risk Insurance of 25 October 2006 (RS  946.101) which provide 
that:  
  SERV should supplement and not replace insurance provided by the private sector by 
providing cover for risks that the private sector will not cover or for w hich there is 
inadequate supply of insurance;  
  SERV should be economically viable and not incur any long term costs for the Swiss 
Confederation; and  
  SERV should comply with foreign policy objectives concerning the environment, 
development, human rights, d emocracy, etc.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.69.   In addition, the SERV website states that SERV complies with the OECD Arrangement on 
Officially Supported Export Credits and the Berne Union Guiding Principles.36 
3.70.   To qualify for export insurance from SERV, the exporter must have a registered office in 
Switzerland and be listed on the Commercial Register, the buyer must be domiciled outside 
Switzerland, and the goods or services being exported must be of Swiss origin or, in most cases, 
have a total foreign content of no more than 50%.  
3.71.   The Law a nd Ordinance were amended in 2014, with effect from 1 January 2016. The 
principle changes confirmed temporary measures taken in 2009 and 2011 to extend the product 
range and insurance cover. Under the amendments, the Federal Council may allow SERV to 
resch edule its debts. In addition, SERV may provide counter guarantees, working capital 
insurance, letter of credit confirmation insurance, and refinancing guarantees (Table 3.13). On 
1 September 2011, SERV introduced a new premium schedule based on the OECD Ar rangement on 
Officially Supported Export Credits.37  
Table 3.13 Insurance products available from SERV, 2016  
 Cover ratio  Risks covered  
Exporters  
Supplier credit insurance  95% Political, transfer, force majeu re, economic  
Pre-shipment  95% Political, economic  
Contract bond  95% Political, force majeure  
Counter guarantee  100%  Non-payment of the institution granting the export credit  
Confiscation risk  95% Political, force majeure  
Multi-buyer  .. Political, tran sfer, force majeure , economic  
Service  95% Political, transfer, force majeure , economic  
Financial institutions  
Working capital  95% Non-payment by exporter to financial institution  
Buyer credit  95% Political, transfer, force majeure , economic  
Letter of  credit confirmation  95% Political, transfer, force majeure , economic  
Refinancing  100%  Non-payment of the institution granting the export credit  
.. Not available.  
Source:  SERV. Viewed at: http://www.serv -ch.com/e n/ [October 2016].  
3.72.   SERV's net exposure increased steadily from 2012 to 2015 (from SwF 8,195 million to 
SwF 10,494 million). While it has made an operating profit in all years except one, its operating 
loss in 2011 was SwF 55 million, compared to operating  profits of SwF 111 million in 2014 and 
SwF 59 million in 2015.38 
3.3  Measures Affecting Production and Trade  
3.3.1   Internal taxes  
3.3.1.1   Corporate income tax  
3.73.   In Switzerland, corporate income is taxed at the federal as well as at the cantonal and 
communal level.39 The federa l tax is levied at a flat rate of 8.5% on net corporate income.40 
Cantonal corporate income taxes are determined by the cantons themselves and range from 5.9% 
to 16% on net profits and from 0.05% to 0.3% on the net wealth of enterprises.  
                                                
36 SERV online information. Viewed at: http://www.serv -ch.com/en/organisation/legal -framework -
conditions/  [January 2017].  
37 SERV online information. Viewed at: http://www.serv -ch.com/en/premiums/premium -composition/  
[January 2017].  
38 Swiss authorities and SERV annual reports. Viewed at: http://www.serv -
ch.com/en/organisation/about -serv/ [January 201 7]. 
39 The communes levy the corporate income tax themselves in the vast majority of the cantons. In 
some cantons, the communes do not levy the tax but participate in the canton's earnings or the canton collects 
a surcharge for the communes.  
40 The tax is c alculated on income net of tax, resulting in an effective federal tax rate of 7.83% on net 
profits.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.74.   The practice of pr ivileged tax treatment of earnings abroad for holding, domiciliary and 
mixed companies operating internationally (so -called "ring fencing") by Swiss cantons has been 
criticized by the OECD and by the EU. The Swiss Federal Parliament adopted a third series of 
Corporate Tax Reform (CTRIII) measures on 17 June 2016, specifically addressing these "ring 
fencing" issues. However, CTRIII was rejected in a popular vote on 12 February 2017. The Federal 
Council will analyse the result of the vote and develop a new bi ll.  
3.75.   Liechtenstein imposes a 12.5% tax on the net corporate income of all economically active 
companies (Table 3.14). Public enterprises not engaged in economic activities, institutions for 
occupational retirement, and legal entities engaged exclusively in  charitable activities are tax 
exempt. The 2010 Tax Act contains a provision on non -economically active "private asset 
structures".41 The implementation of certain requirements under the OECD's action plan on base 
erosion and profit shifting (BEPS) has been  the subject of a number of amendments to the Tax 
Act. The amendments were adopted by Parliament in November 2016 and entered into force on 
1 January 2017.  
Table 3.14 Liechtenstein corporate taxes and other s elected taxes, January 2016  
Tax base  Standard tax rates  
Corporate income tax (annual): annual net income  12.5% (minimum SwF 1,200)  
Private asset structures  SwF 1,200  
Formation tax: formation of share capital (applicable only 
when the Swiss provisions on  stamp duties do not apply)  Capital > SwF 1,000,000: 1%  
Capital > SwF 5,000,000: 0.5%  
Capital > SwF 10,000,000: 0.3%  
Real-estate gains tax (per sale of real estate located in 
Liechtenstein)  Maximum 24%  
Personal income tax (worldwide income)  Maximum 24%  
Net wealth tax (worldwide net assets)  
 Maximum 0.96%  
 
Intellectual property related income  80% of net income is tax -exempt  
Note:  The provision on intellectual property related income (IP Box) was abolished for new applicants with 
effect from 1  January 2 017. Existing beneficiaries may continue to make use of the IP Box for 
another four years.  
Source:  Information provided by the Liechtenstein authorities.  
3.3.1.2   Indirect taxes  
3.76.   Switzerland and Liechtenstein apply certain indirect taxes that are also levied on imp orts, 
notably value added tax (VAT), but also a motor vehicle tax, a consumption tax on mineral oils 
and fuels, a CO2 tax on fossil fuels, an incentive fee on volatile organic compounds (VOCs), and 
taxes on tobacco and alcoholic beverages (beer and spirits ). Liechtenstein applies an excise tax on 
salt in lieu of a monopoly fee applied in Switzerland.42 VAT is a significant source of government 
revenue in Switzerland, accounting for roughly one third of total receipts at the federal level.43 The 
mineral oil ta x and the tobacco tax are the principal revenue generators among the other taxes 
(Chart 1.3).  
3.3.1.2.1   VAT 
3.77.   VAT is charged on imported as well as domestically produced goods and services.44 
Imported goods are subject to VAT on the tariff -inclusive value and imported  services on the "cost 
of services provided". Switzerland and Liechtenstein constitute a common area for the application 
of VAT.45  
                                                
41 The EFTA Surveillance Authority has confirmed the compatibility of this  provision  with EEA law. EFTA 
Surveillance Authority online information. Viewed at : www.eftasurv.int/media/decisions/44 -11-COL.pdf .  
42 The tax rate (per tonne) varies according to end use, i.e. SwF 175 for packaged edible salt, SwF 1 
(road salt), SwF 0.94 (industrial use), and SwF 5 (other purposes).  
43 Revenue from VAT has been relatively stable during 2013 -15, amounting to approximately 
SwF 22.5 billion per year.  
44 Nearly 367,000 enterprises were registered for payment of VAT as of May 2015.  
45 The valleys of Samnaun  and Sampuoir are not part of the customs territory of Switzerland, and the 
VAT Law is therefore only applied to services. However, the communes of Samnaun and Valsot must 
compensate the federal government for the loss of revenue from VAT not being applied  to goods.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.78.   Value added tax was introduced in 1995, replacing a tax on retail sales of goods. The 
general rate was set at 6.5% with a low er rate (2.0%) applicable principally to foodstuffs. A 
special rate for accommodation services (3%) came into effect on 1 October 1996. Subsequent 
increases in the VAT rates, most recently adopted in 2009, earmark the additional revenue for 
specific purpos es.46 Current VAT rates, applicable since 1 January 2011, are valid until 31 
December 2017. The exemptions to the scope of the law are limited (Table 3.15). Exports and gold 
for investment purposes are zero rated.  
Table 3.15 VAT rates  
Products concerned  Rate 
Most goods and services  8% 
Reduced rate applicable to certain goods including tap water; foodstuffs and additives; animals, 
poultry, and fish; cereals; animal feed, silage acids, and scatterings for anim als; fertilizers, 
pesticides, mulch and other vegetation used as covering material (e.g. finely chopped materials, 
wood chips); medications; newspapers, magazines, books and other printed matter; services of 
radio and television companies; cultural and spo rts events; and agricultural supplies for initial 
production and cultivation (VAT Law Article 25, para. 2a)  2.5%  
Special rate for accommodation services applicable until 31 December 2017  3.8%  
Goods in small quantities of insignificant value; human organs  by recognized medical institutions; 
certain goods entered into Swiss territory exempt from customs duties; goods imported as part of 
supplies for airlines; goods entered into under temporary admission and inward processing 
procedure; electricity and natur al gas in pipes or cables (VAT Law, Article 53)  Exempt  
Source:  Information compiled by the WTO Secretariat, based on the Federal Law Regulating Value Added Tax 
of 2 September 1999 (RS 641.20); Ordinance on Value Added Tax (RS 641.201); and Federal 
Customs  Administration remarks on the value added tax. Viewed at: 
http://www.ezv.admin.ch/dokumentation/04032/04924/index.html?lang=en . 
3.3.1.2.2   Excises  
3.79.   Imported and domestically produced motor vehicles are subject to a tax of 4%. The 
calculation base is, in principle, the same as for value added tax. Electric cars and motor vehicles 
for persons with disabilities are tax exempt. The 4% tax is not applied to motor vehicles weighing 
more than  3,500 kg as these are subject to a heavy vehicle charge.  
3.80.   Mineral oils and fuels are taxed in accordance with the Federal Law on the Taxation of 
Mineral Oils of 21 June 1996 (RS 641.61). The tax, which includes a surcharge on engine fuels, is 
differentiat ed by product and end use. For example, the tax (per litre) is set at SwF 0.7587 for 
diesel, SwF 0.7312 for unleaded petrol, and SwF 0.003 for extra -light heating oil. Engine fuels 
used in agriculture, forestry, professional fishing, natural stone mining, by licensed transport 
companies, or (since 1 October 2016) in snowcats are subject to reduced rates. Aircraft may be 
exempt from the tax. Since July 2008, tax rebates (up to SwF 0.72 per litre) have also been 
accorded to biofuels (e.g. biogas, bioethanol, biodiesel, vegetable and animal oils) provided the 
production complies with established minimum ecological and social criteria.  
3.81.   The CO2 levy, which entered into force on 1 January 2008, is designed to reduce the use of 
fossil fuels and thus the associated  CO2 emissions. The tax rate was originally set at SwF 12 per 
tonne of CO2, gradually rising to SwF 60 per tonne in 2014 with further increases anticipated in 
2016 and 2018, depending on the CO2 emission targets triggering the tax hikes. The maximum 
levy e stablished in the legislation47 is SwF 120 per tonne of  CO2. From 1 January 2016, the levy 
has been set at SwF 84 per tonne of CO2 which, inter alia , translates into SwF 216.70 per 1,000 kg 
of natural gas, or SwF 222.60 per 1,000 litres of extra -light heati ng oil (at 15°C). Energy -intensive 
industries are exempted from the CO2 levy provided they participate in Switzerland's Emissions 
Trading Scheme (ETS) or otherwise commit to emission reductions (non -ETS).  
3.82.   The purpose of the tax on volatile organic compound s (VOCs) is to provide an incentive to 
reduce the use of such substances in products such as paints, varnishes, and various cleaning 
                                                
46 The rate increase applied from 1 January 1999 is dedicated to the financing of the Old Age and 
Survivors' Insurance, and the increase from 1 January 2001 to major railway construction projects. The most 
recent increase is earmarked for the di sability insurance scheme. VAT revenue is not earmarked in 
Liechtenstein.  
47 Federal Law on the Reduction of CO 2 Emissions of 23 December 2011 (RS 641.71) and Ordinance on 
the Reduction of CO 2 Emissions of 30 November 2012 (RS 641.711).   WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 64 - 
 
  solutions.48 The tax is levied on imports and on domestic production. On imports, the tax is 
generally collected at the time  of importation, and the quantity of VOCs in the concerned goods 
must be stated in the import declaration. The tax rate is SwF 3 per kg. Goods may be exempted 
from the VOC tax if they are used in such a way that the substances are not released into the 
environment, or if they are exported. The tax has been designed not to distort cross -border 
competition. The proceeds from this tax, approximately SwF 120 million annually, are redistributed 
to the population in equal amounts through the health insurance comp anies.49  
3.83.   The tobacco tax is levied on imported and domestically produced cigarettes, cigars, and 
other tobacco products.50 The tax may be a compound rate or ad valorem . For cigarettes, the 
compound rate amounts to SwF 118.32 per 1,000 cigarettes plus 25% ad valorem  of the retail 
selling price.51 In addition, each cigarette sold is subject to a tax of SwF 0.0013 for the domestic 
tobacco financing fund (SOTA) and SwF 0.0013 for the Tobacco Control Fund.52 All importers of 
tobacco goods must be registered with th e Directorate General of Customs, Section for Tobacco 
and Beer Taxation. A prerequisite for entry into the register is that the applicant is domiciled in 
Switzerland or maintains Switzerland as his/her principal place of business. The applicant must 
also f ile an end -use commitment ( revers ) confirming that he/she will comply with the trading 
regulations.  
3.84.   Regarding the taxation of alcoholic beverages, imported and domestically produced beer is 
taxed in accordance with the Federal Law on the Taxation of Beer of 6 October 2006 (RS 641.411) 
and monopoly duty is levied on alcopops and distilled spirits (Table 3.16). The beer tax is 
determined according to the degree of strength of the beer on the basis of the original extract 
(degree Plato), and the monopoly duty  on other alcoholic beverages is directly related to the pure 
alcohol equivalent contained in the products.53 Foodstuffs containing alcohol are taxed at the rate 
applicable to the alcoholic product included therein. Ethanol for industrial purposes (denature d) 
and wines, other than sweet wine and vermouth, are tax exempt in Switzerland and in 
Liechtenstein. The tax rate for beer has been unchanged since 2007, as has the monopoly duty on 
other alcoholic beverages since 1999.  
3.85.   As noted in Section 3.13 , the 2016  amendments to the Federal Law on Alcohol entail certain 
gradual changes in the present regime, including the privatization of Alcosuisse, taxation reform, 
and liberalization of the ethanol market. The Swiss Alcohol Board is to be integrated into the 
Feder al Customs Administration.  
Table 3.16 Taxation of alcoholic beverages  
Product  Unit Tax rate 
(SwF)  Legal basis  Responsible agency  
Distilled spirits  LPA 29.00  RS 680  Swiss Alcohol Board  
Sweet wine and vermout ha LPA 14.50  RS 680  Swiss Alcohol Board  
Alcopopsb LPA 116.00  RS 680  Swiss Alcohol Board  
Ethanol for consumption  LPA 29.00  RS 680  Swiss Alcohol Board  
Ethanol for industrial purposes   0 RS 680  Swiss Alcohol Board  
Light beer (up to 10.0° Plato)  hl 16.88  RS 641.411, 
RS 817.0  Federal Customs 
Administration  
Normal and special beer (10.1 
to 14.0° Plato)  hl 25.32  RS 641.411, 
RS 817.0  Federal Customs 
Administration  
                                                
48 A positive list of such VOCs subject to taxation may be consulted (in French) at: 
http://www.ezv.admin.ch/pdf_linker.php?doc=voc_stoff_positivliste_f&lang=fr .  
49 The health insuran ce companies have been chosen for this task as all persons residing in Switzerland 
are required to have health insurance. A portion of the revenue from the CO 2 levy is also redistributed in this 
manner. Federal Office for the Environment online information . Viewed (in French) at: 
www.bafu.admin.ch/dokumentation/medieninformation/00962/index.html?lang=fr&msg -id=39100 .  
50 Nearly 97% of the revenue de rived from the tobacco tax in 2015 pertained to the taxation of 
cigarettes.  
51 The specific component has increased from SwF 114.94 per 1,000 units since the last review; the ad 
valorem  rate is unchanged.  
52 SOTA is a purchasing society for domestically gr own tobacco. Domestic tobacco accounted for 3.2% 
of the tobacco used by Swiss manufacturers of tobacco products in 2015.  
53 Monopoly duty is not applied to beverages with an alcoholic strength of 1.2% vol. or less.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Product  Unit Tax rate 
(SwF)  Legal basis  Responsible agency  
Strong beer (over 14° Plato)  hl 33.76  RS 641.411, 
RS 817.0  Federal Customs 
Administration  
Natur al wine up to 18% alcohol 
by volumec  0 RS 817.0  Federal Office for Agriculture  
Note:  LPA refers to litre of pure alcohol, and hl refers to hectolitre.  
a Including wines made from fruit, berries and other raw materials (15% to 22% alcoholic strength by 
volume; ex HS 2206); sweet wines, specialities and mistelles (alcoholic strength by volume not 
exceeding 22% vol.; ex HS 2204.2150 and 2204.2950); and vermouths and other wines of fresh 
grapes (alcoholic strength by volume not exceeding 22% vol.; HS 2205). Sweet wines with a 
minimum sugar content of 45 g/l and 15% to 18% alcoholic strength by volume are not subject to 
monopoly duties.  
b Sweetened alcoholic beverages consisting of a mixture of spirits and lemonades, fruit juices or other 
alcoholic or non -alcoholic beverages.  
c The Federal Law on Foodstuffs and Basic Commodities of 9 October 1992 (RS 817.0) provides a 
definition of natural wine. In case of doubt, the Swiss Alcohol Board uses laboratory analyses to 
determine whether an alcoholic beverage is ta xed or not.  
Source:  Swiss Alcohol Board online information. Viewed at: 
https://www.eav.admin.ch/eav/en/home/themen/steuersaetze.html ; and Federal Customs 
Administration online in formation. Viewed at: 
http://www.ezv.admin.ch/pdf_linker.php?doc=Tares_Monopolgebuehren&lang=en .  
3.3.2   Incentives and other assistance  
3.86.   The Federal Law on Financial Support  and Subsidies of 5 October 1990 (RS  616.1) 
establishes a framework for the granting of subsidies at the federal level, outlining notably the 
eligibility criteria and general procedures.54 Assistance is mainly provided in the form of financial 
transfers and  tax exemptions. Article 5 of the Law requires the Federal Council to review 
periodically, i.e. at least every six years, subsidies accorded by the Federal Government with a 
focus on the efficiency and effectiveness of individual programmes. The Federal Co uncil report 
published in May 2008 evaluated 228 subsidy programmes (out of 361). The report recommended 
the termination or revision of 70 programmes, as these were found to have become redundant due 
to structural changes or inefficient relative to their s tated goals.  
3.87.   The Federal Council report published in 2008 was the last of its kind. In September 2014, 
Parliament amended the reporting requirements under the Federal Law on Financial Support and 
Subsidies. The subsidy examination process has been simplif ied, but is not intended to be less 
rigorous. Each year, starting from 2014, one of the seven federal departments reviews its 
subsidies. The procedure leads to a six -year cycle, during which all subsidies accorded by the 
Federal Government are examined. Th e Federal Council presents the results of each year's review 
in the Swiss state financial statements. The new examination process did not change the purpose 
of the review. The focus is still on the efficiency and effectiveness of individual programmes as 
described above.  
3.88.   The Federal Administration maintains a database, by expenditures, for about 300 federal 
subsidies.55 Payments amounted to more than SwF 37 billion in 2015, principally for social security 
programmes (47%), education and research (17%), and transportation (14%). Programmes 
administered by the State Secretariat for Economic Affairs (SECO) accounted for approximately 
3% of the total outlays.  
3.89.   Switzerland's notifications to the WTO pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the  Agreement on Subsidies and Countervailing Measures provide information on 
subsidies accorded to agriculture and industry. The non -agricultural subsidy programmes 
(including forestry) in Switzerland's most recent notification are summarized in Table 3.17.  
                                                
54 Subsidies are also provided by sub -federal authorities.  
55 Financial outlays may be retrieved by theme, department, or budget line. The database is accessible 
in (German or French) at: 
http://www.data.efv.admin.ch/subventionen/f/dokumentation/finanzpolitik_grundlagen/subv_subvueberpruefu
ng.php .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table 3.17 Federal assistance, 2010 -15 
(SwF million, unless otherwise indicated)  
Programme/industry  Outlays   Legislation  
 2010  2011  2012  2013  2014  2015   
Measures in application of regional policy   Article 4  of the Federal Law on 
Assistance for Zones under Economic 
Renewal of 6  October 1995 (Official 
Collection of Federal Law 2006 
4301), Federal Ordinance (Official 
Collection of Federal Law 4305) and 
the Federal Ordinance of 
12 June 2002 (Official Collection of 
Federal Law 2007 6907)  Guarantees for investment 
credits  28.8 23.3 13.1 8.5 4.2 0.5 
Losses on guarantees  0.9 0.4 4.7 0 0 0 
Assistance for SMEs operating in arts and crafts   Federal Law on Financial Assistance 
for Surety Organizations Acting on 
Behalf of SMEs of 6 October 2006 
(RS 951.25)  Volume of granted loans  214.5  210.7  218.2  227.0  238.2  244.5  
Number of sureties  1,654  1,653  1,660  1,694  1,745  1,749  
Assistance for mountain and rural areas   Federal Law on the Granting of Credit 
Guarantees and L oan Interest Service 
Contributions in Mountain Regions 
and Rural Areas in General of 
25 June 1976 (RS 901.2).  These 
areas are defined in the Federal 
Ordinance on Regional Policy of 
28 November  2007 (RS  901.021)  Losses on guaranteed 
loans 0.6 1.3 0.2 0.4 0.1 0.1 
Federal commitments as a 
whole (total amount)  14.6 9.7 7.4 5.3 4.1 3.3 
Contributions to interest 
servicing  0.3 0.2 0.2 0.1 0.1 0.1 
Environmental policy    
CO2 tax refund to specific 
industries  n.a. n.a. n.a. 43 47.4 .. Article 31 of the Federa l Law on the 
Reduction of CO2 Emissions of 
23 December 2011  
Forestry  130 120 131 140 138 .. Federal Law on Forests of 4 October 
1991 (RS  921) and Federal 
Ordinance on Forests (RS  921.01)  
.. Not available.  
n.a. Not applicable.  
Source:  WTO documents G/SCM/ N/220/CHE, 24 June 2011; G/SCM/N/253/CHE, 21 June 2013; 
G/SCM/N/284/CHE, 13 July 2015; and information provided by the Swiss authorities. Data for the 
forestry sector may be consulted at: www.bafu.admin.ch/wald/01254/11353/index.html?land=de  (in 
German or French).  
3.90.   The Federal Law on Regional Policy of 6 October 2006 (RS 901.0) launched a New Regional 
Policy (NRP) with its first programming period covering 2008 -15.56 The policy prov ides tax relief 
for projects of private enterprises in mountainous, rural, and border regions and areas with 
specific structures. A project must be innovative, and maintain or create jobs locally in order to 
qualify for support. Full or partial tax relief is granted for up to ten years to manufacturing 
enterprises or services companies with activities closely linked to the manufacturing process. The 
tax relief is granted as an absolute amount (rather than a percentage) starting from 1 July 2016. 
Guarantees for investment credits granted under the previous legislation (Federal Law of 6 October 
1995) had a maximum duration of eight years, and the last such guarantees thus expired in 2016.  
3.91.   According to Regiosuisse, the Federal Government supported more than 1, 500 projects with 
a total of SwF 220 million in non -reimbursable transfers within the framework of the NRP over the 
period 2008 -14.57 An additional SwF 315 million was provided in the form of (repayable) credits to 
320 other projects. The federal contributi ons were matched by equivalent funds provided by the 
cantons. The subsidies were supplemented by capital raised by the private sector and the 
communes.58  
3.92.   The Confederation and the cantons established a working group ("NRP 2016+") in 2012 to 
evaluate the ef fect of the first phase and to prepare a new programme for 2016 -23. The second 
phase focuses on manufacturing, assisted by regional innovation systems, and tourism. A specific 
"impulse" programme has been created for the tourism sector for 2016 -19. Parliam ent has 
                                                
56 Each programming period is divided into two four -year implementation cycles.  
57 Regiosuisse online information. Viewed at: http://archive.regiosuisse.ch/news -agenda -en/news/die -
neue-regionalpolitik -ist-gefragt?set_language=en  and http://archive.regiosuisse.ch/new -regional -policy/new -
regional -policy -nrp/docs/regionalpolitik/regios -nrp-bilanz.pdf .  
58 The private sector share of the inve stment projects ranged from 44 to 66%.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  approved a federal contribution of SwF 230 million to the Fund for Regional Development for the 
current eight -year period.  
3.93.   Switzerland participates in the European Territorial Cooperation (ETC) through Interreg, 
ESPON and URBACT, which are element s of the EU's regional policy framework for 2014 -20. The 
participation adds a cross -border, transnational and inter -regional component to Switzerland's 
NRP.  
3.94.   In accordance with the Federal Law on the Granting of Credit Guarantees and Loan Interest 
Service Contributions in Mountain Regions and Rural Areas in General of 25 June 1976 (RS 901.2), 
the Confederation provides subsidies to the Swiss Guarantee Cooperative for the Arts and Crafts 
which, in turn, issues sureties to small and medium -sized enterprises. The programme also 
involves interest -servicing contributions on long - and medium -term capital loans of these 
enterprises. Payments are only made to establishments that are profitable, or with a likelihood of 
developing further, that are not already support ed in other ways by the Confederation. The 
programme is of unlimited duration.  
3.95.   The Federal Law on the Reduction of CO 2 Emissions of 23 December 2011 (RS  641.71) 
authorizes energy -intensive industries to be exempted from the Swiss CO 2 levy on the condition  
that they participate in the Swiss Emissions Trading Scheme (ETS)59 or commit to reducing 
emissions (non -ETS). Large, greenhouse gas -intensive enterprises are required to enrol in the 
ETS, while medium -sized companies participate on a voluntary basis. Comp anies in certain sectors 
particularly affected by the CO 2 levy may apply for exemption, provided that they commit to 
emission reductions. Reimbursements (non -ETS and voluntary ETS) amounted to SwF  43 million in 
2013 and SwF 47.4 million in 2014 (Table 3.17 ).60 Sanctions apply to enterprises that fail to meet 
their reduction targets.  
3.96.   The Federal Government compensates forest owners for services rendered to the public, 
such as the maintenance of protection forests and the conservation of biodiversity. Indemni ties 
and financial assistance are provided in accordance with the Reorganization of Financial 
Equalization (NFA) programme of 2008, whereby the federal grants are made available based on 
cantonal proposals. The subsidies to the forest sector for defined pr oducts and services are 
implemented by the cantons.  
3.97.   The Swiss federal government does not fund companies directly, but maintains a range of 
instruments to assist companies in accessing needed credit. One of these instruments is designed 
exclusively for sm all and medium -sized enterprises (SMEs) operating in sectors other than 
agriculture. According to the Federal Law of 6 October 2006 on Financial Assistance for Surety 
Organizations Acting on Behalf of SMEs (RS 951.25), the federal government covers 65% of the 
exposure and parts of the administrative costs of guarantee cooperatives assisting promising small 
and medium -sized enterprises in obtaining bank loans. The cooperatives offer loan guarantees of 
up to SwF 500,000.61  
3.98.   The Confederation continues to provi de financial support for the investigation, monitoring, 
and rehabilitation of polluted sites. A tax on the deposit of waste in landfills is applied for this 
purpose. The funds available from the tax amount to approximately SwF 40 million per year, 
whereas expenditures depend on the demands of the cantons. Outlays totalled SwF 40.8 million in 
2014 and SwF 38.8 million in 2015.  
3.99.   According to the legislation relating to volatile organic compounds, companies may be 
exempted from the tax (Article 9) provided tha t they modify their stationary installations (i.e. 
install purification plants) to reduce emissions to significantly below the limit values stipulated in 
the Air Protection Ordinance, or reduce VOCs emissions at every step of the production process 
accordi ng to the best available technique.62   
                                                
59 Switzerland's ETS is aligned with the ETS of the European Union for the period 2013 -20. 
60 These figures do not include reimbursements to mandatory participants in the ETS as such payments 
are not considered to be su bsidies.  
61 One cooperative for women (SAFFA) operates at the national level, and three regional cooperatives 
together cover the entire territory of Switzerland.  
62 The best available technique is updated every five years.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.100.   Liechtenstein's policies do not provide for special protection or internal assistance to 
domestic industries.  
3.3.3   Standards and other technical requirements  
3.101.   In most sectors, the Swiss federal authorities have the exclusiv e authority for adopting 
technical regulations, while the cantons are mainly responsible for implementation and market 
surveillance. The Federal Law on Technical Barriers to trade requires the compatibility of technical 
regulations with those of Switzerlan d's main trading partners.63 New technical regulations (laws 
and ordinances) are subject to regulatory impact analysis. Switzerland has regularly notified its 
draft technical regulations, ordinances, and conformity assessment procedures to the TBT 
Committee .64 Since the last review, no specific trade concerns have been raised in the TBT 
Committee regarding Switzerland's or Liechtenstein's measures.  
3.102.   The Liechtenstein Act of 1995 on the marketability of goods, as amended in 2016, 
stipulates that goods produced  either in conformity with Swiss or EEA regulations may be sold in 
Liechtenstein. For example, EEA -originating non -agricultural products that do not comply with the 
Swiss regulations, such as pharmaceuticals, may be imported into Liechtenstein under the Ma rket 
Control and Surveillance Mechanism ( Section 2.3. 2.2).65 
3.103.   Since the last review, Switzerland has further aligned its technical requirements with those 
of the EU. Swiss legislation was aligned (in 2012) with EU Regulation 305/2011 on Construction 
Products  and (in 2016) with EU Regulation 1223/2009 on Cosmetic Products.66 For cosmetic 
products, there are some remaining regulatory differences, for example, Switzerland does not 
require notification of cosmetics. Under the new rules, a safety report must be pro vided to the 
authorities upon request. On 25 November 2015, Switzerland adopted a package of revisions 
harmonizing ten Swiss ordinances with the regulatory framework of the EU for the marketing of 
products (New Legislative Framework).67 In general, this ref orm package harmonizes the 
definitions in Swiss legislation, as well as the obligations of manufacturers, authorized 
representatives, importers and distributors, with those of the EU. It also establishes new 
requirements for conformity assessment bodies to  ensure a consistent level of quality for 
conformity assessment procedures.  The revised technical regulations entered into force in 2016.  
3.104.   On 1 July 2010, Switzerland had introduced the " Cassis de Dijon " principle as a new, 
additional trade policy instrumen t to dismantle technical barriers to imports from the EU and EFTA 
markets and thereby enhance import competition and help reduce the high prices prevailing in 
Switzerland.68 Under the "Cassis de Dijon" principle, products that are lawfully put into circulat ion 
on the EU and EEA markets and comply with the technical requirements of the EU or the EEA69 
may be placed on the market in Switzerland without any prior inspection or other conformity 
assessment, even if the products do not comply with Swiss technical r equirements.  
3.105.   From the beginning, there have been a number of exceptions to the "Cassis de Dijon" 
principle. The instrument is not applicable to products that are subject to an import permit; import 
prohibition; authorization; notification pursuant to the Swiss legislation concerning chemicals; or 
an exemption granted by the Federal Council. Products affected by the exceptions include 
pharmaceuticals, certain chemicals70, certain dangerous substances, certain detergents, fertilizers, 
                                                
63 Loi fédérale sur les entraves techniques au commerce (LETC), RS 946.51, Article 4, paragraph 2.  
64 2012: 25; 2013: 9; 2014: 11; 2015: 27; Total: 72.  
65 The legal basis is EEA Council Decision 1/95 (viewed at: http://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=CELEX%3A21995D0420(01)  and Article 3 of the Adaptation of the Customs Union Treaty.  
66 Ordinance on Cosmetic Products (RS 817.023.31), as amended. See also WTO document 
G/TBT/N/CHE/146, 24 Fe bruary 2012.  
67 The EU "alignment package" sectors are: lifts; simple pressure vessels; pressure equipment; 
equipment and protective systems intended for use in potentially explosive atmosphere (ATEX); electrical 
equipment (electromagnetic compatibility); m easuring instruments; non -automatic weighing instruments; 
explosives for civil use; and radio and telecommunication equipment. See WTO notifications G/TBT/N/CHE/185 
to CHE/194.  
68 For more details, see 2013 TPR of Switzerland and Liechtenstein.  
69 Or those o f the EU/EEA member States in case of partially or non -harmonized rules.  
70 Certain chemicals may be placed on the market according to the "Cassis de Dijon" principle. See 
Federal Office of Public Health online information at: 
http://www.bag.admin.ch/anmeldestelle/12778/12780/index.html?lang=en . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  plant protection product s, certain measuring instruments, certain motor vehicles, boats, certain 
animal feedstuffs, GMOs, and certain foodstuffs. The SECO keeps an indicative list of exceptions as 
a guide for operators (negative list).71  
3.106.   Food imports are covered by the "Cassis de  Dijon" principle, but s pecial arrangements are 
in place prior to their first sale in Switzerland. Food items that do not conform to Swiss technical 
requirements are subject to approval by the Federal Food Safety and Veterinary Office in the form 
of a gene ral ruling ( décision de portée générale ), which is normally issued within 60 days. Products 
benefiting from these arrangements are mainly products for which differences in standards or 
labelling requirements exist. There has been limited commercial use of the "Cassis de Dijon " 
principle for  the purposes of marketing imported foodstuffs; the Federal Food Safety and 
Veterinary Office has approved 40 applications since 2010. In 2016, a parliamentary initiative to 
exclude foodstuffs from the "Cassis de Dijon" p rinciple was rejected by Parliament.  
3.107.   In 2013, the SECO issued a preliminary, generally positive assessment of the economic 
impact of the "Cassis de Dijon" principle. However, it found no empirical evidence for the expected 
price declines due to enhanced im port competition and parallel imports – in any case, because of 
the appreciation of the Swiss franc, price effects would be difficult to isolate, according to the 
SECO.72 However, in a recent assessment, the SECO concluded that the numerous exceptions 
dimin ish the effectiveness of the "Cassis de Dijon" principle.73  
3.108.   There have been no major changes to Swiss labelling requirements. Labelling requirements 
are generally set out in sector -specific technical regulations. Some Swiss labelling requirements 
are maint ained (as an exception to the " Cassis -de-Dijon " principle) with the objective of allowing 
consumers to make an informed choice or to prevent deception. Country of production labelling is 
mandatory for all imported and domestic foodstuffs and some raw mater ials used in food.74 
According to the authorities, this is because the indication of the country of manufacture cannot be 
inferred from the origin of the product and provides relevant information to help consumers decide 
which product they wish to buy. In a ccordance with the Agricultural Ordinance on Declaration75, 
imports of meat and eggs produced in a manner prohibited in Switzerland must be labelled as 
such. Banned production methods, which must be labelled, include the use of hormones, 
antibiotics, and ot her antimicrobial substances such as performance stimulators for meat, and 
eggs from hens reared in battery cages. The ordinance was amended on 1 July 2015 to include 
beta-antagonists (including ractopamine).76 The labelling requirements apply from the poin t of sale 
to the final consumer in retail trade and in establishments where meals are prepared for the 
public, such as restaurants.  The labelling requirements for GMOs remain unchanged.77 
3.109.   A revision of the Federal Law on Medicinal Products and  Medical Devic es of 
15 December  2000 (Law on Therapeutic Products) is underway.78 The draft law aims to improve 
the population's access to medicinal products and the conditions for biomedical research and 
industry, as well as reduce unnecessary technical barriers to trad e (e.g. through simplified 
authorization procedures) and align Swiss with EU and international legislation.79  
                                                
71 SECO online information. Viewed at: 
https://www.seco.admin.ch/seco/fr/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaf
tsbeziehungen/Technis che_Handelshemmnisse/Cassis -de-Dijon-Prinzip/Ausnahmen_Cassis -de-Dijon-
Prinzip.html . 
72 SECO online information. Viewed at: 
https://www.secolive.admin.ch /aktuell/00277/01164/01980/index.html?lang=fr&msg -id=48605 . 
73 SECO (2016), "Barriers to Parallel Imports". Viewed at: 
https://www.seco.admin.ch/seco/fr/home/Publikationen_Dienstleistungen/Publikationen_und_Formulare/konsu
m-und-preise/Preisunterschiede/behinderung -von-parallelimporten.html . 
74 Articles 15 and 16 of the Ordin ance of the Federal Department of the Interior (DFI) on Labelling and 
Advertising of Foodstuffs (RS 817.022.21).  
75 Ordonnance relative à la déclaration de produits agricoles issus de modes de production interdits en 
Suisse  (RS 916.51 ). 
76 WTO document G/TB T/N/CHE/199, 13 August 2015.  
77 Ordinance of the Federal Department of the Interior (DFI) on Genetically Modified Foodstuffs 
(RS 817.022.51).   
78 RS 812.21.  
79 The proposed changes were notified to the TBT Committee in the G/TBT/N/series: CHE/105, 
CHE/125, CH E/130, CHE/132, CHE/133, CHE/135, CHE/140, CHE/141, and CHE/144.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.110.   There are no new developments regarding conformity assessment procedures. The Swiss 
Accreditation Service (SAS), which is administratively subordi nate to the SECO but otherwise 
independent with its own budget, is responsible for the accreditation of laboratories and inspection 
and certification bodies. Switzerland has mutual recognition agreements (MRAs) with the EU 
(covering 20 industrial sectors),  EEA/EFTA, Canada, and Turkey. For selected agricultural products, 
Switzerland and the EU recognize the equivalence of their respective laws in order to facilitate 
trade.80  
3.111.   In Liechtenstein, conformity assessment bodies are accredited by the Liechtenstein 
Accreditation Service.81 Liechtenstein has MRAs on conformity assessment with the other 
EEA/EFTA countries, Australia, Canada, New Zealand, Switzerland, and the United States. 
Liechtenstein and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Ma tsu (Chinese 
Taipei ) have signed an exchange of letters regarding the mutual exchange of information for 
medical devices, notably requirements for quality systems and audits of quality systems (in force 
since May 2011) .  
3.112.   There have been no new developments  regarding standardization. The Swiss Standards 
Association (Association Suisse de Normalisation, SNV) has about 700 members, including a few 
from Liechtenstein. The SNV publishes Swiss and foreign draft standards on the internet (Swiss 
Information Centre for Technical Rules, switec). Approximately 96% of the 24,575 standards 
currently in force in the customs territory are aligned with international or European standards, 
almost unchanged since the last review. National standards predominate for watches and  road 
construction. Swiss standards are reviewed every five years to assess their continued relevance. 
The SNV is a member of the three European standard -setting organizations (CEN, CENELEC and 
ETSI).  
3.3.4   Sanitary and phytosanitary requirements  
3.113.   Under the Custo ms Union Treaty, Liechtenstein applies Switzerland's SPS measures. 
Switzerland has not provided any SPS notifications since the last review, and no specific trade 
concerns have been raised in the SPS Committee regarding Switzerland's or Liechtenstein's SPS  
measures.  
3.114.   A comprehensive reform of the Swiss food safety regime is under way with the aim, inter 
alia, of protecting consumers from unsafe food and further aligning the food safety requirements 
with the EU acquis  communautaire .82 A new food safety law re ceived parliamentary approval on 
20 June 2014.83 The reform involves a revision and restructuring of 27 federal regulations in order 
to harmonize them with EU legislation. The proposed regulations were submitted for public 
consultation (closed end -October 2 015) and notified to the TBT Committee (see Table A3.1). 
The new food safety requirements will enter into force on 1 May 2017.  
3.115.   The new food safety regime brings about a paradigm shift to the Swiss approach on food 
safety. The positive principle has been ab olished as an unnecessary barrier to trade. Under the 
positive principle all food items and additives offered for sale were required to either be described 
in an ordinance or approved by the competent federal authorities – otherwise they were 
prohibited.84 In future, all safe food items will be allowed unless explicitly prohibited. The 
"precautionary principle" has been introduced into Swiss law.85 The definition of food in the new 
legislation no longer includes tobacco and tobacco products.86 However, for a t ransitional period of 
                                                
80 Feedstuffs, seeds, wine, spirits and alcoholic beverages from wine, bio -products, fruits, vegetables, 
animals, and animal products.  
81 The following bodies are accredited: three for certific ation – Liechtenstein Association for Quality 
Assurance Certificates Company (Management Systems); SWISS LLOYD GmbH; and Überwachungsgesellschaft 
für Gesteinsbaustoffe (Products); two for inspection – Office of Food Inspection and Veterinary Affairs, and 
Überwachungsgesellschaft für Gesteinsbaustoffe; and one for calibration – Negotia Messtechnik AG.  
82 The EU's food safety regime is based on Regulation (EC) No. 178/2002 (general principles and 
requirements of food law, establishment of the European Food Saf ety Authority and procedures in matters of 
food safety).  
83 Loi sur les denrées alimentaires et les objets usuels of 20 June 2014. The draft Food Law was notified 
as WTO document G/TBT/N/CHE/202, 3 September 2015.  
84 Article 8, paragraphs 1 -3 of the Federal Law on foodstuffs and basic commodities (RS 817.0).  
85 Article 21 of the new Food Law.  
86 Article 4(3) of the new Food Law.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  no more than four years, the provisions of the old Food Law relating to tobacco and tobacco 
products will stay in force, in order to allow time for the promulgation of a new dedicated federal 
law.87 Switzerland has adopted the novel fo od concept of the EU; novel foods will be subject to 
approval by the Federal Food Safety  and Veterinary Office, unless listed in the Novel Foods 
Ordinance. Switzerland has also adopted the EU system of "maximum values" for additives, 
contaminants, microorg anisms, etc., which has replaced the Swiss tolerance system. Traceability 
requirements apply to food but also to objects and materials in contact with food (packaging, etc.), 
cosmetics, and toys. Products in contact with food and cosmetics are subject to e nhanced 
protection against deceptive presentation to consumers (advertising, etc.).  
3.116.   While Switzerland has adopted EU labelling requirements, certain Swiss exceptions remain 
in place, for example the requirement to indicate the country of production on all  food items and 
feedstuffs.  
3.117.   Switzerland continues  to apply a stringent regulatory regime for agricultural biotechnology 
products. The Gene Technology Law and related ordinances regulate genetically modified 
organisms for food and feed use.88 Commercializat ion and cultivation of biotechnology crops are 
subject to approval by the competent federal authorities. Approvals are valid for ten years but may 
be withdrawn in case of reasonable suspicion that they are hazardous to health or the 
environment. One GM soy a variety and three GM maize varieties are currently authorized for food 
use. A number of GMO products are authorized for use as feedstuffs .89 Many applications are under 
review in the authorization procedure .90 The 2006 -17 moratorium on approvals for the cu ltivation 
of biotechnology crops has been extended for four years until 2021.  
3.118.   There have been no major changes regarding Switzerland's phytosanitary and veterinary 
requirements. The regimes are fully aligned with those of the EU for imports from third cou ntries, 
transit or exports  of plants (Directive 2000/29/CE), live animals and animal products 
(Directive  882/2004).  
3.119.   Since 2009, Switzerland, Liechtenstein and the EU have formed a common veterinary area 
without veterinary controls on animals and products of animal origin. Since 2012, this area has 
been enlarged to include Norway and Iceland.91 Live animals and animal products from outside the 
common veterinary area (non -EEA countries) can be imported only if the conditions regulating 
trade (import, transit and export of animals and animal products) with third countries are met.92 
Non-EEA consignments are subject to veterinary inspection at the external border of the common 
veterinary area, with a lower frequency of controls from countries covered by a bilater al 
equivalence agreement (e.g. New Zealand). I mporters of live animals and animal products must 
be registered in TRACES (the EU's electronic information and traceability system) and with the 
Swiss cantonal Contrôle des denrées alimentaires  or, in the case of Liechtenstein, the Food and 
Veterinary Office.  
3.120.   The Swiss phytosanitary regime is governed by the Plant Protection Ordinance of 
27 October  201093, which is complemented by the provisions for temporary (emergency) 
measures94, and the Prohibited Plants Ordi nance.95 A plant passport is required for plant imports 
                                                
87 Article 73 of the new Food Law.  
88 Federal Law on non -human gene technology (RS 814.91); see also RS 814.911 and RS 817.022.51.  
89 See "Demandes et autorisations pour des produits OGM ", Federal Food Safety and Veterinary Office 
online information. Viewed at: 
http://www.blv.admin.ch/themen/04678/04817 /04833/04840/index.html?lang=fr . 
90 Federal Office for Health online information. Viewed at: 
http://www.bag.admin.ch/themen/lebensmittel/04858/04863/04883/index .html?lang=fr . 
91 Ordonnance du 18 novembre 2015 réglant les échanges d'importation, de transit et d'exportation 
d'animaux et de produits animaux avec les États membres de l'UE, l'Islande et la Norvège (RS 916.443.11); 
and Ordonnance du DFI du 18 novembre 2015 réglant les échanges d'importation, de transit et d'exportation 
d'animaux et de produits animaux avec les États membres de l'UE, l'Islande et la Norvège (RS  916.443.111).  
92 Ordonnance du 18 novembre 2015 réglant les échanges d'importation, de transit et d'exportation 
d'animaux et de produits animaux avec les pays tiers (RS  916.443.10); Ordonnance du DFI du 18 novembre 
2015 réglant les échanges d'importation, de transit et d'exportation d'animaux et de produits animaux avec les 
pays tiers (RS  916.443.10 6). 
93 Ordinance on the Protection of Plants (RS 916.20).  
94 Ordonnance de l'OFAG sur les mesures phytosanitaires à caractère temporaire  (OMPT) 
(RS 916.202.1), as amended on 13 March 2015.  
95 Ordonnance du DEFR sur les végétaux interdits  (RS 916.205.1) of 15  April 2002.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  from EU member States that are potential carriers of pests hazardous to Switzerland. Plants may 
be imported only from enterprises approved by the Swiss Federal Plant Protection Service.96 
Specific impor t requirements are applied to products presenting a high phytosanitary risk, 
including a phytosanitary certificate (Article 9 of the Plant Protection Ordinance).  
3.3.5   State trading, state -owned enterprises, and privatization  
3.121.   The Swiss alcohol regime is governed  by the Alcohol Law of 1932 – one of the oldest 
federal laws – under which the Confederation is vested with exclusive rights (monopolies) with 
respect to imports and production of ethanol, and production of spirits.97 Switzerland will abolish 
its statutory import monopoly for ethanol. The Swiss Parliament has approved a corresponding 
amendment of the Alcohol Law, which is expected to enter into force by the end of 2018, 
according to the authorities. Switzerland has regularly notified the activities of the Sw iss Alcohol 
Board ( Régie fédérale des alcools ) – operating on behalf of the Swiss Confederation – to the 
Working Party on State Trading Enterprises.98  
3.122.   The alcohol import monopoly is exercised by Alcosuisse (a profit centre of the Swiss 
Alcohol Board) and a pplied to ethanol containing at least 80% alcohol by volume. Private -sector 
imports of high -grade alcohol are subject to prior authorization by the Swiss Alcohol Board. 
Private -sector imports of ethanol and spirits containing no more than 80% by volume are  allowed 
without restriction and permit. The Confederation's import monopoly on ethanol used as bio -fuel 
was terminated on 1 October 2010. Total imports of ethanol into Switzerland in 2015 amounted to 
62 million litres, of which 34 million litres were impo rted by Alcosuisse and 28 million litres were 
predominantly for use as bio -fuel.   
3.123.   Alcosuisse is required by law to sell at cost, and sales prices are fixed by the Federal 
Council. Alcosuisse does not export ethyl alcohol, according to the authorities, but  exports will be 
liberalized under the reform. The reform of the alcohol regime will be implemented in two stages. 
The first stage involves integration of the Alcohol Board into the Federal Customs Administration 
and corporatization of Alcosuisse (state -owned private limited company), which has been slated 
for privatization. The authorities expect that after lifting the import monopoly some of the major 
users will import ethanol themselves.  
3.124.   The Confederation has traditionally conferred its exclusive rights  to produce ethanol and 
spirits to the private sector. Concessions by the Alcohol Board are granted restrictively in 
accordance with the Alcohol Law. In the second stage of the reform, the restrictive administrative 
regime (currently involving 43 types of authorization) may be replaced by a producer and importer 
registration requirement (ethanol register). However, the content and timing of the second stage 
of the reform remain to be determined.    
3.125.   The Swiss cantons hold an ancient salt monopoly ( régale du sel) that covers imports and 
sales of various types of salt.99 The monopoly is exercised by the Salines Suisses SA with the 
purpose of ensuring the security of supply of table and road salt.100 The cantons, through Salines 
Suisses, fix the sales price of salt , which includes a tax ( droit de régale ) on imported and 
domestically produced salt. Road salt (HS 2501.0090), the most widely used salt type, is subject 
to a tax of SwF 1 per tonne. Imports of salt and salt by -products (with a sodium chloride content 
of at least 30%, and salt solutions with a sodium chloride content of at least 18%) require 
authorization by the Salines Suisses. In order not to evade the salt monopoly, imports of salt -
containing products such as olives and other vegetables that are preserve d in brine but unsuitable 
for immediate consumption (HS 0711.2000) are also subject to authorization by the Salines 
Suisses.  
                                                
96 Article 9.4 of RS 916.20.  
97 The alcohol monopoly of the Swiss Confederation has its origins in the 19th century and reflects efforts 
by the authorities to curb alcohol abuse in the population at that time (for example of absinthe).  
98 WTO do cument G/STR/N/16/CHE, 3 May 2016.  
99 Inter-cantonal agreement ("concordat") on the sale of salt in Switzerland of 22 November 1973.  
100 The Salines de Bex SA (owned mainly by the canton of Vaud) and the Salines Suisses du Rhin SA 
(owned by all cantons, excep t Vaud, and the Principality of Liechtenstein) merged in 2014 to become the 
Salines Suisse SA. As a result, the regional monopolies have disappeared and the internal trade between the 
canton of Vaud and the rest of Switzerland has been liberalized.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.126.   The high profits earned by the salt monopoly have prompted intervention by the Price 
Supervisor (Section 3[competition]). An amicab le settlement (in force since 2014) was reached 
with the Salines Suisses regarding salt prices (i.e. rebates for excess profits) and some limited 
liberalizing measures, which affect mainly imports of table salt. Import permits are issued for up to 
6 tonnes  per year provided the import prices do not undercut those of Salines Suisses and the salt, 
salt by -products or salt solutions are not available from Salines Suisses.101 Any variable levy paid 
to adjust to Swiss price levels is reimbursed; the tax on salts u sed for further processing is also 
reimbursed on re -exports. Swiss salt imports amounted to about 10,000 tonnes annually in 2014 
and 2015. Customs duties apply on imports of MFN origin.  
3.127.   Liechtenstein, as a shareholder of Salines Suisses SA, is also suppli ed by that company. 
However, because of its EEA membership, Liechtenstein has replaced the monopoly tax with an 
excise duty on salt of EEA origin (and other EEA -originating products affected by the Swiss salt 
monopoly). These products are subject to the Ma rket Control and Surveillance Mechanism (Section 
2[x]).  
3.128.   There have been no major developments since the last Review regarding Swiss state -
owned enterprises. Swiss SOEs102 operate in a number of service sectors (e.g. telecoms, banking, 
rail transport), as wel l as in the energy and water sectors (Table A3.[SOE]).  Some of them benefit 
from exclusive rights and privileges, on the one hand, and are subject to public services 
obligations, on the other hand.  
3.129.   At the federal level, Switzerland has five state -owned e nterprises that are wholly owned or 
majority -owned by the Confederation (SBB – Swiss Federal Railways; Swiss Post103; Swisscom; 
Alcosuisse (under the Swiss Alcohol Board); and RUAG (operating in the aerospace and defence 
sector)).104 The ownership rights on be half of the Confederation are exercised by the Federal 
Council subject to general oversight by the Federal Parliament; the ownership function is carried 
out by the competent line ministries in cooperation with the Federal Finance Administration (dual 
model ). The SOEs are audited by private audit firms elected by the General Meeting of the SOE. All 
state-owned enterprises operate within the framework of the strategic objectives set by the 
Federal Council every four years, which relate to the legally defined universal service obligation 
and other matters of public interest105, as well as central aspects regarding company development 
(finance, personnel, risk, investment, etc.). In terms of performance:  
i. Swisscom has been profitable in recent years (2014, 2015) wi thout any federal 
subsidies, and has paid out a dividend each year to its shareholders.  
ii. In the last few years, Swiss Federal Railways (SBB) yielded profits (SwF 373 million 
in 2014 and SwF 246 million 2015). SBB received subsidies for three purposes: 
(i) infrastructure (major share of the subsidies, co -financed by public long -term 
loans106; (ii) regional passenger transport services; and (iii) goods transport 
services. In total, SBB and its subsidiaries received SwF 3.4 billion (2015) in 
subsidies and loans by the Swiss Confederation and – to a smaller extent – by the 
cantons.  
iii. Swiss Post was profitable in 2014 and 2015, mainly due to the performance of Post 
Finance and Post Mail, and paid out annual dividend s to the Confederation 
                                                
101 Impor ts of up to 50 kg for private consumption are exempt from the salt tax . 
102 Based on the definition contained in the OECD Guidelines (Guidelines on Corporate Governance of 
SOEs. Viewed at: http://dx. doi.org/10.1787/9789264244160 -en). 
103 The financial services provider Post Finance Ltd. is a wholly -owned subsidiary of Swiss Post. It holds 
a banking licence and is supervised by the Swiss Financial Market Supervisory Authority (FINMA); however, by 
owners hip policy the business activities are limited and exclude, for example, mortgage loans.  
104 The Confederation owns 21.70% in BLS SA (transport sector).  
105 Universal service in the telecommunications sector is subject to a concession.  
106 The operation, mainten ance and construction of SBB infrastructure are financed by three sources: 
income from track access charges paid by the railway undertakings; a company -internal compensation 
payment by the SBB Real Estate division, as well as subsidies and loans mostly by the Swiss Confederation and 
to a smaller extent by the cantons. As of 1 January 2016, the subsidies and loans are paid from the Railway 
Infrastructure Fund (run with federal transfers, portions of the performance -related heavy vehicle charge, VAT 
and miner al oil tax, and a contribution of the cantons) and from the Infrastructure Fund (run with earmarked 
portions of several federal tax revenues).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  (SwF 200 million annually). Swiss Post received federal subsidies (SwF 226 million in 
2014 and SwF  226 million in 2015), of which SwF 176 million were earmarked for 
specific regional passenger transport services by Post Auto AG, and SwF 50 million 
for the delivery of regional and mem bership press with the respective publishing 
houses as final beneficiaries.  
3.130.   Switzerland does not have a privatization agenda.107 The privatization of Swisscom was 
considered by the Government in 2014 (due to the financial risks for the Confederation of 
Swisscom ownership and potential conflicts of interest) but it has decided not to privatize the 
enterprise for the time being.  
3.131.   There have been no changes regarding state -owned enterprises in Liechtenstein since its 
last TPR in 2013. State -owned or private ent erprises continue to hold exclusive rights or exercise 
monopoly powers over public passenger transport, certain postal services, and the supply of 
energy. The electricity and gas markets are undergoing gradual liberalization in line with the 
current develo pments within the EEA. Direct imports of gas and electricity are allowed (see also 
Table A3.2). The liberalization process will continue with the incorporation and implementation of 
the respective EU Directives 2009/72/EC and 2009/73/EC into EEA and nation al law.  
3.3.6   Competition policy and price controls  
3.132.   Legislation on competition has not changed substantially since 2004. Four main laws 
continue to regulate competition: the Federal Law on Cartels and Other Impediments to 
Competition of 6 October 1995 (RS 251) (Cartel Law), amended in 2004; the Federal Law against 
Unfair Competition of 22  October 1992 (RS 241), amended in 2002; the Federal Law on the 
Internal Market of 6 October 1995 (RS 943.02), amended in 2006; and the Law on Price 
Surveillance of 20  December  1985 (RS  942.20), which allows price investigations by the Price 
Supervisor when competition is deemed to be lacking.  
3.133.   There were no new developments regarding the Swiss competition regime during the 
review period. The regime was evaluated by the "Task Forc e Cartel Act" which submitted 
recommendations in the Synthesis Report of 14  January  2009.108 The Synthesis Report  considered 
it necessary to amend the Cartel Law in order to achieve improvements in the institutions and in 
the areas of international cooperati on, merger control and vertical restraints. In 2012, the Federal 
Council submitted a far -reaching revision of the Cartel Law to Parliament. Following two years of 
consideration by the Federal Chambers, a reform of the Cartel Law was rejected and shelved in  
September 2014.109  
3.134.   The Synthesis Report noted that Switzerland did not have any agreements on cooperation 
in competition matters with other States. In view of the increasing frequency of cross -border 
antitrust practices, it deemed it appropriate to conclud e cooperation agreements with its main 
trading partners in order to make the exchange of confidential information possible.  The Federal 
Council decided not to address international cooperation in the legislation but instead through the 
conclusion of second -generation cooperation agreements allowing the exchange of confidential 
information with Switzerland's main trading partners. The Switzerland –EU agreement on 
cooperation and competition matters came into force on 1 December 2014. The agreement 
provides in  particular for notification of enforcement measures, coordination and exchange of 
information. It also contains clear procedural guarantees for the undertakings concerned. The 
agreement is procedural in nature and does not entail any harmonization of subs tantive law.110 
3.135.   The Synthesis Report also observed that, due to certain deficiencies in the Swiss measures 
to effectively enhance competition, mergers that may have a strong negative effect on competition 
                                                
107 Switzerland's current economic growth strategy (adopted in 2016) does not address the privatization 
of state -owned enterprises.  
108 COMCO (2009).  
109 The envisaged revision of the Cartel Law covered reforms of the institutional framework 
(independence and professionalization of the competition authority) and of the legal instruments ( per se  
prohibition of hard -core ca rtels, adoption of the European Union's SIEC test for mergers, amongst others). For 
details, see the 2013 TPR of Switzerland and Liechtenstein.  
110 Official Journal  of the European Union. Viewed at:  
http://eur -lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:22014A1203(01)&from=EN . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  might be approved. According to the Report, the harmo nization of the Swiss merger control 
system with the EU's and introduction of the SIEC -test would eliminate these problems.111 The 
Federal Council decided on 22 June 2016 to propose a revision of the merger control system for 
public consultation until the en d of 2017.112 
3.136.   Switzerland's guardian of effective competition consists of a secretariat and the non -
permanent Competition Commission (COMCO). The COMCO currently consists of 12 part -time 
members, including the President and Vice -Presidents (who are nominated  by the Federal Council), 
independent experts, and representatives of various interest groups (e.g. industry, retail, 
consumer, labour, and agricultural associations). Some members also hold positions on company 
boards. The secretariat carries out investig ations and submits the results to the COMCO for 
decision. COMCO's decisions can be appealed to the Federal Administrative Court, whose 
judgments can be appealed to the Federal Supreme Court.113  
3.137.   In Switzerland, limited competition in various industries has r esulted in higher prices of 
certain products and services than in comparable European markets. To counter the high prices 
prevailing in Switzerland, the COMCO routinely intervenes to expose and prevent market 
foreclosures, which have the effect of reducing  import competition, and by taking pivotal decisions 
regarding enforcement actions . Priority areas of enforcement are price -fixing and other hard -core 
horizontal cartels, as well as vertical restraints of competition that foreclose territory. In three 
landmark rulings, the COMCO issued fines for anti -competitive practices preventing Swiss 
customers from making parallel or direct imports of Elmex toothpaste (2009), Nikon cameras and 
photography equipment (2011), and BMW cars (2012).  On 28 June 2016, the Fed eral Supreme 
Court confirmed the sanction against the producer of Elmex toothpaste. On 16 September 2016, 
the Federal Administrative Court confirmed the sanction against Nikon. Nikon stated on 27  October 
2016 that it would not lodge an appeal against the d ecision of the Court.  In the BMW case, an 
appeal is pending before the Federal Supreme Court.  
3.138.   Switzerland has a system of presumption for particularly harmful cartels, i.e. horizontal 
agreements on prices, quantities or geographical allocation of markets,  and vertical agreements on 
minimum or fixed prices and unequivocal territorial partition. The presumption that these five 
types of agreements eliminate the competition prevails, but puts the burden of proof on the 
COMCO and this presumption is regularly r ebutted. Nonetheless, the COMCO considers that, 
despite the failed reform of the Cartel Law, it has sufficient instruments to address such restraints 
on competition.114  
3.139.   On 29 June 2015, the COMCO completed the revision of the 21 October 2002 Notice on the 
Competition Law Treatment of Vertical Agreements in the Automobile Sector and its explanatory 
guidelines, taking into account the present legal framework in the EU.115 However, due to the legal 
and economic conditions in the Swiss automobile market, it was no t considered appropriate to 
adopt every aspect of the European Union legislation.116  
3.140.   The COMCO opened 7 new investigations in 2013, 2 in 2014 and 6 in 2015. Amongst the 
major rulings since the last TPR, the COMCO fined 11 airlines for unlawful price -fixing of air freight 
(2013). In this case, the air services agreements with the EU (and other States) required the 
application of Swiss as well as EU rules on competition, which are an integral part of the bilateral 
ASAs.117 The COMCO fined a cartel of wholesale d istributors of sanitation equipment (2015) for 
unlawfully fixing prices and output. It prohibited certain practices by booking platforms, whereby 
restrictive clauses prevented hotels from offering rooms at lower prices via competing distribution 
channels ( 2015). It fined the telecom operator Swisscom for abuse of dominance with respect to 
broadband internet access (2015). The decision, which revolved around a Swisscom bid in an 
internet tender by Swiss Post, has been appealed before the Federal Administrati ve Court.  
                                                
111 The significant impediment of effective competition (SIEC) test, introduced in 2004 to EU merger 
control, aims at eliminating en forcement gaps that may exist in the dominance test.  
112 SECO (2016a) . 
113 At the end of 2015, 22 appeals were pending.  
114 COMCO (2014). 
115 On 27 May 2010, the European Commission adopted Regulation No. 461/2010 and the guidelines 
relating thereto, introducing n ew competition rules for the motor vehicle industry.  
116 For more details, see COMCO (2015), p. 4 . 
117 COMCO (2013).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.141.   Other activities of the COMCO have been related to diverse sectors, including for example: 
(i) financial services (an investigation relating to credit card interchange fees of MasterCard and 
Visa resulted, on 1 December 2014, in an amicable sett lement which provided for a reduction in 
the domestic interchange fees from 0.95% to 0.44%  by 1 August 2017 ); (ii) media (in a decision 
dated 14 July 2014, the COMCO concluded the investigation into the Swiss press agency 
Schweizerische Depeschenagentur – SDA - relating to pricing policy and other practices, and 
approved an amicable settlement; the investigation revealed that from the end of 2008 to early 
2010, the SDA had concluded subscription agreements with exclusivity discounts with selected 
media firm s in the German -speaking part of Switzerland); and (iii) consumer goods (in a ruling 
dated 30 June 2014, the COMCO concluded its investigation into Jura Elektroapparate AG (Jura) by 
approving an amicable settlement in which Jura undertook in principle to a llow its sales partners to 
sell its products online).  
3.142.   Bid rigging has been another investigation priority. Since the last Review, the COMCO has 
opened several investigations and fined companies in the construction industry. In August 2014, 
the Secretariat concluded the preliminary investigation opened in 2013 into reporting systems 
used by cantonal building contractors' associations. The secretariat reached the conclusion that 
these associations encouraged bid rigging by construction companies and could adv ersely affect 
competition. Accordingly, the secretariat urged building contractors' associations to ensure that 
participant companies are no longer able to use the reporting system to find out before the 
deadline for bids which other companies are submitti ng an offer.  
3.143.   The COMCO was called upon to decide a special case in the watch market (2013). The 
Swatch Group has traditionally held a dominant position in the market for mechanical watch 
movements and assortments, i.e. the core components used by the Swiss  watch industry for 
mechanical "Swiss -made" watches. The case revolved around, on the one hand, the Swatch 
Group's expressed intent to phase -out the supply of these products to competing watch 
manufacturers, and on the other hand, ensuring that no abuse of  dominant position would  occur, 
namely if the watch manufacturers were obstructed or excluded from the market for mechanical 
watches. An amicable settlement was reached, which allows the Swatch Group to phase -out its 
supplies by 2019 without abuse of domin ance.  
3.144.   Advocacy activities play an important role in the COMCO's responsibilities. For example, 
the COMCO has called for a reduction of the high level of tariff protection for agricultural products 
in Switzerland ( Section 4.1 .5). To improve the functioning  of the internal market, the COMCO 
recommended the opening up of the cantonal markets for notarial services. It noted "that the 
inter-cantonal recognition of public deeds relating to real estate transactions could allow clients to 
benefit from a broader ra nge of services and choose a notary from anywhere in Switzerland 
according to their needs in terms of quality, service and price."118  
3.145.   The Swiss courts, on the whole, support the Competition Commission's efforts, as 
illustrated by five judgements issued in 2 015 and 2016: (i) in the off -list medicines case, the 
Federal Supreme Court confirmed that the application of the Cartel Law can only be excluded by 
express statutory provisions, and not by de facto  circumstances in a specific market; (ii) in the 
aforement ioned Swisscom ADSL, BMW, Elmex and Nikon cases, the Federal Administrative Court 
confirmed the substantive decisions of the COMCO in their entirety and rejected the related 
appeals. The Swiss Federal Supreme Court confirmed the Elmex decision of the COMCO  and 
rejected the related appeal (its reasoned judgement is not yet available).  
Price controls  
3.146.   Switzerland's  regime of price surveillance and prevention of abusive pricing by public and 
private monopolies or enterprises with market power remains unchanged.  The Law on Price 
Surveillance  has not been amended since 1 January 2007.  
3.147.   In accordance with the Law on Price Surveillance, the Price Supervisor (appointed by the 
Federal Council) has the responsibility of observing price developments and preventing abusi ve 
price increases or abusive price maintenance in any market where the price level is not the 
                                                
118 COMCO (2014) . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  consequence of effective competition (Articles 4 and 12).119 Establishing the conditions for 
effective competition falls under the purview of the COMCO. Price surv eillance covers the prices of 
goods and services (including administered prices) charged by SOEs (public monopolies), and 
private enterprises with market power. Enterprises with market power may submit their planned 
price increases to the Price Supervisor.  The Price Supervisor may also act on its own initiative or 
by notice from the public to determine whether there are indications of abusive price fixing. If 
abusive price fixing is found, the Price Supervisor may attempt to reach an amicable settlement 
with the respective enterprise, failing which he is authorized to prohibit all or part of the price 
increase or order a reduction in price. Entities that fail to meet or attempt to avoid prices agreed 
by consent are liable to a fine of up to SwF  100,000.  
3.148.   Since the last Review, the Price Supervisor has reached amicable settlements or price 
moratoriums with a number of public monopolies and enterprises with market power, notably with 
Swiss Post AG (regarding tariffs for parcels and letters over 50  g in the non -reserved area); gas 
network operators (regarding transport tariffs); DHL Express and DPD (regarding customs 
processing fees); and Adobe Systems Ltd. An understanding regarding salt prices was also reached 
with Salines Suisse SA, which administers the canto nal salt monopoly (Section 3.[SOE]).  
3.149.   With respect to administered prices, the Price Supervisor's authority is limited to making 
recommendations regarding price increases, and he has frequently made use of this right.  
3.150.   Switzerland maintains administered pri ces at the federal, cantonal and municipal levels. 
Goods and services subject to administered prices include medicines, electricity, gas, water, basic 
telecom services, airport taxes, and notary services.  In addition, fees for hospital treatment and 
medic al doctors are regulated at the cantonal level, and taxi tariffs, and tariffs for garbage and 
waste water collection, amongst others, are regulated at the municipal level.   
3.151.   The agricultural import threshold prices are a special case of price controls or ad ministered 
prices – they are also an instrument of agricultural protection (Section 4.[ag]). For certain basic 
agricultural products (grains and oilseeds), Switzerland applies a system of threshold prices on 
imports to keep the duty -inclusive prices within  certain price ranges. Variable MFN import duties120 
allow the authorities to control and stabilize the domestic prices of the agricultural products 
concerned around the level of the statutory threshold prices.  
3.152.   The Price Supervisor publishes an annual repor t on the main investigations. Since the last 
Review, the Price Supervisor has launched enquiries on abusive prices in several sectors of the 
economy, for example the impact of border protection on the prices of agricultural products. As a 
policy response t o the "high -price island" of Switzerland, the Price Supervisor has advocated a 
sustained reduction of agricultural tariff protection. The Price Supervisor also found that generic 
medicines are significantly overpriced in comparison with price levels in oth er European countries 
and has called for a reform of the legal framework governing prices of generic medicines.121 
3.153.   Liechtenstein maintains price controls on public transport, telecommunications, postal and 
medical services, and drugs and medical equipment. P rices for electricity and gas (except for grid 
access/transport) have been liberalized in compliance with the current developments within the 
EEA (second energy liberalization package). The market is open and prices can be set individually 
by each electric ity or gas supplier. The prices are composed of a tariff for the use of the network 
(regulated by the Energy Market Commission) and a tariff for the energy itself. Due to the lack of 
a large number of alternative energy suppliers, most prices for gas and e lectricity are de facto  set 
by the two state -owned companies. Some costumers have already switched their electricity 
supplier, according to the authorities. An application from a new gas supplier is pending.  
                                                
119 The law does not define abusive pricing but lists factors to take into account, such as cost increases 
and prices in compara ble markets (Article 13).  
120 Within limits set by Switzerland's tariff bindings.  
121 Surveillant des prix ( Price Supervisor ) online information. Viewed at: 
https://www.preisueberwacher.admin.ch/pue/fr/home/documentation/publications/rapports -annuels.html . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.3.7   Government procurement  
3.3.7.1   Overview  
3.154.   Both Switzerland  and Liechtenstein are parties to the WTO plurilateral Government 
Procurement Agreement (GPA) and have been actively involved in the re -negotiation of the 
Agreement.122 The revised GPA entered into force on 6 April 2014 and is now in force for 18  of the 
current 19 Parties to the GPA, including Liechtenstein. Switzerland is in the process of ratifying the 
revised GPA in parallel with ongoing legal reforms and is expected to submit its instrument of 
acceptance in 2017.123 
3.155.   The revised GPA consists of a modernized text, simplifying and streamlining procedures 
and integrating modern procurement practice, such as the use of electronic tools. It also provides 
enhanced market access estimated at an additional US$100 billion annually, bringing the overall 
estimated value  of GPA -covered procurement to US$1.7 trillion annually. Under the GPA, 
Switzerland offers comprehensive coverage of entities at all levels of government. Entities at the 
central level of government are now covered by a functional definition, and include n ew entities 
pertaining  to the federal judiciary authorities and the federal prosecution authorities (Annex 1)). In 
Annex 3, the federal railway sector remains excluded.124 Switzerland also enhanced its coverage of 
services, including telecommunication servic es and included an expanded list of non -sensitive 
defence items that are now covered under the GPA. Switzerland made reservations on the 
application of the GPA to other signatories that had not extended comparable and effective access 
to certain entities a nd/or in certain activities to Swiss firms.125 Liechtenstein equally provides 
comprehensive entity coverage and extended its commitments to procurement by its Parliament 
and Courts126, bodies of public law at the national level127, and procurement by postal serv ices 
acting under exclusive rights.128 In Annex  5, Liechtenstein dropped the exclusion of certain 
telecommunication services. It maintains some country -specific derogations.129  
3.156.   As EFTA members, both countries are also bound by the EFTA Agreement, which reaffi rms 
their rights and obligations under the GPA and broadens the scope of their commitments among 
EFTA members.130 In particular, member States undertake to encourage their covered entities to 
treat the suppliers and service providers of the other member Stat es in accordance with the 
principles of transparency and non -discrimination as set out in paragraph 2 of Article 37 of the 
EFTA Agreement.131 EFTA has also concluded various FTAs with third countries containing chapters 
on government procurement. Such provis ions either build on the WTO's Government Procurement 
Agreement (GPA) or substantially replicate its structure and content.132 In particular, this is the 
case for the Agreements with the Central American States (Costa Rica, Guatemala and Panama), 
Chile, Geor gia, Mexico, Colombia, Peru, Ukraine, and the Gulf Co -operation Council. The 
agreements with Singapore and Korea simply state that government procurement between the 
parties is governed by the GPA. Other FTAs contain more basic provisions mostly aiming at 
cooperation and future negotiations. The EFTA members generally aim at including chapters on 
government procurement in ongoing negotiations.  
                                                
122 See also WTO online information, "Agreement on Government Procurement: Parties, observers and 
accessions". Viewed at: https://www.wto.org/english/tratop_e/gproc_e/memobs_e.htm .  
123 See Report (2016) of the Committee on Government Procurement  (GPA/141, 29 November 2016).  
124 See WTO document GPA/113, Switzerland, Annex 3.  
125 See for instance, Annex 7, General Notes 1, 2 and 3 of Switzerland, WTO document GPA/113. The 
reservations apply to, inter alia : Canada (regional bodies, entities in the water, electricity, local transport, 
airports and ports subsectors, as well as certai n services subsectors); the United States (communal bodies and 
water, local transport, airports and ports entities, as well as certain services subsectors and challenge 
procedures); Japan (communal bodies, electricity and local transport entities, as well as challenge procedures); 
the Republic of Korea (communal bodies, airports and local transport, and challenge procedures); Israel 
(communal bodies, local transport, certain services subsectors, and challenge procedures); and Singapore 
(communal bodies, wat er, and electricity entities).  
126 WTO document GPA/113, Liechtenstein, Annex 1 (central government entities).  
127 WTO document GPA/113, Liechtenstein, Annex 2.  
128 WTO document GPA/113, Liechtenstein, Annex 3.  
129 See for instance, Annex 3, Notes 9 and 10.  
130 See Article 37 of the EFTA Agreement and Annex R, available at: http://www.efta.int/legal -
texts/efta -convention .  
131 See Article 7 of Annex R to the EFTA Agreement.  
132 See EFTA online information . Viewed at: http://www.efta.int/sites/default/files/documents/free -
trade/EFTA_website_ -_Free_trade.pdf .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.157.   The EEA Agreement establishes a single market in public procurement between Iceland, 
Liechtenstein and Norway, and EU members.133 A separate bilateral agreement between the 
European Union and Switzerland on certain aspects of public procurement of 21 June 1999 filled 
the gap between the scopes of the GPA and the relevant provisions under the EEA.134 The EFTA 
Working Group on Public Procurement meets when required and closely follows all EU decision -
making on public procurement issues, mainly through participation in the European Commission's 
Expert Group on Public Procurement (EXPP), the Expert Group on eProcurement (EXEP) and the 
Economic and Statistical Working Group (ESWG).135 
3.3.7.2   Switzerland  
3.158.   Switzerland's international commitments on public procurement have been transposed into 
its national law at the federal level (central administration), and at the sub -federal level (canton al 
and municipal). At the federal level, the GPA was integrated into national law through the 1994 
Federal Law on Government Procurement (now in force in its current version of 1 January 2016)136 
and its 1995 Ordinance (now in force in its current version of  1 April 2015 incorporating reforms 
that entered into force in 2010),137 which set detailed rules for all types of procurement below and 
above GPA thresholds.138  
3.159.   At the sub -federal levels, the 26 Swiss cantons operate under the revised Inter -Cantonal 
Concorda t on Government Procurement of 1994/2001, and its executive directives.139 In addition, 
the 1995 Federal Law on the Internal Market provides for non -discrimination in public procurement 
at cantonal and local levels. The Confederation -Cantons Commission on Go vernment Procurement 
(CMCC) is responsible for coordinating the implementation of Switzerland's international 
commitments at the federal and sub -federal levels, and for ensuring that they are respected and 
implemented.140 
3.160.   According to the authorities, the In ter-Cantonal  Concordat aims to open  the procurement 
markets of cantons, communes and other entities responsible for cantonal or communal tasks, as 
well as provide  market access to foreign suppliers in accordance with Switzerland's international 
obligations . It has contributed to the harmonization of procurement laws and regulations but there 
are a number of remaining differences, for example,  with regard to : the scope of application, 
thresholds, notice requirements, price negotiation (permitted at the feder al level but not at the 
cantonal level ); the  importance of price as a criterion , the exclusion of bidders from ongoing and 
future procurement , secondary and social criteria , the justification of award decisions,  and legal 
recourse.141 A centralized electroni c platform is shared by the federal government, cantons and 
communes for public procurement purposes.142 
3.161.   The Swiss legislation is currently undergoing comprehensive reform in order to implement 
the revised GPA and further harmonize the procurement laws and r egulations at the federal and 
cantonal levels.143 The reform process began in 2012 with the establishment of a joint federal and 
cantonal working group, which was mandated to develop a legislative proposal for revised and 
harmonized parallel drafts of the Fe deral Law on Government Procurement and Inter-Cantonal  
                                                
133 Article 65 (1) and  Annex XVI  of the EEA Agreement cover public procurement.  
134 For details, see Section 3.1.10 of WT/TPR/S/280, 19 March 2013.  
135 See EFTA online inform ation, "Public Procurement". Viewed at: http://www.efta.int/eea/policy -
areas/goods/competition -aid-procurement -ipr/procurement . 
136 Viewed at: https://www.admin.ch/opc/de/classified -compilation/19940432/index.html .  
137 Viewed at: https:// www.admin.ch/opc/de/classified -compilation/19950538/index.html .  
138 For details, see Section 3.1.10 of WT/TPR/S/280, 19 March 2013.  
139 Accord inter -cantonal sur les marchés publics  (AIMP), 25 November 1994/15 March 2001. Viewed at: 
http://www.dtap.ch/de/bpuk/konkordate/ivoeb .  
140 The CMCC comprises an equal number of representatives from the Confederation and from the 
cantons.  
141 See http://ww w.dtap.ch/de/bpuk/konkordate/ivoeb  and Explanatory Report on the Revision of the 
Federal Law on Government Procurement , available at: 
https://www.bkb.admin.ch/dam/bkb/de/dokumente/Oeffentliches_Beschaffungswesen/Revision_Beschaffungsr
echt/BoeB_Erlaeuternder_Bericht.pdf.download.pdf/B%C3%B6B%20Erl%C3%A4u ternder%20Bericht.pdf . 
142 See https://www.simap.ch . 
143 See Explanatory Report on the Revision of the Federal Law on Government Procurement , available 
at: 
https://www.bkb.admin.ch/dam/bkb/de/dokumente/Oeffentliches_Beschaffungswesen/Revision_Beschaffungsr
echt/BoeB_Erla euternder_Bericht.pdf.download.pdf/B%C3%B6B%20Erl%C3%A4uternder%20Bericht.pdf .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Concordat . Legislative consultations on the revision of the  Inter-Cantonal  Concordat were 
concluded at the end of 2014. Subsequently, consultations at the federal level were carried out 
from 1 April to  1 July 2015. According to current plans, the draft legislation will be submitted to 
the Swiss Parliament in the first half of 2017.  
3.162.   Important novel elements and areas of reform are expected to include the definition of 
technical terms and the scope of ap plication, the regulation of additional/subsequent procurement , 
as well as stricter requirements for the conclusion of contracts and a catalogue of sanctions (for 
example,  to address violations of anti -corruption norms ). More flexible instruments such as 
dialogue, framework agreements, electronic procurement, electronic auctions and shorter timelines 
are to be introduced in the legislation. The cancellation of a procurement procedure will entail a 
publication requirement and conflicts of interests will be a ddressed specifically taking into account 
the particularities of the public procurement process.  
3.163.   In order to harmonize federal and cantonal legislation, legal recourse at the federal level 
will be expanded and will  be available from a threshold value of S wF 150,000 . The proposed 
revision is intended to modernize and enhance the clarity and flexibility of the legislation, thereby 
enhancing its user-friendliness. This is expected to improve  market access and competition in 
order to achieve better value for m oney. The implementation of the revised legislation may also 
address some criticism that has been raised in the press with regard to a current lack of 
transparency in federal procurement practices.144  
3.164.   In 2015, total federal procurement spending amounted to SwF 5.65 billion145 or 3.22 billion 
SDR.146 The estimated value of procurement awarded above the GPA threshold is 1.95 billion 
SDR.147 Of this, contracts worth 285 million SDR were awarded in limited/single source 
proceedings.148 Similar values were achieved in pr evious years.149 At the cantonal level, 
procurement above the GPA threshold amounted to contracts worth SwF 3.38 billion.150 Of this, 
contracts worth SwF 349 million were awarded in limited/single source proceedings.151  
3.3.7.3   Liechtenstein  
3.165.   In Liechtenstein, in additi on to the GPA, public procurement is mainly governed by the 
relevant EEA rules (EU Directives and directly applicable EU regulations) and the EFTA Convention. 
The threshold values are those set by the EEA. The Department of Public Procurement, under the 
Head of the Government Chancellery,  is responsible for procurement. In 2008, two EU directives 
(2004/17/EC and 2004/18/EC) were incorporated into national law and the legislation on public 
procurement was updated (Act on the Procurement of Utilities for Publ ic Works Contracts, and 
Supply and Services Contracts in Water, Energy, Transport, and Postal Services; Act on Public 
Procurement for all other Public Purchases).152 These laws apply to public purchases, and to 
projects jointly undertaken by public and priva te entities when the financial contribution of the 
public contracting entity exceeds 50%.  
3.166.   EU countries were required to transpose three directives into national law by 18 April 
2016: Directive 2014/24/EU on Public Procurement, Directive 2014/25/EU on Procu rement by 
Entities Operating in the Water, Energy, Transport and Postal Services Sectors, and Directive 
2014/23/EU on the Award of Concession Contracts. Consequently, Liechtenstein is in the process 
of updating is national legislation, and the government h as published a report with deadlines for 
comments of 9  September 2016 for the Draft Government Bill Concerning the Amendment of the 
Act on Public Procurement and of 7  October 2016 for the Draft Government Bill Concerning the 
                                                
144 See, for example, https://www.letemps.ch/suisse/2017/01/08/marches -publics -milliard -berne -
distribue -toute-opacite?utm_source=mail&utm_medium=share&utm_campaign=article .  
145 See https://www.bkb.admin.ch/bkb/de/home/oeffentliches -beschaffungswesen/statistik -
beschaffungszahlungen.html .  
146 Conversion rate of 1 SDR = SwF 1.75 applied as notified to the WTO in GPA/W/325/Add.2, 
19 December 2013.  
147 See GPA/137/Add.2, 9 August 2016.  
148 See GPA/137/Add.2, 9 August 2016.  
149 See https://www.bkb.admin.ch/bkb/de/home/oeffentliches -beschaffungs wesen/statistik -
beschaffungszahlungen.html  and https://www.wto.org/english/tratop_e/gproc_e/notnat_e.htm#statPro .  
150 See GPA/137/Add.2, 9 August 2016.  
151 See GPA/137/Add.2, 9  August 2016.  
152 Viewed at: http://www.gesetze.li/Seite1.jsp?clearsvs=true&clearlrs=true . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Amendment of the Act on Public Procurement of the Utilities for Public Works Contracts, and 
Supply and Services Contracts in Water, Energy, Transport, and Postal Services.153 According to 
the authorities, construction and services concessions will be covered by procurement regulations 
in order to increase legal certainty in that regard. The rules have been revised and modernized in 
order to increase efficiency in spending and the participation of small and medium -sized 
enterprises in procurement markets. The minimum timelines for tendering  have been shortened, 
and only the winning company needs to submit all the documentation proving that it qualifies for a 
contract; self -certification is otherwise sufficient. Procedures have been simplified and rendered 
more flexible. New selection criteri a may include the organization , qualifications  and experience of 
staff entrusted with the implementation of the contract, and environmental criteria as well as life -
cycle costing can be applied. The reforms envisaged are also intended to further the digita lization 
of public procurement, for example,  through electronic billing.  
3.167.   Under the 1998 Public Procurement  Act, fully open or restricted tendering can be used to 
assign contracts. Procedures can be carried out using methods such as framework agreements, 
dynamic purchasing systems, and competitive dialogue. These methods have not yet been used in 
practice . Contracts above the EEA thresholds are awarded according to international rules (i.e. 
EEA, GPA and FTA rules); they are announced in the EU electronic go vernment procurement 
system (Table 3.18). For contracts below the EEA thresholds, public utilities usually use open or 
negotiated procedures; otherwise, relevant international rules apply. Under the two laws 
mentioned above  (Act on the Procurement of Utili ties for Public Works Contracts, and Supply and 
Services Contracts in Water, Energy, Transport, and Postal Services; Act on Public Procurement for 
all other Public Purchases), contracts are awarded according to the most economically 
advantageous tender or to the tender with the lowest price. Additional criteria, such as quality, 
environmental characteristics, and cost -effectiveness, may also be taken into account. According 
to the Liechtenstein authorities, there are no preferences for local suppliers. A jo int declaration by 
Liechtenstein and certain neighbouring Swiss cantons enables suppliers from the latter to 
participate in tenders (on a reciprocal basis) for purchases below the EEA threshold values. 
Complaints related to public purchases may be lodged w ith the Complaints Commission in 
Administrative Matters, the Administrative Court, or with the EFTA Surveillance Authority if EEA 
provisions are involved.  
Table 3.18 Government procurement in Liechtenstein, 2 013-15 
 Internationally 
awarded contracts 
(SwF million)  Open tenders (%)  Restricted tenders 
(%) Negotiated 
procedures  
(%) 
2013 45 72 0 28 
2014 20 73 0 27 
2015 32 80 0 20 
Source:  Liechtenstein authorities.  
3.3.8   Trade -related intellectual property rights  
3.3.8.1   Overview  
3.168.   Switzerland maintains a highly esteemed IP system that corresponds to its status as one of 
the most innovative OECD economies with a vibrant technology industry. During the review period, 
considerations on intellectual property (IP) have played an im portant role both in Switzerland's 
domestic legislative activity as well as in its international trade policy. In the domestic sphere, 
legislative initiatives in the area of copyright were driven by the motivation to balance appropriate 
protection and enfo rcement in the context of new technologies with the privacy and freedom of the 
internet user. A number of Federal Supreme Court cases regarding IP enforcement on the Internet 
have provided the backdrop for these deliberations on copyright reform which have  not yet 
resulted in legislative changes. In the area of trademarks and geographical indications, the so -
called "Swissness legislation" introduced significant changes with the aim of improving the 
protection of the Swiss brand at home and abroad. Since 201 3, the Swiss government has 
submitted two important international IP treaties to parliament for approval. In the international 
sphere, Switzerland has continued its strategy to strengthen and extend its network of 
                                                
153 See http://www.regi erung.li/news1.aspx?id=111257&nid=7209 .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  comprehensive bilateral free trade agreeme nts, which contain significant IP components, and has 
remained active in WTO discussions and negotiations in the context of the TRIPS Agreement.  
3.169.   Liechtenstein's intellectual property system, as a consequence of the customs union with 
Switzerland, is strong ly integrated and interwoven with the IP system of its neighbour, and 
maintains highly developed and elaborate IP institutions and policies reflecting its status as an 
advanced – albeit small – economy.  
3.3.8.2   Economic policy context  
3.170.   Given the diverse forms that  IP takes in international trade, including IP embedded in 
manufactured goods, IP royalties recorded as services trade, and consumer downloads of 
IP content, it is difficult to establish a comprehensive tally of the full IP component of Swiss trade. 
Howeve r, several indicators permit an approximate estimation of Switzerland's IP trade and 
confirm its traditional situation as a net IP -exporting country.  
3.171.   Rankings of the Swiss economy in global indices of innovation and competitiveness over 
the reporting perio d have confirmed its status as a global leader in these categories. Switzerland 
has retained its overall 1st place ranking in both the Global Competitiveness Index  and the Global 
Innovation Index  in the years 2013 -2016.154 Switzerland's ranking in the sub -category of IP 
protection – improving from 5th place in 2013 -2014 to 1st place in the 2016 -2017 report155 – 
recognizes IP protection as one central component of its overall innovation policy, which is borne 
out by intensive use of the IP System for innovation outputs. In that regard, Switzerland ranked 
1st place in PCT patent applications per million population in 2014 -15, falling slightly to 3rd place in 
the 2015 -2016 report.156  
Chart 3.3 Licence fees, 2010 -15 
(SwF million)  
-15,000-10,000-5,00005,00010,00015,00020,000
2010 2011 2012 2013 2014 2015Expenses
Receipts
Trade balance on licence feesChart 4. [CHE] Licence fees, 2010 -15 
(SwF million)
Swiss National Bank (SNB) data portal.   Viewed at: https://data.snb.ch/en [October 2016]. Source:
 
Source:  Swiss National Bank (SNB) data portal. Viewed at: https://data.snb.ch/en  [October 2016].  
                                                
154 World Economic Forum (2016) and The Global Innovation Index (2016) . 
155 World Economic Forum (2016). Indicator: 1st pillar: Institutions, 1.02 Intellectual property 
protection . 
156 World Economic Forum (2016). Indica tor: 12th pillar: Innovation, 12.07 PCT patent 
applications/million pop.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.172.   Swiss gross expenditure on research and development remained stable at around 3% of 
GDP during the reporting  period.157 While most private R&D is attributable to large multinational 
companies engaged in particularly research -intensive activities domiciled in Switzerland, the 
proportionately low R&D expenditure of SMEs has been growing at twice the average rate, wh ile 
large companies' R&D investment showed a downward trend.158 As part of the Corporate Tax 
Reform III (CTRIII)159 adopted in 2016, cantons are encouraged to adopt "patent box" regimes 
providing tax reductions for qualifying intellectual property income and a ssociated local R&D 
costs,160 which are intended to maintain and enhance the attractiveness of Switzerland as a 
location for R&D intensive industries.  
3.173.   Switzerland has also maintained its traditional position as a net -exporter of IP throughout 
the reporting p eriod, with the positive trade balance on IP licence fees peaking at SwF 6.3 bn in 
2013. A significant fall in receipts since 2013, and a similar – but less dramatic – reduction in 
expenses for IP licences has resulted in a much reduced, but still positive , trade balance on IP 
charges at SwF 3.1 bn in 2015. (See Chart 3.3)  
3.3.8.3   Structure and use of the IP System  
3.174.   The competent authorities for IP issues in Switzerland and in Liechtenstein are, 
respectively, the Swiss Federal Institute of Intellectual Property (F IIP) of the Federal Department 
(Ministry) of Justice and Police161, and the Bureau of Intellectual Property of the Liechtenstein 
Office (Ministry) of Economic Affairs.162 Under the 1978 bilateral Treaty on the Protection 
Conferred by Patents for Inventions, co ncluded within the framework of the Customs Union Treaty, 
Liechtenstein and Switzerland form a unitary territory for the purposes of patent protection: valid 
patents extend to both territories.163 Patent applications made through the national, regional (i.e.  
under the European Patent Convention) or international (i.e. under WIPO's Patent Cooperation 
Treaty) avenues must jointly designate the two countries. With the exception of patents for 
inventions, Liechtenstein has its own legislation for, inter alia , cop yright, trademarks, industrial 
designs and topographies of integrated circuits. In addition, Liechtenstein implements EEA rules on 
intellectual property.  
3.175.   Switzerland and Liechtenstein are members of WIPO and are parties to most of its 
treaties164, notably t he Patent Cooperation Treaty and the Protocol Relating to the Madrid 
Agreement Concerning the International Registration of Marks, as well as to other international 
conventions of relevance to intellectual property.165 Since the last TPR in 2013, Liechtenste in has 
not adhered to or ratified other WIPO treaties in force. Switzerland signed WIPO's Marrakesh VIP 
Treaty on 28  June 2013,166 and ratified the Nagoya Protocol to the Convention on Biological 
Diversity on 11 June 2014.167 It has submitted both the Marrakes h Treaty and the Beijing Treaty 
                                                
157 The Global Innovation Index (2016). Indicator 2.3.2: Gross expenditure on R&D, % of GDP . 
158 KPMG (2016), p. 18.  
159 See Section 3.3.1.1 above for more details on CTRIII.  
160 A number of cantons have published plans for implementing CTRIII in the course of autumn 2016. 
Under the plans of the Canton of Geneva, published on 30 August 2016, patent box income would be eligible 
for a cantonal tax relief of up to 90%, and qualifying R&D expenses  would be eligible for a cantonal tax 
deduction of up to 150%. See presentation by the Geneva State Council viewed at: 
http://www.ge.ch/conseil_etat/RIE -III/doc/presentation.pdf . 
161 IPI online information. Viewed at: www.ipi.ch . 
162 Viewed at: www.avw.llv.li . 
163 Viewed at: https://www.ipi.ch/patente /schutz -in-der-schweiz.html ; and 
http://www.llv.li/#/1691/patentrecht . 
164 WIPO online information, "About WIPO: Members and Observers". Viewed at: http://www.wipo.int/ . 
165 For a detailed list of IP -related treaty membership, see for Switzerland: 
http://www.wipo.int/wipolex/en/profile.jsp?code=CH ; and for Liechtenstein: http://www.wipo.int/wipolex/en/ 
profile.jsp?code=LI . 
166 The Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled, adopted on 27 June 2013, seeks to  create a set of mandatory limitations 
and exceptions for the benefit of the blind, visually impaired, and otherwise print disabled (VIPs). Viewed at: 
http://www.wipo.int/treaties/en/ip/marrakesh /. 
167 Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits 
Arising from their Utilization to the Convention on Biological Diversity adopted on 29 October 2009. The treaty 
entered into force for Switzerland on 12 Oct ober 2014.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  on Audio -Visual Performances168 to Parliament for approval in a proposal dated 
11 December  2015.169  
3.176.   Switzerland, as an observer to the WIPO Lisbon Agreement170, participated actively in the 
negotiations of the Geneva Act of the L isbon Agreement on Appellations of Origin and Geographical 
Indications171 that was adopted on 20 May 2015, and the Federal Council is examining possible 
accession of Switzerland to that agreement.172 
3.177.   The numbers of patent applications, patents granted, and tra demark and industrial design 
applications between 2011 and 2015 in Switzerland and Liechtenstein are shown in Tables 3.19 
and 3.20. Overall levels of filings in Switzerland have remained stable or increased slightly since 
2011, with patent grants growing t he most, while filings abroad by Swiss residents have increased 
significantly, notably in the area of trademarks. The data illustrates intensive use of the IP system 
by Swiss residents which corresponds to the highly competitive and innovative domestic eco nomy. 
Despite a downward trend over the reporting period, this dominance of use by residents remains 
particularly striking in the patent area where residents outnumbered foreign applicants 13 to 1 as 
regards patent grants, and more than 14 to 1 as regards applications, in 2015. In the area of 
trademarks the share of applications by Swiss residents grew to 40% in 2015, whereas it fell 
slightly in the area of industrial designs.  
Table 3.19 Switzerland: Applicati ons for trademarks, industrial designs, and patents, 
and patents granted, 2012 -15 
 2012  2013  2014  2015  
Trademark applications  
Resident  11,438  11,432  11,678  12,383  
Non-resident  17,068  17,436  17,345  17,587  
Total 28,506  28,868  28,023  29,970  
Abroad  142,6 17 158,920  166,327  151,330  
Industrial design applications  
Resident  1,134  1,195  1,112  1,223  
Non-resident  1,722  1,753  1,613  1,571  
Total 2,856  2,948  2,725  2,794  
Abroad  30,017  37,647  35,610  37,580  
Patent applications  
Resident  8,101  8,187  8,334  8,573  
Non-resident  1,508  631 568 446 
Total  9,609  8,818  8,902  9,019  
Abroad  33,914  36,810  36,072  35,885  
Patents granted  
Resident  2,887  3,027  3,231  3,446  
Non-resident  167 174 241 278 
Total 3,054  3,201  3,472  3,724  
Abroad  16,741  17,160  17,811  18,486  
Source:  WTO Secretariat, based on WIPO statistical data, last updated in November 2016.  
3.178.   For Liechtenstein, the data illustrates an increase of filings by residents, particularly in the 
area of trademarks and patent grants, while overall usage of the IP system remai ns stable at a 
level corresponding to its market size.  
                                                
168 Switzerland signed the Beijing Treaty on Audio -Visual Performances on 26 June 2012. The treaty 
deals with the intellectual property rights of performers in audiovisual performances. See WIPO online 
information. Viewed at: http://www.wipo.int/treaties/en/ip/beijing/ . 
169 See Erläuternder Bericht zu zwei Abkommen der Weltorganisation für geistiges Eigentum und zu 
Änderungen des Urheberrechtsgesetzes [Explanatory Statement for two WIPO Trea ties and Reform of the 
Copyright Act] dated 11 December 2015. Viewed at: 
https://www.ige.ch/fileadmin/user_upload/Urheberr echt/d/modernisierung_urheberrecht_2015_d/Erlaeutender
_Bericht_DE.pdf . 
170 The Lisbon Agreement for the Protection of Appellations of Origin and their International Registration 
provides for the protection of appellations of origin through a central registe r. See details at: 
http://www.wipo.int/treaties/en/registration/lisbon/ . 
171 See details of the Geneva Act at: http://www. wipo.int/wipolex/en/details.jsp?id=15625 . 
172 Bericht zur Aussenwirtschaftspolitik 2015, 16.008 [Federal Council Report on External Trade Policy 
2015] dated 13  January  2016, p.908.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table 3.20 Liechtenstein: Applications for trademarks, industrial designs, and patents, 
and patents granted, 2012 -15 
 2012  2013  2014  2015  
Trademark appli cations  
Resident  3 196 218 176 
Non-resident  2,296  2,391  2,441  2,497  
Total 2,299  2,587  2,659  2,673  
Abroad  4,222  5,951  5,891  4,743  
Industrial design applications  
Resident  9 15 17 16 
Non-resident  342 395 339 338 
Total 351 410 356 354 
Abroad  1,078 1,468 1,126 1,165 
Patent applications  
Resident  197 250 278 371 
Non-resident  .. .. .. .. 
Total  197 250 278 371 
Abroad  829 656 824 891 
Patents granted  
Resident  120 113 121 100 
Non-resident  .. .. .. .. 
Total 120 113 121 100 
Abroad  422 401 388 414 
.. Not available.  
Source:  WTO Secretariat, based on WIPO statistical data, last updated in November 2016.  
3.3.8.4   International initiatives and WTO participation  
3.179.   While multilateral initiatives and organizations in the field of trade and intellectual property 
remain  the preferred fora of activity for Switzerland, Swiss foreign trade strategy resolved in 2004 
to also pursue the extension and strengthening of its network of comprehensive bilateral free trade 
agreements in the absence of multilateral progress, with the express inclusion of intellectual 
property protection.173 The Federal Council confirmed this approach most recently in 2016, 
acknowledging that while the importance of FTAs for intellectual property protection or 
government procurement escapes a quantitative  measurement, a qualitative assessment permits 
the conclusion that FTAs improve the regulatory framework also in these areas, "providing Swiss 
market actors with an improved, predictable and legally protected access to foreign markets".174 
The Swiss Federal Council was further expressly mandated in a 2012 "motion"175 to include 
adequate and effective protection of geographical indications (GIs) in all future bilateral FTAs. In 
the period under review, this strategy has been pursued in agreements that Switzerlan d and 
Liechtenstein signed as members of EFTA, as well as in Swiss bilateral free trade agreements or 
bilateral accords specifically addressing the protection of GIs.  
3.180.   In the context of EFTA, Switzerland and Liechtenstein conclude free trade agreements or 
trade and economic cooperation agreements with third countries with IP components that range 
from a general reference to IP protection to highly detailed provisions on certain IP sectors.176 
During the period under review, EFTA agreements with IP provisions have been concluded with the 
Central American States177, Bosnia and Herzegovina178, Georgia179, and the Philippines.180 The 
provisions on intellectual property rights in these agreements cover protection and enforcement, 
as well as cooperation among the Parties in  that regard. They are based on the TRIPS Agreement 
                                                
173 SECO  (2015), p. 193 -194. 
174 Federal Council Report Neue Wachstumspolitik 20 16-2019 of 22 June 2016, p. 25.  
175 Motion 12.3642, dated 19 June 2012, of the Council of States' Legal Affairs Committee "Regulating 
the use of geographical indications in international Treaties".  
176 For a list of FTAs containing an IP element and in force w ithin the EFTA framework see: 
http://www.efta.int/free -trade/free -trade-agreements . For specific references to the IP components see the list 
at: https://www.ige.ch/fileadmin/user_upload/Juristische_Infos/d/efta_freihandelsabkommen.pdf .  
177 Agreement with Costa Rica, Guatemala and Panama, signed 24 June 2013. The agreement entered 
into force for Switzerland and Liechtenstein on 29 August 2014.  
178 Signed 24 June 2013, entry into force 1 January 2015.  
179 Signed 27 June 2016.  
180 Signed 28 April 2016.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  and provide for a high level of protection, taking into account the principles of most -favoured -
nation treatment and of national treatment.181 The agreement EFTA countries had signed in 2009 
with the Gulf C ooperation Council182 entered into force on 1  July 2014, and a first round of review 
negotiations regarding the 2001 agreement with Mexico183 took place in May 2016.  
3.181.    Bilaterally, Switzerland has concluded a Free Trade Agreement with China184 that entered 
into f orce on 1 July 2014. The Agreement contains an elaborate chapter on intellectual property 
protection, which builds on the Swiss -Chinese bilateral dialogue on intellectual property since 2007 
and provides for " more precisely [specified] or enhanced IP proje ction"185 than the TRIPS 
Agreement. The IP provisions186 provide for, inter alia , protection for acoustic trademarks187, 
patentability of inventions in the area of biotechnology and herbal medicines188, disclosure of 
traditional knowledge and genetic resources in patent applications, pharmaceutical test data 
exclusivity for 6 years189, plant variety protection, and protection against misleading use of 
country names. Under the Agreement, border measures must be available also in respect of patent 
and design violations  both on import and export.190 Bilateral Swiss memoranda on dialogues on 
intellectual property exist also with Singapore and India.191 
3.182.   In response to the specific mandate to improve the protection of GIs in the context of 
bilateral agreements, Switzerland conc luded an Agreement on the Protection and Reciprocal 
Recognition of GIs with Jamaica in 2013, which entered into force on 1 September 2014.192 Similar 
to the previous such treaty concluded with the Russian Federation in 2010193, the agreement lists 
indications from both countries that the parties agree to protect, and specifies a high level of 
protection against any use of these GIs on identical or comparable products that do not originate 
from the region indicated by the GI.194 
3.183.   Switzerland also maintains one of t he largest networks of bilateral investment promotion 
and protection agreements (BITs)195, which also cover intellectual property rights as part of 
investment protection in the majority of cases. The purpose of the BITs is "to afford international 
                                                
181 See description of the individual agreements at: http://www.efta.int/free -trade/free -trade-
agreements . 
182 Entry into force on 1 July 2014. In the area of IPR, the Parties essentially confirm the WTO TRIPS 
Agreement. They commit to concluding negotiations on an Annex related to IP R not later than two years after 
the entry into force of the Agreement. In the meantime, a special consultation mechanism is foreseen in case 
of problems in the area of IPR affecting trade conditions between the Parties.  
183 Entry into force on 1 July 2001. See the text at: http://www.efta.int/media/d ocuments/legal -
texts/free -trade-relations/mexico/Record%20of%20Understanding%20Annexes%20and%20Protocols/ 
Annex%20XXI%20 -%20Protection%20of%20intellectual%20property.pdf .  
184 Free Trade Agreement between the Swiss Confederation and the People's Republic of  China, signed 
6 July 2013.  
185 IGE (2013a).  
186 Chapter 11 and Annex IX of the Agreement.  
187 Article 11.7 of the Agreement.  
188 Article 11.8 of the Agreement stipulates the availability of patents for inventions "including in the 
field of biotechnology and herb al medicine", but upholds the ability of the parties to exclude "methods for 
treatment of the human or animal body by surgery or therapy or for diagnostic methods practised on the 
human or animal body" and " plant or animal varieties or essentially biologi cal processes for the production of 
plants or animals".  
189 Article 11.11, para. 3 of the Agreement also provides that "Reliance on or reference to such data 
may be permitted in order to avoid unnecessary duplication of tests of agrochemical products involvi ng 
vertebrate animals, provided that the first applicant is adequately compensated".  
190 See SECO (2013) . 
191 See IGE website at: https://www.ipi.ch/en/ip4all/legal -info/bilateral -relations. At the request of the 
Indian side, the bilateral dialogue on intellectual property was suspended in 2011 until further notice.  
192 Agreement between the Swiss Federal Council and the Government of Jamaica on the Protection and 
Reciprocal Recognition of Geographical Indications concluded 23  September  2013 (RS  0.232.111.194.58).  
193 WTO (2013). 
194 See Article 3 of the Agreement. See more details in Section 3.3.8.8.  
195 According to UNCTAD, the Swiss BIT network is the third largest after Germany and China. (See 
SECO website at: 
https://www.seco.admin.ch/seco/en/home/A ussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtscha
ftsbeziehungen/Internationale_Investitionen/Vertragspolitik_der_Schweiz.html ). According to the 2016 Report 
of the Swiss State Secretariat's Working Group on BITs, dated 7 March 2016, 118 BITs  of the total of 131 BITs 
signed are currently in force. Viewed at: 
https://www.seco.admin.ch/dam/seco/en/dokumente/Aussenwirtschaft/Wirtschaftsbeziehungen/Investitionen/
Bericht_ISA -Arbeitsgruppe.pdf.download.pdf/Bericht_ISA -Arbeitsgruppe_D_7.3.2016.pdf .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  law protec tion from non -commercial risks associated with investments made by Swiss nationals 
and Swiss -based companies in partner countries".196 Since 2010 a  clarification has been developed 
in these agreements which states that the article on expropriation and compen sation does not 
apply to the issuance of compulsory licences that have been granted in relation to intellectual 
property consistently with the TRIPS Agreement.197 During the period of review, the International 
Centre for Settlement of Investment Disputes (IC SID) decided a dispute198 under the 1988 Swiss -
Uruguay BIT199, dismissing the challenge that a group of Swiss Philipp Morris tobacco companies 
had brought against a number of Uruguay's tobacco control measures, inter alia , on the basis that 
these measures brea ched Uruguay's commitments to protect the claimant's right to use their 
trademarks.200  
3.184.   During the review period, Switzerland has maintained its active participation in the TRIPS 
Council discussions on, inter alia , the review of legislation of newly acceding  Members, 
enforcement, non -violation complaints201, and the role of IP for innovation. Switzerland has also 
maintained constructive involvement in the negotiations of the TRIPS Special Session on a 
multilateral register for geographical indications for wines  and spirits.202  
3.185.   In compliance with Article 63.2, Switzerland notified consolidated versions of amended and 
new laws or regulations to the TRIPS Council in September 2013203 and updated its responses to 
the Checklist of Issues on Enforcement in January 2014.204 Switzerland has also updated the 
Council on its implementation of Article 66.2 of the TRIPS Agreement205, and reported on its 
TRIPS -related technical assistance206, which included free -of-charge patent searches for WIPO in 
favour of developing countries, as w ell as a number of sustained bilateral projects, notably with 
Colombia and Indonesia.  
3.3.8.5   Patents  
3.186.   The Federal Law on Patents of 1954 and its Ordinance governing patent protection in 
Switzerland and Liechtenstein, having undergone important changes notably wi th respect to 
                                                
196 See SECO website at footnote 110.  
197 The Swiss State Secretariat's Working Group on BITs has now introduced a standard BIT clause to 
that effect. Report of the Swiss State Secretariat's Working Group on BITs, dated 7 March 2016, Section 3.1.2, 
p.6. See footnote 195.  
198 Philip Morris Brand Sàrl (Switzerland), Philip Morris Products S.A. (Switzerland) and Abal Hermanos 
S.A. (Uruguay) v. Oriental Republic of Uruguay (ICSID Case No. ARB/10/7) decided on 8 July 2016. See case 
details at: 
https://icsid.worldbank.org/apps/icsidweb/cases/pages/casedetail.aspx?CaseNo=ARB/10/7&tab=DOC . 
199 Agreement between the Swiss Confederation and the Oriental Republic of Uruguay on the Reciprocal 
Promotion and Protection of Inv estments, signed 7 October 1988, entered into force on 22 April 1991.  
200 ICSID Case No. ARB/10/7, ICSID Award dated 8 July 2016, para. 450.  
201 See in particular, Switzerland's intervention on TRIPS non -violation in the TRIPS Council meeting of 
February 2014 (WTO document IP/C/M/75/Add.1, para. 169) which was later cited in the United States' 
submission of June 2014 on the same topic (WTO document IP/C/W/599, para. 4.15).  
202 Switzerland is a co -sponsor of the Modalities Proposal in the negotiations of the TRIPS  Special 
Session; see WTO documents TN/C/W/52/Add. 3, 29 July 2008 and TN/C/W/60, 19 April 2011.  
203 WTO documents IP/N/1/CHE/5 (summary table of revised laws and regulations); IP/N/1/CHE/C/7 
(copyright and related rights); IP/N/1/CHE/D/7 and 8 (designs); IP /N/1/CHE/G/19 -20 and IP/N/1/CHE/T/5 -6 
(trademarks and indications of source); IP/N/1/CHE/G/21 (law on agriculture); IP/N/1/CHE/G/22 (appellations 
of origin and geographical indications in respect of agricultural products and processed agricultural products ); 
IP/N/1/CHE/G/23 (viticulture and the importation of wine); IP/N/1/CHE/G/24 (list of vine varieties permitted 
for certification and the production of standard materials and the range of vine varieties); IP/N/1/CHE/O/24 
(fees charged by the Federal Instit ute of Intellectual Property); IP/N/1/CHE/O/25 (cartels and other 
impediments to competition); IP/N/1/CHE/P/14 (patents for inventions); IP/N/1/CHE/P/15 (law on patent 
attorneys); IP/N/1/CHE/P/16 (law on the federal patent court); IP/N/1/CHE/P/17 (patent o rdinance); 
IP/N/1/CHE/P/18 (new plant varieties); IP/N/1/CHE/U/4 (unfair competition); IP/N/1/CHE/U/5 (medicinal 
products and medical devices); IP/N/1/CHE/U/6 (medicines ordinance); IP/N/1/CHE/U/7 (ordinance on the 
placing on the market of phytosanitary pr oducts); and IP/N/1/CHE/U/8 (ordinance on the production and 
placing on the market of feedstuffs).  
204 WTO document IP/N/6/CHE/2, 12 February 2014.  
205 WTO documents IP/C/W/580/Add.4 in 2012; IP/C/W/594/Add.5 in 2013; IP/C/W/602/Add.4 in 2014; 
and IP/C/W/611/A dd.3 in 2015.  
206 WTO documents IP/C/W/582/Add.4 in 2012; IP/C/W/593/Add.5 in 2013; IP/C/W/601/Add.4 in 2014; 
and IP/C/W/610/Add.3 in 2015.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  exhaustion in the preceding reporting period207, have remained substantially unchanged during the 
current reporting period.208 
3.187.   Since 2012, the Swiss Federal Patent Court has replaced the 26 cantonal courts as the 
national special court competent for patent litigation at first instance.209 In the over 100 cases 
since its establishment, the Court, which permits proceedings and pre -trial procedural acts in 
English, has developed jurisprudence on, inter alia , its substantive jurisdiction on patents, 
procedural questions such as interim relief, as well the safeguarding of manufacturing and trade 
secrets in the submission of evidence and the use of expert opinions by technically trained 
judges.210 Since 2012, the court has reported a high rate of settlements  of over 50% of cases.211 
3.188.   In the area of patents, the share (in percentage) of patent applications by top fields of 
technology during 2000 -2014 is, for Switzerland: pharmaceuticals (12.24), organic fine chemistry 
(9.43), medical technology (8.23), measuremen t (6.27), handling (6.06), electrical machinery, 
apparatus, energy (4.73), biotechnology (4.11), basic materials chemistry (4.01), food chemistry 
(3.31), other special machines (3.07), and others (38.54).212 For Liechtenstein, the share is: 
machine tools (22 .31), mechanical elements (11.07), pharmaceuticals (8.99), medical technology 
(6.22), civil engineering (5.91), transport (5.28), electrical machinery, apparatus, energy (5.10), 
measurement (3.88), surface technology, coating (3.67), other special machines  (3.51), and 
others (24.06).213 
3.3.8.6   Plant varieties  
3.189.   Information provided in the 2012 TPR of Switzerland and Liechtenstein on the protection of 
plant varieties in Switzerland remains valid. In preparation for prospective Membership of UPOV, 
Liechtenstein is still  in the process of establishing a system for the protection of plant varieties  to 
comply with the requirements of the Act of the UPOV Convention (1991).  
3.3.8.7   Trademarks  
3.190.   During the reporting period, Switzerland introduced new trademark legislation aiming to 
improve the protection of the "Swiss brand" by regulating in more detail the use of the indication 
of source "Swiss", of the Swiss cross and of the Swiss coat of arms on goods and services – 
generally referred to as "Swissness legislation"214, which enters into force on 1 January 2017. The 
new legislation provides detailed rules on "Swissness" for natural products, for foodstuffs and for 
industrial products, as well as for services. With the revision of the Federal Act on the Protection of 
the Swiss Coats of Arms  and Other Public Signs, the Swiss cross may now be used on Swiss goods 
                                                
207 See documents WT/TPR/S/208 (2009) and WT/TPR/S/280/Rev.1 (2013) for details on the revised 
legislation, and document  WT/TPR/M/208/Add.1 for Switzerland's replies to the questions posed by the 
delegations of Canada, Colombia, Mexico, and the United  States during the TPR meeting. In the context of 
TRIPS Council meetings, Switzerland provided further information on the app lication of the revised Patent Law, 
notably with regard to the disclosure requirement in patent applications. See IP/C/M/69, para. 86; and 
IP/C/M/66, paras. 79 -86. 
208 Part of the ongoing revision of the Swiss Federal Act on Medicinal Products and Medical De vices is the 
introduction of the possibility to extend the term of protection for supplementary protection certificates for 
paediatric medicines by six months, which has not yet entered into force. Minor changes have also occurred 
with respect to submissio ns of electronic documents and the consequential amendments following changes in 
the customs regulations. See the latest version of the Federal Law on Patents RS 232.14 at: 
https://www.admin.ch/opc/fr/classified -compilation/19540108/index.html . 
209 RS 173.41.  
210 See Pascal Fehlbaum, "Case law of the new Federal Patent Court in Switzerland", GRUR Int. 2014 , 
p. 533-545. 
211 See annual reports of the Federal Patent Court since 20 12. Viewed at: 
https://www.bundespatentgericht.ch/en/medien/ . 
212 Viewed at: http://www.wipo.int/instats/sta tistics/country_profile/countries/li.html . 
213 Viewed at: http://www.wipo.int/instats/statistics/country_profile/countries/li.html . 
214 See changes to the Trademark Prote ction Law (RS 232.11) adopted on 21 June 2013. An unofficial 
English translation is available at: 
https://www.ige.ch/fileadmin/user_upload/Swissness/ e/TmPA_Amendments_of_21_June_2013_EN.pdf . For a 
more detailed explanation see Swiss Federal Institute of Intellectual Property, "The new 'Swissness' legislation 
- the most important changes". Viewed at: 
https://www.ige.ch/fileadmin/user_upload/Swissness/e/Swissness_Most_important_changes.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  and services, making it an important advertising tool for producers.215 The Swiss coat of arms 
remains reserved for use by the Swiss Confederation, although companies that have been usin g 
the Swiss coat of arms for decades as part of their company symbol to label Swiss goods and 
services, will, as an exception and only upon well -founded request, be accorded a right of 
continued use. Individual production steps can be promoted as "Swiss" i f that step is completely 
performed in Switzerland (e.g. "designed in Switzerland"), although the Swiss cross may not be 
used for such products.  
3.191.   As regards natural products such as plants, minerals or products from hunting or fishing, 
the place of harvest or extraction – depending on the type of product – is paramount216 for them 
to be identified as Swiss. With respect to foodstuffs, at least 80% of the weight of the available 
raw materials in Switzerland must actually originate in Switzerland217 and the activi ty that gave 
the product its essential characteristics must have taken place in Switzerland.218 This principle is 
elaborated in more detail, and exceptions are provided, e.g. for raw materials that are not 
available or that cannot be produced in Switzerland.  
3.192.   With respect to industrial products, at least 60% of the manufacturing costs must occur in 
Switzerland. In addition, at least one essential manufacturing step must have taken place in 
Switzerland.219 All production costs (i.e. costs for raw materials, semi -finished products, accessory 
parts, product -related salaries and production overhead costs) can be taken into account, now also 
including the costs for research and development, quality assurance and certification. Exceptions 
are provided for natural produ cts that are not found in Switzerland (e.g. precious metals, steel, 
and mineral oils) and materials that are not available in sufficient quantities in Switzerland.  
3.193.   As regards services, under the new legislation a company can offer Swiss services as long 
as its headquarters are located in Switzerland and the company is actually administered from 
Switzerland. Exceptions apply with respect to subsidiaries of Swiss parent companies.220  
3.194.   The "Swissness legislation" also permits the registration of a previously re cognized 
geographical indication as a geographical trademark .221 This new IP title is introduced as an 
additional instrument in order to further facilitate the protection and enforcement of GIs' rights 
abroad under trademark law regimes.222 A geographical mark  may be used by any person provided 
that the requirements of the GI regulations are fulfilled, and the holder of a geographical mark 
may prohibit others from using the mark in the course of trade for identical or comparable goods 
where such use contravenes  the regulations.223 However, the proprietor of a geographical mark 
cannot oppose the registration of a later trademark that contains the geographical indication and is 
applied on goods fulfilling the GI regulations. The geographical mark may not be transfer red or 
licensed.224 
3.195.   In Liechtenstein, the substantive law applicable to the protection of trademarks and 
geographical indications is based on the corresponding Swiss regulations, and the legal 
prerequisites for protection are therefore comparable. To be prot ected, a trademark must be 
registered with the Liechtenstein registry at the Office of Economic Affairs. Liechtenstein follows 
the principle of international exhaustion. Since the last report, Liechtenstein amended its 
Trademark Protection Act,225 to harmoni ze provisions with prior Swiss extensions of the IP 
enforcement competences of its customs administration, which also handles Liechtenstein's 
                                                
215 Coat of Arms Protection Act (RS 232.21), revision entering into force 1 January 2017. Formerly, use 
of the Sw iss cross was only permitted for Swiss services.  
216 Article 48a Trademark Protection Law (RS 232.11).  
217 For milk and milk products, this figure is 100% (i.e. the entire quantity of milk).  
218 Article 48b Trademark Protection Law (RS 232.11).  
219 Article 48c T rademark Protection Law (RS 232.11).  
220 Article 49 Trademark Protection Law (RS 232.11).  
221 Article 27a -d Trademark Protection Law (RS 232.11). For a more detailed explanation see "The new 
'Swissness' legislation - the most important changes" cited above.  
222 For a more detailed explanation see "The new 'Swissness' legislation - the most important changes" 
cited above.  
223 Article 27d Trademark Protection Law (RS 232.11).  
224 Article 27e Trademark Protection Law (RS 232.11).  
225 Trademark Protection Act (LR 232.11) . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  customs matters under the customs union.226 The amendment also changed a requirement for 
foreign applicants to appoi nt an agent or representative resident  in Liechtenstein which the EFTA 
Surveillance Agency (ESA) had found to be incompatible with EEA rules.227 These amendments 
entered into force on 1 January 2016.  
3.196.   Since Liechtenstein's food and agricultural products qual ify as "Swiss" under the definition 
of the Swiss Trademark Law by virtue of being produced in the custom union territory,228 
Liechtenstein has introduced amendments to its trademark provisions with largely mirror the 
"Swissness legislation" and entered into force concurrently on 1 January 2017.229 
3.3.8.8   Geographical indications  
3.197.   The introduction of the "Swissness legislation" described above further develops the 
traditional two -pronged system of protection for geographical indications in Switzerland230 which 
consists of  general protection of geographical indications under the Trademark Law for all products 
and services, not requiring registration, and the protection of geographical indications for wines 
and spirits, agricultural products and foodstuffs under several spec ialized laws and ordinances.  
3.198.   In addition to the creation of the geographical mark, the "Swissness legislation" also 
introduces a new register for geographical indications for non -agricultural products, similar to the 
existing register for agricultural pro ducts and processed agricultural products maintained by the 
Federal Office for Agriculture, which will permit the registration of geographical indications for 
goods such as watches and textiles.231 The new register will be maintained by the FIIP.  
3.199.   The Federal  Council, on 17 June 2016, also approved a partial revision of the Ordinance on 
the Use of the Name "Swiss" for Watches232 which will enter into force on 1 January 2017, and 
which aims to strengthen the GI "Swiss" for watches and watch movements, in line wit h the new 
"Swissness" legislation. In future, at least 60% of the costs of manufacturing a complete watch (as 
an end product) must be generated in Switzerland – unlike previously, whereby this rule applied 
only to the watch movement itself. The movement re mains important, however, as at least half of 
its value must consist of components made in Switzerland, and at least 60% of the costs to 
manufacture it must be generated in Switzerland. In addition, the technical development of a 
"Swiss Made" watch and a " Swiss Made" movement must, in future, also take place in Switzerland. 
The definition of "watch" in the "Swiss Made" Ordinance has also been extended to include smart 
watches in light of recent technological developments.233 
3.200.   Several free trade agreements with  individual countries and groups of countries contain 
provisions on geographical indications.234 With respect to GIs, most of the recent bilateral 
agreements signed by Switzerland and Liechtenstein in the context of EFTA provide GIs for 
agricultural products  and foodstuffs with a higher level of protection than that required by the 
TRIPS Agreement, by requiring means to prevent their use on goods that are not originating in the 
place indicated by the designation in question, without the requirement of confusi on as regards the 
                                                
226 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" Heft 2015/48, p. 6. Viewed at: 
http://bua.gmg.biz/BuA/default.a spx?year=2015&nr=48&content=1231677879 .  
227 A further complaint regarding the new version of Art. 39 Trademark Protection Act has been 
launched and is pending with ESA. See ESA Document No. 799735 "Letter of formal notice to Liechtenstein 
regarding the 201 6 Trademark Act" dated 12 October 2016 for the procedural history of the complaints.  
228 "The place of origin or processing for Swiss indications of source for natural products and foodstuffs 
is the Swiss territory and customs union areas." Article 48(4) Tra demark Protection Law (RS 232.11).  
229 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" Heft 2015/48, p. 6. Viewed at:  
http://bua.gmg.biz/BuA/default.aspx?nr=115&year=2016&content=1742765016  . 
230 WTO (2009) and (2011).  
231 Article 50a Trademark Protection Law (RS 232.11).  
232 "Swiss Made" Ordinance for Watches ( RS 23 2.119 ). 
233 Transition periods apply for watch casings and glass. Explanation by the Intellectual Property 
Institute. Viewed at: https://www.ige.ch/en/indications -of-source/swissness/industry -ordinances/revision -of-
the-ordinance -on-the-use-of-swiss -for-watches.html .  
234 See Section 3.3.8.4 above for an overview of bilateral agreements concluded or entered int o force 
during the reporting period.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  geographical origin of the good.235 The bilateral agreement concluded between Switzerland and 
China follows the same pattern.236  
3.201.   The bilateral agreement between Switzerland and Jamaica237 covers geographical 
indications and indications of sour ce. It contains lists of GIs for both agricultural and non -
agricultural products of the two parties in Annex II.238 Article 3 of the Agreement requires parties 
to provide the means to prevent use of these GIs on " identical or comparable goods  not originating  
in the place indicated by the designation in question" and on " other goods  not originating in the 
place indicated by the designation in question, in a manner that would mislead the public as to the 
geographical origin of the goods."239 
3.202.   With respect to Liech tenstein, information provided in previous TPR reports remains up to 
date.240 
3.3.8.9   Copyright and related rights  
3.203.   Issues linked to Internet and new technologies affecting copyright have continued to 
occupy the Swiss legislative process, although no substantive cha nges to the Swiss copyright 
legislation241 have occurred during the review period. A 2010 Swiss Supreme Court decision242 
suggesting legislative action to "adapt copyright protection to new technologies" as well as various 
related parliamentary motions243 had le d to the establishment of the "Working Group for the 
Optimization of Collective Management of Copyrights and Neighbouring Rights (AGUR12)"244 to 
assess the need for revising the copyright legislation in response to the digital environment, with a 
particular focus on balancing the privacy and freedom of the internet user, the need to provide fair 
compensation for artists and copyright owners, and the need to curb online piracy.  
3.204.   In its substantial report245 of 28 November 2013, the Working Group AGUR12 
recommend ed a catalogue of measures to balance the different interests raised within its mandate. 
The catalogue recommends measures such as awareness -raising, improving the e fficiency and 
transparency of the collective rights management organizations, measures for better copyright 
enforcement,  and the adaptation of regulations governing exceptions and limitations.246 The report 
                                                
235 See the EFTA FTAs signed with Georgia (Article 8.4) and Bosnia -Herzegovina (Article 8.5), which use 
the formulation "prevent the use of a geographical indication for agricultural products and foodstuffs for 
identical or comparable products  not originating in the place indicated by the designation in question" 
(emphasis added). See also the EFTA FTA signed with the Central American States (Article 7.4) which requires 
means to prevent use of the GIs "for agricultural pro ducts and foodstuffs of the same type  where the goods are 
not originating in the place indicated by the designation in question" (emphasis added).  
236 See Switzerland -China FTA, Article 11.13, para. 3 "Without prejudice to Articles 22 and 23 of the 
TRIPS Ag reement, the Parties shall take all necessary measures, in accordance with this Agreement, to ensure 
mutual protection of the geographical indications referred to in paragraph 2 that are used to refer to goods 
originating in the territory of the Parties. E ach Party shall provide interested parties with the legal means to 
prevent the use of such geographical indications for identical or similar goods not originating in the place 
indicated by the geographical indication in question."  
237 Agreement between the S wiss Federal Council and the government of Jamaica on the Protection and 
Reciprocal Recognition of Geographical Indications (RS 0.232.111.194.58).  
238 Jamaican GIs listed in Annex II include drinks, spirits, spices, agricultural products, bakery products, 
sweets, other foods, wellness products, minerals, non -agricultural products, and pharmaceutical products 
(including Jamaican Cannabis Sativa ). See Annex II of the Agreement.  
239 Article 3(1)(a) and (b) of the Agreement (emphasis added).  
240 WTO (2009) and (2013 ). 
241 A minor change in Article 19 of the Copyright Ordinance (RS 231.11) occurred in 2014 as a 
consequence of changes to the customs administration competences.  
242 Federal Supreme Court decision BGE 136 II 508 "Logistep" of 2010, suggesting that it was the task 
of the legislator to take the necessary measures to provide copyright protection adapted to the new 
technologies.  
243 Postulat Savary (10.3263) of 12 May 2010 on "Does Switzerland need a law against illegal music 
downloading?"; Postulat Recordon (12.332 6) of 9 May 2012 for "A copyright protection that is equitable and 
compatible with Internet users' freedom"; Postulat Glättli (12.3173) of 16 May 2012 for "Fair compensation of 
artists while respecting the private sphere of Internet users".  
244 Working Group  "AGUR12" established by the Federal Department of Justice and Police on 
8 August  2012.  
245 IGE (2013a) . 
246 See the catalogue of measures (in English) at: 
https://www.ige.ch/fileadmin/user_upload/Urheberrecht/e/Schlussbericht_der_AGUR12_Empfehlungen_EN.pdf  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  maintains that the downloading from illegal sources, "as provided for in current law according to 
the prevailing legal doctrine, should remain  legal"247, and recommends introducing the necessary 
statutory provisions to oblige hosting providers who refuse recommended self -regulation to apply 
a "take down" and "stay down" of illegal content. Further recommendations cover appropriately 
balanced bases  for the blocking of access to web portals featuring infringing content via access 
providers248, introduction of a one -off notification of internet subscribers as a precondition for civil 
and criminal proceedings249, and the introduction of legislation on the exemption of Internet 
service providers from liability.250 Rejecting the introduction of "a general cultural flat rate covering 
all internet usage"251, the catalogue recommends legislative action to ensure that the current 
copyright framework does not act as a n unintentional barrier to market entry, and calls on the 
legislator to ensure that the enforcement of copyright limitations, such as the royalty -free right to 
citation, is not further eroded.252 
3.205.   Further to a 2013 Supreme Court decision253 that suggested legis lative action to clarify 
liability of online service providers, and following the Federal Council's response to a related 
parliamentary motion254, the Federal Office of Justice (FOJ) was commissioned in October 2013, to 
examine the civil liability of platfor m operators and providers. In its 2015 report255, it concludes 
that the current Swiss provisions on how right owners can obtain user data from service providers, 
as well as on liability of service providers and damages are sufficient, and that therefore "a g eneral 
(i.e. covering a wide range of legal fields) statutory regulation of providers' liability under civil law 
does not currently appear to be appropriate".256 The Federal Council concluded that no general 
legislative action was needed beyond the required changes to copyright law.257 
3.206.   A draft revision of the Copyright Act that the Federal Council had developed on the basis of 
recommendations by the Working Group AGUR12258 as well as on the basis of other initiatives259 
aimed to modernize copyright legislation including "combating internet piracy more effectively 
without criminalizing the users of such services".260 The draft has triggered an exceptionally high 
number of diverse comments during the consultation period that ended on 31 March 2016, leading 
the departmen t responsible to reinstate the Working Group (now "AGUR12 II") and continue 
consultations "with the aim of revising the draft in cooperation with the relevant stakeholders and 
thus achieve broader acceptance".261 
3.207.   Throughout the review period, Switzerland's t rading partners closely followed the work of 
the Working Group AGUR12. Having recorded serious concerns regarding Switzerland's system of 
                                                
247 See section 9.3.1 of the catalogue of measures cited at footnote 246.  
248 See section 9.3.4 of the catalogue of measures cited at footnote 2 46. 
249 See section 9.3.6 and 9.3.7 of the catalogue of measures cited at footnote 246: "An overzealous 
enforcement of the law is problematic and is perceived as being aggressive because internet users are often 
unclear about the legal situation. Prior notif ication may remedy this."  
250 See section 9.3.8 of the catalogue of measures cited at footnote 246. 
251 See section 9.5.1 of the catalogue of measures cited at footnote 246. "The existing concept of a  
judicious combination of collective remuneration at a more or less standard rate and individual exploitation is 
to be maintained."  
252 See section 9.5.3 of the catalogue of measures cited at footnote 246. "The AGUR12 recommends  
investigating how the exercising of copyright limitations ensured by the Revised Berne Convention, TRIPS, WCT 
and WPPT can once more be safeguarded, e.g. in a new Art. 28bis CopA and Art. 69b CopA (prohibition of 
obstructing the use of limitations by tech nical measures)."  
253 Federal Supreme Court decision 5A_792/2011 of 14 January 2013 "Tribune de Genève", calling on 
the legislator to assess whether there is a need to protect internet service providers (ISPs) from any 
"significant (liability) consequences" they may be facing under the existing Swiss law.  
254 Federal Council report in response to the Postulat Amherd (11.3912) of 29 September 2011 "Legal 
Basis for Social Media" from autumn 2013.  
255 Federal Department of Justice and Police (2015) . 
256 See section "8 . Conclusion" of Essential Results cited at footnote 255.  
257 See section "2. Structure and subject of the report" of Essential Results cited at footnote 255.  
258 Final Report of the "Working Group for the Optimization of Collective Management of Copyrights an d 
Neighbouring Rights" (AGUR12) of 28 November 2013 cited at footnote 245.  
259 Postulat Fluri (13.3583) "Renumeration for authors"; Postulat CEAT -N (14.3293) "Blank media"; as 
well as the parliamentary initiative (13.404) "Stop  the unfair levy on blank media ". 
260 See description on the website of the Swiss Federal Institute of Intellectual Property. Viewed at: 
https://www.ige.ch/en/copyright/modernisation -of-copyright.html . 
261 See d escription on the website of the Swiss Federal Institute of Intellectual Property. Viewed at: 
https://www.ige.ch/de/urheberrecht/agur12.html .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  online copyright protection and enforcement262 in the Special 301 Reports since 2012, the United 
States Trade Representa tive decided to place Switzerland on the Watch List in the 2016 Special 
301 Report.263 While acknowledging that "Switzerland broadly provides high -levels of IPR 
protection and enforcement in its territory [and] … makes important contributions to promoting 
such protection and enforcement internationally, including in bilateral and multilateral contexts", 
the "decision to place Switzerland on the Watch List this year is premised on U.S. concerns 
regarding specific difficulties in Switzerland's system of online copyright protection and 
enforcement".264  
3.208.   Copyright protection in Liechtenstein is provided by the Law of 19 May 1999 on copyright 
and related rights and its related ordinance. During the review period, Liechtenstein implemented 
two EU Directives in the are a of copyright. In implementing EU Directive 2011/77,265 which aims to 
better protect young performing artists, Liechtenstein increased the term of protection for music 
compositions with text, and the term of performers' rights with regard to a recorded perf ormance 
from 50 to 70 years.266 The rights of phonogram producers were equally extended from 50 to 70 
years, coupled with provisions to ensure that the performing artists will participate in the benefits 
generated from this additional period of exploitation regardless of prior contractual 
arrangements.267 In implementing EU Directive 2012/28 ("Orphan Works Directive") Liechtenstein 
introduced provisions permitting legal online access to orphan works available in online libraries 
and archives where the inability  to identify the authors has been established in one EEA State and 
the work has been listed in the orphan works Database268 of the EUIPO Observatory.269 These 
amendments entered into force on 1 September 2014 and 1 October 2015 respectively. 
Liechtenstein reco gnizes the collective exploitation of authors' rights and neighbouring rights as 
well as the resale right. International exhaustion is applied for copyrights and neighbouring rights.   
3.3.8.10   Enforcement  
3.209.   The laws of Switzerland and Liechtenstein provide for crimi nal enforcement and border 
measures concerning intellectual property rights at an advanced level. The intentional infringement 
of copyright, patents, trademarks and geographical indications is a criminal offence under the laws 
of Liechtenstein270 and Switzer land.271 Since the substantial improvements introduced in 2008, the 
Swiss Customs Administration, covering both territories, provides ex officio  and on -demand border 
measures in case of a suspected import, export or transit of goods infringing not only copyr ight 
and trademarks, but also patents, designs, geographical indications and topographies of integrated 
circuits.272 Trademark and design right holders  have the option to prohibit the import, export and 
transiting of commercially produced infringing objects for private use and to have those goods 
withheld by Customs, however private persons in Switzerland who are in possession of  unlawfully 
manufactured goods can still not be legally prosecuted.273 
                                                
262 USTR (2014), p. 21.  
263 USTR (2016). 
264 USTR (2016) , p. 55.  
265 EU Directive 2011/77 ( amending Directive 2006/116/EC on the term of protection of copyright and 
certain related rights ). 
266 The term of protection is calculated to begin, in the case of the music compositions with text, after 
the death of the lon gest surviving author, and in the case of performers' right, after the first publication or 
communication to the public of the recording.  
267 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" 23/2014 and 8 8/2014 respectively. Viewed at: 
http://bua.gmg.biz/BuA/default.aspx?nr=23&year=2014&content=496979026 .  
268 Orphan Works Database. Viewed at: https://euipo.europa.eu/orphanworks/ .  
269 See government explanation of the proposed bill in "Berichte und Anträge der Regierung an den 
Landtag" 23/2014 and 88/2014 respectively. Viewed at: 
http://bua.gmg.biz/BuA/default.aspx?nr=88&year=2014&content=1314132476 . 
270 Article 61 Copyright Act (LR 231.1); Article 59 et seq.  and Article 62 et seq.  Trademark Protection 
Act (LR  232.11).  
271 Article 67 Copyright  Act (RS 231.1); Article 66 et seq.  Patent Act (RS 232.14); Articles 61 and 64 
Trademark Protection Act (RS 232.11).  
272 Articles 70 to 72h of the Trademark Protection Act (RS 232.11), Articles 75 to 77h of the Copyright 
Act (RS 231.1). See Switzerland's res ponse to questions during the 2013 TPR in WTO document 
TPR/M/280/Add.1, p.83.  
273 Article 13 para. 2bis and Article 71 Trademark Protection Act (LR 232.11); Article 9 para. 1bis and 
Article 47 Design Act (RS 232.12). See explanation on FIIP website. Viewed a t: https://www.ige.ch/en/legal -
info/legal -areas/counterfeiting -piracy/new -legislation -targeting -counterfeiting -and-piracy.html#c3971 .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3.210.   The Swiss Anti -Counterfeiting and Piracy Platform, STOP PIRACY,  continues to conduct 
campaigns to raise Swiss consumer awareness regarding counterfeit and pirated goods, focusing in 
particular on the dangers of fake medicines, luxury products and consumer appliances.274  
3.211.   The Federal Customs Administration (FCA)275 reports  that the number of interventions 
increased from 2,741 in 2012 to 3,621 in 2015. Most interventions – both commercial shipments 
as well as tourist traffic – occur in the categories of "handbags, travel bags, wallets, etc."276 and 
"watches and jewellery".277 These figures relate to customs interventions under the IP laws.  For 
pharmaceutical products, Customs  intervene under the Law on Therapeutic Products Act based on 
the imported quantity, which may not extend beyond monthly need. In 2015, 1,134 drugs 
consignme nts were seized under the Therapeutic Products Act .278 
                                                
274 See Stop Piracy in the Media online . Viewed at: http://www.stop -piracy.ch/presse/stop -piracy -in-
den-medien/ . 
275 Federal Customs Administration  (2015).   
276 Federal Customs Administration  (2015).  59% of interventions in commercial shipments, 39% of 
interventions in tourist traffic. Cited at footnote 275. 
277 Federal Customs Administration  (2015).  30.2% of interventions in commercial shipments, 19.1% of 
interventi ons in tourist traffic. Cited at footnote  275. 
278 Federal Customs Administration  (2015).  Cited at footnote  275. WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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 4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.  Swiss agriculture (including fisheries and forestry) contributed about 0.7% to GDP (2015) 
and 2.7% to employment (2014).1 Most of the 54,000 farms (2014) are small f amily enterprises 
with less than 30 hectares  of land .2 About half of Swiss farms are located in hilly or mountainous 
regions – a handicap that is addressed through the direct payments system. The main agricultural 
products (in value terms) are milk and dai ry products, bovine animals, pigs, poultry and eggs, and 
wheat.3  
4.2.  Switzerland is traditionally a net  importer of agricultural and food products (Table A4.1). 
While imports are spread over most categories of agricultural and processed products, exports are 
predominantly processed food items. Coffee, non -alcoholic beverages, chocolate, tobacco products 
and cheese account for the bulk of agricultural exports. While unroasted coffee and cocoa butter 
(both raw materials) are in the top 10 imports, roasted coffee  and chocolate are among the top 10 
exports. Switzerland is a net  exporter of cheese.  
4.3.  Swiss agricultural policy pursues diverse objectives, namely sustainable and market -oriented 
agricultural production that contributes to food security, protection of nat ural resources, landscape 
stewardship, decentralized settlement, and animal welfare. The Federal Government is directed by 
the Swiss Constitution to support agriculture's multi -functionality and delivery of public goods, 
inter alia , with direct payments li nked to environmental cross -compliance.4 
4.4.  In Liechtenstein, agriculture's contribution to GDP is marginal, although about one  third of its 
territory is used as farmland. There were 109 farms in 2013 with an average farm size of 
33 hectares. Milk is the main  agricultural product, followed by meat, grains, and vegetables. 
Switzerland acts on behalf of Liechtenstein on Customs Union matters, such as imports and 
exports of agricultural products. Liechtenstein has its own direct payments scheme. Liechtenstein 
farmers also benefit from some of the Swiss market support measures, such as the subsidy for 
milk processed into cheese, in return for an annual financial contribution by Liechtenstein. Some 
Liechtenstein companies participate in the Swiss auctions of the mea t tariff quotas and have 
received export subsidies for processed agricultural products.  
4.1.1   Market access  
4.1.1.1   Applied MFN tariffs  
4.5.  Switzerland's applied MFN tariff on agricultural products (WTO definition) – based on ad 
valorem  equivalents – averaged an estimated 3 0.8% in 2016 ( Table 3. 3). Meat and dairy products 
benefit from the highest levels of tariff protection, averaging over 100% (AVE). High MFN tariffs in 
import -competing sectors contrast with free trade in a range of products, such as cotton, where 
there is no or little domestic production. The Swiss customs tariff (Tares) contains about 2,100 
tariff lines for agricultural products (HS eight -digit level). According to the State Secretariat for 
Economic Affairs (SECO ), this includes about 500 tariff -protected products where import protection 
may not be necessary (e.g. cauliflowers), and approximately another 500 tariff lines where high or 
prohibitive tariffs are maintained mainly for historical reasons – these tariff peaks may offer scope 
for tariff cuts withou t compromising agricultural policy objectives.5  
4.6.  In addition to ordinary customs duties, Switzerland levies guarantee fund contributions to 
finance its reserve stock scheme for grains, rice, coffee, sugar, certain edible oils and fats, and 
                                                
1 The total  agricultural  labour force was 159,000 in 2014 . See Federal Office for Agriculture (2015).  
2 There were 174 farms with more than 100 h ectares in 2014.  
3 WTO document G/AG/N/CHE/72, 10 August 2015.  
4 Article 104  of the Swiss Constitution . 
5 SECO (2016a). For example, there are a number of fruit and vegetables to which the out -of-quota 
tariffs are not applied (see the list at: 
https://www.blw.admin.ch/dam/blw/fr/dokumente/Markt/Einfuhr%20von%20Agrarprodukten/Gemuese%20un
d%20Obst,%20frisch/Ergaenzung_Tabelle_Importregelung_Obst___Gemuese_dt.pdf.download.pdf/Compl%C3
%A9ment%20 au%20tableau%20r%C3%A9glementation%20d%E2%80%99importation%20des%20l%C3%A9
gumes%20et%20fruits%20frais.pdf ). WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  nitrogen fertili zers. The reserve stocks are managed by two private organizations (Réservesuisse 
and Agricura) on behalf of the Government (Section 3 1.4.4).  
4.7.  Switzerland's MFN customs tariff features tariff escalation, adjustable tariffs, seasonal tariffs, 
and in -quota ta riffs.  
a. Tariff escalation is found in the customs duties on certain processed agricultural products 
(see Section 3 .1.4).6 The applied tariff rate of each product concerned is composed of a 
fixed element to protect the Swiss food processing industry (indust rial protection) and a 
variable element of agricultural protection , which  raises the duty -paid import prices of 
the basic agricultural products incorporated in the processed product to the Swiss price 
level. The variable element is calculated based on diff erences between Swiss and world 
market prices for relevant raw materials and a standard recipe for each tariff line. Export 
refunds to compensate the price difference are paid only for certain milk products, and 
flour and other milled products. Due to budg etary constraints, the price difference is 
usually only partially compensated (Section 4.1.4).  
b. Switzerland maintains a complex scheme of adjustable MFN tariffs based on target 
import prices, in order to protect its farmers or producers of feedstuffs, oils eeds, and 
feed mixtures. The basic structure of the schemes remains unchanged, as described in 
previous TPRs.7  
 Tariffs are reviewed monthly and adjusted if necessary, so that the duty -
inclusive prices, including guarantee fund contributions, are raised to  the level of 
target import prices, called "threshold prices".8 According to the authorities, the 
threshold prices do not work as minimum import prices but rather as targets to 
set the tariffs . The tariffs are then valid for a pre -determined period, at lea st 
until the next examination . Once the tariff is set, every shipment is charged 
exactly that tariff irrespective of the value of the good; the tariffs are therefore 
not variable. The threshold prices are set in the General Ordinance on Imports of 
Agricult ural Products  for some of the main  feedstuffs (barley, soybean, meal 
etc.).9 On the basis of the threshold prices for 11 product groups, the Federal 
Department of Economic Affairs, Education and Research determines "indicative 
import values" for "similar" products, for example, wheat or rape meal. For feed 
mixtures, the Federal Department sets a standard mixture based on 
Switzerland's global feedstuff consumption. This is to ensure that feed mixtures 
are subject to the same level of tariff protection as the  imports of its 
components. The statutory threshold prices were reduced in 2005, 2007 and 
2009. The tariffs based on target import prices may not exceed the Uruguay 
Round bindings. There are no tariff quotas for the products covered by the 
scheme.  
 Imports of cereals of bread -making quality (e.g. wheat) are subject to a 
separate tariff mechanism with the statutory target import price called  the 
"reference price". The levied tariffs are based on the tariffs of the grain, the 
standard flour yield, and an extra  fixed tariff (industrial protection). The scheme 
works in combination with a tariff quota of 70,000 tonnes (TQ No.  27); the 
adjustable tariffs may not exceed the bound in -quota tariffs of the products 
concerned.  
 A similar tariff mechanism exists for MFN sugar imports. Switzerland is aiming at 
approximate price parity with EU sugar prices in order not to hamper the 
competitiveness of the Swiss food industry.10 MFN tariffs are examined, normally 
                                                
6 Ordinance on the Variable Components and the Rates of Customs Duty Applicable to the Import of 
Processed Agricultural Products ( RS 632.111.722 ) of 23 November 2011.  
7 WTO (2013).  
8 There is a tolerance band of +/- SwF 3 for deviations from the threshold price. Within this band, there 
is no legal obligation to adjust the tariffs .  
9 RS 916.01 of 26 October 2011.  
10 The mechanism was introduced follow ing Switzerland's bilateral agreement with the EU on processed 
agricultural products (2005), which provides for bilateral free trade in sugar -containing products without export 
subsidies and import duties for sugar used in processed products.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  every month, and adjusted if necessary, so that duty -inclusive reference prices 
are aligned with EU sugar market prices (with a tolerance band of +/ - 
SwF 30/tonne).  
It may be noted that Switzerland's adjustable MFN tariffs subject to the scheme 
described above are not fully captured by the Secretariat's tariff analys is (i.e. tariff 
averages) in Section 3, since Switzerland notifies its MFN tariffs to the WTO IDB as 
applied on 1 January of each year.  
c. Switzerland levies seasonal tariffs on 95 agricultural products, all of which are fresh fruit, 
vegetables, or cut flowe rs.11 The seasonal tariffs are applied in combination with tariff 
quotas for most domestically  produced fruit and vegetables.  
 During the "out -of-season" period, there is no tariff quota management and 
imports are allowed in unlimited quantities at the boun d in-quota tariff. The out -
of-season period is very short for some products (two weeks).  
 During the harvest season ("managed period"), tariff quotas are opened if 
domestic production is insufficient to satisfy demand. Operators that hold stocks 
(exceeding their needs for two days) of fruit and vegetables at the beginning of 
the managed period but which were imported during the out -of-season period, 
are required to file a new customs declaration and pay the difference between 
the in-quota and the applicable out-of-quota tariffs (or use parts of their tariff 
quota at the beginning of the "managed period").  
 No tariff quotas are opened during the harvest season if domestic supplies are 
sufficient to satisfy demand ("full supply period"). In this case imports in  
unlimited quantities are allowed at reduced out -of-quota tariffs. The periods 
when reduced out -of-quota tariffs are applicable are published on the Federal 
Office for Agriculture's website ( www.import.blw.admi n.ch) or by means of 
circular letters . The reduced out -of-quota tariffs are set out in the General 
Ordinance on Imports of Agricultural Products  (RS 916.01) and published in the 
Tares. Clearances at the reduced out -of-quota rates are carried out at the 
request of the declarant.12 These reduced rates are not included in the 
Secretariat's tariff analysis, since Switzerland notifies its MFN tariffs to the WTO 
IDB as applied on 1 January of each year.  
4.1.1.2   Tariff quotas  
4.8.  Switzerland's high level of tariff protection for agricultural products that face import 
competition is complemented by facilitated market access via WTO and preferential tariff quotas. 
In many cases, there is a large gap between the applied MFN in -quota and out -of-quota tariffs 
(Table A4.2).  
4.9.  Switzer land's tariff quota administration regime to implement the 28 tariff quota 
commitments bound in its Schedule is complex. Switzerland has regularly notified annual updates 
of its administration of WTO tariff quotas and their utilization (up to 2015).13 In practice, the WTO 
tariff quotas are implemented through numerous sub -quotas, which in turn may be further sub -
divided (e.g. TQ No.  5 for "red meat"). In the Swiss notifications, it is not always clear that such 
disaggregation exists. In addition, Switzerland  administers preferential  tariff quotas (Table 3.3), 
which may be aggregated with WTO tariff quotas.  
4.10.   The predominant allocation methods are first -come -first-served; auctioning;  past imports; 
prise en charge  (a discriminatory system whereby the allocation of tariff quota is contingent upon 
local purchases); and unlimited access at the bound in -quota tariff. When domestic supplies are 
insufficient, the tariff quotas may also be increased autonomously, resulting in fill ratios greater 
than 100% (Table A4.2).  The Federal Office for Agriculture publishes the tariff quota allocation on 
its website. The auction results (including accepted bids and the names of buyers) are also 
                                                
11 From 2017,  Switzerland has granted unlimited access at the bound in -quota tariff for cut flowers.  
12 See www.tares.ch  – fresh fruit and vegetables of chapter 7 or 8.  
13 WTO documents G/AG/CHE/13 /Add.18, 16 March 2016 and G/AG/CHE/77 , 8 November 2016.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 98 - 
 
  published on www.import.ofag.admin.ch .14 The daily fill rates of first -come -first-served "at the 
border" tariff quotas are published by the Federal Customs Administration.15  
4.11.   Since the last Review,  there have been no major changes in tariff quota administration, 
except for "red meat" (TQ No. 5 – 22,500 tonnes). This tariff quota commitment is implemented 
through sub -quotas for different categories of meat and meat products (meat from bovine 
animals,  sheep, goats and horses). By 2007, a change towards auctioning of the sub -quotas had 
been phased in, leaving 10% of the red meat tariff quota subject to allocation by prise en charge . 
However, the prise en charge  share for beef, sheep meat and offal withi n the sub -quota (No. 5.7 – 
20,703 tonnes) was raised again from 1 January 2015 to 50%.16 Thus, 50% of the sub -quota is 
allocated "on the basis of a contribution to Swiss production".17 In practice, slaughtering facilities 
are entitled to a 40% tariff quota a llocation, based on their shares in the total number of 
slaughtered animals; 10% is allocated based on the number of animals purchased on public 
auctions; the rest of the sub -quota (50%) is auctioned. Slaughtering facilities rarely import 
themselves and us ually transfer their import entitlement to import organizations or meat traders. 
According to the authorities, the change in tariff quota administration affects only the allocation of 
import rights, but not the level of imports into Switzerland, as the fil l rate of the red meat quota 
continues to exceed 100% (Table A4.2).  
4.12.   Switzerland's aggregate tariff -quota commitment for dairy products (TQ No. 6 – 
527,000  tonnes of milk equivalent) is divided into six sub -quotas with very small allocations for 
butter (10 0 tonnes) and whole milk powder (300 tonnes), both of which are auctioned. The tariff 
quota has had fill rates of more than 100% in recent years.  
4.13.   Switzerland has three tariff quotas for grains (TQs No s. 26-28). The tariff quotas for durum 
wheat and coarse grains for human consumption were under -utilized in recent years, although the 
authorities allow unlimited imports at the in -quota tariff. The lack of demand for imported grains is 
a result of competition from import of the processed products (for example,  pasta). The bread 
wheat tariff quota (TQ No. 27 – 70,000 tonnes) was increased autonomously by 20,000 tonnes in 
2015.  
4.14.   The three bound tariff quotas for red and white wine (TQs No s. 23-25) were merged in 2001 
and are administered through a single tariff q uota on a first -come -first-served basis.  
4.1.2   Domestic support  
4.15.   Since the last Review, Switzerland has implemented a new policy framework, the 
Agricultural Policy (AP) 2014 -17. The reform entered into force on 1 January 2014 (through an 
amendment of the Federal  Law on Agriculture) and includes a four -year budgetary framework 
(Article 6 of the Federal Law on Agriculture).18 At the core of the AP 2014 -17 is a re -arrangement 
and fine -tuning of the direct payments (DP) system, to improve the efficiency and effectiven ess of 
the measures, to reallocate some of the subsidies from livestock and dairy production to the arable 
sector and marginal areas, and to address conflicts with WTO Green Box criteria. Total DP 
expenditures were maintained at a level of about SwF 2.8 bi llion per year. Direct payments 
averaged SwF 65,000 per farm in 2014 and contributed on average about 22% to farmers' 
revenues.19 As at end -2016, Switzerland ha d yet to provide a domestic support notification 
covering the AP 2014 -17.  
4.16.   On 18 May 2016, the Fe deral Council submitted its budget proposal to Parliament for 
agriculture spending in the 2018 -21 period, which is affected by the savings within the framework 
of the fiscal stabilization programme ( Section 1.2 ). Total agriculture expenditures for the four -year 
                                                
14 Federal Office for Agriculture online information. For more information  about the auctioning system , 
see: https://www.blw.admin.ch/b lw/fr/home/markt/einfuhr -von-agrarprodukten/aev14online.html . 
15 Federal Customs Administration online information. Viewed at: 
https://www.ezv.admin.ch/ezv/fr/home/infos -pour-entreprises/interdictions --restrictions -et-
conditions/mesures -economiques -et-agricoles/contingents -tarifaires/etat -des-contingents.html  
16 40% for goat meat, horse meat and offal. There are also a few tariff quotas that are administered on 
a first-come -first-served "at office" (OFAG) , rather than "at the border" , basis , e.g. for sheep and pigs.  
17 WTO document G/AG/N/CHE/13/Add.17, 27 Februa ry 2015; and Ordonnance sur les marchés du 
bétail de boucherie et de la viande (RS 916.341) of 26 November 2003.  
18 Federal Law on Agriculture (RS 910.1) of 29 April 1998.  
19 Federal Office for Agriculture (2015).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  period are to be reduced by 3.7% to SwF  13.278  billion. Approximately SwF 11 billion are to be 
allocated to the direct payments programme (about SwF 2.74 billion annually).  
4.17.   Agricultural policy in Liechtenstein has the objective of achieving sustaina ble and market -
oriented production, in accordance with the Agriculture Act of 2008. Agriculture expenditures 
decreased from SwF 15 -16 million to less than SwF 14 million in recent years, most of which was 
allocated to direct payments (Table 4.2). Liechtens tein also makes a financial contribution to the 
common agricultural policies with Switzerland – the key measure for Liechtenstein is the subsidy 
for processing milk into cheese. Liechtenstein's variable contribution was nearly SwF 167,000 in 
2015.  
4.1.2.1   Direct payments  
4.18.   Under the previous agriculture policy framework (AP 2011), the DP budget was allocated to 
"general" DPs (80%) and "ecological" DPs (20%), which were tied to compliance with 
environmental criteria and animal welfare objectives. The DP scheme compri sed a set of 13 
measures, which were notified in terms of Green Box decoupled income support, regional 
assistance, or environmental programmes, as explained in detail in the last TPR.20 The new direct 
payment system is more complex. The new DP regime compri ses seven categories of payments, 
each targeted to a specific policy objective, with a total of 21 measures (Table 4.1).  
4.19.   The main DP category is " payments for ensuring food security", for which about 
SwF 1.1 billion per year have been allocated, covering three types of support : 
 The "basic payment"  for which virtually the entire agricultural area of 1 million hectares is 
eligible (SwF 900 per hectare), including permanent pastures21 but excluding the summer 
pasturing area. On the permanent pastures, the basic payment replaces the headage 
premiums for ruminants ("payments for roughage consuming animals" under the AP 2011), 
which were questioned by WTO Members in terms of compliance with Green Box criteria. To 
reduce the incentives for production on permanent p astures, the basic payment is no longer 
tied to the number of animals, but is based on acreage with a minimum stocking density.  
 The "payment under difficult production conditions" , which  provides additional support for 
producers in the hilly and mountaino us zones (ranging from SwF  240 to SwF 360/ha).22 
About 60% of the total agricultural area is eligible.  
 The "payment for open arable land and permanent crops" (SwF 400/ha) , which  is a pre -
existing measure that raises the level of support for the arable sect or compared with the 
pasture -based livestock sector (dairy).23 The policy objective is to stabilize the arable area 
for food security purposes. The " basic payment" and the " payment for the open arable land 
and permanent crops" will be notified to the Commit tee on Agriculture in terms of trade -
distorting domestic support (Amber Box), according to the authorities.   
4.20.    The " farmland payments" have the objective of maintaining a cultivated agricultural 
landscape in the hill y and mountainous areas. Four of the six measures are per -hectare payments 
that are tiered according to the slope of the terrain and are conditional on landscape stewardship 
measures by farmers. The higher the location of the farm, the higher the direct payment. On the 
summer pasturing area (cove ring about 465,000 hectares), the "summer pasturing payments" 
have been maintained with environmental requirements for grazing livestock. The payments have 
been increased (except for sheep) to SwF 400 per livestock unit (up from SwF 320 under AP 
2011).24  
4.21.   The "payments for production systems" are intended to encourage environment -friendly or 
animal welfare -friendly methods of production. This DP category contains four pre -existing 
                                                
20 WTO (2013).  
21 The payment rate is SwF 450/ ha on permanent pastures that are cultivated as bio -diversity areas.   
22 This measure replaces the "livestock payments under difficult production conditions" (SwF 300 -
1,230/ha).  
23 This measure has been retained, albeit at a reduced payment rate (SwF 400/ha  compared with 
SwF 640/ha  under the AP 2011).  
24 About 3% of Swiss milk production (totalling 3.5 million tonnes) comes from summer pasturing.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  measures and one new incentive. The "payments for organic agriculture " (SwF 20 0-1,600/ha, 
depending on the crop) are linked to farming methods that comply with the Organic Farming 
Ordinance (RS  910.18). About 13% of the agricultural area was eligible in 2014.25 The "payments 
for extensive cereal and rapeseed production" have been mai ntained at SwF 400/ha. The 
"payments for pasture -based dairy and meat production" (SwF 200/ha) is a new measure to 
provide an incentive for pasture and roughage -based livestock systems. The animal welfare 
payments for outdoor systems and livestock housing systems have been retained.  
4.22.   The " biodiversity payments" comprise three pre -existing environmental measures which 
have been re -arranged under this DP category with enhanced incentives in some cases (SwF 450 -
3,800/ha). The incentives cover, for example, the  extensive use of pastures and meadows; 
hedges; or fallowing (SwF 3,300/ha).  
4.23.   The " payments for landscape quality" is a new incentive for regional projects, which are co -
financed by the Federation (90%) and the cantons (10%).  
4.24.   The " resource efficiency paym ents" comprise three new incentives for emission -reducing 
application techniques of manure; precision application of pesticides; and reduced tillage methods. 
The pre -existing incentives for resource protection projects (water conservation) have been 
mainta ined.  
4.25.   The " transition al payments" are intended to make the change to the new DP system socially 
acceptable. Farmers are compensated for any shortfall in annual direct payments after 
1 January  2014.26 The transition al payments are to be phased out over a pe riod of 8 years (2021).  
4.26.   The general eligibility criteria for direct payments include a set of environmental 
performance standards (proof of ecological performance), including a 7% bio -diversity area 
requirement. The maximum direct payment is SwF 70,000 per  annual work unit.27 Direct 
payments are degressive by farm size, income, and assets.28  
Table 4.1 Direct payments, 2012 -15  
 2012  2013  2014  2015  
General direct payments (AP 2011)  2,163  2,148  n.a. n.a. 
Ecologi cal direct payments (AP 2011)  641 667 n.a. n.a. 
Payments for ensuring food security  n.a. n.a. 1,096.1  1,093.5  
Basic payment    824.0  820.7  
Payment under difficult production conditions    160.3  160.5  
Payment for open arable land and permanent crops    111.8 112.3  
Farmland payments  n.a. n.a. 495.7  504.4  
Payments to maintain open landscape    140.6  140.8  
Steep slope payments    107.3  108.1  
Payments on very steep slopes    13.4 13.5 
Steep slope payments for wine growers    11.7 11.9 
Alpine pasturing payme nts   101.6  107.7  
Summer pasturing payments    121.0  122.3  
Payments for production systems  n.a. n.a. 439.5  450.1  
Payment for organic agriculture    40.4 42.5 
Payments for extensive cereal and rapeseed production    31.9 33.5 
Payments for pasture -based d airy and meat production    104.8  107.9  
Animal welfare payments (outdoor)    186.8  188.2  
Animal welfare payments (housing systems)    75.6 78.1 
Biodiversity payments  n.a. n.a. 364.1  386.6  
Quality payment    284.0  296.1  
                                                
25 Federal Office for Agriculture, Annual Report on Agriculture 2015 . 
26 Calculated at farm level as the difference  between the general DPs in 2011 -13 (highest value) and the 
sum of the payments for ensuring food security and the farmland payments.  
27 Excluding "transitional payments".  
28 The basic payment for ensuring food security  is reduced for farms larger than 60 ha ; transitional 
payments  are reduced from a level of income of SwF 80,000 and assets of SwF 0.8 million.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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   2012  2013  2014  2015  
Payment for bio -diversity network s   80.1 90.5 
Payments for landscape quality  n.a. n.a. 70.2 125.5  
Resource efficiency payments  n.a. n.a. 6.3 17.3 
Payment for emission -reducing application techniques 
of manure    2.1 
 6.2 
Payment for reduced tillage    3.8 10.4 
Payment for precision application of pesticides    0.3 0.7 
Payments for water protection and sustainable use 
of natural resources    31.0 25.5 
Transitional payments  n.a. n.a. 307.8  177.9  
Other  13 15 6.3 -2.3 
Total  2,791  2,798  2,773.5  2,777.9  
n.a. Not applicable.  
Note:  Paym ents for water protection and sustainable use of natural resources are not direct payments but 
another type of financial support. Since they are financed by the federal direct payments budget 
(and co -financed by the cantons), they are included in this tabl e.  
Source:  Federal Office for Agriculture (2015), Annual Report on Agriculture 2015  and information provided 
by the authorities.  
4.27.   Liechtenstein has its own direct payments scheme (109 farmers), which was last modified in 
2010 (Table 4.2).29 Direct payments averaged about SwF 109,000 per farm in 2013 (SwF  65,000 
in Switzerland), as the average farm size in Liechtenstein (33 ha) is significantly larger than in 
Switzerland (19 ha). The direct payments per hectare averaged SwF 3,335 in 2013, compared with 
SwF 3, 417 in Switzerland.  
4.28.   Liechtenstein has not followed suit in reforming its direct payments system in line with the 
Swiss AP 2014 -17, as this could weaken the competitiveness of its dairy and cattle sector, 
according to the authorities. A direct payment schem e with a strong focus on the production area 
would increase competition for the allocation of the already scarce cultivated land. Moreover, 
support for remote regions and agricultural crops are of minor importance in Liechtenstein.  
Table 4.2 Liechtenstein's direct payments, 2013 -15 
(SwF million)  
 2013  2014  2015  
Total direct payments  11.9 11.3 11.3 
Income supplements (farm income aids, payments for selected crops, 
payments for roughage -consuming animals, paym ents for pasturing)  6.2 5.7 5.6 
Environmental and animal welfare payments  5.2 5.0 5.1 
Payments for countryside stewardship in hilly and mountainous regions   0.5  0.5  0.5 
Source:  Liechtenstein authorities.  
4.1.2.2   Market support measures  
4.29.   In addition to price su pport through relatively high tariffs on some agricultural products, 
Switzerland also provides complementary domestic support measures. Switzerland's key domestic 
support instruments are (i) direct payments and (ii) subsidies and other government expenditu res 
for market support measures (Table 4.3). In its notifications to the WTO Committee on Agriculture, 
Switzerland has notified price support through applied administered prices for bovine meat, pig 
meat, milk, poultry meat (the four main products with pri ce support), and 15 other basic 
agricultural products. However, according to the authorities, Switzerland does not apply 
administered prices. "Observed" prices as close as practicable to the first point of sale are used to 
calculate the support (i.e. price s observed by the Federal Office for Agriculture and price data 
provided by agricultural organizations). Switzerland's last domestic support notification (calendar 
                                                
29 Ordinance on Agricultural Income S upplements (SR 910.023 ) of 23 March 2010.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  year 2013) shows a Current Total AMS of SwF  2,556  million, well below the bound Total AMS 
commitment level of SwF 4,257 million.30  
Table 4.3 Market support and direct payments, 2012 -15 
(SwF million)  
Measure  2012  2013  2014  2015  
Market support paymentsa  
Dairy sector, of which:  n.a. 301.3  295.5  295.4  
Subsidy for milk processed into cheese  265.3  266.4  261.8  262.1  
Subsidy for feeding without silage  32.7 32.4 31.2 30.9 
Plant production, of which:  72.0 80.5 63.6 62.3 
Crop premiums ( RS 910.17)  69.0 70.8 60.1 59.6 
Direct payments  2,791  2,798  2,773.5  2,801  
n.a. Not applicable.  
a Including export subsidies.  
Source:  Federal Office for Agriculture, Annual Report on Agriculture , various issues.  
4.1.2.3   Milk 
4.30.   About 40% of Swiss farms (22,000) produce milk for sale. Since the elimination of the milk 
quota system on 1 May 2009, milk production has increased to a new record of 3.54 million tonnes 
in 2014 (up from 3.42 million tonnes in 2008), including approximately 29,000 tonnes originating 
in Liechtenstein and the free zones around Geneva in neighbouring France.  
4.31.   In Liechtenstein, milk production is constrained by a production quota (of 14,600  tonnes  in 
2014, with 57 farms producing in that year ). According to the authorities, the advantages of the 
milk quota outweigh its disadvantages , and representatives from the mi lk sector have declined an 
exit from the milk quota system. In the period 2005 -12, the Government provided SwF 12 million 
in terms of financial support for modernizing the dairy sector (dairy industry and on -farm 
processing).  
4.32.   The key internal support inst rument is a subsidy for milk processed into cheese 
(SwF 0.15/kg of raw milk, unchanged since the last Review).31 Since cheese production accounts 
for over 40% of milk deliveries, the subsidy provides support to the broader domestic raw milk 
market. Accordin g to the authorities, given that milk production is traditionally the only income 
possibility open to farmers in mountainous regions, the subsidy for cheese production has 
important socio -economic effects and helps to achieve the aim of a decentralized pop ulation. 
Exports of cheese also benefit from indirect support through the subsidy for milk processed into 
cheese, although the subsidy is not contingent on exports. WTO Members have previously 
questioned the Green Box compatibility of the subsidy for milk processed into cheese,  notified by 
Switzerland in terms of a regional assistance programme .32 The subsidy for "feeding without 
silage" is aimed at assisting the production of non -pasteurized specialty cheeses (unchanged at 
SwF 0.03/kg of raw milk). In addit ion, dairy farmers benefit from direct payments (Table 4.3).  
4.33.   Since July 2013, the pricing policy for raw milk deliveries is based on market segmentation. 
Initially IP LAIT (the Swiss interbranch organization for milk) introduced this measure for its 
membe rs. In a second step, IP LAIT requested the extension of the measure to non -members, 
which was granted by decision of the Federal Council. The policy is implemented by IP LAIT to 
guide dairy farmers' production decisions and restrain surplus production; th e policy is obligatory 
for both members of IP LAIT and non -members until 31 December 2017.  
4.34.   The "A segment" comprises domestic sales of milk products that benefit from tariff 
protection and domestic support (cheese subsidy); (ii) the "B segment" includes w orld market 
exports of skimmed -milk powder (milk protein) and domestic sales of butter (milk fat); (iii) the 
                                                
30 WTO document G/AG/N/CHE/72, 10 August 2015.  
31 Ordinance on Supplementary  Payments and Aid in Relation to Milk (RS 916.350.2).  
32 "Allowance for milk processed into cheese", see WTO document G/AG/CHE/ 72, 10 August 2015 .  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  "unsupported C segment" comprises world market exports of butter and SMP.33 In 2015, 85.0% of 
milk deliveries were in the A segment, 13.1% in the B segment and 1.9% in the C segment. A new 
dairy export enterprise (LactoFama AG), established by the Swiss milk producers organization and 
a number of regional producer organizations in 2014, is active in the C milk segment to dispose of 
surplus production,  notably butter and other milk -fat. These exports are financed by a contribution 
of the milk producers (SwF 0.35/kg marketed milk, limited until 31 December 2016) that are 
members of the Swiss milk producers' organization.  
4.1.2.4   Grains, oilseeds and sugar  
4.35.   The m ain domestic support instruments for arable crops are direct payments and crop 
premiums (Table 4.4). The crop premiums are aimed at ensuring food and feed security (Article 54 
of the Federal Law on Agriculture) by strengthening the competitiveness of grain s, oilseeds, 
pulses, sugar beets and certain seeds, which tend to benefit from lower border protection than 
livestock products. Under the AP 2014 -17, the eligible crops and payment rates have been 
modified. The crop premiums are not subject to payment limi ts but a graduation of payments 
applies (same as for DPs) and they may be cumulated with other payments. Switzerland has 
included the crop premiums as "other product -specific support" (Supporting Table  DS:7) in its 
calculation of the Total Current AMS.34  
4.36.   About 53% of the 2015 crop premiums were allocated to sugar beets. The support was 
increased to SwF 1,800/ha in 2016 (up from SwF 600/ha in 2014 -15), in anticipation of the 
elimination of the EU sugar quota system in 2017 , which may enhance price competitio n for Swiss 
and Liechtenstein sugar beet growers. In Switzerland and Liechtenstein, sugar production is 
constrained by quotas agreed on a private basis between the sugar refineries and the sugar beet 
producers. The 2015/16 industry agreement provides for a  Switzerland -Liechtenstein quota of 
260,000 tonnes ("A sugar").  Sugar production was 305,000 tonnes in 2014. The surplus 
management is handled by private actors, where the Confederation has no role, according to the 
authorities.  
Table 4.4 Crop premiums, 2013 -15  
Total expenditures  
(SwF million)  Eligible crops  Payment rate 
(SwF/hectare)  
2013 2014 2015 
27.4 20.4 21.3 Rapeseed, sunflower, pumpkin (for oil), linseed, 
poppy and safflower  
Soya 700 
 
1,000  
2.1 1.6 1.5 Seed potatoes and seed maize  
Seed legumes and grasses (for feed)  700 
1,000  
4.1 4.6 5.4 Pulses (for feed)  1,000  
37.1 33.5 31.4 Sugar beets  1,800  
Source:  Ordinance on premiums for arable farming (RS 910.17); Federal Office for Agriculture, Annual 
Report on Agriculture, various issues.  
4.1.3   Export subsidies  
4.37.   Switzerland has export subsidy reduction commitments with respect to five product 
categories (dairy products; breeding cattle and horses; fruit; potatoes; and processed products). 
Switzerland eliminate d export subsidies for basic agricultural products (dairy products; fruit; and 
potatoes) on 1 January 2010. Switzerland's latest export subsidy notification covers 2015.35  
4.38.    Export subsidies remain in place on processed agricultural products. Export subsidi es may 
be granted pursuant to the Federal Law on Import and Export of Processed Agricultural Products of 
13 December 1974 (R S 632.111.72) . They are subject to a ceiling of SwF 114.9 million under 
                                                
33 The reference price for A -milk was reduced to SwF 0.65/kg in April 2016, down from 0.68/kg. For B -
milk and C-milk, the reference prices were, respectively, in the range of SwF 0.45 -0.49/kg and SwF 0.15 -
0.26/kg  (January -October 2016). The average producer price for milk was SwF 0.62/kg in 2015 (information 
provided by the authorities).  Reference prices for agri cultural products are published by producer and industry 
organizations; they are not mandatory (Art. 8a of the Federal Law on Agriculture).  
34 WTO document G/AG/N/CHE/71, 21 January 2015.  
35 WTO document G/AG/N/CHE/7 9, 18 January 2017 . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Switzerland's export subsidy reduction commitments. The expo rt subsidies are intended to 
compensate the domestic food manufacturing industry for the price handicap of using 
tariff-protected locally produced agricultural raw materials (" loi chocolatière "). The following 
product groups are eligible for refunds when t hey are incorporated or processed into food products 
falling under  HS chapters 15 -22: certain milk and dairy products; and products of the milling 
industry (i.e. flour and other milled products).36 Export refunds for sugar/molasses and egg 
products incorpor ated into processed products were suspended on 1 February 2012 and export 
refunds were abolished for skimmed milk on 1 December 2012. The export refunds are periodically 
adjusted by the Federal Department of Finance according to the difference between dome stic and 
world market prices of the beneficiary basic agricultural products.37 They are calculated on the 
basis of the net content of the raw materials incorporated in to the final products. Information on 
the export subsidies granted per tariff line is not available. The refunds are paid to manufacturers 
after exportation and are subject to checks. In 2015, about 6% of Swiss milk production and about 
11% of wheat production was exported as processed products with refunds through the price 
compensation scheme .38 
4.39.   Export subsidies for processed agricultural products are subject to an annual budget (on a 
fiscal year basis from December to November).39 The export subsidy budget for 2015 was 
increased from SwF 70 million to SwF 95.6 million (Chart 4.1), following the  appreciation of the 
Swiss Franc when the minimum exchange rate of 1.20 SwF per euro was lifted on 15  January  2015 
(Section 1 .2). Within the budget of SwF 95.6 million for fiscal year 2015, SwF 79.85 million were 
allocated to (incorporated) milk and dairy products and SwF 13.16 million to flour and other milled 
products. The annual budget s for the fiscal year s 2016 and 2017 were fixed at SwF 94.6  million , 
respectively. The funds are allocated as follows: SwF 81.593 million for incorporated milk and 
dairy pr oducts , and SwF 13.007 million for flour and other milled products  in fiscal year 2016;  and 
SwF 81.877 million and SwF 12.723 million, respectively , in fiscal year 2017. For fiscal years 
2018-20, SwF 67.9 million annually has been budgeted. A portion of th e annual budget (75%) can 
be reserved by manufacturers for the subsequent year; the remainder is available for newcomers 
and manufacturers that have exhausted their entitlements. Liechtenstein companies are eligible for 
export refunds under the Swiss price  compensation scheme within the framework of the Customs 
Union.  
4.40.   The Nairobi Package adopted during the Tenth Ministerial Conference in December 2015 
contains a commitment to immediately abolish remaining scheduled export subsidy entitlements 
by developed c ountries. This decision also affects Switzerland's expor t subsidies with respect to 
(i) cattle for breeding, and horses; and (ii) processed agricultural products, albeit with a phase -out 
period of five years. In accordance with the Ministerial Decision of 18 December 2015 on Export 
Competition, "This paragraph shall not cover processed products, dairy products, and swine meat 
of a developed Member that agrees to eliminate as of 1 January 2016 all export subsidies on 
products destined for least developed cou ntries, and that has notified export subsidies for such 
products or categories of products in one of its three latest export subsidy notifications examined 
by the Committee on Agriculture before the date of adoption of this Decision. For these products, 
scheduled  export subsidies shall be eliminated by the end of 2020, and quantity commitment 
levels shall be applied as a standstill until the end of 2020 at the actual average of quantity levels 
of the 2003 -05 base period. Furthermore, there shall be no expor t subsidies applied either to new 
markets or to new products."40  
                                                
36 Ordinance Regulating  Export C ontributions for Processed Agricultural Products (RS 632.111.723) of 
23 November 2011. The last amendment of the ordinance dates from 1 April 2016.  
37 EU markets in the case of exports to the EU.  
38 Federal Office for Agriculture (2016) . 
39 In the Sw iss notifications to the Committee on Agriculture, export subsidies for processed products 
are reported on a calendar year basis.  
40 See Paragraph 6, footnote 4 of WTO document WT/MIN(15)/45 , WT/L/980 , 21 December 2015 . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Chart 4.1 Export subsidy expenditures for processed agricultural products, 2010 -15 
(SwF million)  
85.0
80.0
70.0 70.0 70.095.6
020406080100
2010 2011 2012 2013 2014 2015Chart 4. Export subsidy expenditures for processed agricultural products, 2010 -15
WTO notifications and Federal Office for Agriculture, Rapport Agricole 2015. Source:Fiscal year starts in December of the preceding year. Note:(SwF million)
 
Note:  Fiscal year starts in December of the preceding year.  
Source:  WTO notifications and Federal Office for Agriculture, Annual Report on Agriculture  2015. 
4.41.   To implement the Nairobi Ministerial Decision on Export Competition, the Federal Council 
issued a revision (in force since 1 April 2016) of the  Ordinance Regulating Export Contributions for 
Processed Agricultural Products that terminates export subsidies on products destined for LDCs.41 
Furthermore, the Federal Department of Economic Affairs, Education and Research opened a public 
consultation in 2016 (closed on 19 January 2017) to address the phase -out of export subsidies for 
processed agricultural products. The proposal under consideration contains two instruments: new 
product -specific support for milk and cereals for human consumption that would  be granted in the 
form of direct payments to farmers; and a facilitated inward processing regime for basic dairy 
products and cereals. Entry into force of the reform is envisaged for January 2019.  
4.42.   Furthermore, during the review period, export subsidies w ere provided for (a few) horses on 
a cantonal level by the Canton of Jura only.42 According to the authorities, in 2016 the cantonal 
government of Jura worked on the necessary legal adjustments for the implementation of the 
Nairobi Ministerial Decision on E xport Competition.  
4.43.   The Swiss Confederation assists Swiss farmers' organizations and inter -professional 
organizations to promote their agricultural products on the internal market and abroad. In 2015, 
approximately SwF 60 million were granted to around thir ty promotion and marketing 
organizations. A large part of the financial support is dedicated to the promotion of cheese, meat, 
milk, fruit and potatoes. The marketing campaigns for organic products and for PDO/PGI products 
are also co -financed. Each year, the organizations have to apply for financial support of their 
promotion al activities for the following year. Their activities can be co -financed by the 
Confederation up to a maximum of 50% of the costs, but only for market research and the 
following commu nication instruments: advertising (print, TV, radio, online, etc.), new media 
(homepage, social media, etc.), sales promotion ( tastings , advertising material, training, etc.), 
public relation s, events, fairs, sponsoring, and direct -marketing. Price-related  activities (for 
example , a price  reduction on products ) and distribution costs are not eligible for financial support.  
4.1.4   Level of support  
4.44.   According to OECD estimates, Switzerland's support to agricultural producers ( producer 
support estimate – PSE) decline d from SwF 10.7 billion annually in 1986 -88 to 5.8 billion in 2013, 
which reflects the Swiss agricultural policy reforms implemented since the early 1990s. Since 
2013, the support has increased, albeit largely for reasons beyond the control of government a nd 
                                                
41 RS 632.111.723, Art. 2a, 11 March 2 016. 
42 In 2015, 64 horses were exported with subsidies totalling SwF 22,400.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  related to lower world market prices for agricultural commodities.43 Payments to agricultural 
producers (SwF 3.5 billion in 2015), including direct payments, crop premiums, and the subsidy for 
milk processed into cheese, accounted for almost half of the support to farmers.44 The OECD 
estimates that, in addition, Swiss farmers benefitted from price support in the magnitude of 
SwF 3.9 billion in 2015.45 Market price support, as defined by the OECD, comprises all policy 
measures that raise the domestic price r elative to the border price of the commodity concerned, 
including border measures (tariffs, tariff quotas, and other import restrictions), administered 
prices, and export subsidies.  
4.45.   The percentage PSE (i.e. the support as a share of gross farm revenues) wa s 62% in 2015 
(up from 49% in 2013), meaning that almost two thirds of farmers' revenues were due to support 
policies (mainly tariff protection and direct payments).46 In relative terms, Swiss farmers received 
over three times more support than EU farmers ( PSE of 19%). Furthermore, Swiss producer prices 
for agricultural products were about 90% higher than world market prices in 2015 (nominal 
protection coefficient of 1.9) – one of the factors contributing to the concerns regarding the "high -
price island" of Switzerland (Section 1.2).  
4.46.   About half of the Swiss support is tied or allocated to individual commodities, which tends to 
distort farmers' production decisions. The highest level of product -specific support and protection 
(according to the OECD single comm odity transfer estimates) goes to poultry and eggs (SCTs of 
76% and 73%), followed by pig meat (SCT of 58%), milk (SCT of 46%), rapeseed (SCT of 45%), 
and beef and veal (SCT of 42%). The share of decoupled support that does not require production 
is still low in Switzerland (14% of the PSE in 2015). Other countries have gone much further than 
Switzerland in decoupling support (for example, 45% of the 2015 PSE in the EU does not require 
production), which should help reduce production distortions.  
Table 4.5 OECD producer support estimate (PSE) for Switzerland, 2013 -15 
 2013  2014  2015  
Total value of production at farm gate  8,448.3  8,432.4  8,418.4  
Producer support estimate (PSE) (1+2)  5,841.0  6,692.3  7,446.2  
Price support (1), of which  2,280.9  3,168.4  3,930.3  
Milk -5.6 415.1  746.2  
Beef 366.2  481.2  502.0  
Pig meat  512.8  528.8  583.4  
Payments to producers (2), of which  3,560.1  3,523.9  3,515.9  
Milk price supplement for cheese production  266.4  261.8  262.1  
Area p ayments to sugar beet  37.1 33.5 37.0 
Payment for oilseed cultivation  27.4 20.4 25.0 
Interest rate concessions  111.0  113.0  114.0  
Area payment (from 1999 to 2013)  1,196.0  0.0 0.0 
Payments for ensuring food supplies – Basic contribution  0.0 824.0  821.0  
Transitional payments (from 2014)  0.0 307.8  178.0  
                                                
43 With lower world market prices in U.S. dollars, the price gap between world and domestic prices 
increases (other factors remaining equal), and in Switzerland this effect was onl y partly offset by a stronger 
U.S. dollar vis-à-vis the Swiss franc.  
44 OECD (2016).  
45 This is a rough estimate since price gap estimates were only made for the major agricultural 
products, with extrapolation to the remainder of the agricultural products.  
46 The percentage PSE is a useful indicator for comparisons over time and among countries, inter alia , 
because it eliminates the effect of inflation.   WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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   2013  2014  2015  
Percentage PSE (as a percentage of gross farm receipts, incl. (2))  48.6 56.0 62.4 
Single commodity transfers (SCT) as a percentage of PSE  29.9 40.0 48.8 
Nominal protection coefficient (NPC)  1.4 1.6 1.9 
Note: PSE: Total annual monetary transfers to farmers individually (not agriculture generally) from: 
market price support mainly through border measures but also food aid, export subsidies (calculated 
by the price gap between domestic and border price); pay ments to farmers; and tax/fee reductions 
(revenue forgone).  
 SCT: Sum of transfers to producers granted to a single commodity. The % SCT is expressed  as a 
share of gross farm receipts for the specific commodity.  
 NPC: Nominal protection coefficient. Ratio between the average price received by producers and the 
border price (the average producer price includes payments based on current output, e.g. deficiency 
payments).  
Source:  OECD PSE database. Viewed at: http://www.oecd.org/tad/agricultural -policies/ 
ForDistribution___CHE.xls . 
4.47.   Overall, Switzerland is in line with the trends in the OECD and the EU in making reforms 
towards less trade -and-production -distorting measures ( Chart 4.2). The arrows in the chart 
suggest that Swiss agricultural policy has generally been heading in the right direction, but the 
process of market -oriented reforms needs to be faster to enhance the competitiveness of Swiss 
agriculture. As noted in Section 3.3.6,  domestically there are some calls for policy -makers  to 
consider reducing border protection towards free trade in agricultural products and replace the 
high tariff protection with more efficient and targeted instruments.47 
Chart 4.2 Level and composition of support to agricultural producers  
(%) 
0102030405060708090100
0 10 20 30 40 50 60 70 80 90 100Chart 4.1 Level and composition of support to agricultural producers
The level of support is presented by the percentage PSE. The composition of support is presented by the 
share in gross farm receipts of market price support, payments based on output, and payments based on 
non-constrained variable input use.Note: Switzerland
OECD
2013 -151995 -97Share of support based on 
commodity output and non -
constrained variable input use in 
the PSE
PSE(%)
OECD (2016), Agricultural Policy Monitoring and Evaluation, PSE/CSE database, Paris. Source:1986 -88European Union
 
Note:  The level of support is presented by the percentage PSE. The composition of support is presented by 
the share in gross farm receipts of market price su pport, payment based on output, and payments 
based on non -constrained variable input use.  
Source:  WTO Secretariat representation based on OECD (2016), Agricultural Policy Monitoring and 
Evaluation , PSE/CSE database, Paris.  
                                                
47 See Price Supervisor online information at: 
https://www.preisueberwacher.admin.ch/pue/fr/home/themes/divers/agriculture.html . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.2  Mining and Energy  
4.2.1   Energy  
4.2.1.1   Switzerl and 
4.48.   Switzerland's  total primary energy supply (TPES) totalled  25.9 million tonnes of oil 
equivalent (MTOE) in 2015: oil (42.3% ), nuclear (22.2% ), hydroelectricity (13%), natural gas 
(11%), and biofuels and waste (11.10% ). 
4.49.   Final energy consumption in Switze rland is shown in  Chart 4.3 below.  
Chart 4.3 Final energy consumption, 2015  
Stationary fuels
16.0%
Motor fuels
35.0%Electricity
25.0%Gas
13.0%Other
11.0%Chart 4. Final energy consumption, 2015
Swiss Federal Office of Energy SFOE, Energy Consumption in Switzerland 2015, June 2016. Source:Total:  838,360 TJ
 
Source:  Swiss Federal Office of Energy (SFOE ), Energy Consumption in Switzerland, June 2016.  
4.50.   Final sectoral consumption for 2015 wa s split between households (27.7% ), industry 
(18.5% ), services (16.5% ) and transport (36.4% ). 
4.2.1.2   Recent developments in  the general policy framework  
4.51.   To a large extent, the main energy -related  regulatory changes during the period under 
review were limited to t he electricity sector and , to a lesser extent , to related environmental 
measures.  
4.2.1.2.1   Electricity  
4.52.   In 2015 , electricity represented 25.1% of total  energy  consumption. Electricity  consumption 
reached 58.2  billion TWh in 2015 (+1 .4% from 2014) , or 62.6 billion TW h taking into account the 
losses due to transport and pumping for pump -storage plants. On the supply side , national 
production amounted to  66 billion KWh ( -5.3% as compared to 2014) and there was a net export 
surplus of 1 bn KWh (against 5.5 bn KWh in 2014 ). Hydro -electricity represented 59.9% of 
production, nuclear plants 33.5% and conventional thermal plants and renewable energy 4.5% (of 
which 1.9% renewable waste, 1.8% photovoltaic, 0.5% biomass, 0.2% biogas, and 0.2% wind).  
4.53.   Final sectoral use of electr icity was split between households (32.2%), industry (30.9%), 
services (27.1%), transport (8.1%) and agriculture (1.7%). The average end price of energy st ood 
at 16.95 cents per KWh and the consumption per inhabitant st ood at 2,233 KWh. In 2015 , 
Switzerlan d imported 42.3 bn KWh , but exported 43.3 bn KWh, its partners being Italy, France, 
Germany and Austria.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.54.   In 2014 , 334 companies – producing electricity on their own account or for third parties  – 
represented 90% of total production. Their total balance she et stood at  SwF 80.2 billion and total 
profit at SwF 4,427 million. Their total capital stock is 88.7% owned by public entities (the national 
railway company SBB/CFF/FFS owns 1.3% of the total, the cantons 56.7% and the municipalities 
30.6%), 7.5% owned by  private sector actors and 3.9%  owned by foreign interests. The private 
sector is preponderant in production and transport activities , while the public sector is dominant in 
distribution activities.  
4.55.   The energy strategy of Switzerland,  particularly regardin g electricity , has recently been  
completely overhauled  by new legislation adopted by the Parliament on 30 September 2016. This 
follows a long period of consultations, public debate and parliamentary procedures regarding  the 
"Energy 2050 Strategy", triggere d by the Fukushima nuclear incident in March 2011 and the 
fundamental d ecision taken by the Federal Council as early as May 2011 to progressively abandon 
nuclear electricity production in Switzerland  – a decision endorsed by the Parliament in its 2011 
winter session.  
4.56.   This legislation remains suspended until the results of a referendum scheduled for 
21 May 2017.  
4.57.   As an interim measure , on 21 June 2013 the Parliament adopted a partial revision of the 
energy law which entered into force on 1 January 2014 and i ncreased the minimum amount of the 
"grid surcharge" from 1.3 centimes per KWh to 1.5 centimes  per KWh , while exempting large 
electric consuming enterprises from it (i.e. the fee paid by the final consumer that covers the 
difference between the production c ost and the market price, and guarantees producers of 
electricity from renewable sources  - solar, wind, geothermal and bio -mass -) a price that 
corresponds to their production costs . A partial revision of the Law on the Use of Hydro-Force 
(RS 721.90) in 20 12 also clarified that there is no obligation to tender for the award of concessions 
for electrical networks and hydropower plants , but that transparent and non –discriminatory 
procedures  must be follow ed.  
4.58.   The main provisions of the new energy law48 and its  first package of measures are as 
follow s. Firstly, the law sets indicative consumption, production, and emissions targets. Compared 
to 2000, energy consumption per capita should diminish by 16% in 2020 and 43% in 2035, and 
consumption of electricity per c apita by 3% in 2020 and by 13% in 2035. The local production of 
electricity from renewable energies (discounting hydropower ) starting from a 2015 baseline of 
2,830 GWh, should raise to 4,400 GWh in 2020 and 11,400  GWh in 2035. Hydropower production 
should diminish slightly from 39,500 GWh in 2015 to 37,400 GWh in 2035. Furthermore, t he public 
financing of energy research was increased by 25% in 2013 from SwF  200 million to 
SwF 250 million, and stricter standards of energy efficiency will be created for buil dings, machines, 
vehicles and other equipment while new energy labels will be introduced. Publicity campaigns and 
vocational training programmes on energy efficiency will also be extended.  
4.59.   Other amendments contained in the first package of measures include  the increase in the 
grid surcharge rate from SwF  0.015/KWh to SwF 0.023/KWh , including 1.3  ct/KWh for feed -in 
tariffs for renewables, 0.2  ct/KWh for investment aid for rooftop photovoltaic  systems , 0.3 ct/KWh 
for support for large hydro which is suffering  from depressed European wholesale prices, 
0.2 ct/KWh for reimbursement of the grid surcharge to electricity -intensive industries, and 
0.1 ct/KWh for renaturation of rivers and a few other measures to support renewables and energy 
efficiency. In addition, the feed -in tariffs will be replaced by feed -in premiums to entice producers 
to sell their electricity when demand is high , giving them  an incentive to sell electricity when it is 
in short supply and thus fetches a higher price. This system is  of limited d uration , as it will only be 
granted for up to five years after the coming into force of the new law.   
4.60.   The Energy Strategy 2050 also extends the one -off investment grants to new beneficiaries. 
This one -time subsidy that covers a maximum of 30% of the invest ment costs of a comparable 
installation ( reference installation) was currently available only for operators of small photovoltaic 
installations, with a production capacity of less than 30 kilowatts. Larger photovoltaic installations 
will now also benefit f rom one -off investment grants and so will large, new hydro -electric power 
stations with a production capacity of more than 10 megawatts, as well as large -scale renewals or 
extensions of hydro -electric power stations. The financing will come from the networ k supplement 
                                                
48 The full text of the law is available at:  https://www.admin.c h/opc/fr/federal -gazette/2016/7469.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  paid by electricity consumers. Investment contributions (including one -off investment grants) will 
be available until 2030 at the latest.  
4.61.   In addition , since prices in European electricity trading are exceptionally low due to 
overcapacity and f altering demand, most Swiss hydro -electric power stations can no longer cover 
their costs . Hence, as hydro -electric power is a mainstay of Swiss electricity supply, Parliament 
voted as part of the Energy Strategy 2050 not only to support new installations (where investment 
can be expected if and when prices recover), but also to grant financial support to existing ones. It 
will be possible to claim a market premium for electricity produced by large -scale Swiss hydro -
electric power stations which must be sol d for less than the cost of production. This premium is 
capped (1.0 ct/KWh) and the total available financial resources are limited. This measure is valid 
for a period of five years and is financed by the network supplement paid by electricity consumers. 
In the meantime, a reform of the "water royalty"(i.e. the compensations granted to the local 
population whose activities have been affected by the construction of the hydro -electric facilities), 
which accounts for up to 25% of hydropower operating costs, is  to be decided by 2019.  
4.62.   Finally , the law shortens and simplifies approval procedures for new installations for the 
production of electricity from renewable sources. Thus, from now on, the submission of expert 
assessments from, for example, the Federal Com mission for the Protection of Nature and Cultural 
Heritage , will be subject to a time -limit. Meanwhile , if there is a conflict of interest s between the 
protection of nature and the landscape and their use for the production of renewable energies and 
if a court of law is required to  decide between the two, both concerns – protection and use – will in 
future be granted the status of national interest and be given equal value when weighed against 
each other.  
4.63.   Another parallel and important regulatory developmen t regarding electricity  is the decision 
taken by the Federal Council on 4 May 2016 to suspend indefinitely the full liberalization of the 
electricity market. This followed a public consultation process which took place between 
October  2014 and January 2015 . Under the original plans, the free choice of electricity provider 
(currently limited to industrial users consuming over 100,000 KWh a year which represent 53% of 
the demand) would  have been extended to all consumers, including households, as of January 
2018. The Federal Council has indicated that full liberalization will now depend on:  
 the conclusion of negotiations regarding  an electricity agreement with the European 
Union (initiated in 2007 and suspended in April 2015 by the EU pending resolution of 
issues related to free movement of persons and an institutional agreement between 
the EU and Switzerland);  
 the progress achieved by the Energy Strategy 2050;  
 the prevailing market conditions; and  
 the revision of the Federal Electricity Supply Law. 
4.64.   An assessme nt of these  four parameters is planned for 2017.  
4.2.1.2.2   Environmental measures  
4.65.   The revised law on CO 2 emissions of 31 December 2012 entered into force on 
1 January  2013 ( RS 641.71) together with its implementing ordinance of 30 November 2012 
(RS 641.711). Switze rland has undertaken to reduce its greenhouse gas emissions by 2020 by 
20% compared to 1990. In order to achieve that goal , the burden of reduction has been split 
between the residential sector and the transportation sector , taking into account the reducti on 
potential of each sector. A SwF 25  million technology fund  has been  set up to guarantee loans to 
companies  that are innovative in their use of energy . The CO 2 levy on fossil fuels increased from 
SwF 36 per tonne of CO 2 to SwF 60 , and recently  to SwF 84.  If emission targets are not met, the 
levy may be increased  up to SwF 120 until 2020. Part of the revenue from this levy is earmarked 
as additional finance for an ecologic building programme which started in 2010. Some sectors 
which are exposed to internat ional competition may be exempted from the CO 2 levy, provided they 
accept binding emission reduction targets.  
4.66.   An emission s trading system (ETS) has been developed which according to the authorities is 
compatibl e with the EU ETS system. Fuel importers are required to use  Switzerland -based  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  measures to compensate  for up to 10% of transport emissions. Since 2015, CO 2 emissions from 
new cars registered in Switzerland are limited to 130  g per km. Fossil fuel power plants are 
required  to compensate for their emis sions, 50% of which within Switzerland. Following a 
modification  on 1 January  2015 of the Ordinance on the Taxation of Mineral Oils (RS  641.611), all 
fuels derived from renewable raw materials are exempt from the petroleum tax provided they 
meet minimum ec ological and social standards.  
4.67.   In addition , following adoption of the  Paris Agreement which should be ratified by 
Switzerland in 2017, Switzerland has announced its intent to reduce its greenhouse gas emission s 
by 50% compared to the 1990 level  by 2030. A  draft of the revised CO 2 law, proposing  measures 
to reach this target, was opened to  public consultation in autumn  2016.  
4.2.1.2.3   Oil 
4.68.   Switzerland has no domestic production of crude oil and Swiss oil demand is fully met by 
imports.  Its main partners for imports o f crude oil in 2015  were Nigeria (39%), Mexico (17%), the 
United States (12%), Kazakhstan (8%), Libya, Azerbaijan and Turkey (6% each). These 
importations are increasingly diversified. In particular , North America has emerged as a new major 
source of suppl y. As far as refined products are concerned the main partners for imports were for 
the same year Germany (51%), Italy (13%), France, the Netherlands (12% each) and Belgium 
(9%). More than 99% of refined products come from EU countries , as has been the  case for the 
past 15 years. Oil imports have decreased from about 13 million tonnes per annum (mtpa) in the 
early 2000s to 12.4 mtpa in 2013 and 10.9 mtpa in 2015. This is partly due to the CO 2 incentive 
tax imposed since 2008 on fossil fuels, as well as to oil substitution through natural gas and 
renewable energies and efficiency gains in transportation, heating etc. Due to the closure of the 
Collombey refinery in March 2015, the share of crude oil in Swiss oil imports has decreased from 
around 37% to circa a quarter.  
4.69.    In 2015 , Switzerland consumed 9.89 million tonnes of petroleum. Motor fuels and hence 
transport usages represented 68.4 % of this total (of which gasoline 25%, diesel 26.8%, and 
aviation fuel  16.7%), and stationary fuels 31.6 % (of which light fue l oil 30.5%, heavy fuel oil 
0.1%, petroleum coke 0.2% , and others 0.8%).  
4.70.   According to CARBU RA, the importer association, the number of importers stood at 59 in 
2015, the 8 largest of which accounting for more than two third s of the imports. The sector is 
entirely in private hands and opened to foreign investment. The importation of crude oil an d oil 
products is mainly carried out by pipelines, rail tank cars, trucks and Rhine barges, with pipelines 
accounting for the largest share (35.1% in 2015). Switzerland has one pipeline for oil products 
(connected to France) and two for crude oil. The firs t one is connected to France. The second one, 
connected to Italy, has stood  still since the closure of the Collombey refinery.  
4.71.   Regarding refining, there is only one refinery left in Switzerland (Cressier ) after the closure 
of the Collombey plant in March 2015. The refinery in Cressier belongs to the Dutch -based 
company Varo Energy. It is supplied with crude oil by one cross -border pipeline owned also by 
Varo Energy; it has a production capacity of 68,000 barrels per day and it provides about a quarter 
of the refined products consumed in Switzerland.  
4.72.   Regarding distribution, t he retail market is fully open to competition, and 20 oil retail 
companies operate 3,461 filling stations in Switzerland as of January 2016. The largest are Avia 
(604 stations), Agrola ( 430), BP (361), Ruedi Rüssel (339), Migrol (310), Tamoil (262), ENI Suisse 
(259), Shell (234) and COOP (233). The share of biodiesel in total road fuel supply (gasoline and 
diesel) remains very small at only 1.1%.   
4.2.1.2.4   Gas 
4.73.   In 2015 , natural gas represented 11.0 % of the total primary energy supply of Switzerland. 
For the same year, the inland consumption was split between the residential sector (39%), the 
industrial sector (33%), the commercial sector (21%), power generation (6%) and transport 
(1%).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.74.    Switzerland  has no domestic production of natural gas. The share of gas in the energy mix 
and in particular in electricity generation (where it represented only 1.0% in 2015) is likely to rise 
in the coming years due to the nuclear phase -out. Total imports reached 3. 5 billion cubic meters 
(BCM) in 2015, 63% of which comes from Germany, 20% from the Netherlands and 14% from 
France. In 2015 , the main importers were Swiss Gas AG (50% of the total), followed by EGO 
(17%), GVM (15%), Gaznat SA (9%) and Ail (3%).  
4.75.   Switzerlan d has a gas pipeline network of 19,703 km (2,243 km of high -pressure grid, 
4,680  km of middle -range pressure grid , and 12,780 km of low -pressure grid). Although 
Switzerland has 12 active cross -border feeding points in the European gas pipeline network (plu s 
one entry -exit and three exit points), some 70% of Switzerland's gas imports comes through the 
two northern entry points of the Transitgas pipeline. This pipeline is operated by Transitgas AG, 
which is owned by Swissgas (51%), FluxySwiss (46%) and Uniper , a wholly  owned subsidiary of 
E.ON Ruhrgas (3%).  
4.76.   Switzerland has 86 gas utilities, the vast majority of which are akin to the electricity 
utilities, and are typically local monopolies owned by the cantons and municipalities. They are also 
often involved i n other activities, such as supplying electricity, heat or water. The utilities vary 
greatly in size. In 2015, the nine biggest, those of the largest cities, sold half of the gas, whereas 
the 43  smallest utilities (half of the total) accounted for only 10%  of total sales. Vertical 
integration in gas transmission and distribution is strong. For purchasing gas, the local monopolies 
have set up four regional associations: Gasverbund Mittelland AG, Erdgas Ostschweiz AG, Gaznat 
SA and Erdgas Zentralschweiz AG (E GZ). Each association operates its own high -pressure grid and 
supplies gas to its owners at cost. The associations, in turn, obtain most of the gas at cost through 
Swissgas AG, the gas industry's vehicle for imports (see Table 4.6). Except for EGZ, the reg ional 
associations also have direct import contracts with foreign suppliers.  
Table 4.6 Shareholders of Swissgas AG, 2015  
Shareholder  Share (%)  
Erdgas Ostschweiz AG, Zurich (EGO)  25.98  
Gasverbund Mittelland AG, Arlesheim (GVM)  25.98  
Gaznat SA, Lausanne/Vevey  25.98  
Swiss Gas Association, Zurich (VSG)  16.45  
Erdgas Zentralschweiz AG, Lucerne (EGZ)  5.61 
Source:  International Energy Agency.  
4.77.   The Swiss gas market is largely self -regulated. There have been no c hange s to the 
regulatory framework during the period under review, which includes  the 1963 Pipelines Law 
(SR 746.1) guarantee ing third-party access to the high pressure grid, including cross -border 
transit. The law entrusts the Swiss Federal Office of Ener gy with the responsibility for settling 
disputes over high pressure grid access and tariffs .  
4.78.   The gas industry concluded an agreement governing network access with two associations 
of major industrial customers (IGEB and IG Erdgas) on 1 October 2012 . This agreement is referred 
to as the industry accord ( Verbändevereinbarung ). Among other provisions, the accord  defines the 
private -law framework for network access. This includes a minimum reservation volume for 
transport capacity  of 150 N m3 on the condition that the gas in question is used primarily for the 
creation of process heat for industrial purposes and tha t the customer provide s the load 
measurement using remote data.  
4.79.   The gas industry submitted the industry accord to the Competition Commission ( ComCo ) for 
preliminary consult ation. While the ComCo in its final report of 16 December 2013 decided against 
initiating an investigation, it explicitly reserved the right to open an individual case in the event of 
an infringement of the Cartel Law. This creates a degree of legal uncertainty, particularly in view of 
the resulting threat of sanctions.  
4.80.   The drafting of a gas supply law (Gasversorgungsgesetz, GasVG) was put on the Federal 
Council's legislative  programme for 2015 -2019. The Swiss Federal Office of Energy is curr ently 
working on the draft bill.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.2.1.2.5   Renewables  
4.81.   The share of renewables in the total primary energy supply of Switzerland was 23% in 
2015, while renewables represented 59.5% of electricity generation.  
4.82.   Switzerland is well endowed with renewable energy resources . The government estimates 
that hydropower production could feasibly increase by about 8% (3.2 TWh); while a lower 
estimate of 2 TWh has been suggested by groups concerned about public acceptance. Various 
studies rate photovoltaic (PV) technical potential at 6 to 17 TWh. Wind resource potential is 
relatively low (4  TWh) and public acceptance is a concern. Biomass estimates according to the 
Energy Strategy 2050 are 4.7 TWh (1.9 TWh from biogas (agricultural residues and sewage 
sludge ), 1.1 TWh from wood , and 1.7 TWh from municipal waste). Geothermal potential for 
electricity generation is estimated to be about 4 TWh.  
4.83.   Measures recently taken to encourage the development of renewable energies have been 
described above in the general policy framework section.  
4.2.1.3   Liechtenstein  
4.2.1.3.1   Electricity  
4.84.   The state -owned Liechtensteinische Kraftwerke (LKW) is a producer and importer of 
electricity, mainly from Switzerland, for distribution in Liechtenstein. Liechtenstein's energy needs 
(2014) are largely met through imports (72%). Li beralization of the electricity market, based on 
EEA law, started with the adoption of a new Electricity Law in 2002, which opened the market for 
large customers. The market is now fully liberalized. Besides LKW, four other electricity trade rs are 
currentl y active within the Liechtenstein electricity market. Those four traders together have a 
market share of 8.2%. In order to be active on the Liechtenstein electricity market, the electricity 
trader is not required to have an establishment in Liechtenstein b ut has to be registered at 
Swissgrid AG. Transmission tariffs are subject to approval by the regulator, the Energy Market 
Commission49. The current Electricity Market Act50 transposes EC Directives 2003/54 and 2005/89. 
According to the authorities, EC Direct ive 2009/72 (third energy package for electricity) will be 
implemented once it has been included in the EEA acquis . However, ownership unbundling is not 
planned.  
4.85.   As of 2005, independent power producers (IPPs) may sell electricity to any customer. The 
first IPPs started to enter the market in 2011. There are a number of small -scale hydro -electric 
power producers besides LKW and the contribution of independent solar power producers has been 
increasing. According to the Government's Energy Strategy 2020, adop ted in 2012, the objective 
is to increase the share of renewable energies from 8.2% in 2008 to 20% by 2020, through 
subsidies for improved insulation, sun -collectors, and tighter energy standards in construction. 
Liechtenstein has implemented a new 5 -year feed-in tariff scheme, which ends in February 2020.  
4.2.1.3.2   Gas 
4.86.   Ownership of the pipeline and distribution system for natural gas is in the hands of the 
state-owned Liechtensteinische Gasversorgung (LGV). LGV is currently de facto  the only supplier; 
however, anoth er company is applying for authorization with the aim of starting its activities at the 
end of 2016/beginning of 2017. Transmission prices are subject to approval by the Energy Market 
                                                
49 Ordinance on the Energy Market Commission, LLG 2009, No. 29, available at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?menu=1&tablesel=0&formname=showlaw&lgblid=200902400
0&version=1&lrstart=73&observe_date=30.11.2016 . 
50 Electricity Market Act, LLG 2002, No. 144, available at: 
https://www.gesetze.li/lilexprod /lgsystpage2.jsp?formname=showlaw&lgblid=2002144000&version=2&search
_text=elektrizit%E4tsmarkt&search_loc=titel&sel_lawtype=conso&compl_list=1&rechts_gebiet=0&menu=0&ta
blesel=0&observe_date=30.11.2016 . See also the Electricity Market Ordinance, LLG 2009, No. 21, available 
at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?formname=showlaw&lgblid=2009021000&version=2&search
_text=elektrizit%E4tsmarkt&search_loc=titel&sel_lawtype=conso&compl_list=1&rechts_gebiet=0&menu=0&ta
blesel=0&observe_date=30.11.2016 . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Commission.51 The legal framework (Gas Market Act52) is based on EEA legis lation, especially EC 
Directive 2003/55 on common rules for the internal market in natural gas. Liechtenstein is in the 
process of implementing EC Directive 2009/73  (third energy package for gas).  
4.3  Services  
4.3.1   Financial services  
4.3.1.1   Switzerland  
4.87.   Financial services  is a major activity in Switzerland as it accounts for nearly 10% of the 
country's GDP and over 5% of its total employment.  
4.88.   Box 4.1 below provides the main economic and statistical indicators of the sector and of its 
main subsectors (banking, insurance, p ension funds and stock exchanges and securities).  
Box 4.1 Financial services: statistical overview, 2006 -15 
General  
Share of financial services in GDP   
2006: 11.7% (of which insurance 3.59%)  
2011: 10.3% (of whi ch insurance 4.37%)  
2015: 9.5% (of which insurance 4.29%)  
Share of financial services in total employment  
2006: 6.1% (of which insurance 1.56%)  
2011: 6.2% (of which insurance 1.39%)  
2015: 5.6% (of which insurance 1.15%)  
Net financial services exports  
2009: SwF 19.8 billion (42.0% of Switzerland's current account surplus), insurance: SwF 5.5 billion  
2011: SwF 16.9 billion (35.8% of Switzerland's current account surplus), insurance: SwF 4.2 billion  
2015: SwF 16.3 billion (22.3% of Switzerland's current acco unt surplus), insurance: SwF 4.9 billion  
Capital stock of Swiss financial services providers abroad  
2008: SwF 177 billion (23% of Swiss capital stock abroad) of which insurance: SwF 97 billion  
2010: SwF 195 billion (22.2% of Swiss capital stock abroad) of  which insurance: SwF 120 billion  
2014: SwF 156 billion (15.0% of Swiss capital stock abroad) of which insurance: SwF 72 billion  
Significance of the financial services arm of Swiss Post  (2015)  
3,500 employees, 2,951 million customers, 4,835 million accoun ts, SwF 114,866 billion of funds under 
management, SwF 430 million of net profit  
Banking services  
Number of banks and recent consolidation  
2006: 331 banks (of which, cantonal banks: 24; "big" banks: 2; regional and savings banks: 78; Raiffeisen – 
i.e. c ooperative banks: 1; stock -exchange banks: 52; foreign controlled banks : 120; branches of foreign 
banks : 29; private banks: 14; other banking institutions: 11)  
2011: 312 banks (of which cantonal banks: 24; "big" banks: 2; regional and savings banks: 66; Ra iffeisen – 
i.e. cooperative banks: 1; stock -exchange banks: 46; foreign controlled banks : 116; branches of foreign 
banks : 32; private banks: 13; other banking institutions: 12)  
2015: 266 banks (of which cantonal banks: 24; "big" banks: 3; regional and savi ngs banks: 62; Raiffeisen – 
i.e. cooperative banks: 1; stock -exchange banks: 44; foreign controlled banks : 85; branches of foreign banks : 
26; private banks: 7; other banking institutions: 14)  
                                                
51 Ordin ance on the Energy Market Commission, LLG 2009, No. 29, available at: 
https://www.gesetze.li/l ilexprod/lgsystpage2.jsp?menu=1&tablesel=0&formname=showlaw&lgblid=200902400
0&version=1&lrstart=73&observe_date=30.11.2016 . 
52 Gas Market Act, LLG 2003, No . 218, available at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?formname=showlaw&lgblid=2003218000&version=2&search
_text=gasmark&search_loc=titel&sel_lawtype=conso&compl_list=1&rechts_gebiet=0&menu=0&tablesel=0&ob
serve_date=30.11.2016 . See also Gas market Ordinance, LLG 2009, No. 22, available at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?formname=showlaw&lgblid=2009022000&version= 1&search
_text=gasmarkt&search_loc=titel&sel_lawtype=conso&compl_list=1&rechts_gebiet=0&menu=0&tablesel=0&o
bserve_date=30.11.2016 . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Concentration/share of the various types of banks in the total balance sheet for banks in Switzerland (2011)  
Total balance sheet: SwF 2,793 billion  
(of which cantonal banks: 16.1%; "big" banks: 52.5%; regional and savings banks: 3.6%; Raiffeisen – i.e. 
cooperative banks: 5.6%; stock -exchange banks: 4.9%; foreign contr olled banks : 10.9%; branches of foreign 
banks : 2.0%; private banks: 1.9%; other banking institutions: 2.4%)  
Concentration/share of the various types of banks in the total balance sheet for banks in Switzerland (2015)  
Total balance sheet: SwF 3,026 billion  
(of which cantonal banks: 17.8%; "big" banks: 47.1%; regional and savings banks: 3.7%; Raiffeisen – i.e. 
cooperative banks: 6.7%; stock -exchange banks: 6.9%; foreign controlled banks : 8.6%; branches of foreign 
banks : 2.4%; private banks: 0.2%; other bankin g institutions: 6.6%)  
Lending activities  (Comprehensive year -end statistics (including "amounts due from securities financing 
transactions"), 2012): SwF 1,407 billion (domestic lending: 71.0%, of which mortgage claims: 83.4%; foreign 
lending: 29.0%)  
Lendi ng activities  (Comprehensive year -end statistics (excluding "amounts due from securities financing 
transactions"), 2015): SwF 1,537 billion (domestic lending: 70.0%, of which mortgage claims: 82.1%; foreign 
lending: 30.0%)  
Securities activities  (securitie s holding in bank accounts, 2015)  
Total: SwF 5,587 billion; Swiss custody account holders: SwF 2,640 billion (i.e. 47.3% of total); foreign 
custody account holders: SwF 2,947 billion (i.e. 52.7% of total), of which private customers: SwF  534 billion; 
comme rcial customers: SwF 89 billion; and institutional investors: SwF 2,323 billion  
Insurance  
Number of insurance companies and recent consolidation  
2009: 258 companies, of which life: 25; non -life: 125; reinsurance: 26; captives: 42; supplementary health 
insurers: 40  
2014: 224 companies, of which life: 21 ( of which 3 Swiss branches of foreign insurance companies ); non -life: 
(without health insurersa): 104 ( of which 49 Swiss branches of foreign insurance companies ), reinsurance: 29; 
captives: 33; supplementar y health insurers (without health insurers): 26; base health insurers with 
supplementary health insurance products: 14  
2015: 214 companies, of which life 20 ( of which 3 Swiss branches of foreign insurance companies ); non -life 
(without health insurers): 99 (of which 45 Swiss branches of foreign insurance companies ); reinsurers: 30; 
reinsurance captives 29; supplementary health insurers 23; base health insurers with supplementary health 
insurance products: 13  
Total balance sheet of the insurance sector   
2014: SwF 649.4 billion, of which life insurance: SwF  337.7  billion (52.0%); non -life (w/o health insurers): 
SwF 150.8 billion (23.2%); supplementary health insurers: SwF  16.0 billion (2.5%); and reinsurance SwF 
144.9  billion (22.3%)  
2015: SwF 654.3 billion, o f which of which life insurance: SwF  343.3  billion (52.5%); non -life (w/o health 
insurers): SwF 146.9 billion (22.5%); supplementary health insurers: SwF 16.1 billion (2.5%); and 
reinsurance SwF 148.1  billion (22.6%)  
Concentration : (cumulative market shar e of the top five companies)  
2014: life insurance: 83.9%; non -life: 48.5%; health insurance: 64.7%; reinsurance: 75.1%  
2015: life insurers: 86.2 %; non -life: 52.4 %; health insurance: 65.2 %  
Pensions funds  
Number of pension funds : 2009: 2351; 2014: 1866  
Total assets : 2009: SwF 599 billion (of which collective assets SwF 241 billion), 2014: SwF 777 billion (of 
which collective assets: SwF 424 billion)  
Stock exchange and securities  
Capitalization of the companies listed in the Swiss performance index (SPI ): 2010: SwF 964 billion; 2011: 
SwF 863 billion (i.e. 143.7% of the GDP the same year); 2012 (June): SwF 915 billion; 2014: 
SwF 1,278  billion; 2015: SwF  1,287 billion (i.e. 201% of the GDP the same year)  
Gross value of publicly issued bonds in Swiss francs : 2011: SwF 73 billion (Swiss borrowers: SwF 40 billion, 
foreign borrowers: SwF 33 billion); 2015: SwF 62.03 billion Swiss borrowers: SwF 44.15 billion, foreign 
borrowers: SwF 17.88 billion)  
(Securities turnover on the SIX Swiss Exchange (secondary market , 2015) : securities: SwF  1,372  billion (of 
which Swiss shares: SwF 1,042 billion; foreign shares: SwF 11 billion; Swiss bonds: SwF 91 billion; foreign 
bonds: SwF 97 billion; structured products and options: SwF 27 billion; investment funds: SwF 104 billion ) 
a Defined as the addition of (a) providers of base health insurance that do not provide supplementary 
health insurance, (b) providers of base health insurance that provide supplementary health 
insurance, and (c) providers of only supplementary health in surance.  
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.1.1.1   Banking services  
4.89.   A key development regarding the regulatory environment for banking services in 
Switzerland was the adoption through various legal instruments of the principle of automatic 
exchange of information (AEOI) regarding tax matters.  
4.90.   The first such instrument was the signature by Switzerland of the Council of Europe 
Multilateral Convention on Administrative Assistance in Tax Matters (MAC) on 15 October 2013.  
4.91.   It was followed by the entry int o force of the FATCA 253 agreement with the United States 
on 2 June 2014 together with the FATCA Implementation Law approved by the Swiss Parliament. 
In addition , the Federal Council  adopted a negotiation mandate on 8 October 2014 in order to start 
negotiat ions with the United States on a FATCA agreement based on Model 1 , i.e. with fully 
automatic exchange of information.  
4.92.   The Swiss Parliament approved the AEOI principle , i.e. the OECD Multilateral Competent 
Authority Agreement ( MCAA) and the corresponding Sw iss Implementation Law , on 
18 December  2015. The approval was followed by a 100 -day referendum period. No referendum 
was launched during this time.  
4.93.   With the European Union, the adoption of the AEOI principle took the form of the signature 
of an agreement o n 27 May 201 5 amending the agreement on the taxation of savings which had 
been in force since 2005. This agreement includes the OECD's global AEOI standard  in full. Both 
chambers of the Swiss Parliame nt have approved the agreement, which has entered into f orce. 
Data will start to be collected in 2017 and Switzerland and the EU will then exchange information 
as of 2018.  
4.94.   In addition , so far Switzerland has signed joint declarations for the introduction of AEOI 
based on the Multilateral Competent Authority Agr eement (MCAA) with nine other States and 
jurisdictions: Australia, Iceland, Norway, Guernsey, Jersey, Isle of Man, Japan, Canada and South 
Korea. Other countries and jurisdictions will follow. Switzerland intends to sign similar joint 
declarations with oth er States and jurisdictions that have committed to the OECD Standard on 
AEOI.  The Swiss Parliament decides exclusively on the AEOI joint declarations. They will not be 
subject to referendums. Switzerland has committed to implement ing the OECD standard on A EOI 
by the year 2017, with the first exchange  taking place  in 2018.  
4.95.   Switzerland exchanges information in tax matters on request on the basis of double taxation 
treaties (DTA), tax information exchange agreements (TIEA) and, from 2017 onwards , the 
OECD/Coun cil of Europe Multilateral Convention on Administrative Assistance in Tax Matters 
(MAC). The Convention will also be the basis for the spontaneous exchange of information.54 
4.96.   The banking sector also under went a major regulatory overhaul during the period und er 
review with the adoption of t he Financial Market Infrastructure Act (FMIA) and the Financial Market 
Infrastructure Ordinance (FMIO) , which both came into force on 1 January 2016. In addition , the 
Federal Council dispatched to the Parliament in November 2015 two draft bills, the Financial 
Services Act (FinSA or FIDLEG) and the Financial Institutions Act (FinIA or FINIG).55 Discussion of 
the bills in the Council of States , as the first chamber.  
                                                
53 FATCA stands for For eign Account Tax Compliance Act , a U.S. act requiring financial institutions 
worldwide to disclose acco unt information to the U .S. tax authority. Jurisdictions worldwide can either apply 
the FATCA Regulations of the U .S. Treasury Department or reduce this burden by concluding a FATCA 
Agreement with the U nited States . The U nited States  offers its partner jur isdictions the following two different 
agreements: FATCA Model 1 Agreement (with automatic exchange of information) or FATCA Model 2 
Agreement (no automatic exchange of information ) where foreign financial institutions will disclose account 
details directl y to the U .S. Tax A uthority with the consent of the U .S. clients concerned. The United States will 
have to request data on recalcitrant clients through normal adm inistrative assistance channels.  
54 An updated list of all States and jurisdic tions covered by DTAs and TIEA s is available at : 
https://www.sif.admin.ch/sif/en/home/themen/internationale -steuerpolitik/doppelbesteuerung -und-
amtshilfe.html . 
55 The draft versi ons of the bills are available at: 
https://www.sif.admin.ch/sif/en/home/dokumentation/medienmitteilungen/m edienmitteilung.msg -id-
59331.html . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.97.   Box 4.2 below describes in more detail the content of these ne w or planned laws as well as 
more generally the regulatory framework of banking services in Switzerland.  
Box 4.2 Switzerland's regulatory framework for banking services  
Recent or planned regulatory changes  
The F inancial Market Infrastructure Act (FMIA) (RS 956.1) and the Financial Market Infrastructure Ordinance 
(FMIO) (RS 958.11) came into force on 1 January 2016.a The FMIA brings the regulation of financial market 
infrastructures and derivatives trading in line  with market developments and international standards. It sets out 
regulatory requirements for the operation of financial market infrastructures, including stock exchanges, 
multilateral trading facilities, central counterparties and central securities depo sitories and trade repositories. In 
addition, it lists all of the rules on trading in securities and derivatives for all financial market participants, 
particularly the new derivatives trading rules, which are consistent with international standards.  
 
Legislative projects in progress : Financial Services Act (FinSA) and Financial Institutions Act (FinIA)  
The FinSA will serve primarily to improve client protection. The current draft contains rules on providing 
financial services and offering financial instrum ents for all financial service providers. The proposed regulation 
takes account of the various features of financial service providers and financial instruments, as well as the 
different needs of the various client segments. Improvement in client protectio n is achieved by means of 
comprehensive transparency provisions, while refraining from imposing bans.  
The proposed FinIA makes provision for an activity -based, differentiated supervisory regime for financial 
institutions requiring authorization. The main c hange is in the prudential supervision of managers of individual 
client assets, managers of the assets of occupational benefits schemes and trustees. Not all financial institutions 
will be supervised by FINMA during this process. The prudential supervision  of managers of individual client 
assets and fiduciaries will be performed by an independent supervisory organization, several types of which are 
possible.  
Supervisory authorities  
Ministry/agency responsible for the coordination and strategic management o f international financial, monetary 
and tax matters : State Secretariat for International Financial Matters, SIF ( www.sif.admin.ch ). 
 
Sector supervisor (monitoring bank liqui dity, supervising financial market infrastructures, etc.) : Financial 
supervision and issuance of banking regulations is performed by the Swiss Financial Market Supervisory 
Authority, FINMA ( www.finma.ch ). The Swiss National Bank (SNB) has the task of contributing to the stability of 
the financial system ( www.snb.ch ). The SNB also oversees systemically im portant payment systems, central 
counterparties and central securities depositories.  
Responsibility for competition policy issues : Competition Commission ( www.weko.admin.ch ). 
Preferential and bilateral policies  
Preferential arrangements affecting banking services : none ( Switzerland's commitments in FTAs are 
substantially similar to Switzerland's commitments under the GATS).  
Bilateral agreements and MOU s (notably on prudent ial regulation and supervision):  FINMA has concluded 
banking -specific or multi -sectoral MoUs with supervisory authorities of 27 jurisdictions whose banks have 
significant presence in Switzerland. The largest Swiss banks under foreign control (assets >10 bi llion in 2015) 
are British, Brazilian, French, Greek, and German. Agreements have been concluded with all these countries. 
These MoUs govern the coordination of supervisory activities, as well as the exchange of information relevant 
for supervision.  
Recog nition of prudential measures of other countries through international agreements or unilaterally : In 
general, FINMA will recognize the consolidated supervision of foreign authorities, if the countries adhere to the 
relevant Basel Core Principles (BCP). As  there is no multilateral framework for the banking sector, such 
agreements are concluded bilaterally. In the area of securities and markets supervision (which involves the 
broker -dealer activities of banks), FINMA is signatory to the IOSCO multilateral Mo U. 
Licensing  
General criteria : clear scope of business; adequate organization; creation of separate bodies for management 
on the one hand and for direction, supervision and control on the other, if the scope or importance of business 
activities is signifi cant, for all operators except small private bankers and securities traders; disclosure of the 
minimal fully paid -in share capital; good reputation of the persons in charge of administration and management 
of the bank; guarantee by the natural persons or l egal entities with a qualified participation (i.e. which directly 
or indirectly participate in at least 10% of the capital or the voting rights of a bank or whose business activities 
are such that they may exercise considerable influence over the bank) tha t their influence will not impact the 
bank's prudent and solid business activity negatively; obligation for the persons entrusted with management to 
be domiciled in a place where they can physically manage the bank in a responsible manner (i.e. generally o n 
Swiss territory with exceptions for larger internationally active banks, e.g. head of Asia division and member of 
group executive board may be domiciled in Asia) (Article 3 of the Banking Law). Cantonal banks no longer 
benefit from preferential capital r equirements. Their tax treatment is subject to cantonal regulations.  
 
Additional criteria for foreign banks : requirements are the same for Swiss and foreign banks; access remains 
subject to reciprocity, except when covered by international obligations such  as the WTO agreements. However, 
for Swiss branches of foreign banks, FINMA will grant the foreign banks a licence only if;  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  a) the foreign bank is appropriately organized, employs adequately qualified staff and has financial 
resources to operate a branch i n Switzerland;  
b) the foreign bank and branch are subjected to adequate supervision;  
c) the competent foreign supervisory authorities make no objection to the establishment of a branch;  
d) the competent foreign supervisory authorities state that they will immediately inform FINMA if 
circumstances arise that may seriously jeopardize the interests of the bank's creditors;  
e) the competent foreign supervisory authorities are able to provide FINMA with official support;  
f) the licensing requirements set out in Article 3bis para. 1 of the Banking Law are met;  
g) the branch meets the licensing requirements within the meaning of Article 3, paras.  2c and d of the 
Banking Law and has a regulation that precisely defines its business activities and provides adequate 
organization; and  
h) the foreign bank provides evidence that the company name of the branch qualifies for entry in the 
Commercial Register.  
 
Special provisions may apply to foreign banks such as FBO -FINMA (RS 952.111) Article 3, para. 2 (fully 
subjected to S wiss regulation if foreign regulation is not equivalent), Article 4, para. 2 (adequate consolidated 
supervision by foreign supervisor), Article 7 (collateral requirement if this is necessary for depositor protection). 
These are set out in the Ordinance of 21 October 1996 of the Swiss Financial Market Supervisory Authority on 
Foreign Banks in Switzerland (FINMA Foreign Banks Ordinance, FBO -FINMA). In accordance with the FBO -
FINMA, the remaining part of the banking regulation, i.e. the Banking Law and the Ban king Ordinance are 
applicable in the same way as for Swiss banks (Article 3, para. 1). Relief may be given on capital adequacy and 
risk distribution aspects for subsidiaries (Article 3, para. 2).  
 
Licencing organ : FINMA  (banking regulation and supervision take place at the federal level, i.e. there are no 
licensing requirements or regulations at the cantonal level).  
Limitation of numbers of licences : none by policy.  
Statutory maximum delay to process licences applications : none.  
Validity of a licence : unlim ited. 
Restrictions on banks selling or disposing of licences : licences are specific to the licensed institution and may 
not be sold or transferred.  A significant change in the structure of a bank or its ownership may require a 
reapplication, which is subje ct to supervisory review and will be accepted if the licensing criteria are met.  
Minimum capital requirements for obtaining a licence : SwF 10 million, usually more in practice, depending on 
the business plan.  
Prudential regulations  
Administrative allocati on of financial resources : financial resources are not allocated administratively.  
Determination of interest rates and fees : banks can freely determine their own interest rates and fees.  
Measures to ensure compliance with the Basel Committee's Core Princi ples for Effective Banking Supervision :  
The adoption of Basel III -based capital rules in Switzerland was completed in 2012 when the revised Capital 
Adequacy Ordinance came into force. Swiss implementation of Basel capital standards was assessed overall as  
"compliant" in the 2013 Regulatory Consistency Assessment Programme (RCAP) by the BCBS. Some Basel 
requirements relating to definition of capital, the Swiss Standardized Approach, Credit Risk IRB, and disclosure 
were assessed to be only "largely compliant " or "materially non -compliant". Since then, FINMA has rectified 20 
deviations or potential misinterpretations identified by its own self -assessment and by the RCAP Assessment 
Team. In 2015, in accordance with the Basel III framework, FINMA introduced repo rting and disclosure 
requirements for the Leverage Ratio and Liquidity Coverage Ratio. In the first half of 2016, FINMA has aligned 
its circular "Credit risks – banks" with the revised international Basel III banking standards, enhancing capital 
requiremen ts for derivatives, central counterparty positions, fund investments and securitizations.  
 
On 21 October 2015, the Federal Council has defined new capital adequacy standards for systemically important 
banks (i.e. the two global systematically important ban ks UBS and Crédit Suisse and the five domestic 
systematically important banks, i.e. UBS and Crédit Suisse again and Raiffeisein, Zurich Kantonal Bank and Post 
Finance) and taken measures to reinforce the current "too big to fail" regime and hence the resil ience of these 
banks.  Under the new regulations, global systemically important banks will be subject to a leverage ratio of 5% 
("going concern" capital i.e. capital to absorb current operating losses). The 5% relates to the bank's total 
exposure as a measu re of its on - and off -balance sheet positions. At least 3.5% of this must be held in the form 
of Common Equity Tier 1 capital (CET1) and the remainder in Tier 1 instruments, which would be converted or 
written down if the CET1 ratio falls below 7% ("high t rigger"). In addition, these banks must hold 5% of loss -
absorbing debt capital, again measured in terms of total exposure. This bail -in capital ("gone concern" capital 
i.e. capital to fund an orderly resolution) is earmarked for use in the event of resolut ion. The result in terms of 
risk-weighted requirements is a total of 28.6%, consisting of 14.3% for each category. At least 10% must be 
held in the form of CET1 capital. In addition, the Federal Council decided that Swiss emergency plans drawn up 
by the gl obal systemically important banks must be ready for implementation by the end of 2019.  
 
The 2014 Financial Sector Assessment Programme by the IMF assessed the Swiss banking supervision to be 
compliant with 20 out of 29 Basel Core Principles. Two Basel Cor e Principles were assessed to be "materially 
non-compliant". Mainly the resourcing of supervision of large second -tier banks and the effectiveness of FINMA's 
supervisory approach with regard to the involvement of private audit firms have been criticized. F INMA has WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  been addressing these points by conducting more direct, topic -specific supervisory reviews complementing 
regulatory audits by audit firms and by reforming its collaboration with audit firms to increase the effectiveness 
of regulatory audits.  
Specific provisions against money laundering and terrorist financing  
The Anti -Money Laundering Act of 10 October 1997 (AMLA; RS 955.0) imposes special due diligence obligations 
on financial intermediaries (banks, securities dealers, casinos, and subject to ce rtain conditions set out in the 
AML Article 2, fund managers, certain investment companies, and asset managers under the Collective 
Investments Schemes Act, as well as insurance institutions). These include verification of the identity of the 
contracting p arty, establishment of the identity of the beneficial owner, special clarification duties, the duty to 
keep records, and the duty to implement organizational measures to prevent money laundering and terrorist 
financing. The financial intermediary must imme diately file a report with the Money Laundering Reporting Office 
Switzerland (MROS) in the Federal Office of Police if it suspects money laundering or terrorist financing.  
In the non -banking financial sector (e.g. asset managers, fiduciaries, bureaux de ch ange, money and value 
transfer services as well as lawyers and notaries providing financial services), the Anti -Money Laundering Act is 
based on the principle of self -regulation. Self -regulation organizations (SROs) further specify the due diligence 
obliga tions contained in the Anti -Money Laundering Act and supervise compliance by their members. Financial 
intermediaries may either join an SRO or be supervised directly by FINMA, except for lawyers and notaries who 
can only join an SRO. FINMA recognizes and s upervises the SROs.  
In February 2012, the Financial Action Task Force (FATF) published the revised international standards on the 
combating of money laundering and terrorist financing. The Swiss Parliament adapted various laws to those 
standards in the Fed eral Act on the Implementation of the Revised FATF Recommendations of 
12 December  2014 (RO 2015 1389)  in particular on the following points:  
 
- Beneficial ownership : the law now expressly stipulates that the financial intermediary has to identify the 
benef icial owner with the due diligence required by the circumstances. The financial intermediary must obtain a 
written declaration indicating the natural person who is the beneficial owner particularly when the contracting 
party is not the beneficial owner or when there is doubt in this respect, and always when the contracting party 
is a domiciliary company or an operating legal entity.  
 
Predicate offences : the FATF has added "tax crimes (related to direct and indirect taxes)" to its list of offences 
which must  mandatorily constitute predicate offences to money laundering. In addition to extending the scope 
of the felony already enshrined since 2009 in the Swiss legislation for offences regarding indirect taxation, the 
2014 law has introduced a predicate offence  – aggravated tax misdemeanour – with regard to direct taxation. 
Tax fraud now constitutes a predicate offence to money laundering if the amount of tax evaded exceeds 
SwF 300,000 per tax period.  
 
Regulations on cash payments for purchases of both movable a nd immovable property : the new law  imposes 
due diligence obligations on natural persons and legal entities dealing professionally in movable or immovable 
property that receive cash payments exceeding SwF 100,000 ("dealers" in accordance with Article 2, par a. 1 
letter b of the AMLA). The due diligence obligations envisaged include verification of the identity of the 
contracting party, identification of the beneficial owner, duty to keep records, clarification of the background 
and purpose of the transaction when it seems unusual or there are grounds to suspect that the cash used to pay 
originates from a felony or an aggravated tax misdemeanour, and the obligation to report immediately 
suspicions to the MROS.  
 
Other areas:  the new law also covers issues such a s the registration of ecclesiastical and family foundations, 
transparency regarding legal entities, including companies with bearer shares, politically exposed persons 
(PEPs), the suspicious activity reporting system and targeted financial sanctions relate d to terrorism and 
terrorist financing.  
The fourth FATF evaluation of Switzerland published in December 2016b acknowledges that the Swiss authorities 
demonstrate a clear commitment to prosecuting money laundering and that the mutual legal assistance 
provid ed by Switzerland is generally satisfactory and has involved the freezing and restitution of large sums 
linked with international corruption, but that shortcomings associated with maintaining the confidentiality of 
requests have been observed.  
Bank deposi t insurance scheme  
A review of the Swiss deposit insurance scheme is currently under way. Costs and benefits of a change from the 
existing ex -post to an ex -ante funded system, an increase of the target level, and a shortening of the maximum 
pay-out period are being analysed. The Federal Council will decide at the beginning of 2017 on the parameters 
of an adjustment of the Swiss deposit insurance scheme.  
a The texts of the act and of the ordinance are available at: 
https://www.sif.admin.ch/sif/en/home/dokumentation/medienmitteilungen/medienmitteilungen.msg
-id-59647.html as well as a factsheet summing up their main provisions ; and  
https://www.efd.admin.ch/dam/efd/en/dokumente/home/themen/wwf -fin-politik/fb -finfrag -
e.pdf.download.pdf /fb -finfrag.pdf . 
b Viewed at: http://www.fatf -gafi.org/media/fatf/content/images/mer -switzerland -2016.pdf . 
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.1.1.2   Insurance services  
4.98.   Box 4.3 be low describes in detail the regulatory regime for insurance services , which has 
remained stable during the period under review.  
Box 4.3 Switzerland's regulatory framework for insurance, 2016  
Recent or planned re gulatory changes  
Partial revision of the Insurance Contract Act (ICA)  
The ICA governs the contractual relationship between insurance companies and their clients. The revision 
should adjust the ICA to changed circumstances and the law should be given a mode rn structure that 
eliminates the deficits of the current law which is more than a century old. The ICA should also become more 
user-friendly. The following topics are also on the agenda for the partial revision: client segmentation, written 
form requiremen ts (inclusion of electronic formats), revocation right, provisional cover, assumption of 
approval, limitation periods, termination options, statutory deadlines, pre -contractual duty to provide 
information, pre -contractual duty of disclosure, amendment clau ses, continued liability and pending insurance 
claims, right to claim directly/right to information, and compulsory liability.  
Partial revision of the Insurance Supervision Act (ISA)  
The Insurance Supervision Act sets out how the Swiss Confederation is to exercise supervision over insurance 
companies and insurance intermediaries. It aims, in particular, to protect insured persons from abuse and the 
insolvency risks of insurance companies. The revision should provide for rules for recovery and resolution, 
matching the specific requirements of the insurance business. In addition the following topics are on the 
agenda for the partial revision: a sophisticated customer -protection -based regulatory and supervisory 
approach, strengthening of group supervision, supe rvision of foreign insurance companies and abolition of the 
exemption regime for internal auditing.  
Supervisory authorities  
Ministry/agency responsible for defining insurance sector policy : State Secretariat for International Financial 
Matters (SIF)  
Ministry/agency responsible for the supervision of the sector : Swiss Financial Market Supervision Authority 
(FINMA)  
Responsibility for competition policy issues : Competition Commission (COMCO)  
Preferential and bilateral policies  
Preferential arrangements affe cting insurance services : bilateral agreements with Liechtenstein and the EU 
(see https://www.finma.ch/en/documentation/legal -basis/international -treaties/) . 
Agreement of 10 October 1989 between the Swiss Confederation and the European Economic 
Community (now the EU) on Direct Insurance other than Life Insurance:  this agreement grants Swiss 
and EU insurance companies active in areas other than life insurance free dom of establishment in the 
European Union or Switzerland. One requirement of the agreement is that an agency or branch operation must 
be licensed. Identical access and operating conditions must apply in the host states of the contracting parties. 
The agre ement sets out who is to supervise the agency or branch office. The agreement does not apply to life 
insurance, reinsurance or social insurance. It is also not applicable to cross -border services that do not go 
through an agency or branch office.  
 
Agreeme nt of 19 December 1996 between the Swiss Confederation and the Principality of 
Liechtenstein on Direct Insurance and Insurance Intermediation:  this agreement guarantees Swiss 
insurance companies freedom of establishment in the Principality of Liechtenstein  and freedom to provide 
direct insurance services there; Liechtenstein insurance companies enjoy reciprocal rights in Switzerland. 
Companies require a licence issued in their home country, which is valid in both countries. Licence holders are 
supervised by  the supervisory authority in their home country. The agreement provides for the mutual 
recognition of the countries' supervisory legislation. It is not applicable to reinsurers or social insurance 
schemes.  
 
Bilateral agreements and MoUs : FINMA has conclud ed MoUs with supervisory authorities of countries whose 
insurers have significant presence in Switzerland (and vice versa). These MoUs govern the coordination of 
supervisory activities, as well as the exchange of information relevant for supervision. FINMA  is also a 
signatory to the IAIS multilateral MoU.  
FTAs: Switzerland's commitments in FTAs are substantially similar to Switzerland's commitments under the 
GATS.  
Licensing  
Criteria for assessing applications for an insurance licence : organizational, legal , capital, and solvency 
requirements.  
Compatibility of life and/or non -life insurance licences : for insurance companies that operate direct life 
insurance, the only other insurance classes that they may operate are accident and health insurance as set out 
in Article 12 of the Insurance Supervision Act (ISA) (RS 961.01).  
Differential treatment for foreigners in the licensing process : if there are no deviating regulations in 
international agreements, a foreign insurance company which intends to commence an in surance activity in 
Switzerland must, in addition (Article 15 , ISA):  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  a. be authorized to carry out an insurance activity in its home state;  
b. establish a permanent establishment in Switzerland and appoint as its manager a person with a general 
 power of  attorney;  
c. have at its headquarters an amount of capital as set out in Article 8 and a solvability margin as in 
 Article 9 which also encompass the business activity in Switzerland;  
d. be in possession of an organizational fund in Switzerland as in Ar ticle 10 and the corresponding assets;  
e. deposit a collateral amount in Switzerland which corresponds to a defined proportion of the solvability 
 margin attributable to the business within Switzerland. The supervisory authority defines this 
 proportion a nd the calculation, the place at which the deposit is kept and the allocable assets.  
 
Limitation on number of providers : none.  
Licensing authority : FINMA is the sole competent authority to evaluate licence applications and to grant 
licences to private ins urers. Insurance regulation and supervision is at federal level, i.e. there are no licensing 
requirements or regulations at cantonal level for private -sector insurance. However, it must be noted that all 
insurers governed by public law are not supervised b y FINMA (even if the public insurers offer private 
insurance contracts; see the Federal Court's Decision 138 I 378). For public insurers, there might also be 
regulations at cantonal level. In certain areas, FINMA and other Swiss supervisory authorities hav e shared 
competences (for example, accident insurance and pension funds).  
 
(Article 46a of the Administrative Procedure Act). A maximum processing time of 6 months for licensing 
applications is defined in Article 13.3 of the Agreement of 10 October 1989 be tween the Swiss Confederation 
and the European Economic Community (now EU) on Direct Insurance other than Life Insurance).  
 
Period of validity of a licence : unlimited.  
Restrictions on selling or disposing of licences : not transferable. Licences are specif ic to the licensed institution.  
Maximum processing time for applications : in general, there is no maximum processing time defined for 
applications. However, an appeal may be filed against unlawful refusal or delay in issuing a contestable ruling.  
Prudent ial regulations  
Differences in treatment between state -owned firms, other domestically owned firms, foreign -owned branches 
and foreign -owned subsidiaries  
FINMA does not treat state -owned firms differently to other domestically owned firms. However, it must  be 
noted that FINMA is not the responsible supervision authority for insurance carriers governed by public law 
(even if public insurers offer private insurance contracts; see the Federal Court's Decision 138 I 378).  
 
FINMA does not treat domestically owne d firms and foreign -owned subsidiaries differently. There are a few 
additional requirements for branches (see "Licensing").  
 
Recognition of home country supervision of foreign insurance companies : as a rule, FINMA recognizes the 
consolidated supervision of  foreign authorities. FINMA generally cooperates with the home country supervisor 
and foreign branches are not required to undergo the Swiss Solvency Test (SST). However, usually there is no 
freedom of service and all branches of foreign insurers must fulf il all the legal requirements and be supervised 
by FINMA.  
 
Minimum capital requirements to obtain a licence : Article 8 of ISA requ ires a minimum capital of SwF 
3-20 million to obtain a licence, subject to sector -specific provisions by the Federal Council.  The Federal 
Council's Insurance Supervision Ordinance (ISO) defines this requirement for life insurers (Article 7) at SwF 5 –
12 million, for non -life-insurers (Article 8) at SwF 3 –8 million, and for reinsurers (Article  9) at SwF 3 –10 
million, depending on the business model.  
 
Administrative allocation of insurance services : life, non -life, and reinsurance services are not allocated 
administratively.  
 
Approval required for life and non -life premiums and products : in general, there is no requirement for 
premiums and products, although the latter must comply with the respective legal requirements. However, 
tariffs and general insurance conditions to be used in Switzerland to insure all risks in employee pension plans 
and in supplementary health insurance must be approved by FINMA. Also, in the case of natural hazard 
insurance, FINMA requires its scope of coverage and premium rating to be uniform and binding for all insurers 
(Article 33 ISA).  
 
Compatibility of life and non -life insurance activities : in accordanc e with Article 12 of ISA, life insurers' non -
life-business is limited to accident and health insurance. Life -insurers who offer accident or health insurance 
are subject to Article 7 b, ISO, which sets a minimum capital requirement of SwF 8 million to obtai n a licence.  
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.1.1.3   Pension fund services  
4.99.   Box 4.4 below describes in detail the regulatory regime for pension fund services, which is  
in the process of  a complete overhaul. The Federal Council adopted the dispatch  on the 
"Retirement Provision 2020" reform project in late 2014. The 2020 pensions reform aims to 
ensure , in a balanced manner , that both pillars of retirement provisions are adequately funded and 
allow a more flexible transition to retirement. It is based  on the following objectives: maintenance 
of the level of benefits under the 1st and 2nd pillar, financial consolidation of the pension system 
and the adaptation of benefits  to current socio -political needs.  In particular, the reform cover s 
issues related to retirement, the adjustment of the minimum conversion rate and compensatory 
measures, including measures for intermediate generation. Institutional aspects are also taken into 
account with a view to improving transparency. Furthermore, the 2020 pensions ' reform  also 
addresses AVS -related financing issues, particularly with regard to benefits and contributions, as 
well as additional financing and the introduction of an intervention mechanism. The bill (14.088) is 
currently in the parliamentary process. The draft bill submitted to Parliament in November 2014 
was examined by the Upper House of the Parliament in 2015 and is now being considered by the 
Lower House. The Upper House (Council of States) amended the draft as regards the  measures to 
compensate for the lower conversion rate in the second pillar (Occupational Pension Plan), and 
approved the equalization of the retirement age at 65 for both women and men but refused to 
make the legislation more restrictive on widows', widowers' and orphans' pensions. As  to 
financing, the Council decided that 1% instead of 1.5% of VAT would cover the supplementary 
costs resulting from demographic change .  
4.100.   The Lower House (National Council) debat ed the draft during the 2016 autumn session of 
Parliament. If debates in Parli ament end by March 2017 with a referendum taking place in 
September 2017, the law could enter into force by 1 January 2018.  
Box 4.4 Switzerland's regulatory framework for pension funds, 2016  
Pension fund struct ure 
Occupational benefit plans, also called the 2nd pillar, complete the mandatory basic 1st pillar AVS/AI/APG 
system (old age, invalidity, income compensation allowances for illness and maternity leave). Both pillars 
should ensure that to a large extent r etired people maintain their former standard of living. The Federal Act 
on Occupational Benefit Plans (BVG/LPP) defines minimum benefits in the event of old age, death and 
invalidity. Pension funds may, however, provide higher benefits.  
In principle, the law allows pension funds to decide on the form of organization they prefer, the benefits they 
want to offer, and ways of financing them. The BVG is mandatory for salaried persons already subject to the 
AVS, with an annual income of at least SwF 21,060 in 2 014 or SwF 21,150 since 2015. This is also the 
threshold for contribution to the obligatory pension fund scheme.  
The obligation to take out insurance sets in with gainful employment, after reaching the age of 17 at the 
earliest. At first, contributions co ver only the risks of death and disability. At 25, the insured person also 
contributes to old age pension benefits. Certain groups of people are not subject to the mandatory scheme: 
the self -employed, salaried persons with a job contract that does not exce ed three months, family members 
of a person operating an agricultural establishment in which they are employed, persons who are disabled to 
at least 70% under the provisions of the AVS. If they wish, such persons may take out minimal insurance on 
an option al basis.  
Pension funds providing the statutory minimum need to be registered. The 2nd pillar, when provided by 
private entities, falls within the scope of the GATS but is subject to specific reservations in the Swiss GATS 
and FTAs financial services commi tments.  
 
Supervision  
A recognized audit firm audits the management, accounts and investments of pension funds every year. 
Periodic reviews are also undertaken by a pension scheme expert. Cantonal surveillance authorities check 
that pension funds comply wit h legal provisions and regulations. The supreme surveillance body is the 
occupational pension funds supervisory committee.  
Licensing criteria  
Institutions wishing to participate in the mandatory occupational benefits plans must be officially registered 
by the competent surveillance authority. They should be organized in the form of a mutual association or a 
foundation.  
 
Additional licensing conditions : none.  
Period of validity of a licence : generally unlimited.  
Transferability of licences : not transferable.  
Limitation on the number of providers : none.  
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.1.1.4   Securities services and capital markets  
4.101.   The main development s during the period under review include the entry into force of a 
new Federal Financial Market Inf rastructure Act (FMIA or FinfraG)  on 1 January 2016.56 This Act 
revamps the existing rules and introduces  new rules including regarding central counterparties and 
trade repositories as well as cross -border participation in Swiss trading venues (so -called re mote 
licence regime).  The FMIA brings the regulation of financial market infrastructures and derivatives 
trading in line with market developments and international standards. In addition, to facilitate the 
access of Swiss financial services providers to th e EU, an EU -compliant regulation has been aimed 
for. The rules for derivatives trading are also primarily oriented towards those of the EU in the 
European Market Infrastructure Regulation (EMIR). While there are certain differences between the 
regulations set out in FinfraG on financial market infrastructures and conduct requirements for 
derivatives trading and the correspondent EU regulations, the Swiss authorities assume that , in 
general, the new Swiss regulations are equivalent to the  EU regulation s.  
4.102.   In addition, as already mentioned above in the banking section, the Federal Council 
dispatched to the Parliament in November 2015 two draft bills, the Financial Services Act (FinSa or 
FIDLEG) and the Financial Institutions Act (FinIa or FINIG), which will ha ve an impact on securities 
services and also capital markets.57 The parliamentary debates have commenced  on those two 
bills. Discussion of the bills in the lower house is expected this year.  
4.103.   Box 4.5 below describes in detail the resulting regulatory regime for securities services and 
capital markets.  
Box 4.5 Switzerland's market and regulatory regime for securities services and capital 
markets, 2016  
Supervisory authority and licensing organ : FINMA  
Licensing  
General criteria  
Securities dealers  must provide information and ensure internal separation of their trading, portfolio 
management and settlement business; minimum fully paid -up capital is SwF  1.5 million (Article 19, para. 1 and 
Article 22, para. 1 Stock Exc hange and Securities Trading Ordinance, SESTO) (RS 954.11).  
Asset managers  of Swiss collective investment schemes based in Switzerland must be authorized by FINMA and 
are subject to its prudential supervision. Asset managers may be a legal entity in the fo rm of companies limited 
by shares, partnerships limited by shares or limited liability companies, general and limited partnerships or 
Swiss branches of a foreign asset manager of collective investment schemes.  
Additional criteria for foreign firms  
Foreign  securities dealers  may request FINMA authorization to establish a Swiss branch. They must provide 
information and evidence of adequate organization, sufficient financial resources, and qualified staff. In addition, 
they must be subject to appropriate supe rvision. In addition, the foreign supervisory authorities must not object 
to cross -border operations and provide administrative assistance and information to FINMA (Article 41, para. 1 
SESTO).  
 
Foreign trading venues  can obtain recognition to grant direct access to their facilities to Swiss participants 
supervised by FINMA if they are subject to appropriate supervision and regulation. Additionally, the competent 
foreign supervisory authorities must consent to cross -border operations and provide administrati ve assistance 
and information to FINMA (Article 41, para. 2, Financial Market Infrastructure Act, FMIA).  FINMA shall grant 
recognition:  
a. if the foreign trading venue is subject to appropriate regulation and supervision; and  
b. if the competent foreign su pervisory authorities:  
1. do not have any objections to the cross -border activity of the foreign trading venue,  
2. guarantee that they will inform FINMA if they detect violations of the law or other 
irregularities on the part of Swiss participants, and  
                                                
56 The texts of the act and ordinance are available at: 
https://www.sif.admin.ch/sif/en/home/dokum entation/medienmitteilungen/medienmitteilungen.msg -id-
59647.html , and a factsheet summing up their main provisions  is available at: 
https://www.efd.admin.ch/dam/efd/en/dokumente/home/themen/wwf -fin-politik/fb -finfrag -
e.pdf.download.pdf/fb -finfrag.pdf . 
57 The draft versions of the bills are available at: 
https://www.sif.admin.ch/sif/en/home/dokumentation/medienmitteilungen/medienmitteilung.msg -id-
59331.html . 
 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  3. provide FINMA with administrative assistance.  
A foreign trading venue is deemed to be recognized if FINMA finds that:  
a. the State in which the trading venue has its registered office regulates and supervises its 
 trading venues adequately; and  
b. the cond itions in paragraph 2 above are met.  
FINMA may refuse recognition if the State in which the foreign trading venue has its registered office does not 
grant Swiss trading venues actual access to its markets or does not offer them the same competitive 
opportu nities as those granted to domestic trading venues. Any deviating international commitments are 
reserved.  
The provision largely corresponds to the previous Article 14 SESTA (RS 954.1).  
To refuse approval because of lacking reciprocity of market access was also possible before 2016 (Article 37, 
SESTA). However, as before, this possibility is subject to any other international obligations (free trade 
agreements or GATS). There are no cases where approval was refused on the grounds of lacking reciprocity.  
Foreign participants  may request FINMA authorization to participate in Swiss trading venues. FINMA shall grant 
such authorization to foreign participants if, among other requirements, they are subject to appropriate 
supervision and regulation and if the compet ent foreign supervisory authority does not object to cross -border 
operations and provides administrative assistance to FINMA (Article 40, para. 1, FMIA).  
 
Foreign central counterparties : Article 60 of FMIA states:  
1. A central counterparty registered abroa d must obtain FINMA recognition before it:  
a. grants supervised Swiss participants direct access to its facilities;  
b. provides services for a Swiss financial market infrastructure;  
c  enters into an interoperability agreement with a Swiss central counterp arty. 
2. FINMA shall grant recognition:  
a. if the foreign central counterparty is subject to appropriate regulation and supervision; and  
b. if the competent foreign supervisory authorities:  
1.  do not have any objections to the cross -border activity of the fo reign central 
counterparty;  
2.  guarantee that they will inform FINMA if they detect violations of the law or other 
irregularities on the part of Swiss participants; and  
3.  provide FINMA with administrative assistance.  
3. FINMA may refuse recognition if the Sta te in which the foreign central counterparty has its registered 
 office does not grant Swiss central counterparties actual access to its markets or does not offer them the 
 same competitive opportunities as those granted to domestic central counterparties.  Any deviating 
 international commitments are reserved.  
4. It may exempt a foreign central counterparty from the obligation to obtain recognition provided this does 
 not adversely affect the protective purpose of this Act.  
The regulatory framework for CCPs , including the provisions regarding the recognition of foreign CCPs, has been 
introduced by the FMIA. There are no cases where FINMA refused recognition of a FMI on the grounds of lacking 
reciprocity and this possibility is subject to any other internatio nal obligations (free trade agreements or GATS).  
Trade Repositories (TRs) : Article 80 of FMIA states:  
1. A trade repository registered abroad must obtain recognition from FINMA before accepting reports in
 accordance with Article 103.  
2. FINMA shall grant r ecognition:  
a. if the foreign trade repository is subject to appropriate regulation and supervision; and  
b. if the competent foreign supervisory authorities:  
1.  do not have any objections to the cross -border activity of the foreign trade repository;  
2.  guarant ee that they will inform FINMA if they detect violations of the law or other 
irregularities on the part of Swiss participants;  
3.  confirm to the competent Swiss financial market supervisory authority that the conditions 
set out in Article 78, paragraph 1 b a nd c are fulfilled.  
3. A trade repository is deemed to be recognized if FINMA finds that:  
a. the State in which the foreign trade repository has its registered office regulates and 
 supervises its trade repositories adequately; and  
b. the conditions in acc ordance with paragraph 2 are met.  
4. FINMA may refuse recognition if the State in which the foreign trade repository has its registered office 
 does not grant Swiss trade repositories actual access to its markets or does not offer them the same 
 competitiv e opportunities as those granted to the trade repositories of the State in question. Any 
 deviating international commitments are reserved.  
The regulatory framework for TRs, including the provisions regarding the recognition of foreign TRs, has been 
introd uced by the FMIA. There are no cases where FINMA refused recognition on the grounds of lacking 
reciprocity and this possibility is subject to any other international obligations (free trade agreements or GATS).  
Foreign asset managers  may request FINMA aut horization to establish a Swiss branch of a foreign asset 
manager of collective investment schemes. They must provide information and evidence that the asset 
manager, including the branch, is subject to appropriate supervisory control at its registered off ice; the asset 
manager is adequately organized and has commensurate financial resources and qualified personnel to operate WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  a branch in Switzerland; and an agreement on cooperation and the exchange of information between FINMA 
and the relevant foreign super visory authorities is in place.  
Further, foreign asset managers may be delegated to manage Swiss collective investment schemes if they are 
subject to recognized supervision.  
Period of validity of a licence : generally unlimited.  
Transferability of licence s: not transferable.  
Limitation of the number of provider : none. As at the end of June 2016, three domestic and 56  foreign 
trading venues have been granted authorization.  
Restrictions on foreigners buying and selling on the stock market : none.  
Source:  Information provided by the authorities.  
4.3.1.2   Liechtenstein  
4.3.1.2.1   Statistical overview  
4.104.   Box 4.6 provides the main economic and statistical indicators of the financial services 
sector in Liechtenstein.  
Box 4.6 Financial servi ces: statistical overview  
General  
Share of financial services in the GDP : 24%  
Share of financial services in total employment : 8.8%  
Net financial ser vices exports : not available  
Capital stock of Liechtenstein financial services providers abroad : not ava ilable 
Banking services  
Number of banks and recent consolidation : 16 of which 6 are foreign (3 banks with Swiss majority 
shareholders, 2 with Austrian majority shareholders and 1 with Luxemburg majority shareholders).  
Total assets under management in the banking system : 2008: SwF 116.7 billion; 2009: SwF 118.3 billion; 
2010: SwF 116.2 billion; 2011: SwF 109.2 billion; 2012: SwF 117.7 billion; 2013: SwF 123.4 billion; 
2014:  SwF 133.9 billion; 2015: SwF 130.5 billion  
Assets managed by collective investment schemes: SwF 44.85 billion (as of 31 March 2016)  
Assets managed by asset management companies: SwF 33.3 billiona (as of 31 December 2015)  
Assets managed by trustees or trust corporations: no comprehensive data available  
Total balance sheet of the banking  system : 2008: SwF 55.67 billion; 2009: SwF 55.053 billion; 
2010:  SwF 52.466  billion; 2011: SwF 54.6 billion; 2012: SwF 55.9 billion; 2013: SwF 57.1 billion; 
2014:  SwF 63.4 billion; 2015: SwF 61.4 billion  
Net profit of the banking system : 2008: SwF 0.464 billion; 2009: SwF 0.587 billion; 2010: SwF 0.569 billion; 
2011:  SwF 0.163 billion; 2012: SwF 0.260 billion; 2013: SwF 0.471 billion; 2014: SwF 0.580 billion  
Concentration : the top three banks account for approx. 88% of the assets  
Number of collective in vestment schemes : 494  
Number of authorized trustees : 114  
Number of trust corporations : 266  
Number of asset management companies : 118  
Insurance  
Number of insurance companies and recent consolidation : 41 companies at end -2015 (17 non -life insurance 
comp anies; 21 life insurance companies; 3 reinsurance companies), 11 of which (8 for non -life, 3 for 
reinsurance) operated as captive  
Number of employees : 596  
Number of branches : 12 foreign insurance companies (10 Swiss, 2 EU) have established branches in 
Liechtenstein  
Cross -border activities : as at end -2015, over  355 EEA and Swiss insurance undertakings had registered their 
intention to provide cross -border insurance services, although these undertakings very rarely become active  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Gross premiums of the insuran ce sector (2015) : SwF 3.33 billion, of which 69% in life insurance; 
2014:  SwF 3.47billion, of which 68% in life insurance  
Capital investment of the insurance sector (2015 ): SwF 26.0 billion, of which 95% for life insurance; 
2014:  SwF 29.1 billion  
a Asset s of investment undertakings and asset management companies may be included in the total of 
assets under management in the banking system only to the extent where they are assets under 
management for the bank and held in a bank in Liechtenstein. However, t here is no legal obligation 
for investments undertakings and asset management companies to domiciliate assets in a local 
bank.  
Source:  Information provided by the authorities.  
4.3.1.2.2   Regulatory regime  
4.105.   EU laws on  financial services are of tremendous importance to the Liechtenstein financial 
centre. The incorporation of the first legislative package on the Financial Supervisory Bodies was 
delayed due to the need to find a balanced solution to certain questions regarding the institutional 
set-up of the EEA Agreement and constitutional constraints in the EEA/EFTA States. Therefore, 
Liechtenstein decided – exceptionally and extraordinarily – to transpose the respective EU acts into 
Liechtenstein law before they become part of the EEA Agreement. With this "advanced 
imple mentation", Liechtenstein's market participants already have to comply with the EU 
provisions. Due to Liechtenstein's "advanced implementation", it voluntarily imposes obligations 
stemming from the relevant EU laws on its market participants before they are applicable in the 
EEA. However, Liechtenstein and its market participants cannot benefit from , only prepare for , the 
cross-border rights those EU laws will confer as soon as they are incorporated into the EEA  
Agreement.  
4.106.   All EU Acts incorporated during t he period under review into the EEA Agreement (Annex IX 
– Financial Services) as well as the links to the relevant decisions of the EEA Joint Committee 
regarding financial services can be found on the website of the European Free Trade Association 
(EFTA): http://www.efta.int/legal -texts/eea . 
4.107.    A major development for the regulatory environment for financial services in Liechtenstein 
is the entry into force of the principle of the automatic exchange of info rmation (AEOI) with the EU 
(in January 2016) and with 32 further partner countries (in January 2017) in conformity with the 
OECD standards. This is the follow up and the last step of a policy decision confirmed in 2009 and 
2013 by government declarations t o support the increasing efforts in international cooperation in 
tax matters. This "Early Mover" approach has been the framework applied to Liechtenstein's policy 
and legislation via various legal channels:  firstly through membership of the European Econom ic 
Area (EEA) – in the context of which the whole financial market acquis  of the EU forms part of 
Liechtenstein's  legal framework – and through multilateral or bilateral negotiations of treaties or 
membership and cooperation with relevant international bod ies such as the OECD and the Global 
Forum on Transparency and Exchange of Information (GFTEI).  
4.108.   As early as  November 2013  and prior to the finalization and adoption of the automatic 
exchange of financial account information , Liechtenstein recognized it as the future single global 
standard58 and joined the "early-adopters -group "59 promoted by Germany, the United Kingdom, 
France, Italy and Spain. Liechtenstein – even though not a member of the OECD – has been 
assigned a special role and has been granted a specia l status in the relevant OECD body 
developing the standard, i.e. it serve s as a rapporteur between the OECD (as developer of the 
standard) and the Global Forum (as the competent body to monitor and review proper 
implementation).  
4.109.   Liechtenstein has put in pl ace all necessary primary and secondary legislation for the 
automatic exchange of information as of 1 January 2016. In addition to its agreement with  the EU, 
Liechtenstein has successfully negotiated 27 TIEAs60 and has ratified the Multilateral Convention 
                                                
58 Viewed at: http://www.regierung.li/files/attachments/regierungserklaerung -nov13 -
eng_635480451044806250.pdf?t=635912129364399226 . 
59 Viewed at: 
http://www.oecd.org/fr/sites/forummondialsurlatransparenceetlechangederenseignementsadesfinsfiscales/AEO
Ijointstatement.pdf . 
60 Viewed at: http://www.llv.li/files/stv/int -uebersicht -dba-tiea-engl.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  on Administrative Assistance in Tax Matters and the Multilateral Competent Authority Agreement 
on Automatic Exchange of Financial Account Information (MCAA).61 Liechtenstein therefore 
currently has EOI arrangements according to the OECD standard with more th an 40 partners and 
that figure has more than doubled with the entry into force of the Multilateral Convention on 
1 December  2016. Liechtenstein received a " largely compliant"  rating ( as did, for example,  
Germany and the Netherlands) in the Global Forum Pee r Report Phase  II.62 
4.110.   Liechtenstein joined the Inclusive Framework for the implementation of the package of 
measures against Base Erosion and Profit Shifting (BEPS) in March 2016 as one of the first non -
OECD countries and thereby committed officially to the BEPS outcome. Liechtenstein is a member 
of the OECD's  Forum on Harmful Tax Practices . It signed the OECD's Multilateral Competent 
Authority Agreement (MCAA) for the automatic exchange of country -by-country reports63 in 
January 2016 and will be implementing the spontaneous exchange of tax rulings as provided for 
under the BEPS project. The Liechtenstein Parliament has approved an adaptation of the Tax Act 
which includes:  
 the introduction of a linking rule for dividends within corporate groups to tackle hybrid  
instruments and to avoid double non -taxation – thus Liechtenstein will give up the 
unconditional exemption for dividend income and will be , in this respect , in line with the 
current revised parent -subsidiary directive, which entered into force at the end of 2015;  
 the introduction of country -by-country reporting for multinational enterprises in accordance 
with OECD requirements;  
 in the area of transfer pricing: introduction of the recommended documentation 
requirements;  
 the abolishment of the intellectual property box regime with grandfathering until 2020.  
 
4.111.   As of 1 January 2016 , Liechtenstein has changed its legislation for administrative 
assistance in tax matters to include group requests according to Article 26 of the OECD Model DTA. 
Serious tax crimes ha ve been made a predicate offence for money laundering from 1 January  2016 
and the range of mutual legal assistance  provided  in tax matters has been considerably expanded 
as well.  
4.112.   Box 4.7 below describes in detail the regulatory framework for banking servic es in 
Liechtenstein,  which has overall remained stable during the period under review save for the 
transposition of new EU/EEA banking legislation.  
Box 4.7 Liechtenstein's regulatory framework for banking servic es, 2015  
Main regulations  
Banking Act of 1992 (LLG 1992, No. 108, as amended) and the corresponding Banking Ordinance (LLG 1994, 
No. 22, as amended)a 
Supervisory authority  
The Financial Market Authority (FMA), established in January 2005, is responsible f or supervising banks, 
investment firms, investment undertakings, trustees, lawyers, accountants, and auditors.  
Preferential and bilateral policies  
Preferential arrangements affecting banking services : as a result of Liechtenstein's participation in the EE A, all 
of its banking, securities, insurance, and accounting legislation is based on EU legislation, although the 
national accounting standards for financial institutions (mainly banks, which are not quoted) are also similar to 
the accounting rules of the Swiss FINMA. Banks in Liechtenstein and Switzerland have very similar principles of 
accountancy, and the structure of the balance sheet and the income statement are practically identical. Both 
countries apply similar valuation rules. Generally the company may choose between the national accounting 
standard and the IFRS standard. However, only 3 banking groups in Liechtenstein apply IFRS on a 
consolidated level. The national accounting standard is applied on stand -alone basis only.  
                                                
61 Viewed at: https://www.oecd.org/tax/automatic -exchange/international -framework -for-the-
crs/MCAA -Signatories.pdf . 
62 Viewed at: http://www.oecd.org/tax/global -forum -on-transparency -and-exchange -of-information -for-
tax-purposes -peer-reviews -liechtenstein -2015-9789264245082 -en.htm . 
63 Viewed at: http://www.oecd.org/ctp/exchange -of-tax-information/a -boost -to-transparency -in-
international -tax-matters -31-countries -sign-tax-co-operation -agreement.htm . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Licensing  
General criteri a: banks and investment firms (i.e. an asset management company in the sense of the EU 
Markets in Financial Instruments Directive 2004/39b) require a licence from the FMA in order to commence 
operations, and may only take the legal form of limited companie s (Aktiengesellschaft).c The head offices and 
the principal management must be domiciled in Liechtenstein. The minimum required fully paid -up initial 
capital is SwF 10 million for banks and SwF 1.5 million (or the equivalent in euros or U.S. dollars) for 
investment firms. After commencing business activity, the minimum capital must not drop below the amount 
of the minimum capital. The members of the board of directors may have their domicile outside of 
Liechtenstein as long as they fulfil the obligations of  their functions; they must be authorized to fully represent 
their company.d 
 
Additional criteria for foreign banks  
Establishment of a branch or subsidiary of a non -EEA bank or investment firm requires a licence. Additional 
requirements are: the institutio n must be subject to home consolidated supervision comparable to 
Liechtenstein supervision, and the home authorities must raise no objections. To establish a branch in 
Liechtenstein a foreign institution requires a licence issued by the FMA; this is grante d if it is supervised in its 
home country (consolidated supervision in the case of a group) in a manner comparable to Liechtenstein 
supervision, the home supervisory authorities do not object to the presence of the bank in Liechtenstein, and 
the branch is organized, staffed and funded adequately. No reciprocity requirements exist.  
Investment firms and banks domiciled in an EEA member State have free movement of services rights for the 
activities covered by their home licences; they do not require a Liechte nstein licence. However, a notification is 
sent to the FMA by the home supervisory authority. The latter also supervises the investment firms and banks' 
operations in Liechtenstein. The same applies to the establishment of branches of EEA financial institu tions in 
Liechtenstein.  
Prudential regulations  
Administrative allocation of financial resources : financial resources are not allocated administratively  
Determination of interest rates and fees : banks may determine interest rates and fees freely  
Specific  provisions against money laundering   
The core legal basis for the AML/CFT preventive measures in Liechtenstein is the Liechtenstein Due Diligence 
Act, No. 47/2009, and the Liechtenstein Due Diligence Ordinance, No. 98/2009. As an EEA member, 
Liechtenstein  implemented the Third EU Anti -Money Laundering Directive (2005/60/EC) and the related 
implementing measures, which have been incorporated into the above -mentioned acts.  
The Liechtenstein Due Diligence Act imposes special due diligence obligations on fina ncial institutions (banks 
and investment firms, e -money institutions, payment institutions, insurance companies, asset management 
companies, etc.) as well as designated non -financial business professions (DNFBPs) such as professional 
trustees, auditors, la wyers, dealers in goods, real estate agents, etc.  
 
Obligations include the requirement to identify and verify the identity of the customer and the beneficial 
owner, ongoing monitoring of the business relationship (including scrutiny of transactions), and p reparation of 
a business profile (information on the source of funds and the purpose and intended nature of the business 
relationship). The Due Diligence Act also provides for record keeping obligations and the  duty to implement 
organizational measures to prevent money laundering and terrorism financing.  
Where suspicion of money laundering, a predicate offence of money laundering, organized crime, or terrorist 
financing exists, all financial institutions and DNFBPs are required to report immediately to the  Financial 
Intelligence Unit (FIU). Likewise, all offices of the national administration and the Liechtenstein Financial 
Market Authority are subject to the obligation to report to the FIU.  
 
The European institutions have recently adopted measures to rein force the EU's existing rules on anti -money 
laundering and fund transfers, particularly taking into account the revised FATF Recommendations. The new 
measures were published in June 2015. As mentioned above, due to its EEA membership, Liechtenstein is 
implementing the new directive (4th Anti-Money Laundering Directive) into domestic law within two years of its 
publication. Liechtenstein has already adopted measures to transpose the new requirements and complete 
transposition is envisaged for 2017. The revis ed wire transfer regulation will be directly applicable upon 
incorporation into the EEA Agreement.  
 
The compliance of the Liechtenstein AML/CFT framework with the FATF Recommendations has been regularly 
assessed by the International Monetary Fund in coope ration with experts from MONEYVAL. The most recent 4th 
assessment visit to Liechtenstein took place in June 2013. The respective IMF/MONEYVAL report was published 
in June 2014 on the website of the Council of Europe/MONEYVAL. The Liechtenstein framework to  prevent 
money laundering and terrorist financing was overall assessed very positively. In total, 38 out of 40+9 
recommendations were rated positively, either as "compliant" or "largely compliant".  
The report acknowledges that "Liechtenstein has made signi ficant steps and achieved considerable progress 
since the last mutual evaluation, particularly in bringing its legal framework more closely in line with the FATF 
recommendations, consolidating an overall robust institutional framework for combating money l aundering 
(ML) and terrorist financing (TF) and moving towards greater transparency.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Bank deposit insurance scheme  
The Liechtenstein Bankers Association (LBA) established the Liechtenstein Deposit Guarantee and Investor 
Protection Foundation of the Liech tenstein Bankers Association (Einlagensicherungs - und Anlegerschutzstiftung 
des Liechtensteinischen Bankenverbands, EAS) , an autonomous foundation under Liechtenstein law. The 
Foundation has assumed the obligation, in the event of a bank's insolvency or ba nkruptcy, to pay 
compensation up to a specified maximum (SwF 100,000). All banks operating in Liechtenstein participate in 
the EAS.  
a The full text of the Banking Act is available at: 
https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=1992108000&version=18&signed=n&tablesel
=0). 
b Viewed at: http://eur -lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:02004L0039 -
20070921:EN:NOT . 
c Exceptions may be granted by the FMA.  
d Banks are obliged to adopt a dual management structure, with a board of non -executive directors 
and a management board; inter nal auditors, reporting directly to the board of directors, must also 
be appointed.  
Source:  Information provided by the authorities.  
4.113.   Box 4.8 below describes in detail the regulatory framework for insurance services in 
Liechtenstein, which was  extensively r evised in 2015 through the adoption of a new Insurance Act 
and its implement ing ordinance.  
Box 4.8 Liechtenstein's regulatory framework for insurance services, 2016  
Main regulations   
The Insurance Supervision A ct (LLG 2015, No. 231)a and the Associated Ordinance (LLG 2015, No. 239, 
fully in force since 1 January 2016)  
Supervisory authority : the FMA  
Preferential and bilateral policies  
Preferential arrangements affecting insurance services : none  
As a result of L iechtenstein's participation in the EEA, all of its banking, securities, insurance, and 
accounting legislation is based on EU legislation. The FMA fully participates in the European Insurance and 
Occupational Pensions Authority (EIOPA) without the right to  vote. On the basis of a bilateral agreement 
(Direktversicherungsa bkommen ) in force since 1998, insurance undertakings domiciled in Switzerland or 
Liechtenstein are granted freedom of establishment and operation in the other country. This agreement 
was ext ended in 2007 to allow insu rance intermediaries to engage in cross -border activities.  
Since October 2012, the FMA has also been a signatory to the IAIS multilateral MoU.  
Licensing  
A licence is required for conducting insurance activities.  
Undertakings mu st adopt the legal form of a limited company, Societas Europeas (SE), a cooperative, or 
European Cooperative Society (SCE).  
On 1 January 2016, the completely revised Insurance Supervision Act entered into force. Liechtenstein has 
thus implemented the EU So lvency II Directive into national law. Solvency II is a risk -based system that 
defines new requirements in regard to governance, risk management, and reporting. The new system 
makes appropriate qualitative and quantitative tools available to national super visory authorities, allowing 
them to appropriately assess the total solvency of an insurance undertaking. The main administration of 
the company (including accounting) must be situated in Liechtenstein.  
Undertakings domiciled and licensed in an EEA countr y may conduct direct insurance business in 
Liechtenstein without a Liechtenstein licence: the single -licence principle has applied since accession to the 
EEA.  
Insurance companies are prohibited from undertaking non -insurance activities.  
Cross -border provi sion of insurance services by EEA companies is possible, provided the insurance 
undertakings have the necessary solvency margin.  
Non-EEA-country insurance undertakings (except Switzerland, see above) require authorization in order to 
operate in Liechtenste in; they must establish an agency subsidiary or a branch office in Liechtenstein.  
a The full texts of this act and ordinance are available at: 
https://www.gesetze.li/lilexprod/lgpage2.jsp?formname=showlaw&lgblid=2015231000&version=0&s
earch_loc=text&lgblid_von=201523100 0&lgblid_bis=2015231000&sel_lawtype=chrono&rechts_gebi
et=0&menu=0&tablesel=0&observe_date=03.05.2016 ; and 
https://www.gesetze.li/lilexprod/lgpage2.jsp?formname=showlaw&lgblid=2015239000&version=0&s
earch_loc=text&lgblid_von=2015239000&lgblid_bis=2015239000&sel_lawtype= chrono&rechts_gebi
et=0&menu=0&tablesel=0&observe_date=03.05.2016 . 
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.114.   Box 4.9 below describes in detail the regulatory framework for investment 
undertakings/collective investment schemes, asset management compa nies, and payment services 
providers. The regulatory framework for investment undertakings has been extensively revised by 
the new Law on Investment Undertakings (IUA, LLG 2016, No. 45 ) which entered into force on 
1 October  2016.64 The main change brought a bout by  this new legislation is the creation of four 
types of investment undertakings: i) investment undertakings for single investors; ii) investment 
undertakings for families; iii) investment undertakings for community of interests; and iv) 
investment un dertakings for enterprises.  
Box 4.9 Regulatory framework for investment undertakings, asset management 
companies, and payment services providers  
Collective investment schemes  
 
Main regulations  
The Law on Investm ent Undertakings (IUA, LLG 2005, No. 156), the Act on Certain Undertakings for Collective 
Investment in Transferable Securities (UCITSA, LLG 2011, No. 295) and the Act on Alternative Investment 
Fund Managers (AIFMG, LLG 2013, No. 49)a 
 
Recent or planned re gulatory changes  
On 2 December 2015, the Parliament adopted the new Law on Investment Undertakings (IUA, LLG 2016, 
No. 45) which will replace the old IUA from 2005. On the same day, the Parliament adopted amendments to 
the AIFMG in order to implement the E U regulations on European Venture Capital Funds (EuVECA) and 
European Social Entrepreneurship Funds (EuSEF). The UCITS V Directive has been implemented through an 
amendment of the UCITSA, which  entered into force on 18 August 2016.  
Licensing  
Any collecti ve investment scheme requires a licence from the FMA. Collective investment schemes are divided 
into investment funds on a contractual basis ( common contractual fund), investment funds which have the 
legal form of a trusteeship, and investment companies (w hich have the legal form of a public limited 
company). Furthermore, investment funds (without UCITS) may be constituted under a partnership 
(investment limited partnership or investment partnership of limited par tners) too. The minimum required fully 
paid-up capital is SwF  1 million for management companies under the IUA and €125,000 or the equivalent 
amount in SwF for UCITS ma nagement companies and AIFMs (internally managed investment companies or 
alternative investment funds €300,000 or the equivalent amo unt in SwF). Investment companies must be 
incorporated as public limited companies, with fixed or variable capital. Regardless of form, these collective 
investment schemes (with fixed or variable capital) are obliged to have both a board of directors and a  
custodian bank, which must be registered in Liechtenstein. Mostly, the principal administration of collective 
investment scheme s in Liechtenstein is domiciled in Liechtenstein. According to notification procedures , the 
management companies can be domicile d in another EEA country and manage Liechtenstein collective 
investment schemes from there.  
 
Business scope  
Mutual funds may be marketed only by banks, fund management companies, or trustees with commercial 
presence in Liechtenstein. There are no secondar y markets or underwritings in Liechtenstein. Liechtenstein 
banks may participate in secondary markets through their Swiss operations. Units of foreign investment 
undertakings may be sold in Liechtenstein under licence or, if reciprocity exists, after notif ication.  
Asset management companies  
 
Relevant legislation  
The law on asset management (Asset Management Act, AMA) (LLG 2005, No. 278) entered into force on 
1 January  2006. This Act lays the foundation for asset management companies as new, internationally  
recognized, financial intermediariesb (supervisory authority : the FMA).  
 
Licensing conditions : minimum fully paid -up capital requirement of SwF 100,000  
                                                
64 The text of this l aw is available at: 
https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2016045000&version=1&signed=n&tablesel=0 . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Payment services providers  
 
Relevant legislation  
The law on payment services (Payment Service Act, PSA ) entered into force on 1  November 2009. It 
transposes the European Payment Service Directive into national law and regulates the establishment of 
payment service providers as new financial intermediaries as well as the requirements and obligations for the  
provision of payment services.c  
 
Supervisory authority : the FMA  
 
Licences granted : none  
a The texts of th is legislation are available  at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?formname=showlaw&lgblid=2005156000&gueltigd
ate=03052016 ; 
https://www.gesetze. li/lilexprod/lgsystpage2.jsp?formname=showlaw&lgblid=2011295000&gueltigd
ate =03052016  and 
https://www.gesetze.li/lilexprod/lgpage2.jsp?formname=showlaw&lgblid=2013049000&version=0&s
earch_text=AIFMG& 
search_loc=text&sel_lawtype=chrono&rechts_gebiet=0&menu=0&tablesel=0&observe_date= 
29.04.2016 . 
b The text of this law is available at: 
https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2005278000&version=11&signed=n&tablesel
=0). 
c The text of this law is available at: 
https://www.gesetze.li/lilexprod/ifshowpdf.jsp?lgblid=2009271000&version=12&signed=n&tablesel
=0). 
Source:  Information provided by the authorities.  
4.115.   Finally , Box 4.10 d escribes in detail the regulatory framework for pension funds in 
Liechtenstein.  
Box 4.10 Liechtenstein's regulatory framework for pension funds  
Pensio n funds   
Main regulations  
The Pension Funds Act (LLG 2007, No. 11) and the Associated Ordinance (LLG 2007, No.  16). As a result of 
Liechtenstein's participation in the EEA, the legislation on Pension Funds is based on EU law, which provides a 
prudential f ramework for pension funds based on minimum harmonization and mutual recognition.  
 
Pension fund structure  
A pension fund means an institution, irrespective of its legal form, operating on a funded basis, established 
separately from any sponsoring undertaki ng for the purpose of providing retirement benefits on the basis of an 
agreement in the context of an occupational activity. Institutions under the PFA must be kept strictly separate 
from institutions under the Occupational Pensions Act. There are no insti tutions subject to both laws. According 
to Article 1 of the Occupational Pensions Ordinance, the Occupational Pensions Act and the Occupational 
Pensions Ordinance only apply to persons insured by the Liechtenstein Old Age and Survivors Insurance (AVS). 
In all other cases, the Pension Funds Act applies. In case of a cross -border Pension Fund only the prudential 
regulation of the home member State is applicable. However, the pension fund has to comply with the social 
and labour law of the host member State.  
 
Licensing  
Pensions funds must hold a licence by the FMA prior to taking up business activities.  
Supervisory authorities  
The Office of Public health for health insurance, compulsory accident insurance and the first pillar of the 
pension system; and the FM A for the second and third pillars of the pension system.  
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.2   Telecommunications services  
4.3.2.1   Switzerland  
4.116.   Box 4.11 provides the main economic indicators for the telecommunication s sector in 
Switzerland,  while Box 4 .12 describes in some detail its regulatory framework and recent 
developments .  
Box 4.11 Market structure and regulatory framework of Switzerland's 
telecommunications sector, 2016  
Economic data (2014)  
Gross valu e added (% of total economy)  
2006: 1.33  
2011: 1.29  
2014: 1.24 
Employment in the sector (% of total) 
2006: 0.6  
2011: 0.68  
2015: 0.72  
Penetration rates  
Total telephone subscribers  (per 100 inhabitants): 194  
Penetration rate for fixed lines:  48.7%  
Mobile p hone subscribers  (% of total subscribers): 73.3  
Internet users  (per 100 inhabitants aged of 14 years old and over): 87.4 (Source: OFS)  
Fixed broadband subscriptions  (per 100 inhabitants, June 2015): 50.5 (Source: OECD, Broadband portal)  
Mobile broadband su bscriptions  (per 100 inhabitants, June 2015): 103.8 (Source: OECD, Broadband portal)  
Main actors  
Number of telecom services providers hosting SMS/MMS services and premium rate services  
There are 3 operators (Swisscom, Sunrise and Salt) which have the auth orization to allocate and host 
SMS/MMS short numbers. All three are active in hosting SMS/MMS services. Premium -rate services (premium -
rate phone numbers) are hosted by 56 telecom -service providers. (Source: data OFCOM/TP/NA, June 2016).  
 
Names and market shares of the leading companies for fixed telecom services  
Total: 84 companies  
Market leaders (by duration of connections): Swisscom: 55.0%, Sunrise: 14.0%; UPC Cablecom: 13.5% 
(Cablecom was renamed UPC Cablecom in 2011)  
Market leaders (by number of suscri bers): Swisscom: 62.3%, UPC Cablecom: 11.8%, Sunrise: 9.1%  
(Cablecom was renamed UPC Cablecom in 2011)  
 
Name and market shares of the leading companies for mobile telephones services  
Total: 13 companies  
Market leaders (by number of contracts): Swisscom: 5 6.0%; Sunrise: 18.4%; Orange: 18.5%. Eight other 
companies are simple resellers and two (UPC Schweiz GmbH and Lycamobile AG) are mobile virtual network 
operators (MVNOs). There is no legislation forcing the three network operating companies to make an offe r to 
MVNOs  
Name and market shares of the broadband Internet services   
Total: 169 companies  
Market leaders (by number of contracts): Swisscom: 53.4%; UPC Cablecom: 21.0%; Sunrise: 9.1%  
 
Foreign ownership participation in telecom companies  
Orange/Salt and U PC Cablecom are 100% foreign -owned  
Sunrise has been listed on the Swiss stock market SIX Swiss Exchange since 2015 (IPO, 6 February 2015)  
 
State ownership  
51% of the shares of Swisscom  
Establishment of new companies, mergers or closures during the review period  
On 23 February 2015, Orange Communications SA (Orange Suisse) was sold to NJJ Capital. NJJ Capital is a 
private holding owned by the French businessman Xavier Niel. On 23 April 2015, the company was renamed 
Salt.  
Source:  OFCOM Statistical Observat ory, unless exceptions. Viewed at: www.ofcom.admin.ch ; and Swiss 
statistics. Viewed at: http://www.bfs.admin.ch/bfs/portal/en/ index/themen/06/02/blank/data.html  
(28 September 2016); and http://www.bfs.admin.ch/bfs/portal/en/index/themen/04/02/02.html  
(28 September 2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 133 - 
 
  Box 4.12 Regulatory framework for telecommunication services in Switzerland  
Access/interconnection regulation and competition issues  
Access and interconnection regulation procedures  
The Swiss Telecommunications Act prescribes that telecom munications regulation is enforced ex -post 
following complaints by telecommunications service providers to the Swiss Federal Communications 
Commission (ComCom). Only in case of a complaint does ComCom review the reference offer of the operator 
with signifi cant market power. If significant market power (SMP) is denied by the operator, ComCom must 
first analyse the market power of the operator in question according to competition law. During this market 
analysis process, ComCom is required to consult the Swis s Competition Authority (COMCO). The legislator 
choose this approach, which is unusual by international standards, with the intention of protecting 
investments into fibre access networks and to restrain the powers of the regulator so there is no 
unnecessar y regulation. Much weight was attached to the bargaining ability of the market players by the 
legislator. From its point of view, the regulator should only intervene if the market players are unable to 
reach an agreement. ComCom has no power to intervene a utonomously.  
Fixed -access regulation  
Telecommunication service providers with significant market power must provide services and facilities to 
other telecommunications service providers according to Article 11 of the Swiss Telecommunications Law 
(RS 784.10 ). The services and facilities have to be provided at cost -oriented prices and on non -
discriminatory and transparent terms and conditions. The cost -oriented prices of an operator with significant 
market power are calculated on the basis of the "long -run in cremental costs" (LRIC), a method applied by 
most European countries. Operators with significant market power must publish a reference offer according 
to the rules given by the Swiss Telecommunications Law and the Ordinance on Telecommunications Services 
every year.  
Mobile -access regulation  
In principle, the rules regarding fixed voice termination also apply to mobile voice services. To date there 
have been one or more complaints against each of the mobile network operators, but no telecommunications 
service provider has ever upheld its complaint for long enough for ComCom to make a decision. In every 
case, the parties involved found an agreement and the applicant withdrew its lawsuit. Thus, so far, there 
have not been any decisions on mobile termination ra tes by ComCom. The content of the agreements is not 
known to the regulator.  
Recent or planned changes  
On 1 July 2014, a revised version of the Ordinance on Telecommunications Services entered into force. The 
revision included further guidelines on how to h andle the modern equivalent asset approach, which is part of 
the LRIC cost model, in case of major technological shifts. Furthermore there was a change regarding the 
costing methodology to calculate the cost of ducts and trenches. The new costing methodolo gy is related to 
the infrastructures renewals accounting approach as it is applied to water utilities in the UK for example.  
Within the last four years, telecommunications services providers filed complaints on nearly all forms of 
access obligations impose d on the SMP operator by law (see Article 11 of the Swiss Telecommunications 
Act). Most of these decisions were the subject of an appeal to the Swiss Federal Administrative Court. On 
18 January  2016, the Swiss Federal Administrative Court decided that from  1 January 2013, fibre -optic 
cables are to be considered the modern equivalent asset to build an access network with. Due to this 
decision, there are ongoing procedures regarding the prices since 2012 and ComCom is preparing the final 
decisions.  
Number of  complaints filed or resolutions of access/interconnection disputes among operators  
Compared with the four preceding years, the number of complaints has significantly decreased. 
Nevertheless, ComCom has had to lower most of the prices of the SMP operator ( Swisscom AG) contested by 
other telecommunications service providers. However, the difference between prices in the reference offers 
and prices in ComCom's decisions has been steadily declining.  
Other regulatory aspects  
Regulatory supervision  
The Federal Communications Commission (ComCom) is the independent authority regulating the 
telecommunications market. The activities and main tasks of this extra -parliamentary commission are the 
following:  
 the attribution of the concessions for the use of radio -commun ication frequencies;  
 the granting of the concessions (s) for the universal services;  
  the setting of access conditions (unbundling interconnection, leased lines, etc.) when providers cannot 
reach an agreement;  
 the approval of national numbering plans;  
 the setting of the implementation modalities of number portability and of the free choice of the 
provider;  
 decision -making regarding monitoring measures and administrative sanctions.  
As stipulated by the Telecommunications Law, ComCom calls on the Federal Offi ce of Communications 
(OFCOM) for the preparation of the cases and the execution of its decisions.  
 
Facility sharing  
For reasons of public interest, OFCOM may require providers of telecommunication services to allow joint use 
of their installations for an a ppropriate compensation. This is particularly relevant for mobile operators. 
Mobile -concessions include a clause on site sharing, but on a voluntary basis. ComCom has published a WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 134 - 
 
  guideline about technical elements which can be shared.  
 
Local loop unbundli ng 
Local loop unbundling on regulated terms and conditions is limited to twisted copper pair loops. At the 
moment, the unbundling on regulated terms and conditions of fibre local loops is not permitted by law. 
Demand for unbundled local loops reached its m aximum in summer 2012. Since then, demand has 
decreased rapidly. To cope with the demand for higher bandwidths, operators who unbundled local loops are 
substituting them with other wholesale products available on commercial terms and conditions. These 
comm ercially offered access products may be unbundled fibre local loops or any type of bitstream.  
 
SMP operators were required to offer local bitstreams over copper local loops on regulated terms and 
conditions during four years only. Since 2014, there has no longer been a reference offer for local bitstream.  
 
Number portability  
Providers must ensure portability of numbers and freedom of choice in the selection of suppliers of national 
and international connections.  
 
Spectrum management  
Auction of all mobile f requencies (including the "digital dividend" in the 800 MHz band as well as the 
2,600  MHz band).  
 
Orange, Sunrise and Swisscom were assigned mobile telephony frequencies in the auction that took place in 
early 2012. The assignment concerned frequencies th at were already free or that would soon become free, 
and all those granted to operators in the past (all in all 620 MHz were offered, of which 575 MHz were 
allocated). The auction covered the spectrum bands 800, 900, 1,800, 2,100 and 2,600 MHz. All three 
companies won 20 MHz in the 800 MHz band (digital dividend). The frequencies may be used on a 
technology -neutral basis, which means, all mobile radio technologies (including LTE/4G) can be used in all 
these bands. While fully open, the auction did not attra ct any new entrants or MVNOs.  
 
Roaming : There are transparency obligations regarding roaming for SMS. Operators may decide to apply the 
EU zero rate. However termination fees are higher in Switzerland than in the EU, hence operators tend to 
resort to comme rcial negotiations with their partners. On the other hand, roaming fees are increasingly 
included in the bundled offers.  
Transparency  
New provisions regarding transparency entered into force in 2015.  
Firstly, the protection of value added services consu mers was improved via the reinforcement of the 
provisions on the indication of prices. Article 11a bis, al. 3, of the Ordinance on the Indication of Prices (OIP; 
RS 942.211) stipulates that when a service is offered via internet and is billed on a provider 's invoice or via a 
pre-paid connection, it can only be billed to the final consumer if this consumer has explicitly confirmed the 
acceptation of the offer.  
 
Furthermore telecommunication providers will no longer be able to bill supplements in excess of th e 
indicated prices, for instance for the establishment or the duration of a call towards a number giving access 
to a value -added service. Calls to the 0800 numbers will hence become truly free whatever the origin of the 
call, a fixed connection or a mobile  (new Articles 39a et 39b of the Ordinance on Telecommunications OST).  
Finally, price transparency was also improved regarding calls directed to numbers dedicated to companies' 
networks (058). When initialling the call, customers will be have to been infor med, simply and for free, when 
additional taxes will be billed for such calls as compared to numbers containing a geographical dialling code 
(Article 10, al. 1 bis, OST).  
 
Accounting rates : not used.  
 
Licensing  
Switzerland applies a registration ("announce ment") regime for telecommunications network and service 
providers. Licensing is only used for the right of use of frequencies and the universal service obligation.  
 
Universal service (beneficiaries, contributors, services covered, level, expenditures, met hod of calculation 
and management)  
ComCom shall ensure that the universal service (US) is guaranteed for all sections of the population in all 
parts of Switzerland. To this end, it shall periodically grant one or more US licences. An invitation to tender 
shall be issued for the granting of the licence(s). The procedure shall be conducted in accordance with the 
principles of objectivity, non -discrimination and transparency.  
If it is clear in advance that the invitation to tender cannot proceed under conditio ns of competition, or if it 
does not produce any suitable candidates or when only one bid was submitted, the ComCom may appoint 
one or more providers of telecommunications, obliging them/it to offer the services making up the US.  
 
On 21 June 2007, ComCom d esignated Swisscom, the only applicant, as the universal licensee for a period of 
10 years, i.e. from 1 January 2008 to 31 December 2017. To date, the US licensee has not applied for any 
financial compensation. Any compensation would be provided from a uni versal service fund (USF). The WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 135 - 
 
  decisive factor in calculating a provider's fee is its turnover in the services provided in the country minus the 
costs of the telecommunications services it has purchased wholesale from third -party providers or billed for 
third parties. Providers with a relevant annual turnover of less than SwF 5 million are exempted from the 
fee. 
 
The content of the US, which is examined periodically by the Federal Council, consists of public telephone 
service (national and international cal ls, telefax) and data transmission (Internet access) at a fixed location, 
emergency call services, public payphones and specific services for disabled persons. Mobile telephony is not 
part of the US. However, the US provider is free to use the most suitabl e technology. For example, it may 
provide US in the form of mobile communication; such cases do effectively occur in mountain areas. Some of 
these services are tagged with a ceiling price. The US licensee must measure, and report yearly, on the 
quality of the services. The latest modification, which concerns the broadband data rate (Internet connection 
at a "new" minimum speed of 2,000/200 kbit/s), entered into force on 1 January 2015. There are no specific 
regulations on universal service and cross -subsidi zation.  
Source:  Information provided by the authorities.  
Table 4.7 Telecom tariffs, 2012 -15 
 2012  2013  2014  2015  
Fixed -lines national servicesa 
Index of real prices for a:  
small user  91.8 92.5 96.9 100.0  
medium user  98.0 99.2 99.7 100.0  
large user  93.1 94.8 99.6 100.0  
Mobile servicesb 
Index of real prices for a:      
small user  100.0  90.6 76.5 66.2 
medium user  100.0  94.7 91.8 72.1 
large user  100.0  104.0  95.7 70.4 
Internet services (only broadband s ervices)a 
Index of real prices for a:  
small user  133.5  126.1  116.5  100.0  
medium user  147.6  148.6  121.3  100.0  
large user  131.0  133.5  106.8  100.0  
Access/Interconnection ratesc (monthly charge per line)  15.8d 15.8d 13.5d 12.2d 
a Indexed data: 2015=100.  
b Indexed data: 2012=100.  
c Wholesale price of unbundled local loop.  
d Price as offered by Swisscom (SMP operator). Due to open legal procedures the price might be 
changed by ComCom in the final decision.  
Sources:  Retail Data: OFCOM Statistical Observator y. Viewed at: www.ofcom.admin.ch .  
 Interconnection rates: information provided by the Swiss authorities.  
Table 4.8 Retail mobile roaming rates, 2015  
Service (prices in SwF per minute/SMS/MB)  Q4 2015  
Retail voice roaming: calls made – prepaid & post -paid – EU – based on billed minutes  0.319  
Retail voice roaming: calls made – prepaid & post -paid – rest of world – based on billed minutes  1.994  
Retail voice roaming: ca lls received – prepaid & post -paid – EU – based on billed minutes  0.196  
Retail voice roaming: calls received – prepaid & post -paid – rest of world – based on billed 
minutes  1.592  
Source:  Retail Data: OFCOM Statistical Observatory. Viewed at: www.ofcom.admin.ch .  
 Wholesale Data: information provided by the Swiss authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.2.2   Liechtenstein  
4.117.   The telecommunications sector in Liechtenstein is governed by the applicable EEA Law.65 
Box 4.13 below provides the main econom ic indicators of the sector , while Box 4.14 describes the 
main features of its regulatory regime.  
Box 4.13 Market structure and main economic indicators of Liechtenstein's 
telecommunications sector, 2016  
Main ac tors 
Name and market share of the leading company for fixed telecom services : Telecom Liechtenstein AG (85% 
market share).  
 
Name and market shares of the leading companies for mobile telephones services : Salt (Liechtenstein) AG/Salt 
Mobile SA (40% market s hare), Swisscom (Schweiz) AG (39% market share), and Telecom Liechtenstein AG 
(19% market share).a Swisscom (Schweiz) AG and Salt Mobile SA have a significant number of cross -border 
customers living in Liechtenstein, who subscribe to their Swiss mobile net works (with Swiss number ranges 
+41 7xx and contracts subject to Swiss legislation over which the National Regulatory Authority of 
Liechtenstein has no jurisdiction).  
 
Companies providing value added telecom services : Telecom Liechtenstein AG  
 
Foreign owne rship participation in telecom companies : Some two thirds of all registered enterprises are fully or 
partly owned by foreigners. The Austrian Mobilkom Beteiligungs GmbH holds a 24.9% share in Telecom 
Liechtenstein AG. Salt (Liechtenstein) AG and Swisscom ( Schweiz) AG are 100% foreign -owned.  
 
State ownership : Liechtensteinische Kraftwerke (LKW) owns, operates and maintains the major part of the 
fixed communication network infrastructures (Twisted Copper, HFC and fibre), and is 100% state -owned. The 
Principal ity of Liechtenstein retains 75.1% ownership of Telecom Liechtenstein AG. Both LKW and Telecom 
Liechtenstein AG are regulated, due to significant market power (see Box 4.14, paragraph on competition 
policy).  
 
Penetration rates (2015)  
Population : 37,623  
Households (2010) : 15,474  
ISDN subscribers : 5,112  
Main (fixed) telephone lines in operation : 17,312  
Main (fixed) telephone lines/100 inhabitants : 46 
Main (fixed) telephone lines/100 households : 112  
Mobile cellular telephone subscribers (digital) : 41,471  
Mobile cellular telephone subscribers/100 inhabitants : 110  
Internet subscribers (fixed line) : 15,608  
Internet subscribers (fixed line)/100 households : 101  
Mobile broadband/100 inhabitants : 102  
 
Tariffs (evolution of tariffs since the last TPR in 2013)  
Bundle an d flat rate offers are becoming predominant in both fixed and mobile services. This development 
makes tariff comparison more complex for the end -user 
For local services : stable tariffs  
For international services : stable tariffs  
For mobile services : decreas ing tariffs (roaming directive)  
For interconnection rates : decreasing tariffs  
For internet services : stable tariffs, coupled with a significant increase in Mbit/s performance for fixed and 
increased data volume or Mbit/s performance for mobile internet ser vice 
 
Market developments  
The trend towards web - and mobile -based services continues. Although the decline in the fixed network is 
quite moderate compared to other countries, a strong uptake in mobile and web -based services can be 
observed – triggered main ly by data -only mobile internet -access offered by one provider for international 
travellers. In the fixed network, a trend towards IP -based voice services, which are bundled with internet -
access and TV, can be observed.  
 
Currently, many discussions are ta king place regarding "Internet of Things" and "Machine -to-Machine -
Communication" and mobile operators are investing intensively in the development and deployment of services 
and infrastructure. These developments are closely monitored by the Office for Com munications – especially 
                                                
65 See Annex XI to the EEA Agreement . Viewed at: http://www.efta.int/media/documents/legal -
texts/eea/the -eea-agreement/Annexes%20to%20the%20Agreement/annex11.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  with regard to the competition in the traditional telecoms markets.  
 
Establishment of new companies, mergers or closures since the last TPR in 2013  
Since the last review, 15 enterprises have left the notification register (ceasing  telecom services in the 
Liechtenstein market), and 12 enterprises notified entrance to the telecom market of Liechtenstein, all of them 
focusing on business customers (data services) or telecom service providers (wholesale offers, e.g. mobile 
messaging, I oT, and fixed voice interconnection). Mobilkom Liechtenstein AG merged into Telecom 
Liechtenstein AG in August 2014. This was the only change with relevance to the national retail market.  
a The last 2% -market share is h eld by "non -leading companies" as on ly a few people in Liechtenstein 
have contracts with them. The companies are: Sunrise, European Internetworking and First Mobile. 
Sunrise customers have to pay roaming fees in Liechtenstein. European Internet ceased to exist 
recently and First Mobile is a start-up in its early stages  
Source:  Information provided by the authorities.  
Box 4.14 Regulatory framework of telecom services in Liechtenstein  
Recent or planned regulatory changes  
The telecommunications market  in Liechtenstein is subject to vertical separation, separating the provision of 
the passive network infrastructure from the provision of services. In order to enhance efficiency, in the sense 
of maximizing consumer welfare and achieving optimal allocation  of resources (e.g. avoiding double 
investments into the communication networks and achieving synergies with the electric power network 
infrastructure of Liechtensteinische Kraftwerke), the Government of the Principality of Liechtenstein decided to 
separat e the passive network and the active network for the provision of services by means of a "consolidation 
agreement" signed by the state -owned Liechtensteinische Kraftwerke (LKW) and Telecom Liechtenstein AG. 
The purpose of the agreement was to concentrate a ll retail customer relationships and intelligent network 
components (active network) in Telecom Liechtenstein's hands and to combine all passive network 
components, including in particular the local loop, transmission lines, cable routes, civil engineering  
infrastructure, in the hands of Liechtensteinische Kraftwerke. LKW is obliged to grant unhindered, non -
discriminatory wholesale access to the passive network to all registered telecommunication service providers. 
The agreement, which was also notified to the EFTA Supervisory Authority (ESA), was put into effect on 
1 January 2007.  
 
Since the EU telecommunications regulatory framework applies through the EEA, Liechtenstein has transposed 
the Telecom Package 2002, including the Access Directive (2002/19/EC); the Authorization Directive 
(2002/20/EC); the Framework Directive (2002/21/EC); the Universal Service Directive (2002/22/EC); and the 
e-Privacy Directive (2002/58/EC).  
 
As a result, a new Communication Acta entered into force in June 2006.  
 
In 2007, the corresponding ordinances of the Communication Act entered into force (Ord inance concerning the 
Responsibilities and Powers of the Regulatory Authority in the Field of Electronic Communication of 
3 April 2007, Ordinance concerning Electronic Communications Networks and Services of 3 April 2007, 
Ordinance concerning Means of Iden tification and Frequencies in the Field of Electronic Communication of 
8 May 2007, Ordinance about Levy of Usage and Administration Fees by the Communication Act of 
13 April 2004 (Revision), the Liechtenstein Numbering Plan referred to as ITU -T E.164 of 3 April 2007 and 
Ordinance concerning Radio Equipment and Communications Terminal Equipment of 3 April 2007).  
The Communication Act was revised in 2010b due to changes in the legal environment as well as technical 
advancement in electronic communication. Other reasons for the revision were the protection of users and the 
fight a gainst the abuse of call numbers. In the same year, the main part of the corresponding ordinances was 
also revised.  
 
The Telecom Package 2009, which consists of Directives 2009/136/EC  and 2009/140/EC  as well as Regulation 
(EC) 1211/2009 , is cur rently under preparation to be incorporated into the EEA Agreement. Another revision of 
the Communication Act will transpose, inter alia , the amendments of the new telecom package directives into 
national law.  
 
Furthermore the relevant roaming regulations were transposed into Liechtenstein's laws implementing the 
respective roaming tariffs. The Office for Communications is closely screening the application of these tariffs.  
 
Mobile roaming and net -neutrality : On 26 November 2015, the European Union adopted Regulation 2015/2120 
laying down measures concerning open internet access and amending Directive 2002/22/EC on universal 
service and users' rights relating to electronic communications networks and services and Regulation (EU) 
No. 531/2012 on roaming on pu blic mobile communications networks within the Union. As in Regulation 
531/2012, the political aim is to eliminate the differentiation between domestic and roaming tariffs. The new 
regulation provides for the abolition of roaming surcharges. Furthermore, i t aims to establish common rules to 
safeguard equal and non -discriminatory treatment of traffic in the provision of internet access services and 
related end -users' rights. It aims to protect end -users and simultaneously guarantee the continued functioning 
of the internet ecosystem as an engine of innovation. The supervision and control of enforcement rests with WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  the National Regulatory Authority. Therefore, the Office for Communications is competent and responsible for 
the transposition into national law and  for ensuring the correct application by the operators.  
 
Interconnection  
Telecom Liechtenstein AG and Liechtensteinische Kraftwerke are obliged to make their infrastructure and 
services available to other enterprises offering telecommunication services, i n a neutral, non -discriminatory, 
and cost -based manner. Interconnection obligations are based on the relevant EU principles and therefore 
apply to all market participants. Neither Telecom Liechtenstein AG nor Liechtensteinische Kraftwerke enjoys 
any exclus ive rights.  
On national level, the mobile operators are interconnected to Telecom Liechtenstein AG only. All operators run 
further international interconnections. Mobile interconnection charges are agreed between operators. The 
mobile termination fees are regulated as a result of the mobile termination market analysis, by a phased 
reduction of price caps ending at 0.0765 SwF/min as of 1 January 2013. As of 1 May 2016, the termination 
tariffs had been reduced to 0.039 SwF/min as a result of an agreement betw een the Liechtenstein operators 
responding to the measures of the Roaming IV Regulation, which will abolish roaming tariffs within the EEA.  
 
Competition policy  
Market analysis/enquiries : In 2009 -2012, the Office for Communications conducted several market analyses on 
the markets for access to the public telephone network at fixed locations ("M1"), call origination and 
termination on fixed networks ("M2" and "M3"), network infrastructure access at fixed locations ("M4"), 
broadband ("M5"), terminating segment s of leased lines (wholesale market; "M6"), trunk segments of leased 
lines (wholesale market) and mobile termination ("M7"). The Office for Communications finalized the market 
analysis for M6 as defined by the EFTA Surveillance Authority (ESA) in the recom mendation of 5 November 
2008, concluding that there was no dominant position in M6.  
In 2013 -2016, the market for physical access to infrastructures in the core network was analysed by the Office 
for Communications with the result that Liechtensteinische Kr aftwerke has significant market power. 
Liechtensteinische Kraftwerke was obliged to grant access to their network (including the access to ducts and 
other passive infrastructure) in a non -discriminatory manner, charging cost -oriented prices. Furthermore, 
Liechtensteinische Kraftwerke is obliged to adhere to accounting separation, non -discrimination, publication of 
a reference offer and transparency.  
The relevant reference offer for granting access to the twisted pair copper network as well as the reference 
offer for collocation were both revised in 2014 and approval was granted in January 2015. Also in 
January  2015, the relevant prices were approved by the Office for Communications.  
In addition, preliminary work for reanalysing the market for voice call ter mination on individual mobile 
networks has commenced.  
 
Dominant suppliers : The Office for Communications identified Telecom Liechtenstein AG (in M1, M2, M3, M5, 
M7, Liechtensteinische Kraftwerke (in M4 and in the market for physical access to infrastructur es for high -
capacity transmission routes in the core network) as well as each mobile network operator (M7) as providers 
with significant market power, and applied specific regulatory remedies under the Communication Act of 
June 2006. In the wholesale marke t of leased lines, comprising trunk as well as terminating segments, 
effective competition prevails and no measures of special regulation are required in the sense of an ex -ante 
regulation.  
 
Other regulatory aspects  
Regulatory supervision : The Office for C ommunications (online information available at: 
http://www.llv.li/#/1833/  in English)  
Facility sharing and local -loop unbundling : Both services are offered by Liechtensteinische Kraftwerke to 
registered teleco m service providers under transparent, cost -oriented, non -discriminatory conditions, according 
to the reference unbundling offer, which was authorized by the Office for Communications in the framework of 
the M4 market analysis.  
 
FTTB network infrastructure  (fibre to the building) : Liechtensteinische Kraftwerke is preparing the rollout of a 
national FTTB access network, with expected completion in the early 2030s. The Office for Communications is 
following the project planning of Liechtensteinische Kraftwerk e in order to make sure that the future offer of 
glass fibre local loops as well as the migration phase will be in line with the regulatory obligations (non -
discrimination and transparency) and will further competition in the telecoms market.  
 
Number porta bility: Not implemented. A consultation conducted by the Office for Communications in June 2012 
resulted in low interest from the alternative providers in Liechtenstein, since the costs for (mobile) number 
portability would be extremely high due to the rel atively low numbers of users on each network.  
 
Spectrum management : The Liechtenstein Frequency Allocation Plan (FAP) consists of several parts including 
the principles of spectrum management. These principles are described with a transparent approach on b oth 
national and international levels. The integral components of FAP are: frequency ranges and radio interface 
requirements, as well as comprehensive lists of specific assignments and harmonized frequency ranges. All the 
relevant CEPT and ECC or European Commission decisions are also listed and referenced in the FAP.  
The technical and operational requirements of the frequency use in Liechtenstein create a transparent and 
comprehensive picture which reflects the components of the R&TTE and soon to be introd uced RED directives WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  of the European Union. This is important for the users themselves, but above all for the manufacturers and 
distributors of radio devices.  
The FAP complies fully with the ITU (International Telecommunication Union) and the CEPT (European  
Conference of Postal and Telecommunication Administrations) recommendations.  
Viewed at: http://www.llv.li/files/ak/pdf -llv-ak-frequenzzuweisungsplan.pdf . 
 
Accounting rates : not used.  
 
Licensing : The 2006 Communication Act eliminated the licencing system. All activities in the area of electronic 
communication are licence -free; however a notification to the Liechtenstein Office for Communications, the 
national regulatory author ity, is required.  
 
Universal service : provided by Telecom Liechtenstein AG.  
a The text of this Act is available at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?search_loc=text&rechts_gebiet=0&menu=0&tables
el=0&observe_date=18.10.2016&formname=showlaw&lgblid=2006091000&version=1 . 
b The text of this Act , as revised in 2010 , is available at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?searc h_loc=text&rechts_gebiet=0&menu=0&tables
el=0&observe_date=18.10.2016&formname=showlaw&lgblid=2006091000&version=2 . 
Source:  Information provided by the authorities.  
4.3.3   Postal, express and courier services  
4.3.3.1   Switzerland  
4.118.   Box 4.15 below describes the main featur es of the postal services sector in Switzerland.  
Box 4.15 Main features of the Swiss postal sector, 2016  
Gross value added (% of total economy)  
2006: 0.80  
2011: 0.73  
2014: 0.52  
Employment in the sector (% of to tal) 
2006: 1.17  
2011: 0.92  
2015: 0.85  
Governmental authority : Federal Department of Environment, Transport, Energy and Communications (DETEC)  
Regulatory authorities : the regulation of the sector is shared among three authorities:  
- The Federal Office of Communications (OFCOM) prepares the official decisions of the DETEC, the Federal 
Council and the Parliament relating to matters in the postal sector. It systematically observes and analyses 
the national and international markets in the postal sector, super vises the services provided under the 
universal service regarding provision of payment transaction services as well as access to those services. 
Furthermore, it evaluates the postal legislation and develops new legal principles. In addition, it attends 
international affairs in the postal sector and in the sector of payments and it evaluates applications for press 
support.  
 
- The Postal Commission (PostCom) is an independent regulatory authority. It monitors universal services, 
checks that Swiss Post compute s correctly the net costs of universal service and respects the prohibition of 
cross-subsidization. At the request of the municipalities concerned, PostCom emits recommendations to Swiss 
Post in case of closure or transfers of post offices or of their tran sformation into agencies (i.e.  a partner who 
undertakes postal operations on behalf of Swiss Post, e.g. a grocery store). It adjudicates disputes between 
postal services providers concerning access to P.O. boxes or exchange of addresses data. It administer s the 
registration of postal services operators and monitors the application of usual social and working conditions of 
the branch by these operators. Finally, it institutes and monitors the "Independent Conciliation Organ" which is 
tasked with making propo sals of conciliation in cases of dispute between postal services providers and their 
clients.  
 
- "Mister Price" (Preisueberwacher) is the price surveillance authority with a right of recommendation for the 
prices of the reserved services, which are subject  to final approval by the Federal Council. For non -reserved 
services, it has a right of decision for services where Swiss Post has a dominant position. In case of price 
abuse, it must first try to obtain an out of court settlement.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Designated operator  
Swiss Post is legally obliged to ensure the universal service for postal services and payment services. The 
scope of the universal service obligation is defined in the Postal Law (LPO; RS 783.0) of 17 December 2010 
and the Postal Ordinance (OPO; RS 783.01) of  29 August 2012. The mandate is not limited in time. The Postal 
Law must be evaluated every 4 years and the scope of the universal service obligation will be adapted if 
necessary. The first evaluation report was published by the Swiss Government by the end  of 2016.  
 
Swiss Post is a public law limited company held at 100% by the Swiss Confederation.  
Restructuring/postal reform  
The law on postal reform was voted on by the Parliament on December 2010 and entered into force together 
with the postal ordinance  on December 2012. The reform process was declared concluded by the Federal 
Council on June 2013. The reform entails the transformation of Swiss Post into a public law limited company 
and its separation from Post Finance. The postal ordinance specifies not ably the scope of the universal service 
regarding postal services and payments services, various rules regarding the regulation of the market, inter -
operability, the price support mechanism for the diffusion of the press and institutional arrangements.  
Universal service  
Deposit, collection, transport and distribution of all letters and of parcels up to 20 kilogrammes at least five 
days a week according to uniform principles in terms of quality and tariffs. Swiss Post must exploit a network 
of post offices covering the entire territory and ensure that services are available at a reasonable distance for 
all regions and all segments of the population.  
Reserved services  
Letters whose weight does not exceed 50 grams, of a maximum thinness of 2 cm and of B4 for mat 
(353x250  mm) for a price that can reach up to three times the base tariff for letters.  
Services opened to competition : the parcels market has been fully opened to competition since 
1 January  2004. Companies providing non -reserved services and whose t urnover exceeds SwF 500,000 must 
"announce" the commencement of their activities to PostCom in the framework of an "ordinary announcement 
obligation". Companies  offering such services but having a turnover below this threshold are subject to a 
simplified a nnouncement procedure.  
Rates : the Federal Council sets maximum/ceiling rates for reserved service through an ordinance. The rates of 
the various services must be fixed according to economic and uniform principles. In particular, the tariffs of 
letters and  parcels covered by universal services must be set independently from distance. The competent 
authorities only check compliance with these principles on a case -by-case basis.  
Financing methods : Swiss Post must self -finance its activities and has no access  to financial markets. The 
Federal Council set quadrennial objectives for the company. The present objectives cover the period 2013 -
2016.  
Status of personnel : since the 2010 reform, the personnel hired by Swiss Post have had a private law status. 
All the employment contracts had to be transferred to a private law status agreement within two years of 
1 October 2012 (entry into force of the new postal law). The transformation was completed in Summer 2016.  
 
All postal providers including Swiss Post and the su bcontractors with which they realize more than 50% of their 
turnover must abide by the usual working and social conditions of the branch and conclude a collective working 
agreement.  
Source:  UPU; information provided by the authorities and Swiss statistic s. Viewed at: 
http://www.bfs.admin.ch/bfs/portal/en/index/themen/06/02/blank/data.html  (28 September 2016); 
and http://www.bfs.admin.ch/bfs/portal/en/index/themen/04/02/02.html  (28 September 2016).  
4.119.   Table 4. 9 below shows  the turnover of Swiss Post and its various perimeters and of the 
alternative postal providers (as a group ), employment  figures, as well  as the number of alternative 
postal services providers subject to the two "announcement procedures". There is no information 
available on the market share of foreign -owned postal services providers.  
Table 4.9 Main economic indicators of the Swiss postal services sector, 2015  
 2015  
Swiss Post Group:  
Operating income (includes all activities, for example, communication 
market, logistics market, passenger transport market, financial 
services ma rket)   
SwF 8,224 million  
Swiss Post (not including associated companies with postal services):  
Revenues from postal services (includes letters up to 2 kg; parcels up 
to 30 kg, newspapers, periodicals, express courier, domestic, import, 
and export)   
SwF 3,118 million  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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   2015  
Other postal services providers:  
Revenues from postal services (includes letters up to 2 kg, parcels up 
to 30 kg, newspapers, periodicals, express courier, domestic, import, 
and export)   
SwF 819 million  
Number of postal services providers subject to the ordinary duty to 
register  41 
Number of postal services providers subject to the simplified duty to 
register  116 
Employment postal sector  62,341 employees or 44,131 full -
time equivalents (Swiss Post Group)  
Source:  Information provided by t he authorities.  
4.120.   Switzerland does not have any GATS commitments regarding postal services (i.e. services 
defined by the CPC/W120 classification system as the collection, pick up, transport and distribution 
of letters and parcels by public entities) and cou rier services (the same services provided by 
private entities). But Switzerland has subsequently undertaken extensive commitments in these 
sectors. The formulation of these FTAs commitments varies somewhat depending of the agreement 
concerned.  
4.121.   With respec t to recent FTAs, such as the Agreement between EFTA and Central America 
(Costa Rica, Guatemala and Panama), Switzerland undertook some commitments in the area of 
postal and courier services. However, these commitments are limited to "express delivery 
services" defined in the agreement as follows: " Express delivery services are taken as " letter 
deliveries" which are delivered at five times the price applied by Swiss Post (La Poste Suisse/Die 
Schweizerische Post) to the delivery of a priority letter of first  level of weight and format and as 
"parcel deliveries " which are delivered at double the basic tariff applied by Swiss Post to the 
delivery of a parcel of first level of weight, as according to Swiss law" . The commitments for 
"express delivery services" ar e full for market access and national treatment  
4.122.   Regarding more specifically the express services subsector, express carriers are considered 
as alternative postal services providers by the Postal Law. Hence, they are subject to an 
announcement procedure and  to the working conditions of the postal and courier sector. There is 
no specific licencing regime. Switzerland does not apply any GATS market access or national 
treatment restrictions to the sector and only requires evidence of an address in Switzerland for the 
company 's headquarters.  
4.123.   As evidenced by Table 4.10 below, express carriers are among the top postal services 
providers in Switzerland both in terms of volume and revenues  
Table 4.10 Number of postal s ervice providers with more than 1% of the total Swiss 
postal market, 2015  
 2015 Including express and 
courier services  Notes  
In terms of volume  5 Yes letters, parcels, newspapers, periodicals, 
also all express and courier services, 
domestic, import, and e xport 
In terms of revenues  7 Yes letters, parcels, newspapers, periodicals, 
also all express and courier services, 
domestic, import, and export  
Source:  Information provided by the authorities.  
4.3.3.2   Liechtenstein  
4.124.   Liechtenstein's accession to the  EEA brought ma jor changes in the area of postal services. 
Since 1 January 2000, all tasks regarding postal services previously performed by the Swiss Post 
have been  taken over by the Liechtensteinische Post AG. In addition, the Liechtensteinische Post 
AG is universal se rvice supplier.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.125.   In 2004, the Postal Act was amended with regard to the further opening of the postal 
market.66 The monopoly limit regarding the conveyance of letters was lowered to 100 grams, and 
then to 50 grams as of 2006.  
4.126.   Directive 2008/6/EC (Third Pos tal Directive) provides for the total liberali zation of postal 
services within the Single Market. The gradual opening of the market and the liberalization of the 
postal services has entered into a crucial phase. The Member states are obliged to ensure that  
high quality universal services are offered for an affordable price. The establishment of an 
independent national regulatory authority is one of the main pillars of the EU postal reform. It also 
contains the legal framework for the definition of universal  service obligations and tariff principles, 
and provisions concerning the transparency of the accounting of universal service providers as well 
as the determination of and compliance with quality standards. This directive has not been 
incorporated into the  EEA Agreement yet. However, the preparatory work for national 
implementation has been  completed.  
4.3.4   Architectur al services  
4.127.   Architectural services in Switzerland are lightly regulated as there is no federal legislation 
limiting the access to the profession an d only 6 cantons out of 26 regulate access.  
4.128.    Box 4.16 describes the main economic indicators and regulatory features of architectural 
services in Switzerland.  
Box 4.16 Main economic and regulatory features of ar chitectur al services in Switzerland  
Statistical data  
Number of architects (2015): 5,330  
Regulatory data  
GATS commitments  
None for modes 1, 2 and 3 for market access, none for modes 1, 2 and 3 except for national treatment for the 
Canton of Lucerne wher e three years of prior professional practice in Switzerland is required for modes 1 and 
3. 
FTAs commitments  
- for positive listing agreements (EFTA -Colombia, EFTA -Korea, EFTA -Singapore, EFTA -Ukraine, Switzerland -
China: none for market access and national  treatment for modes 1 ,2 and 3.  
- for negative listing agreements (EFTA -Hong Kong, China, Japan -Switzerland): full commitments except one 
reservation to national treatment for an existing measure regarding official certification for construction 
authoriza tions and stipulating that "Applications for construction authorizations may require the signature of a 
natural person registered in the Swiss Registers of Engineers, Architects and Technicians (REG)".  
Applied regime  
There is no federal legislation limiti ng access to the profession and only 6 cantons out of 26 regulate this 
access. In the other cantons, the architectural profession is not regulated. This means that the foreign 
architect does not need to obtain recognition of his/her professional qualificat ions and may work directly on the 
basis of his/her foreign qualification. In the 6 cantons where the profession is regulated the rules are the 
following:  
 
- access  
In the Cantons of Geneva , Vaud , and Neuchâtel , an authorization is required in order to wor k in this 
profession. Authorization is granted on the basis of proof of specific professional qualifications. In these 
cantons, authorization to work in this profession is set forth in spatial planning legislation. It is therefore 
                                                
66 The relevant basic legislation is available at: 
https://www.gesetze.li/lilexprod/lgsystpage2.jsp?formname=showlaw&lgblid=1999035000&version=5&search
_loc=titel&lrnr=783.0&sel_lawtype=conso&compl_list=1&rechts_gebiet=0&menu=0&tablesel=0&observe_date
=26.04.2016  (Act of 18  December 1998 on the Liechtenstein Postal System (Postal Act) LGBl. 1999 No. 35 
(LR 783.0)); 
https://www.gesetze.li/lilexprod/lgpage2.jsp?formname=sh owlaw&lgblid=2004106000&version=0&search_loc
=text&lgblid_von=2004106000&lgblid_bis=2004106000&sel_lawtype=chrono&rechts_gebiet=0&menu=0&tabl
esel=0&observe_date=28.10.2016  (Act of the Amendment of the Postal Act, LGBl. 2004 No. 106, (LR  783.0)); 
and 
https://www.gesetze.li/lilexprod/lgs ystpage2.jsp?formname=showlaw&lgblid=1999248000&version=3&search
_loc=titel&lrnr=783.0&sel_lawtype=conso&compl_list=1&rechts_gebiet=0&menu=0&tablesel=0&observe_date
=26.04.2016  (Ordinance of 14 December 1999 to the Postal Act, LGBl. 1999 No. 248, (LR 783.01)).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  required in order to sign  building permit applications. If the architect does not intend to sign building permit 
applications, e.g. because he/she works as an employee of an architectural firm and the building plans are 
signed by the employer or by another architect holding such a uthorization, therefore working in the profession 
is possible without the need for recognition (i.e. the profession is not regulated).  
Authorization to work in this profession is required regardless of how the profession will be carried out, i.e. on 
a long-term basis (domiciliation in Switzerland) or on a more temporary basis (provision of services, limited to 
90 days per calendar year within the framework of the Agreement of 21 June 1999 on the Free Movement of 
Persons).  
In the Canton of Fribourg , the si tuation is identical with the exception that if the architect provides services 
without becoming domiciled within the territory of the Canton of Fribourg, he/she must be qualified to work in 
this capacity and must obtain recognition of his/her qualificatio n before starting to carry out this activity (i.e. 
the profession is regulated). However, no formal authorization to carry out this profession will be issued to 
him/her. In such cases, when submitting a building permit application to the competent cantonal  authority, the 
architect providing the services must show proof that his/her professional qualifications have been recognized.  
 
In the Canton of Ticino , the person must obtain authorization from the Ordine Ingegneri e Architetti del 
Canton Ticino (OTIA) in order to work as an architect. This authorization is also specifically requested both 
when applying for a building permit (Art. 4 of Building Code) and for the project study and execution phases 
for contracts subject to legislation on public procurement  contracts (Art. 34 al. 1 let. d of RLCPubb/CIAP). It is 
therefore specifically required in order to sign building permit applications and to manage construction. This 
requirement applies both to architects domiciled in Switzerland and to architects who on ly provide services on 
a temporary basis.  
 
In the Canton of Lucerne , architects must have the necessary training but there is no procedure for 
registration with a professional association or register, nor is there any requirement to obtain authorization t o 
work in this profession.  
Qualifications  
- A local qualification: a Bachelor's or Master's degree from a Swiss higher education institution (UAS, EPFL or 
USI) and a  non-compulsory inscription in the Swiss Register of Engineers, Architects and Technicia ns (REG) 
(either Architect REG A: full scope of exercise, or REG B: narrower scope of exercisea). Inscription in the REG is 
one way to obtain cantonal authorization, but it is not the only one. Cantonal authorization is also issued if the 
applicant has a B achelor's or Master's degree but is not registered in the REG. Additionally, it is possible for a 
construction draftsman (without being architect), for example, to pass a special examination at the REG ("self -
made architect" exam) to obtain cantonal author ization, even if he/she does not hold a BSc or MA degree as an 
architect;  
 
- or, alternatively, a recognized foreign qualification, which grants the same rights as those enjoyed by holders 
of a Swiss qualification with the sole exception of the right to u se a legally protected qualification title.  
 
There are two main legal bases and procedures for the recognition of foreign qualifications, one specific for EU 
and EFTA citizens and one generic applying to both EU and EFTA citizens and citizens of other sta tes.  
 
- First, the Agreement of 21 June 1999 on the Free Movement of Persons (AFMP) allows citizens of EU/EFTA 
countries to seek recognition of their professional qualifications if they are fully qualified, in their country of 
origin, to work in this prof ession in question. The AFMP refers to its Annex III to Directive 2005/36/EC on the 
recognition of professional qualifications. For architects holding a qualification listed in Annex 5.7.1 or Annex VI 
of the Directive, this directive provides for automatic  recognition (i.e. no need to examine the content of 
training). For architects who are fully qualified in their country of origin but whose qualification is not listed in 
either of these two annexes, recognition of the qualification will require comparison  of training content and 
possible "compensatory measures" i.e. additional exams and tests.  
 
- Second, the Ordinance of 12 November 2014 to the Higher Education Act provides for recognition of foreign 
qualifications that are comparable to a degree programme  at a Swiss university of applied sciences (UAS). It 
applies indistinctly to citizens of EU/EFTA member States. It establishes various criteria, namely equivalence of 
duration, level and content of training. Training must also include acquisition of practi cal competences.  
 
If the conditions for recognition are met, this procedure leads to equivalence with a Bachelor's degree or a 
Master's degree in architecture awarded by a Swiss university of applied sciences (UAS). It is worth noting that 
so far there is  no legal basis enabling recognition for a Bachelor's degree or a Master's degree in architecture 
awarded by a Swiss federal institute of technology (the EPF in Lausanne and the ETH in Zurich). The same 
holds true for degrees in architecture awarded by the  Università della Svizzera italiana in Lugano (USI); since 
there is no legal basis, it is not possible to submit a request for equivalence with the Master's degree in 
architecture awarded by the USI.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Procedures  
There are 3 different procedures applicable depending on the case:  
- Architects that satisfy the conditions for automatic recognition under Directive 2005/36/EC may contact SERI. 
They will receive a letter from SERI confirming that the qualification must be automatically recognized and that 
they mus t be automatically inscribed in the registers of cantons that regulate this activity (MPQ register in the 
Canton of Geneva, CAMAC in the Canton of Vaud, OTIA in the Canton of Ticino, etc.). This letter may also be 
presented when submitting bids for public procurement contracts. It is usually mailed out within 1 -2 weeks if 
the application file is complete.  
 
- For EU/EFTA architects fully qualified in their country of origin but whose qualification does not appear in 
Annex  5.7.1 or VI of Directive 2005/36/EC , the procedure involves comparing training content with that 
required for Swiss qualifications in the cantons that regulate the profession (Articles 11 -14 of Directive 
2005/36/EC). If the qualification is not known, this comparison may take three or four months. The amount of 
time required for possible compensatory measures will increase this duration.  
 
- For architects from third States who are fully qualified to work in this profession in their country of origin, and 
whose training is comparable to a de gree programme at a Swiss UAS, the procedure is similar to the one 
described directly above. However, it may last a little longer. Moreover, possible compensatory measures may 
be less supple than those set forth in Directive 2005/36/EC. In particular, appl icants are not generally allowed 
to choose between the various compensatory measures.  
Scope of practice : the regulation covers the right to sign a construction request in order to get the 
construction permit.  
Legal monopoly : no, shared with civil enginee rs. 
Possibility for foreign architect to exercise independently : yes.  
a For more details  on the REG, see  http://reg.ch/en . 
Source:  Information provided by the authorities.  
4.3.5   Construction services  
4.129.    Construction is a signific ant activity in Switzerland as it represents over 5% of the GDP.  
4.130.   Table 4.11 below provides the main economic indicators of the construction services sector 
in Switzerland.  
Table 4.11 Construction sector main  economic indicators, 2006, 2011 and 2015  
  2006  2011  2015  
Gross value added (% of total economy)  4.87 5.15 5.35a 
Services exports (% of commercial export services)  1.73 1.41 1.01 
Services imports (% of commercial import services)  0.81 0.68 0.48 
Turnov er (SwF billion)  
  Construction  16.37  19.70  18.38  
  of which:  
   Building  8.96 9.46 9.06 
   Civil engineering  7.41 10.24  9.32 
Number of new dwellings  41,989  47,174  48,000b 
Number of full -time equivalent workers of which:  81,400  82,400  78,100  
  Swiss (% of total)  44.23  44.30  45.20  
  Foreigners (% of total)  55.77  55.70  54.80  
a 2014 provisional data.  
b Estimates.  
Source:  Swiss statistics. Viewed at: http://www.bfs.ad min.ch/bfs/portal/en/index/themen/04/02/02.html  
(28 September 2016); and Société Suisse des Entrepreneurs, facts and figures (2008, 2013, and 
2015). Viewed at: http://www.baumeister.ch/fr/politik -kommunikation/economie/faits -et-chiffres/  
(28 September 2016).  
4.131.   The regulatory access regime for construction services in Switzerland is fairly liberal . 
Box 4.17 below describes the main regulatory features of the constru ction services sector in 
Switzerland.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Box 4.17 Regulatory framework for construction services  
GATS commitments  
- For 3.A (general construction work for buildings), 3.B (general construction work for civil engine ering), 3.D 
(building completion and finishing work) and 3.E (other construction and related engineering services): for both 
market access and national treatment: mode 1 unbound due to lack of technical feasibility, modes 2 and 3 
none  
- For 3.B (installat ion and assembly work): for market access: mode 1 unbound due to lack of technical 
feasibility, modes 2 and 3 none; for national treatment: mode 1 unbound due to lack of technical feasibility, 
mode 2 none, modes 3 and 4 unbound for installations in the are a of energy, heating, water, communications 
and elevators  
FTAs commitments  
For positive listing agreements  (EFTA -Colombia, EFTA -Korea, EFTA -Singapore, EFTA -Ukraine, Switzerland -
China)  
- For 3.A (general construction work for buildings), 3.B (general con struction work for civil engineering), 
3.D (building completion and finishing work) and 3.E (other construction and related engineering services): for 
both market access and national treatment: mode 1 unbound due lack of technical feasibility, modes 2 and 3 
none  
- For 3.B (installation and assembly work): for market access: mode 1 unbound due to lack of technical 
feasibility, modes 2 and 3 none; for national treatment: mode 1 unbound due to lack of technical feasibility, 
mode 2 none, modes 3 and 4:  unbound  for gas, water and electricity meters, gas pipelines, electricity and main 
water lines, which are reserved exclusively to cantons or municipalities or to specific operators  
 
For negative listing agreements   
(EFTA -Hong Kong, China; Switzerland -Japan): no restriction except for two reservations to cover respectively:  
 
- national treatment for existing measures on official certification for construction authorizations and stipulating 
that "applications for construction authorizations may require the signatur e of a natural person registered in 
the Swiss Register of Engineers, Architects and Technicians (REG)"  
- and national treatment and market access for existing and future measures in construction work for 
engineering works; services incidental to mining (l imited to the oil sector) stating that "concession issued by 
cantons is required for the prospecting and exploitation of oil. Cantons may grant such concession on a case -
by-case and discretionary basis. In the Cantons of Zürich, Schwyz, Glarus, Zug, Schaff hausen, Appenzell 
Innerrhoden, Appenzell Ausserrhoden, St. Gallen, Aargau and Thurgau foreign capital participation in an 
enterprise holding such a concession is restricted to not more than 25% (Intercantonal Agreement on the 
prospecting and exploitation o f oil, Article 3). Other cantons apply similar measures.  
 
Qualification : "Switzerland reserves the right to maintain, modify or adopt any measures restricting market 
access and/or national treatment in respect of the prospecting and exploitation of oil.  
 
EU/EFTA providers  
In accordance with the Agreement on the Free Movement of Persons (AFMP), professionals who are legally 
established in the EU/EFTA may provide services in Switzerland without permanently establishing themselves in 
the country. In such cases , the duration of service provision is limited to 90 days per calendar year. If the 
profession they wish to pursue is regulated, which is the case only in the Ticino Canton, they can take 
advantage of a fast -track verification procedure for their professio nal qualifications, as set out in the EU 
Directive 2005/36/EC2 and the DRPA3. The service provision must be declared in advance to SERI4 . 
Applied regime  
The regulatory regime described in the negative listing agreements is applicable erga omnes , regardle ss of the 
nationality of suppliers.  
Licensing, authorization or registration requirements, professional qualification requirements, and 
procedures  (including pre -qualifications)  
 
In the absence of federal legislation in this area, it is up to individual cantons to decide whether to regulate the 
building contractor profession. As it currently stands, this profession is regulated only by the Canton of Ticino . 
In all other Swiss cantons, the building contractor profession is not regulated. Consequently, anyo ne may work 
in this capacity without having to obtain prior recognition of his or her foreign qualifications.  
 
In Ticino , building contractors are the persons primarily responsible for managing and organising the activities 
of a construction company. All w ork on the structure of buildings (main and secondary contract work) is 
regulated and therefore subject to the declaration requirement. The regulated activities  include main and 
secondary contract work (masonry, civil engineering, road construction, etc.),  and, in particular, activities that 
are carried out under the supervision of a civil engineer, an architect or a building contractor. These activities 
also include masonry work, concrete casting and reinforcement, and civil engineering work for the constr uction 
of roads, bridges and railways. Less extensive work is not regulated and may be performed regardless of the 
canton, i.e. without any verification of professional qualifications.  
 
 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  At the federal level,  in all cases, persons intending to provide serv ices must also register with the State 
Secretariat for Migration (www.sem.admin.ch , CH-EU/EFTA registration procedure) and follow the registration 
procedure for short -term work in Switzerland : https://meweb.admin.ch/meldeverfahren . 
This obligation also applies to non -regulated professions.  
Source:  Information provided by the authorities.  
4.3.6   Health and social services "cluster"  
4.132.   Under this heading the following sec tors and subsectors will be described : firstly health 
services lato sensu,  i.e. medical and dental services (MTN.GNS/W/120 item 1.A.h, CPC 9312) and 
private -hospital services (part of MTN.GNS/W/120 item 8.A, part of CPC 9311), and second ly 
social services (MTN.GNS/W/120 item 8.C, CPC 933) and of CPC 8121).  
4.3.6.1   Health services  
4.133.   Table 4.12 provides the main indicators of the human health sector in Switzerland.  
Table 4.12 Human health activities sector, 2006, 2011 and  2014 -15 
  2006  2011  2014  2015  
Gross value added (% of total economy)  4.63 4.85 5.26a .. 
Employment in the sector (% of total)b 6.0 6.5 6.8c 7.0 
Health expenditure per capita, PPP (constant 2011 
international, US$)  4,268  5,819  6,468  .. 
Health expenditu re, total (% of GDP)  10.39  11.21  11.66  .. 
Health expenditure, private (% of GDP)  4.25 3.91 3.96 .. 
Health expenditure, public (% of total health expenditure)  59.12  64.22  66.00  .. 
Out-of-pocket health expenditure (% of total expenditure on 
health)  30.79  26.41  26.80  .. 
Physicians (per 1,000 people)  3.86 3.92 4.22 4.29 
Swiss  .. .. .. 2.9 
Foreigners  .. .. .. 1.4 
Hospital beds (per 1,000 people)  5.4 4.9 4.6 .. 
Life expectancy at birth, total (years)  81.49  82.70  82.85  .. 
Mortality rate, infant (per 1,000  live births)  4.20 3.80 3.50 3.4 
Nurses and midwives (per 1,000 people)  14.54  16.6 17.56  .. 
.. Not available.  
a Provisional.  
b Based on full -time equivalent jobs (4th quarter for each year).  
c Full-time employment in category 87 ( Heime  = incl. nursing ho mes) is not included. This category, 
however, also partly contains employees working in the health sector. Therefore, the effective 
percentage would be higher.  
Source:  Federal Statistical Office. Viewed at: 
http://www.bfs.admin.ch/bfs/portal/en/index/themen/06/02/blank/data.html  (28 September 2016); 
and http://www.bfs.admin.ch/bfs/portal/en/i ndex/themen/04/02/02.html  (28 September 2016); 
Population: Federal Statistical Office. Viewed at: 
https://www.bfs.admin. ch/bfs/de/home/statistiken/bevoelkerung/stand -
entwicklung/bevoelkerung.assetdetail.161714.html%20  (8 November 2016) ; 
 Physicians: Swiss Medical Association ( professionally active physicians). Viewed at: 
http://www.fmh.ch/services/statistik.html  (8 November 2016);  
 Nurses: OECD Data. Viewed at: https://data.oecd.org/healthres/nurses.htm  (8 November 2016); 
and World Bank World Development Indic ators. Viewed at: 
http://databank.worldbank.org/data/reports.aspx?source=world -development -indicators  
(28 September 2016).  
4.3.6.1.1   Medical professions  
4.134.   Medical pr ofessions are governed by  a common regulatory regime based on a non -
discriminatory economic needs test regime administered at cantonal level and geared at providing 
universal access to health services at an acceptable cost for the social security system. T his 
regime is partially reflected in Switzerland's  FTA commitments. According to the Swiss Medical 
Federation, in 2015, there were 35,325 doctors in activity in Switzerland; 18,128 of which in the WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 147 - 
 
  ambulatory sector; 25.9% of the ambulatory doctors are of f oreign nationality, while this 
percentage stands at 37.5% in the hospital sector; 56% of the ambulatory doctors practice in 
individual cabinets while the remaining 44% practice in double or collective cabinets.  
4.135.   Table 4.13 describes in more detail the numb er of physicians and its evolution in 
proportion to the population.  
Table 4.13 Number of physicians and its evolution, 2010 -15 
 Practising 
physicians  Professionally 
active physicians  Population  Practising 
phys icians  Professionally 
active physicians  
  Number  Number  Number  Rate per 1,000  Rate per 1,000  
Years  (head count)  (head count)        
2010             29,803              30,273        
2011             30,327              30,849         7,870,134                  3.85                  3.92  
2012             31,313              31,858         7,954,662                  3.94                  4.00  
2013             32,681              33,242         8,039,060                  4.07                  4.14  
2014             33,785              34,348         8,139,631                  4.15                  4.22  
2015             34,762              35,325         8,237,666                  4.22                  4.29  
Source:  Information provided by the author ities. 
4.136.   Box 4.18 below describes the regulatory framework for medical and dental services in 
Switzerland.  
Box 4.18 Regulatory framework for medical services in Switzerland  
GATS commitments  
For market access : mode s 1 and 2: none; modes 3 and 4: unbound  
For national treatment : modes 1 and 2: none; modes 3 and 4: Swiss nationality necessary to practise 
independently  
FTAs commitments  
For positive listing agreements:  EFTA-Colombia; EFTA -Korea; EFTA -Singapore; EFTA -Ukraine; Switzerland -
China): same as GATS commitments  
 
For negative listing agreements:  (EFTA -Hong Kong, China; Switzerland -Japan): no restrictions except for three 
reservations:  
 
- One to national treatment and market access for the following existing measu res: 
 
-- The number of service suppliers admitted to practice on account of the compulsory medical and health 
insurance is limited per canton and per occupation (quantitative ceiling). Cantons may exclude any further 
admission if the density of service sup pliers in the canton is above the regional or the national average 
(RS 832.10, Article 55a and RS 832.103, all articles).  
 
-- Swiss nationality is required to practice a medical profession independently. However, a foreign natural 
person may exercise the m edical profession in a practice provided the practice is located in a region where the 
number of professionals is proven to be insufficient (economic needs test), and if its diploma is recognized as 
equivalent and the foreign natural person speaks a nation al language. Moreover, a foreign natural person may 
be allowed to independently practice a medical profession in a specific hospital if that person is allowed to teach 
within accredited course programmes in that hospital, and if his or her diploma is recog nized as equivalent. 
(RS 811.11, Articles 2, 12, 15, 34, 36; RS  811.112.0, Article 14). Foreign persons with Swiss diplomas can 
practice independently . However, regardless of nationality, only doctors with post -diploma professional 
experience in a recogni zed Swiss institute can practice independently and without being subject to quantitative 
limits on account of the compulsory medical and health insurance (LAMal 55a) . 
 
- One to national treatment and market access for existing (and, at cantonal level, futu re) measures regarding 
blood collection and storage whereby at federal level collecting human blood from donors for transfusion, for 
the manufacture of therapeutic products, or for supply to a third party, including the import of blood products, 
is subject  to authorization. Only juridical persons domiciled in Switzerland and registered in a cantonal 
Commercial Register as well as natural persons residing in Switzerland may be granted such authorization 
(RS 812.21, Articles 2, 10 and 34) and at cantonal leve l authorization issued by the cantons is required for 
operating establishments such as hospitals which do not collect, but stock blood or blood products (RS 812.21, 
Article 34). Cantons have and may maintain measures restricting market access and/or nation al treatment.  
 
- And one to national treatment and market access for maintaining, modifying or adopting any measures 
restricting market access and/or national treatment with respect to human health, veterinary, social services or WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  intermediation services re lating to social services, as well as related retailing services.  
EU/EFTA providers : In accordance with the Agreement on the Free Movement of Persons (AFMP), professionals 
who are legally established in the EU/EFTA may provide services in Switzerland witho ut permanently 
establishing themselves in the country. In such cases, the duration of service provision is limited to 90 days per 
calendar year. If the profession they wish to pursue is regulated, they can take advantage of a fast -track 
verification proced ure for their professional qualifications, as set out in the EU Directive 2005/36/EC2 and the 
DRPA.a The service provision must be declared in advance to the State Secretariat for Education Research and 
Innovation  (SERI).  
Applied regime  
The negative listi ng FTA commitments correspond to the applied regime erga omnes  as, regardless of 
nationality, only doctors with post -diploma professional experience in a recognized Swiss institute are not 
subjected to quantitative limits.  
The number of service suppliers a dmitted to practice on account of the compulsory medical and health 
insurance is limited per canton and per occupation (quantitative ceiling). Cantons may exclude any further 
admission if the density of service suppliers in the canton is above the regional  or the national average (RS 
832.10, Article 55a and RS 832.103, all articles).  
From 2013 to 2016, 18 out of 26 cantons applied article 55a LaAMal, and 8 cantons chose not to apply the 
limitation. For the period from 2016 to 30 June 2019, 8 cantons (Aargau , Appenzell Innerrhoden, Appenzell 
Ausserrhoden, Fribourg, Grisons, Jura, Zug, and Zurich) decided not to reintroduce the limitation.  
In these cantons, medical professionals can practice their medical profession independently, even if they do not 
have the necessary 3 -year-professional experience in a recognized Swiss institute (here also, the nationality of 
the medical professional does not matter).  
Qualification requirements and recognition procedures  
UE/EFTA providers : Medical professions fall within the  scope of  the Agreement of 21 June 1999 on the Free 
Movement of Persons (AFMP) which allows citizens of EU/EFTA countries to seek recognition of their 
professional qualifications if they are fully qualified, in their country of origin, to work in this prof ession in 
question. The AFMP refers to its Annex III to Directive 2005/36/EC on the recognition of professional 
qualifications. For medical, dental and veterinary medicine as well as for pharmacy the recognition is based on 
sectoral agreements (so -called " automatic recognition"). The EU Directive sets notably the minimum 
requirements for education and spells out explicitly in its annexes the diplomas that must be recognized. The 
competent authority for recognition is the MEBEKO (Federal Commission of Medica l Professions)  
 
Other providers : as a general rule, Switzerland does not recognize medicine diplomas delivered outside the UE 
and EFTA. It is however possible for a foreign doctor to obtain a Swiss federal diploma by taking the Swiss 
exam, regardless of h is/her nationality. The academic training section of the Federal Commission of Medical 
Professions (MEBEKO) decides if the applicant fulfils the admission conditions of the federal exam and if the 
applicant must undertake all or part of the exam based on t heir background and professional experience.  
a Federal Act of 14 December 2012 on the Declaration Requirement and the Verification of Service 
Provider Qualifications in Regulated Professions, RS 935.01.  
Source:  Information provided by the authorities.  
4.3.6.1.2   Hospital services  
4.137.   Hospitals, public or private , are also subject to a non -discriminatory economic needs test 
regime administered at cantonal level and geared at providing universal access to health services 
at an acceptable cost for the social security system . In addition , the Swiss health insurance law 
(KVG) gives the Swiss cantons the possibility of financ ing hospitals with a global budget , a 
procedure which amounts to a limitation of the total value of services transactions provided. Three 
cantons (Geneva, Ticino and Vaud) use this instrument so far.  
4.138.   There are no limitations regarding hospital s and hospital treatment not reimbursed by the 
Swiss social security system , such as aesthetical surgery.  
4.139.   The only foreign -owned hospital/clinic services operator exerc ising in Switzerland is the 
Privatklinikgruppe Hirslanden , which currently runs 16 hospitals/clinics and whose number of beds 
operated is shown in  Table 4.1 4 below. Since 2007, the hospital group has been  owned by 
Mediclinics International from South Afric a. WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table 4.14 Number of beds operated by the Privatklinikgruppe Hirslanden, 2012 -16 
 2012  2013  2014  2015  2016  
Number of beds  1,479  1,487  1,567  1,655  1,680  
Source:  Information provided by the authorities.  
4.140.   Box 4.19 below describes this applied regime in more detail as well as Switzerland's FTA 
commitments regarding hospital services.  
Box 4.19 Regulatory framework for hospital services in Switzerland  
GATS commitments  
No commitments  
FTAs commitments  
For positive listing agreements  (EFTA -Colombia; EFTA -Korea; EFTA -Singapore; EFTA -Ukraine; Switzerland -
China): no commitments  
For negative listing agreements  (EFTA -Hong Kong, China; Switzerland -Japan): no restrictions for th e three 
categories ( medical and dental services/services provided by midwives, nurses, physiotherapists and 
paramedical personnel, and other human health services ) except for two reservations:  
- One to national treatment and market access for the following  existing measures:  
-- The number of service suppliers admitted to practice on account of the compulsory medical and health 
insurance is limited per canton and per occupation (quantitative ceiling). Cantons may exclude any further 
admission if the density of service suppliers in the canton is above the regional or the national average 
(RS 832.10, Article 55a and RS  832.103, all articles).  
-- Swiss nationality is required to practice a medical profession independently. However, a foreign natural 
person may e xercise the medical profession in a practice provided the practice is located in a region where the 
number of professionals is proven to be insufficient (economic needs test), and if its diploma is recognised as 
equivalent and the foreign natural person sp eaks a national language. Moreover, a foreign natural person may 
be allowed to independently practice a medical profession in a specific hospital if that person is allowed to teach 
within accredited course programmes in that hospital, and if his or her dip loma is recognized as equivalent (RS 
811.11, Articles 2, 12, 15, 34, 36; RS 811.112.0, Article 14).  
- And one to national treatment and market access for maintaining, modifying or adopting any measures 
restricting market access and/or national treatment wi th respect to human health, veterinary, social services or 
intermediation services relating to social services, as well as related retailing services.  
Applied regime  
The negative listing FTAs commitments correspond to the applied regime erga omnes  as, regardless of 
nationality, only doctors with post -diploma professional experience in a recognized Swiss institute are not 
subjected to quantitative limits. According to Article 39 KVG, the Swiss Cantons have to establish a list of 
hospitals eligible to provid e medical services paid by the health insurance (reimbursement of in -patient hospital 
services is co -financed by the health insurance and by the cantons). The number of service providers has to be 
in line with demand/the services needed in order to ensure access of the population to in -patient care.  
Articles 39 and 49 a KVG are applicable to all service providers regardless of their nationality or of the 
nationality of their owners.a 
Furthermore, Article 51 KVG gives the Swiss Cantons the possibility to fina nce hospitals with a global budget. 
Currently, 3 out of 26 cantons (Geneva, Ticino and Vaud) use the instrument of hospital financing by global 
budget. Most global budgets are determined on the basis of the predicted quantity of services. If a hospital 
exceeds predicted quantity, reimbursement is limited to marginal cost of services. If applied, the measure is 
applicable to all service providers regardless of their nationality or of the nationality of their owners.   
Licensing procedures for hospitals and c linics including foreign -owned ones  
The establishment of a hospital requires a cantonal authorization. Furthermore, the cantons are responsible for 
examining whether sanitary rules and regulations are being complied with.  
Article 39 of the Swiss Health In surance Law (KVG) lists the following prerequisites which hospitals must fulfil 
in order to be able to provide services covered by the health insurance: guarantee of sufficient medical care, of 
necessary and skilled personnel, of appropriate medical equipm ent and of appropriate pharmaceutical 
provision . 
a For further information, see the cantonal hospital lists (online information of the Swiss Cantonal 
Health Care Directors). Viewed at: http://www.g dk-cds.ch/index.php?id=624&L=1  (available only in 
French and German); and the text of the Swiss Health Insurance Law (KVG). Viewed at: 
https://www.admin.ch/opc/fr/classi fied-compilation/19940073/index.html  (available only in French, 
German and Italian).  
Source:  Information provided by the authorities.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  4.3.6.2   Social services  
4.3.6.2.1   Overview  
4.141.   Residential care and social work activities represented 2.32% of the gross value added of 
the Sw iss economy in 2014 and 5.24% of employment  in 2015.67 Social services (with or without 
accommodation) are normally regulated at cantonal or municipal level. In some cases federal 
legislation does also apply, regarding surveillance, quality of services or f inancing (e.g. childcare 
services, shelter for disabled  children and placement of children out of family) or through decisions 
of the Social Insurance Institution (granting of benefits or any measures). Service providers are 
either public agencies, semi -public entities or private organizations, and they can coexist. They 
operate with a level of competition that varies greatly from one canton to another, or from one 
sector to another, and different philosophies prevail. But th ese kinds of services are closel y 
supervised due to the interests to be protected and they are not very appealing to profit 
organizations because of limited earnings prospects, if any, and the complexity of requirements.  
4.142.   Most of the private organizations are non -profit organized, as a re sult of the policy of 
conditional subsidies followed by cantons and municipalities. Three legal forms are compatible with 
non-profit business , but services can also be provided on a profit basis with some exceptions 
depending on the cantons. And in some ca ses individuals or families can benefit from financial aid 
regardless of the provider, subsidized or unsubsidized. In terms of staff and management, having 
appropriate qualifications is a prerequisite to obtain ing the necessary authorizations as a service 
provider.  
4.143.   According to the authorities and b ased on information available at federal level, it can be 
said that these conditions apply to both national and foreign service providers.  
4.3.6.2.2   Retirement houses and medicalized homes  
4.144.   Among social services, the only  subsector that has real trade relevance, essentially 
through foreign investment/mode 3, is that of private retirement houses and medicalized homes. 
The other types of social services (e.g. residential care activities, establishments for disabled 
persons  and for psychosocial problems) are essentially of a no t-for-profit nature and are 
domestically owned, managed and provided.  
4.145.   There were in total 1,575 retirement houses and medicalized homes in Switzerland in 
2014, 460 of which were  public, 480 were private  but publicly subsidized (i.e. benefitting from 
guaranteed subsidies based on running cots or investment costs and /or from a guaranteed 
coverage of the exploitation deficit) and 635 were purely private. As illustrated by the table below 
public retirement h ouses tend to prevail in the western part of the country while private 
establishments dominate in the eastern part  (Table 4.15) . 
Table 4.15 Number of institutions by legal/economic status and sector, 2014  
Canton Retirement houses and medicalized homes  
Public  Subsidized private  Private  Total  
ZH 105 45 90 240 
BE 55 78 177 310 
LU 44 4 15 63 
UR 5 2 3 10 
SZ 18 4 9 31 
OW 1 1 5 7 
NW 1 2 4 7 
GL 7 .. 1 8 
ZG 4 5 8 17 
                                                
67 Swiss statistics. Viewed at: 
http://www.bfs.admin.ch/bfs/portal/en/index/themen/0 6/02/blank/data.html  [28 September 2016];  
http://www.bfs.admin.ch/bfs/portal/en/index/themen/04/02/02.html  [28 September 2016].  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Canton Retirement houses and medicalized homes  
Public  Subsidized private  Private  Total  
FR 24 18 3 45 
SO 9 8 31 48 
BS 6 15 13 34 
BL 2 8 21 31 
SH 11 2 4 17 
AR 16 3 10 29 
AI 3 .. 1 4 
SG 63 9 42 114 
GR 15 25 13 53 
AG 15 11 74 100 
TG 10 9 33 52 
TI 26 29 6 61 
VD 2 115 16 133 
VS 6 36 2 44 
NE 2 5 50 57 
GE 5 44 .. 49 
JU 5 2 4 11 
CH 460 480 635 1,575  
.. Not available.  
Source : Swiss Federal Statistics Office, Statistique des institutions médico -sociales 2014 , Santé, 
14 March  2016.  
4.146.   In total , these three types of establishment offer 100,000 beds and employ 48,000 
persons, a significant number  of which of foreign origin. There is no data available on the number 
of beds and on employment by type of establishment. Forecasts68 predict the creation of 50,000 
additional beds by 2040 as well as of 23,000 new full -time jobs in the sector by the same date. 
The market is relatively concentr ated and moving  towards the high end of the market, implying 
that some customers have to mobilize savings in addition to their pension to be able to afford such 
service s. The market is open and internationalized: while its leader, Swiss Prime Site, a real estate 
company, is Swiss and has recently taken over two Swiss operators Tertianum and Boas Yakhin ; 
its number 2 Senevita belongs to Orpea , a French company, n umber  2 on the European market ; 
its number 3 Seniocare to the Austrian company Senecura ; its numb er 4 is the French company 
Korian Medica which is also the European leader ; while its number 5 is Credit Suisse Real estate 
Fund Living Plus, a Swiss real estate company.  
4.3.7   Air transport services  
4.147.   Box 4.20 below describes the main regulatory and economic char acteristics of the air 
transport services sector in Switzerland while Table 4.1 6 details the features of the bilateral air 
services agreement s signed or modified by Switzerland and entered into force during the period 
under review.  
                                                
68 Business Scoot "le marché des maisons de re traite médicalisées en Suisse", October 2016.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Box 4.20 Switzerland's market and regulatory regime for air transport subsectors, 2016  
Computer reservation services  
General regulatory framework : there is no regulation granting a monopoly or prescribing the compulsory use 
of a CRS s upplier. Switzerland applies EC Regulation 80/2009a 
Economic characteristics : all CRS providers may operate as long as they comply with EU Regulation 80/2009. 
This does not imply that they have a local branch established  
Selling and marketing of air tran sport services  
General regulatory framework:  there are no specific regulations (including foreign exchange controls) 
preventing or limiting the sale by foreign airlines of their own tickets through whatever channel (online, 
airports counters, city offices) . This is not affected by individual provisions of bilateral agreements  
Aircraft repair and maintenance  
General regulatory framework : no specific limitations on the establishment of foreign providers  
Number of certified repair stations : 84 certified by t he European Aviation Safety Agency (EASA); 10 of them 
are also certified by the Federal Aviation Administration and 4 by TCCA Canada  
Ground handling services  
General regulatory framework : Switzerland applies EC Regulation 97/67b 
Bilateral agreements may c ontain clauses granting specific rights to the carriers of the countries concerned  
Main providers : Zurich: Swissport, Dnata, and Airline Assistance Switzerland for passenger handling; Dnata 
and Cargologic for cargo handling (all Swiss companies or branche s); Geneva: Swissport, Dnata for 
passenger and cargo handling (all Swiss companies or branches)  
Airport management services  
General regulatory framework : concessioned airports are managed by public or private entities (even for 
private entities, the major ity of the capital may be in public hands)  
Economic characteristics : international airports (with line and charter traffic) are: Zurich (passengers: 
26,294,317; cargo tonnes: 291,082); Geneva (passengers: 15,694,603; cargo tonnes: 32,806); Basel 
(passenge rs: 7,052,113; cargo tonnes: 48,977); Berne (passengers: 175,121); Lugano (passengers: 
156,435; cargo tonnes: 57); Altenrhein (passengers: 91,976); and Sion (passengers: 6,660). Total domestic 
traffic 655,303 passengers (start from departure airport and ar rival at destination airport count as 
1 passenger)c 
Commercial aviation  
General regulatory framework:  
National establishment rules : in line with EU Regulation 1008/2008d 
Cargo : no specific policy  
Charter : Switzerland applies EC Regulation 1008/2008e, thus  charter traffic is not discriminated and is based 
on the principle of reciprocity. Low -cost carriers do operate from Switzerland  
Domestic traffic : Domestic traffic is limited in principle to Swiss operators unless it has been agreed 
otherwise in the bilat eral ASA: Such an opening has been negotiated but not finalized between Switzerland 
and EU  
Slot allocation : in line with EU Regulation 96/97f 
a Viewed at: http://eur -lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009: 035:0047:0055: 
EN:PDF . 
b Viewed at: http://eur -lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX :31997L0067:en:NOT . 
c All figures 2015, general aviation not included.  
d Viewed at: http://eur -lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:293: 
0003:0020:en:PDF . 
e Viewed at: http://eur -lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:293:0003: 
0020:en:PDF . 
f Viewed at: http://eur -lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31996L0097:EN:HTML . 
Source:  Information provided by the Swiss authorities.  
4.148.   These agreements are all extremely liberal and go  beyond traditional so -called open skies 
agreement s, in particular due to the presence of the principal place of business clause for 
withholding, which corresponds to the peculiar situation of Swiss, which is majority foreign owned. 
One can note that this liberal policy is a general policy since the geographical partners concerned 
are very diverse.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table 4.16 Switzerland's air transport agreements69 concluded or modified between 
January 2012 and December 2015  
Partner  Date  Entry into 
force  
5tha 
7thb 
Cabotagec 
Coopd 
Designatione 
Withholdingf 
Pricingg 
Capacityh 
Stati 
ALI 
Japan (modified)  23/07/13  05/02/14  Y N N Y M PPoB FP FD no 38 
Mauritius (new)  05/05/15  01/08/15  Y N N Y M PPoB DD FD no 36 
New Zealand (modifie d) 19/11/14   27/07/15  Y N N Y M PPoB DD FD no 36 
Saudi Arabia, Kingdom 
of (new)  04/07/09   05/02/15  N N N Y M PPoB DD FD no 36 
Serbia (modified)  15/04/15  08/12/15  N N N Y M PPoB DD FD no 36 
a Fifth freedom: "Y" granted, "N" not granted.  
b Seventh freedom : "Y" granted, "N" not granted.  
c Cabotage: Y" granted, "N" not granted.  
d Cooperation clause (e.g. allowance of code share): "Y" present, "N" absent.  
e Designation: "S" single, "M" multiple.  
f Witholding: "PPOB" principal place of business, "SOEC" substan tial ownership and effective control; 
"COI" community of interest  
g Pricing: "DD" dual disapproval, "FD" free determination, "DA" double approval, "COO" country of 
origin, "ZP" zone pricing.  
h Capacity clause: "PD"  Pre Determination; "B1" Bermuda I, "FD" Free determination, "O" other, "n/a" 
not available.  
i A "no" indicates that an exchange of statistics is not foreseen by the agreement.  
Source:  Information provided by the authorities.  
4.149.   Another significant recent development regarding Switzerland's  bilatera l air transport 
relationship  with the EU  are the negotiations initiated in November 2011 to complement the 1999 
EU–Switzerland bilateral air transport agreement and to grant mutually eighth and ninth freedom 
i.e. cabotage right. While these negotiations en ded positively in a consensus , the implementation 
of their results were suspended by the EU following the 9 February 2014 vote against mass 
immigration and conditioned by the EU to the conclusion of an agreement on institutional 
questions and on a coupling  of the respective emission trading schemes of EU and of Switzerland, 
two questions so far unresolved.  
 
                                                
69 The term " air transport agreements" is used here to refer to air services agreements, memoranda of 
understanding, exchange of notes, and other such relevant instruments.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by product group, 2012 -15 
  2012  2013  2014  2015  
Total (SwF million)  200,612.3  201,213.3  208,357.4  202,918.9  
 (% of total)  
Forestry and agricu ltural products, fisheries  4.3 4.6 4.5 4.5 
Food, beverages and tobacco  3.8 4.1 4.0 4.0 
Feeding stuffs for animals  0.1 0.1 0.1 0.1 
Live animals  0.0 0.0 0.0 0.0 
Horticultural products  0.0 0.0 0.0 0.0 
Forestry products (not firewood)  0.3 0.3 0.3 0.2 
Products for commercial/industrial further processing 
such as oils, fats, starches, plants and vegetable parts, 
etc. 0.1 0.1 0.1 0.1 
Energy source  3.4 1.7 1.5 1.3 
Solid combustibles  0.0 0.0 0.0 0.0 
Petroleum and distillates  0.4 0.5 0.4 0.3 
Gas 0.0 0.0 0.0 0.0 
Electrical energy  3.0 1.2 1.1 1.0 
Textiles, clothing, shoes  1.6 1.5 1.5 1.6 
Textiles  0.7 0.7 0.7 0.7 
Articles of apparel and clothing  0.7 0.7 0.6 0.7 
Shoes, parts and accessories  0.2 0.2 0.2 0.2 
Paper, articles of paper and products of the print ing 
industry  1.1 1.1 1.0 0.9 
Basic materials for paper production, such as cellulose 
and cellulose fibre and paper and carton waste  0.1 0.0 0.0 0.0 
Paper and carton in rolls, strips or sheets  0.5 0.4 0.4 0.4 
Goods from paper or carton  0.3 0.3 0.3 0.3 
Products of the printing industry  0.3 0.3 0.2 0.2 
Leather, rubber, plastics  2.1 2.2 2.1 2.0 
Leather  0.2 0.2 0.2 0.2 
Rubber  0.2 0.2 0.2 0.2 
Plastics  1.6 1.7 1.7 1.6 
Products of the chemical and pharmaceutical 
industry  39.4 40.2 41.0 41.7 
Chemical raw m aterials, basic materials and unformed 
plastics  3.1 2.8 2.9 2.9 
Chemical end products, vitamins, diagnostic products, 
including active substances  36.3 37.4 38.1 38.8 
Pharmaceuticals, vitamins, diagnostics (incl. active 
substances)  32.0 33.1 34.0 34.7 
Stones and earth  0.4 0.4 0.4 0.4 
Mineral raw materials and basic products  0.0 0.0 0.0 0.0 
Goods from stone and cement  0.1 0.1 0.1 0.1 
Ceramic wares  0.0 0.0 0.0 0.0 
Glass  0.3 0.3 0.3 0.3 
Metals  5.9 6.0 6.0 5.8 
Iron and steel  0.6 0.6 0.6 0.5 
Non-ferrous  metals  1.0 1.0 1.0 1.0 
Metal goods  4.3 4.4 4.4 4.3 
Machines, appliances, electronics  16.6 16.6 16.0 15.3 
Industrial machinery  9.8 9.8 9.7 9.2 
Non-electrical engines  1.2 1.3 1.3 1.1 
Mechanical engineering  8.4 8.4 8.2 7.9 
Agricultural machines  0.1 0.1 0.1 0.1 
Household appliances  0.5 0.5 0.4 0.5 
Office machines  0.4 0.4 0.4 0.4 
Electrical and electronic industry appliances and devices  5.7 5.7 5.2 5.0 
Military equipment  0.2 0.2 0.2 0.2 
Vehicles  2.5 2.6 2.7 2.9 
Road vehicles  1.1 1.1 1.1 1.1 
Railed vehicles  0.5 0.6 0.5 0.5 
Air and spacecraft  1.0 0.9 1.1 1.3 
Watercraft  0.0 0.0 0.0 0.1 
Precision instruments, clocks and watches and 
jewellery  22.0 22.5 22.6 23.0 
Precision instruments and equipment  7.1 7.3 7.0 7.1 
Watches  10.7 10.9 10.7 10.6 
Jewelle ry and household goods made from precious 
metals  4.2 4.4 4.9 5.3 
Jewellery  3.8 4.2 4.8 5.3 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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    2012  2013  2014  2015  
Various goods such as music instruments, home 
furnishings, toys, sports equipment, etc.  0.7 0.7 0.7 0.6 
Exposed film  0.0 0.0 0.0 0.0 
Music instruments  0.0 0.0 0.0 0.0 
Home furnishings  0.4 0.4 0.4 0.4 
Toys and sports equipment  0.1 0.1 0.1 0.0 
Stationery goods  0.1 0.1 0.1 0.1 
Various goods such as umbrellas, neon signs, festive 
articles, brushes, lighters, pipes, etc.  0.1 0.1 0.1 0.1 
Note:  Calculations based on  total "business cycle" (total 1) without gold bars and other precious metals, 
coin, precious stones and gems, works of art and antiques. Product group is based on nature of 
goods which is a national nomenclature.  
Source:  WTO Secretariat calculations, ba sed on Swiss -Impex database of the Swiss Federal Customs 
Administration. Viewed at: https://www.swiss -impex.admin.ch/index.xhtml  (30 September 2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A1. 2 Merchandise exports by destination, 2012 -15 
 2012  2013  2014  2015  
Total (SwF million)  200,612.3  201,213.3  208,357.4  202,918.9  
 (% of total)   
Americas  15.9 16.6 17.3 18.4 
 United States  11.1 11.6 12.4 13.5 
 Other America  4.8 5.1 4.9 4.9 
 Canada  1.5 1.6 1.6 1.6 
 Brazil  1.2 1.1 1.0 1.0 
Europe  57.2 56.6 56.4 55.2 
 EU-28 55.6 54.9 54.8 53.7 
 Germany  19.9 18.7 18.5 18.1 
 France  7.1 7.0 7.2 6.8 
 Italy 7.2 7.2 6.6 6.3 
 United Kingdom  4.4 4.4 4.8 5.8 
 Austria  2.9 3.0 3.0 2.8 
 Spain  2.7 2.6 2.8 2.6 
 Belgium 2.3 2.6 2.7 2.6 
 Netherlands  2.6 2.7 2.5 2.3 
 Poland  0.9 1.0 1.1 1.0 
 EFTA 0.5 0.5 0.5 0.4 
 Other Europe  1.1 1.2 1.1 1.1 
 Turkey  0.9 1.0 0.9 0.9 
Commonwealth of Independent States (CIS)  2.1 2.2 1.9 1.5 
 Russian Federation  1.5 1.5 1.3 1.1 
Afric a 1.7 1.8 1.8 1.6 
Middle East  4.3 4.4 4.5 5.0 
 United Arab Emirates  1.4 1.3 1.5 1.5 
 Saudi Arabia, Kingdom of  1.0 1.1 1.1 1.4 
Asia 18.9 18.4 18.1 18.3 
 China  3.7 4.1 4.2 4.4 
 Japan  3.4 3.0 3.0 3.1 
 Other Asia  11.7 11.3 10.9 10.7 
 Hong Kong, China  3.5 3.3 3.3 2.8 
 Singapore  1.8 1.8 1.5 1.7 
 Korea, Republic of  1.2 1.3 1.3 1.3 
 Australia  1.2 1.2 1.1 1.1 
 India 1.3 1.0 0.8 0.9 
Other  0.0 0.0 0.0 0.0 
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious me tals, 
coin, precious stones and gems, works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the Swiss Federal Customs 
Administration. Viewed at: https://www.swiss -impex.admin.ch/index.xhtml  (30 September 2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A1. 3 Merchandise imports by product group, 2012 -15  
  2012  2013  2014  2015  
Total (SwF million)  176,781.1  177,642.1  178,604.7  166,392.1  
 (% of total)  
Raw ma terials and semi -finished products  23.2 23.3 23.2 22.5 
Raw materials  0.9 0.9 0.9 0.9 
Semi-finished and intermediate products  22.2 22.3 22.3 21.6 
Food industry  1.5 1.5 1.6 1.6 
Other products for industry and manufacturing  20.5 20.6 20.5 19.8 
Chemical s emi-finished and intermediate products  5.8 5.9 5.8 5.4 
Metal -based  4.6 4.6 4.6 4.4 
Electrical and electronic  2.3 2.3 2.2 2.2 
Machines and appliances  0.4 0.5 0.5 0.5 
Plastic semi -finished products and intermediate 
products  1.8 1.9 1.9 1.8 
Watch compone nts 1.2 1.1 1.1 1.1 
Other  4.4 4.4 4.4 4.3 
Energy sources  9.9 8.1 6.7 5.1 
Crude oil and basic products  1.6 2.2 2.1 0.8 
Motor fuels  3.9 3.3 2.6 2.3 
Thermal fuels  1.4 1.4 1.0 0.9 
Electrical energy  3.0 1.2 1.0 1.1 
Capital goods  22.7 23.5 23.7 24.3 
Machines and appliances  17.6 18.4 18.6 18.8 
Power generators (excl. vehicle engines)  2.0 2.0 2.0 2.0 
Production machines  2.2 2.4 2.4 2.4 
Work machines and equipment  5.5 5.6 5.8 5.7 
Machines and appliances for building outfitting  1.2 1.2 1.2 1.3 
Machines a nd appliances for the service sector  6.7 7.1 7.1 7.5 
Commercial vehicles  2.8 2.6 2.6 3.0 
Building requisites goods  2.3 2.5 2.5 2.4 
Consumer goods  44.2 45.2 46.4 48.1 
Food, beverages and tobacco  4.3 4.6 4.6 4.6 
Foodstuffs  3.3 3.5 3.5 3.6 
Beverages and  tobacco  0.9 0.9 0.9 0.9 
Animal feed  0.1 0.1 0.1 0.1 
Non-durable consumer goods other than food and 
beverages  22.1 23.4 24.0 23.7 
Clothing and shoes & bed and other household linen  3.8 3.9 4.0 4.2 
Personal care products, cosmetics, pharmaceutical 
produ cts, etc.  17.3 18.5 19.1 18.6 
Pharmaceutical products (including sanitary articles)  15.5 16.7 17.2 16.8 
Printed matter  1.0 1.0 0.9 0.9 
Consumer durables  17.9 17.3 17.9 19.8 
Home furnishings  2.3 2.3 2.3 2.4 
Household articles  1.0 1.0 1.1 1.1 
Household  appliances  0.4 0.3 0.4 0.4 
Consumer electronics  1.2 1.1 1.0 1.0 
Toys, sports and leisure equipment  0.7 0.7 0.7 0.8 
Vehicles such as cars and motorbikes  6.6 6.0 6.1 6.8 
Timepieces, jewellery and optical goods  5.9 5.8 6.2 7.3 
Musical instruments and ac cessories  0.1 0.0 0.0 0.1 
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals, 
coin, precious stones and gems, works of art and antiques. Product group is based on broad 
economic categories.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the Swiss Federal Customs 
Administration. Viewed at: https://www.swiss -impex.admin.ch/index.xhtml  (30 September 2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A1. 4 Merchandise imports by origin, 2012 -15  
 2012  2013  2014  2015  
Total (SwF million)  176,781.1  177,642.1  178,604.7  166,392.1  
 (% of total)  
Americas  7.1 7.6 8.1 9.0 
 United States  5.2 5.5 6.1 7.0 
 Other America  1.9 2.1 2.0 2.0 
 Mexico  0.5 0.7 0.7 0.7 
Europe  76.9 75.3 74.2 73.5 
 EU-28 76.0 74.3 73.1 72.4 
 Germany  30.6 29.1 28.7 28.2 
 Italy 10.3 10.3 9.9 9.7 
 France  8.5 8.3 8.1 8.0 
 Austria  4.3 4.5 4.8 4.4 
 Ireland  3.8 4.0 4.0 4.2 
 United Kingdom  3.5 3.5 3.6 3.9 
 Netherla nds 3.6 3.3 3.0 3.0 
 Spain  2.8 2.7 2.6 2.6 
 Belgium  2.4 2.2 1.9 1.8 
 Czech Republic  1.2 1.2 1.3 1.4 
 Poland  0.9 0.9 1.0 1.0 
 Sweden  0.7 0.8 0.7 0.7 
 Hungary  0.5 0.6 0.6 0.6 
 EFTA 0.2 0.2 0.2 0.2 
 Other Europe  0.8 0.8 0.9 0.9 
 Turkey  0.6 0.7 0.7 0.8 
Commonwealth of Independent States (CIS)  0.7 1.1 1.0 0.4 
Africa  1.6 2.0 1.7 0.9 
Middle East  0.7 0.7 0.8 0.9 
Asia 12.9 13.3 14.2 15.2 
 China  5.8 6.4 6.8 7.4 
 Japan  2.2 1.8 1.8 1.9 
 Other Asia  4.9 5.1 5.6 5.9 
 Singapore  0.5 0.6 0.7 1.0 
 Hong Kong,  China  0.8 0.8 1.0 0.8 
 India 0.7 0.8 0.8 0.8 
 Chinese Taipei  0.5 0.5 0.5 0.6 
 Viet Nam  0.3 0.4 0.5 0.6 
Other  0.0 0.0 0.0 0.0 
Note:  Calculations based on total "business cycle" (total 1) without gold bars and other precious metals,  
 coin, precious st ones and gems, works of art and antiques.  
Source:  WTO Secretariat calculations, based on Swiss -Impex database of the Swiss Federal Customs 
Administration. Viewed at: https://www.swiss -impex.ad min.ch/index.xhtml  (30 September 2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A1. 5 Liechtenstein's direct imports and exports, 2010 -14  
  Direct imports  Direct exports  
  Million SwF  %age change  Million SwF  %age change  
2010 1,882  2.2%  3,325  7.9%  
2011 1,965  4.4%  3,329  0.1%  
2012 1,852  5.7%  3,368  1.2%  
2013 1,909  2.6%  3,389  0.0%  
2014 2,040  6.9%  3,453  1.9%  
Note:  Excluding trade with Switzerland.  
Source:  Statistical Yearbook of Liechtenstein 2016. Viewed at http://www.llv.li/files/as/jahrbuch -2016.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A1. 6 Trade in services by sector and destination/origin, 2012 -15 
  2012  2013  2014  2015  
Exports (SwF billion)  102.3  105.9  110.9  108.8  
 (% of  total exports)  
By sector      
  Transport  11.4 11.4 11.5 9.8 
  Tourism  14.7 14.7 14.7 14.5 
  Insurance and pension services  6.0 5.9 5.9 5.9 
  Financial services  20.2 19.6 18.1 18.3 
  Licence fees  15.8 16.3 15.1 14.3 
  Telecommunications, computer an d information services  9.3 9.6 11.6 12.1 
  Research and development services  3.3 2.8 3.3 3.6 
  Consulting services  5.3 5.2 5.1 5.1 
  Technical, trade -related, and other business services  6.6 6.5 7.2 8.6 
  Other services  7.4 8.0 7.6 7.7 
By major destin ationsa     
  EU-28 35.2 35.8 35.7 35.6 
     of which:      
     Germany  8.6 8.8 9.2 9.0 
     United Kingdom  6.3 6.0 6.2 5.9 
     France  4.1 4.6 4.4 4.1 
     Italy 3.5 3.3 2.8 3.1 
     Luxembourgb 2.1 2.0 1.8 2.6 
  United States  12.5 13.1 14.2 15.6 
  Russian Federationb 1.7 1.9 2.0 1.9 
  China  1.7 1.8 1.7 1.8 
  Japan  1.3 1.2 1.1 1.3 
  Singaporeb 0.7 1.1 0.9 1.1 
  Indiab 0.4 0.4 0.4 0.4 
     
Imports (SwF billion)  80.8 85.6 91.5 90.8 
 (% of total imports)  
By sector      
  Transport  13.7 13.6 12.6 9.3 
  Tourism  17.6 17.5 16.9 17.0 
  Insurance and pension services  1.9 1.6 1.5 1.8 
  Financial services  4.3 4.0 3.9 3.9 
  Licence fees  12.9 12.7 14.2 13.7 
  Telecommunications, computer and information services  13.2 14.1 14.3 14.6 
  Research and  development services  9.4 8.3 10.1 10.3 
  Consulting services  15.0 15.9 15.9 16.2 
  Technical, trade -related, and other business services  7.2 7.1 7.1 9.4 
  Other services  4.7 5.2 3.6 3.9 
By major originsa     
  EU-28 40.2 41.2 41.3 40.4 
    of which:       
    Germany  10.8 11.4 11.2 10.6 
    United Kingdom  8.2 8.0 8.5 9.4 
    France  5.1 6.0 5.5 5.3 
  United States  17.0 17.3 19.4 20.3 
  Japan  1.4 1.3 1.5 1.7 
  China  1.7 1.7 1.3 1.4 
  Indiab 0.9 0.8 0.8 1.1 
a Without tourism.   
b Without research  and development services (confidential).  
Source:  Swiss National Bank (SNB) data portal. Viewed at: https://data.snb.ch/en  (accessed in 
October  2016).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A1. 7 Foreign direct investment  by selected trading partners, 2012 -15  
(SwF billion)  
 Capital flowsa Capital stock at year -end (book value)  
 2012  2013  2014  2015  2012  2013  2014  2015  
FDI in Switzerlandb 27.2 0.6 7.4 67.8 680.0  696.4  770.6  833.2  
Europe  26.0 -5.9 0.0 50.9 580.3  589.4  612.6 660.5  
  EU-28 35.6 6.6 17.3 54.9 546.6  568.4  598.3  649.8  
       Austria  -2.3 -2.2 -0.7 3.7 61.7 60.2 59.3 62.6 
       Belgium  -2.4 0.4 -1.6 1.8 3.9 4.4 4.7 5.9 
       Denmark  -1.6 -0.1 -0.2 -2.6 4.2 4.2 5.9 3.5 
       Germany  0.4 -0.7 -1.4 1.5 30.0 26.3 24.6 25.0 
       France  2.9 -1.1 -1.5 0.6 39.7 38.0 39.6 40.3 
       Italy -0.1 0.0 -0.3 0.1 4.0 4.0 4.2 4.3 
       Luxembourg  -8.5 11.4 6.3 13.8 147.9  155.5  189.9  202.1  
       Netherlands  10.4 6.9 4.9 8.6 157.0  178.9  181.3  197.0  
       Sweden  -0.9 0.3 -1.1 2.0 4.4 4.6 4.9 9.8 
       Spain  0.4 -0.3 -0.9 0.1 10.7 10.5 9.5 10.2 
       United Kingdom  1.9 5.8 16.3 13.6 14.9 19.9 25.5 38.1 
  Other European countries  -9.6 -12.5 -17.3 -3.9 33.7 21.0 14.3 10.7 
North America  7.4 8.5 5.5 0.9 79.3 88.9 100.4  97.5 
  Canada  -0.1 0.1 -0.1 0.3 0.3 0.4 -0.3 -0.3 
  United States  7.5 8.4 5.7 0.7 79.0 88.5 100.7  97.8 
Central and South America  0.2 -3.5 2.2 20.5 10.6 7.4 45.2 65.5 
  Offshore financial centres  1.9 -0.5 2.7 20.1 15.7 15.5 46.8 67.4 
Asia, Africa , Oceania  -6.4 1.4 -0.4 -4.6 9.8 10.8 12.4 9.7 
  Japan  0.4 -0.1 0.0 0.5 3.4 3.2 3.9 5.6 
Swiss direct investment 
abroadc 40.9 35.8 -1.0 100.1  1,088.6  1,064.8  1,073.6  1,120.8  
  EU-28 10.7 11.7 7.4 79.5 468.0  462.1  480.6  544.9  
       Belgium  1.4 0.4 0.2 2.8 14.4 16.1 12.7 15.1 
       Germany  -3.8 0.6 2.2 2.2 53.0 52.0 35.7 38.2 
       France  -4.7 2.6 -1.2 22.4 28.9 30.7 33.9 47.1 
       Ireland  0.9 1.8 -1.9 41.4 21.1 23.3 28.7 70.7 
       Italy 0.4 1.3 1.7 -0.6 19.7 20.9 16.6 15.6 
       Luxembourg  4.3 -9.7 2.3 8.4 116.6  96.9 126.5  137.8  
       Netherlands  -17.5 2.4 10.7 15.4 57.9 61.0 110.8  121.9  
       United Kingdom  28.2 3.3 -8.7 -10.5 82.5 79.1 60.6 50.9 
  Argentina  3.5 0.1 0.3 0.3 6.9 6.6 4.3 4.9 
  Australia  -4.9 1.7 -2.5 8.6 18.3 18.9 15.5 17.2 
   Brazil  1.7 1.2 1.3 -0.5 22.1 21.2 13.1 9.3 
  Canada  3.5 2.6 2.6 -1.6 37.7 44.1 41.3 41.5 
  Chile 0.2 0.4 0.0 -3.3 3.5 3.5 2.1 -1.5 
  China  1.5 1.8 3.4 1.6 14.9 17.1 20.3 20.0 
  Hong Kong, China  3.3 -1.6 0.7 0.9 8.7 7.3 6.4 6.9 
  India 0.8 0.4 0.5 0.8 7.3 6.8 4.5 4.8 
  Indonesia  0.5 0.2 1.9 1.8 6.9 5.7 5.5 6.4 
  Japan  0.5 0.0 -0.3 0.3 14.4 11.5 9.0 9.4 
  Korea, Republic of  0.5 0.1 0.4 0.4 4.8 4.8 4.8 4.9 
  Mexico  0.8 0.7 -3.1 0.3 12.7 13.0 7.6 7.4 
  Russian Federation  1.0 0.1 0.8 0.6 14.6 15.0 9.4 8.5 
  Singapore  -0.3 1.8 0.4 0.5 20.3 20.1 17.4 17.6 
  Turkey  0.0 0.3 0.5 0.6 2.6 2.7 2.8 2.6 
  United Arab Emirates  -1.4 5.4 1.1 5.5 9.1 11.3 20.2 26.0 
  United States  10.2 0.5 -4.9 7.7 200.3  194.0  187.6  205.1  
a The minus sign ( -) indicates a return flow of capital into Switzerland (disinvestment).  
b Figures for capital stocks are based on place of origin of the immediate investor of the company in 
Switzerland.  
c Figures for capital stock – until 2013, breakdown by place of ultimate participa tion; as of 2014, 
breakdown according to place of direct participation.  
Source:  Swiss National bank, SNB data portal. Viewed at: https://data.snb.ch/en  (12 January 2017).  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A2. 1 Most recent notifications made by Switzerland to the WTOa  
Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreement on Agriculture  
Articles 10 and 18.2  G/AG/N/CHE/75, 21/06/2016  Export subsidies; annual  
Article 18.2  G/AG/N/CHE/72, 10/08/2015  Domestic support; annual  
Article 18.2  G/AG/N/CHE/13/Add.18, 16/03/2016  Administration of tariff quotas; ad hoc  
Article 18.2  G/AG/N/CHE/73, 17/11/2015  Volume of imports under tariff quotas; 
annual  
Article 18.3 G/AG/N/CHE/68, 26/09/2014  New or modified exempt domestic 
support measures; ad hoc  
Articles 5.7 and 18.2  G/AG/N/CHE/74, 18/02/2016  Special safeguard provisions; annual  
Article 16.2  G/AG/N/CHE/76, 24/06/2016  Actions taken within the framework of 
the Decision on LDCs and Net -Food-
Importing Developing Countries; ad hoc   
Agreement on Government Procurement  
Article XIX:5  GPA/W/336/Add.3, 06/01/2016  Thresholds, semi -annual  
Agreement on Implementation of Article VI of the GATT 1994 (Anti -Dumping Agre ement)  
Article 16.4  G/ADP/N/188/Add.1, 16/10/2009  Anti-dumping measures; semi -annual  
Articles 16.4 and 16.5  G/ADP/N/193/CHE, 23/12/2009  Authorities and procedures; once  
Article 18.5  G/ADP/N/1/CHE/1, 4/05/1995  Laws and regulations; ad  hoc 
Agreement o n Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation)  
Article 22  G/VAL/N/1/CHE/1, 28/08/1995  Laws and regulations; once  
Agreement on Import Licensing Procedures  
Articles 1.4(a) and 
8.2(b)  G/LIC/N/1/CHE/3, 20/01/2012  Laws and regulations; once  
Article 7.3  G/LIC/N/3/CHE/12, 30/09/2016  Completion of questionnaire; annual  
Agreement on Preshipment Inspection  
Article 5  G/PSI/N/1/Add.2, 26/07/1995  Laws and regulations; once  
Agreement on Rules of Origin  
Article  5 and Annex  II, 
paragraph  4 G/RO/N/60/Rev.1, 08/04/2009  Changes in laws and regulations (rules of 
origin in effect); ad hoc  
Agreement on Safeguards  
Article 12.6  G/SG/N/1/CHE/1, 24/07/1995  Laws and regulations; once  
Agreement on Subsidies and Countervailing Measures  
Articles 25.1 and XVI.1 
of the GATT 1994  G/SCM/N/284/CHE, 13/07/2015  
 Subsidy programmes; every three years 
for full notifications, annual for changes  
Article 25.11  G/SCM/N/195/Add.1, 14/10/2009  Countervailing actions taken; semi -annual  
Articles 25.11 and  
25.12  G/SCM/N/202/CHE, 23/12/2009  Authorities and procedures; once  
Article 32.6  G/SCM/N/1/CHE/1, 04/05/1995  Laws and regulations; once  
Agreement on Technical Barriers to Trade  
Article 2.9  G/TBT/N/CHE/211, 05/04/2016  Technical regulations, ad hoc  
Article 5.6  G/TBT/N/CHE/190, 19/03/2015  Conformity assessment procedures; 
ad hoc 
Articles 10.1, 10.2, 
and 10.3  G/TBT/ENQ/38/Rev.1, 08/07/2011  Enquiry point; once  
Article 15.2  G/TBT/2/Add.7/Rev.2, 16/05/2014  Implementation and administration of the 
Agreement;  once  
Annex 3C  G/TBT/CS/2/Rev.22, 29/02/2016  Acceptance of the Code of Good Practice; 
once 
Agreement on Textiles and Clothing  
Articles 2.8(c) and 
2.11 G/TMB/N/467, 19/02/2004  Integration programme (fourth stage); 
once 
Agreement on the Application of S anitary and Phytosanitary Measures  
Annex B, paragraph  7 G/SPS/N/CHE/72, 27/07/2011  Sanitary and phytosanitary measures; 
ad hoc 
Annex B, paragraph  3 G/SPS/ENQ/23, 27/03/2008  Enquiry point; once  
Annex B, paragraph  10 G/SPS/NNA/8, 20/12/2004  National notif ication authority; once  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS)  
Article 63.2  IP/N/1/CHE/C/7, 04/11/2013  Laws and regulations; once  
 IP/N/6/CHE/2, 12/02/2014  Checklist of issues on enforcement; once  
Article 69  IP/N/3/ Rev.11, 04/02/2010  Contact point; once  
Agreement on Trade -Related Investment Measures (TRIMS)  
Article 5.1  G/TRIMS/N/1/CHE/1, 20/09/1995  Trade -related investment measures; once  
Article 6.2  G/TRIMS/N/2/Rev.1, 28/07/1997  Publications in which TRIMS may b e found; 
ad hoc 
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/ Rev.1  G/MA/QR/N/CHE/1, 02/05/2014  Notifications of quantitative restrictions; 
every two years  
General Agreement on Trade in Services  
Article III:3  S/C/N/859, 27/01 /2016  Laws/regulations; ad hoc  
Article III:4 and/or 
IV:2 S/ENQ/78/Rev.16, 22/04/2016  Enquiry point; once only  
Article V:7(a)  WT/REG357/N/1, S/C/N/774, 
21/11/2014  Economic integration agreements; ad hoc  
Article VII:4  S/C/N/395, 25/05/2007  Autonomous reco gnition measures; ad hoc  
General Agreement on Tariffs and Trade 1994  
Article XVII:4(a)  G/STR/N/16/CHE, 03/05/2016  Notification on state -trading enterprises; 
every three years for full notifications, on 
an annual basis for changes (as from 
2004, every two  years)  
Article XXIV:7(a)  WT/REG360/N/1, 08/01/2015  Agreement establishing a free -trade area; 
ad hoc  
Article XXVIII:5  G/MA/303, 04/11/2014  Modification of the Schedule of 
Concessions (reservation of the right to 
modify the Schedule during a three -year 
period); every three years  
a As per October 2016.   
Source:  WTO Secretariat.  
 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A2. 2 Most recent notifications made by Liechtenstein to the WTOa  
Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreement on Agriculture  
Articles 10 and 18.2  G/AG/N/CHE/75, 21/06/2016  Export subsidies; annual  
Article 18.2  G/AG/N/CHE/72, 10/08/2015  Domestic support ; annual  
Article 18.2  G/AG/N/CHE/13/Add.18, 16/03/2016  Administration of tariff quotas; ad hoc  
Article 18.2  G/AG/N/CHE/73, 17/11/2015  Volume of imports under tariff quotas; 
annual  
Article 18.3  G/AG/N/CHE/68, 26/09/2014  New or modified exempt domestic 
support measures; ad hoc  
Agreement on Government Procurement  
Article XI X:5 GPA/130/Add.3, 08/10/2015  Statistics; annual  
Agreement on Implementation of Article VI of the GATT 1994 (Anti -Dumping Agreement)  
Article 16.4  G/ADP/N/188/Add.1, 16/10/2009  Anti-dumping measures; semi-annual  
Articles 16.5 and 
25.12  G/ADP/N/193/LIE, 0 5/03/2010  Authorities and procedures; once  
Article 18.5  G/ADP/N/1/CHE/1, 04/05/1995  Laws and regulations; ad hoc 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs 
Valuation)  
Article 22  G/VAL/N/1/LIE/1, 06/11/1996  
G/VAL/N /1/CHE/1, 28/08/1995  Laws and regulations; once  
Agreement on Import Licensing Procedures  
Articles 1.4(a) and 
8.2(b)  G/LIC/N/1/LIE/3, 23/02/2012  Laws and regulations; once  
Article 7.3  G/LIC/N/3/LIE/8, 03/11/2014  Completion of questionnaire; annual  
Agre ement on Preshipment Inspection  
Article 5  G/PSI/N/1/Add.7, 24/02/1998  
G/PSI/N/1/Add.2, 26/07/1995  Laws and regulations; once  
Agreement on Rules of Origin  
Article  5 and 
Annex  II, paragraph  4 G/RO/N/60/Rev.1, 08/04/2009  Changes in laws and regulations (ru les 
of origin in effect); ad hoc  
Agreement on Safeguards  
Article 12.6  G/SG/N/1/CHE/1, 24/07/1995  Laws and regulations; once  
Agreement on Subsidies and Countervailing Measures  
Articles  25.1 and 
XVI.1 of the GATT 
1994 G/SCM/N/284/LIE, 22/09/2015  
G/SCM/N /284/CHE, 13/07/2015  Subsidy programmes; every three 
years for full notifications, annual for 
changes  
Article 25.11  G/SCM/N/195/Add.1, 14/10/2009  Countervailing actions taken; 
semi-annual  
Article 25.12  G/SCM/N/202/LIE, 05/03/2010  Authorities and procedu res; once  
Article 32.6  G/SCM/N/1/LIE/1, 31/01/1997  
G/SCM/N/1/CHE/1, 4 May 1995  Laws and regulations; once  
Agreement on Technical Barriers to Trade  
Articles 10.1, 10.2, 
and 10.3  G/TBT/ENQ/38/Rev.1, 08/07/2011  Enquiry point; once  
Annex 3C  G/TBT/CS/2/Rev .22, 29/02/2016  Acceptance of the Code of Good 
Practice; once  
Agreement on Textiles and Clothing  
Articles 2.8(c) and 
2.11 G/TMB/N/467, 19/02/2004  Integration programme (fourth stage); 
once 
Agreement on the Application of Sanitary and Phytosanitary Measu res 
Annex B, paragraph  7 G/SPS/N/CHE/72, 27/07/2011  Sanitary and phytosanitary measures; 
ad hoc 
Annex B, paragraph  3 G/SPS/ENQ/23, 27/03/2008  Enquiry point; once  
Annex B, 
paragraph  10 G/SPS/NNA/8, 20/12/2004  National notification authority; once  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Agreement/ 
decision  Symbol and date of most recent 
notification  Description of requirement and 
frequency  
Agreem ent on Trade -Related Aspects of Intellectual Property Rights (TRIPS)  
Article 63.2  IP/N/1/LIE/C/3, 02/03/2004  Laws and regulations; once  
 IP/N/6/LIE/1, 18/02/1997  Checklist of issues on enforcement; 
once 
Article 69  IP/N/3/Rev.7, 19/08/2003   Contact poin t; once  
Agreement on Trade -Related Investment Measures (TRIMS)  
Article 6.2  G/TRIMS/N/2/Rev.1, 28/07/1997  Publications in which TRIMS may be 
found; ad  hoc 
Decision on Notification Procedures for Quantitative Restrictions  
G/L/59/Rev.1  G/MA/QR/N/LIE/1, 11 /06/2014  
G/MA/QR/N/CHE/1, 02/05/2014  Notifications of quantitative 
restrictions; every two years  
General Agreement on Trade in Services  
Article III:3  S/C/N/671, 22/11/2012  Laws/regulations; ad hoc  
Article III:4 and/or 
IV:2 S/ENQ/78/Rev.16, 22/04/2016  Enquiry point; once only  
Article V:7(a)  WT/REG357/N/1  
S/C/N/774, 21/11/2014  Economic integration agreements; 
ad hoc 
Article VII:4  S/C/N/395, 25/05/2007  Autonomous recognition measures; 
ad hoc 
General Agreement on Tariffs and Trade 1994  
Article XVII:4(a)  G/STR/N/16/LIE, 22/07/2016  
G/STR/N/16/CHE, 03/05/2016  Notification on state -trading 
enterprises; every three years for full 
notifications, on an annual basis for 
changes (as from 2004, every two 
years ) 
Article XXIV:7(a)  WT/REG360/N/1, 08/01/2015  Agreement  establishing a free -trade 
area; ad hoc  
Article XXVIII:5  G/MA/303, 04/11/2014  Modification of the Schedule of 
Concessions (reservation of the right to 
modify the Schedule during a three -
year period); every three years  
a As per October 2016.   
Source:  WTO Secretariat.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
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  Table A2. 3 Participation in EFTA free trade agreements, November 2016   
Signature  Entry into  
force  Notified to 
GATT/WTO  
(document 
series)  Agreement  
04.01.1960  03.05.1960  L/3328 (GATT)  
WT/REG154  
S/C/N/207  Convention  establishing the EFTA (applies to Iceland, 
Liechtenstein, Norway, and Switzerland) (amended in 
2002)  
10.12.1991  01.04.1992  L/6989/Add.1 
(GATT)  
WT/REG86  
G/L/349  EFTA-Turkey (goods, IP, competition, state aid, dispute 
settlement, government procurement, e volutionary 
clause) 
02.05.1992  01.01.1994  WT/REG138  
S/C/N/28  EEA (applies to all EU member States, Iceland, Norway, 
and Liechtenstein)  
17.09.1992  01.01.1993  L/7129 and 
Add.1  
(GATT)  EFTA-Israel (goods, IP, competition, state aid, dispute 
settlement, gover nment procurement, services, 
investment, evolutionary clause) 
19.06.1997  01.12.1999  WT/REG91  EFTA-Morocco (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, 
investment, evolutionary clause) 
30.11.1998  01 07.1999  WT/REG79  EFTA-Palestine (goods, IP, competition, state aid, 
dispute settlement, government procurement, services, 
investment, evolutionary clause) 
27.11.2000  01.07.2001  WT/REG126  
S/C/N/166  EFTA-Mexico (goods, IP, competition, state aid, dispute 
settlement, g overnment procurement, services, and 
investment) 
21.06.2001  01.09.2002  WT/REG133  EFTA-Jordan (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, 
investment, evolutionary clause) 
19.06.2000  01.05.2002  WT/REG117  EFTA-Former Yugoslav Republic of Macedonia (goods, 
IP, competition, state aid, dispute settlement, 
government procurement, services, investment, 
evolutionary clause) 
26.02.2002  01.01.2003  WT/REG148  
S/C/N/226  EFTA-Singapore (goods, IP, competition, state aid, 
dispute settlement, government procurement, services, 
and investment) 
26.06.2003  01.12.2004  WT/REG179  
S/C/N/309  EFTA-Chile (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, and 
investment)  
24.06.2004  01.01.2007  WT/RE G224  EFTA-Lebanon (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, 
investment, evolutionary clause) 
17.12.2004  01.06.2006  WT/REG201  EFTA-Tunisia (goods, services, IP, competition, state 
aid, dispute settlement, go vernment procurement, 
services, investment , evolutionary clause)  
15.12.2005  01.09.2006  WT/REG217  
S/C/N/373  EFTA-Republic of Korea (goods, IP, competition, state 
aid, dispute settlement, government procurement, 
services, and investment)  
26.06.2006  01.05. 2008 WT/REG256  EFTA-Southern African Customs Union (goods, 
competition, state aid, dispute settlement, IP, services, 
government procurement, investment, evolutionary 
clause)  
27.01.2007  01.08.2007  WT/REG232  EFTA-Egypt (goods, IP, competition, state aid, di spute 
settlement, government procurement, services, 
investment, evolutionary clause)  
26.01.2008  01.07.2009  WT/REG271  EFTA-Canada (goods, IP, competition, state aid, dispute 
settlement, government procurement, services, 
investment, evolutionary clause)  
25.11.2008  01.07.2011  WT/REG299/N/1  
S/C/N/600  EFTA-Colombia (goods, processed agricultural products, 
services, investment, IP, government procurement, 
competition, state aid, dispute settlement)  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 169 - 
 
  Signature  Entry into  
force  Notified to 
GATT/WTO  
(document 
series)  Agreement  
17.12.2009  01.11.2010  WT/REG292/N/1  EFTA-Albania (goods, IP, competition, state aid, 
government procurement, services, investment, dispute 
settlement, evolutionary clause)  
17.09.2009  01.10.2010  WT/REG290  EFTA-Serbia (goods, IP, competition, state aid, 
government procurement, services, investment, dispute 
settlement , evolutionary clause)  
24.06.2010  01.07.2011  WT/REG295  EFTA-Peru (goods, processed agricultural products, IP, 
competition, state aid, government procurement, 
services, investment, dispute settlement)  
24.06.2010  01.06.2012  WT/REG315  
S/C/N/644  EFTA-Ukraine  (goods, IP, competition, state aid, 
government procurement, services, investment, dispute 
settlement, evolutionary clause)  
21.06.2011  01.10.2012  WT/REG322/N/1  
S/C/N/654  EFTA-Hong Kong, China (goods, IP, competition, state 
aid, government procurement, ser vices, investment, 
dispute settlement, sustainable development, 
evolutionary clause)  
14.11.2011  01.09.2012  WT/REG323/N/1  EFTA-Montenegro (goods, IP, competition, state aid, 
government procurement, services, investment, dispute 
settlement, sustainable deve lopment, evolutionary 
clause)  
22.06.2009  01.07.2014   EFTA-Gulf Cooperation Council (goods, services, 
government procurement, competition, dispute 
settlement)  
24.06.2013  19.08.2014  WT/REG357/N/1  
S/C/N/774  EFTA-Central American Statesa (goods, services, 
investment, IP, government procurement, competition, 
sustainable development, dispute settlement)  
24.06.2013  01.01.2015  WT/REG360/N/1  EFTA-Bosnia and Herzegovina (goods, IP, investment, 
services, government procurement, payments and 
capital movements, susta inable development, dispute 
settlement)  
a Agreement initially in force for Costa Rica and Panama. The Protocol on the accession of Guatemala 
to the FTA is not yet in force.  
Source:  WTO Secretariat; and EFTA Secretariat (2016), 55th Annual Report of the European Free Trade 
Association 2015 . Viewed at: http://www.efta.in t/sites/default/files/publications/annual -
report/annual -report -2015.pdf . WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 170 - 
 
  Table A3. 1 SPS, 2015  
 Ordinance  Notification  
G/TBT/N -
series  Date  Comments  
1. Ordinance on food and basic 
commodities – RS 817.02  
(Ordonnance sur les d enrées 
alimentaires et les objets usuels)  
 CHE/198  
CHE/199  
CHE/200  
CHE/201  
CHE/202  13/08/2015  
13/08/2015  
14/08/2015  
18/08/2015  
03/09/2015  Provides a framework for all 
provisions on food and basic 
commodities.  
 
2. Ordinance on the implementation of 
the foo d legislation - RS 817.042  
(Ordonnance sur l'exécution de la 
législation sur les denrées 
alimentaires)     
3. Ordinance on the national control plan 
- RS 817.032  
(Ordonnance sur le plan de contrôle  
national de la chaîne alimentaire et 
des objets usuels)  CHE/202  03/09/2015  Establishes the general principles of 
the federal policy on food safety and 
the basis for controlling, according 
to risk criteria, different categories 
of enterprises and products.  
4. Ordinance on animal slaughtering and 
meat control - RS 817.190  
(Ordonnance concernant l'abattage 
d'animaux et le contrôle des viandes)  
 CHE/204  03/09/2015  The changes compared to the 
previous ordinance concern wild 
game. The distinction previously 
made based on the size of the 
establishment in which game is 
processed has been replaced by a 
risk-based approach.  
5. Ordinance on hygiene - RS 817.024.1  
(Ordonnance du DFI sur l'hygiène 
dans les activités liées aux denrées 
alimentaires)  CHE/204  03/09/2015  Introduction of the EU provisions on 
frozen foods and salmo nella in 
swine carcasses; establishment of a 
non-EU hygiene criterion on 
campylobacter in the poultry 
slaughter process.  
6. Ordinance on food information – 
RS 817.022.16  
(Ordonnance du DFI concernant 
l'information sur les denrées 
alimentaires)  CHE/202  03/09/2015  Includes a specific Swiss provision 
whereby the name of the country of 
production must be displayed on all 
food products. Otherwise no major 
changes compared to the previous 
ordinance.  
7. Ordinance on food of plant origin, 
mushrooms and edible sal t – 
RS 817.022.17  
(Ordonnance du DFI sur les denrées 
alimentaires d'origine végétale, les 
champignons et le sel comestible)  CHE/203  03/09/2015  The relevant ordinances have been 
restructured in order to align them 
with EU legislation. The use of 
certain pla nts as food supplements 
has been prohibited for health 
reasons. For the first time certain 
insect species may be authorized as 
food, if risk assessments show that 
no threat is posed to human health.  
 8. Ordinance on food of animal origin - 
RS 817.022.108  
(Ordonnance du DFI sur les denrées 
alimentaires d'origine animale)  CHE/203  03/09/2015  
9. Ordinance on food intended for 
persons with special dietary needs - 
RS 817.022.104  
(Ordonnance du DFI sur les denrées 
alimentaires destinées aux personnes 
ayant des besoins nutritionnels 
particuliers)  CHE/203  03/09/2015  
10. Ordinance on food supplements – 
RS 817.022.14  
(Ordonnance du DFI sur les 
compléments alimentaires)  CHE/203  03/09/2015  
11. Ordinance on new types of food – 
RS 817.022.2  
(Ordonnance du DFI sur le s nouvelles 
sortes de denrées alimentaires)  CHE/203  03/09/2015  
12. Ordinance on beverages – 
RS 817.022.12  
(Ordonnance du DFI sur les boissons)  CHE/203  03/09/2015  
13. Ordinance on the quality of water 
intended for human consumption or 
to come into conta ct with the human 
body 
(Ordonnance du DFI sur la qualité des 
eaux destinées à la consommation 
humaine ou à entrer en contact avec 
le corps humain)  CHE/203  03/09/2015  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 171 - 
 
   Ordinance  Notification  
G/TBT/N -
series  Date  Comments  
14. Ordinance on hygiene in animal 
slaughtering - RS 817.190.1  
(Ordonnance du DFI concer nant 
l'hygiène lors de l'abattage 
d'animaux)  CHE/204  03/09/2015  New provisions on wild game reflect 
those in the ordinance on animal 
slaughtering and meat control.  
15. Ordinance on materials and articles 
intended to come into contact with 
food - RS 817.02 3.21 
(Ordonnance du DFI sur les 
matériaux et objets destinés à entrer 
en contact avec les denrées 
alimentaires)  
 
 CHE/200  14/08/2015  Materials and articles intended to 
enter into contact with food, which 
are expected to enter into contact 
with food under n ormal or 
reasonably foreseeable conditions of 
use, or which are intended to 
transfer their constituents to food, 
and which are made from metal, 
plastic, cellulose, glass, paper or 
cardboard, wax or paraffin, or 
silicone; packaging inks. The main 
amendments  include: observance of 
good manufacturing practices (GMP) 
has been made mandatory at all 
stages of manufacturing; 
introduction of traceability 
requirements.  
16. Ordinance on additives - RS 
817.022.31  
(Ordonnance du DFI sur les additifs 
admis dans les den rées alimentaires)  CHE/205  03/09/2015  Minor amendments to harmonize 
Swiss legislation with the EU 
legislation.  
17. Ordinance on flavourings and food 
additives with flavouring properties - 
RS 817.022.41  
(Ordonnance du DFI sur les arômes et 
les additifs ali mentaires ayant des  
propriétés aromatisantes utilisés dans 
ou sur les denrées alimentaires)  CHE/205  03/09/2015  Flavourings are categorized as 
ingredients. Exhaustive list of 
permitted flavourings.  
 
18. Ordinance on the addition of vitamins, 
minerals and c ertain other substances 
to food - RS 817.022.32  
(Ordonnance du DFI sur l'adjonction 
de vitamines, de sels minéraux et de 
certaines autres substances aux 
denrées alimentaires)  CHE/205  03/09/2015  A new provision has been added 
stating that substances should be 
bio-available.  
19. Ordinance on technological 
procedures and processing aids used 
in food processing - RS 817.022.42  
(Ordonnance du DFI sur les procédés 
et les auxiliaires technologiques 
utilisés  
pour le traitement des denrées 
alimentaires)  CHE/205  03/09/2015  Aligned with EU law.  
20. Ordinance on contaminants – 
RS 817.022.15  
(Ordonnance du DFI sur les teneurs 
maximales en contaminants)  CHE/206  03/09/2015  Mainly restructuring of previous 
ordonnances to align them with the 
EU acquis. Maximum values for 
contaminants not regulated in the 
EU are maintained.  
21. Ordinance on residues of 
pharmacologically active substances 
and feed additives in foods of animal 
origin - RS 817.022.13  
(Ordonnance du DFI sur les résidus 
de substances pharmacologiquement 
actives  
et d'additifs pour l'alimentation 
animale dans les denrées alimentaires 
d'origine animale)  CHE/206  03/09/2015  Mainly restructuring of previous 
ordonnances in line with EU acquis. 
The ordinance establishes maximum 
concentration levels and reference 
values – the same system as in the 
EU.  
22. Ordinance on the limits applicable to 
pesticide residues in or on products of 
plant or animal origin – 
RS 817.021.23  
(Ordonnance du DFI sur les limites 
maximales applicables aux résidus de 
pesticides présents dans ou s ur les 
produits d'origine végétale ou 
animale)  CHE/206  03/09/2015  Requires a status report on residues 
from the Federal Food Safety and 
Veterinary Office.  The FSVO 
continues to have the authority to 
modify the annexes, taking into 
account advances in know ledge.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 172 - 
 
   Ordinance  Notification  
G/TBT/N -
series  Date  Comments  
23. Ordinance on cosmetics – 
RS 817.023.31  
(Ordonnance du DFI sur les 
cosmétiques)  
 CHE/199  13/08/2015  Main amendments concern 
marketing requirements, including: 
product information file containing a 
safety assessment report prepared 
by a qualified  person; good 
manufacturing practices; 
traceability; labelling; introduction 
of six criteria to be met by claims 
concerning cosmetics.  
24. Ordinance on toy safety – 
RS 817.023.11  
(Ordonnance du DFI sur la sécurité 
des jouets)  CHE/201  
 18/08/2015  New limit s for chemical substances 
in toys and new migration  limits.  
25. Ordinance on articles intended to 
come in contact with mucous 
membranes, skin and hair, and on 
candles, matches, lighters and joke 
articles - RS 817.023.41  
(Ordonnance du DFI sur les objets 
destinés à entrer en contact avec les 
muqueuses, la peau ou le système 
pileux et capillaire, et sur les bougies, 
les allumettes, les briquets et les 
articles de farces et attrapes)  CHE/198  
 13/08/2015  
 Amendments to the requirements 
concerning the release o f chemical 
substances in contact with the skin, 
hair or mucous membranes.  
26. Ordinance on aerosol dispensers – 
RS 817.023.61  
(Ordonnance du DFI sur les 
générateurs d'aérosols)     
27. Ordinance of the FSVO on the 
importation and placing on the 
market of food products contaminated 
by caesium in the light of the accident 
at the Chernobyl nuclear power 
station - RS 817.022.151  
(Ordonnance de l'OSAV concernant 
l'importation et la mise sur le marché 
de denrées alimentaires contaminées 
par du césium à la suite de l'accident 
survenu à la centrale nucléaire de 
Tchernobyl)  CHE/206  03/09/2015   
Source:  Swiss notifications to the WTO TBT Committee.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 173 - 
 
  Table A3. 2 State -owned enterprises and exclusive arrangements, 2016  
Sector  Entity  Exclusiv e arrangements  
Switzerland  
Telecommunications  Swisscom (joint stock company, 
51% ownership by the 
Confederation)  PSO as universal service licensee (put to tender 
every 7 years), additional mandates in strategic 
objectives of the Federal Council 2014 -17. 
Rail transport  Swiss federal railways SBB 
(joint stock company, 100% 
ownership by the 
Confederation); and other 
transport companies  Licence/concession as infrastructure manager 
and for operating passenger transport services 
(regional and long -distance pas senger transport). 
PSO according to specific law and bylaws, further 
specified in strategic objectives of the Federal 
Council 2015 -18. 
Postal services  Swiss Post (joint stock 
company, 100% ownership by 
the Confederation)  Exclusive rights to supply service s related to 
delivery of domestic and international inbound 
letters of up to 50 g. PSO according to specific 
law and bylaws, further specified in strategic 
objectives of the Federal Council 2013 -16. 
Alcohol and spirits  Swiss Alcohol Board/Alcosuisse  Exclusive import rights.  
Aerospace and 
defence technology  RUAG (joint stock company 
100% owned by the Swiss 
Confederation)  Legal mandate of securing supply in the Swiss 
armament sector. Bound by the strategic 
objectives of the Federal Council 2016 -19. 
Electr icity  Cantonal or local entities  
 
 
Swissgrid (majority public 
ownership)  Generation and supply of electricity ( de facto  
monopoly)  
 
Exclusive rights for the operation of the Swiss 
high voltage electricity transmission system  
Water  Cantonal or local enti ties  Collection, purification, and distribution of water  
Gas Swissgas  
 
 
 
Transitgas (51% controlled by 
Swissgas)  
 
Regional entities  
Local and cantonal utilities  A joint procurement, transport and import 
platform for four regional shareholders (regiona l 
companies). The Association of the Swiss Natural 
Gas Industry is also a shareholder.  
 
International gas transit  
 
Regional gas distribution  
Local gas distribution  
Passenger transport 
by bus, tramway, 
cable, boat, etc.  Cantonal or local entities  Scheduled  passenger transport  
Airport management  Zurich International Airport 
(minority public ownership); 
Geneva International Airport 
(public ownership); Europe 
Airport Basel -Mulhouse -Freiburg 
(public ownership); and other 
entities  Services related to the manag ement of airports  
Certain insurance 
services  Cantonal entities  
 
 
SUVA  Exclusive rights to supply insurance services for 
fire and natural damage to buildings.  
 
Exclusive rights to supply statutory workplace 
accident insurance services.  
Certain banking 
services  Cantonal banks (majority 
ownership by cantons); and 
other banks  Exclusive rights to issue specific mortgage bonds 
(Schweizer Pfandbriefe ) only through "issuing 
institutions" whose mortgage loans amount to at 
least 60% of their balance sheet (the i ssuing 
institutions are owned either by cantonal or 
private banks).  
Salt Salines Suisses  Salt monopoly jointly administered by the 
cantons through Salines Suisses, with exclusive 
import, production and distribution rights.  WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 174 - 
 
  Sector  Entity  Exclusiv e arrangements  
Liechtenstein  
Electricity  Liechtensteinische Kraftwerke 
(LKW) (wholly state -owned)  Generation, imports, and distribution of 
electricity; direct imports are allowed.  
Drinking water  Gruppenwasserversorgung 
Liechtenstein Oberland  
  
Wasserversorgung Liechtenstein 
Unterland  Exclusive pr oduction and distribution rights 
(except industry and large customers).  
 
Exclusive production and distribution rights 
(except industry and large customers).  
Gas Liechtensteinische 
Gasversorgung (LGV) (wholly 
state-owned)  Imports and distribution of gas;  direct imports 
are allowed.  
Telecommunications  Telecom Liechtenstein (75.1% 
state-owned)  
 
LKW (wholly state -owned)  Provides fixed -net and mobile services.  
 
 
LKW owns and operates the major part of the 
fixed communication network infrastructure 
(twisted copper, HFC and fibre).  
Public transport 
services by bus  Liechtensteinmobil (wholly 
state-owned)  Exclusive supply rights.  
Postal services  Liechtenstein Post AG (75% 
state-owned by Liechtenstein)  Exclusive rights for letters and direct mailing up 
to 50 g.  
Source:  Information provided by the Swiss and Liechtenstein authorities.  
 
 WT/TPR/S/ 355 • Switzerland and Liechtenstein  
 
- 175 - 
 
  Table A4. 1 Switzerland's major traded agricultural products, 2012 -15 
  2012  2013  2014  2015  2012  2013  2014  2015  
  SwF million  % of total agriculture  
Total agricultural exportsa 8,275  8,890  9,083  8,777  100.0  100.0  100.0  100.0  
Subtotal for top 10b 5,872  6,435  6,663  6,585  71.0 72.4 73.4 75.0 
HS 220290 Non -alcoholic beverages  
(non-alcoholic beer, shandy, and milk 
in glass bottles/cans)  1,530  1,636  1,731  1,811  18.5 18.4 19.1 20.6 
HS 090121 Coffee roasted: -- Not 
decaffeinated  1,497  1,834  1,834  1,740  18.1 20.6 20.2 19.8 
HS 210690 Food preparations: - Other  634 643 635 635 7.7 7.2 7.0 7.2 
HS 040690 Cheese and curd: - Other 
cheese  499 516 551 524 6.0 5.8 6.1 6.0 
HS 240220 Cigarettes containing 
tobacco  545 520 588 522 6.6 5.8 6.5 5.9 
HS 180632 Chocolate and other food 
preparations containing cocoa: other, 
in blocks, slabs or bars: -- Not filled  401 431 449 417 4.8 4.9 4.9 4.8 
HS 180690 Chocolate and othe r food 
preparations containing cocoa: - Other  238 250 272 302 2.9 2.8 3.0 3.4 
HS 190110 Malt extract; food 
preparations of flour, groats, meal, 
starch or malt extract; - Preparations 
for infant use, put up for retail sale  216 273 275 279 2.6 3.1 3.0 3.2 
HS 090122 Coffee roasted: -- 
Decaffeinated  183 194 184 195 2.2 2.2 2.0 2.2 
HS 170490 Sugar confectionery, not 
containing cocoa: - Other  131 138 143 160 1.6 1.6 1.6 1.8 
Total agricultural importsa 11,001  11,601  11,638  11,120  100.0  100.0  100.0  100.0  
Subtota l for top 10b 3,205  3,201  3,239  3,094  29.1 27.6 27.8 27.8 
HS 220421 Wine of fresh grapes: -- In 
containers holding 2 l or less  835 878 821 752 7.6 7.6 7.1 6.8 
HS 090111 Coffee not roasted: -- Not 
decaffeinated  593 501 529 606 5.4 4.3 4.5 5.4 
HS 210690 F ood preparations: - Other  458 433 397 357 4.2 3.7 3.4 3.2 
HS 190590 Bread, pastry, cakes, 
biscuits and other bakers' wares: - 
Other  299 329 338 313 2.7 2.8 2.9 2.8 
HS 040690 Cheese and curd: - Other 
cheese  212 221 227 198 1.9 1.9 2.0 1.8 
HS 060290 Other  live plants: - Other  224 227 215 188 2.0 2.0 1.8 1.7 
HS 180400 Cocoa butter, fat and oil  104 111 184 186 0.9 1.0 1.6 1.7 
HS 220410 Sparkling wine  181 183 190 178 1.6 1.6 1.6 1.6 
HS 230910 Dog or cat food, put up for 
retail sale  167 175 177 164 1.5 1.5 1.5 1.5 
HS 180690 Chocolate and other food 
preparations containing cocoa: - Other  132 143 160 152 1.2 1.2 1.4 1.4 
a Agriculture (WTO definition).  
b Products are ranked according to 2015 values.  
Source:  WTO Secretariat's calculations, based on UNSD Comtra de. 
 
  
  WT/TPR/S/355 • Switzerland and Liechtenstein  
 
- 176 - Table A4. 2 WTO tariff quotas for agricultural products, 2015 and 2016  
  Applied MFN tariff: In -quota tariff 
(%) Applied MFN tariff: Out -of-quota tariff 
(%) Imports under tariff quotas in 2015b 
As reported in 2016 tarif f 
schedule (tariff range)  AVEa As reported in 2016 tariff 
schedule (tariff range)  AVEa Tariff quota 
quantity  In-quota 
imports  2015 
fill 
rate 
(%) 
(1) Live horses, asses, mules and hinnies  3-120 SwF/each  0.5 900–3,834 SwF/each  60.3 3,322 (units)  3,781 (unit s) 114 
(2) Live bovine animals  60 SwF/each  2.8 1,275 -2,500 SwF/each  85.6 20 (units)  1,245 (units)  6,225  
(3) Live swine  10-33 SwF/each  0.3 1,000 -1,309 SwF/each  61.5 50 (units)  13 (units)  26 
(4) Live sheep and goats  3-5 SwF/each  1.2 59.5-122 SwF/each  27.5 187 (units)  489 (units)  261 
(5) Animals for slaughter; meat mainly 
 produced on the basis of coarse fodder  25-95 SwF/each;  
20-375 SwF/100 kg gross  25.2 59.5-1,309 SwF/each;  
68-2,212 SwF/100 kg gross  173.2  22,500 (tonnes)  46,249 (tonnes)  206 
(6) Animal s for slaughter; meat mainly 
 produced on the basis of concentrated 
 fodder  40-63 SwF/each;  
30-225 SwF/100 kg gross  8.3 1309 SwF/each;  
55-3,140 SwF/100 kg gross  142.8  54,482 (tonnes)  55,426 (tonnes)  102 
(7) Dairy produce, in milk equivalent  18-50 SwF/10 0 kg gross  10.2 40-1,642 SwF/100 kg gross  131.2  527,000 (tonnes)  686,141 
(tonnes)  130 
(8) Casein  4 SwF/100 kg gross  0.9 553.1 -909 SwF/100 kg gross  155.4  697 (tonnes)  915 (tonnes)  131 
(9) Birds' eggs, in shell  50 SwF/100 kg gross  14.9 371 SwF/100 kg gross  52.5 33,735 (gross 
tonnes)  31,929 (gross 
tonnes)  95 
(10) Dried egg productsc 255 SwF/100 kg gross  34.6 500-1,596 SwF/100 kg gross  25.5 977 (gross 
tonnes)  877 (gross 
tonnes)  90 
(11) Egg products other than driedc 79 SwF/100 kg gross  33.9 134-420 SwF/100 kg gross  33.4 6,866 (gross 
tonnes)  7,578 (gross 
tonnes)  110 
(12) Bovine semen  0.1 SwF/usual unit  0.8 5 SwF/usual unit  75.8 20,000 (doses)  385,456 (doses)  1,927  
(13) Cut flowers  12.5-25 SwF/100 kg gross  2.7 81-196 SwF/100 kg gross  7.5 4,590 (gross 
tonnes)  8,306 (gross 
tonnes)  181 
(14) Seed potatoes, potatoes for processing, 
 table potatoes, potato products (in 
 potato equivalent)  1.4-70 SwF/100 kg gross  19.8 44-785 SwF/100 kg gross  116.2  22,250 (tonnes)  37,281 (tonnes)  168 
(15) Fresh vegetables  0-10 SwF/ 100 kg gross  5.2 85-1,756 SwF/100 kg gross  129.8  166,076 (tonnes)  217,651 
(tonnes)  131 
(16) Frozen vegetables  55 SwF/100 kg gross  37.5 170 SwF/100 kg gross  118.7  4,500 (tonnes)  4,737 (tonnes)  105 
(17) Fresh apples, pears and quinces  2-5 SwF/100 kg gross  2.3 133-153 SwF/100 kg gross  106.7  15,810 (tonnes)  8,380 (tonnes)  53 
(18) Fresh apricots, cherries, plums and 
 sloes 3-10 SwF/100 kg gross  1.8 102-255 SwF/100 kg gross  70.9 16,340 (tonnes)  18,494 (tonnes)  113 
(19) Other fresh fruit  3-5 SwF/100 kg gross  0.6 255-510 SwF/100 kg gross  62.6 13,360 (tonnes)  17,433 (tonnes)  130 
(20) Fruit for cider  2 SwF/100 kg gross  13.8 17-21 SwF/100 kg gross  76.9 172 (tonnes)  4 (tonnes)  2 
(21) Seed fruit products (in seed fruit 
 equivalent)  9-100 SwF/100 kg gross  30.6 82-260 SwF/100 kg gross  72.9 244 (tonnes)  1,310 (tonnes)  537 
(22) Grapes for pressing and grape juice  34-100 SwF/100 kg gross  43.0 3.47-4.3 SwF/litre;  
272-782 SwF/100 kg gross  107.8  100,000 
(hectolitres)  66,034 
(hectolitres)  66  
  WT/TPR/S/355 • Switzerland and Liechtenstein  
 
- 177 -   Applied MFN tariff: In -quota tariff 
(%) Applied MFN tariff: Out -of-quota tariff 
(%) Imports under tariff quotas in 2015b 
As reported in 2016 tarif f 
schedule (tariff range)  AVEa As reported in 2016 tariff 
schedule (tariff range)  AVEa Tariff quota 
quantity  In-quota 
imports  2015 
fill 
rate 
(%) 
(23), (24), (25) White wine an d red winec 34-50 SwF/100 kg gross  20.1 1.08-3.27 SwF/litre  15.3 1,700,000 
(hectolitres)  1,602,052 
(hectolitres)  94 
(26) Durum wheat, undenatured  1 SwF/100 kg gross  2.4 30 SwF/100 kg gross  62.5 110,000 (tonnes)  64,482 (tonnes)  59 
(27) Bread grains, other  cereals and cereal 
 products suitable for use for human 
 consumption  18 SwF/100 kg gross  20.7 0%; 38 -40 SwF/100 kg gross  46.0 70,000 (tonnes)  89,112 (tonnes)  127 
(28) Coarse grains for human consumption  0%; 2.5 -3 SwF/100 kg 
gross  5.6 20 SwF/100 kg gross  29.9 70,000 (tonnes)  35,484 (tonnes)  51 
a Ad valorem  equivalents (AVEs) were estimated based on 2015 import data at the HS 8 -digit level. If no import data were available for 2015, 2014 import data 
were used in calculations  
b 2015 imports under tariff quo ta from WTO notification (G/AG/N/CHE/77), 8 November 2016.  
c The AVE of in -quota tariffs is higher than the AVE of out -of-quota tariffs because of different unit prices used in the calculations.  
Source:  WTO Secretariat calculations, based on data provided  by the authorities; and WTO notification (G/AG/N/CHE/77), 8 November 2016.  
 
 
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