WT/TPR/M/355  
11 July 2017  
(17-3714) Page: 1/70 
Trade Policy R eview Body  
16 and 18 May 2017   
 
  TRADE POLICY REVIEW  
SWITZERLAND AND LIECHTENSTEIN  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Juan Carlos Gonzalez  (Colombia)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE S OF SWITZERLAND AND 
LIECHTENSTEIN   ................................ ................................ ................................ ..............  4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ..............  11 
4  STATEMENTS BY MEMBER S ................................ ................................ ........................  14 
5  REPLIES BY THE REPRE SENTATIVE S OF SWITZERLAND AND LIEC HTENSTEIN  
AND ADDITIONAL COMME NTS................................ ................................ ........................  62 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  69 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Switzerland and Liechtenstein  are reproduced in document WT/TPR/M/ 355/Add.1  and 
will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The fifth joint Trade Policy Review of Switzerland and Liechtenstein was held on 16 and 
18 May 2017. The Chairperso n, H.E. Mr. Juan Carlos Gonzalez  (Colombia) welcomed the 
delegation of Switzerland headed by Mrs. Marie -Gabrielle Ineichen -Fleisch, State Secretary for 
Economic Affairs; the delegation of Liechtenstein headed by H.E. Ambas sador Peter Matt; and the 
discussant, H.E. Ambassador David Walker ( New Zealand ). 
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Switzerland and Liechtenstein  was cont ained in 
document WT/TPR/G/355  and that of the  WTO Secretariat in WT/TPR/S/355 . 
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
United States; China; Ukraine; Republic of Moldova; Australia; Mexico; Norway; Europea n Union; 
Kingdom of Saudi Arabia; New Zealand; Brazil; Hong Kong, Ch ina; Colombia; Argentina; 
Costa  Rica; Malaysia; El Salvador; Chinese Taipei; Canada; Guatemala; and Ecuador . The 
following delegations submitted written questions after the deadline: Chile; Dominican Republic; 
Singapore; Thailand; Japan; Republic of Korea; and Turkey .  
1.4.  In 2013, Members had highlighted that Switzerland and Liechtenstein rank ed among the 
world 's most innovative and competitive economies in spite of high costs. They had apprec iated 
Switzerland and Liechtenstein 's generally open trade regimes and their strong support for the 
multilateral trading system and its negotiating forum. Nonetheless, agriculture had stood out as an 
area that could benefit greatly from a more competitive environment. Members had also identified 
certain services sectors where further liberalization would be of interest to them.  
1.5.  The period under review had been  marked by developments in monetary policy. Turbulence 
in world markets had frequently induced a f light into Swiss francs, and such persistent pressures 
had led the Swiss National Bank to abandon its minimum exchange rate versus the euro in early 
2015. The initial economic contraction caused by currency appreciation had been  quickly reversed, 
and the S wiss economy had resumed growth at a steady, though modest, pace. The Liechtenstein 
economy had also showed  remarkable resilience in a challenging economic environment.  
1.6.  Both Switzerland and Liechtenstein had formally accepted the Trade Facilitation Agreem ent in 
2015. Liechtenstein had become the first Member to ratify the revised Agreement on Government 
Procurement in 2013, while Switzerland 's accession to the revised agreement might  take place 
later in 2017 . Pending approval by the Swiss Federal Parliamen t, tariff reductio ns stemming from 
the ITA II had  been applied on a provisional basis since 1 January 2017.  
1.7.  Switzerland and Liechtenstein were both members of the European Free T rade Association 
(EFTA) and had relied on the EFTA Framework to conclude an e xtensive network of free trade 
agreements with non -EU partners. During the period under review, new EFTA FTAs had entered 
into force with certain Central American States, Bosnia and Herzegovina, and the Gulf Cooperation 
Council. Other agree ments had  been s igned but were not yet in force. Switzerland 's bilateral FTA 
with China had taken  effect in mid -2014. Its provisions relat ing to trade in goods also applied  to 
Liechtenstein by virtue of the 1923 Swiss -Liechtenstein Customs Union Treaty.  
1.8.  Switzerla nd remain ed an attractive destination for foreign direct investment. Most sectors 
were open, but state monopolies restrict ed investment in railways, some postal services, and 
certain insurance services.  
1.9.  Developments in trade policy instruments over the last four y ears were reflected in the 
written questions posed by Members in advance of this meeting. The tariff regime was unique in 
its reliance on specific duty rates for all imports. As a consequence, low -priced imports face d 
higher ad valorem protection than high -priced imports of identical or similar items. High 
agricultural tariffs provide d scope for further trade liberalization, which might  also reduce the 
economic impact of the present complex system of tariff quotas. Certain imported goods were 
subject to lev ies to finance compulsory reserve stock requirements for those goods. Although the 
basic features of the trade regime were largely unchanged, s ome liberalization measures had  been 
taken and further measures were under consideration . For example, tariffs ha d been suspended on WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  certain textile items until the end of 2019, an d Switzerland/Liechtenstein had  joined a new system 
that simplified  the verification of origin for imports from LDCs.  
1.10.   Regarding non -tariff measures , Switzerland had  been harmonizing techni cal requirements 
with the EU. A new food safety regime had entered into force on 1 May 2017. From now on, all 
safe food items were to be allowed unless they had  been explicitly prohibited. In the area of 
trademarks and geographical indicati ons, "Swissness legislation " had been adopted to improve the 
protection of the Swiss brand at home and abroad.  
1.11.   As for se ctoral policies, Switzerland had  been implementing its Agricultural Policy 2014 -17, 
which involve d a rearrangement and fine tuning of direct pa yments. D omestic procedures had  
been initiated to ensure the elimination of agricultural export subsidies by January 2019. 
Nevertheless, some Members continue d to call for more market -oriented reforms.  
1.12.   Members had shown  interest in Switzerland 's "Energy 2050 Strate gy", particularly due to its 
emphasis on renewable energy. In financial services, highe r capital requirements now applied  to 
systemically important banks, and anti -money -laundering legislation had  been reinforced. 
Switze rland continued  to pursue a liberal policy in air transport services, and the ref orm of Swiss 
postal services had  been fully implemented.  
1.13.   This meeting might  not provide answe rs to all questions Members had  raised, but the 
Chairperson hoped it would give Members an opportunity to reflect mor e deeply on issues of 
interest and relevance to the multilateral trading system. He looked forward to an active and 
fruitful exchange.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE S OF SWITZERLAND 
(MRS.  MARIE  GABRIELLE INEICHEN -FLEISCH) AND LIECHTE NSTEIN (H.E. AMBASSADOR 
PETER MATT ) 
MRS.  MARIE -GABRIELLE  INEICHEN -FLEISCH  
2.1.  We are most grateful for your introductory outline. It is a pleasure for us to be taking part, 
for the sixth time, in this Trade Policy Review of Switzerland. We are honoured to take the floor 
today before such a large audience. We are also pleased to be able to conduct this exercise jointly 
with our friends from Liechtenstein. Thank you for taking the time to participate in this process 
which is important to us.  
2.2.  We particularly thank Ambassador D avid Walker, Permanent Representative of New Zealand 
to the WTO, who honours us by acting as discussant in this exercise.  
2.3.  Allow me, Mr  Chairperson, to note also the excellent report by the WTO Secretariat, which 
clearly and comprehensively describes the ec onomic and trade policies of Switzerland and 
Liechtenstein. The Secretariat has shown exemplary professionalism in conducting the process of 
drafting its report. The discussions between the Swiss officials and our colleagues in the Trade 
Policies Review Di vision have been constructive and enriching. We are most grateful to the 
Secretariat.  
2.4.  Mr Chairperson, Switzerland fully appreciates the trade policy review mechanism as an 
essential pillar of WTO activity. From the outset, the reviews have helped improve u nderstanding 
of Members' trade policies. The exercise highlights the expectations and wishes of the peer 
reviewers. Their statements and questions facilitate identification of the points of convergence 
which form a foundation, as it were, of shared values.  In that respect, the exercise not only 
benefits the Member under review. It is also important to the Organization as a whole as it focuses 
attention on political guidelines that could be used advantageously to strengthen the multilateral 
trading system.  
2.5.  Allow me at this point to commend the recent assessment and adjustment of the trade policy 
review mechanism carried out under the chairmanship of Ambassador Irene Young, Permanent 
Representative of Hong Kong, China. This exercise produced a welcome consensu s on various 
matters. We hope that these changes will be confirmed and implemented at the earliest.  
2.6.  We have received more than 300 questions from 28 Members, not to mention numerous 
sub-questions, a considerable number of which arrived after the 2 May dead line. We have 
endeavoured to reply to all of them before today's meeting. At Thursday's meeting, we shall 
attempt to clarify any new points raised today.  
Trade policy and strengthening of competitiveness  
2.7.  Since the last trade policy review in 2013, Switzerl and has been faced with a demanding 
economic environment. It has suffered from the timid economic recovery since the financial crisis, 
particularly in the euro zone. It has also endured the repercussions of the upward pressures on the 
Swiss franc resulting , inter alia , from the weakness of the euro. Despite these unfavourable 
conditions, the Swiss economy has proved resilient, showing solid growth for the period 
2013-2016. Indeed, the strength of domestic demand compensated for the temporary slide in our 
foreign trade figures. We have also been able to count on the diversification of economic activities, 
a flexible labour market, sound public finances and the country's political stability.  
2.8.  Switzerland has a generally open economy. In 2015 and 2016, more than  83% of our imports 
were duty free. And in 2014, the average customs duty on industrial goods was barely 1.8%. 
Compared with the world average, import costs per container at the Swiss border are two  times 
lower, the customs clearance process is three times  shorter and only half as many documents are 
required by our customs offices.  
2.9.  Moreover, Switzerland has continued its agricultural reform process. The new agricultural 
policy, in force since 2014, directs domestic support measures more specifically towards  the 
promotion of natural resources and security of supplies. However, in the light of the geographical WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  constraints characterizing the agricultural sector and the demands of civil society, border 
protection measures and domestic support continue to be impo rtant elements of our agricultural 
policy.  
2.10.   With exports representing some 60% of the gross domestic product, Switzerland is one of 
the countries ' most firmly integrated into the world economy. It owes its prosperity to the 
international competitiveness of its enterprises, with their capacity to innovate and their 
specialization in the production of high value -added goods and services.  
2.11.   In order to maintain its advantages, Switzerland conducts a trade policy based on thinking 
within the broader context of its  growth policy. Central to this policy are increased labour 
productivity and the strengthening of competitiveness and innovative spirit.  
2.12.   In pursuit of these goals, our trade policy aims at promoting and guaranteeing open 
markets, while contributing to sust ainable development. We are working to liberalize trade and 
international investment, while seeking to mitigate the negative effects of growth. In this 
connection, we pay particular attention to the sustainability and coherence of the different 
internation al policies.  
2.13.   Parallel to the opening up of new markets, import facilitation through the elimination of 
trade barriers is of growing importance to Swiss companies. With the global boom in supply 
chains, goods cross borders – mostly in the form of intermedia te products – more frequently than 
before. Tariff and non -tariff barriers therefore have a greater accretion rate and generate 
supplementary costs which reduce the international competitiveness of domestic producers.  
2.14.   On the other hand, import facilitation lowers transaction costs and strengthens competition 
on the domestic market. In short, it benefits both consumers and export firms buying intermediate 
goods. The latter are thus able to optimize both their production processes and their level of 
integratio n into global value chains.  
2.15.   In the case of Switzerland, import facilitation primarily entails a certification of customs 
procedures, a reduction in customs waiting times, or again the reduction of customs tariffs. The 
Government intends to study the advant ages and drawbacks of unilaterally eliminating customs 
duties on industrial products and of a selective reduction in customs duties in the agri -food sector.  
Multilateral trading system  
2.16.   A predictable, transparent and rules -based multilateral trading system is the lynchpin of our 
trade policy. We are unreservedly committed to maintaining and improving the system and to 
promoting the WTO as a guarantor of open international markets and solutions covering the whole 
of the international community. Our efforts ar e consistent with our international commitments as a 
whole, such as the United Nations 2030 Agenda and the 21st Conference of the Parties on Climate 
Change, held in Paris.  
2.17.   The last two Ministerial Conferences in Bali in 2013 and Nairobi in 2015 gave us the  
opportunity to demonstrate our attachment to the multilateral trading system. In Nairobi, in 
particular, Switzerland made a strong effort to join the consensus on export competition. This 
Ministerial Decision calls for radical reform which we are working on now.  
2.18.   It goes without saying that the tangible results achieved at the last two ministerial 
conferences are the fruit of efforts by all the Members. Our success has sent a strong message to 
all those who cast doubt on the WTO's credibility. Let us use th e Organization to meet the 
challenges we face from the structural changes to the global economy, starting with its 
digitization. Switzerland is ready to take an active part in this project, in accordance with the 
principles and long -term objectives of the WTO.  
2.19.   The WTO is also a forum for monitoring the proper implementation of the rules of the 
multilateral trading system. It plays a crucial role in stemming protectionist tendencies and 
resolving trade disputes on the basis of the law. The dispute settlement  mechanism undoubtedly 
stands at the heart of the system. Compliance with its decisions constitutes the best means of 
establishing the credibility of WTO rules. These functions, which relate to the management and WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  furtherance of past gains, are of fundament al importance. However, the proper conduct of the 
WTO's ordinary work inherently depends on the transparency of trade policies and practices. It is 
therefore essential that Members rigorously comply with their notification obligations. Naturally, 
this inju nction also applies to Switzerland.  
2.20.   Like other Members, Switzerland endeavours to facilitate the debate and to build bridges 
between the protagonists. It is in this spirit that we host the traditional informal WTO ministerial 
gathering on the sidelines of the World Economic Forum in Davos. We also coordinate informal 
groups such as the G10 or the W52 Coalition, as well as the "Friends of the System". The latter 
group brings together developed and developing countries with the aim of preserving and 
enhancing  the multilateral trading system. In addition, our representatives regularly chair various 
WTO bodies and processes.  
Preferential trade  
2.21.   The conclusion of preferential trade agreements complements Switzerland's WTO 
commitments. This policy does not divert u s from the multilateral trading system. On the contrary, 
it strengthens the system. In fact, free trade agreements contribute to the global opening of 
markets. It is our hope that, over time, the bilateral and regional efforts at liberalization will 
gradua lly be consolidated and multilateralized in the WTO.  
2.22.   Switzerland's network of free trade agreements is a central plank of its foreign economic 
policy. The European Union is by far the most important of our preferential trading partners, 
accounting for 54% of our goods exports and 72% of our imports. In the circumstances, the 
bilateral relationship with the European Union continues to be a priority for the Swiss Government. 
Since our last trade policy review, the bilateral framework of relations between Swit zerland and 
the European Union has been extended to Croatia, following the latter's accession to the 
European  Union in 2013. Negotiations on institutional aspects have been held since 2014. Other 
subjects, such as the electricity market and food security, are under discussion.  
2.23.   Our traditionally excellent bilateral relations with the European Union have been affected by 
the acceptance of a popular initiative on immigration, which was adopted on 9 February 2014. This 
created a general climate of uncertainty. In line with their resolve to comply with Switzerland's 
international commitments, the Government and the parliament have implemented the results of 
this vote on the basis of respect for the existing agreements with the European Union, in particular 
the ag reement on the free movement of persons.  
2.24.   The European Union is obviously not Switzerland's only free trade partner. We also attach a 
great deal of importance to extending and deepening our worldwide network of free trade 
agreements. At the end of 2016, Swi tzerland had 28 free trade agreements involving 
38 non-member countries of the European Union and EFTA. Since our last review, Switzerland and 
its EFTA partners have signed 6 new agreements with Costa Rica, Panama, Guatemala, Bosnia and 
Herzegovina, Georgi a and the Philippines. A seventh purely bilateral agreement has been 
concluded between Switzerland and China. In association with its EFTA partners, Switzerland is 
currently conducting negotiations with Ecuador, India, Indonesia, Malaysia and Viet Nam. 
Negotiations with Mercosur will begin in the near future. Negotiations aimed at further developing 
and updating existing agreements with Chile, Mexico and Turkey are also under way. Other 
discussion processes have started with Algeria, Thailand, Russia, Belar us and Kazakhstan.  
Trade and development  
2.25.   The integration of developing countries into the global economy is one of the three pillars of 
Switzerland's foreign economic policy. Trade promotion is moreover a key objective of our 
development cooperation for th e period 2017 -2020. We are thus helping to strengthen the 
framework conditions for the promotion of international trade and investment in 20 or so 
countries. This commitment is given practical shape through multilateral or bilateral initiatives. Its 
aim is  to assist small and medium -sized enterprises in beneficiary countries to create jobs and 
bolster their export capacity. Switzerland also supports many of the least developed countries in 
meeting international standards and technical requirements.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  Trade and sustainability  
2.26.   In accordance with the United Nations 2030 Agenda, our contributions to trade and 
development form part of our long -term strategy in favour of sustainable development. This 
strategy covers protection of the environment and the challenges  associated with climate change, 
as well as the promotion of social standards. In our view, the WTO's work must be harmonized 
with other international policies, including environmental and social policies in particular.  
2.27.   Switzerland promotes such harmonizat ion, for example through its active participation in the 
work of the Committee on Trade and Development and the negotiations on an Environmental 
Goods Agreement. In the wake of the considerable efforts made by the participants in these 
negotiations, we hop e that a final consensus can be reached in the near future. In line with 
Sustainable Development Goal 14, target 6, we support the multilateral and plurilateral processes 
dealing with fisheries subsidies. In this context, I wish to emphasize that Switzerla nd recently 
adopted regulations prohibiting illegal, unreported and unregulated fish imports.  
2.28.   Outside the WTO context, Switzerland is committed to eliminating fossil fuel subsidies and 
favours the prohibition of mercury exports under certain conditions. I t supports the UNCTAD 
Programme on Trade in Organic Products and the UNIDO Programme on Clean and 
Resource -Efficient Modes of Production. Since as far back as 2010, all our free trade agreements 
have contained a chapter on trade and sustainable development . With certain partners, 
Switzerland has entered into social dialogues which accompany the implementation of our free 
trade agreements. Last year, the Government adopted a national action plan on the 
implementation of the United Nations Guiding Principles on Business and Human Rights.  
Next steps  
2.29.   In the future, Switzerland will resolutely continue to champion sustainable development and 
the strengthening of the multilateral trading system.  
2.30.   Mr Chairperson, we are not unaware that the WTO is currently going t hrough a difficult 
period; that numerous uncertainties weigh on the outcome of the work in progress. But we must 
not be disconcerted by these circumstances. It is important at this stage to better understand the 
conflict situations confronting us and to re flect on possible solutions. In the autumn it will be time 
to take stock and determine the shape and balance of the potential outcomes from the Buenos 
Aires Conference.  
2.31.   The Eleventh WTO Ministerial Conference will provide the international community with t he 
opportunity to respond to the challenges posed by the changes in the global economy. The 
digitization of the economy, the interconnections between trade and investment and SMEs' 
difficulties of integration into the global economy are aspects that we can not ignore. With regard 
to the necessary harmonization of global policies, fisheries subsidies are a relevant and promising 
theme.  
2.32.   Obviously, we will not neglect the long -standing items on the WTO negotiating agenda. We 
are aware that domestic support for  agriculture is an important issue for many Members. 
Switzerland is prepared to make its contribution, provided however that its effort is proportional to 
that of the Members as a whole. We are also interested in advancing the negotiations on services, 
particularly as regards domestic regulations. In addition, long -term progress in other areas 
covered by the Doha Mandate, such as market access (NAMA) and intellectual property, remain 
important to Switzerland.  
2.33.   Success in Buenos Aires depends on the efforts of all of us and is the responsibility of each 
of us. Switzerland has time and again shown its commitment to promoting consensus. The next 
Ministerial Conference will be no exception. We will continue to work in favour of a strong, 
inclusive and rules -based multilateral trading system. Our contributions will be consistent with our 
trade policy which aims at increasing the competitiveness of our enterprises and reducing our main 
weaknesses, particularly the inadequate growth of productivity.  
2.34.   In conclusion, Mr Chairperson, together with my colleague from Liechtenstein, I wish to 
contribute to a frank and open dialogue on the review of our two countries' trade policies. This WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  frankness and openness are necessary to tackle complex questions for which joint solut ions must 
be found in the interests of the multilateral system.  
2.35.   I now pass the floor to Ambassador Peter Matt who will address matters specific to 
Liechtenstein. Thank you for your attention.  
H.E.  AMBASSADOR  PETER  MATT  
2.36.   Let me start by thanking you, Chairma n Ambassador Gonzalez and State Secretary 
Ineichen -Fleisch, for your statements and introductions. We are very pleased to participate in this 
fifth joint trade policy review together with Switzerland. I would like to use this opportunity to 
thank our Swiss  colleagues for their valu able support and excellent co operation throughout the 
whole TPR process.  
2.37.   My thanks also go to His Excellency, Ambassador David Walker from New Zealand, who 
accepted to act as discussant for this joint review.  
2.38.   Last but certainly no t least I would like to t hank the WTO Secretariat for the good 
cooperation, it was a pleasure to work with the responsible team, and for the excellent report it 
has produced. It has succeeded in describing the particularities of Liechtenstein – which are q uite 
a few indeed - in a concise and comprehensive manner.  
2.39.   In principle, I would not have much to add to the Secretariat 's report, complemented by our 
policy statement. Nevertheless, let me highlight or add som e information and remarks to the se 
reports and  to what State Secretary Ineichen -Fleisch just said. 
Liechtenstein: a  small but economically successful country  
2.40.   Liechtenstein is – with a surface of about 2/3 of the Canton of Geneva and a resident 
population of about 38,000 - a very small country. Neverth eless, it has a highly developed, 
remarkably diversified economy. The number of jobs equals almost the number of inhabitants and 
more than half of the workforce commutes daily from the neighbo uring regions to Liechtenstein. 
Altogether , close to 70 % of all  jobs are held by non -Liechtenstein nationals.  
A highly developed and competitive industrial sector  
2.41.   The fact that Liechtenstein is a highly industrialized country and home of several world 
leaders in their respective fields of activity is often little know n. The high proportion of the 
manufacturing sector is striking: It contributes about 41% to GDP and employs as well over 40% 
of the total workforce. Investments by the Liechtenstein industrial companies – by the private 
sector - in research and development  represents in percentage of GDP certainly one of the highest 
figures worldwide. Businesses and products, focused on high -tech niche products, are broadly 
diversified, as are the export markets. About 1/3 of the production is exported to markets outside 
Europe. An interesting feature is also that Liechtenstein 's industrial companies have - as an overall 
average - 3 to 4 times more employees on their payroll abroad than at home. Let me just mention 
one example, for instance Hilti, the world leader of fasteni ng systems for the building industry, as 
many others in Liechtenstein,  a 100% family owned company, employs 1,500 people in 
Liechtenstein, but over 20,000 worldwide.  
2.42.   Another important sector for Liechtenstein 's economy is the financial services sector, mai nly 
banking and insurance services, which represents a considerable 25% of GDP. The services sector 
as a whole is however smaller than in other European countries. Striking is also the comparatively 
low share of agriculture and forestry.  
Liechtenstein high ly dependent on international trade  
2.43.   Liechtenstein is highly, almost entirely, dependent on imports and exports  due to the very 
small domestic market . In order to secure favo urable framework conditions for international trade, 
Liechtenstein therefor e seeks strong international co operation and partnerships and is, not 
surprisingly, a strong supporter of the multilateral trading system.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  2.44.   Four pillars form the legal basis of Liechtenstein 's Foreign Economic Policy, namely:  
 the Customs Union Treaty with Switzerl and since 1923 ; 
 the membership in the agreement on the European Economic Area (EEA) which provides full 
participation in the EU 's internal market;  
 membership of the World Trade Organization (WTO);  and 
 Membership  of the European Free Trade Association (EFTA ). 
2.45.   Let me in the following briefly touch upon the Customs Union Treaty and the EEA 
membership in particular.  
The Customs Union with Switzerland  
2.46.   In application of the 1923 Customs Union Treaty, Liechtenstein became an integral part of 
the Swiss customs ter ritory. Therefore, as far as trade in good s, including agricultural goods  is 
concerned, trade policy measures affecting imports and exports, including TBT and SPS measures 
are formulated by Switzerland and also applied in Liechtenstein. All these matters a re also 
negotiated by Switzerland on b ehalf of Liechtenstein in this O rganization as well as in EFTA or 
outside EFTA as well . In the same way, as far as trade in goods is concerned, commercial treaties 
and trade agreements concluded by Switzerland also app ly to Liechtenstein.  
2.47.   However, Liechtenstein has its own regulatory framework in trade in services, government 
procurement, investment, and in all areas of intellectual property rights except patents. In these 
areas, our bilateral relationship with Switzerl and is governed by the EFTA Convention.  
Liechtenstein: a  member of the European Economic Area  
2.48.   The EEA Agreement is the legal basis for the economic cooperation of Liechtenstein with 
currently 30 other member S tates of the European Economic Ar ea. As genera lly known in this 
House, the EEA is based on the principle of the four freedoms (free movement of goods, services, 
capital and persons) with uniform and common rules go verning competition, including S tate aid. In 
addition, the EEA agreement covers cooperat ion in other important areas, known as flanking and 
horizontal policies, as well as participation in numerous EU program mes and EU agencies.  
2.49.   Liechtenstein is part of the EU 's Internal Market – a market of 500 million  people - and 
therefore all relevant EU  legislation is applicable in Liechtenstein. Accordingly , for example  
banking, insurance, securities and accounting legislation is based on the relevant EU regulations 
and directives. By now, the impressive number of more than 8,700 EU acts has been taken over 
into national law . The EEA Agreement is dynamic, i.e. it provides for the on -going inclusion of new 
EU legislation in all policy areas covered by the EU 's Internal Market. As a consequence of this 
agreement, a large part of Liechtenstein 's own economi c legislation is based on or inspired by the 
EU law. Proper implementation of the Internal Market legislation is ensured through the two -pillar 
structure of the EEA, i.e. the monitoring by the EFTA Surveillance Authority and the judicial 
functions of the E FTA Court.  
Liechtenstein part of two internal markets  
2.50.   This context is also noteworthy and a special feature of Liechtenstein to be part of two 
internal markets, the Swiss and the European one. Both, the Customs Union with Switzerland and 
the participation  in the EEA Agreement are success stories for Liechtenstein. Therefore , goods 
produced either in conformity with Swiss or EEA regulations may be sold in Liechtenstein. The 
good functioning of this arrangement is assured with a specific Market Control and S urveill ance 
Mechanism.  
Membership of WTO and EFTA  
2.51.   Liechtenstein 's membership to WTO and EFTA are the other two very important pillars of its 
foreign trade policy. Liechtenstein as a small and open economy attaches great importan ce to a WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  strong and rules bas ed multilateral trading system . We are committed to contribute to a successful 
conclusion of MC11 in Buenos Aires and to the strengthening of the multilateral trading system in 
general.  
2.52.   Liechtenstein 's Membership to WTO is complemented by its membership t o EFTA. 
Liechtenstein has negotiated in the framework of the EFTA 2 7 free trade agreements with 
38 countries. The network of FTAs within EFTA is a central corne rstone of Liechtenstein 's foreign 
trade policy.  
Major changes to the trade regime since the last  TPR in 2008  
2.53.   The long standing liberal economic policy of the Liechtenstein Government has been and 
remains based on the principle of self -dependent economic a ctors, which means S tate 
interventions are limited to the establishment of framework conditions fa vourable to 
entrepreneurship.  
2.54.   There have been no major changes to the trade regimes as such, but a number of 
adaptations in particular in reaction to the changing international environment and regulatory 
framework concerning the financial services sector.  
2.55.   In accordance with the "Liechtenstein Declaration " of 12 March 2009, Liechtenstein is , inter 
alia, actively participating in the work of the Global Forum on Transparency and Exchange of 
Information for Tax Purposes and has been assigned a rating of "Largel y Compliant " in the second 
phase of the Peer Review. Until now, Liechtenstein has negotiated and concluded 17 Double 
Taxation Agreements according to the OECD Standard, concluded 27 Tax Information Exchange 
Agreements (TIEA), ratified the Multilateral Conv ention on Administrative Assistance in Tax 
Matters in August 2016 and signed the Multilateral Competent Authority Agreement on Automatic 
Exchange of Financial Account Information ( "MCAA ") in 2014. As an early adopter to implement 
the global standard on aut omatic exchange of information, Liechtenstein has concluded an 
Agreement to Automatic Exchange of Information in Tax Matters (AEOI) with the EU. This 
agreement entered  into force on 1 January 2016. As of 1 January 2017 , Liechtenstein 's AEOI 
network compris es a total of 60 exchange partners. A further extension is planned with effect from 
1 Janu ary 2018 for exchanges in 2019.  Liechtenstein has also joined the Inclusive Framework of 
the OECD to implement BEPS measures.  
Fiscal consolidation  
2.56.   After structural p roblems were foreshadowed in the fiscal programming for 2010 -2014 due 
to, amongst other factors, the economic and financial crisis, the general demographic 
development, and structural changes in the financial sector, fiscal consolidation was made one of 
the priorities of the Liechtenstein Government  during the reporting period . On the basis of three 
fiscal stabilization packages, state budget consolidation measures were successfully implemented 
leading to savings of about SwF 162 million  and an increase of revenues of SwF 59 million . And 
there you have to bear in mind that the overall budget is around SwF 800 million. In 2014, 2015 
and recently again in 2016, the state budget posted a surplus. Liechtenstein focuses now on 
securing a balanced state budget. Th e sound budgetary position of Liechtenstein was one decisive 
factor for the recent confirmation of its triple -A rating from Standard and Poor 's.  
2.57.   Finally, compared to the last Tra de Policy Review of Switzerland and Liechtenstein,  the 
portion of non -Liechte nstein citizens of the resident and working population has slightly increased. 
Therefore, the Government does not see any leeway to ease restrictions concerning immigration 
and employment as also the special rules concerning the freedom of movement of pers ons, 
granted to Liechtenstein in the EEA, remain unchanged. Furthermore, in view of Liechtenstein 's 
geographic situation and in order to respect its rural character and preserve access to real estate 
for the resident population, the Government regulates in vestment into real est ate (this applies also 
for non -resident Liechtenstein citizens).  
2.58.   To conclude , let me re -iterate our strong commitment to the Trade Policy Review 
Mechanism. It is an important  opportunity to have an open dialogue and conversation abou t the 
trade policy of our two countries and to address complex issues we ha ve to find a common answer 
to. I am looking to a fruitful exchange of views. I thank you for your attention.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  I would like to join you Chair in welcoming  the delegations of Switzerland and Liechtenstein 
headed by State Secretary Marie -Gabrielle Ineichen -Fleisch  and Ambassador Matt, respectively, to 
the fifth joint Trade Policy Review of both Members (which I understand is also the seventh r eview 
in terms o f Switzerland).  I am honoured to be the Discussant for this Review.  
3.2.  Switzerland a nd Liechtenstein, by their own r eports, are strong supporters of the rules -based 
multilateral trading system as embodied in the WTO. Indeed, sitting here today in Geneva, we a re 
all witness to one very clear demonstration of Switzerland 's commitment to the WTO.  
3.3.  The reasons for the emphasis that both Switzerland and Liechtenstein place on the 
multilateral trading system are many – but can probably be summed up as  a display of th e 
principle of "enlightened self -interest ". 
3.4.  The Swiss report contains a pithy explanation of why trade is key for the  prosperity of the 
Swiss people. The exactly same reasons apply for Liechtenstein.  
3.5.  Switzerland has few resources so needs to import many of  the things its people rely on for a 
modern existence.  
3.6.  To finance those imports, Switzerland needs to export.  
3.7.  Beyond that, export markets allow Swiss firms to grow beyond the size that could be 
sustained by its domestic market alone and thus take advantage  of the opportunities for growth, 
jobs and prosperity that can be generated from the  associated economies of scale.  And Swiss 
consumers, through imports, gain advantage of similar economies of scale generated elsewhere.  
3.8.  If that sounds familiar, it should, as I suspect most WTO Members could substitute  their own 
name and ascribe to that statement . 
3.9.  Switzerland and Liechtenstein are highly integrated in trade and economic policy terms with a 
long-standing (90 years) Customs Union and a common currency, so it i s appropriate that this 
review is conducted jointly.  
3.10.   The period under review was a challenging one for both economies, marked by significant 
monetary policy developments as Switzerland sought to limit the appreciation of the Swi ss Franc.  
3.11.   In the face of th ese headwinds, however, their trade policy regimes have remained broadly 
stable with some  specific  initiatives to look to use trade -opening to mitigate price pressure in the 
economy.  
3.12.   In terms of Switzerland and Liechtenstein 's participation in the WTO, the re have been 
several developments  during the period under review.  
3.13.   Switzerland and Liechtenstein were early to come on board the Trade Facilitation Agreement 
being respectively 14th and 17th to formally approve the Agreement in September 2015.  
3.14.   Both Switzerl and and Liechtenstein are members of the Go vernment Procurement 
Agreement.  Liechtenstein, in 2013, was the first WTO Mem ber to ratify the revised GPA. 
Switzerland has yet to take that step pending approval of relevant legislation by the Federal and 
Cantona l levels. Several questions have been asked on the expected timeline for completion of this 
process.  
3.15.   Switzerland is among those WTO Members who maintain agriculture export subsidies to be 
phased -out in accordance with the Ministerial Decision in Nairobi . Switzerland advises that it 
expects to submit proposals to Parliament accordin gly in the course of this year.  Again, Members 
have expressed interest in understanding more about the nature and timing of this process.  
3.16.   Also from MC10  at Nairobi, Switzerland an d Liechtenstein are both participants in ITA  II with 
associated tariff outcomes to be applied this year.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  3.17.   Switzerland and Liechtenstein have continued to be active in efforts to advance international 
trade policy settings, both through multilateral negotiat ions at the WTO and through related 
initiatives such as the Trade in Services Agreement (TiSA) process.  
3.18.   Switzerland, in its report, places a lot of emphasize  on advancing coherence between trade 
and sustainable development including through negotiations at  the WTO for disciplines on fisheries 
subsidies and an Environmental Goods Agreement (EGA), and its active engagement in the Friends 
of Fossil Fuel Subsidies Reform process through G20 and APEC.  
3.19.   In terms of policy settings, Switzerland and Liechtenstein op erate generally open trade 
regimes with the exception of agricul ture and some services sectors.  In goods , as at 2016, 
average applied MFN tariffs on agriculture (30.8%) are more than 13 times the  average for 
non-agricultural products (2.3%).  
3.20.   The structure of the tariff is also unusual in its  reliance on specific tariffs. The system is 
relatively simple to administer - based on a fixed levy per kilogram of gross weight – but can have 
regressive price effects for consumers on lower value items.  As tables 3.2 (p. 46) and A4 .2 
(p. 176) of the Secretariat report illustrate, such a tariff structure can also have other 
unanticipated  effects, when expressed in AVE terms.  
3.21.   A number of Members have questioned what scope Switzerland and Liechtenstein see for 
further red uctions in agriculture tariffs and/or changes in the tariff structure, including in respect 
of the tariff -rate quota regime which can be highly complex in its operation.  
3.22.   In this context, it is interesting to note that as a result of their participation in various 
preferential arrangements – both with the E uropean Union and through FTAs with various other 
trading partners – MFN tariffs now encompass a relatively small (less than 20%) share of 
Switzerland and Liechtenstein 's external trade.  
3.23.   One policy develop ment during the period under review, which has attracted questions from 
a numbe r of Members, is the so -called "Swissness " legislation including its provisions on 
geographical trademarks.  
3.24.   As in the last review, t he Secretariat report again notes that Switze rland (a nd Liechtenstein) 
stand out as "high priced islands " in the European context – with prices in Switzerland on average 
45% higher than those in the E uropean Union (25% for goods and 60% for services). Yet, the 
economies remain successful – Switzerlan d has been rated first in the Global Competitiveness 
Index and the Global Innovatio n Index for the years 2013 -2016 which is an impressive 
achievement.  
3.25.   I suspect there are particular factors underpinning the circumstances of both economies that 
allow this s ituation to persist. At the same time though, neither economy is resting on its laurels.  
3.26.   In the context of this Trade Policy Review, it is perhaps particularly interesting to ponder the 
Growth Agenda 2016 -2019 adopted by the Swiss Government in June 2016. This agenda 
envisages the introduction of a range of measures designed to facilitate the role of imports in 
increasing competition in the domestic market.  
3.27.   With a number of questions from Members aga in highlighting relatively long standing areas 
of concern a midst a generally commendably open trade and investment regime – whether that be 
in the areas of tariffs, tariff -rate quotas, technical barriers to trade, services regulation, intellectual 
property, or competition policy - it will be interesting to conside r how the answers from 
Switzerland and Liechtenstein indicate those concerns might be addressed through measures 
adopted pursuant to this latest Growth Agenda and, at the next Review, to reflect on the extent to 
which they have been.  
3.28.   Personally , I have fou nd preparing for this Review a most interesting exe rcise. I have learnt 
a lot about both Switzerland and Liechtenstein. And to those who haven 't studied it as close as I 
may have , I commend the Secretariat report;  it really does contain an enormous amount of 
breadth and depth of information  on both economies. I have also  resolved that I must visit WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  Liechtenstein to learn even more. Meanwhile though, I wish Switzerland and Liechtenstein a 
successful Trade Policy Review.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4  STATEMENTS BY MEMBER S 
UNITED  STATES  
4.1.  The United States enjoys a close friendship and partnership with Switzerland and 
Liechtenstein across a range of issues based on shared values and principles, including a robust 
trade and investment relationship. Two-way goods trade between the United States  and 
Switzerland total led almost US$60 billion in 2016, and two -way services trade between the United 
States and Switzerland total led more than US$52 billion in 2015. The U.S. stock of foreign direct 
investment in Switzerland was more than US$150 billion i n 2015. Swiss FDI in the United States 
was more than US$250 billion in 2015. With regard to Liechtenstein, total two -way goods trade 
between the United States and Liechtenstein was more than US$300 million in 2016.  The U.S. 
stock of foreign direct investme nt in Liechtenstein was US$300 million in 2015.  
4.2.  As we have seen in previous reviews, the economies of Switzerland and Liechtenstein are 
among the world 's most advanced and prosperous, and both are characterized by high living 
standards and a highly skilled  labour force. Their trade regimes are amo ng the most liberal in the 
WTO.  However, as we have also seen in previous reviews, the agricultural sector remains highly 
protected from global competition despite its limited contr ibution to GDP and employment.  
4.3.  Many of the questions we pose today reflect our desire to see Switzerland and Liechtenstein 
take steps to promote market -oriented support for agriculture. We would note that as a result of 
various tariff and non -tariff measures, Switzerland enjoys a greater than 3 to 1 trade surplus in 
agricultural products with the United States.  
4.4.  In particular, the report from the Secretariat states that the allocation of some tariff quotas in 
Switzerland is a "discriminatory system whereby the allocation of the tariff quota  is contingent 
upon local purchase ". This is particularly true for the tariff quota for beef, sheep meat, and offal, 
where 50 % of the quota is allocated based on the contribution to Swiss production. This provision 
is disadvantageous to companies that prin cipally source product through imports.  
4.5.  The lack of competition for agricultural products is further reflected in the approach of 
Switzerland and Liechtenstein, along with the approaches of their EFTA partners, to the negotiation 
of free trade agreements,  which eliminate tariffs on markedly fewer agricultural tariff lines than 
non-agricultural tariff lines. We continue to encourage Switzerland and Liechtenstein to increase 
the market orientation of their agricultural production and trade policies.  
4.6.  Switzerl and has also noted "the need to adequately take into account non -trade concerns " in 
negotiations related to agriculture. We look forward to learning what non -trade concerns 
Switzerland intends to address in the WTO. Similarly, we look forward to more infor mation on the 
recent "Swissness " legislation that came into force on 1 January 2017. That new law appears to 
create new requirements regarding the identification of country of origin for food and industrial 
products and also appears to impact requirements regarding label ling of foods. We would like to 
know when Switzerland intends to notify the measure to the WTO.  
4.7.  We also have questions about the implementation of the "Precautionary Principle, " and the 
implications of Switzerland and Liechtenstein harmonizi ng their SPS and TBT s tandards with those 
of the EU. We have several questions regarding Switzerland 's scientific and risk basis for food 
safety measures, including pesticide and veterinary drug standards, food additives, and the 
moratorium on approvals fo r the cultivation of biotechnology crops, which was  recently extended 
until 2021. We would appreciate an explanation of the science behind the moratorium.  
4.8.  In addition to our agricultural concerns, the United States remains particularly concerned 
about the  ability of copyright owners to protect their copyrighted wor ks in the digital environment. 
We look forward to updates on the status of draft Swiss legislation expected to address this issue, 
including the timeline for implementation, as well as mechanisms  under current Swiss law that  
could also provide protection.  We also look forward to hearing from Liechtenstein about the status 
of its proposed copyright law amendments.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.9.  We thank both G overnments in advance for their efforts to respond to our questions, a nd we 
plan to review the responses carefully and request clarifications as necessary during the course of 
this TPR.  
4.10.   We wish both G overnments a successful review and thank the delegations for the ir attention 
to our questions.  
CHINA  
4.11.   We commend Switzerland a nd Liechtenstein for their sound and resilient economic 
performance over the period under review despite of the difficult circumstances. We welcome the 
continued efforts by the Swiss G overnment in opening up its economy and appreciate the strong 
support of  a rule -based multilateral trading system from Switzerland and Liechtenstein. This is 
particularly most needed against the current backdrop of uncertainties and growing protectionism 
around the world. And we are encouraged by the efforts of the two countri es in the banking 
service area in order to combat cross -border tax evasion.  
4.12.   China and Switzerland enjoy close bilateral trade relations with Switzerland being our sixth 
largest trading partner in Europe and China being the fifth largest trading partner of  Switzerland. 
Bilateral trade between China and Switzerland has increased to a historical amount of more than 
US$20 billion in 2016. Our statistics show that during the first quarter of 2017, trade between 
China and Switzerland has increased by 4% compared  with that in the same period last year. 
President XI Jingpin 's official visit to Switzerland in January 2017 has greatly strengthened the 
close relationship between our two countries. And we are willing to work with the Swiss 
Government to upgrade the Fre e Trade Agreement between China and Switzerland. As Switzerland 
is the sixth largest source of investment to China in Europe, and is among the top destinations for 
China 's outward investment, we believe there is still great potential for further growth in the 
investment between China and Switzerland. We hope this TPR could offer another good 
opportunity to help Chinese enterprises better understand Switzerland 's investment regime.  
4.13.   Although the volume of trade and investment between China and Liechtenstein i s small, 
both the trade and outward investment from China to Liechtenstein have seen rapid growth 
recently. We are looking forward to further growth in those areas.  
4.14.   It is true that most economic sectors in Switzerland are open to investment, including 
investment by foreigners;  however , there are still restrictions in certain areas under state 
monopoly. We would appreciate it if the Swiss government could provide further information on 
such restrictions, which will help facilitate investment by Chinese ente rprises in Switzerland.  
4.15.   Durin g the review period, the Swiss G overnment has continued to take measures to reduce 
technical barriers to trade and promote market competition. We are expecting to get more 
information on the specifics steps that have been taken  to encourage further growth of trade.  
4.16.   In addition to the first patch of questions, we would like to submit some follow -up questions 
relating to the issues above after this meeting, and we are expecting the Switzerland and 
Liechtenstein to provide replies to us soon.  
4.17.   Last but not the least, I would wish this TPR a complete success.  
UKRAINE  
4.18.   Our countries have enjoyed close bilateral trade, economic and technical cooperation. 
Switzerland is the 5th largest bilateral donor and the 9th biggest investor in Ukrai ne. Since 2012, 
Ukraine and countries of the European Free Trade Area (EFTA), including Switzerland and 
Liechtenstein, are benefiting from a Free Trade Agreement. It has comprehensive coverage, 
including trade in goods (industrial and processed agricultura l goods, fish and other marine 
products), trade in services, investment, protection of intellectual property rights, government 
procurement and provisions on competition.  
4.19.   Trade turnover between Ukraine and Switzerlan d was valued at US$ 1,96 billion in 2016,  
between Ukr aine and Liechtenstein – at US$ 2,7 million. Among Swiss and Lichtenstein 's leading WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  exports to Ukraine are pharmaceutical products, mechanical appliances, mineral fuel, boilers, 
electrical machinery, and chemicals. The main import items from Ukr aine are precious stones and 
metals, woven apparel and clothing accessories, timber, machinery, nuclear reactors, paper, grain 
crops. Switzerland is the second biggest importer of Ukrainian services, consisting mainly of 
transport, raw materials processing  and information technology.   
4.20.   Ukraine highly appreciates the partnership cooperation with Switzerland and Liechtenstein 
across the bodies of World Trade Organization on different issues. Being strongly committed to the 
rule-based multilateral trading syst em, Ukraine notes the efforts of Switzerland and Liechtenstein 
and their contribution to further development of the system and liberalization of trade in goods 
and services.  
4.21.   In particular we would like to underline our appreciation to the principal approac h of 
Switzerland and Liechtenstein to their import regime measures covering some import prohibitions 
and restrictions of goods not accompanied by a certificate of origin issued by the Ukrainian 
authorities, compliant with the relevant international decisio ns and commitments on the issue .  
4.22.   Within this TPR exercise Ukraine has submitted a number of specific questions and is 
seeking clarification on a range of t he following topics: Government' s Growth Agenda; preferential 
tax provisions; export subsidies for a gricultural products; implementation of the Protocol 
Amending the TRIPS Agreement; export restrictions on dual -used goods etc.  
4.23.   We would like to express gratitude for the responses, which we are reviewing thoroughly.  
4.24.   In conclusion, I would like to express our deep appreciation to the delegation of Switzerland 
and Liechtenstein and especially to the teams of the Missions of both countries to the WTO in 
Geneva for their hard work in preparing for this TPR and for cooperation on the range of WTO 
issues.  
4.25.   We wis h the Switzerland and Liechtenstein a successful and fruitful trade policy review and 
look forward to continue further strengthening our bilateral relations.  
REPUBLIC  OF MOLDOVA  
4.26.   The Republic of Moldova acknowledges Switzerland and Liechtenstein as strong s upporters 
of the WTO advocating for further liberalization of world trade, actively participating in the Doha 
Development Agenda (DDA) and engaging in initiatives aimed at strengthening the rules -based 
multilateral trading system. We would also like to sei ze this opportunity to congratulate 
Switzerland and Liechtenstein, for the establishment of their respective national trade facilitation 
committees and compliance with Section 1 of the TFA Agreement. We also commend the 
ratification of the revised plurilat eral Agreement on Government Procurement by Liechtenstein in 
2013 and are looking forward to the finalization of the ratification process by Switzerland, in 
parallel with ongoing reforms at the federal and cantonal levels.  
4.27.   As a high -income country with a d iversified economy and good governance, Switzerland has 
shown strong resilience in the challenging monetary context that has marked the period since its 
last trade policy review. We would like to underline that the main economic and financial 
developments under the period of review was marked by the smart monetary policy and a strong 
appreciation of the Swiss franc. While this appreciation has impacted considerably GDP growth and 
traditional export industries, modest quarterly GDP grow th has been registered  for 2016 -beginning 
of 2017. Positive trends have also been registered in Liechtenstein, despite its share of the same 
monetary challenges.  
4.28.   A strong currency and low interest rates lead to an increase in private consumption, while 
leaving behind economic challenges on the external level related to the competitiveness of the 
Swiss industries, weak productivity growth and decline in capital intensity of the economy.  
4.29.   In this context, we believe that the New Growth Policy 2016 -2019 will manage to further 
open the economy to imports and reduce parallel barriers such as high input costs and output 
prices.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.30.   We welcome the active expansion by Switzerland and Liechtenstein, in the framework of 
EFTA, of the network of regional trade agreements. Currently, the EFTA F TAs in force comprise a 
large network of 25 agreements with 35 partners outside the EU. Since 2013, several new FTAs 
entered into force with countries in Central America (Panama and Costa Rica), Bosnia and 
Herzegovina, and the Gulf Cooperation Council. Agr eements with the Philippines and Georgia are 
pending to be entered into force.  
4.31.   The Republic of Moldova has also expressed its interest for a FTA with EFTA countries. In 
this respect, I am pleased to note the openness of EFTA Governments to initiate consul tations on 
this important endeavo ur. Moldova and EFTA Secretariat has reached a decision to start this 
process by signing a Joint Declaration on Cooperation as a first step towards the initiation 
negotiations of Free Trade Agreement. We hope that the Joint  Declaration between Moldova and 
EFTA will address several important 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.  
4.32.   Regarding the agricultural sector, we encourage Swiss and Liechtenstein Governments to 
further implement the commitments undertaken under paragraph 31 of the Nairobi Ministerial 
Declaration regarding the elimination of all of the export subsidies and domestic support granted 
to the agricultural sector.  
4.33.   The agriculture sector is sheltered from import competition through relatively high tariffs on 
sensitive agricultural products and direct payments.  
4.34.   We note a paradigm shift to the Swiss a pproach on food safety – moving from the positive 
principle to the precautionary principle and thus eliminating an unnecessary barrier to trade.  
4.35.   Moldova welcomes the strengthening of the IP system and Switzerland 's status of one of the 
most innovative OEC D economies with a vibrant technology industry. In this context, we 
congratulate Switzerland on ranking first in the Global Competitiveness Index and Global 
Innovation Index in the years 2013 -2016.  
4.36.   On some of the points raised above, the Government of the Republic of Moldova has 
addressed several questions to Switzerland and Liechtenstein, mainly regarding :  
 the compatibility of its stock requirements with the WTO rules;  
 processing under customs control system;  
 rules of origin included in its FTAs with trad ing partners;  
 specific duties ; and 
 public procurement procedures related to the financing of hospitals.  
4.37.   We thank Switzerland and Liechtenstein for the comprehensive replies provided to our 
questions in due time.  
4.38.   Regarding bilateral trade and economic relat ions between Moldova and Switzerland, we 
believe that the current legal framework ca n be further expanded, which already includes the basic 
agreements, such as the Agreement on protection and mutual promotion of investment, the 
Agreement on trade and econo mic cooperation, as well as the Agreement on humanitarian  
assistance and technical cooperation. Moldova is interested to initiate negotiations on the air 
transportation agreement, which will have a positive economic impact mutually beneficial, 
especially i n the course of this year marking the 25th anniversary of Moldova 's bilateral diplomatic 
relations with Switzerland.  
4.39.   The Swiss Agency for Development and Cooperation and  the Liechte nstein Development 
Service are among Moldova 's main development partners w orking closely with local authorities 
through technical assistance program mes and projects in the fields of health, water and sanitation, 
education and migration. Also, on the investment side, there are currently 94 Swiss enterprises WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  active in Moldova and we are pleased to see an increasing trend of Swiss direct investments in 
Moldova.  
4.40.   We also note a positive dynamic in the volume of bilateral trade. In 2016, exports of 
Moldovan products to the Swiss Confederation and Liechtenstein increased by 26% and 20% , 
respectively. Moldova mainly exports agricultural products, while imports comprise pharmaceutical 
and electrical products and hope s to see further expansion of exports of Moldovan wine and 
organic products to the market in Switzerland and Liechtenstein.  
4.41.   We are committed to work closely in the near future towards concrete further development 
of our mutually beneficial trade and economic relations through all available means: bilateral, 
regional and multilateral.  
4.42.   The Republic of Moldova is confident that the  5th exercise of the joint trade policy review 
will help Switzerland and Liechtenstein to achieve their economic objectives and fully hono ur their 
international commitments.  
4.43.   We look forward to continue further strengthening our bilateral relations with Swi tzerland 
and Liechtenstein and, on behalf of the Republic of Moldova, I wish to the Swiss and Liechtenstein 
delegation s the utmost success during their fifth joint WTO Trade Policy Review.  
AUSTRALIA  
4.44.   Australia has a constructive working relationship with Sw itzerland in the WTO as well as in 
the G20, OECD, Asia -Europe Meeting (ASEM), and the Asian Infrastructure Investment Bank.  
4.45.   Australia 's trade and investment relationship with Switzerland is strengthening and growing, 
especially in the areas of scientific r esearch and development, education and two -way investment. 
In 2016, Switzerland was our 10th largest source of foreign investment at $59.1 billion, of which 
FDI was worth almost $9.5 billion. In 2016, total Australian investment in Switzerland was worth 
$20.4 billion. Total two -way goods and services trade with Switzerland was worth $5.8 billion in 
2015-16. Opportunities exist to further increase engagement in sectors including: infrastructure, 
food and agribusiness, renewable energy, financial technology, medical technology and 
pharmaceuticals.  
4.46.   We are pleased that Australia and Switzerland have exchanged letters to commence an 
automatic exchange of tax information from 2018, based on the OECD 's common reporting 
standard. These exchanges will contribute to t he tax integrity of both countries.  
4.47.   While acknowledging efforts aimed at reform of its agricultural sector under the Swiss 
Government 's Growth Agenda, we remained concerned about the high level of tariffs and non -tariff 
measures in place and strongly encou rage ongoing trade -liberalizing measures in this area.  
4.48.   While our bilateral trade and investment relationship with Liechtenstein is small, we 
appreciate Liechtenstein 's commercial interests in Australia and welcome the opportunity to further 
our trade and i nvestment ties. We welcome Liechtenstein 's ratification of the OECD Convention on 
Mutual Administrative Assistance in Tax Matters and participation in the Common Reporting 
Standard.  
4.49.   For both Switzerland and Liechtenstein, Australia strongly encourages cont inuing 
liberalization efforts, particularly in investment and agriculture, and looks forward to working with 
these Members in future to continue to grow our trade and investment relations.  
MEXICO 
4.50.   It is an honour for the Mexican delegation to participate in  the fifth joint trade policy review 
of Switzerland and Liechtenstein. After only a few months in Switzerland as Ambassador of Mexico 
I have been able to see for myself the strengths of the Swiss economy, its sound macroeconomic 
policies, and effective sys tem of governance and the state of well -being of its citizens, but I have 
also observed some challenges for the future, to which I shall refer later on and which are included 
in the reports prepared for us by the WTO Secretariat.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.51.   There is no doubt that Sw itzerland and Liechtenstein continue to be two prosperous 
countries that enjoy economic stability and good governance. Both economies have proved highly 
resilient to the shocks caused by the instability of the euro zone and the appreciation of the 
Swiss  franc.  
4.52.   Sound management, the use of cautious fiscal and monetary policies, an increase in 
domestic demand and positive population growth due to immigration enabled the Swiss economy 
to grow at a moderate rate of 1.5% between 2013 and 2015 and to record a lo w rate of 
unemployment fluctuating between 4.0% and 4.5% in the same period.  
4.53.   We also recognize Switzerland's efforts to boost its competitiveness, which earned it the 
number one ranking in the Global Competitiveness Index drawn up by the World Economic Fo rum. 
Switzerland continues to be an attractive country for foreign investment and, at the same time, a 
major investor in other countries like my own. Its investment regime is very open, although it 
maintains some restrictions on FDI in some strategic secto rs.  
4.54.   Foreign trade in goods and services will continue to be an important driver of economic 
growth in Switzerland and Liechtenstein. Mexico recognizes Switzerland's efforts to diversify its 
trade, despite its geographical situation and its natural link wi th the European Union, a partner 
that receives some 54% of its exports.  
4.55.   These efforts are reflected in the expansion and deepening of its network of free trade 
agreements, including the one with Mexico which is in the process of being strengthened. The th ird 
round of negotiations to broaden the trade agreement between Mexico and the European Free 
Trade Association (EFTA) recently took place in the town of Lugano. We hope that these 
negotiations will lead to closer and deeper trade relations (I would point out that, over the last 
16 years, trade with EFTA has grown by more than 150%, and the cumulative investment of the 
EFTA countries in Mexico between 1999 and 2016 amounted to some US$10 billion). Bilateral 
trade with Switzerland amounted to US$3.4 billion in 2015.  
4.56.   Unlike its manufacturing sector, agriculture remains highly protected despite contributing 
less than 1% to GDP. The tariffs applied to agricultural products continue to be very high, with an 
MFN average of 30.8%. Some agricultural products, such a s dairy products, meat and vegetables 
receive a prohibitively high level of protection, with tariffs exceeding 100% in ad valorem  terms. 
Considering the data available for 2015, Switzerland ranked sixth among 149 countries with the 
highest applied MFN tari ff according to the 2016 edition of the WTO's World Tariff Profiles.  
4.57.   In addition to high tariff protection, the level of domestic support is still extremely high. 
Notwithstanding the Agricultural Policy for 2014 -2017, which includes measures to reorganize  and 
adjust the system of direct payments, the level of domestic support still remains far higher than 
the EU average. The report points out that two thirds of Swiss farmers' income comes from 
support policies and that, in relative terms, they received thr ee times as much support as EU 
farmers, apart from the fact that their costs are 90% above the world market.  
4.58.   As a result, the prices of agricultural products and food in Switzerland are high compared 
with the rest of the world. This situation, combined wi th high purchasing power and low consumer 
sensitivity to prices, has led Switzerland to be considered a "high -price island" in Europe, a 
situation that might jeopardize its competitiveness and future growth.  
4.59.   We welcome the fact that the Swiss Government, t hrough more open trade practices, is 
seeking to encourage competition in order to reduce prices and boost productivity.  
4.60.   Switzerland and Liechtenstein have an extensive services sector accounting for more than 
70% of their GDP. Financial services represent  10% of GDP and more than 5% of total 
employment. Switzerland continues to be one of the most important financial services centres in 
the world. We commend the adoption of the principle of automatic information exchange to 
combat tax evasion, the signing o f bilateral agreements to that end, and the application of the 
OECD standard on information exchange.  
4.61.   In conclusion, I should like to acknowledge the important role played by Switzerland in this 
Organization, not only as host country, but on account of it s strong commitment to the multilateral WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  trading system, and in particular its leadership of the Friends of the System group. We urge 
Switzerland to let that leadership be matched by a greater contribution to the multilateral trading 
system, particularly in  the sphere of agriculture.  
4.62.   We are grateful for the replies to the questions we raised, which are being reviewed in our 
capital.  
NORWAY  
4.63.   Norway, Liechtenstein and Switzerland, together with Iceland, enjoy a longstanding 
partnership as members of the Europe an Free Trade Association. We cooperate closely in 
developing free trade relations with partners in all parts of the world as the EFTA countries 
negotiate free trade agreements together.  
4.64.   Liechtenstein and Norway are also partners in the Agreement on the Eu ropean Economic 
Area, which extends the internal market of the European Union to the three EFTA States Iceland, 
Liechtenstein and Norway.  
4.65.   The Secretariat 's report confirms the strong commitments of Switzerland and Liechtenstein 
to a rules -based multilatera l trading system. This is highly appreciated in a time where 
globalization and free trade are being challenged and we see a worrying inclination towards 
introducing trade -restrictive measures.  
4.66.   As evidenced in the report, Switzerland and Liechtenstein 's eco nomies are diversified and 
open, with low tariffs and few restrictions on trade in goods and services. Most economic sectors 
are open to foreign investments. This openness should be commended. Openness and 
transparency are important tools to facilitate tra de, investments and economic development.  
4.67.   Since the last TPR, both Switzerland and Liechtenstein have been affected by economic 
problems in the Euro -zone and a strong appreciation of the Swiss franc. Both economies have 
proven resilient and have continued to grow. The unemployment rates remain low in both 
countries.  
4.68.   Switzerland is among the top global destinations for foreign investments and the 6th most 
important investment country for the Norges Bank Investment Management (3.7%).  
4.69.   Tax transparency is of gr eat importance to ensure a level playing field. In order to make the 
financial sector more transparent, and ensure the long term sustainability of its financial sector, 
Switzerland has committed to implement the automatic exchange of information in tax mat ters 
(AEOI) standard. Joint statements on the introduction of AEOI were signed with Norway and other 
countries at the beginning of 2016. Norway also appreciates Liechtenstein 's active participation in 
the work for transparency and exchange of tax informati on. 
4.70.   We commend Switzerland 's leadership as a Friend of the System and appreciate the roles 
that Switzerland has taken on in chairing and facilitating negotiations. We appreciate our close and 
fruitful cooperation in the field of trade, climate and environm ent. Switzerland and Norway have 
long shared a common interest in the general work on environment in the WTO, in the 
negotiations on the Environmental Goods Agreement and the important work to reduce harmful 
fossil fuels subsidies. We also appreciate our c ooperation with Switzerland in the negotiations on 
fisheries subsidies to implement SDG 14.6 in the WTO.  
4.71.   While the Swiss and Liechtenstein economies for the most part are very open, there are 
areas that are more restricted. Both Switzerland and Liechtenste in attach importance to non -trade 
concerns in agriculture, which are understood and shared by Norway. We cooperate closely within 
the G10 and our positions are well known.  
4.72.   Norway attaches great importance to our close cooperation with Switzerland and 
Liechtenstein in the WTO and the commitment of both countries to safeguarding the existing 
architecture of the multilateral trading system as well as contributing to its further development. 
Together we can contribute to strengthen the global commitment to figh t protectionism and WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  develop the WTO of the future. We look forward to continue conversations and working together to 
bring issues forward in the WTO, as we move towards Buenos Aires and beyond.  
EUROPEAN  UNION   
4.73.   As noted in the Secretariat r eport, Switzerlan d and Liechtenstein are two remarkable 
countries in several respects:  
4.74.   Both countries can be proud of their economic performance: public debt below 50% of GDP, 
very low or even negative inflation, virtually full employment with unemployment rates fluctuatin g 
between 4 and 4.5%. This is all the more remarkable since the economies of both countries 
operate in a difficult monetary context, particularly as regards the strong upward pressure on the 
Swiss franc, which weighs particularly heavily on the export -oriented sectors.  
4.75.    The competitiveness of the two economies is based inter alia  on research and development 
(more than 3% of GDP for Switzerland and 8% for Lichtenstein). Switzerland continues to occupy 
first place if account is taken of the innovation index, and is very well placed in terms of the 
quality of the business environment.  
4.76.    The success of the two countries also stems from their attachment to the highest possible 
level of participation in trade flows and, more broadly, in international trade. This tr ade openness 
is reflected, inter alia , in their unwavering support for this Organization, both in its day -to-day 
work of implementing rules and in the negotiations aimed at adjusting the rules to the new 
realities of world trade.  
4.77.    However, the Secretariat Report also highlights the fact that these excellent results are to 
be measured in relation to high salaries and prices (prices 45% higher, on average, then those of 
the EU) and the apparent stagnation of productivity. This observation has led the Swiss au thorities 
to adopt a new growth strategy for 2016 -2019. This approach has a strong commercial component 
since – according to the Secretariat Report – it aims to facilitate imports, to review exceptions to 
the Cassis de Dijon principle for trade with the EU  and, in particular, to review the special 
treatment of agri -food trade. The EU would be very interested to learn the state of play regarding 
implementation of this 2016 -2019 strategy at the halfway stage.  
4.78.    The EU is the most important trading partner of S witzerland and Lichtenstein, and a key 
investor in the area of investment.  
4.79.   Switzerland is our third largest trading partner for goods (with exports of some €140 billion 
in 2016) and our second largest partner in terms of services (for a value of €116 billi on in 2015). 
Switzerland is the second largest beneficiary of our foreign direct investment after the 
United  States.  
4.80.   This is due to the geographical situation of the two countries as well as the very close links 
based on the European Economic Area in the c ase of Liechtenstein and the bilateral agreements in 
the case of Switzerland, which connect it to large parts of the EU domestic market. However, there 
is still room for progress, including in the area of trade policy.  
4.81.   With regard to the WTO Agreement on G overnment Procurement, we very much hope that 
Switzerland will be able to ratify the new Agreement in the near future and that certain issues such 
as transparency in the matter of public tendering will be covered by the national and local laws of 
the Confe deration. We have submitted written questions aimed at clarifying certain measures 
taken by the cantons in terms of their consistency with the Agreement on Government 
Procurement.  
4.82.    Moreover, a number of policies have been regularly referred to in the previ ous trade policy 
reviews and continue to be a matter of concern, for example:  
 the high level of tariff protection for agriculture;  
 specific customs duties which lack transparency and in some cases penalize developing 
countries that are beneficiaries of the  Generalized System of Preferences;  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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   opaque tariff quotas;  
 difficulty of access to provision of services, including in relation to mobility of persons, 
and cross -border mobility in particular;  
 lack of openness to competition in certain sectors, such as tele coms; and  
 measures taken to protect national products, whether by means of legislation on 
government procurement (such as a recent cantonal law) or the famous "Swissness" law 
which defines the criteria whereby a Swiss label or brand can be applied to a pro duct. 
4.83.    As I mentioned before, Switzerland is a pillar of this Organization. Switzerland bases its 
international policy on support for the development of legal rules that strengthen the predictability 
of the economic and political environment, which is esse ntial to its own prosperity as well as ours. 
We therefore count on Switzerland and Liechtenstein to make an active contribution to the success 
of the forthcoming Ministerial Conference in Argentina.  
4.84.   In closing, I should like to emphasize that we would have  liked Switzerland and 
Liechtenstein to opt for the so -called "alternative" scheme, which would have enabled us to receive 
replies to our written questions some days before the meeting.  
4.85.    We have exercised great restraint in limiting the number of our quest ions to about 40. 
Given the close integration between the two economies, their customs union and their single 
currency, we have addressed our questions mainly to Switzerland, but they cover both countries.  
4.86.   I should like to conclude by expressing my best wi shes to the delegations of Switzerland and 
Lichtenstein for the success of these two days of discussion.  
KINGDOM  OF SAUDI  ARABIA  
4.87.   Known by their open and diversified economies, Switzerland and Liechtenstein have shown 
resilience against the challenges revol ved around the economic crisis in the euro zone and the 
strong Swiss franc. Switzerland 's real GDP grew at an average annual rate of 1.5% in 2013 -2015. 
The Suisse government has yielded macroeconomic stability and underpinned growth by 
establishing an open  and business -friendly environment and a healthy financial system.  
4.88.   Despite its small size and lack of natural resources, Liechtenstein has developed into a 
prosperous, highly industrialized economy, based on high -tech and export -oriented manufacturing 
with a vital financial service sector. Liechtenstein remains among the highest per capita income in 
the world.  
4.89.   The Kingdom of Saudi Arabia commends both governments for their ambitious reforms and 
for their active engagement to reinforce their economic integ ration through preferential trade 
agreements with their major trading partners. The GCC -EFTA Free Trade Agreement is a milestone 
agreement in strengthening ties between Switzerland and Liechtenstein and the GCC countries.  
4.90.   Saudi Arabia enjoys a friendly an d substantive relationship with Switzerland and 
Liechtenstein. Since 2006, initiatives were taken to develop trade and investment relations 
between the Kingdom of Saudi Arabia and Switzerland and Liechtenstein. The Swiss Business 
Association Saudi Arabia a nd the Saudi -Swiss Business Council were established to pave the way 
for closer economic ties, to strengthen trade cooperation and to enhance investment opportunities 
in the three countries.  
4.91.   Bilateral trade between the Kingdom of Saudi Arabia and Switzerl and reached US$2.3 billion 
in 2016. The two countries aim to fortify their bilateral cooperation in several fields including 
construction, tourism, commerce, investment, education, and health.  
4.92.   We have submitted some questions to Switzerland regarding fina ncial services and will be 
happy to receive Switzerlan d replies to these questions.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.93.   In closing, The Kingdom of Saudi Arabia looks forward to continuing the very close working 
relationship with  Switzerland and Liechtenstein.  
4.94.   I wish the delegation of Switze rland and Liechtenstei n a very successful Trade Pol icy 
Review.  
NEW  ZEALAND  
4.95.   The questions we have submitted, as well as our statement today, focus predominantly on 
Switzerland.  
4.96.   We applaud Switzerland for its generally sound fiscal and economic policies. De spite a 
difficult global economic environment and the effects of the Euro crisis persisting during the first 
part of this review period, we were encouraged to see continued ec onomic growth in Switzerland. 
International trade has contributed to this growth and this is even in spite of the difficulties faced 
in Switzerland 's traditional export industries as a result of the strong franc.  
4.97.   It is no surprise then that Switzerland remains a strong advocate for the WTO rules -based 
multilateral trading system.  This is a role that we value and is of value to the multilateral trading 
system.   
4.98.   One example is Switzerland 's tireless efforts to secure ambitious domestic regulation 
disciplines in services in fulfilment of the Article VI.4 GATS mandate, and we welcome thei r 
participation as a proponent  in the current negotiations.  
4.99.   Switzerland and Liechtenstein participate actively in all aspects of the WTO agenda, 
including through WTO plurilateral agreements and initiatives such as the Government 
Procurement Agreement, Inf ormation Technology Agreement, and negotiations towards an 
Environmental Goods Agreement.  
Trade and Environnent  
4.100.   Switzerland is also a well-known  advocate for trad e and environment outcomes. A 
particular example of this is Switzerland 's participation in ef forts to refo rm harmful fisheries 
subsidies.  It joined a Ministerial Statement on the issue at MC10 and is a participant in the rela ted 
plurilateral negotiations. Switzerland 's commitment is consistent with the systemic value it places 
on such matters, des pite the absence of a commercial fishing industry and subsidy programme.  
4.101.   We also enjoy working closely with Switzerland in other environmental endeavours, 
including as fellow members of the Friends of Fossil Fuel Subsidy Reform group, and fellow 
participan ts (with Liechtenstein) in the Environmental Goods Agreement plurilateral negotiations.  
Trading Relationship  
4.102.   While we have a fairly modest trading relationship our strong and friendly wider 
relationship, and shared values, continue to provide a good founda tion to develop our trading and 
investment links.  
4.103.   Switzerland and Liechtenstein 's trade regimes must be commended on their openness. 
There are though familiar and significant exceptions. Trade distorting protectionism and high 
tariffs, particularly in the agriculture sector remains  an outlier and give us some cause for concern. 
Specifically we note that Tariffs on agricultural products remain considerably higher than industrial 
tariffs – with average agricultural tariffs of 31% as compared to 2% for NAMA.  
4.104.   In saying this, New Zealand commends those steps taken and planned towards liberal ising 
the agricultural sector. We, of course , welcome Switzerland having initiated domestic procedures 
to eliminate export subsidies on agriculture within the deadline committ ed to in the MC10 
Ministerial D ecision on export competition. It is encouraging that Switzerland is also acting under 
its own initiative and in this respect we welcome the Government 's Growth Agenda focus on 
strengthening economic resilience and increasing  productivity, including plans to "to facilitate 
imports to increase com petition in the domestic market ". We were pleased to observe that WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  implementation of Switzerland 's 2014 referendum on immigration was carried out in a manner to 
ensure EU -Swiss arrangem ents, including with respect to trade, were not affected.  
4.105.   New Zealand acknowledges Switzerland 's leading role as an advocate for trade 
liberalisation in the services and the industrial goods sector. It is therefore no surprise that, as the 
Secretariat 's report indicate, these are the most open and most successful  sectors of the Swiss 
economy. This aligns with New Zealand and other nations ' experiences, and underlines the 
importance of trade liberalisation.  
4.106.   New Zealand, therefore, would like to commend Swit zerland and Liechtenstein on a 
successful  trade policy review, while encouraging Switzerl and to undertake further 
market -oriented reforms in its agricultural sector.  
BRAZIL  
4.107.   Ranking among the most prosperous societies in the world, Switzerland and Liechtens tein 
have open and diversified economies and profit from an extensive network of preferential trade 
agreements, led by the Swiss -EU bilateral agreements and the RTAs within the framework of 
European Free Trade Association.  
4.108.   One of the top destinations for foreign investment worldwide, the Swiss economy is 
strongly tied to international trade, with a large services sector and a highly competitive 
manufacturing base; likewise, Liechtenstein has a strong industrial sector corresponding to about 
40% of its GDP.  Staunch supporters of the multilateral trading system, both countries are 
committed to strengthening the WTO and to further liberalizing world trade.  
4.109.   Since the last trade policy review, Switzerland has maintained a stable level of growth at a 
rate of 1.5 %, and unemployment remains low at around 4.5%, despite a difficult economic 
environment. Efficient infrastructure, a flexible labo ur market, lean regulations, a stable political 
and macroeconomic climate and the focus on innovation, research and developme nt contribute to 
this resilience.  
4.110.   While the overall Swiss economy is open, the production and import of ethanol and spirits 
are federal monopolies. With the rejection of a revised Cartel Law in 2014, higher prices prevail for 
various goods and services in  comparison to similar European markets. Administered prices are 
maintained at the federal, canton and municipal level for certain goods and services.  
4.111.   Agriculture is very protected. The average bound rate for agricultural goods is 30.8%, 
whereas for non -agricultural products it stands at 2.3%. Tariff escalation and peaks, target import 
prices and seasonal tariffs are also applied, resulting in significant import barriers. The average 
tariff for products of animal origin is 120%, with peaks of over 1000% for  certain out -of-quota 
imports. There are 28 TRQs, implemented through several sub -quotas, but their administration 
raises concern: certain allocations appear to be contingent upon local purchases.  
4.112.   Domestic support is also high. Direct payments to producers  and price support for meat, 
dairy, cereals and other basic products have increased as of recently, and the percentage PSE 
measured by the OECD stands at 62%. The last DS notification to the WTO covers the year 2013; 
efforts should be made to promptly noti fy more recent years. Export subsidies remain in place for 
processed agricultural products, due to a specific carve -out included in the Nairobi decision on 
their elimination.  
4.113.   On the bilateral front, Brazil is Switzerland 's largest trade partner in Latin Am erica. The 
total bilateral trade flow has doubled in the period 2006 -2015, reaching 4.3 billion that year and 
slightly declining in 2016, in the wake of Brazil 's deepening economic crisis. Brazil 's exports and 
imports are up this year, by 31% and 15% , respectively, reflecting an improvement in our 
domestic economic climate and results of the process of reforms underway.  
4.114.   Brazil has sustained persistent trade deficits with Switzerland that relate, in part, to high 
levels of agricultural protection. There is certainly room for a more balanced trade flow.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.115.   Swiss companies have been present in Brazil for a long time. The FDI stock amounts to 
around US$ 15 billion, concentrated in skilled and dynamic sectors such as pharmaceutics, 
automation, construction equipment , food and financial services. Recently, Zurich Airport won the 
concession of the Florianopolis Airport, in southern Brazil. Several Brazilian companies, among 
which the giant mining company Vale, have invested US$ 3.7 billion in Switzerland.  
4.116.   Brazil welcome s the launching of MERCOSUR -EFTA free trade negotiations. The conclusion 
of an agreement would provide a boost to economic integration between our countries. The first 
round of negotiations is set to take place in June, in Buenos Aires, soon followed by a second one 
in Geneva, in the end of August.  
4.117.   Beyond trade and investment, Brazil and Switzerland enjoy a constructive and fruitful 
relationship that was elevated to the rank of "Strategic Partnership " in 2008. Federal Counsellor 
Schneider -Ammann, then Pres ident of the Swiss Confederation, visited Brazil in August 2016. The 
next round of bilateral political consultations will take place this June, in Bern.  
4.118.   Let me conclude by thanking both delegations for their answers to Brazil 's questions 
regarding certain aspects of the Secretariat and the G overnment reports and wishing Switzerland 
and Lichtenstein a very successful Trade Policy Review.  
HONG  KONG,  CHINA  
4.119.   Hong Kong, China (HKC) has, for a  long time, maintained close and mutually beneficial 
economic relations with both Switzerland and Liechtenstein.  The Free Trade Agreement between  
HKC and the Member States of the European Free Trade Association,  which  entered into force in 
late 2012 , has brought about preferential market access for goods and services, as well as new 
impetus to trade and investment flows . 
4.120.   As fellow Members of the WTO, Switzerland, Liechtenstein and HKC also share common 
interests in promoting free trade and supporting th e multilateral trading system. We hope our 
strong bilateral ties and our par tnership within the WTO will continue to strengthen.  
4.121.   Commenting on specific aspects of trade policies, we note that t he tariff structure of 
Switzerland and Liechtenstein has not changed since the last review in 2013. This means that the 
applied tariffs ar e stil l expressed as specific rates. Although specific duties are simpler to 
administer, they do not offer sufficient transparency and predictability in ter ms of the level of 
protection. Furthermore, Switzerland operates a complex tariff quota system with  overlapping 
WTO and preferential tariff quotas, and numerous sub -quotas. Switzerland  also levies guarantee 
fund contributions for the purpose of financing reserve stocks for certain products.  Noting that the 
other duties and charges are bound at zero, we share the Secretariat 's view that the imposition of 
such levies alongside tariffs may exceed Switzerland 's bound commit ment in several tariff lines. 
Given these various observations, we would encourage both countries to  simplify and improve 
their tariff re gimes.  
4.122.   Regarding the actual tariff rates, we are glad to see the percentage of duty -free lines 
increased from 18.7% in 2012 to 19.7% last year . However, the agricultur e sector of both 
countries remains highly protected  by MFN tariffs averaged at 30.8%, whi ch is significantly higher 
than the 2.3% for non -agricultural products. For vegetables, meat, and dairy products, we also 
see tariff rates exceeding 100%.   
4.123.   We encourage Switzerland and Liechtenstein to reduce the tariffs for agricultural p roducts. 
This wou ld be consistent with Switzerland 's Growth Agenda which seeks to facilitate imports, as a 
means of increasing competition and driving productivity domestically.  
4.124.   Switzerland and Liechtenstein are among the first 20 WTO Members to formally accept the 
Agreem ent on Trade Facilitation  (TFA) . We appreciate the trade facilitating measures  they 
implemented  during the review period, such as waiving the need for proofs of origin in some 
cases, and simplifying the documentation for small consignments. We encourage both countries to 
continue their good  work in this regard . WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.125.   Apart from multilateral agreements such as the TFA, Switzerland and Liechtenstein have 
also been actively pursuing plurilat eral agreements within the WTO.  Like HKC, they are a Party to 
the expanded I nformation Technology Agreement, the benefits of which are shared with all 
Members b y virtue of the MFN principle. We are pleased to know that tariff reduction under the 
Agreement has been implemented in Switzerland and  Liechtenstein from 1 January 2017.  
4.126.   We look forward to Switzerland  depositing also  its instrument of acceptance  to the revised 
Government Procurement Agreement soon . 
4.127.   Meanwhile, w e are impressed with Switzerland 's and Liechtenstein 's record of never having 
applied  any specific anti-dumping, co unter vailing or safeguard measures. Their effort in containing 
the use of contingency measures is truly exemplary . 
4.128.   We also commend Switzerland 's initiatives to reduce non -tariff barriers to trade . These 
include reforming its food safety regime to bring it in line with EU legislation, resulting in, among 
other things, adoption of the negative list approach, whereby all safe food items are allowed unless 
explicitly prohibited. We also welcome Switzerland 's legislative amendment to reduce technical 
barriers to  trade on medicinal products and medical devices, although we are concerned that the 
numerous exceptions to the "Cassis de Dijon " principle1 will undermine its effectiveness.  
4.129.   Separately, we are glad to note that the Liechtenstein Act of 1995 on the marketa bility of 
goods was amended last year, to allow goods produced either in conformity with Swiss or EEA 
regulations to be sold in the country.   
4.130.   Most economic sectors in Switzerland and Liechtenstein are open to local and fo reign 
investors. However, in Switze rland, investment restrictions continue to apply to activities under 
state monopoly, such as certain rail transport, postal and insurance service s. Restrictions in the 
form of residency requirements also app ly to sectors such as air and maritime transport.  In 
Liechtenstein,  investment restrictions apply to some sectors  including financial services. We hope 
these restrictions  can be relaxed . 
4.131.   At the same time, we hope to work closely with the two countries to further liberalise and 
promote trade in services. In this connection, w e note that they have adopted regulatory changes 
in several  services sectors, in particular the financial services sector , with a view to enforcing 
international standards or protecting consumer interests.   
4.132.   Finally, I wish to thank Am bassador Chambovey and Ambassador Matt for their valuable 
contributions to the WTO, both in their capacity as Permanent Representatives and in  their own 
personal capacities.  It has been my great privilege and pleasure working with them. I wish 
Switzerland and Liechtenstein  a successful Trade Policy R eview.    
COLOMBIA  
4.133.   The long -standing trade relations between Colombia and these two countries were 
consolidated in July 2011 with the entry into force of the Free Trade Agreement between Colombia 
and Switzerland and Liechtenstein, two member countries of the European Free Trade Association 
(EFTA). Nevertheless, although the institutional framework for the growth of bilateral trade was 
established through this Agreement, much more can still be done to ensure that i s it turned to 
good account, particularly as regards the growth of manufacturing and agro -industrial exports 
from Colombia to Switzerland.  
4.134.   In contrast with the trade environment, where the results have still not met expectations, 
the bilateral relationship  has been strengthened by Swiss investment in Colombia, which reached 
their peak in 2014, the year in which Switzerland became the country with the highest level of 
investment in Colombia. In addition, there has been a steady upturn, since 2011, in the num ber of 
Swiss tourists visiting Colombia. Furthermore, we welcome the fact that these relations, which go 
beyond trade, have also resulted in Switzerland's commitment to support the process of building a 
                                                
1 Under the  Cassis de Dijon principle,  products that are lawfully marketed in the EU or the EEA may be 
marketed in Switze rland without further checks regarding their technical requirements . WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  stable and lasting peace in our country. We encourage  Switzerland to maintain and strengthen its 
cooperation, particularly in areas relating to trade and development.  
4.135.   In terms of economic performance, Switzerland has shown a remarkable ability to cope 
with the difficult environment created mainly by the econ omic problems of the euro zone and the 
appreciation of the franc. Switzerland has succeeded in maintaining moderate growth and low 
unemployment. However, sluggish productivity and high prices pose a challenge for Switzerland in 
respect of competitiveness. The "New Growth Policy 2016 -2019" seeks to keep exports 
competitive and improve the competitiveness of the costly domestic sector.  
4.136.   A noteworthy development in the trade sphere is the opening up of the EFTA bloc and its 
broad participation in trade agreemen ts, with more than 25 such agreements in force. This state of 
affairs has enabled Switzerland to consolidate and diversify its export portfolio to countries like the 
United States, China and the Middle East.  
4.137.   Moreover, as is noted in the Secretariat Report,  the customs tariff comprises only specific 
duties which, despite their administrative simplicity, may give rise to shortcomings owing to lack of 
transparency and predictability; I am not sure whether that is the case. Furthermore, Switzerland 
maintains hi gh agricultural tariffs mainly on meat, vegetables and dairy products.  
4.138.   We commend Switzerland's efforts to implement the Nairobi Ministerial Decision on export 
competition, which was a milestone in the agricultural negotiations, and we hope to secure its 
commitment to continuing the process of reform in this important sector of the economy.  
4.139.   The harmonization of its technical relations with those of the European Union should also 
be highlighted. This could have a positive impact on trading partners that main tain relations with 
both blocs of countries, by facilitating trade and reducing non -tariff barriers that impede access to 
these markets.  
4.140.   Regarding banking services, we welcome the measures taken by both countries to adopt 
the regulations on automatic excha nge of information in tax matters, in order to combat 
cross-border tax evasion, in addition to the specific provisions recommended by the Financial 
Action Task Force.  
4.141.   In conclusion, we thank both countries for their replies to our questions under this revi ew 
and we wish both delegations every success in this fifth trade policy review. In particular, we 
thank the State Secretary for her input as head of the EFTA negotiating team on the agreement 
with Colombia.  
ARGENTINA  
4.142.   Argentina wishes to emphasize the high  degree of openness and advancement exhibited by 
the economies of Switzerland and Liechtenstein, which has enabled them to successfully navigate 
the problems of the global economy during the period under review. Despite a difficult 
environment, Switzerland  continued growing at an average rate of 1.5% between 2013 and 2015, 
and the unemployment rate has been kept relatively low (4.5%). Liechtenstein, for its part, has 
maintained its competitiveness through product specialization and regulatory reforms in fin ancial 
services.  
4.143.   Argentina would like to highlight the commitment of Switzerland and Liechtenstein to 
international trade, and associates itself with their efforts to contribute to a fair and balanced 
multilateral trading system.  
4.144.   We would underline Switze rland's active participation in the ongoing negotiations within 
this Organization, as well as its contribution to initiatives that may lead to greater liberalization of 
trade and development, such as electronic trade and the improved international integrat ion of 
micro, small and medium -sized enterprises. Positive efforts have also been made to facilitate 
trade, such as waiving the requirement for proofs of origin in some cases and the use of simplified 
forms for small consignments.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.145.   With regard to the agric ultural sector, we note with optimism that the Swiss  
Agricultural Policy for 2014 -2017 envisages positive efforts to deal with Green Box commitment 
issues. We note in particular the announcement that by 2020 export subsidies on agricultural 
products will have been totally eliminated, in line with the Nairobi Ministerial Decision of 2015.  
4.146.   Bilateral trade with Switzerland registered a favourable balance for Argentina in the period 
2008-2016. In 2016, exports amounted to US$1,141 million (a drop of 9.3% comp ared with 2015) 
and imports totalled US$515.6 million (a decrease of 25% compared with 2015). While the 
balance of trade with Switzerland in 2016 was in surplus by US$625.2 million, bilateral trade with 
Liechtenstein recorded a deficit of US$1.3 million ov er the same period.  
4.147.   In 2016, Switzerland ranked fourteenth (14th) as an export destination and sixteenth (16th) 
as a supplier for Argentina. Liechtenstein, on the other hand, occupied 206th place as an export 
destination and 103rd place as a supplier.  
4.148.   Switzerland was the sixth largest investor in our country in 2015. The stock of Swiss 
foreign direct investment (FDI) stood at US$3,749 million. We note that Swiss foreign direct 
investment in Argentina is undiversified, the most relevant sectors being: oilse eds and cereals 
(37% of the Swiss FDI stock in 2015), chemicals, rubber and plastic (23%) and petroleum (7%).  
4.149.   In April of this year, the President of the Swiss Confederation, Doris Leuthard, made an 
official visit to Argentina, on which occasion a busines s forum was also held with officials and 
sectoral representatives of both countries. The bilateral conversations focused on the development 
of infrastructure in the areas of energy, transport, agri -food and services. Ideas were exchanged 
on reform of the f inancial market, financing for small and medium -sized enterprises and the 
potential for an agreement between the Common Market of the South (MERCOSUR) and the 
European Free Trade Association (EFTA). In this auspicious context, Argentina will continue 
coope rating on ways to deepen bilateral ties.  
4.150.   In the context of this Trade Policy Review, Argentina submitted questions to Switzerland 
concerning the possibility of greater openness in the agricultural sector, the application of special 
approval procedures for  food imports, and assistance to export -oriented SMEs in exporting their 
products. The answers provided will be analysed in detail.  
4.151.   Finally, while reiterating our appreciation of this renewed opportunity to exchange views 
and comments on the trade policie s and practices of Switzerland and Liechtenstein, we would like 
to draw attention once again to the importance of this exercise in transparency from every point of 
view, and to wish their authorities success in this exercise.  
COSTA  RICA 
4.152.   Switzerland has bee n more than an active Member and a leader in the multilateral trading 
system. Together with Liechtenstein, they have given remarkable importance to elements like 
innovation and expanding their participation in services as a driving force to diversify their  
economies. Understandably, Switzerland is a member of the Information Technology Agreement 
(ITA) and its expansion, and both Switzerland and Liechtenstein have been committed parties in 
negotiations in Services and the promotion of agreements in environme ntal goods.  
4.153.   Costa Rica shares many similarities and common interests with Switzerland and 
Liechtenstein. We are small territories with beautiful mountainous landscapes, we share high 
literacy and life expectancy levels, and belong to a small and select gro up of neutral countries. We 
are also part of the group known as the "Small Five " at the United Nations, where we promote 
transparency and accountability. Here, at the WTO, we share with Switzerland our common views 
in the group of Friends of the System, Fr iends of Fossil fuel Subsidy Reform, Friends of 
Antidumping Negotiations and most recently in the informal group of Friends of MSMEs. As well as 
Switzerland, Costa Rica is committed to eliminate export subsidies. For that reason, we welcome 
Switzerland 's efforts to implement these commitments as soon as possible, in line with the WTO 
agreements.  
4.154.   On August and September 2014, the Free Trade Agreement between Costa Rica and 
Panama, another neutral country, and the European Free Trade Association (EFTA) membe rs, of WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  which Switzerland and Liechtenstein are part, entered into force. This Free Trade Agreement 
represented a natural step in our process of consolidating the international trade platform we have 
been building for more than two decades. The growing impo rtance of the relationship between our 
countries and our complementarity is reflected in the average annual increase rate of trade, which 
has been of 9.4% between 2012 and 2016. Switzerland is also an important source of FDI for 
Costa Rica, especially in t he pharmaceutical sector and we see great potential in other areas like 
biotechnology, clean energies and value added services.  
4.155.   As increasingly open economies, Switzerland and Liechtenstein have taken important steps 
to stimulate trade competition and exho rt them to continue their efforts to increase their level of 
liberalization. We encourage the development of such actions, which include the harmonization of 
technical requirements and applying trade facilitation measures. There are still opportunities to 
reduce particularly high tariffs currently applied to agricultural products which averaged 30.8% in 
2016, and to simplify their applied tariffs b y changing them to ad va lorem basis. Costa Rica also 
recognizes the shift taken by Switzerland to increase  the support for renewables  very positively , 
and awaits to see the development of the "Energy 2050 Strategy " after the upcoming referendum.  
4.156.   Finally, I would like to thank the reviewed Members for providing answers to the questions 
submitted by Costa Rica. These  are being revised in my Capital and we will come back with 
follow -up comments in case needed.  
4.157.   I wish Switzerland and Liechtenstein a successful Trade Policy Review and look forward to 
their continuous engagement and leadership in this House.  
MALAYSIA  
4.158.   We a re encouraged by the efforts by both Switzerland and Liechtenstein to maintain a 
generally open trade regime when protectionism is globally on the rise during these challenging 
times.  
4.159.   We note from the Secretariat 's report that Switzerland has implemented t he Agricultural 
Policy 2014 -17 as well as initiation of domestic procedures to eliminate such export subsidies by 
January 2019, in line with commitments made at the WTO Ministerial Conference in Nairobi. 
Nevertheless, agriculture and some domestic services  and remain the economy 's greatest 
weaknesses in terms of international competitiveness and remains vulnerable to a more 
competitive environment – highlighting the need for more market -oriented reforms.  
4.160.   We also note Switzerland 's effort in improving her co mpetitiveness, through its "New 
Growth Policy 2016 -2019" with the focus strengthening the resilience of the economy. It is 
encouraging to note that the policy would further open the economy to imports.  
4.161.   We are also pleased to note that , in terms of investme nt, Switzerland and Liechtenstein 
have a stable and predictable investment regime. Most sectors are open to national and foreign 
investment ; however , we note that investment restrictions continue to apply in Switzerland to 
several sectors. Thus, we encoura ge both Switzerland to review and relax their existing 
restrictions.  
4.162.   While we gear up towards the MC 11 this year, Malaysia calls on Switzerland and other key 
Members to help shape meaningful outcomes at the  MC11, deliverables that would benefit all 
Members  with development at the core. I n this, we appreciate Switzerland 's participation in 
supporting discussion of Micro SMEs of wh ich Malaysia and several other M embers are also part of 
the initiative, to promote the participation of MSMEs in the global value chain.  
4.163.   Bilateral trade between Malaysia and Liechtenstein is relatively  small, with trade valued at 
US$1.8 million in 2016 of which Malaysia 's exports amounted to US$ 800 th ousand and imports 
valued at US$1 million. Meanwhile, Switzerland was Malaysia 's 21s t largest trading partner, 18th 
largest import source and 32nd largest export destination. In 2016, t otal trade in goods stood at 
US$2.4 bi llion with exports valued at US$600 thousand and imports at US$ 1.7 billion. Malaysia 's 
main imports from Switzerland are mainly machinery, equipment, chemical and chemical products 
and, op tical and scientific equipment.  Malaysia 's exports to Switzerland also include electrical and 
electronic products, metals, and rubber products among others.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.164.   Swiss companies are among th e major investors in Malaysia, w hich today is valued at 
US$1.3 billion. In 2016, approved manufactu ring projects were valued at US$ 116 million. The 
continued interest by Swiss investors is a reflection of Malaysia -Switzerland long history of 
bilateral rela tions and the confidence shown in Malaysia 's predictable open market.  
4.165.   To further strengthen trade between Malaysia and Switzerland as well as Liechtenstein, 
Malaysia has embarked on an FTA negotiation with the European Free Trade Association (EFTA) in 
2012. Negotiation is still on -going and we do hope that this preferential agreement could be 
concluded in the near future for both the mutual benefit of businesses in both countries.   
4.166.   Malaysia had submitted several questions and we would like to thank Switzer land for her 
responses and these are being examined at the Capital. We will also be submitting additional 
questions later and look forward to receiving the feedback.  
4.167.   Malaysia wishes the delegation of Switzerland and Liechtenstein a successful fifth j oint 
Trade Policy Review.  
EL SALVADOR  
4.168.   It is an honour for El Salvador to participate in this transparency exercise relating to 
two countries which continue to be strong promoters of a solid and rules -based multilateral trading 
system and which, during difficult times for the world economy of the kind we are experiencing, 
promote the principles of free trade on which this Organization is based. In particular, we 
acknowledge the considerable efforts made by Switzerland as host country of the WTO and its 
contributio n to the strengthening of the multilateral trading system.  
4.169.   Turning to the matter at hand, in the economic sphere it should be recognized that, during 
the review period, the Swiss economy, a highly diversified and advanced economy, has shown 
resilience in the face of the economic problems besetting the euro zone. Despite a difficult 
environment, it grew by 1.5% on average in the period 2013 -2015, and unemployment remained 
relatively low, at 4.5%.  
4.170.   Liechtenstein, for its part, has a diversified economy based  on a comparatively large 
industrial sector, which accounts for some 41% of GDP, and the financial services sector, which 
represents close to 25% of GDP. On account of the very small domestic market, Liechtenstein's 
economy is highly export -oriented and ha s accordingly retained its competitiveness mainly by 
virtue of its specialized products and the regulatory reforms undertaken in the financial services 
sector.  
4.171.   Switzerland is a strategic trading partner for El Salvador and the strengthening of our 
bilater al relations continues to be a priority for my country. Switzerland and the Central American 
region share important links in the area of cooperation. In the particular case of El Salvador, 
Swiss  Cooperation was started in 1982 and has contributed to streng thening the relations between 
our two countries. The Swiss Cooperation Strategy for Central America for the period 2013 -2017 is 
geared in general, inter alia , to helping reduce poverty through inclusive economic development 
and reducing environmental vulne rability and the effects of climate change.  
4.172.   In the area of bilateral trade, Salvadoran exports to Switzerland increased by 25.6% 
between 2015 and 2016 and comprised mainly made -up textile products, garments and clothing 
accessories, coffee, rubber and art icles thereof, furniture, etc.  
4.173.   Imports from Switzerland showed steady growth during the review period, reaching a level 
of some US$51 million in 2016. Imports primarily consist of pharmaceutical products, essential oils 
and resinoids, pigments and other c olouring agents, and various food preparations, among others.  
4.174.   Attention should be drawn to Switzerland's leadership and prominence in the regular work 
and negotiations conducted in the WTO, which have contributed recently to the achievement of 
important r esults in various areas, including trade facilitation and agriculture. In this connection, 
we urge Switzerland to continue contributing to the reduction of agricultural market distortions, 
and to promoting fairer and more balanced trade for the benefit of all farmers.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.175.   Mention should also be made of Switzerland's active participation in various initiatives 
headed by world leaders, aimed at discussing current world issues that are relevant to this 
Organization. Lastly, we should also stress the important cont ribution made by Switzerland and 
Liechtenstein to promoting developing countries' participation in the trade negotiations, through 
cooperation funds.  
4.176.   It remains only for me to wish Switzerland and Liechtenstein every success in this trade 
review exercise.  
4.177.   We thank Switzerland for its replies to the questions we asked, which we shall be sending 
to our capital for analysis.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.178.   I would like to take this opportunity to express how much we apprecia te the leadership 
roles played by both Ambassador Didier Chambovey and Ambassador Peter Matt in our day -to-day 
work. Their dedication and professionalism are important elements in helping to facilitate our 
discussions in many of the WTO negotiations.  
4.179.   Since  their last review in 2013, the trade regimes of Switzerland and Liechtenstein have 
remained generally open, and we admire the work and the progress made in both economies in 
recent years.  
4.180.   Switzerland, with a trade -to-GDP ratio of 60% is among the most int ernationally integrated 
economies in the world. Despite a somewhat difficult international trading environment, the Swiss 
economy continued to grow by 1.5% on average between 2013 and 2015, accompanied by a 
relatively low unemployment rate of just 4.5%. Th e country enjoys good governance with a 
system of direct democracy that is deeply rooted in the Swiss tradition and an economy managed 
with a high degree of fiscal prudence.  
4.181.   Liechtenstein, despite its size, manages to maintain a diversified economy, based mainly 
on a comparatively large industrial sector (about 41% of GDP) and the financial services industry 
which accounts for about 25%. It retains its competitiveness by specializing in niche products, and 
a continuous programme of regulatory reform in the financial services sector. These seem to be 
the main reasons for its GDP increasing every year over the period under review, with highs of 
+4.7% in 2013 and +3% in 2014.  
4.182.   Both Switzerland and Liechtenstein continue to be strong supporters of a rules -based 
multilateral trading system, and even during difficult times for the global economy they advocate 
further trade liberalization. For example, Switzerland ratified the Trade Facilitation Agreement 
(TFA) in September 2015, a key outcome of the Bali MC9, and it s implementation of the expanded 
Information Technology Agreement (an MC10 achievement that will surely benefit all Members), is 
currently subject to legislative changes that should be completed by mid -2017.  
4.183.   In our written questions to Switzerland submitte d in advance, we are seeking further 
clarification of certain aspects of its trade policy direction and approach. Our thanks to Switzerland 
for its replies to these questions, which we shall examine very carefully.  
4.184.   I would like to mention a few of the issu es that we raised, in which we have a particular 
interest.  
4.185.   First, the so -called "Swissness legislation " allows a previously recognized geographical 
indication (GI) to be registered as a geographical trademark. This new mechanism is introduced as 
an additio nal instrument in order to further facilitate the protection and enforcement of the rights 
of GIs abroad under trademark law regimes. We would like to engage with the Swiss Mission to 
explore the terms of implementing this new mechanism in further detail.  
4.186.   Second, while we appreciate that Liechtenstein was the first WTO Member to ratify the 
revised plurilateral Agreement on Government Procurement in 2013, Switzerland 's ratification of 
the revised GPA is still eagerly awaited in the near future.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.187.   And, thirdly,  along with many Members with similar concerns, we would appreciate having 
more information from Switzerland on its restrictions or requirements affecting foreign investment, 
and its measures taken or planned to facilitate imports, to implement the Trade F acilitation 
Agreement, to protect copyrighted works in the digital environment, etc.  
4.188.   Finally, on our bilateral trade and investment relationship with Switzerland and 
Liechtenstein, we have very close and longstanding economic ties with both countries. Curr ently, 
Switzerland is among one of our top trading partner and an important destination for our overseas 
investment. In 2016, the total value of bilateral trade between us was around US$2 billion, while 
our new investment in Switzerland and Liechtenstein t ogether totalled about US$200 million.  
4.189.   Our trade and investment with both countries may have shown significant growth, but it is 
evident that there is still huge potential for improvement. We would definitely benefit from 
continuing efforts to deepen our b ilateral cooperation in trade, investment, culture and other 
important areas in the future.  
4.190.   In conclusion, I take the opportunity to wish Switzerland and Liechtenstein a very 
successful Trade Policy Review.  
CANADA  
4.191.   Canada appreciates the opportunity to part icipate in the WTO 's trade policy review 
mechanism, which is an important function of the WTO. Canada welcomes a collaborative 
approach to examining key themes and questions with a view to enable practical exchanges of 
information on our bilateral commerci al relations with Switzerland and Liechtenstein, respectively.  
4.192.   Switzerland and Liechtenstein have reiterated their deep commitments to the multilateral 
trading system and to ongoing liberalization efforts. Like Canada, Switzerland and Liechtenstein 
are tra ding nations largely dependent on foreign markets for their econ omic prosperity. 
Canada -Swiss/ Canada -Liechtenstein bilateral relations are close, positive and constructive. Our 
like-minded values are reflected in our strong commitment to working together o n key global 
issues such as free trade, environmental protection, peacekeeping and protection of human rights, 
including a focus on inclusion and gender equality. Trade and innovation are of high importance to 
our respective markets and there are excellent  business and investment opportunities for 
Canadian companies across a wide range of sectors in the market. Many opportunities exist as well 
for Swiss and Liechtensteinian companies looking to do business and to expand their activities in 
Canada.  
4.193.   In partne rship with Iceland and Norway, Canada, Switzerland, and Liechtenstein are 
parties to the Canada -European Free Trade Association Agreement (CEFTA). This goods -focussed 
agreement reflects our shared commitment to trade liberalization. Canada and EFTA are als o 
currently exploring the potential to expand this FTA. Expanding the CEFTA and other bilateral trade 
agreements to include new and modern elements would be an opportunity to show leadership in 
international trade, secure the benefits of further liberalisa tion, and ensure that these benefits are 
broadly shared.  
4.194.   While we accord particular importance to our relationships with Switzerland and 
Liechtenstein, we would like to share certain preoccupations in the hopes of maintaining and 
advancing our strong links . In relation to Switzerland 's bans on the import of seal products with 
exceptions for those items derived from hunts traditionally conducted by Inuit or other indigenous 
communities, Canada continues to question the legitimacy of the ban from a policy sta ndpoint. 
Moreover, Canada disputes any claim that the Swiss seal ban contributes to preserving wildlife in 
the Arctic. Seals are integral to the livelihoods of Indigenous people in the Canadian Arctic, and 
these communities have been relying on this resour ce in a sustainable and humane manner for 
millennia.  
4.195.   Canada also encourages Switzerland to enhance its efforts to liberalize trade in its 
agricultural sector. The progressive elimination of export subsidies, the reduction of domestic 
support and improved m arket access for agricultural products would benefit Switzerland as much 
as its commercial partners. Canada takes note of Switzerland 's efforts towards a plan to eliminate 
export subsidies by 2020 and looks forward to further agricultural policy reforms.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.196.   Despite these concerns, Canada and Switzerland enjoy a very healthy trading relationship. 
The Government of Canada recognizes that trade, investment and innovation are vital to our 
respective economies, and Canada is committed to maintaining and expanding a ccess to existing 
and new markets.  
4.197.   Trade and investment between both Canada and Switzerland and Canada and 
Liechtenstein is strong and growing. We have developed a sophisticated bilateral commercial 
relationship spanning from the traditional trade in good s to greater trade in services, innovation 
and investment. Together, Switzerland and Liechtenstein are Canada 's 14th largest merchandise 
trading partner with two -way trade amounting to nearly $6 billion in 2016. Our mutual exchange 
of foreign direct invest ment with the two countries is also significant, with Switzerland being the 
10th largest foreign investor in Canada.  
4.198.   Indeed, like Switzerland and Liechtenstein, Canada recognizes the importance of ensuring 
that trade results in broad -based benefits for our  citizens and for those throughout the world. This 
is fundamental to Canada 's progressive trade agenda. Canada looks forward to working 
constructively with Switzerland and Liechtenstein to facilitate the mutual prosperity that can flow 
from our economic re lationship, and to build a strong domestic and global consensus on the value 
of trade, investment and inclusive growth.  
4.199.   The World Economic Forum Global Competitiveness Report ranked Switzerland as the most 
competitive economy in the world for 2016 -2017, a distinction it has held for the last eight years. 
Switzerland 's innovation -driven and knowledge -based economy provides foreign companies and 
institutions with opportunities for collaboration and for attracting investment in research and 
development.  
4.200.   Switz erland is a priority science, technology, and innovation partner for Canada. Canada 
deeply values its bilateral relationship with the numerous partnerships between our respective 
research organizations, and we welcome opportunities to further collaborate i n the area of science, 
technology and innovation. Indeed, our mutual commitment to promoting innovation and 
international business development contributes to growing a dynamic bilateral commercial 
partnership.  Other areas of collaboration include the Cana da-Switzerland Tax Convention and the 
Canada -Switzerland Air Transport Agreement.  
4.201.   In closing, we appreciate the opportunity for this constructive exchange of views on all 
aspects of Switzerland 's and Liechtenstein 's economies. We have submitted a number of  questions 
and thank the parties for their responses, which we are still reviewing. Finally, we wish the 
delegation the utmost success during this review.  
GUATEMALA  
4.202.   Guatemala has a solid relationship of friendship and cooperation with Switzerland and 
Liechtenstein, which is reflected in a variety of areas such as trade and the economy, as well as in 
different forms of exchange in such fields as science, justice, security and culture. Similarly, 
Switzerland and Guatemala have signed agreements in different f ields such as trade, air transport 
and mutual protection of investment.  
4.203.   The Agreement on the Reciprocal Promotion and Protection of Investments between 
Switzerland and Guatemala entered into force in May 2005. In June 2015, Guatemala signed the 
protocol of  accession to the Trade Agreement between Central America and the European Free 
Trade Area (EFTA) to which both Switzerland and Liechtenstein belong. The Agreement is still 
awaiting approval by the Congress of the Republic of Guatemala, but once it enters into force, it 
will give Guatemala duty -free income on 77% of agricultural products and 100% of manufactured 
products.  
4.204.   In 2016, trade flows between Guatemala, on the one hand, and Switzerland and 
Liechtenstein, on the other, exceeded US$26.8 million. Guate mala's main imports from 
Switzerland are pharmaceuticals, cosmetics, mechanical equipment for electro -technical use and 
medical instruments. The main Guatemalan exports to Switzerland and Liechtenstein are coffee, 
fungicides and disinfectants, and paper an d paperboard.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.205.   Regarding today's Trade Policy Review of Switzerland and Liechtenstein, for the period 
2013-2017, we would lay stress on the diversified and advanced state of their economies, a 
characteristic which has enabled them to manage the various comp lexities of the world economic 
environment over the last decade. Thanks to this, as well as their high standards of governance 
and the application of the principle of fiscal prudence, both countries have succeeded in 
maintaining a strong and consistent pos ition in the world economy.  
4.206.   In regard to future challenges, we urge Switzerland to continue implementing the 
commitments made at the 10th Ministerial Conference in Nairobi, relating to export subsidies for 
agricultural and agro -industrial products. Another  important challenge in the short term is to find 
ways of addressing the economic difficulties relating to competitiveness caused by the strong 
Swiss franc, high domestic prices and the sluggish growth of productivity.  
4.207.   We recognize the efforts and major ac hievements of Switzerland and Liechtenstein during 
the review period. We are also grateful for the replies to the questions asked by Guatemala during 
the course of this review.  
4.208.   We hope to go on strengthening our important trade ties, and we wish the delega tion 
representing both countries today a successful conclusion to their Trade Policy Review.  
ECUADOR  
4.209.   This Trade Policy Review is of considerable interest to our country, as we are currently 
nearing finalization of a Comprehensive Economic Partnership Agree ment (CEPA) between Ecuador 
and the European Free Trade Association (EFTA). In fact, I should like to take the opportunity to 
express our gratitude to all the members of EFTA, through the delegations of Switzerland and 
Liechtenstein, for the cordial welcom e extended to the Ecuadorian negotiators during the 
second  round that took place last February in this city.  
4.210.   We trust that the negotiations will continue advancing positively, as they have up to this 
time, so that we may very soon be able to reach a mutual ly advantageous arrangement which 
combines our common interests and reflects the traditional relationship of friendship that exists 
between our peoples.  
4.211.   With regard to the report submitted by the Secretariat, we take note of the sound and 
sensible manageme nt of the Swiss economy, which is reflected in its macroeconomic indicators 
and its continuous growth.  
4.212.   We note the skill demonstrated by Liechtenstein in overcoming the difficulties associated 
with its status as a small country that has not only developed a dynamic industrial sector but has 
positioned itself as one of the key world players in the financial services sector.  
4.213.   We observe that the "strong franc" creates problems of competitiveness, particularly in 
view of the major differences in domestic prices  with their European Union neighbours. In this 
connection, we note the current focus on promoting price competition in order to boost 
productivity.  
4.214.   Another noteworthy issue is the application of the "Cassis de Dijon" principle for the 
elimination of techni cal barriers to imports, but a more detailed study of its practical application 
will be needed in order to assess its effectiveness.  
4.215.    In this connection, we welcome the elimination of the positive principle under the food 
safety regime that has been in eff ect since 1 May of this year.  
4.216.   The report underlines the increase in the volume of Swiss trade under preferential 
agreements, in particular through the conclusion of various new agreements, in a network which 
Switzerland continues very actively to expand.  
4.217.   On the multilateral front, we welcome the acceptance by Switzerland and Liechtenstein of 
the WTO Trade Facilitation Agreement (TFA) in 2015.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.218.   We commend the steps taken to strengthen anti -money laundering legislation, as well as 
the actions undertaken to sec ure the eventual elimination of export subsidies, in accordance with 
the commitments entered into at the Nairobi Ministerial Conference.  
4.219.   However, it is observed that Switzerland continues to provide a high level of protection for 
its agricultural sector by  means of high import tariffs on sensitive products. At the same time, its 
quota system is highly complex.  
4.220.   For developing countries like Ecuador, trade and development go hand in hand to the 
extent that we achieve the goal of opening new markets for our pr oducts and improving their 
conditions of access. Greater openness for developing countries benefits all of us, generates 
employment and wealth, ensures equity and creates a better future.  
4.221.   According to economic forecasts, Switzerland and Liechtenstein will continue to experience 
steady economic growth in the years ahead. We hope that both countries will go on strengthening 
their economies in the sectors requiring reinforcement, so that they can continue to meet their 
socio-economic targets for the future.  
4.222.   In conclusion, we wish to thank the delegations of Switzerland and Liechtenstein for their 
replies to the questions we have raised on certain specific aspects of their trade policy, which will 
provide important information for the strengthening of bilateral trade relations.  
4.223.   I wish both countries every success under the current Review.  
CHILE  
4.224.   The links between Chile and Switzerland date back to the end of the 19th century, when a 
group of Swiss citizens settled in the area of Araucanía, in the south of our coun try. It is estimated 
that more than 8,000 Swiss immigrants received land grants in this area, where over time they 
prospered and left their own distinctive cultural and productive imprint.  
4.225.   In the course of time, this heritage and presence in our society wa s reflected, among other 
things, in the election of two outstanding Presidents of the Republic of second and third generation 
Swiss descent, namely Eduardo Frei Montalva in 1964, and Eduardo Frei Ruiz -Tagle, in 1994. 
Today, the migration flows are reversed  and some 7,000 Chileans have set up home in Switzerland 
in order to work and make their fortune.  
4.226.   The Chile -Switzerland relationship centres on such areas as energy, mining, education, 
innovation, cooperation, investment and trade, the environment and join t ventures involving 
SMEs. Both of our countries also share values and principles in their international activity, and we 
are active members of a range of multilateral international institutions.  
4.227.   One precise reflection of this close relationship is the pol itical consultation meeting 
between both countries, to be held on 22 May next, in Bern.  
4.228.   The economies of Chile, Switzerland and Liechtenstein are open to the world and highly 
dependent on international trade. Consequently, collaboration in the WTO framewor k is essential 
to maintaining the rules -based multilateral system and continuing to promote trade liberalization, 
particularly in more sensitive areas such as agriculture.  
4.229.   The trade relations between Chile and Switzerland and between Chile and Liechtenstei n are 
framed by the Free Trade Agreement signed in 2003 in Chile and the European Free Trade 
Association (EFTA), a community comprising Iceland, Norway, Liechtenstein and Switzerland.  
4.230.   This treaty covers all the main areas of economic relations, including t rade in goods, 
services and investment. As a corollary to this FTA, Chile and Switzerland have launched an 
institution of bilateral economic dialogue.  
4.231.   The FTA between Chile and EFTA has served to progressively increase our bilateral trade 
since its incepti on. Following the entry into force of the Agreement in 2004, trade with EFTA grew 
at an annual rate of 20%, leading to 50% growth over this period of years.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.232.   Under the Agreement, most exports to the EFTA countries are allowed duty -free entry. In 
the case of  Switzerland, there are zero duties on 90.7% of the tariff universe, which corresponds 
to more than 96% of the quantity of Chilean exports. At the same time, 88% of imports from 
Switzerland enter Chile duty free.  
4.233.   Trade with Switzerland – representing 89% o f Chile's foreign trade with EFTA – totalled 
US$819 million in 2016. This is an increase of 5.5% over the previous year. This increase is a 
positive sign, especially when compared with the variation between 2014 and 2015, when there 
was a 46% decline. The trade balance showed a surplus of US$306 million for Chile in 2016.  
4.234.   Despite the success of the Agreement between Chile and EFTA, it is important to examine 
whether there is any room for improvement so that it can be branded a 21st century agreement. 
Accord ingly, both parties have initiated a process to modernize the agreement and incorporate 
new trade elements which it was not necessarily the practice to include more than ten years ago.  
4.235.   Turning to another matter, it should be mentioned that Switzerland has been an observer 
State to the Pacific Alliance since 10 February 2014.  
4.236.   With regard to Switzerland's economic and trade profile, we welcome the fact that, despite 
the difficult environment, it continued growing at an average rate of 1.5% in the period 
2013-2015, and the unemployment rate has remained relatively low (4.5%).  
4.237.   We also welcome the adoption by Switzerland and Liechtenstein of the automatic exchange 
of information (AEOI) in tax matters, in order to combat cross -border tax evasion in the area of 
banking services. At the same time, we highly appreciate the fact that Switzerland has 
strengthened its anti -money laundering legislation.  
4.238.   Another noteworthy positive development is the Swiss Government's initiation of internal 
procedures to eliminate its pol icy of export subsidies – as provided for in its Agricultural Policy 
2014-2017 – by January 2019 at the latest, in accordance with commitments made at the 
Nairobi  Ministerial Conference.  
4.239.   Although the trade regimes of Switzerland and Liechtenstein are among  the most liberal in 
the WTO framework, we cannot avoid drawing attention to the existence of excessive protection in 
the agricultural sector, in the form of various tariff and non -tariff measures.  
4.240.   An analysis of the WTO Tariff Profile of Switzerland and L iechtenstein reveals that the 
average tariff applied to agricultural products (MFN) is 30.8%, an average which for Chile, despite 
the FTA, is 29.2%. Meanwhile, Chile applies to agricultural imports a rate (MFN) of only 6%. In 
other words, we continue to ha ve an atypical case of reverse special and differential treatment.  
4.241.   For this reason, we continue to encourage Switzerland and Liechtenstein to increase the 
market orientation of their agricultural production and trade policies.  
4.242.   In conclusion, we should like  to underscore the Secretariat report's observation that 
Switzerland and Liechtenstein continue to be strong supporters of a rules -based multilateral 
trading system and, during difficult times for the global economy, advocate further trade 
liberalization. In our opinion, these are fundamental principles at this time, and we therefore 
highlight them.  
4.243.   Chile put forward ten questions under this sixth review, and we appreciate the replies.  
4.244.   We wish Switzerland and Liechtenstein success in this review of their tr ade policy.  
DOMINICAN  REPUBLIC  
4.245.   Relations between Switzerland and the Dominican Republic were initiated some 80 years 
ago, and since then have steadily grown and become closer. In value terms, Switzerland ranks 
sixth as a destination of total exports from t he Dominican Republic, accounting for a total of 
US$727.5  million for the period 2010 -2016. Switzerland also occupies sixth position as a source of 
foreign direct investment in our country.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.246.   We congratulate both countries on the management of their economy , which, as is 
indicated in the Secretariat report and despite the economic crisis experienced worldwide since 
2008, is highly diversified and advanced, and has successfully weathered the storms caused by the 
economic problems in the euro zone and the appr eciation of their currency, the Swiss franc, 
thanks to fiscal prudence. The Swiss economy continued to grow by 1.5% on average in 
2013-2015, while the unemployment rate remained relatively low (4.5%). However, Switzerland 
continues to face important challe nges in respect of competitiveness, the strength of the Swiss 
franc, high domestic prices and productivity.  
4.247.   The biggest sector of the Swiss economy is that of services, which accounts for roughly 
74% of GDP, but it also possesses a strong, high -tech and e xport -oriented manufacturing sector 
which accounts for approximately 19% of GDP. Liechtenstein has a large industrial sector, 
accounting for 41% of GDP, followed by financial services, which account for 25% of GDP.  
4.248.   We also commend the fact that Switzerland  has been able to diversify its export markets 
and that, although the European Union remains its number one export and import market, it has 
also recorded a significant increase in exports to the United States and China. The chemical and 
pharmaceutical ind ustry is Switzerland's largest export industry and accounted for approximately 
CHF 85 billion or more than 40% of total goods exports in 2015.  
4.249.   Both Switzerland and Liechtenstein continue to have a generally open trade regime, and 
they advocate further trad e liberalization. In this connection, we welcome both countries' 
ratification of the Trade Facilitation Agreement.  
4.250.   On the other hand, attention should be drawn to two features which need improvement, 
namely the high degree of protection in the agricultura l sector and the fact that all of the applied 
tariffs are specific tariffs.  
4.251.   Mention should also be made of the compulsory reserve stock regime for certain products, 
based on contributions to the guarantee fund which, together with applied tariffs, could co me to 
exceed Switzerland's bound commitments on various tariff lines; this should be taken into account 
and corrected.  
4.252.   We congratulate Switzerland and Liechtenstein on having reformed banking services by 
adopting the automatic exchange of information in ta x matters, in order to prevent tax fraud and 
money laundering.  
4.253.   We have submitted various questions to Switzerland concerning tariff quotas and certain 
measures affecting imports; we are grateful for the replies. Lastly, it only remains for us to wish 
Switz erland much success in this review and in the future.  
SINGAPORE  
4.254.   The connections between Singapore, Switzerland and Liechtenstein run deep. We are all 
small, open economies with limited natural resources, which are highly reliant on international 
trade for our growth. Our approach to trade, openness and globalisation are similar. It is therefore 
not surprising that the Singapore -EFTA Free Trade Agreement which came into force in 2003 was 
the first FTA signed between EFTA and an Asian country. Last year, Swit zerland was Singapore 's 
3rd largest European trading partner, and 4th largest source of FDI from Europe. Our bilateral 
trade with Liechtenstein has also been on the upward trend,  
4.255.   During the period under review, both Switzerland and Liechtenstein have emer ged as an 
oasis of stability and resilience amidst volatile global and regional developments. Despite the 
challenges, both economies have done well, and more importantly, maintained its progressive 
posture towards trade and liberalisation. We note with par ticular interest Switzerland 's Growth 
Agenda 2016 –2019, which is focused on tackling labour productivity growth, strengthening the 
resilience of the economy, and improving resources and infrastructure prod uctivity. We commend 
the Swiss G overnment for takin g proactive steps to embrace these challenges, which we, too, face 
in Singapore. We would therefore be interested to learn from, and exchange ideas on how best to 
address these structural issues as our economies mature.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
- 38 - 
 
  4.256.   We note also that the Growth Agenda  comprises, amongst others, measures to open up 
the Swiss economy to imports to increase competition in the domestic market, and to enable the 
digital economy. In this regard, while we have absolutely no doubt about the tastiness and quality 
of Swiss agric ulture products, reducing the disparity between the average tariffs for agriculture 
products (30.8%) and that for non -agriculture products (2.3%) is one area which would benefit 
both the Swiss economy, and consumers alike. We also look forward to the imple mentation of 
measures such as the raising of de minimis thresholds for small consignments, which would spur 
the development of a more vibrant e -commerce landscape.  
4.257.   In today 's environment of growing protectionism and cynicism towards trade, the WTO – 
and t he world - needs more Members such as Switzerland and Liechtenstein who are strong 
supporters, and defenders, of the rules -based multilateral trading system. Their faithful 
implementation WTO Agreements and commitments, including the Trade Facilitation Agr eement 
are commendable. On the plurilaterals, we thank Liechtenstein for its ratification of the revised 
GPA, and note that Switzerland is in the process of doing so; as is the case with the 
implementation of the expanded ITA.  
4.258.   Finally, we would like to sa y a word about the important contributions of the Swiss 
delegation, in particular, to the work of the WTO. We are reminded week after week in Geneva the 
indispensable role played by the Swiss delegation – from the convening of the Friends of the 
System gro up, to the hosting of the annual Davos Informal WTO Ministerial Gathering, to the 
Chairing of the NAMA Negotiating Group, and not forgetting its critical contribution to the 
Ministerial Decision on Export Competition in Nairobi. We very much appreciate the  facilitative, 
problem -solving, and consensus -building role which generations of Swiss diplomats, including of 
course Ambassador Didier Chambovey and his very able team, have played in upholding, and 
advocating for the multilateral trading system. They are  indeed very good and true friends of the 
System, and also of Singapore.  
THAILAND  
4.259.   Switzer land and Liechtenstein continue  to be important trade partners for Thailand. In 
2016, Switzerland ranked as Thailand 's 15th largest trading partner as bilateral trade grew by 
28% from the previous year reaching a total trade value of approximately US$9 billion. The 
two-way trade between the two countries is complementary with Thai exports consists of Gems 
and jewelleries , electrical machineries, and a utomobile, while ma jor imports from Switzerland 
include  Gems and jewelleries , clock and watches, machineries, and pharmaceutical products.  
4.260.   As for Liechtenstein, the bilateral trade grew by 4.2% in 2016 totalling  US$154 million. 
Thailand 's major exports to Liechtenstein consi st of Gems and jewelleries , glass and glassware, 
and processed meet. While imports include pharmaceutical products, electrical machineries, and 
medical instruments.  
4.261.   We are pleased to note strong economic fundamentals of Switzerland and Liechtenstein 
which resulted in upward economic growths since the last review. Thailand also commends the two 
countries for their continued efforts to improve their trade and investment environments.  
4.262.   For agriculture, although we are pleased to note that, in l ine with its MC 10 commitments, 
the Swiss Government has initiated domestic procedures to elimin ate export subsidies by 
January  2019, we feel that further work can be done in Market Access for agriculture as the vast 
difference between average MFN tariffs on agricultural p roducts and non -agricultural products 
remain high at 28.5 percentage points in 2016. The tariffs regime can also be improved with 
simplification of the tariffs system as all of Switzerland -Liechtenstein 's applied tariffs continue to 
be expressed as specifi c rates and administration of the tariff quota system continues to be 
complex in nature.  
4.263.   In this review, Thailand submitted a few of questions to Switzerland, covering the policies 
and mea sures of our interests such as standards, p rivatiza tion of STEs, and  competition p olicies. 
We appreciate the prompt replies provided to our questions, for which we will study carefully with 
great interest.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
- 39 - 
 
  4.264.   In conclusion, Thailand would like to express its appreciation to the both the delegations of 
Switzerland and Liechten stein for today 's presentation. We are thankful for the cooperation with 
both countries in every level, and wish t hem every success in their 5th j oint Trade Policy Review.  
JAPAN  
4.265.   It is a pleasure for Japan to take part in the TPR meeting for Switzerland and  Liechtenstein.  
4.266.   Needless to say, Liechtenstein  and Switzerland are two important political and economic 
partners for Japan. Japan is ready to make constant efforts to maintain and develop such good 
relationships.  
4.267.   According to the Swiss G overnment, the Swi ss economy recovered from stagnation in the 
latter half of 2016, supported mainly by domestic consumption. 1.7% of GDP growth rate in 2017 
and 1.9% in 2018 are forecasted. Following the recovery of the economy, the unemployment rate 
is also expected to be at a very low level of 3.2% in 2017 and 3.1% in 2018. These results are due 
to the growth in domestic consumption, the steady increase in population and also the growth of 
exports of pharmaceutical, machinery, electronic equipment and metal industry. Japan  evaluates 
them positively.  
4.268.   These strong economic indicators are based on the assumption that the Swiss franc will be 
stable. As mentioned in the Secretariat report, during the review period, the Swiss National Bank 
had been actively implementing a monetar y policy including the well -known negative interest rate 
policy.  
4.269.   Let me make some comments on specific issues.  
4.270.   First, I would like to touch upon the ongoing pension reform. According to  the 
announcement of the Swiss G overnment, the pension reform "AV 2020 pension reform package " 
has been discussed in the Swiss Federal Assembly and has been adopted in March. We have been 
informed that this reform proposal will be put to the national referendum in September. Said 
reform includes rising the age of starting pen sion payment of women, reducing the pension 
amount of corporate and welfare pension, maintaining the rate of value added tax rate, which 
appears to be primarily due to addressing the aging of the population. Japan faces similar 
challenges and has great int erest in this reform. Japan would like Switzerland to explain how it 
was discussed at the Federal Assembly and the prospects for a referendum.  
4.271.   Second, some reports noted that the State Secretariat for Economic Affairs (SECO) is now 
preparing a report about  robots for discussions in autumn. According to the reports, this report by 
the SECO will focus on the impact of digitization and automation on employment and the social 
security system. Regarding technology substitution by Artificial Intelligence, we hope  that Swiss 
Government proceeds with a calm discussion based on objective facts. Japan would like the Swiss 
Government to explain the current situation of the preparation of the SECO 's report.  
4.272.   In conclusion, I would like to express our strong wish to conti nue cooperation among 
Liechtenstein, Switzerland and Japan.  
4.273.   We wish Liechtenstein and Switzerland every success in this Trade Policy Review.  
REPUBLIC  OF KOREA  
4.274.   Korea and Switzerland  have developed a strong economic relationship since the  
establishment of d iplomatic relations  in 196 3. Our economic relations have continued to deepen 
since the FTA between Korea and the EFTA came into force in 2006.  
4.275.   As a result , the volume of bilateral trade reached a record level in 2015, amounting to 
approximately US$4 billi on. Korea is Switzerland 's fifth -largest export market in Asia, while 
Switzerland is Korea 's ninth -largest  export destination as of 2015.  
4.276.   Korea 's total stock of investment in Switzerland reached US$123 million in 2015. 
Switzerland has substantially increas ed its investment in Korea, with the cumulative amount WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  reaching US$2.5 billion. With regard to Lichtenstein, we are pleased to witness that our bilateral 
trade volume is steadily increasing, accounting for US$18 million in 2015.   
4.277.   From a trade policy persp ective, as the Secretariat 's report noted, there has been no 
drastic change during the review period.  
4.278.   The structure of the applied MFN tariff2 and the competition regimes of Switzerland and 
Liechtenstein have changed little. Both countries remain generall y open to foreign investment, and 
no specific trade concerns have been raised in the TBT and SPS Committees. It is also noteworthy 
that Switzerland and Liechtenstein do not have any specific anti -dumping, countervailing or 
safeguard legislation, and have n ever applied such measures.  
4.279.   As the Secretariat also noted, we appreciate that Switzerland and Liechtenstein have 
strongly supported the multilateral trading system. Both countries formally accepted the Trade 
Facilitation Agreement (TFA) in September 2015,  and have participated in plurilateral agreements 
such as the expansion of the ITA and the revised  GPA. In addition, Switzerland has submitted well 
over 100 notifications on a broad range of subjects, showing its commitment to implementing the 
WTO Agreemen ts.  
4.280.   We commend Switzerland for playing  a constructive role in the WTO negotiations. 
Switzerland has made great contributions to the negotiations by hosting the Informal WTO 
Ministerial Gathering during the annual World Economic Forum (WEF) in Davos. Furth ermore, 
Ambassador Chambovey is making efforts to seek convergence in NAMA as Chair. He is also 
presiding over the Friends of the System (FoS) meeting, in which middle -grounders share their 
views and information on the ongoing n egotiations. As a G 10 coordi nator, Switzerland continues 
making endeavo urs to facilitate agricultural discussions.  
4.281.   We should  take note as well that the Swiss G overnment has initiated domestic procedures 
to eliminate export subsidies by January 2019, in line with commitments made at t he WTO 
Ministerial Conference in Nairobi. Despite these steps, as (the previous speakers and) the 
Secretariat 's report noted, the agriculture sector in Switzerland remains vulnerable to a more 
competitive environment, highlighting the need for more market -oriented reforms.  
4.282.   Notwithstanding the strong  performance  of both countries , Korea must mention its concern 
about Switzerland 's visa program me. According to Korean companies doing business in 
Switzerland, they have experienced  difficulties in relation to excessive administrative procedures  of 
visa issuance and renewal for foreign nationals, which can function as a non-tariff barrier (NTB).  
4.283.   My delegation has submitted , albeit somewhat late,  our written questions on this point.  We 
look forward to receiving answers in due course .  
4.284.   Korea fully share s the view expressed in both G overnment reports that the multilateral 
trading system has to be strengthened . It is my sincere hope that we will seize the opportunity 
afforded by MC 11 to achieve deliverables and reinfor ce the system against the backdrop of rising 
protectionism.  In this regard, we expect and trust that Switzerland and Liechtenstein will make a 
meaningful contribution to ensur ing the success of MC 11 in Buenos Aires.  
4.285.   With this, we would like to express our  deep appreciation to the Swiss and Liechtenstein  
delegation for their hard work and wish them every success in this TPR.  
TURKEY  
4.286.   There is no question that the Swiss economy has proven to be highly resilient especially in 
the aftermath o f global economic a nd financial shocks.  
4.287.   Bearing in mind that Switzerland 's biggest trading partner is the EU, its economic activity 
will also be determined to a great extent by the economic recovery in Europe, which remains to be 
                                                
2 The average applied MFN tariff was 9.0% in 2016, compared with a simple average of 9.2% in 2012. 
MFN tariffs on agricultural products averaged 30.8% in 2016, while the average for non -agricultural products 
was 2.3%.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
- 41 - 
 
  fragile. The question for the period ahead wi ll be to maintain this resiliency, something the EU and 
the OECD have put at the center of their discussions.  
4.288.   Strong Swiss franc, wea k productivity growth and being  high-priced economy remain as 
important issues to tackle.   
4.289.   The EU is also Turkey 's single  biggest trading partner, something we have in common with 
Switzerland. We will be follo wing the implementation of the New Growth Policy for the term 
2016-2019, centered on the further opening to imports.  
4.290.   Turkey commends the commitment of Switzerland to t he multilateral trading system and 
active participation in it. Turkey will also be closely following Switzerland in its efforts to support 
the 2030 Agenda for Sustainable Development.  
4.291.   The introduction of the Registered Exporter system (REX system) on 1 January 2017 is 
noteworthy as a trade facilitation measure for LDC 's.  
4.292.   We welcome that Switzerland hasn 't been involved in any dispute settlement cases as a 
respondent during the period under review.  
4.293.   Turkey has a well -established framework for trade with Sw itzerland and Liechtenstein. 
Indeed, one of Turkey 's first Free Trade Agreements was concluded with EFTA in 1991.  
4.294.   The Agreement covers industrial products, processed agricultural, fish and marine 
products, and complements Turkey -EU and Swiss -EU and EEA (fo r Liechtenstein) agreements. 
Revision of parts of Turkey -EFTA FTA is underway, which we hope will stimulate more activity.  
4.295.   The "High-Level Consultation Mechanism " established in 2001 has proven to be functional. 
Its seventh meeting was in November 2017. It  also brought the representatives of the private 
sector with the most trade activity. We find this platform highly useful and intend to utilize it as 
much as possible to address important trade related issues.   
4.296.   One expectation is the application of rules and regulations in product safety, quality and 
standardization. Products under the FTA enjoy a smooth movement between the Parties.  
4.297.   However, for products not covered by the FTA, we continue to face diffic ulties  that 
negat ively impacts bilateral trade. For instance, high customs duties applied by Switzerland to a 
number of food  products hinder market access for those products. The Swiss Agricultural Code has 
a similar effect as it discriminates between the imports of products that are produced in 
Switzerlan d and those that are not. It also sets up quotas for the import of seasonal products off 
season.  
4.298.   On the other hand, the difficulty of employing workers from non -EU and non -EFTA 
countries, Canton -based working quotas, visa application procedures, the high c ost of domestic 
labour and services and the relatively conservative structure of the Swiss construction sector 
constitute deterrents for Turkish construction firms.  
4.299.   When it comes to trade flow, the volume of trade between Turkey and Switzerland has had 
ups and downs between US$5 and US$10 billion.  
4.300.   One of the reasons for this is the difference in the way Turkey and Switzerland register 
gold. Gold has been a key component, which accounts over half of our t rade. If we do not take 
that into account that numbe rs look steady. This is also true for other countries ' balance sheets 
with Switzerland.  
4.301.   With respect to the trade policy regimes of Switzerland and Liechtenstein, Turkey 
submitted a number of written questions in advance, seeking further clarification on policy 
direction and approach. We look forward to receiv ing responses in due course.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  INDIA  
4.302.   Switzerland is a high income country with strong institutions and good governance. 
Liechtenstein also is a small but wealthy country with a vibrant industrial secto r, financial services 
industry and a diversified economy. During the period under review we note that, despite the 
challenging global environment the Swiss economy which is well diversified , continued to grow at 
an average rate of 1.5% between 2013 -15 with  a relatively low rate of unemployment. The current 
account of Switzerland also has been traditionally surplus and it is a key destination for foreign 
direct investment. The key challenges for the Swiss economy include maintenance of competitive 
edge despi te strong currency, high prices, weak productivity growth and complexity of relations 
with the EU. We commend the Swiss Government for the various measures and policies 
undertaken to further strengthen the economy and sustained efforts to preserve its comp etitive 
position. As part of the growth agenda, the Government is focussing on labour productivity growth, 
strengthening resilience of the economy and improving resources and infrastructure productivity.  
4.303.   During the period under review, the GDP of Liechtens tein which is essentially an export 
oriented economy continues to grow with the rate of 3% in 2014. Despite its small size, 
Liechtenstein is amongst the highly industrialized countries with competitive strengths in high -tech 
niche products and financial se rvices. While the challenges of Liechtenstein are also similar to the 
Swiss economy, we commend the Government of Liechtenstein for their measures to promote 
exports and employment.  
4.304.   India shares warm, friendly and close relations with both Switzerland and Liechtenstein. 
We have a broad framework in place for strengthening commercial relations between both 
countries. The bilateral trade between India and Switzerland stood at US$2.02 billion in 2015 -16. 
The major items of trade between both countries include chemicals, pharmaceuticals, textiles, 
transport equipment and machinery. Investments from Switzerland in India have also continued to 
grow steadily in areas like services, chemicals, food processing, etc. with the presence of major 
Swiss multinationals and  stood cumulatively at US$3.57 billion in 2016. Indian companies are 
investing in Switzerland in the area of information technology, banking, finance and 
pharmaceuticals.  
4.305.   Recognizing the immense potential of our relations, India and EFTA have held several 
rounds of negotiations for an Agreement on Trade and Economic Partnership. We hope for an early 
conclusion which would give further fillip to our trade and commercial ties with Switzerland and 
Liechtenstein.  
4.306.   To conclude, we look forward to working closely with the authorities of Switzerland and 
Liechtenstein for further expanding and harnessing the vast potential of our trade and investment 
ties for mutual benefit. We wish the delegations of Switzerland and Liechtenstein a productive and 
successful TPR.  
PHILIPPINES  
4.307.   Switzerland and Liechtenstein are strong advocates of economic integration and trade 
liberalization. The close economic cooperation between the two countries is reflected in more than 
100 bilateral treaties, the most important of them being the Cu stoms Union Treaty and the 
Currency Union Treaty. Through these treaties, Switzerland is authorized to represent 
Liechtenstein in relevant negotiations and to conclude such treaties with effect in Liechtenstein.  
4.308.   Over the years, both countries continue to n egotiate and conclude bilateral and regional 
preferential agreements that complement and support the multilateral trading system. Most of 
these free trade agreements are negotiated, concluded and administered in association with the 
other European Free T rade Association (EFTA) member S tates, namely Norway and Iceland.  
4.309.   The Philippines has successfully concluded the Free Trade A greement with the EFTA in 
April 2016. This FTA seeks to provide greater market access and increase trade between the 
Philippines and  the EFTA countries. The Philippines and the other parties to the Agreement expect 
to complete the ratification process of the FTA within the year.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
- 43 - 
 
  4.310.   A Joint Economic Commission (JEC) was also established between the Philippines and 
Switzerland in June 2013 . The first meeting of the Commission was held in July 2014. The 
Philippines looks forward to hosting the 3rd JEC Meeting in November this year to further 
invigorate the Philippine -Swiss bilateral trade relations, and pave the way for closer economic 
coope ration in various areas of mutual interest. In 2016, Philippine exports to Switzerland 
increased by 54% and imports from Switzerland to the Philippines went up by more than 10% 
compared to the previous year.  
4.311.   The Philippines appreciates Switzerland 's suppo rt in the integration of developing countries 
into the global economy, particularly by strengthening the export capabilities of micro, small, and 
medium enterprises (MSMEs) to participate in international trade.  
4.312.   With the Philippine -EFTA FTA and the Philip pine-Switzerland JEC, the Philippines looks 
forward to further enhancing the mutually beneficial economic relations with Switzerland and 
Liechtenstein.  
4.313.   In closing, the Philippines would like to congratulate Secretary of State Marie -Gabrielle 
Ineichen -Fleisch and Ambassador Didier Chambovey of Switzerland, and Ambassador Peter Matt of 
Liechtenstein for their 5th joint trade policy review. Our appreciation also goes to H.E. David 
Walker of New Zealand for his insightful comments as discussant, and to the Secr etariat for 
preparing a comprehensive report.  
BURUNDI  
4.314.   My delegation notes with satisfaction that the economies of Switzerland and Liechtenstein 
are among the most internationally integrated worldwide, with a strong, rules -based international 
trading system , despite certain known economic difficulties.  
4.315.   My delegation also welcomes Switzerland's implementation of its agricultural policy for 
2014-2017 under a new policy framework which provides in particular for the overhaul and precise 
adjustment of the syste m of direct payments in order to improve its efficiency and effectiveness, 
with accompanying measures to address inconsistencies with WTO Green Box criteria.  
4.316.   However, Burundi notes that agriculture's contribution to Swiss GDP is marginal (less than 
1%) an d declining, while in Liechtenstein agriculture's contribution to GDP is negligible, although 
about one third of its territory is used as farmland. At the same time, the two countries share the 
challenges of having a very small domestic market.  
4.317.   Switzerland  and Liechtenstein accord non -reciprocal preferential tariff treatment to goods 
originating in beneficiary countries, while LDCs benefit from duty -free and quota -free access for all 
products.  
4.318.   Similarly, Switzerland is mindful of the strong need to develop  trade and make it work 
better for developing countries, in particular LDCs, and for sustainable development more 
generally, in line with the United Nations 2030 Agenda.  
4.319.   Burundi would argue that the development of trade is one of the multilateral solutions  that 
would put an end to discrimination between countries and create possibilities for integrating the 
multilateral trading system for all Members.  
4.320.   My delegation notes that 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.  
4.321.   In this regard, my delegation considers that Switzerland should ensu re that these 
measures do not constitute unnecessary obstacles to trade.  
4.322.   To conclude, Burundi commends the two countries under review for their commitment to 
participating in the strengthening of the multilateral trading system through ratification of the 
Trade Facilitation Agreement, the establishment by Switzerland of a national committee on trade 
facilitation and notifications to the WTO.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
- 44 - 
 
  4.323.   At the same time, my delegation congratulates Switzerland on having launched internal 
procedures to eliminate these export subsidies by 2019, in accordance with the undertakings given 
at the WTO Ministerial Conference in Nairobi.  
4.324.   My delegation would like to see Switzerland accelerate conclusion of the approval 
procedures for the Agreement on Government Procurement, at the federal and cantonal levels, in 
order to deposit its instrument of ratification.  
4.325.   Burundi wishes Switzerland and Liechtenstei n every success in their fifth Trade Policy 
Review.  
VIET  NAM 
4.326.   Switzerland and Liechtenstein are among the wealthiest countries in  the world and rank 
high on quality of life indices. Switzerland has also been recognized as the most competitive 
economy in the world in 2016 by the World Economic Forum for the seventh consecutive year. It 
leads the world in its capacity to innovate and scores highly for its education system and labo ur 
market efficiency.  
4.327.   Viet Nam has been enjoying stable trading relations with Switzerland and Liechtenstein. 
Development will continue to be an important dimension of the Viet Nam -Switzerland cooperation 
strategy for the period of 2017 -2020, in which Switzerland is going to provide ODA for Viet Nam to 
implement joint projects supporting the promotion of institution and economic policies, assisting 
the building of competitive and effective private economic sect or, and helping the sustainable 
urban development and climate change response.  
4.328.   Viet Nam, Switzerland and Liechtenstein are actively taking part in t he negotiations of the 
Viet Nam –EFTA free trade agreement, which aims at further liberalization of trade an d investment 
among the partners in order to unleash the potential for future cooperation. We hope that the two 
sides will reach a balanced outcome in the near future, taking into account the different levels of 
economic development between the two parties.  
4.329.   Viet Nam would also like to highlight the importance which Switzerland and Liechtenstein 
place on an active participation in the multilateral trading system. I would like to acknowledge the 
constructive role Switzerland plays in various negotiations group s within the WTO, which 
demonstrates the commitment of Switzerland and Liechtenstein in supporting the multilateral 
trading system.  
4.330.   Viet Nam wishes to commend Switzerland and Liechtenstein on their economic 
performance in the aftermath of the global econom ic crisis, and for their good standings amongst 
the most competitive and innovative economies in the world. We also commend their generally 
open trade regimes, strong support for expanding global trade. We look forward to enhancing the 
Viet Nam – Switzerla nd and Liechtenstein connectivity even further in the years to come.  
4.331.   We wish Switzerland and Liechtenstein a successful Trade Policy Review.  
NEPAL  
4.332.   The consistent position taken by Switzerland as a staunch supporter of the multilateral 
trading system, coupl ed by liberal trade and investment policies, are appreciable. We commend 
the positive role played by Switzerland over the years in DDA negotiations, support for Aid for 
Trade initiatives, provisions for DFQF market access, simplified rules of origin and no tification of 
services waiver for LDCs.  
4.333.   The support extended to LDCs through EIF tier II programme, and trade facilitation 
support programme in cooperation with World Bank are also mention -worthy. As trade plays a 
crucial role in economic growth, sustaina ble development, job creation and poverty reduction and 
can be an important tool for realization of Agenda 2030 for Sustainable Development, Switzerland 
could play an exemplary role by lowering technical barriers to trade to the products of LDCs.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.334.   Nepal is a longstanding beneficiary of Swiss aid and technical cooperation, which has made 
significant good impact on our socio -economic life. In line with the excellent bilateral cooperation, 
we want to attract more Swiss investment in trade -enhancing industrial v entures. Given similar 
geographic situation of high mountainous landlocked terrains, some of the landmark successes 
achieved by Switzerland in the areas o f value chains development and servicification of  trade draw 
our attention to take lessons for shaping  our own future in the multilateral trading system. 
Harnessing renewable energy, especially hydropower, and rich biodiversity products and tourism 
potentials through value chains development are among our priority in which we could work 
together.  
4.335.   To conclu de, the d elegation of Nepal once again commend s the role played by Switzerland 
in advancing the rules -based open and fair multilateral trading system, and its favo urable 
disposition to LDC agenda. I wish a successful Trade Policy R eview of Switzerland.  
MONTENEGRO  
4.336.   Montenegro would like to associate itself with the statement of the European Union.  
4.337.   Montenegro congratulates Switzerland and Liechtenstein for being stable and important 
pillars of the EFTA and the role models of vibrant, innovative and advanced e conomies in the heart 
of Europe. We commend Switzerland for showing resilience against the headwinds from the 
economic challenges including consolidation of its financial position after departure from the 
minimum currency peg to the euro and the strong Swi ss franc, and on ensuring that the economy 
grew by modest but steady 1.5% on average in 2013 -2015, accompanied by a relatively low 
unemployment rate of 4.5%. Montenegro similarly commends Lichtenstein for a strong economic 
performance during the challengin g times. Against the backdrop of economic parameters during 
the sluggish economic results in the neighbouring economies, such trends are very impressive.  
4.338.   Montenegro observes that Liechtenstein has a diverse economy, which is based on a 
comparatively large  industrial section and the financial services industry (about 41% and 25% of 
GDP respectively); and most sectors are open to national and foreign investment (subject to 
residency requirements), except for restrictions on: the purchase of real estate, prod uction, trade 
and transport of electricity, gas and water.   
4.339.   Montenegro equally observes that Switzerland remains among the top destinations for 
foreign direct investment s; and that economic sectors are open to investment, including by 
foreigne rs. While in vestment restrictions continue to apply to activities under state monopolies, 
including certain rail transport services  and telecommunication , Montenegro is pleased to see that 
foreign investment is an important aspect of the Swiss and Liechtenstein econom ies.   
4.340.   Of particular interest to Montenegro is the importance that Liechtenstein at taches to the 
WTO and the rules based multilateral trading s ystem, as well as Switzerland 's commitment to the 
WTO. We would like to congratulate Switzerland and Liechtenstei n for the ratification of the Trade 
Facilitation Agreement and we equally recognize their successful participation in the plurilateral 
ITA II and GPA. We are looking forward to Switzerland's final ratification of the revised GPA soon. 
Montenegro is firmly committed to the WTO and the multilateral trading system and looks forward 
to further cooperating with Switzerland and Liechtenstein as we approach the MC11.  In addition,  
we value the EEA/EFTA deep cooperation based on 25 free trade agreements in force wit h 
35 partners outside the European Union in which both Liechtenstein and Switzerland participate . 
4.341.   On the bilateral side, Montenegro has strong and sound relationships with both countries 
strengthened by the agreement with in the EFTA as an important coopera tion framework that 
entered into force in 2012 with political and diplomatic contacts at all levels. The first review of the 
implementation of the agreement was held in 2014 proving our mutual commitment, economic 
cooperation and reliable partnership. We w ant to use this opportunity to extend our interest for 
the next  second  review and to thank Liechtenstein for being our contact country and for further 
consideration of this request in the upcoming months. In addition, we are pleased to report that 
the Inve stment promotion agreement signed between Switzerland and Montenegro has resulted in 
significant increase of the FDI originating from Switzerland. This includes the 12 years investment 
project to be implemented in 3 phases in on e of the top tourist destina tion in Monteneg ro 
projected in the amount of €1. 1 billion. In addition, total FDI since 2007 from Switzerland WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  amounted for over €480 million . Montenegro is eager to expand the econo mic cooperation with 
both markets, to learn from the specific opportunitie s arise from Liechtenstein 's identity as a sm all 
State and the innovative capacity of Switzerland. We will continue to appreciate both countries ' 
valuable contribution to the international community  and sustainable trade and development .  
4.342.   Finally, Monteneg ro is looking forward to continuing excellent and constructive 
engagement with both Switzerland and Lichtenstein Missions in Geneva . I express our deep 
appreciation to Ambassador Chambovey and Ambassador Matt for their contribution to the work of 
the WTO a nd for the continuou s support to my delegation. We wish both States every success in 
their fifth joint Trade Policy Review.  
SRI LANKA  
4.343.   My delegation notes with interest the economic achievements of Switzerland and 
Liechtenstein by maintaining an average eco nomic growth of 1.5% during the period of 2013 -15 
with the relative low unemployment rate despite many economic impediments in the region, and in 
particular in the euro zone. Strong industrial sector complemented by financial and other services 
of Switzerl and have contributed significantly for a stable economy, despite its own limited 
domestic market.  
4.344.   Both Switzerland and Liechtenstein 's commitments to a rules -based multilateral trading 
system are commendable. They have contributed effectively to WTO TBT, S PS and TRIPS 
measures, Trade Facilitation Agreement, expansion of the Informa tion Technology Agreement 
(ITA II), and both countries have not been involved in any dispute settlement cases as a 
complainant or respondent during the period of review. Further, we noted Liechtenstein became 
the first WTO Member to ratify the revised plurilateral Agreement on Government Procurement in 
2013, while Switzerland also intends to ratify the revised GPA. We appreciate the initiations taken 
by Switzerland and Liechtenstei n to eliminate the agriculture export subsidies.   
4.345.   It is also interesting to note that the high degree o f predictability in 
Switzerland -Liechtenstein 's import tariff structure. In 2016, the average applied MFN tariff was 
9.0% compared with a simple average  of 9.2% in 2012. MFN tariffs on agricultural products 
averaged 30.8% in 2016, while the average for non -agricultural products was 2.3%. The Energy 
Strategy 2050 with increased emphasized on renewable energy is another notable directive of the 
Swiss Govern ment.  
4.346.   Let me briefly reflect on the bilateral trade relations between two countries. The total t rade 
turnover which stood at US$229.2 m illion in 2015 between tw o countries has increased to 
US$376.6 m illion in 2016 registering the significant increase by 6 4%. Switzerland is the 21st 
largest market destination for Sri Lankan products and the 25th largest supplier to Sri Lanka. 
Export of Electronic machinery and equipment and parts has become dominant and accounted for 
43% of Sri Lankan exports to Switzerland  in 2016 followed by Diamonds and Gems. Gold is the top 
most importing item to Sri Lanka from Switzerland over the recent years and which accounted for 
50% of total imports in 2016 followed by pharmaceuticals. Sri Lanka has been a beneficiary from 
the Swit zerland GSP scheme and it has facilitated Sri Lanka to strength in its market positions in 
Switzerland.   
4.347.   More than 26 Swiss companies including Nestle, Holcim & Baur 's are currently operating in 
Sri Lanka. The latest conglomerate to add to this directory is Hotel Movenpic k which was opened a 
week ago in the heart of the capital Colombo.  
4.348.   In the multilateral front, my delegation appreciates Switzerland 's contribution to the 
multilateral trading system and its active engagement in the negotiations in the WTO . We 
appreciate the dynamic role played by Ambassador Didier and his team in proactively engaging in 
ongoing activities of WTO is highly commendable.  
4.349.   In concluding, my delegation sincerely wishes Switzerland and Liechtenstein delegations a 
successful delib eration on their fifth joint Trade Policy Review.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  ALBANIA  
4.350.   The Switzerland economy has shown resilience against the headwinds from the economic 
problems in Europe and in the World which has continued to grow by 1.5% on average in 2013 -15, 
and with low unem ployment. This advanced and performed economy managed with fiscal 
prudence is also the outcome of good governance with a direct democracy system in the country 
which constitutes a model for many economies in the World. The same assessment goes to 
Liechtens tein economy which is based on a comparatively large industrial sector and the financial 
services industry as well as highly export -oriented.  
4.351.   This is why the 5th Swiss and Liechtenstein TPR has great interests among members to 
further learn from their tra de policy achievements, their engagements in the World trade affairs in 
particular their role in the ongoing negotiations in many issues that our Organization is facing with.   
4.352.   Albania echoes Switzerland and Liechtenstein foreign trade policy which seeks t o promote 
economic growth, increasing trade in goods and services and transfer of  technology in the world. 
Both G overnment delegations in WTO are actively engaged in multilateral negotiations, as well as 
in regional or plurilateral settings.  
4.353.   It is to ment ion here some of the WTO agreements a nd the active participation of 
Switzerland and Liechtenstein like:  
1. both formally they accepted the Trade Facilitation Agreement in September 2015;  
2. the tariff reductions resulting from the expansion Information Technol ogy Agreement 
(ITA II) are being implemented;  and more  
3. Liechtenstein became the first WTO Member to ratify the revised plurilateral Agreement on 
Government Procurement, while Switzerland intends to ratify this agreement in parallel with 
ongoing reforms aim ed at harmonizing its procurement regime at the federal and cantonal 
levels.  
4.354.   In any WTO negotiation, It is important the transparency principle as one of the basic 
negotiating principles. Switzerland and Liechtenstein, by submitting over 100 notifications  on a 
broad range of subjects, they are the best example respecting broadly this principle and, 
consequently, they are not involved in any dispute settlement cases as a complainant or 
respondent during the period under review.  
4.355.   Bilaterally, Albania and Swi tzerland have assessed the bilateral relations as priority and 
strategic importance, and both countries have established a long term partnership in particular in 
economic, trade and technical and financial assistance. For example, Swiss governmental 
assist ance by SDC and SECO program mes for 2014 -2017 reached SwF 88 million  which is the 
higher compared with oth er Western Balkans countries.  
4.356.   These contributions and assistance along with the encouragement of the business 
community in investment and trade are we lcome and very much appreciated by Albanian 
government which is a direct contribution to further economic and social development in the 
country as well as to the democratic stabilization process in the region.  
4.357.   With Liechtenstein, the relations started mor e than two decades ago with humanitarian 
aids, and there are potentials of development in the a rea of trade and investments.  
4.358.   Finally, we welcome and appreciate the commitments of Switzerland and Liechtenstein to 
the multilateral trading system because we t hink the strong engagement of the important trading 
players is essential to advance negotiations in multilateral trading System. In addition, Albania will 
continue to be engaged with the Switzerland and Liech tenstein delegations and other Members ' 
delegati ons to implement the post -Nairobi work program me, and to get tangible outcome s in 
upcoming MC11 in Argentina in December 2017.  
4.359.   As conclusion, Albania wishes to Switzerland and Liechtenstein a successful and productive 
TPR. WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  BENIN 
4.360.   The delegation of Benin ass ociates itself with the statement made by Cambodia on behalf 
of the Group of Least Developed Countries (LDCs).  
4.361.   The delegation of Benin commends the efforts made by Switzerland and Liechtenstein 
since their last reviews in 2013.  
4.362.   Being open, innovative, com petitive and export -oriented, the economies of Switzerland and 
Liechtenstein serve in many respects as models of success, supported by high -quality 
infrastructure based on innovation, research, development and cutting -edge technologies, 
high-level professi onal services and structured and diversified financial services.  
4.363.   They also have a great capacity for adaptation to market needs and requirements, which is 
no minor advantage, quite the contrary. The functional link established between the economy and 
the environment is a perfect illustration of this.  
4.364.   Switzerland is a major player in the defence of the multilateral trading system, as it has 
demonstrated through its constructive contributions to the work of the multilateral trade 
negotiations aimed at secur ing additional results in the context of the Doha Trade Round. This is 
clearly shown by the ratification, in September 2016, of the WTO Trade Facilitation Agreement. In 
the context of the integration of least developed countries (LDCs) into the multilatera l trading 
system, it also makes valuable financial contributions to the budget of the Enhanced Integrated 
Framework (EIF), particularly the second phase thereof.  
4.365.   Particular mention should also be made of Swiss good practices in favour of trade 
promotion i n the Aid for Trade context and the building of SME production and export capacity.  
4.366.   The delegation of Benin thanks Switzerland for its invaluable assistance in the 
implementation of economic and social projects and programmes, specifically in the fields o f 
education, agricultural and rural development, promotion of food security, construction of social 
health and educational facilities, promotion of gender and Beninese culture, all of which are 
initiatives that help combat poverty and underpin attainment o f the Sustainable Development 
Goals for 2030.  
4.367.   With regard to production and export capacity -building for cotton and cotton products, the 
delegation of Benin would like to benefit from the support of Switzerland and Liechtenstein, as well 
as other bilatera l, regional and multilateral partners, for the implementation of the cultural 
roadmap programme, which affords important potential for developing value chains, creating jobs 
and combating poverty in the C -4 countries and beyond in the other least developed  and 
developing countries belonging to the same regions as the C -4 countries.  
4.368.   The delegation of Benin commends Liechtenstein on its continued policy of economic and 
trade openness, particularly in the industrial and services sectors.  
4.369.   Like Switzerland, Lie chtenstein is committed to the promotion and defence of the 
multilateral trading system.  
4.370.   The delegation of Benin congratulates Ambassadors Didier Chambovey and Peter Matt and 
their teams for their commitment to the multilateral trade negotiation efforts a nd for their 
constructive interactions with the other delegations, particularly those of the LDCs.  
4.371.   It thanks the WTO Secretariat and the Governments of Switzerland and Liechtenstein for 
the highly informative reports drawn up for the current Trade Policy Review.  
4.372.   It wishes Switzerland and Liechtenstein every success and a successful conclusion to their 
Trade Policy R eview.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  CAMBODIA  ON BEHALF  OF THE LDC GROUP  
4.373.   Switzerland and Liechtenstein are among the most integrated countries in the world, due 
both to th eir geographical location and to their economic policy choices.  
4.374.   We note that the integration of both countries into the world economy depends mainly on 
their trade with the EU. In the case of Switzerland, in particular, the level of exports to the EU, in 
2015, was 54% of total exports, while imports from the EU were representing 72% of total 
imports.  
4.375.   In the context of trade relations with the LDCs, th e report of the Secretariat indicates that 
the products imported by both countries from LDCs reached to 8.4 % of the total imports, in 2015. 
This rate has grown gradually since 2012, as the level of imports from LDCs was at 5.4% of the 
total imports.  
4.376.   The export level from the LDCs to both countries is positive and has been achieved 
although it is still relativel y low. We thank to the preferences scheme for LDCs. LDCs benefit from 
duty-free and quota -free market access for both countries, for 100% of agricultural and non -
agricultural products.  
4.377.   However, significant progress remains to be made in order for LDCs to b e able to export 
more to them, given that the rate of use of preferences granted was 51%, in 2015 , according to 
the Secretariat r eport. Thus, only half of the potential of GSP is realized.  
4.378.   The adoption of an electronic system for the registration of export ers (REX system) is one 
of recent initiatives taken by Switzerland and Liechtenstein, this can contribute to the export 
potential of LDCs. As part of the implementation of the Nairobi Decision on preferential rules of 
origin for LDCs, this system allows LD C exporters a self -certification of the origin in order to 
benefit from the Swiss GSP since 1 January 2017. On the other hand, the system is designed to 
significantly reduce the administrative burden of documentary and procedural requirements for 
LDCs.  
4.379.   This initiative appears to be modern and effective in facilitating access to the markets of 
Switzerland and Liechtenstein. However, we would like the Members to re -consider the mandatory 
requirement for the registration of exporters by electronic means, as ma ny LDCs have problems 
with the existence of electronic infrastructures, not to mention training requirements, which we 
hope can be provided for LDCs.  
4.380.   We welcome the adoption by the Federal Council of Switzerland, on 1 April 2016, of an 
Ordinance that termi nates export subsidies on products for LDCs, in accordance with the Nairobi 
Decision.  
4.381.   LDCs also welcome the fact that Switzerland has notified its preferential treatment for 
services and service suppliers of LDCs. We applaud Switzerland for introduced pref erences beyon d 
Article XVI measures as well.  We hope that Switzerland can provide further assistance in line with 
paragraph 1.5 of the Nairobi Decision to help implement the preferences provided in their 
notification so that LDC suppliers on the ground can  appreciate the good news about the 
notifications.  
4.382.   Switzerland is a privileged partner with whom LDCs wish to further develop trade relations. 
The LDCs appreciate Switzerland 's support for the initiative "Aid for Trade " and its commitment to 
phase II of th e EIF. We rely heavily on Switzerland and Liechtenstein to maintain their visions of 
enhancing trade capacities of developing countries, especially LDCs.  
4.383.   Finally, we would like to express our appreciation to Switzerland  and Liechtenstein, in 
particular to Ambassador Didier Chambovey and his delegation for their constructive engagement 
with our delegations here in Geneva. The LDCs wish both c ountries a successful of their Trade 
Policy R eview.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  KYRGYZ  REPUBLIC  
4.384.   Switzerland and Liechtenstein are the most stable  and resilient trading Members of the 
WTO. They continue to be strong supporters of a rules -based multilateral trading system, making 
successful steps on the WTO platform by accepting and acceding to numerous agreements on 
trade facilitation and promotion.  The two countries have worldwide trade network and vividly 
demonstrate the promotion of high quality and high -technology production all over the countries.  
4.385.   Switzerland continues to be one of the strategic partners of Kyrgyzstan both bilaterally and 
within  the framework of international organizations and institutions. The areas of cooperation differ 
from trade capacity building and fostering economic development of Kyrgyzstan to strengthening 
governmental institutions and promoting rule of law. It is worth mentioning that Switzerland is one 
of the main donors and assist partners of Kyrgyzstan and it participates in implementation of 
several national programmes and development strategies in my country, to which we are very 
much thankful to Swiss colleagues.  
4.386.   Switzerland remains one of the main export destinations of the Kyrgyz Republic as well. 
Trade between the two countries within recent years has risen to some extent from percentage 
point of view. While export from Kyrgyzstan to Switzerland mainly includes g olden and silver bars 
and coins, we do import from Switzerland chemical and pharmaceutical products, equipment and 
electric devices, watches and jewellery, paper and foodstuff.  
4.387.   The Intergovernmental Commission on Trade and Economic Cooperation existing bet ween 
Kyrgyzstan and Switzerland serves as another tool to deepen cooperation between the two 
countries. The primary purpose of establishing this Commission was precisely to establish and 
strengthen ties between business communities of both sides, developme nt of business links and 
fostering trade and investment cooperation between the two.  
4.388.   Meanwhile, the economic and trade relations between Kyrgyzstan and Liechtenstein 
unfortunately are not of satisfactory level so far and we do hope for further expansion an d 
deepening of those. We are particularly interested in attracting Liechtenstein 's direct investments 
to the economy of the Kyrgyz Republic and would also like resumption of project activities of the 
Liechtenstein Development Agency in Kyrgyzstan.  
4.389.   In concl usion, we would like to wish the delegations of Switzerland and Liechtenstein a 
very successful Trade Policy Review.  
OMAN  
4.390.   Oman enjoys excellent trade relations with Switzerland and Liechtenstein who are 
important trading partners of Oman. We expect our bil ateral trade to expand, given the Free Trade 
Agreement between GCC and EFTA states.  
4.391.   Switzerland is a highly developed and diverse economy. It has an open and liberal 
economy which has demonstrated resilience in the face of difficult global economic conditi ons, 
having secured an average growth rate of 1.5% during the period 2013 -2015. One indication of 
the success of the Swiss economy is its unemployment rate, which compares very favourably with 
other developed countries . According to the Secretariat r eport,  the unemployment rate is about 
4.5% while many other developed economies have rates ranging between 7% to 10%. This is a 
tribute to the policy decision makers and managers of the Swiss economy.  
4.392.   Switzerland 's foreign trade regime is very liberal for non -agricultural goods for which the 
applied tariffs are very low, 2.3% on average. However, in respect of agricultural products, the 
Swiss trade regime is quite restrictive, as it is highly protected by both tariffs and non -tariff 
measures. We are pleased to n ote that Switzerland and Liechtenstein are staunch supporters of 
the WTO and the multilateral trading system.  
4.393.   To conclude, the delegation of Oman wishes Switzerland and L iechtenstein a very 
successful Trade Policy R eview.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  PERU  
4.394.   Although Peru has not submi tted any questions for this review, we wish to take this 
opportunity to express our recognition of the strong and highly developed economies of 
Liechtenstein and Switzerland, which have been bolstered over the review period by their modern, 
competitive ent erprises, highly advanced educational systems and a high degree of economic 
integration at international level. In this connection, we are gratified to have links with both 
countries, particularly in the area of trade, where we have a Free Trade Agreement between Peru 
and the States of the European Free Trade Association, which has been in force since 1 July 2011, 
and this has been an important factor in maintaining the annual amount of our trade with both 
Members under review at above US$2,800 million duri ng the review period. Moreover, we have a 
bilateral agreement with Switzerland on agriculture, which has facilitated growth of our 
non-traditional agricultural exports and promoted our agro -industrial sector. We wish to continue 
exploring options for devel oping non -traditional exports to both Members under review today.  
4.395.   At the same time, we wish to underline the importance of the activities of both Members 
within the WTO and in the discussions and negotiations parallel to this Organization, where their 
contributions are always very specific and practical. Outside the WTO, we are partners in the 
initiative to conclude the Agreement on Trade in Services (TISA) for which we hope to see a 
favourable outcome in the near future.  
4.396.   Lastly , we wish Switzerland and Lie chtenstein success in their Fifth Trade Policy Review.  
RUSSIAN  FEDERATION  
4.397.   Russia enjoys a long tradition of friendly relations with Switzerland and Liechtenstein, 
which provide a good foundation for our trade and investment cooperation. Both countries are 
relatively small landlocked nations that have built robust and open economies and enjoy today one 
of the highest living standards in the world. We commend their staunch support for the open trade 
and the multilateral trading system and are glad to work clo sely within the WTO framework.  
4.398.   Switzerland and Liechtenstein are home to some of the most sophisticated technological 
enterprises in the world, including in the field of electronics, manufacturing of optical and medical 
equipment, pharmaceuticals and chemi cal industry products. These lines constitute a major part of 
Swiss exports to Russia. Our country, on the other hand, exports metals, chemical products, 
including high -tech chemicals, nuclear fuel, minerals and agriculture products, which reflects 
complem entary nature of our economies.  
4.399.   Bilateral trade between Russia and the Members under review grows steadily. In 2016, 
Russia 's export to these countries amounted to US$3 billion 109 million, while import reached 
US$1 billion 952 million. In total, our trade  turnover has expanded by 9.4% last year.  
4.400.   We are pleased to note mutually beneficial investment cooperation between Russian and 
Switzerland. In total, more than 600 companies with the participation of Swiss capital are 
registered in Russia. Among the most known of them are Nestlé, Asea Brown Bovery and 
Schindler.  
4.401.   In order to further expand our economic relations and promote practical contacts between 
our businesses, a Russia -Switzerland Joint Intergovernmental Commission on Trade and Economic 
Cooperation wa s established in 1998. We are pleased to note that recently, both parties pay higher 
attention to developing regional cooperation and ties between medium and small enterprises.  
4.402.   We have not submitted written questions to date. We are satisfied with our bila teral 
contacts that proved to be useful for clarifying certain aspects of our partners ' trade policy. We 
look forward to continue fruitful discussions on a bilateral level, as well as here in Geneva.  
4.403.   In conclusion, we would like to thank the delegations of  Switzerland and Liechtenstein, the 
Secretariat and, of course, our esteemed discussant, for their hard work in preparing this exercise. 
We wish both Members a successful Trade Policy Review.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  HONDURAS  
4.404.   The excellent relations between Switzerland and Hondur as have been consolidated over 
time by the signing of agreements in areas such as technical cooperation, promotion and 
protection of investment and visa waivers, among others.  
4.405.   Switzerland participates actively in cooperation for development and humanitaria n aid in 
Honduras through various projects of the Swiss Agency for Development and Cooperation (SDC), 
as is attested by the fact that Honduras has been one of the priority beneficiaries of cooperation 
since 1978, with support focused on three main areas: p romotion of micro, small and 
medium -sized enterprises (SMEs); governance and the national budget; and infrastructure and 
local public services, particularly drinking water and energy.  
4.406.   Another of the SDC's priorities is its support for regional initiatives,  and the budgetary 
provision for the period 2013 -2017 is expected to be approximately $210 million, which confirms 
the Swiss Government's commitment to cooperate with the countries of Central America in their 
efforts to reduce poverty and promote more equi table development.  
4.407.   In this connection we should like to highlight with gratitude the fact that the Zamorano 
University in Honduras, with support from the Swiss Agency for Development and Cooperation 
(SDC), has implemented the project on strengthening envir onmental management in adaptation to 
climate change and reducing disaster risk.  
4.408.   At the same time it is worth noting that SDC financing was used to establish the cocoa 
value chain in Honduras, and will also be used in the coming days to carry out the first national 
census of Honduran cocoa producers.  
4.409.   As is pointed out in the Secretariat Report, negotiations are still ongoing to secure 
Honduran participation in the Free Trade Agreement between Central America and EFTA. 
Nevertheless, in the context of bilatera l trade, Honduran exports of coffee, tea, maté, spices, 
cocoa and cocoa preparations, tobacco and manufactured tobacco substitutes amounted to about 
US$4 million, and imports from Switzerland of pharmaceuticals, machinery and mechanical 
appliances, nuclear  reactors and optical instruments and apparatus, among others, amounted to 
approximately US$25 million.  
4.410.   With regard to the reports submitted, we commend Switzerland and Liechtenstein for 
continuing to be strong supporters of a rules -based multilateral trad ing system; both countries 
benefit from good governance under a system of direct democracy, and fiscal prudence underpins 
the management of their economies.  
4.411.   In the case of Switzerland, we note that the average growth rate for the period 2013 -2015 
was 1.5%,  while unemployment remained relatively low; and Liechtenstein has a diversified 
economy which is based on a relatively large industrial sector which is highly competitive owing it 
to niche products and regulatory reforms in the financial services sector.  
4.412.    Since the first quarter of 2015, the Swiss economy has posted modest quarterly growth 
rates, routinely accompanied by current account surpluses, on top of which it continues to be one 
of the main destinations of foreign direct investment. One of the key e lements of the Swiss 
Government's current growth policy is to further open up the economy to imports, with the aim of 
stimulating price competition and spurring productivity.  
4.413.   We note the new Swiss reform legislation based on the "Energy 2050 Strategy", whi ch 
provides inter alia  for increased support for renewable energy and the progressive closure of 
nuclear power plants. We would also draw attention to the comprehensive reform of the 
Swiss  Food Safety Regime, the legislation on securities and capital marke ts and the pension 
reforms of 2020.  
4.414.   We note that Liechtenstein has continued to incorporate financial and anti -money 
laundering EU legislation via EEA mechanisms, and unilaterally in the case of the first legislative 
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  4.415.   Both countries have highly developed and elaborate intellectual property institutions, and 
in the case of Liechtenstein the data show an increase in filings by residents, particularly in the 
area of trademark and patent grants.  
4.416.   Lastly, Honduras congratul ates Switzerland and Liechtenstein on their significant efforts 
and progress made during the review period and wishes them every success in the presentation of 
their fifth Trade Policy Review.  
INDONESIA  
4.417.   We are pleased to have this opportunity to be directl y engaged with two of our EFTA 
partners. Together with Norway and Iceland, Indonesia has recently completed another round of 
negotiations towards a comprehensive economic partnership agreement with Switzerland and 
Liechtenstein.  
4.418.   Indonesia commends Switzerl and for constantly increasing its resilient and mitigation of 
negative effects to economic shocks. We praise the success of Switzerland in diversifying its 
economy; in having in place a flexible labour market and sound infrastructures; in increasing 
produc tivity of its inwards -oriented sectors; and in its deep integration in the global value chains.  
4.419.   In the four years between 2012 and 2016, bilateral trade flows between Indonesia and 
Switzerland demonstrated an upward trend of 48.27%, with trade value reachi ng a five -year high 
of US$2.9 billion in 2016. The increasing trend of both export and import components of our 
bilateral trade balance indicates an ample room for further improvement in our bilateral trade 
performance. And this shall be amongst the basis for Indonesia and Switzerland to work together 
in strengthening the multilateral trading system.  
4.420.   Indonesia commends Liechtenstein for its high degree of economic integration into the 
regional and global value chain, with an economic regime characterized by  fast administrative 
channels and a low -level of bureaucracy.  
4.421.   We are aware of the very limited domestic market in Liechtenstein. And hence, amongst 
the foreign economic policies of Liechtenstein, is to embark on joining a network of free trade 
agreements, including with Indonesia through the EFTA.  
4.422.   We are happy to see that Liechtenstein has benefitted from our bilateral trade relationship. 
Export to Indonesia from Liechtenstein has steadily been increasing. Between 2015 and 2016 
alone, our bilateral trade in creased by over 90% from the previous year. And between the same 
2015 and 2016, a very significant increase accrued in both exports of Indonesia into Liechtenstein, 
as well as exports from Liechtenstein to the Indonesian market.  
4.423.   Again, Indonesia sees this encouraging trend as a sign of untapped trade potential 
between our two countries. We look forward to further strengthening our trade cooperation, as we 
move forward to engaging with each other through the EFTA framework, as well as our multilateral 
cooper ation in strengthening the multilateral trading system.  
4.424.   I would like to conclude our remarks by expressing our profound appreciation to the 
delegations of Switzerland and Liechtenstein, for their hard work; and to Ambassador Didier 
Chambovey, the Permanent  Representative of Switzerland to the WTO, as well as to Ambassador 
Peter Matt of Liechtenstein, for their continued cooperation in advancing together the multilateral 
trading system. Indonesia wishes Switzerland and Liechtenstein every success in their fi fth joint 
Trade Policy Review.  
TAJIKISTAN  
4.425.   The t rade policy review reports, prepared by the Governments of these countries reveal 
the stability of their countries economy.  
4.426.   The Republic of Tajikistan and Switzerland have strong economic relationships.  
Switzerland takes one of the leading positions among the major political and economic partners of 
the Republic of Tajikistan.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.427.   The Republic of Tajikistan has the numbers of bilateral agreements with Switzerland in 
spheres such as promoting of the economy, inves tments, technical cooperation and others.  
4.428.   The Republic of Tajikistan wishes to Switzerland and Liechtenstein a successful Trade P olicy 
Review  and all of the best for the future.  
GEORGIA  
4.429.   At the outset, I would like to express appreciation to the Governments  of Switzerland and 
Liechtenstein and the Secretariat for their work in compiling the comprehensive report on trade 
policy developments over the course of the review period.  
4.430.   It is very important to note  that economic, political and diplomatic relations Geo rgia 
established with Switzerland and Liechtenstein date back from 1992 and have been evolving and 
consolidating ever since.  
4.431.   From the economic viewpoint, Georgia had been a beneficiary of Generalized System of 
Preferences (GSP) from Switzerland over the ye ars enabling Georgian exports enjoy lower import 
tariffs on certain type of commodities. It is being even more liberalized under the Free Trade 
Agreement signed last year between Georgia and EFTA States. We very much hope that the 
Agreement will enter into  force by the end of this year. Once the Agreement enters into force, it 
will become an instrument with the potential to further strengthen economic ties and to promote 
more inclusive trade among the parties.  
4.432.   Switzerland and Liechtenstein continue to be s trong supporters of a rules -based 
multilateral trading system and they always advocate further trade liberalization.  
4.433.   Switzerland has a well -diversified and advanced economy that easily withstands the 
turbulences deriving from the economic problems in the e uro zone. Since the last trade policy 
review in 2013, the Swiss economy has continued to grow (1.5% on average during the period 
2013-15). Bilateral trade between Georgia and Switzerland has been demonstrating significant 
growth over the past few years rea ching US$125 million in trade turnover in 2016 with 32% 
growth as compared to 2015. Georgia 's exports to Switzerland in 2016 also shows huge increase 
by 165% compared to previous year.  
4.434.   We commend Liechtenstein for its stable and predictable investment reg ime. Georgia and 
Liechtenstein have concluded the Double Taxation Agreement (DTA) which entered into force last 
year. We strongly believe that the entry into force of the FTA with EFTA States will give significant 
contribution towards more economic integra tion with these two states.  
4.435.   In conclusion, we would like to underline that Switzerland and Liechtenstein are valued 
partners of Georgia. We are convinced that the existing strong and amicable cooperation will be 
further strengthened.  
4.436.   We wish Switzerland a nd Liechtenstein a successful review.  
ISRAEL  
4.437.   At the outset, Israel would like to note that international trade continues to play a 
dominant role in these economies which have largely maintained an open trade regime. Since the 
last review in 2013, these two  WTO M embers have continued to pursue liberal trade and 
investment policies and have remained strong advocates of the multilateral trading system.  
4.438.   Switzerland is our main trading partner among the four countries which make up the 
European Free Trade Associ ation (EFTA), with bi lateral trade reaching over US$ 4.9 billion in 2016 
and Swiss capital stock in Israel amounti ng to US$ 1.2 billion by the same year. Switzerland 
became our 4th most important trading partner for imports and 8th for expor ts, amounting in 
2016 to (in US$  millions) US$3,651.2 and US$1,265 , respectively. Israel imports pharmaceutical 
products, machinery, stones and precious metals, and watches. Israeli exports into Switzerland 
are chiefly stones and precious metals, machinery and agricultural  products.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.439.   Switzerland and Liechtenstein have diversified developed economies which have shown the 
ability to quickly adapt and resist macroeconomic shocks. In spite of an adverse regional economic 
environment and a highly valued currency these economies have continued to grow while keeping 
protectionism at bay. Israel appreciates that Switzerland and Liechtenstein have bound 99% of 
their tariff lines and applied a low average tariff rate of 2.3% to non -agricultural goods, although 
some tariffs peaks conti nue to be applied, 19.7% of tariff lines are duty free. Notwithstanding, 
Switzerland and Israel share a similar approach in tackling the concern for high domestic prices 
through opening -up the economy to imports. For example, Switzerland suspended MFN tari ffs on 
60 tariff lines in textiles from 1 January 2016 for a period of four years. Israel would like to note 
that all tariffs are specific duties and customs duties are still calculated on the basis of gross 
weight, or quantity, instead of value and would encourage Switzerland to change its system to one 
based on value.  
4.440.   Israel is pleased to note that Switzerland and Liechtenstein do not have any anti -dumping, 
countervailing or safeguard measures in place. We commend these countries continuous efforts in 
containing the use of contingency measures. Further, we commend Switzerland 's active 
engagement in the anti -dumping negotiations which seek to clarify and improve the relevant rules. 
Israel also shares the objective of strengthening the Anti -dumping Agreement  to forestall its abuse 
for protectionist purposes. We shall continue to work constructively with Switzerland and other 
Members on improving the multilateral trade rules and to bring the negotiations to a fruitful 
conclusion.  
4.441.   Turning to trade in services, Israel shares a very similar ambition with Switzerland working 
towards a liberalised services regime underpinned by robust disciplines which provide transparency 
and predictability enabling the free exchange of services. We look forward to continue coopera ting 
closely towards achieving our common goal.  
4.442.   Switzerland and Liechtenstein have generally open investment regimes whereby most 
economic sectors are accessible to local and foreign investors. However, investment restrictions 
continue to apply in Switzerl and in certain areas and sectors. Liechtenstein 's investment 
restrictions mainly apply in public utilities as well as a number of financial services. Israel would 
encourage both Switzerland and Liechtenstein to review and further relax their existing 
restrictions. Although we did not submit written questions, we remain interested in Switzerland 's 
responses in relation to the adoption of the Automatic Exchange of Information and its implications 
for tax and banking practice.  
4.443.   Switzerland and Liechtenstein sha re similar views with Israel in rega rds multilateral trade 
liberaliz ation, and work alongside them on a large number of issues in the WTO and plurilaterally. 
We are parties to the Government Procurement Agreement and the Information Technology 
Agreement, w hile we are also participants in the negotiations of the EGA and TiSA. Regarding the 
DDA negotiations, we are part o f the G10 group on a griculture, and are also members of the 
Friends of Anti -Dumping Negotiations, and of the Really Good Friends in the Serv ices negotiations. 
We would like to take this opportunity to extend our sincere appreciation to the hard working 
teams in the Missions o f Switzerland and Liechtenstein  in particular we would like to thank 
Switzerland for its effective leadership in the Fri ends of the System and for its impeccable 
coordination of the G10 group on a griculture.  
4.444.   To conclude, allow me to wish these two c ountries every success in this Trade Policy 
Review.  
GHANA   
4.445.   On the bilateral front, Ghana 's relationship with Switzerland dates back to 1828 when 
Missionaries from Basel arrived in the ten Gold Coast, now Ghana. The Missionaries pioneered the 
establishment of many schools in the country.  
4.446.   With regards to trade, the volume of trade between Switzerland and Ghana hit s 
US$1.8  billion in  2014 and has been rising since.  
4.447.   For instance, in 2016, Switzerland imported over US$2 billion worth of gold from Ghana for 
conversion to finished products. This showed an overwhelming increase of about US$90  million WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  dollars over the 2015 figure of about U S$1 billion. In fact, Ghana is the third most important 
supplier of gold for Switzerland after Peru and Uzbekistan, respectively.  
4.448.   Ghana is Switzerland 's second most important trade partner in Sub -Saharan Africa. The 
most recent imports are led by refined p etroleum which represents 14.7% of the total imports of 
Ghana, crude petroleum  which  accounts for 3.68%.  
4.449.   Furthermore, Ghana remains a major supplier of cocoa and other cashew products as well 
as pineapple for Switzerland. Switzerland, in turn, exports fini shed products such as 
pharmaceutical products, tools, equipment and vehicles to Ghana.  
4.450.   My delegation requests Switzerland to, as part of measures to address the persistent trade 
imbalance, forge strategic partnerships with Ghanaian businesses to enable us add value to our 
raw cocoa and gold for better returns.  
4.451.   Ghana notes that Switzerland is a high -income country whose wealth is highly dependent 
on international trade, enjoying good governance  based on a system of direct democracy  with the 
right to a popula r vote on legislative reforms.  
4.452.   Ghana further notes that Liechtenstein is a small but wealthy country with a diversified 
economy, with a GDP of over SwF 5 billion which grew by 2.1% and 3% in 2013 and 2014, 
respectively. A distinctive feature of the economy  is the large number of inward cross -border 
commuters. 54% of Liechtenstein 's workforce in 2015 mainly lived in Switzerland and Austria.  
4.453.   It is interesting to note that Liechtenstein 's economic performance is tied, amongst others, 
to the exchange rate movem ents of the Swiss franc, as it shares a common currency with 
Switzerland.  
4.454.   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 movemen t 
of goods, services and persons.  
4.455.   My delegation again notes the fact that Switzerland remains among the top destinations for 
foreign direct investment with most economic sectors open to investment.  
4.456.   With regards to trade policy, one of the key objectives of  Switzerland 's foreign economic 
policy is to strengthen the country as a business location and support the positioning of 
Switzerland in the European and global market . 
4.457.   As a strong supporter of the WTO and an advocate for further liberalization of world tr ade, 
Switzerland has been an active participant in the Doha Development Agenda (DDA) negotiations, 
and engages constructively in initiatives within the multilateral trading system . 
4.458.   Ghana commends Switzerland and Liechtenstein for formally accepting the Tra de 
Facilitation Agreement (TFA) during the period under review. It also notes that tariff reductions 
resulting from the expansion of the Information Technology Agreement (ITA II) are being 
implemented on a provisional basis since the beginning of this year .  
4.459.   My delegation commends Switzerland for submitting well over 100 notifications on a broad 
range of subjects, notably on TBT and TRIPS matters.  
4.460.   Having acknowledged the very impressive macroeconomic performance as well as the 
impressive trade policy regime  of Switzerland and Liechtenstein, Ghana notes that the Swiss 
economy is challenged with the issue of competitiveness in the face of a strong Swiss franc, high 
prices prevailing in the economy, weak productivity, growth and open issues in Switzerland 's 
relationship with the EU.  
4.461.   Ghana further recommends that Switzerland addresses the issue of investment restrictions 
that are continually applied to activities under State monopoly, including certain transport 
services, some postal services and insurance servic es, as well as its agricultural sector for 
competition.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.462.   To conclude, m y delegation wishes Switzerland and Liechtenstein a successful joint Trade 
Policy Review.  
PAKISTAN  
4.463.   Switzerland has consistently been ranked as the most competitive economy by the World 
Economic Forum, for the last so many years. We continue to learn from our hosts but the Sw iss 
never cease to impress. In 2016, UNDP, Human Development Index (HDI) ranked Switzerland at 
2nd place out of 188 countries.  
4.464.   UNCTAD B2C e -commerce index ranked Swit zerland at 9th place out of 137 countries, a 
further up from its rank in 2014 at 14th place. Although Cross border Ecommerce doesn 't match 
the standards of excellence Swiss have in all other fields.  
4.465.   In 2016, WEF global gender gap report, Switzerland r anked  11th out of 144 countries, this 
is slightly lower compared to its ranking and score in 2015 where Switzerland was at  8th out of 
145 countries . 
4.466.   Between Switzerland and Pakistan there are numerous bilateral agreements in fields as 
wide-ranging investment pr otection, debt consolidation, aviation, and double taxation. We have in 
March this year signed a New Double Taxation agreement with Switzerland, which contains 
provisions of information exchange in accordance with the int ernational standard and an 
anti-abuse provision with m inimum standard set by the BEPS (Base Erosion and Profit Shifting) 
initiative of G20/OECD.  
4.467.   Switzerland has traditionally run a trade surplus with Pakistan and has been one of the 
country 's biggest direct investors for many years. In 2016 , bilateral trade between the two 
countries went up from US$436 m illion to US$491.9 m illion, an increase of 12.8%. Both Swiss 
imports from and exports to Pakistan increased respectively by +14 and +12.4%. Switzerland 
ranks fifth in terms of foreign direct investment (FDI) in Pakistan and a very reliable trading 
partner.  
4.468.   The Swiss -based multinational companies have invested 1.2 billion in Pakistan, in various 
sectors including food processing, pharmaceuticals, chemicals, machinery, engineering and 
banking. These firms employ around 12,000 people. Nestle has the world 's largest m ilk processing 
plant in Pakistan.  
4.469.   Pakistan has signed a Joint Declaration of Cooperation (JDC) with EFTA to increase bilateral 
trade with EFTA States, in addition to promoting investm ent and economic c ooperation. We look 
forward to working with EFTA to achieve these goals.  
4.470.   Pakistan is highly appreciative of the fact that the trade regimes of Switzerland and 
Liechtenstein remain generally open. Switzerland and Liechtenstein continue to  be strong 
supporters of a rules -based multilateral trading system.  
4.471.   The Swiss economy  is a well -diversified and advanced economy. Despite a difficult 
environment, the economy continued to grow by 1.5% on average in 2013 -15, accompanied by 
relatively low u nemployment. Switzerland has a large services sector but also possesses a strong, 
high-tech and export - oriented manufacturing sector.  
4.472.   Pakistan is very impressed by the fact that Switzerland remains among the top 
destinations for foreign direct investment . Most economic sectors are open to investment.  
4.473.   Despite being a small country, Liechtenstein too has a diversified economy, which is based 
on a comparatively large industrial sector and the financial services industry. As a consequence of 
the very small d omestic market, Liechtenstein 's economy is highly export -oriented. We are 
impressed that it has retained its competitiveness owing to niche products, and regulatory reforms 
in the financial services sector.  
4.474.   In Liechtenstein, most sectors are open to nation al and foreign investment (subject to 
residency requirements), except for restrictions on certain sensitive sectors.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  4.475.   Pakistan appreciates the fact that, Switzerland and Liechtenstein were one of the first to 
ratify the Trade Facilitation Agreement in 2015.   
4.476.   Pakistan is pleased to note that  the Swiss Government has initiated domestic procedures to 
eliminate relevant a griculture e xport subsidies by January 2019  in line with commitments made at 
the WTO Ministerial Conference in Nairobi.  
4.477.   Switzerland -Liechtenst ein's average applied MFN tariff was reduced to 9.0% in 2016, 
compared with a simple average of 9.2% in 2012. MFN ta riffs on agricultural products averaged 
30.8% in 2 016, while the average for non -agricultural products was 2.3%.  
4.478.   We appreciate that Switzer land and Liechtenstei n do not have any specific anti dumping, 
countervailing or safeguard legislation, and have never applied such measures.  
4.479.   Switzerland has been liberalizing its services sector, albeit, with certain reservations. This 
general liberalizatio n is very welcome, and Pakistan feels that there is a lot to be learnt from their 
experience in services sectors. These sectors include energy sector, air transport services, postal 
services, professional services, with specific focus on architectural and construction services. 
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. Social services, such as 
retirement homes, are open to foreig n investment.  
4.480.   With regard to banking services, Pakistan welcomes a key regulatory development, which 
is 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 th e AEOI. In addition, 
Anti-money -laundering legislation has also been reinforced.  
4.481.   We view Switzerland as the most committed and faithf ul Friend of the system, a v ery keen 
supporter of the multilateral system. In these trying times, the Swiss role as the coordinator of the 
Friends of the System b ecomes all the more important. W e grea tly appreciate the role of 
H.E. Didier Chambovey, and his team at the Swiss Mission in assisting the other Missions generally 
and in always trying to move towards convergence in different trade related issues. We immensely 
value our partnership w ith Swiss Mission on issues of e -commerce and MSMES.  
4.482.   In the end, we wish Switzerland and Licht enstein a very successful and fruitful TPR.  
URUGUAY  
4.483.   Uruguay has traditionally maintained friendly and constructive relations with Switzerland 
and Liechtenstein in the various spheres covered by our bilateral relations, not only policy, the 
economy and trad e, but also cooperation and culture.  
4.484.   Since the last trade policy review in 2013, the political and trade relationship between 
Uruguay, Switzerland and Liechtenstein has been characterized by its stability.  
4.485.   As regards the bilateral relationship with Switzer land, the bilateral cooperation dimension 
between our countries is characterized by the continuous consolidation of various relevant 
agreements, including in particular the Agreement on Reciprocal Promotion and Protection of 
Investments and the Convention for the Avoidance of Double Taxation with Respect to Taxes on 
Income and Capital.  
4.486.   In addition, in 2016 Uruguay and Switzerland signed an agreement on exchanging financial 
information in the context of the Convention on Mutual Assistance in Tax Matters and the 
Multilateral Competent Authority Agreement.  
4.487.   In the area of trade, the main export products from our country in 2015 and 2016 were 
unwrought gold or gold in semi -manufactured forms or in powder; meat of bovine animals, fresh 
or chilled; and meat of bovi ne animals, frozen; as well as soya.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.488.   However, 2016 saw a decline in Uruguayan exports to Switzerland, due to the fluctuation 
of international prices for our country's two main export products: gold and meat.  
4.489.   In 2016, the main imports from Switzerland were pharmaceuticals, optical instruments and 
apparatus, and organic chemicals.  
4.490.   Uruguay wishes to commend the work done by Switzerland and Liechtenstein to 
strengthen the multilateral trading system, and emphasizes the important role of the Swiss Mission 
to the  WTO in leading the Friends of the System Group.  
4.491.   Lastly, we would like to reaffirm our country's interest in joining forces in the quest for a 
positive outcome at MC11 and to protect the multilateral trading system based on predictable, 
transparent and bal anced rules.  
4.492.   Uruguay wishes Switzerland and Liecht enstein every success in their f ifth Trade Policy 
Review.  
CHAD  
4.493.   Chad highly appreciates the commitment of the World Trade Organization (WTO) to 
supporting Switzerland's efforts to create favourable condition s for the development of the least 
developed countries on the basis of respect for multilateral trade rules. We welcome Switzerland's 
adoption of the registered exporter system relating to preferential rules of origin for LDCs, which is 
expected to substan tially reduce the administrative burden relating to documentary and procedural 
requirements.  
4.494.   In this connection, it should be noted that the level of LDC exports to Switzerland is 
encouraging and has been made possible by this preferential system for LDCs.  Unquestionably, the 
LDCs benefit from duty -free and quota -free access to the Swiss and Liechtenstein markets for both 
agricultural and non -agricultural products.  
4.495.   However, much remains to be done if those of our countries that are more vulnerable are 
to be  able to increase their exports to Switzerland and Liechtenstein, given that the preference 
utilization rate was 51% in 2015, according to the Secretariat Report.  
4.496.   Chad commends the approach followed by Switzerland with regard to the multilateral trade 
rules, its determination to satisfy notification requirements and its commitment to comply with its 
WTO obligations. In this regard, Chad welcomes Switzerland's adoption of an ordinance eliminating 
export subsidies on products intended for the LDCs in accordan ce with the Nairobi Ministerial 
Decision.  
4.497.   We also welcome Switzerland's notification of preferential treatment for service suppliers 
and services of LDCs, adding preferences over and above the Article 16 measures. Switzerland 
possesses a large services sec tor as well as a strong, high -tech and export -oriented industrial 
fabric which is of particular interest to our countries.  
4.498.   Like the other LDCs, Chad considers Switzerland an important partner with which it wishes 
to further develop its trade relations. Cha d's private sector has for some years been developing 
worthwhile partnerships with Swiss economic operators, particularly in the field of textiles. Chad 
appreciates Switzerland's support to the "Aid for Trade" initiative and its commitment to the 
Enhanced Integrated Framework (EIF). We consider it useful to maintain and strengthen the 
approach developed by Switzerland and Liechtenstein with regard to enhancing the trade capacity 
of low -income countries in order to address their macroeconomic vulnerability.  
4.499.   Chad welcomes the input of Switzerland and Liechtenstein in favour of the LDCs and 
developing countries in the context of improving the multilateral trade climate, in particular 
through their varied and consistent support for human and institutional capaci ty building in those 
countries. The long -term development of the LDCs cannot be abstracted from the evolution of new 
issues currently addressed in the WTO. We reiterate the need for an inclusive and constructive 
dialogue to deal with the various difficulti es observed. Under the Chadian Government's WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  Vision  2030, the development of the commodities and services sector remains a national priority, 
and we count on your customary close collaboration to achieve that goal.  
4.500.   With its obvious economic prosperity, stro ng institutions based on good governance, direct 
democracy and the principle of budgetary prudence, Switzerland is an example to be followed. 
According to an African proverb, "For a child to grow, a whole village is needed". Chad welcomes 
the considerable efforts made by Switzerland and Liechtenstein to create a significant and inclusive 
dynamic for trade and the multilateral trading system. My delegation encourages the two countries 
to continue their efforts and wishes Switzerland and Liechtenstein every s uccess in their Trade 
Policy R eview.  
JORDAN  
4.501.   We would like to thank the Heads of the delegations for the statements made, which 
highlight the continuous positive economic developments and the resilience of both economies in 
spite of the economic challenges.  It is a proof of productive trade policies that are based on the 
rules of the multilateral trading system, which provides a solid base for a predictable, fair and 
comprehensive trade for all.  
4.502.   Out of this inclusive vision, Jordan along with Switzerland and  Lichtenstein worked on 
expanding and deepening relations within the multilateral trading system, and beyond, to a free 
trade area agreement between Jordan and EFTA States, which was signed in 2001 and entered 
into force in 2002.  
4.503.   This FTA provides a compr ehensive trade framework that plays an important role in 
increasing bilateral trade and reinforcing global economic integration for all partners.  Exchanged 
trade between Jordan and EFTA Countries reached in 2016 (327) million USD, where Switzerland is 
a major trading partner. We believe that many potentials are still ahead of us; on bilateral and 
multilateral levels.  
4.504.   Jordan appreciates its longstanding relations with both countries and looks always forward 
to advancing cooperation in different areas of mut ual interest.  
4.505.   Finally, we wish Switzerland and Lichtenstein a successful Trade Policy Review.  
KAZAKHSTAN  
4.506.   Resilience of Switzerland 's economy against the backdrop of a volatile global economy of 
recent years is a remarkable achievement and in continuing th is trend I would like to wish every 
success in the implementation of the Growth Agenda 2016 -2019.  
4.507.   Switzerland 's valuable assistance in capacity -building efforts in developing countries has 
been also most notable through participation in various initiative s. 
4.508.   Kazakhstan enjoys a solid relationship with Switzerland. Since 1999 , bilateral meetings 
have been held regularly within the framework of a Joint Economic Commission.  
4.509.   Switzerland is Kazakhstan 's 5th major trade partner. In 2016 , turnover amounted to 
US$2.8 billion. Kazakhstan exports to Switzerland energy products, precious stones and metals. 
Swiss imports to Kazakhstan are represented by the precision instruments and optics, watches, 
chemical products and pharmaceuticals.  
4.510.   Switzerland is the third large st investor in the economy of Kazakhstan. From 2005 to 
1 September 2015 , the gross inflow of direct Swiss investments in Kazakhstan amounted to 
US$14.5 billion. The gross outflow of Kazakh investments in Switzerland amounted to 
US$802.8  million. I believe there is still a huge potential for further strengthening trade and 
investment relations between our countries.  
4.511.   In order to enhance the effectiveness of linkages between the business communities of the 
two countries the Kazakh -Swiss Business Council (a coo rdinating and Advisory body) wa s 
established in October 2012. About 40 Swiss companies are operating in Kazakhstan.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  4.512.   Switzerland is an important strategic partner for Kazakhstan and I believe that there is a 
bright future for further enhancement of trade an d economic cooperation.  
4.513.   Bilateral relation between Kazakhstan and Liechtenstein are also developing in a 
constructive way and there is significant potential for their expansion.  
4.514.   I also would like to use this opportunity to thank the Government of Switzerla nd and 
Liechtenstein for their full cooperation and support which has been provided to the Government of 
Kazakhstan in its WTO accession negotiations.  
4.515.   In closing I would like to wish the d elegation s of Switzerland and Liechtenstein a very 
successful Trade  Policy Review.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  5  REPLIES BY THE REPRE SENTATIVE S OF SWITZERLAND AND LICH TENSTEIN  AND 
ADDITIONAL COMMENTS  
MRS.  MARIE -GABRIELLE  INEICHEN -FLEISCH  (SWITZERLAND ) 
5.1.  First of all, I should like on behalf of the Swiss delegation to thank all the Members who have 
participated in and contributed to this trade policy review. At Tuesday's meeting, no fewer than 53 
Members took the floor. The vast majority of speakers pointed to many positive features of 
Switzerland's trade policy. Our commitment to the multilateral tradin g system was also widely 
complimented. I was particularly warmed by the expressions of gratitude emphasizing the 
constructive role Switzerland plays in the WTO. These encouragements are an incentive for us to 
persevere in this direction. I also appreciated  the recognition given to our support for the least 
developed countries.  
5.2.  Frequent mention was made of Switzerland's good governance and the resilience, diversity 
and competitiveness of its economy. Members commended Switzerland's generally open trade 
regim e, which promotes its integration in the world economy. Our policy of facilitating imports in a 
climate of uncertainty was also highlighted. The efforts Switzerland has deployed in regard to 
export competition were acknowledged.  
5.3.  In this connection, yesterd ay the Government approved the package of reforms for the 
elimination of export contributions for processed agricultural products in line with the Nairobi 
Decision. The reform provides for accompanying measures such as facilitation of processing trade 
and additional direct payments to milk and bread grain producers. This reform, along with the 
ministerial decision on export competition and the modification of Switzerland's schedule of 
commitments, are now submitted to parliament for approval. These measures  should come into 
effect on 1 January 2019.  
5.4.  Allow me now to turn to some of the key points raised by the Members and the discussant, 
Ambassador David Walker.  
5.5.  Mr Chairperson, I will structure my statement in line with the structure of the Secretariat 
report . 
Economic environment and trade and investment regime  
5.6.  Regarding the sections on the economic environment and our trade and investment regime, 
several Members referred to the Growth Policy 2016 -2019. To answer an oral question asked by 
the EU, implementati on of this policy is currently under way. The Government will perform a first 
evaluation early next year. However, some milestones have already been successfully laid, notably 
the report on "framework conditions for the digital economy" and the report on t he obstruction of 
parallel imports. Several of the questions pertaining to our growth policy relate to import 
facilitation measures. Switzerland is in the process of evaluating the economic potential of 
independently relaxing import restrictions. It is giv ing consideration, for example, to unilaterally 
eliminating tariffs on industrial products, reducing specific tariffs in the agri -food sector, raising the 
de minimis  tariff threshold and simplifying customs procedures.  
5.7.  The economic impact of technical barr iers to trade is also under study. With regard to the 
exceptions to the Cassis de Dijon principle that apply to imports from the EU, work is ongoing with 
the aim of formulating specific proposals by end -2017.  
5.8.  As regards the institutional framework for our trade policy, several Members raised the 
question of our participation in various free trade agreements. Our priority continues to be 
strengthening of the multilateral trading system. Integration into the world economy requires 
membership in the WTO and de velopment of its regulatory framework. Nonetheless, signing 
regional trade agreements is a complementary means of opening up to the global market.  
5.9.  With respect to investment, several Members asked whether Switzerland intends to further 
liberalize access to  sectors under monopoly or controlled by government -owned corporations. In 
general, Switzerland is very open to foreign investment, and restrictions continue to apply only to 
a few sectors. This is the case for certain passenger -transport companies, some s pecific postal WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  services, and mandatory fire and natural -disaster insurance. These State monopolies are clearly 
defined by the law. Most are limited restrictions that do not cover a sector in its entirety. With 
regard to the ethanol market, Switzerland will  be lifting the monopoly on imports, and the market 
will be liberalized as from the beginning of 2018.  
Trade policy instruments  
5.10.   With your permission, Mr Chairperson, I will now respond to some questions regarding our 
trade policy instruments. First of all,  I should like to address the question of Switzerland's 
maintenance of specific duties for all its tariff lines. Switzerland does not intend to modify its tariff 
regime which is simple, predictable and transparent. Its everyday application poses no problem s. I 
would also like to point out that Article II of the GATT does not prescribe the type of customs 
duties which WTO Members must apply.  
5.11.   As in the last review, quite a few Members referred to the so -called "Cassis de Dijon" 
principle – a measure adopted i ndependently by Switzerland. In line with this principle, products 
that meet EU technical requirements can be freely put on the Swiss market without prior checks. 
Exceptions to this principle are founded on grounds of public interest, such as protecting he alth, 
human life, animals and the environment. For foodstuffs, application of the Cassis de Dijon 
principle is subject to special regulation for reasons of consumer protection. In duly substantiated 
cases, the Government can order an exception. The Cassis de Dijon principle applies solely to 
products from the European Union and the European Economic Area. However, it also benefits 
non-European producers insofar as they meet the EU's technical requirements.  
5.12.   In the area of non -tariff measures, on Tuesday the United States asked us orally about 
notification of the regulations on requirements of origin for the labelling of foods. The said 
regulations were notified to the WTO on 3 September 2015 within the TBT Committee. They form 
part of the new food -safety regi me. The definitive measures under this new regime will shortly be 
notified to the TBT and SPS committees.  
5.13.   We received a number of questions on the levies for guarantee fund contributions. In order 
to secure the country's supply of vitally important goods a nd services during severe shortages, 
Switzerland constitutes reserve stocks of certain goods, such as basic foodstuffs, animal feed, 
fertilizers, fuel and therapeutic products. The management costs of these stocks are financed 
through levies on the product ion and/or import of these goods. These levies are called "guarantee 
fund contributions". Switzerland has realized that these contributions may sometimes result in 
exceeding the WTO bound tariffs, and will work on implementing a solution that is in full 
compliance with its international obligations within the WTO.  
5.14.   Ratification of the revised Agreement on Government Procurement has been mentioned 
several times. Following Switzerland's signature of that Agreement on 30 March 2012, the federal 
and cantonal au thorities decided to support its transposition into national legislation through a 
process of parallel harmonization of federal and cantonal laws. At the federal level, both houses of 
parliament should be deliberating in the course of 2017. At the cantonal  level, the internal 
procedures for approval of the revised cantonal laws are also in progress. Switzerland will be in a 
position to deposit its instrument of ratification of the revised Agreement with the WTO once all 
the federal and cantonal procedures h ave been completed.  
5.15.   In the realm of intellectual property, a number of questions were asked about the new 
"Swissness" legislation that came into force on 1 January 2017. The new criteria for protecting 
brands serve to define a Swiss product or service more  precisely. This ensures fair competition and 
prevents deceptive practices in regard to indications of origin for goods or services. The 
"Swissness" legislation is compliant with WTO law, the Paris Convention for the Protection of 
Industrial Property and o ther prevailing international legal obligations. It ensures legal security, 
transparent trading and equitable commercial practices.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  Policies by sector  
Agriculture  
 
5.16.   We received numerous questions regarding agriculture. I will only respond here to those 
involving policy issues. Switzerland has provided detailed written responses to the more technical 
questions.  
5.17.   Since the beginning of the 1990s, Swiss agricultural policy has undergone several stages of 
development with the aim of strengthening the role of t he market. The constant evolution of the 
economy and of national and international market conditions calls for ongoing analysis of the 
policies in force and adjustments to those policies where necessary. The Government wishes to 
enhance the competitiveness  of Swiss agriculture on national and international markets, improve 
the management of natural resources and help develop entrepreneurship in farms.  
5.18.   Several speakers asked what steps we have in mind in order to pursue liberalization of our 
agriculture. Agr icultural policy relies on a long -term strategy that takes into account non -trade 
factors such as the environment, the particular topography of Switzerland's terrain and the 
distribution of the Swiss population on its territory. At the multilateral level, Switzerland has 
invariably engaged in reform processes in line with Article 20 of the WTO Agreement on 
Agriculture. In this context, we are ready to pursue our efforts, within the framework of broader 
packages of negotiations and consistent with the goals of the United Nations 2030 Agenda. 
Liberalization of our agriculture is also given effect through the implementation of the 
Nairobi  Decision on export competition referred to earlier in my statement.  
5.19.   Many Members have criticized the high level of tariffs f or agricultural products. It should be 
remembered that most trade is carried out within tariff quotas benefiting from low rates. Thus, the 
fact of observing a high tariff average does not in itself provide an economically accurate reflection 
of market open ness.  
5.20.   Several Members have made reference to our quota management system, often deemed to 
be complex. Tariff quotas are a tool guaranteeing access to the Swiss market at lower tariffs. 
Switzerland increases its tariff quotas regularly and substantially in  order to meet domestic 
demand. Furthermore, in some cases tariff quota management is no longer applied and products 
subject to quotas can be imported in unlimited quantities. The use of this tool is consistent with 
WTO rules.  
Services  
 
5.21.   Apart from the ag ricultural sector, we have also received a number of questions on services. 
China raised orally on Tuesday the question of liberalization of the telecom sector. In fact, the 
telecommunication sector in Switzerland has been open since 1998. According to the  "OECD Digital 
Economy Outlook 2015", fixed -broadband subscription prices in Switzerland are at a competitive 
level internationally. Even if the company Swisscom occupies a strong position both in the fixed 
network and on the mobile markets, the pressure o f competition is having a continuous impact on 
market trends, innovation, quality of services and prices.  
5.22.   I trust that, with these explanations, I have been able to address the bulk of the questions 
and comments which have been raised. I am grateful for t he opportunity given to us to put 
forward our points of view.  
5.23.   In closing, Mr Chairperson, I should like to touch upon some aspects of the review process 
itself. At the outset, we elected to operate under the regular timeline. This means that, despite our 
efforts, our written answers were not distributed until Tuesday morning. In fact, the value of the 
first day's discussions would have been enhanced if our answers had been distributed two weeks 
before the meeting. This is an observation which we shall keep  in mind for our next review, when 
we will probably elect to employ the alternative timeline.  
5.24.   Mr Chairperson, dear colleagues, I thank you for your attention.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  H.E.  AMBASSADOR  PETER  MATT  (LIECHTENSTEIN)  
5.25.   Let me start by thanking all delegations, our discus sant and you, Mr. Chairman, for the 
interest shown in this Trade Policy Review and for all questions and comments received. Let me 
start with comments.  
5.26.   Liechtenstein has in the past years gone throug h substantial reforms in the fi nancial sector 
and is part icipating actively in th e area of taxation and tax coop eration. We appreciate that these 
efforts have not gone unnoticed but have also been highlighted by various delegations in the 
current framework of this trade policy review. Liechtenstein will certainl y continue this path and 
further widen its AEOI -network. Exchange of information is , however , only one aspect or side of 
the medal. The other one is directly trade and investment related and therefore important to 
mention here, too: Double Taxation Agreeme nts (DTAs). Besides free trade agreement and 
information exchange, comprehensive trade relations nowadays should also include rules 
governing the topic of double taxation. Accordingly, Liechtenstein is constantly extending its 
DTA-network as an important e lement of the framework conditions offered to economic operat ors 
both local and foreign.  
5.27.   Another aspect commended widely upon in ap preciation was the clear and un diluted support 
of the multilateral trading system by my country. Let me assure you that Liech tenstein and myself  
will continue this path w ithout hesitation. Let me at this stage also extend my own and my 
country 's deep appreciation to my Swiss colleagues both here in Geneva and i n Bern for their 
strong and outstanding commitment to this O rganizati on.  
5.28.   Allow me to highlight some questions we received. More detailed answers to the received 
questions have already been distributed on Tuesday  and an other batch will follow shortly.  
5.29.   Our close link with Switzerland is in particular based on the Customs Uni on Treaty dating 
from 1923. This treaty is not only the basis for this joint review but also for the simplified 
Liechtenstein ans wer to most of the questions re ceived that are not exclusively addressed to 
Switzerland or Liechtenstein . What remains for me h ere is to  thank State Secretary 
Ineichen -Fleisch and her team for the exhaus tive answers given to this large number of issues 
raised. The answers given by Switzerland are equally valid for Liechtenstein.  
5.30.   When it comes to questions specifically addressed to  Liechtenstein, I would like to 
emphasize at the outset that our answers to a number of issues have to be seen in light of 
Liechtenstein 's very specific situation to which I already referred on Tuesday. For instance, when it 
comes to possible further liber alization of the generally open, stable and predictable investment 
regime, Liechtenstein has to manage a difficult compromise between our interests for new 
investments on the one hand and what is politically acceptable and physically possible on the 
other.  The financial service sector , for example , has basically been fully liberal ized for banks, 
insurances and funds with merely prudential requirements in place. But even these requirements 
are not nationality or strictly residency based  as, where a presence is considered necessary, 
residing in one of the 4 countries in the region often suffices.  
5.31.   Another specific feature of Liechtenstein which  is related to a number of ques tions received 
and which I already mentioned in my introductory statement on Tuesday  is that Liechtenstein is 
part of two markets, the Swiss and the Euro pean one. Accordingly, many aspects are regulated or 
influenced by EU/EEA -legislation. The governance of EEA -rules can cover whole sectors like 
financial, telecom or energy but also specific fields like IPR. More concrete and with ref erence to 
questions received, such EEA -acts include various banking Regula tions such as Capital 
Requirement Directive (CRDIV); the Bank Recovery and Resoluti on Directive; Solvency II, 
anti-money -laundering/terrori st-financing directives; Securities Regulations, the so called telecom 
and energy packages or Directive 2014/26/EU on collective management of copyrights and related 
rights and multi -territorial licensing of rights in musical works for online use in the in ternet - to 
name just a few. The proper implementation of these EU/EEA -acts is monitored by the EFTA 
Surveillance Authority and can be challenged with a complaint to the EFTA Court of Justice. I think 
it is fair to say that Liech tenstein enjoys a good trac k-record when it c omes to living up to the 
obliga tions stemming from its EEA -membership.  WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  5.32.   Another question referred to the control a nd management of state -owned en terpris es. In 
Liechtenstein, the state -owned enterprises (on national or com munal level) are nearly exclusively 
supplying basi c services in the classical sec tors, i.e. water, energy, health, elderly care or 
telecommunication. In addition, the state owns institutions in the cultural sectors (e.g. mus eums) 
and for finan cial market surveillance.  
5.33.   The few enterprises that are participating in the market have already years ago been 
restructured into capital companies in which the S tate holds shares to a varying degree 
(51% -100%). For these compa nies, a strict corporate govern ance regime is in place whic h 
includes a fr amework law, a corporate govern ance code, semi -annual controlling and reporting to 
the aud it committee of the Parliament.  
5.34.   In spite of these particularities, Liechtenstein shares a high number of policy communalities 
with Switzerland, includi ng for the sector which attracted most comments  in this review , namely 
agriculture. Liechtenstein fully shares the Swiss policy of the multifunctional role of agriculture 
which goes beyond the mere calculation of the latter 's contribution to GDP. About two  thirds of the 
territory of Liechten stein is hilly and mountainous areas. The general maintenance of its rural 
character is one of the overarching goals of Liechtenstein 's internal development policy. 
Agricultural use of the mountainous are as ensures their  sustainable de velopment which in turn is 
also an important factor for Liechtenstein 's posi tioning as an attractive tourism destination. Such 
use and maintenance of these mountainous areas is, however, costly. Green b ox measures are 
therefore nec essary and  enjoy widespread public support in Liechtenstein despite their high price.  
5.35.   This brings me to the end of my statement. Le t me express again our apprecia tion for the 
comments and questions of deleg ations which provided very valu able input  to this Trade Pol icy 
Review. I thank you.  
DISCUSSANT  
5.36.   I was struck by the large number of Members who participated in this Review, both through 
written questions and those who took the floor to comment on the trade and investment policies of 
Switzerland and Liechtenstein.  
5.37.   Notable was the extent to which Members commended Switzerland for its commitment to 
the multilateral trading syste m as demonstrated through:  
 Hosting the WTO headquarters here in Geneva;  
 Hosting the "Mini-Ministerial " meeting of Trade Ministers in conjunctio n with the annual 
World Economic Forum in Davos;  and 
 Switzerland 's role as Chair of the "Friends of the System " grouping of WTO Members.  
5.38.   There was also widespread praise for the generally open nature of the Switzerland and 
Liechtenstein trade regimes, and for their role in seeking to advance WTO norms and processes, 
including across a broad range of issues in preparation for MC11 in Buenos Aires.  
5.39.   That said, Members co mmented critically on some long standing aspects of the regimes 
including the structure of t ariffs, the high levels of protection accorded to agriculture, and the lack 
of contestability in some services sectors.  
5.40.   Members posed a broad range of questions seeking clarifications and asking about prospects 
for reform both on these issues and in other areas of interest. Switzerland and Liechtenstein have 
sought to provide clear answers which Members will no doubt study carefully.  
5.41.   It was useful to hear the further clarifications provided in the statements today, including in 
respect of the implementation  of the Nairobi decision on agriculture export subsidies. I noticed 
particularly the answer given to a question posed by Ecuador about contribution fees to guarantee 
funds for coffee and rice. Sw itzerland responds clearly that  given the possibility the con tribution 
fees can exceed the relevant tariff bindings, a solution to that issue is to be identified by this 
September and then subsequently implemented and this was reiterated again this morning.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  5.42.   That I think is an exemplar of how the Trade Policy Review process can function.  
5.43.   It has been a pleasure to be the d iscussant at this fifth joint Trade Policy Review of 
Switzerland and Liechtenstein.  
5.44.   I congratulate both Switzerland and Liechtenstein on a successful Review and, going 
forward, wish them every success  economically and in their policy evolution ahead of the next 
Review process.  Thank you.  
UNITED  STATES  
5.45.   The United States would like to sincerely thank the delegations of Switzerland and 
Liechtenstein for all of their very hard work and constructive partici pation in this Trade Policy 
Review and especially under the  somewhat disruptive circumstances this morning. Thank you very 
much for all of the work. We have listened with a great deal of interest to the statements this 
morning and very much appreciated the  reflection that clearly has gone into considering comments 
that were made on the first day of the TPR and the responses that were brought to the meeting 
this morning.  
5.46.   We would also just like to really express appreciation for the very excellent collaborat ion 
between the two Governments for this review. These joint reviews are still a bit unusual for us but 
we saw in this review a very excellent cooperation between the Swiss and Liechtenstein authorities 
both in preparation for and during the course of the meeting and that created a lot of efficiencies 
for us.  
5.47.   We found particular value through  this process in gaining a more complete understanding of 
Liechtenstein and its economy. I mentioned this the other evening to Ambassador Matt, we have 
learned a lot t hrough your presentation on Tuesday about your very impressive country. So thanks 
for that opportunity.  
5.48.   We will just touch very briefly on several issues that we raised on Tuesday and in our 
advance written questions. Again just to highlight some of our pa rticular concerns. And we do 
continue to have serious concerns with very high import duties and domestic support that shield 
Swiss agriculture from competition and limit export opportunities from all agricultural exporters. 
We appreciated that there were many expressions of concern along this line from a number of 
Members on Tuesday. We note that while Switzerland is harmonizing many agricultural policies 
with those of the European Union, Switzerland 's domestic support per farm still far exceeds that of 
the EU. Certain Swiss  SPS and TBT barriers also continue to be of concern. As we emphasized on 
Tuesday, we encourage Switzerland to adopt science -based SPS measures and to operate its tariff 
rate quotas in accordance with WTO rules.  
5.49.   We than k both delegations for their answers to our previously submitted written questions. 
We recognize the work that goes into answering Members ' advance written questions. Not all of 
our agriculture -related questions have yet been answered but we appreciate the responses that we 
have received to date . 
5.50.   The United States has submitted follow -up questions on several topics and I will briefly 
outline those for the information of Members of the TPRB. We have submitted follow -up questions 
related to notifying draft measures to the SPS a nd TBT Committees, whether Switzerland intends 
to conduct risk assessments in order to establish import tolerances for substances that do not 
have MRLs established in the EU. We posed questions on how Swiss authorities define the terms 
"reasonable suspicio n" and "hazardous " in the context of approving the commercialization and 
cultivation of biotechnology crops. We are interested in Switzerland 's explanation of the science 
behind the moratorium on approvals for the cultivation of biotechnology crops. We pos ed 
questions regarding what measures Switzerland is taking to lower its high out -of-quota rates and 
why Switzerland believes that the additional burden of a domestic support purchase requirement is 
beneficial to small enterprises. We look forward to receiv ing answers  to these follow -up questions 
in due course.  
5.51.   Again we thank both Governments for their attention to our questions. We thank 
Ambassador Walker for his very thoughtful and concise perspectives as discussant and we always WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  recognize our colleagues in the Secretariat for their really  excellent work in connection with these 
reviews. We also appreciate d this TPR as an opportunity to welcome our new Chair, Ambassador 
Gonzalez. We look forward to a continued fruitful relationship with both of the subjects  of this 
review and we wish you all a good rest.  
EUROPEAN  UNION  
5.52.   The EU would like to thank the delegations of Switzerland and Liechtenstein for the replies 
to our advance written questions and the statements on Tuesday and this morning. These have 
provide d many useful insights into the context and objectives of trade policies of Switzerland and 
Liechtenstein.  
5.53.   In this context, we take note of the announcement made this morning about the formal 
proposal being submitted to the Parliament concerning the abolit ion of agricultural export subsidies 
which the EU will study with great interest.  
5.54.   As already mentioned by others and the discussant, the EU also notes the considerable 
attention of WTO Members shown to this joint Trade Policy Review. This demonstrates the strong 
interest of Members in the trade policies of Switzerland and Liechtenstein and the importance of 
Switzerland as an important trading partner to many WTO Members, including, of course, the EU 
as the closest trading partner to both.  
5.55.   We also heard on n umerous occasions and fully share the  sentiment of the wide recognition 
and appreciation of the commitment that both countries show to the multilateral trading system as 
embodied  in the WTO, including to the transparency pillar of the Trade Policy Review M echanism 
and also the crucial role of both countries to this Organization.  
5.56.   We would like to take the opportunity of the second day by submitting a few follow -up 
questions. They are mostly for clarification purposes on IPR issues and on procurement. We look  
forward to the replies in due course.  
5.57.   In conclusion, the EU would like to thank the delegations of Switzerland and Liechtenstein 
for their constructive participation in this important exercise and we look forward for the next TPR 
under the alternative tim eline as announced. Thank you very much.  WT/TPR/M/355 • Switzerland and Liechtenstein  
 
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This joint Trade Policy Review was a very useful opportunity for Members to deepen their 
understanding of the economic, trade, and investment policies of Switzerland and Liecht enstein. 
I would like to thank the two delegations led by the State Secretary for Economic Affairs 
Mrs. Marie -Gabrielle Ineichen -Fleisch, for Switzerland, and Ambassador Peter Matt, for 
Liechtenstein, our discussant Ambassador David Walker, and the more th an 50 delegations that 
took the floor for their valuable contributions.  
6.2.  Members were generally impressed by the resilience demonstrated by the economies of 
Switzerland and Liechtenstein during the period under review in spite of strong economic 
headwinds. Both countries are trading nations and, as importers and exporters, depend on foreign 
markets for their economic prosperity. Unemployment has remained low, and the economies had 
continued to expand, although the pace had been moderated by several factors, particularly the 
appreciation of the Swiss franc and low productivity growth. The economic resilience was 
underpinned by a skilled workforce and flexible labour market; hi -tech production; an emphasis on 
research, development and innovation; good governanc e; and fiscal prudence.  
6.3.  I sensed a universal appreciation among the Membership for the consistent and staunch 
support of the rules -based multilateral trading system by both Switzerland and Liechtenstein. Their 
constructive contributions, provided by multi ple formal and informal approaches including "Friends 
of the System ", aim to ensure that the WTO remains relevant and strong in the fight against 
protectionism. Switzerland and Liechtenstein have consistently advocated further trade 
liberalization, and hav e taken active part in numerous initiatives to expand trade, including efforts 
to promote the participation of micro, small, and medium sized enterprises in global value chains. 
In addition, Switzerland and Liechtenstein rely on an extensive network of tra de agreements, 
mostly through the European Free Trade Association (EFTA), to complement their membership of 
the WTO.  
6.4.  Overall stability characterized the trade and investment regimes of Switzerland and 
Liechtenstein for the period under review. As a conseq uence, the positive elements of their 
regimes continued to prevail, but conversely the concerns were mostly a repeat of what was said 
at the last Review in 2013.  
6.5.  On the positive side, the trade and investment regimes were generally open and liberal for 
goods as well as for services. Tariffs on non -agricultural goods were as a general rule zero or very 
low on an MFN basis. Some Members highlighted that Switzerland and Liechtenstein had never 
resorted to trade defensive measures to remedy perceived imbalances , nor were they involved in 
dispute settlement cases inside or outside the WTO.  
6.6.  On the other side, among the general concerns, Members noted:  
 That the tariff regime is unique in its reliance on specific duties based on gross weight, 
and several delegation s reiterated their recommendation that a more transparent 
ad valorem  regime should be considered.  
 The agriculture sector remains a weak point both in terms of high domestic support and 
border protection in the form of high tariffs; tariff peaks for meat, h orticultural goods, 
and dairy; seasonal duties; target import prices; and complex tariff quota systems that 
included allocations contingent upon local purchases. Although the Agricultural Policy 
2014-17 involved a rearrangement and fine -tuning of direct pa yments, support remains 
high, and some Members called for further market -oriented reforms.  
 Outside of agriculture, it was noted that state monopolies restricted investments in 
certain rail transport, postal and insurance services, and that competition coul d be 
enhanced in sectors such as telecommunications and construction services.  
6.7.  Several other aspects of the trade regime also attracted the attention of Members. The 
evolution of these policies and measures will be of continued interest to them, notably th e reform 
of the Swiss food safety regime, implementation of the "Cassis de Dijon " principle to dismantle 
technical barriers to trade, and the levying of fees relating to reserve stocks of certain 
commodities. Members took note that Switzerland will look fo r a solution where the contribution 
fees to the guarantee funds exceed the tariff bindings, such as for rice and coffee. The recent WT/TPR/M/355 • Switzerland  and Liechtenstein  
 
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  introduction of "Swissness " legislation to enhance the Swiss brand at home and abroad, and the 
protection of copyright in a digital environment in Switzerland also attracted substantial interest.  
6.8.  Within the overall picture of stability, Members welcomed the introduction of some measures 
that will further liberalize trade. The prompt ratification of the Trade Facilitation Agree ment and 
the establishment of trade facilitation committees by Switzerland and Liechtenstein were 
appreciated. Tariff reductions stemming from the expanded Information Technology Agreement 
(ITA II) had been applied since 1 January 2017, and Switzerland had  unilaterally suspended the 
MFN tariffs on certain textile items from 1 January 2016 for a period of four years.  
6.9.  Furthermore, Liechtenstein had been the first WTO Member to ratify the revised plurilateral 
Agreement on Government Procurement in 2013 but, as  several Members noted, we are still 
looking forward to its formal acceptance by Switzerland. Members are also waiting for the 
completion of domestic procedures to eliminate export subsidies for processed agricultural 
products  in accordance with the Nairob i Ministerial Decision , and we welcome the statement made 
by the State Secretary that the G overnment has approved yesterday the necessary measures to 
eliminate export subsidies by 1 January 2019, ahead of the Nairobi schedule.  
6.10.   Switzerland was complimented  for its emphasis on sustainable development, including 
renewable energy. It recently introduced a ban on imports stemming from illegal, unreported, and 
unregulated fishing. Several Members pointed to the automatic exchange of information in tax 
matters, a nd the reinforcement of anti -money laundering legislation as positive steps for the 
financial sectors of Switzerland and Liechtenstein. With regard to LDCs, beyond the longstanding 
commitment to the Enhanced Integrated Framework and the "Aid for Trade " initiative, positive 
developments included the termination in April 2016 of export subsidies on products for LDCs and 
participation in the Registered Exporter System (REX) to facilitate self -certification of origin.  
6.11.   Members noted with interest the Growth Agen da of the Swiss G overnment for 2016 to 2019, 
in particular its focus on enabling the digital economy and the streamlining of government 
regulations. The role of autonomous import liberalization as a means to enhance competitiveness 
and labour productivity in the domestic market should not be underestimated, particularly given 
the relatively low rates of growth in productivity. Looking forward to further such initiatives, many 
Members underscored that the present high agricultural tariffs and some technical barriers to trade 
provided scope for substantial trade liberalization and would contribute to a significant reduction in 
the "high-price island " effect experienced by Switzerland as well as Liechtenstein.  
6.12.   Finally, I would like to thank all those that part icipated in our discussion and Switzerland 
and Liechtenstein for their statements and the high quality of their replies to nearly 500 questions. 
I look forward to getting the answers to any outstanding questions within the next month, and 
I hope that Switz erland and Liechtenstein can use this process to further improve their already 
generally open trade and investment regimes.  
__________