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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. The services sector remains the backbone of th e economies of Switzerland and Liechtenstein 
in terms of output and employment.  Both countries are net exporters of services.  The manufacturing 
sector in the Customs Union is highly diversifie d and export-oriented, while the contribution of 
agriculture to GDP remains marginal. 
2. The agriculture sector is still subject to subs tantial state intervention in Switzerland and 
Liechtenstein.  Agriculture (ISIC, Revision 2 defini tion) remains highly protected, with an average 
tariff of 22.7%.  Domestic support to agricultura l production has remained high by international 
comparison.  The customs union has continued the gradual move away from price support to direct 
payments to farmers.  Switzerland remains an impor tant user of export subsidies, mainly on dairy 
products.  Tariff quotas are in place for 26 product categories;  the quotas have been filled for certain products.  Indicative prices are used for a number of  agricultural products, mainly fodder.  A price 
compensation scheme is in place to compensate expor ters of processed agricultural goods for the high 
costs of locally produced inputs.  Liechtenste in maintains its own direct payments system. 
3. The manufacturing sector accounts for nearly 98% of merchandise exports from Switzerland 
and almost 100% from Liechtenstein.  Apart from incentives schemes mostly oriented towards the 
processing of agricultural products, Switzerland and Liechtenstein do not have policies specific to 
manufacturing.  Tariffs are low on most manufactured goods (ISIC definition), averaging 6.9%;  nonetheless, they remain high on most  food and certain textile products. 
4. Switzerland adopted a new energy policy in 2007 with a view to securing energy supply and 
reducing CO
2 emissions.  A new electricity law, al so adopted in 2007, provides for partial 
liberalization of the Swiss electricity market as of 2009, and for full liberalization as of 2014.  The law also established an electricity commission to regulate the electricity market.  Liechtenstein's 
electricity market has b een liberalized since 2005. 
5. Financial services, in particular private banki ng and asset management, are of key importance 
to employment and GDP generation in both countries.  In Switzerland, a unified financial market 
supervisory authority is being crea ted and is to be operational as of January 2009.  Switzerland also 
revised the legal framework for its insurance subsec tor in 2006.  In Liechten stein, total assets deposited 
in banks have grown strongly since 2004.  Liechtens tein established the integrated Financial Market 
Authority in 2005 and has taken steps to strengthe n rules for the prevention of money laundering, 
including through the establishment of the Financial Intelligence Unit in 2001.  Liechtenstein has been 
on the OECD's List of Uncooperative Tax Havens since 1998.   
6. An amendment to Switzerland's Telecommunicati ons Law in 2007 is aimed at unbundling the 
local loop.  The former monopolist for telecom servic es, Swisscom, has retained a large market share 
and has remained majority state owned.  In Li echtenstein, a new Communication Act has eliminated 
the licence system.  Postal services in Switzerland have been further liberalized, by the reduction of 
the threshold for services reserved for SwissPost to  100 g.  Bilateral air transport liberalization 
through the agreement with the EC, provides for non-discrimination between Swiss and EC/EFTA air 
transport companies.  Switzerland's land transport policy continues to be guided by the objective of 
transfering transiting merchandise freight from road to rail transport.  Tourism has remained an 
important generator of foreign exchange  in both Switzerland and Liechtenstein. 
7. The conclusion and implementation of Switzerland 's bilateral agreement with the EC on the 
free movement of persons has significantly libera lized labour movement independently of services Switzerland and Liechtenstein WT/TPR/S/208 
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trade liberalization rules;  priority can no longer be given to residents ove r EC/EFTA nationals.  For 
third country nationals, the system of quotas with a fixed number of work pe rmits and labour market 
need is still in place.  Legislation on the admi ssion of auditors entered into force in 2007;  it 
established an oversight authority for auditing services and represented a move from self-regulation to 
a system of accreditation. 
(2) AGRICULTURE AND RELATED ACTIVITIES  
(i) Overview and main features 
8. Around two thirds of the Swiss land area are su itable for agriculture, including forestry.  
About half of the total area suitable for agricultu re is cultivated land, of which mountainous areas 
account for slightly over one third;  about three fifths  of the total are appropriate for animal grazing.   
9. Liechtenstein had 133 farms in 2005, down from 199 in 2000.  Mostly smaller farms were 
given up.  About 5,400 hectares (including alps) are used for agricultural production.  Milk production 
is the most important agricultural activity, followed by vegetable farming, forestry, and wine-grapes. 
10. The contribution of agriculture to employment and GDP remains marginal in both 
Switzerland and Liechtenstein (Chapter I(1)).  In 20 06, there were 62,800 farms in Switzerland, with 
an average size of 17 hectares.  Total annual agricultural production has fluctuated between 
Sw F 9 billion and Sw F 10 billion since 2001 (Table IV .1).  In value terms, production of milk is the 
most important, followed by cattle and pig breeding.   The major crops include cereals (wheat, maize, 
barley, and oats), potatoes, oilseeds, sugar beet, and fruit (apples, pears, plums, and grapes).  Switzerland's self-sufficiency ratios have remained stable for most products, but have declined for 
cereals and potatoes (Table IV.2).  Ratios are high est for dairy products and lowest for oils and 
vegetables. 
Table IV.1  
Swiss agricultural production, 2001-07 
(Sw F million) 
Branch 2001 2002 2003 2004 2005 2006 2007a 
Total vegetable production 4,303.9 4,533.3 4,218.2 4,765.9 4,465.7 4,132.7 4,490.6 
Cereals 487.3 504.8 410.6 492.8 448.3 439.8 415.7 
Potatoes 191.8 187.7 183.1 170.6 177.1 171.4 170.9 
Sugar beet 136.7 164.5 144.4 168.5 154.7 130.0 166.6 
Other vegetables 473.5 504. 0 547.4 538.3 530.2 522.0 528.8 
Fruits 552.3 556.5 526.4 598.7 496.4 511.6 307.2 
Wine 430.6 418.0 385.9 426.5 413.2 431.6 386.9 
Plants and flowers 807.9 851.7 819.3 776.6 739.5 736.3 752.8 
Total animal production 5,069.9 5,005.8 4,995.7 5,195.3 4,948.8 4,911.6 4907.2 
Milk 2,613.8 2,546.4 2,420.7 2,114.2 2,336.2 2,306.6 2.233.8 
Bovine 924.2 951.7 1,047.9 1,211.3 1,177.4 1,218.8 1.225.4 
Porcine 1,082.0 1,033.3 1,058.3 1,088.1 975.3 959.9 1.002.2 
Poultry 179.9 193.5 198.8 218.0 205.5 181.6 206.2 
Eggs 180.5 188.7 183.1 177.5 179.5 176.4 173.8 
Total agricultural production 9,373.8 9,539.1 9,213.9 9,961.2 9,414.5 9,044.3 9,397.8 
a Provisional. 
Source: Federal Office for Agriculture (various issues), Rapport agricole .  Viewed at:  http://www.blw.admin.ch/ 
 dokumentation/00018/00103/index.html?lang=fr. 
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Table IV.2 
Self-sufficiency in basic food productsa, 1991, 1995, and 2001-05 
(Per cent) 
Product 1991 1995 2001 2002 2003 2004 2005 
In digestible calories        
Cereals for bread 126 134 102 82 78 92 87 
Cereals for fodder 62 75 69 67 49 75 72 
Total cereals 65 68 64 59 46 63 63 
Edible potatoes 107 99 93 94 87 95 91 
Sugar 44 42 47 61 44 50 50 
Fat and vegetable oils 24 20 20 20 19 22 22 
Fruits 60 71 71 76 64 73 59 
Vegetables 53 55 53 56 51 55 51 
Milk for consumption 97 97 97 97 98 99 98 
Butter 91 93 88 98 97 97 93 
Cheese 137 129 122 113 113 114 117 
Milk and dairy products 110 110 107 107 109 108 108 
Veal 99 97 98 98 98 98 97 
Beef 94 92 96 89 91 88 86 
Pig-meat 99 98 96 95 93 93 94 
Sheep 44 46 39 41 42 45 44 
Poultry 46 51 40 43 45 48 49 
Total meat 80 79 71 70 70 69 70 
Eggs and products thereof 44 45 47 42 47 46 44 
In digestible energy        
Vegetable products 42 42 40 45 39 45 43 
Animal products, gross 97 96 94 94 95 94 94 
Total products, gross 62 61 58 61 56 60 59 
Total products, net 58 57 53 56 51 55 54 
In value        
Total of food products 72 71 62 63 62 64 63 
a Self-sufficiency is defined as the ratio of domestic production to the sum of production plus imports less exports. 
Source:  Federal Office for Agriculture (various issues), Rapport agricole .  Viewed at:  http://www.blw.admin.ch/
 dokumentation/00018/00103/index.html?lang=fr. 
11. Switzerland and Liechtenstein are net importers of  agricultural and food products.  In 2007, 
the customs union imported agricultural goods (ISIC, Revision 2, Major Division 1) worth US$3,050 million, while exports were US$330 million.   Using the WTO definition of agricultural 
goods, imports amounted to US$9,200 million, and exports to US$5,993 million. While imports cover 
the whole range of agricultural products, expor ts comprise mainly processed agricultural goods, 
mostly dairy products and canned fruit and vegetables. 
(ii) Policy objectives and instruments 
12. Switzerland formulates agricultural policy for the customs union, although Liechtenstein has 
a separate support system for its agriculture sector .  The Federal Law on agriculture of 1998 is the 
main legal policy instrument for the sector.  Compar ed with the limited valu e-added generated by the 
sector, public expenditure in agriculture is consid erable, amounting to 6.5% of the federal budget in 
2007. 
13. Agricultural Policy 2007 (AP 2007), adopted by Parliament in 2003, has been Switzerland's 
main policy initiative in the sector during the review period, leading to changes in the Federal Law on 
agriculture and various ordinances.  Under AP 2007, Switzerland has continued the gradual move 
away from price support to direct payments.  AP 2007 also provided new investment assistance Switzerland and Liechtenstein WT/TPR/S/208 
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measures and financial assistance for redeployment away from agriculture.  Specific policy measures 
introduced under AP 2007 have focussed mainly on dom estic support and include:  the transition to a 
more flexible milk market through, inter alia , the gradual abolition of production quotas 
(section (iii));  conversion programmes to address  overproduction in the wine and horticultural 
subsectors;  a gradual switch to auctioning in th e allocation of meat quotas (Chapter III(2)(iii));  and 
modified provisions for direct payments (e.g. an  increased emphasis on ecological direct payments). 
14. The successor to AP2007 is Agricultural Policy 2011 (AP 2011), which runs from 2008 to 
2011.  Its key element is the further conversion of product-specific price support into non-specific 
direct payments.  Price support is to be more  than halved, whereas export subsidies on basic 
agricultural products are to be phased out by January 2010 (July 2009 for potatoes and dairy 
products).  Import tariffs for feedingstuff are to be significantly reduced.  For the four-year period 
from  2008 to 2011, total support for agricu lture is set at Sw F 13,499 million. 
15. Agriculture (major division 1 of ISIC, Rev.2) h as remained the most tari ff-protected sector of 
the customs union, with a simple average tariff of 22.6%, down from 28.6% in 2004. Using the WTO 
definition, the simple average is 29.3%, down from 36. 2% in 2004.  Tariffs are particularly high in the 
meat and dairy subsectors, reaching 1,469% on live donkeys, mules, and hinnies (section (iii)).   
16. Switzerland's outlays for direct payments have  remained high, attaining Sw F 2,500 million in 
2006 (Table IV.3).  Growth of domestic support has slowed down since 2003.  According to Switzerland's last notification on domestic suppor t, the total aggregate measurement of support 
(AMS) was Sw F 3,044 million in 2004.
1  The ceiling for such support, under WTO commitments, is 
Sw F 4,257 million.  According to the authorities,  more recent data on domestic support are not 
available.  
Table IV.3 
Swiss outlays for direct payments, 2000-06 
(Sw F million, unless otherwise indicated) 
 2000 2001 2002 2003 2004 2005 2006 
Total  2,142.4 2,325.0 2,426.1 2,458.7 2,470.5 2,485.8 2,499.6 
General direct payments 1,803.7 1,929.1 1,994.8 1,999.1 1,993.9 1,999.6 2,007.2 
Area payments 1,186.8 1,303.9 1,316.2 1,318.0 1,317.8 1,319.6 1,319.1 
Holding of roughage eating animals 258.5 268.3 283.2 287.7 286.1 292.0 301.2 
Holding of livestock under difficult c onditions 251.6 250.3 289. 6 287.3 284.0 282.2 281.3 
Farming on steep slopes 96.7 96.6 95.8 95.6 95.3 94.8 94.2 
Wine cultivation on steep slopes  10.1 10.0 10.1 10. 5 10.7 11.1 11.4 
Ecological direct payments  361.3 412.7 452.4 476.6 494.7 506.9 518.2 
Ecological payment  279.0 329.9 359.4 381.3 398.1 409.3 420.2 
Ecological compensation  108.1 118.4 122.4 124.9 125.7 126.0 127.0 
Ecological Quality Ordinance  17.2 0.0 8.9 14.6 23.0 27.4 30.3 
Extensive cereals and rapeseed farming  33.4 32.5 31.9 31.3 30.8 31.5 31.1 
Organic farming  12.2 23.5 25.5 27.1 28.0 28.6 28.7 
Particularly animal-friendly holding of productive 
animals  108.1 155.5 170.7 183.4 190.7 195.8 203.2 
Summer pasturing  81.2 80.5 89.6 91.4 91.1 91.6 91.7 
Water protection  1.1 2.3 3.5 4.0 5.5 5.9 6.3 
Direct payments per farm ('000 Sw F) 35.7  38.9 41.8 42.7 43.3 44.1 44.9 
Note:  A comparison with the State account is not possible due to different definitions of year of payment.   
Source: Federal Office for Agriculture (various issues), Rapport agricole .  Viewed at:  
 http://www.blw.admin.ch/dokumentation/00018/00103/index. html?lang=fr;  and information provided by the 
 Swiss authorities.   
                                                      
1 WTO document G/AG/N/CHE/38, 28 February 2007. WT/TPR/S/208 Trade Policy Review 
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17. Under the Agricultural Imports Ordinance (RS 916.01), the complex system of "indicative" or 
"threshold" prices remains in place for agricultural products.  The system currently applies to animal 
feedingstuffs and seeds, although any agricultural pr oduct may be covered.  The system is aimed at 
ensuring stable domestic prices for these products by maintaining their duty-inclusive import prices 
within certain brackets (Chapter II(2)(v)).2  To this end, the c.i.f. import prices of the products are 
projected, and the customs duties, to bring the pr ojected import prices into line with the projected 
local prices of the goods, are estimated.  The Fe deral Department of Economy also determines a 
permissible bracket for fluctuations of the actual duty-inclusive import prices around the threshold or 
the indicative prices.  Customs duties on the products  are adjusted quarterly to keep duty-inclusive 
import prices within the price brackets.3  Threshold/indicative prices have generally been reduced 
during the period under review. 
18. Under the WTO Agreement on Agriculture, Sw itzerland and Liechtenstein have undertaken 
tariff quota commitments on 28 product categories.  In 2001, the three tariff quotas on wines were merged.  As a result, 26 product categories, coveri ng a total of 287 tariff lines, are under tariff quota 
(Table IV.4).
4  Some of the quotas are administered through a non-automatic licensing system with 
different allocation procedures (Table IV.5).  Quota -fill rates varied considerably in 2007, from zero 
(live swine) to full utilization (live sheep and goats, potatoes, frozen vegetables, bread grains).  Under 
the prise-en-charge  system, traders are required to purchase similar domestic products so that they are 
allowed to import.  When domestic supply is c onsidered insufficient, the quotas may be expanded 
unilaterally, resulting in fill ratios exceeding 100%.  However, the fill ratio may change on a yearly 
basis, notably in case of strong import pressure that would require the use of an alternate, more 
restrictive allocation procedure (e.g. auction), or the combination of prise en charge  with the latter.5 
19. Under Article 5 of the WTO Agreement on Agri culture, Switzerland and Liechtenstein have 
retained the right to invoke the special safeguard  clause for all imports subject to tariff quotas.  This 
measure allows the authorities to restrict imports  by means of additional duties when prices fall 
below, or imports exceed, given thresholds.  A safeguard duty has been levied only once by 
Switzerland and Liechtenstein (in 1999), on imports of pig meat and its by-products.  Since then, 
neither Switzerland nor Liechtenstein have  invoked special safeguard provisions.   
20. Furthermore, preferential tariff quotas (with lowe r in-quota tariffs in general) are in place 
under bilateral trade agreements w ith various countries (Chapter III(2)(iii));  these quotas are included 
in the MFN tariff quotas, i.e. there are no "reserved" quantities.   Switzerland also grants                 
non-reciprocal preferential market access (includi ng through preferential tariff quotas) to agricultural 
products from developing countries.6 
                                                      
2 The quarterly modification of applied MFN tariffs under the system reduces their predictability.  See 
WTO (2004) for more details on the negative impact of the threshold/indicative price system.   
3 Article 20 of RS 910.1.  The methods for estimating the import price and the permissible bracket for 
fluctuations are determined by the Federal Council.  Th e current bracket is Sw F 3 per 100 kg (unchanged since 
2000).  Current threshold prices are defined in Annex 2 to RS 916.01. 
4 The merger of three tariff quotas on wines has not yet been reflected in the WTO schedules of 
Switzerland and Liechtenstein. 
5 Under the Switzerland-Liechtenstein tariff-quota regime, the prise-en-charge  procedure is always 
combined with other procedures.   
6 RS 632.911. Switzerland and Liechtenstein WT/TPR/S/208 
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Table IV.4 
Tariff quotas, 2007 
Average tariff ratesa 2007 
(%) Fill ratio 
(%) TQ Product description 
In-quota Out-of-quotaQuota 
commitment  
2006  2007  
1 Live horses, asses, mules,  and hinnies (units) 0.7 52.2  3,322 76.8 87.5 
2 Live bovine animals (units) 2.4 130.9  20 6,700.0 4,750.0 
3 Live swine (units) 2.1 210.8 50 0.0 0.0 
4 Live sheep and goats (units) 1.2 40.2 187 295.7 135.3 
5 Animals for slaughter;  meat mainly produced on 
the basis of coarse fodder (tonnes) 16.1 140.7  22,500 165.1 168.5 
6 Animal for slaughter;  meat mainly produced on 
the basis of concentrated fodder (tonnes) 6.4 128.6  54,500 85.5 92.9 
7 Dairy products, in milk e quivalent (tonnes) 7.8 83.9  527,000 106.7 106.4 
8 Casein (tonnes) 0.4 1.6  697 87.7 5.7 
9 Birds' eggs, in shell (tonnes) 25.9 13.8  33,735 91.7 98.8 
10 Dried egg products (tonnes) 35.0 29.4  977 165.8 155.9 
11 Other egg products (tonnes) 26.3 81.8  6,866 115.7 101.2 
12 Bovine semen (doses) 1.0 25.3  20,000 2,207.5 1,923.0 
13 Cut flowers (tonnes) 1.9 43.5  4,590 165.5 75.8 
14 Seed and table potatoes;  potato products (tonnes) 10.4 58.7  22,250 266.2 211.9 
15 Fresh vegetables (tonnes) 4.0 110.7  166,076 129.5 42.0 
16 Frozen vegetables (tonnes) 31.0 84.8  4,500 132.5 122.3 
17 Fresh apples, pears, and quinces (tonnes) 2.3 77.5  15,810 105.1 25.8 
18 Fresh apricots, cherries, plums, and sloes 
(tonnes) 2.0 58.8  16,340 97.5 27.4 
19 Other fresh fruit (tonnes) 0.6 41.4  13,360 87.9 81.4 
20 Fruit for cider production (tonnes) 13.2 90.1  172 100.0 102.3 
21 Seed fruit products (tonnes) 17.6 61.4  244 251.2 244.7 
22 Grapes for pressing and grape juice (tonnes) 29.2 192.7  100,000 84.3 83.5 
23 White and red wine (hectolitres) 18.7 9.3  45,000 92.5 96.2 
24 Durum wheat, undenatured (tonnes) 2.9 131.0  110,000 69.8 89.3 
25 Bread cereals and other cereals for human 
consumption (tonnes) 22.7 69.7  70,000 40.1 136.7 
26 Coarse grains for human consumption (tonnes) 0.6 93.5 70,000 45.9 57.8 
a The averages are based on ad valorem  equivalents. 
Source : WTO notifications in document series G/AG/N/CHE/. 
Table IV.5 
Administration of tariff quota, 2007 
TQ Product Beneficiaries/eligibility 
requirements Allocation procedure Permit/licence 
1 Live horses, asses, mu les, etc. No limitation First-come-first-serveda Non-automatic licence 
2 Live bovines 
3 Live swine 
4 Live goats and sheep Breeders First-come-first-served, 
except live bovines 
(auction) Non-automatic licence 
5 Meat (beef, sheep, goat, and horse) Prise en chargeb; auction Non-automatic licence 
6 Other meat (pork and poultry) No limitation 
Prise en charge ;  auction Non-automatic licence 
7 Dairy products (milk e quivalent) Producers and 
manufacturers Prise en charge ;  first-
come-first served Non-automatic licence 
Table IV.5 (cont'd) WT/TPR/S/208 Trade Policy Review 
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TQ Product Beneficiaries/eligibility 
requirements Allocation procedure Permit/licence 
8 Casein Unlimited Automatic licence 
9 Eggs in shell First-come -first served No licence 
10 Dried egg products 
11 Other egg products No limitation 
Unlimited No licence 
12 Bovine semen Recognized insemination 
organizations First-come-first-served Non-automatic licence 
13 Cut flowers Past imports;  prise en 
charge  Non-automatic licence 
14 Potatoes and products Prise en charge ;  auction Non-automatic licence 
15 Vegetables Non-automatic licence 
16 Apples, pears, quinces, fresh Past importsc;  prise en 
charge ;  pro ratad 
Non-automatic licence 
17 Frozen vegetables Prise en charge  Non-automatic licence 
18 Apricots, cherries, etc. fresh Non-automatic licence 
19 Other fruit, fresh Past imports;  prise en 
charge ;  pro rata  Non-automatic licence 
20 Fruit for cider production Non-automatic licence 
21 Seed-fruit products  No limitation 
Auction 
Non-automatic licence 
22 Grapes for pressing and grape juice  Unlimited Permis général 
d'importation  (PGI) 
23 White and red wine Licensed wine traders First-come-first served Automatic licence 
24 Durum wheat, undenatured Un limited Automa tic licence 
25 Bread cereals and other cereals for 
human consumption First-come-first served Automatic licence 
26 Coarse grain Importers licensed by 
Reserve Suisse  
Unlimited Automatic licence 
a Except for horses other than for breeding (auction). 
b Prise en charge :  quota shares contingent upon purchases of local goods. 
c Past imports:  quota shares allocated as a function of comme rcial activity, purchases or imports during the preceding year. 
d Pro rata:  quota allocation depends on the quantities requested by individual importers. 
Source : WTO documents G/AG/N/CHE/13/A dd.9, 8 January 2008 and G/AG/N/ CHE/13/Add.10, 27 May 2008, and 
 information provided by the Swiss authorities. 
21. The Price Compensation Scheme is aimed at compensating for high domestic prices (of 
locally produced raw material s used as inputs by domestic agri-industries) resulting from, inter alia , 
agricultural policy measures.7  It consists of tariff protectio n for locally pro cessed agricultural 
products, and "export refunds".  The refunds are grante d to the extent of the price differences of the 
raw materials used in the production of processed ag ricultural goods for exports.  For mainly imported 
raw materials, the refunds correspond to the border charges paid.  For locally  produced raw materials 
(used as inputs in the production of export goods), the refunds correspond to the excess over world prices of identical products (i.e. the c.i.f. value of  the latter at the border of the customs union).   
22. Under the scheme, MFN import tariffs on the processed products consist of an industrial 
element and an agricultural element.  The agricultu ral element is designed to offset the difference 
between domestic and world prices. It is determined  on the basis of a standard recipe for each group 
of products within a tariff heading, and adjusted  periodically to price differences.  The industrial 
element is fixed by the Swiss Federal Council for th e customs territory.  If the sum of the agricultural 
and industrial element is higher than the tariff b ound at the WTO, the latter applies.  Only the 
agricultural element is levied on imports from count ries eligible for preferential tariff treatment under 
bilateral trade agreements covering processed agricu ltural products.  The products eligible for this 
type of tariff protection are:  yoghurt containing  fruit or cocoa (HS Chapter 4);  frozen sweet corn 
                                                     
 
7 RS 632.111.722. Switzerland and Liechtenstein WT/TPR/S/208 
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(HS Chapter 7);  sugar confectionery (HS Chapte r 17);  chocolate and other food preparations 
containing cocoa (HS Chapter 18);  pastry cooks' produc ts and preparations of cereals, flour, starch, or 
milk (HS Chapter 19);  and other food preparatio ns (HS Chapter 21).  The raw materials are those 
used as inputs in the production of these goods, excluding:  raw materials that cannot be produced in 
the customs territory, such as rice, coffee, and cocoa; mixtures of raw materials; raw materials filled 
in retail packing;  raw material s processed into unusual foodstuffs;  and imported mixtures not falling 
under HS Chapters 4 and 11. 
23. Switzerland and Liechtenstein have made  commitments under the WTO Agreement on 
Agriculture to reduce export subsidies on a number of products.8  Accordingly, outlays for export 
subsidies have fallen, and remained far below the agreed maximum levels for most product categories 
(Table IV.6).  Nevertheless, Switzerland remains an important user of export subsidies for dairy 
products and processed agricultural goods.  
Table IV.6 
Export subsidies, 2004-06 
(Sw F million) 
Actual outlays Commitment levels Products 
2004 2005 2006 2004 2005 2006 
Dairy products 44.41 36.28 31.7 284.0 284.0 284.0 
Cattle for breeding, and horse s 6.62 5.66 5.06 22.4 22.4 22.4 
Fruit 16.8 8.3 8.9 16.8 16.8 16.8 
Potatoes  0.7 1.2 1.2 2.3 2.3 2.3 
Processed products 114.9 90.0 90.0  114.9 114.9 114.9 
Source:   WTO documents G/AG/N/CHE/37, 4 Oct ober 2006 and G/AG/N/CHE/42, 25 March 2008.  
24. OECD estimates confirm a continued and gradua l reduction in the level of support since the 
last TPR of Switzerland and Liechtenstein.  However, production and trade distorting policies still account for more than half of that support.  Over the period, the support has become less     commodity-specific, as unspecific payments and pa yments to commodity groups were introduced or 
increased to compensate for the reduction of market  price support.  The level of support to producers 
declined from 71% in 2002-04 to 60% in 2005-07;  this remains 2.3 times higher than the average level of support in the OECD (Table IV.7).  The sh are of the most distortive forms of support (output 
and variable input-based support) fell to 75% in 20 05-07, compared with 88% in 1986-88;  the share 
of the least trade-distortive support (payments not linked to production) was 21.6%.  Producer and 
consumer prices at the farmgate are on average two times higher than world prices.  The implicit tax 
on consumers decreased further from 58% in 200 2-04 to 44% in 2005-07.   Support for general 
services has changed little and is curre ntly at around 6.7 % of total s upport to agriculture.  In 2005-07, 
total support to agriculture was 1.4 % of GDP, down from 1.8% in 2002-04 and about 36% of the 
level estimated for 1986-88.  The largest share of pr oducer support in value terms is directed to beef 
and veal, followed by pig meat and milk.
9 
25. Imports of agricultural products are subject to licensing requirements for the purpose of tariff 
quota management, as well as for health, sanitary, phytosanitary, or compulsory reserve stock 
(Chapter III(2)(vi)(b), (x)(c), and (vii)).  Rice, wheat , sugar, wheat, and oils are subject to compulsory 
                                                      
8 WTO Schedule LIX:  Switzerland and Liechtenstein, 15 April 1994. 
9 OECD database 1986-2006, "Producer and Consumer Support Estimates:  Switzerland".  Viewed at:   
http://www.oecd.org/document/59/0,3343,es_2825_494504_39551355_1_1_1_1,00.html. WT/TPR/S/208 Trade Policy Review 
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reserve stocks (Chapter III(2)(vii)).  Imported go ods produced in a manner prohibited in Switzerland, 
e.g. eggs from battery hens, must be  labelled as such (Chapter III(2)(x)(b)).10 
Table IV.7  
Estimates of Swiss support to agriculture, selected years 
(Sw F million) 
 Average 
  1986/88 2002/04 2005/07 2004 2005 2006  2007a 
Total value of production (at farm gate) 9,482 7,152 6,773 7,284 7,019 6,541 6,759 
Total value of consumption (at farm gate) 11,661 8,629 8,336 8,860 8,593 8,154 8,261 
Producer Support Estimate (PSE) 8,474 7,339 6,032 7, 137 6,966 6,115 5,016 
Support based on commodity output 7,057 4,433 3,061 4,208 4,022 3,175 1,986 
Market Price Support (MPS) 7,015 4,085 2,740 3,876 3,691 2,834 1,696 
Payments based on output 42 348 321 332 330 342 290 
Payments based on input use 561 332 233 224 223 224 251 
Variable input use 454 .. 109 109 105 106 115 
Payments based on current area planted, animal 
numbers, receipts or income, production required 612 .. 1,034 983 992 998 1,111 
Payments based on non-current area planted, animal 
numbers, receipts or income, production required 28 .. 91 91 92 91 91 
Payments based on non-current area planted, animal 
numbers, receipts or income, production not required 0 .. 1,302 1,318 1,320 1,320 1,267 
Percentage PSE 77 71 60 68 68 62 50 
General Services Support Estimate (GSSE) 688 518 488 504 490 496 478 
GSSE as a share of TSE (%) 6.7 6.5 7.5 6.4 6.5 7.4 8.6 
Consumer Support Estimate (CSE) -7,759 -4,877 -3,605 -4,748 -4,619 -3,783 -2,412 
Total Support Estimate (TSE) 10,251 8,019 6,635 7, 825 7,603 6,717 5,584 
Percentage TSE (share of GDP) 3.86 1.84 1.4 1. 7 1.6 1.4 1.1 
.. Not available. 
a Provisional.  
Note: MPS commodities for Switzerland are:  wheat, maize, other gr ains, oilseeds, sugar, milk, b eef and veal, sheep meat, pig m eat, 
 poultry, and eggs.  Market price support is ne t of producer levies and excess feed costs. 
Source:   OECD (2005), Agricultural Policies in OECD Countries:  Monitoring and Evaluation 2005 , p. 69;  OECD (2007), 
 Agricultural Policies in OECD Count ries:  Monitoring and Evaluation 2007 , p. 215;  and OECD (2008), 
 Agricultural Policies in OECD Countries: At a Glance 2008.  Viewed at http://www.oecd.org/document/ 
 59/0,3343,en_2649_33797_39551355_1_1_1_1,00.html.  
26. Switzerland has notified its quantity of food ai d to least developed and net-food-importing 
developing countries between 2003 and 2005.11  Food aid was provided solely in response to 
humanitarian needs, and on full-grant terms.  In 2006/07, 71,051 tonnes of food aid was provided. 
27. Liechtenstein maintains its own direct payments  system   Direct payments to its farmers 
increased from Sw F 10.5 million in 2002 to Sw F 12.3 million in 2007 (Table IV.8).  Eligibility 
criteria include ecological and animal-health standa rds, and the number of hectares cultivated.  The 
authorities indicate that a law on agriculture is under preparation and expected to enter into force in 
2009.  The law is aimed at increasing the competiti veness of Liechtenstein's agriculture sector and 
maintaining market conditions similar to those in Switzerland.  It is also planned to put more 
emphasis on marketing and image-building with a vi ew to better promoting agricultural goods made 
in Liechtenstein.  During the review period, reform  efforts have concentrated on improving conditions 
for milk production (section (iii)(a) below).  Furt hermore, a law on support of investment in 
                                                      
10 Article 18 of RS 910.1, and RS 916.51 . 
11 WTO documents G/AG/N/CHE/39, 30 November 2007, and G/AG/N/CHE/39/Corr.1, 
12 December 2007. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 99 
 
 
agriculture (in force since 1 January 2001) provides young farmers with interest-free start-up loans of 
up to Sw F 150,000 for constructions that are "reasonable in price and flexible in use".   
Table IV.8 
Liechtenstein outlays for direct payments, 2002-07 
(Sw F '000) 
 2002 2003 2004 2005 2006 2007
Complementary direct payments  4,541 4,726 5,170 5,256 5,379 5,789
Payments for farming in difficult production locations   934 951 952 934 947 952
Payments for ecological farming 4,361 4,330 4,761 4,666 4,820 4,977
Summer pasturing 625 575 569 559 552 578
Total 10,461 10,582 11,452 11,415 11,698 12,296
Source:  Information provided by the Liechtenstein authorities.  
(iii) Key subsectors 
(a) Food, beverages, and tobacco products 
28. Food manufacturing remains the most protected industrial activity in the customs union (see 
also section (ii) above).  Tariffs are high, on average, and prohibitive in many cases, reaching 1,468.7% on edible frozen offal of bovine animals, other than tongue or liver.  A tariff quota of 1.7 million hectolitres is in place on white and red whine (Table IV.4). Most food products and 
beverages are subject to the reduced VAT rate of  2.4%.  Excise duties are collected on tobacco 
products and certain alcoholic beverages (Chapter III (2)(v)).  Imports of food, beverages, and tobacco 
products amounted to US$6.5 billion in 2007, while exports were US$5.3 billion. 
29. An agreement (between the EC and Switzerla nd) on processed agricultural products, which 
entered into force in 2005, abolished or reduced tariffs and export subsidies for numerous processed 
agricultural products when traded between the two par ties.  In addition, their bilateral trade in cheese 
was fully liberalized as of 1 June 2007. 
30. Switzerland's food processing subsector has been  a major beneficiary of the export subsidy 
scheme, receiving Sw F 90 million in 2005 and in 20 06 each (Table IV.6). However, export subsidies 
for processed products have declined in recent year s, mainly due to the above-mentioned agreement 
with the EC.  Food processing companies located in Liechtenstein are eligible for the Swiss export 
subsidy scheme.  
(b) Livestock, dairy, and related products 
31. Livestock breeding and production of dairy go ods are the most important agricultural 
activities in Switzerland and Liechtenstein (Table IV .1).  Imports of various live animals, certain 
animals for slaughter, dairy products, and casein are subject to tariff quotas (Table IV.4).  Average 
applied MFN tariffs are 50.05% on live animals (HS c ode 01), 128.8% on meat and edible meat offal 
(HS code 02), and 58.1% on dairy products (HS code 04).  Product-specific subsidies remain in place 
for butter (Chapter III(4)(i)).  Various milk products are eligible for price support (section (ii) above).  
A system of milk production quotas, established in 1999,  is to be phased out by April 2009.  Only a 
few producers remain within the quota system. 
32. There are some 28,000 milk producers in Switzer land.  Production has been relatively stable 
for more than three decades, at some 4 milli on tonnes per year.  Milk production per cow has 
increased continuously, while the number of cows declined from nearly 800,000 in 1980 to some 
690,000 in 2007. WT/TPR/S/208 Trade Policy Review 
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33. Despite the high level of protection and policy in tervention, imports in some meat and dairy 
products remain significant:  for example, impor ts of meat and meat products amounted to 
US$581 million in 2007, and imports of dairy products were US$477 million.  Due to price 
differences with neighbouring countries, consumers in  Swiss border regions heavily rely on the     
cross-border-purchase of the most protected produc ts (e.g. meat and dair y products, alcoholic 
beverages).   
34. Liechtenstein's milk output was 14,052 tonnes in 2006, up from 13,250 tonnes in 2000.  The 
Milk Quantity Regulation Law, adopted in 2008 ha s been gradually abolishing production quotas.  
During the transition period, quotas will be administer ed by the producers' associ ation.  While there is 
no timetable for the abolition of the quota, the ultima te objective of the law is to obtain self-regulation 
in the milk market. 
(c) Sugar beet and sugar 
35. Sugar beet is cultivated by some 7,000 farmers on an area of some 18,500 hectares.  The 
production value of sugar beet has fluctuated between Sw F 130 and Sw F 170 million since 2001 
(Table IV.1).  There are two sugar refineries,  in Aarberg and Frauenfeld, producing some 
200,000 tonnes of sugar annually.  The refineries are mandated by the Federal Council to produce an 
annual minimum quantity of sugar from Swiss sugar beet;  this minimum was set at 120,000 tonnes 
until 2003, and has been 150,000 tonnes since 2004.   The refineries negotiate annually with farmers' 
associations the necessary quantity of beet, its dist ribution among producers, and its price.  The 
refineries are required to sell their sugar and other by-p roducts of beet at market prices.  In return, the 
Confederation grants the refineries financial assi stance, amounting to Sw F 15 million in 2007 and 
2008, with a view to ensuring a certain self-sufficien cy in sugar.  In the framework of AP2011, the 
subsidy will be re-directed towards sugar beet pr oducers, who will receive Sw F 850 per hectare of 
sugar beet production in 2008 and Sw F 1,900 in 2009.   
36. The average AVE of customs tariffs on sugar a nd confectionery (HS code 17) is 11.6%, with 
a maximum of 82.6% on glucose and glucose syrup.  In addition, Switzerland maintains a preferential 
duty-free tariff quota of 7,000 tonnes per year on can e sugar from least devel oped countries (opened 
in 1997 in addition to WTO commitments).12  Imports of sugar and confectionary amounted to 
US$308 million in 2007. 
37. The agreement with the EC on processed ag ricultural products, in force since 2005, 
establishes free trade in processed sugar-containing produc ts.  In addition, various technical barriers to 
trade apply to these products;  they have been eased  in trade with the EC through mutual recognition 
of the equivalence of the relevant legal provisions (Chapter II(4)(ii)(c)). 
(d) Other crops 
38. Production of cereals and potatoes has declined slightly since 2001, reflecting a decrease in 
the area under cultivation for these crops (Table IV.1).  Imports of cereals (HS code 10) are subject to 
customs duties with AVEs averaging 18.3%, and up to  290.3%, on onions and shallots.  Products of 
the milling industry (HS code 11) bear an averag e AVE of 40.4%, while the average on oilseeds is 
7.8%, with a maximum of 104.5% on rape and colza seeds.  Durum wheat, broad grains, coarse grains 
for human consumption, and potatoes are subject to tariff quotas;  fill rates for these products are relatively high (Table IV.4).  Imports of cereals amounted to US$265 million in 2007, while exports 
were US$1.4 million.  Imports of products of the milling industry amounted to US$72 million, and 
                                                     
 
12 RS 632.911 . Switzerland and Liechtenstein WT/TPR/S/208 
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exports to US$5 million.  Oilseeds imports were US$193 million, while exports were 
US$10.5 million.  Subsidies are available to producers of oilseeds and to processing plants (Chapter III(4)(i)).  
39. The annual production value of fruits has ra nged between Sw F 500 and Sw F 600 million 
since 2001, while the annual value of vegetables, othe r than cereals and potatoes, has been slightly 
lower in most years, between Sw F 470 and 540 mi llion (Table IV.1).  Average tariffs are 37.8% on 
edible vegetables (HS code 07) , reaching 1,256% on lettuce, a nd 12.9% on edible fruit and nuts 
(HS code 08), with a maximum of 258% on fresh grap es.  Fresh and frozen vegetables, various types 
of fruit, fruit for cider, grapes, and seed-fruit prod ucts are subject to tari ff quotas (Table IV.4).  
Producers of high protein peas and field beans re ceive a subsidy proportionate to the area under 
cultivation (Chapter III(4)(i)).  Imports of edible  vegetables amounted to US$553 million in 2007, 
while exports were US$4.5 million.  Imports of fruits and nuts were US$870 million, whereas exports 
amounted to US$20.3 million. 
(e) Forestry and logging, and fisheries 
40. About one third of Switzerland is covered by forests;  two thirds of these are located in the 
Alps.  Switzerland's forestry policy is based on th e principles of protection against natural disaster, 
biological diversity, and efficient use of forest r esources.  The Forests Law of 1991 (RS 921.0) is the 
main legal instrument in the subsector.  Under the law, subsidies may be provided to forestry 
activities for measures such as tending and hau ling, and indemnities may be paid for, inter alia , 
replanting or protection of valley areas against av alanches.  Federal financial assistance totalled 
Sw F 173 million in 2006 and Sw F 149 million in 2007 .  Since 2008, federal subsidies are paid for 
the achievement of specific ecosystem services, such as protection against natural hazards or biological diversity.  The average tariff on forestry and logging products is 0.5%.  Exports of forestry and logging products (ISIC code 12) amounted  to US$201 million in 2007, and imports to 
US$90 million. 
41. Limited to the bigger lakes, fishing is not de veloped in Switzerland and Liechtenstein.  In 
2007, imports of (unprocessed) fishing products (ISIC  code 13) were US$134 million, and imports of 
(processed) fish products (ISIC code 3114) amounted to US$468 million.  The average tariff is 0.2% 
on both product categories.  
(3) E
NERGY  
(i) Major features 
42. The Swiss Federal Office of Energy form ulates policies for the energy sector.13  I n  
February 2007, the Federal Council adopted a new Energy Strategy.  With a view to securing energy 
supply and reducing CO 2 emissions, the Strategy is based on four pillars: (i) increased energy 
efficiency, through energy savings and use of new technologies;  (ii) increased reliance on renewable 
energies;  (iii) accelerated procedures for the constr uction of large energy infrastructure (grids, gas 
power stations) as a measure to avoid medium-term s upply shortages;  and (iv) increased international 
cooperation, in particular with the European Co mmunities and other energy-producing countries.  
This is to ensure future supply security and allow Switzerland's participation in the European trade in 
CO 2 certificates (pollution rights). 
43. Switzerland and Liechtenstein have not made any GATS commitment with respect to energy 
services per se .  However, under "Business services", bot h Switzerland and Liechtenstein have 
                                                      
13 Swiss Federal Office of Energy online informa tion.  Viewed at:  http://www.swiss-energy.ch. WT/TPR/S/208 Trade Policy Review 
Page 102 
 
 
undertaken specific commitments on "Services incidental to mining, excluding prospecting, 
surveying, exploration and exploitation (part of CPC 883 and part of 5115)".14  Under the GATT, 
import duties have not been bound on gas,  petroleum, and related products.   
44. Neither Switzerland not Liechtenstein produce fo ssil fuel.  Therefore, net imports accounted 
for some 82% of Switzerland's energy consumption in 2007.15  The major sources of Switzerland's 
total primary energy consumption in 2007 were:  fo ssil fuels (45.2%), nuclear power (25.2%),   
hydro-power (11.5%), natural gas (9.7%), and ot hers, including firewood, waste combustion, coal, 
and solar and wind power (8.4%).  Energy imports are tariff free. 
45. Liechtenstein's total energy consumption was 1,307 GWh in 2007, of which some 92% was 
imported.16  Natural gas is the most important source of energy, with a share of 29% in total 
production, followed by electricity (29%), and fuel o il (13%).  Domestic energy production is mainly 
through various hydro-electric power stations, al though the contribution of solar power has been 
increasing.  The Energy Commission is the regulat ory agency in the subsector.  The authorities' 
objective is to increase the share of renewable energies to 10% by 2013, through subsidies for 
improved insulation and sun-collectors, and tig hter energy standards in construction. 
(ii) Oil products 
46. In 2007, Switzerland imported oil products fo r US$8,629 million, of which 29% was crude 
oil.  Switzerland has two crude oil refining plants.  The retail market in Switzerland and Liechtenstein 
is dominated by seven private companies;  prices for petroleum products are market-determined.  
There are no restrictions for engaging in the im portation of oil, provided the importer satisfies the 
stockholding obligation as set out in the Fede ral Law on national economic supply (RS 531).  
47. Switzerland and Liechtenstein apply the same duties and taxes on energy.  Crude petroleum 
enters the customs union tariff-free;  VAT is collected  at the standard rate of 7.6%.  VAT revenues on 
oil products (fuels and combustibles) totalled Sw F 780 million in 2007. In addition, various other 
duties and taxes apply to specific petroleum produc ts.  The mineral oil tax (Sw F 3,048 million of 
revenues) is levied on all oil products a nd natural gas. With a view to reducing CO 2 emissions,        
bio-fuels fulfilling certain ecological and social cond itions have been partially or fully exempt from 
the mineral oil tax since July 2008.  In addition, a surtax on mineral oils is levied on transport fuels 
only (Sw F 2,039 million).  Together, the specific consumption taxes on petroleum products accounted for almost 9% of federal revenue in 200 7.  Tax rebates are gran ted to agricultural and 
concessionary public transport.  
48. According to the International Energy Agen cy (IEA), heating oil and gasoline prices in 
Switzerland are the among the lowest in Europe.  Th is, coupled with the depreciation of the Swiss 
franc against the euro in recent y ears, has accentuated fuel tourism.
17   
(iii) Natural gas 
49. Natural gas sales were 31,500 GWh in 2006, up from less than 29,000 GWh in 2002.  As no 
natural gas has been produced in Switzerland since 1994, the entire consumption is imported.  Imports 
are duty free.  Swissgas, which is mainly controlled by municipally-owned regional distribution companies, accounts for some 75%  of total natural gas imports into Switzerland.  The natural gas 
                                                     
 
14 WTO documents GATS/SC/83 and GATS/SC/83A, 15 April 1994. 
15 Swiss Federal Office for Energy (2008).  
16 Amt für Volkswirtschaft (2008). 
17 International Energy Agency (2007a). Switzerland and Liechtenstein WT/TPR/S/208 
 Page 103 
 
 
market is mostly under the de facto  monopoly of cantons and munici palities.  Even though both the 
Pipeline Law and the Competition Law provide for th ird-party access, the lack  of market entrants 
prevents consumers from changing suppliers.  The au thorities ascribe this to the small size of the 
Swiss market and the absence of large industrial customers.  
50. Natural gas prices are set directly by local au thorities or subject to their approval.  While 
natural gas prices in Switzerland still exceed those in  other OECD countries, the depreciation of the 
Swiss franc vis-à-vis  the euro has narrowed the gap between prices in Switzerland and other European 
countries (Chart IV.1).18 
120170220270320370420470520570
2001 2002 2003 2004 2005 2006Chart IV.1
Natural gas prices in selected OECD countries, 2001-06
End-use prices, industry
US$/tonne of oil equivalent (net caloric value)
Switzerland
Italy
Source: International Energy Agency (2007), Natural Gas Information .France
United 
Kingdom
United 
StatesJapan
 
51. Natural gas in Liechtenstein is distributed by  state-owned Liechtensteinische Gasversorgung 
(LGV). Under the current regime, LGV owns the pipe line and is the only supplier.  Consumers with 
annual consumption of more than 10 GWh may recei ve discounts.  They are also allowed to import 
directly by paying LGV for the use of the pipeline;  transmission prices are subject to approval by the Energy Commission.  A new Gas Market Law, based on EC Directive 2003/55, will be before 
Parliament in September 2008.  The proposed law foresees further liberalization of the market for 
natural gas (production, transmission, and distributi on).  Under the new Law, LGV will continue to be 
state-owned and to own the pipeline. 
(iv) Electricity 
52. Total electricity consumption in Switzerland was 57,400 GWh in 2007.
19 The majority of 
generation is hydro-electric from some 350 power plants (55.2%, down from over 60% in 2001) and 
                                                      
18 International Energy Agency (2007b). 
19 Swiss Federal Office for Energy (2008).  WT/TPR/S/208 Trade Policy Review 
Page 104 
 
 
from five nuclear power plants (40.0%, up from 36%  in 2001).  Other sources of energy include 
fossil-fired, waste, biomass, solar, and wind energy. Imports of electricity amounted to 48,500 GWh in 2007, while exports were 50,600 GWh.  Imports are mainly from French nuc lear power plants, but 
also from Austria and Germany, while exports are mostly to Italy.  Imports are duty-free and not 
subject to a licence.  
53. The electricity branch is owned mainly by cantons and municipalities. There are 7 vertically 
integrated companies active mainly in production, transmission, and trade;  300 production and distribution companies;  200 companies (mostly) jo intly owned by other utility companies and active 
in production;  and around 700 mainly distribution comp anies operating at the municipal levels.  Forty 
major firms account for more than 60% of total distribution.  Production, transmission, and 
distribution activities are still under de facto monopolies.  Seven major electricity companies currently 
own the electricity grid.   
54. A new Electricity Law was adopted in March 2007 and entered into force in January 2008.  
The law provides for a two-stage ope ning of the Swiss electricity mark et.  As of January 2009, large 
industrial and commercial clients
20 will be able to freely choose thei r suppliers;  the market for all 
consumers will be opened in 2014.  The law provides for regulated third-party access to the grid in 
non-discriminatory terms.  Vertically integrated  companies are required to separate from their 
transmission grids and to create an exclusive grid operator (Swissgrid), which will become grid owner 
by January 2013.  Local distribution companies ha ve to keep separate accounts for electricity 
generation, transmission, and distribution. 
55. The Electricity Law also established an inde pendent Electricity Commission (ElCom).  The 
Commission, which has seven members, has the power to order decreases or prohibit increases of 
transmission tariffs or consumer pr ices if it considers them inappropr iate.  Before the establishment of 
the EICom, this responsibility was with the Price Controller.  The ElCom is also responsible for 
preventing abuse of dominant market positions by supp liers, and to ensure grid stability and electricity 
supply. 
56. Swiss electricity prices for captive consumers (i.e. without grid access) are set either by 
cantonal or communal authorities, or by companies.  Therefore, prices differ between cantons and municipalities. Switzerland is the only OECD count ry where electricity prices for industrial users 
have fallen in dollar terms since 2004;  prices were below the average of Euro pean OECD countries in 
2006 (Chart IV.2).    
57. State-owned Liechtensteinische Kraftwerke (LKW) imports, produces, and distributes 
electricity in Liechtenstein. It also sets electric ity prices.  The LKW's electricity sales were 379 GWh 
in 2007, of which 307 GWh were imported from Switzer land.  Liberalization of the electricity market 
started with the adoption of a new Electricity Law in 2002, which opened the market for large 
customers.  Since 2005, independent power producers (IPPs) may sell electricity to any customer;  the 
transmission fee payable to LKW is subject to approval by the Energy Commission.  Nonetheless, no 
IPPs have yet entered the market. 
 
                                                     
 
20 These are clients with an annual  consumption exceeding 100,000 KWh. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 105 
 
 
2007001200170022002700
2001 2002 2003 2004 2005 2006Chart IV.2
Electricity prices in selected OECD countries, 2001-06
End-use prices, industry
US$/tonne of oil equivalent
SwitzerlandItaly
OECD Europe
GermanyAustria
Source: International Energy Agency (2007), Electricity Information .France
 
(4) MANUFACTURING  
(i) Main features 
58. Switzerland is home to several of the world's largest multinational manufacturing companies.  
Despite the importance of multinationals, Swiss manuf acturing is highly diversified.  Most firms are 
small or medium-sized;  they are located throughout the country, but especially in the Mittelland.  
Switzerland's manufacturing sector is characterized  by high R&D-intensity and specialization;  
competitiveness has been increased through the consistent outsourcing of cost-sensitive processes.21  
Some 23.7% of the labour force worked in the industrial sector in 2006.  In 2007, Switzerland imported manufactured goods for US$152 billion (Major  Division 3 of ISIC, Revision 2), while its 
exports amounted to US$168 billion. 
59. In Liechtenstein too, the manufacturing sector is  important in terms of its contribution to 
GDP.  There are some 600 companies, mostly SMEs, ac tive in a large number of market niches.  The 
most important branches are mechanical engineer ing, electrical machinery, vehicle components, 
dental technology, and food produc ts.  Due to the limited domestic market, the larger enterprises, 
especially are heavily export-oriented.  As in Swit zerland, the emphasis is on the development of high 
quality, high-tech products.  Liechtenstein's direct manufacturing exports in 2006 were estimated at 
some Sw F 3.6 billion.
22  
                                                      
21 Credit Suisse (2008). 
22 "Direct" exports are those not ch annelled through subsidiaries or logistic centres in Switzerland. WT/TPR/S/208 Trade Policy Review 
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60. Manufacturing in Switzerland and Liechtenstein also includes the processing of agricultural 
goods (section 2(iii)(a)).  While certain incentive sch emes are in place to support the production of 
processed agricultural goods (e.g. the Price Compensa tion Scheme (section 2(ii)), there are no specific 
incentive schemes for other manufacturing subsector s.  Nonetheless, the close cooperation between 
universities and manufacturers, as well as Switzer land's high level of R&D expenditure, has 
contributed to the success of its high-tech industries. 
61. Using ISIC definition, imports in the manufacturing sector face an average tariff of 6.9%, 
down from 7.7% in 2004.  However, these averages mask peaks of up to 121.6% on used clothing. 
Tariffs exceeding 25% are applied mo stly on textile products, but also  on used tyres, and fish liver 
oils. 
(ii) Textiles, clothing, and footwear 
62. Employment in Switzerland's textiles and clothing industry has contracted continuously, from 
over 33,000 in 1995 to less than 16,200 in 2007.23  Imports of textiles, wearing apparel, and leather 
products amounted to over US$8.8 billion in 2007, while exports were US$4.1 billion.  MFN tariffs 
on textiles and clothing products remain relativel y high, averaging 12.8% on cordage and 9.1% on 
made-up textile goods.  Tariffs exceeding 45% are applied on used clothing, catgut imitations, and 
woven fabrics obtained from synthetic textile strip.24  The industry's interests are represented by Swiss 
Textiles. 
63. The footwear industry has virtually disa ppeared from Switzerland, with remaining 
employment estimated at 350, producing mainly for niche markets.25  Tariffs on footwear average 
2.3%. 
(iii) Chemical and pharmaceutical products 
64. Switzerland's chemical and pharmaceutical i ndustry consists mainly of export-oriented 
companies producing a wide range of highly specialized goods.  Alongside major companies, the industry is made up of some 1,000 small- and medium-sized businesses, with an increasing 
importance of biotech companies.  Some 64,000 persons are employed in the subsector.  Sectoral 
interests are represented by SGCI Chemie Pharma Schweiz. 
65. Switzerland's exports of chemicals, plastics, and pharmaceuticals (ISIC code 35) amounted to 
US$61.8 billion in 2007, whereas imports were US $44.3 billion.  Import tariffs are low, with an 
average of 1.3%.  Drugs and medicines are tariff-free. 
(iv) Machines and equipment 
66. The Swiss machine and equipment industry pr oduces a wide range of goods, including 
precision instruments, watches, optical and scientific instruments, and generators and turbines.  The industry employs some 98,000 people.  Exports of goods belonging to the category of machinery, 
equipment, and fabricated metal products (ISIC code 38) amounted to US$73,622 million, while 
imports were US$59,062 million in 2007.  Tariffs on machines and equipment are low, with an 
average of 1.0% and a maximum of 24%. 
                                                     
 
23 Swiss Textile online information. Viewed at:  http://www.swisstextiles.ch/boxalino/files/ 
Document71file.pdf. 
24 HS codes are 6309.0000 (121,6%), 5804.9010 (49%), and 540.7200 (47.4%). 
25 NZZ Folio , "Nichts geht mehr", November 2007.  Switzerland and Liechtenstein WT/TPR/S/208 
 Page 107 
 
 
67. Switzerland and Liechtenstein do not produce mo tor vehicles on a commercial scale.  After 
customs clearance, all vehicles and specified part s must be homologated by the Federal Office for 
Roads.  The Office addresses, inter alia , pollutant emission, noise, brakes, lights and lighting, 
speedometer and tachometer readings, and make of tyres.  Inspection fees are determined at the 
cantonal level and range between Sw F  40 and Sw F  80.  Furthermore, the owner must bear the costs 
of bringing the vehicle into compliance with natio nal regulations.  EC type -approvals are accepted.  
Sales of motor vehicles are subject to a motor vehi cle tax of 4% in addition to the VAT of 7.6%.  
Import tariffs on motor vehicles average 1.8% on an AVE basis.  Imports of motor vehicles amounted to nearly US$10.9 billion in 2007.   
68. Distribution contracts between importers and fo reign producers of motor vehicles must not 
prohibit parallel imports;  all foreign d ealers are allowed to sell in Switzerland.
26  Furthermore, the 
Competition Commission has decided that manufacturers may engage in contracts with repair garages 
for the delivery of spare parts only on the basis of quality criteria, and in a non-discriminatory 
manner.27 
(5) SERVICES  
69. The service sector is the backbone of the Sw iss and Liechtenstein economies and of key 
importance for national income, employment, and foreign exchange generation (Chapter I(1)).  
Switzerland and Liechtenstein have their own policies on trade in services and act independently in 
international fora, including the WTO.  Commit ments made by Switzerland and Liechtenstein under 
the GATS largely reflect the state of liberalization at the time of negotiation.  With the exception of 
presence of natural persons (the measures con cerned are unbound), Switzerland and Liechtenstein 
have largely bound (generally without limitations) measures affecting almost all the other modes of 
supply of services.  However, measures affecting commercial presence for the supply of certain services are either unbound or the related commitmen t is qualified (e.g. legal services), while those on 
cross-border supply of maintenance and repair of tr ansport equipment, rental of vessels with crew, 
and packaging services are unbound.
28  Financial services commitments are largely qualified.   
70. Switzerland submitted a revised offer in the services negotiations in June 2005.29  Compared 
with its initial proposal submitted in 2003, the re vised offer provides for new commitments in a 
number of service subsectors, particularly in cons truction services and tourism.  However, the revised 
offer largely reflects measures al ready in place and does not go beyond the state of liberalization of 
Switzerland's service sector as of mid-2008.  In  the negotiations, Switzerland also submitted requests 
to some 50, mainly industrialized WTO Members.30  The requests targeted the following subsectors:  
financial services, intra-corporate transfers, installers and maintainers, logistics services (services auxiliary to all modes of transport), sel ected business services, and tourism services. 
                                                     
 
26 Competition Commission online information, "Com munication concernant les accords verticaux 
dans le domaine de la distribution automobile" of 21  October 2002.  Viewed at:  http://www.weko.admin.ch/ 
publikationen/00213/Zusatzinfos-F.pdf?lang=fr. 
27 Competition Commission (2008). 
28 See WTO documents GATS/SC/83 and GATS/SC/83-A, 15 April 1994 for details of specific 
commitments under GATS by Switzerland and Liechtenstein, respectively.  For a detailed description of Switzerland's and Liechtenstein's MFN exceptions, see WTO (2000). 
29 WTO document TN/S/O/CHE/Rev.1, 14 June 2005.  Switzerland submitted its initial offer in WTO 
document TN/S/O/CHE, 11 April 2003.  
30 The EC(15) was counted as one Member. WT/TPR/S/208 Trade Policy Review 
Page 108 
 
 
(i) Construction services 
(a) Switzerland 
71. Under the GATS, Switzerland has bound measure s affecting market access and national 
treatment in all construction activities, with the exception of certain construction work for civil 
engineering (ex CPC 513),  special trade construction work (CPC 515),  and rental services for 
construction equipment (CPC 518).  Switzerland has also scheduled certain MFN exemptions, as well 
as qualification requirements reflecting restrictions on access to its labour market.  The MFN exemptions are:  assembly and erection of prefab ricated buildings and installation work for energy, 
heating, water, communications, and lifts. A vari ety of activities in these areas require permits or 
authorizations by cantonal or local bodies. 
72. Construction spending in Switzerland has increa sed steadily since 2003 and amounted to over 
Sw F 50.6 billion in 2006 (Chart IV.3).  The incre ase was driven mainly by strong growth in private 
spending for housing, and commercial and industria l buildings, whereas public construction spending 
has remained at constant levels since the mid 1990s. 
0102030405060
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Chart IV.3
Construction spending by project, Switzerland, 1995-06
SwF billion
Source: Swiss National Bank online information, "Construction pro jects and expenditure".  Viewed at : 
http://www.snb.ch/ext/stats/statmon/pdf/deen/K1_Bauausgaben.pdf.Other private sectorIndustry and commerce
HousingPublic sector
 
73. Restrictions to trade in this subsector used to be fourfold:  standards and technical regulations 
have traditionally been both particularly stringent a nd specific to Switzerland;  several professions in 
the subsector continue to be regulated at cantonal le vel;  in the past, there have been a relatively large 
number of restrictive arrangements and other anti -competitive practices among  suppliers that limited 
entry of new, including foreign, suppliers;  and the limits on work permits for foreign employees 
hamper the competitiveness of this labour-intensi ve subsector.  Together, these factors have 
contributed to high construction costs by intern ational comparison. Acco rding to EUROSTAT data, Switzerland and Liechtenstein WT/TPR/S/208 
 Page 109 
 
 
the price level in the Swiss construction subsector was 36.4% higher than in neighbouring countries, 
only part of which can be attributed to higher salaries.31 
74. Technical regulations in the c onstruction sector are initiated mostly by the Swiss Society of 
Engineers and Architects (SIA), a member of  the Swiss Association for Standardization 
(Chapter III(2)(x)).  However, the SIA has to w ithdraw national technical regulations whenever 
corresponding European technical regulations are adopted.  Furthermore, in spring 2008, Switzerland and the EC included a chapter on c onstruction goods into their mutu al recognition agreement.    
75. The 1995 Federal Law on the internal market (C hapter III(4)(iii)) was expected to establish a 
unified construction market in Switzerland, by e liminating barriers such as local residence and 
establishment requirements, and membership obligati ons in local trade associations, and by opening 
up procurement at the sub-federal level.  The LMI states that goods, services, and labour legally 
eligible for access to one canton can also be offere d in any other canton.  Nonetheless, competition is 
still limited in Switzerland's construction industr y, which has suffered from various restrictive 
arrangements and other anti-competitive practices  among suppliers.  Since the last TPR of 
Switzerland and Liechtenstein in 2004, the Competition Commission has undertaken inquiries, 
covering road surfacing, "price supports" for electrician s by an installation company, joint price lists 
of brick producers, and a merger between two major construction companies (Chapter III(4)(iii)). 
(b) Liechtenstein 
76. The non-financial services regime also applies to  construction services (Chapter II(5)(ii)).  In 
the public sector, both the GPA and the EEA regi mes apply.  Liechtenstein has included MFN 
exemptions under Article II of the GATS to ensure "adequate" market access to local suppliers of 
construction and related engineering services.
32  However, the authorities indicate that this reciprocity 
requirement has never been applied in practice, an d that Liechtenstein intends to give up the MFN 
exemption in the framework of its next revised offer. 
(ii) Financial services 
77. Switzerland's financial services subsector employ ed 192,900 in 2007, equi valent to 5.9% of 
total employment, and contributed 11.8% to GDP.  In Liechtenstein, financial services accounted for 
29% of GDP in 2005 , the latest year for which figures are available. 
78. Under the 1980 Currency Treaty between Swit zerland and Liechtenstein, Swiss monetary 
policy is also applicable to Liechtenstein;  th e Swiss franc has been used as legal tender in 
Liechtenstein since 1924.  The Swiss National Bank (SNB) has the same power s over, and obligations 
to, Swiss and Liechtenstein banks.  Under the 2004 Federal Law on the Sw iss National Bank, SNB 
pursues a monetary policy aimed at price stability, taking due account of economic development.  In addition, the SNB must contribute to the stabili ty of the financial system. The Act and the 
corresponding ordinance also clarify the SNB's oversight responsibilities as regards payment and 
securities clearing, and settlement systems.  
79. In their specific commitments under the GATS,  Switzerland and Liechtenstein have, with 
certain limitations, made commitments in all subsectors included in the Annex on Financial 
Services.
33  Going beyond the Understanding on Commitments in Financial Services, both countries 
                                                      
31 OECD (2008), p.2. 
32 See WTO documents GATS/EL/83 an d GATS/EL/83-A, 15 April 1994 for Final Lists of Article II 
(MFN) Exemptions for Switzerland and Liechtenstein, respectively. 
33 WTO document GATS/SC/83/Suppl. 4, 26 February 1998. WT/TPR/S/208 Trade Policy Review 
Page 110 
 
 
have gone further in terms of liberalization of cro ss-border supply, by expanding the sectoral coverage 
of commitments made under mode 1 for banking an d other financial services (excluding insurance).34  
In the case of insurance, however , commitments on cross-border s upply remain limited to marine, 
aviation, and transport (MAT); reinsurance; and auxiliary services (as stipulated in the 
Understanding). 
80. Switzerland and Liechtenstein are parties to the Convention on Laundering, Search, Seizure 
and Confiscation of the Proceeds of Crime (Str asbourg Convention of 8 November 1990), as well as 
the UN Convention against Transnational Or ganized Crime (Palermo Convention of 
15 November 2000) and the 1999 In ternational Convention for the Suppression of the Financing of 
Terrorism.  Both countries also supports the Un ited Nations Global Programme against Money 
Laundering.  While Switzerland is a member of  the Financial Action Task Force (FATF), 
Liechtenstein participates in the Select Committ ee of Experts on the Evaluation of Anti-Money-
Laundering Measures (also known as Moneyval).35  
(a) Banking and fund management services 
Switzerland 
81. Switzerland is one the most important financia l centres in the world, attracting high volumes 
of foreign business.  This is largely the result of political, economic, and social stability, prudent monetary management, a liberal regime on capital movements, and a tradition of bank secrecy.  The 
Swiss franc is the world's fifth most important reserve currency.
36  Furthermore, due to low Swiss 
interest rates, bond issuance in Sw iss francs is an attractive opti on even for non-Swiss borrowers.  
Switzerland has a universal banking system;  thus, securities and investment fund activities are also 
dominated by banks.  Private banking is by far the most important subsector, and Switzerland is the 
world leader in cross-border private banking.  At  end 2007, Swiss banks managed customer deposits 
totalling Sw F 5,235 billion for dome stic and international clients. 
82. At end 2007, Switzerland's banking system cons isted of 330 banks (Table IV.9).  The two 
biggest banks, UBS and Credit Suisse, rank among the world's top ten financial institutions. 
83. Banking activities are mainly regulated by the Banking Law and the Banking Ordinance.37  
To obtain a licence from the Swiss Federal Banking Commission (SFBC), a bank must provide evidence of clearly defined business, adequate orga nization, and good reputation of the managers; the 
latter must be domiciled in a place allowing them  to ensure "responsible management".  Natural 
persons or legal entities holding, directly or indirec tly, 10% or more of the capital or voting rights, or 
who otherwise significantly influence the bank (qua lified participation), must guarantee that their 
influence will not adversely affect the bank's activity .  They must notify the SFBC before acquiring or 
selling a qualified participation or when their pa rticipation crosses (upwards or downwards) the 
threshold of 20%, 33% or 50%.  The minimum, fully paid-up share capital is Sw F 10 million.
38   
                                                      
34 A footnote to mode 1 commitments for Banking and Other Financial Services (excluding insurance) 
states: "Are covered not only transactions indicated in pa ragraph B.3 of the 'Understanding' but the whole range of 
banking and other financial services tr ansactions (excluding insurance)." 
35 The role of Moneyval is to evaluate the implementation of both FATF recommendations and the 
provisions of the Strasbourg Convention for members of the Council of Europe that are not members of FATF. 
36 IMF online information, " Currency Composition of Official Forei gn Exchange Reserves".  Viewed at:  
http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf [2 July 2008] 
37 RS 952.0, as amended;  and RS 952.02, as amended. 
38 Article 4 of RS 952.02. Switzerland and Liechtenstein WT/TPR/S/208 
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Table IV.9 
Structure of the Swiss banking system, 2008 
 No. Balance sheet total (Sw F billion) 
All banks 330 3,457.9 
Cantonal banks 24 356.6 
Large commercial banks 2 2,341.1 
Regional and savings banks 76 85.3 
Loan associations 1 123.1 
Other banks, of which:   183 487.8 
Commercial banks 7 47.2 
Stock exchange banks 48 144.6 
Other banking institutions 6 7.2 
Foreign-controlled banks 122 288.8 
Branches of foreign banks 30 34.4 
Private bankers 14 29.5 
Source : Swiss National Bank (2008), Banks in Switzerland 2007 , Volume 92.  Viewed at: 
 http://www.snb.ch/de/ia bout/stat/statpub/bchpub/stats/bankench [14 July 2008].  
84. The SFBC, an independent federal authorit y, is responsible for bank regulation and 
supervision.39 It supervises all financial institutions that ar e active in licensable activities, in particular 
the acceptance of deposits from the public on a prof essional basis.  Thus, SFBC supervises banks, 
securities dealers and stock exchanges, investment funds, and the two mortgage bond institutions, as 
well as  the disclosure of share holdings and public takeover bids.40  As PostFinance is not a bank, it is 
not subject to the Banking Law and is supervised by  the Federal Council, the Federal Department of 
Finance, and the Department of the Environm ent, Transport and Energy and Communications. 
85. The establishment of all branches, subsidiaries or agencies of foreign banks in Switzerland 
requires a licence issued by the SFBC.  The name of a foreign bank must not give the impression that 
it is a Swiss bank.  Access remains subject to r eciprocity, except in cases covered by international 
obligations, such as the WTO Agreements.  In additi on, general requirements for the establishment of 
foreign companies in Switzerland apply to banks.  Once established, foreign-owned banks enjoy the 
same status as Swiss banks.  The SFBC is empowered to supervise foreign establishments in 
Switzerland, but it also permits foreign authorities to  conduct inspections at Swiss establishments of 
foreign banks.  Since 2000, the SFBC has also li censed Internet-exclusive banks and securities 
dealers.  Regulation is identical to that of ins titutions with physical presence, including regarding due 
diligence and money laundering provisions.   
86. Bank secrecy, defined in Article 47 of the Banking Law, is an important aspect of the Swiss 
banking system; it covers all busin ess relations between the bank and its customers and is not limited 
in time.  Furthermore, breach of bank-client confid entiality by bank employees is a criminal offence.  
However, bank secrecy is lifted in criminal cases  (such as guns or narcotics trade, corruption, 
terrorism, money laundering, and tax fraud) and can  be lifted in civil cases under certain conditions 
(such as inheritance, divorce or bankruptcy).  With regard to international legal and administrative 
assistance in tax matters, Swiss legislation disti nguishes between tax evasion and tax fraud.  With 
regard to international legal and administrative assistance in tax matters, Swiss legislation 
distinguishes between tax evasion and tax fraud.  Tax evasion  is committed when a taxpayer fails to 
                                                      
39 Administratively, the SFBC is integrated in the Federal Department of Finance;  however, it is 
independent of the directives of the Federal Coun cil.  See SFBC online information.  Viewed at:  
http://www.ebk.admin.ch/. 
40 Independent asset managers who do not keep accounts for clients under their name, and "introducing 
brokers" for foreign securities dealers who are not closel y linked to one specific foreign securities dealer are not 
supervised by the SFBC.  WT/TPR/S/208 Trade Policy Review 
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submit a tax return or when a valid tax return is incomplete (e.g. as a result of false or incomplete 
entries).  Tax fraud is committed when, for the pur poses of tax evasion, falsified or non-genuine 
records, such as accounts, balance sheets or income statements and ot her statements of third parties, 
are used to deceive.  The tax return itself is not c onsidered to be a document.  Tax fraud can also exist 
without documents being falsified when wilful decei t is practised to evade tax.  Switzerland provides 
legal and administrative assistance in tax matters, wh en the foreign procedure concerns an offence 
that is regarded as tax fraud in Switzerland.41.  The Money Laundering Law of 10 October 1997 is the 
legal basis for combating money laundering.42  Pursuant to Article 6 of the Act, financial 
intermediaries are obliged to clarify the ec onomic background and the purpose of a business 
relationship or transaction if there are indications that assets stem from illegal operations. In such a 
case, the intermediary must also inform the Money Laundering Reporting Office (MROS). 
87. The 24 cantonal banks, which are fully or partly  owned by the cantons, concentrate on credit, 
deposit business, and mortgages in their local areas43;  they account for over 30% of domestic banking 
business;  21 cantons guarantee their bank's liab ilities.  In addition, cantonal banks benefit from 
preferential treatment regarding capital requirements and taxation.  However, these special rules have 
been under examination for a number of years with a view to eventually abolishing them. Only two 
institutions have the right under th e Mortgage Bond Act of 1930 to i ssue mortgage bonds:  the Central 
Bond Issuing Body of the Swiss Cantonal Banks  (Pfandbriefzentrale der schweizerischen 
Kantonalbanken) and the Mortga ge Bond Bank of Swiss Mortgage  Institutions (Pfandbriefbank 
schweizerischer Hypothekarinstitute ).  Only cantonal banks may participate in the former, while 
participation in the latter is lim ited to banks whose head office is in Switzerland and for which Swiss 
mortgage loans represent at least 60% of their balance sheet assets.   
88. The Union of Raiffeisen Banks is an associa tion of 390 small regional banks, each of which 
operates independently, pooling local savings and le nding money to local businesses.  The Union is 
organized as a cooperative with more than 1.5 milli on people holding cooperative shares.  The client 
assets of the Raiffeisen banks amounted to Sw F 94  billion in 2007.  Furthermore, some 76 regional 
savings banks, most of them associated with the RBA Holding AG, are active in local retail banking. 
89. PostFinance, a branch of state-owned SwissPos t, offers financial services in some 2,469 post 
offices and 29 advisory centres.  With its 2,700 st aff, PostFinance had assets of nearly Sw F 44 billion 
in 2007, spread over more than 3.3 million accounts.  As PostFinance is not a bank as defined by the 
Banking Law, it may only offer financial services fo r which no licence is required.  Thus, payment 
transactions represent its main business area, whereas various financial services, such as deposits or 
loans, are offered on behalf of Swiss banks.   
90. SWX Swiss Exchange, founded in 1995 and based in  Zurich, is Switzerland's stock exchange.  
The SWX group, in cooperation with Deutsche Börse, also operates Eurex, a derivatives exchange, as 
                                                      
41 The Swiss Penal Code distinguishes three categories of offences.  The relevant criterion is their 
gravity as expressed by the maximum penalty they carry .  Thus, "felonies" are of fences carrying custody of 
more than three years, "misdemeanours" are offences w ith a maximal penalty of no more than three years of 
custody or financial penalty, and 'contraventions' are petty offences carrying a fine.  With regard to these 
different categories of offences, according to Swiss law, tax fraud belongs to the category of 'misdemeanours', 
which means it is considered as an offence with  a maximal penalty of no more than three years  of custody or 
financial penalty.  In contrast, tax evasion in Switzerland is generally punished with a fine and is therefore 
considered as a contravention and not as a misdemeanour (as would be the case for tax fraud) under the Swiss Penal Code.  It is incumbent upon the taxation authorities and not the prosecution authorities to implement 
proceedings against tax evasion.  
42 RS 955.0. 
43 Each canton, except for Solothurn and Appenzell Ausserrhoden, has its own cantonal bank. Switzerland and Liechtenstein WT/TPR/S/208 
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well as Scoach, an exchange for structured products .  In 2007, total turnover of foreign and domestic 
securities (equities, funds, bonds, derivatives) was Sw F 2,528 billion44;  total market capitalization of 
SWX Swiss Exchange was some Sw F 1,187 billi on.  The main legislation on stock exchange 
operations is the 1995 Stock Exchange La w (LBVM) and the relevant ordinances.45  U n d e r  t h e  
LBVM, stock exchanges must ensure  sufficient self-regulation, and are subject to supervision by the 
SFBC.  In order to be granted a licence, securitie s dealers must provide information and ensure 
internal separation of their trading, portfolio management, and settlement business;  minimum fully 
paid-up capital is Sw F 1.5 million. Stock ex changes organized under foreign law are granted 
authorization to operate in Switzerland if they are subj ect to "appropriate supervision". As at         
end-2007, 3 domestic and 36 foreig n stock exchanges have been gr anted authorization.  Foreign 
securities dealers may request SFBC authorization to  establish a Swiss branch;  they must provide 
information and evidence of "adequate organizati on, sufficient financial resources, and qualified 
staff".  In addition, foreign supervisory authoriti es must consent to cross-border operations, and to 
provide administrative assistance and information to the SFBC.  
91. Collective investment funds are subject to the revised Collective Invest ment Law (LPCC) and 
ordinance.46  The new legislation provides that asset managers of Swiss collective investment 
schemes, based in Switzerland, must be authorized  by the SFBC and are under its constant prudential 
supervision.  These asset managers may be natural or legal persons; in the latter case they must be a 
joint-stock company, a stock company with unlimite d partners, a limited liability company, a general 
partnership or a limited partnership.  Asset mana gement of Swiss collective investment schemes may 
also be delegated to foreign asset managers who are subject to recognized supervision.  Foreign 
collective investment schemes can be distributed  publicly in Switzerland with SFBC approval;  a 
representative agent resident in Switzerland and lic ensed by the SFBC must be appointed for this 
purpose. 
92. The supervision of Switzerland's financial sector  has been under review for a number of years, 
and various reform projec ts in financial market regulation are under way.47  The most important project 
is the establishment of a unified and independent financial market supervisory authority (FINMA).  
Under this initiative, the SFBC, the Federal Office of Private Insurance (FOPI), and the MROS will be 
brought together through a Federal Act on Financial Market Supervision.  Under the FINMA, which 
will become operational on 1 January 2009, the dualisti c, indirect supervision model will be retained, 
whereby banks rely mostly on external auditors for supervision.  At the same time, sanctions against 
infringement are to be harmonized, streamlined a nd reinforced.  The authorities indicate that new 
rules on money laundering and financing of terroris m are also under preparation in the light of new 
FATF recommendations.   
Liechtenstein 
93. Most activities in Liechtenstein's financial services subsector are related to asset management.  
The subsector has traditionally benefited from Liec htenstein's political stability, its close ties with 
Switzerland including the currency union, favourable ta x arrangements, and strict bank secrecy.  Bank 
secrecy (Article 14 of the Banking Act) covers all business relations between the bank and its 
customers and is not limited in time.  However, bank secrecy is lifted in criminal cases (such as arms or narcotics trafficking, corruption, terrorism, money laundering, and tax fraud). Liechtenstein's 
                                                     
 
44 Federal Department of Finance (2008a). 
45 RS 954.1;  RS 954.11;  RS 954.193;  and RS 954.195.1. 
46 RS 951.31;  RS 951.311;  and RS 951.312. 
47 For an overview of the various ongoing reform projects and their current status, see FinWeb online 
information, "Legislative action in the financial s ector".  Viewed at:  h ttp://www.finweb.admin.ch/e/ 
reformprojekte/index.php [6 April 2008]. WT/TPR/S/208 Trade Policy Review 
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legislation distinguishes between tax evasion and tax fraud;  the former is the omission to declare 
income or assets to the tax author ities, while the latter is any tax-related fraud, such as the submission 
of forged documents to the authorities.  In the cas e of tax evasion, bank secrecy is upheld, even after a 
request from foreign authorities, as tax evasion is not considered a criminal offence under 
Liechtenstein law.  However, breach of bank clie nt confidentiality by bank employees is a criminal 
offence.   
94. Following several years of stagnation, total assets deposited at Liechtenstein's banks have 
grown strongly since 2004, reaching Sw F 171 billi on in 2007 (Table IV.10).  In addition to the 
15 banks (of which six are foreign owned), ther e are 448 investment undertakings (240 foreign 
owned), 84 authorized trustees, and 277 trust co rporations.  The banking subsector is highly 
concentrated, with three banks accoun ting for 89% of total banking assets. 
Table IV.10 
Liechtenstein banking indicators, 2000-07 
(Sw F million, unless otherwise indicated) 
 No. of banks Balance sheet to tal Net profit Total deposits 
2000 14 36,963.5 549.1 112,679.8 
2001 17 34.788.0 443.8 105,655.7 
2002 17 32,665.4 251.8 96,194.2 
2003 16 34,908.3 331.8 103,466.9 
2004 15 34,205.2 423.6 106,988.9 
2005 15 38,175.6 742.9 128,718.7 
2006 15 43,377.0 626.9 160,925.1 
2007 15 49,694.3 721.7 171,447.9 
Source: Amt für Volkswirtschaft  (2008), Statistiches Jahrbuch 2007/2008 ;  and information provide d by the Liechtenstein 
 authorities.  
95. As a result of Liechtenstein's participation in  the EEA, all its banking, securities, insurance, 
and accounting legislation is based on EC legislati on, although financial in stitutions (mainly banks) 
are also required to meet the accounting rules of the Swiss Federal Banking Commission due to the monetary union between both countries. 
96. The Banking Act of 1992 and the corresponding Banking Ordinance, as amended, are the 
main legal instruments governing the banking subsector and investment firms.
48  The Financial 
Market Authority (FMA), established in January  2005, is responsible for supervising banks, 
investment firms, investment undertakings, trustees,  lawyers, accountants, and auditors.  Banks and 
investment firms require a licence from the FMA in order to commence operations and may only take the legal form of limited companies (Aktiengesellschaft).
49  The head offices and the principal 
management must be domiciled in Liechtenstein.   The minimum required fully paid-up capital is 
Sw F 10 million for banks and Sw F 1.5 million (or the equivalent in euros or U.S. dollars) for 
investment firms, but, in practice, the FMA requi res Sw F 20 million for banks  and Sw F 3 million for 
investment firms. The members of the board of  directors may have their domicile outside of 
Liechtenstein as long as they fulfil the obligations of their functions;  they must be duly authorized to 
fully represent their company.50 
                                                      
48 LLG 1992, No. 108, as amended;  and LLG 1994, No. 22, as amended. 
49 Exceptions may be granted by the FMA .  
50 Banks are obliged to adopt a dual management structure, with a board of non-executive directors and 
a management board; internal auditors, reporting directly to the board of directors, must also be appointed. Switzerland and Liechtenstein WT/TPR/S/208 
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97. The establishment of a branch or subsidiary of a non-EEA bank or investment firm also 
requires a licence.  In addition to satisfying the aforementioned requirements, the institution must be 
subject to home consolidated supervision comparab le to Liechtenstein s upervision, and the home 
authorities must raise no objections.  A foreign in stitution wishing to establish a representation in 
Liechtenstein requires a licence issued by the FMA;  this is granted if it is supervised in its home 
country (consolidated supervision in the case of a group) in a manner comparable to Liechtenstein 
supervision, the home supervisory authorities do not object to the presence of the bank in Liechtenstein, and the managers of the representa tion "guarantee irreproachable business activities".  
No reciprocity requirements exist.  However, a ccording to the authorities, so far no non-EEA bank 
has requested to establish a branch in Liechtenstein.    
98. Investment firms and undertakings domiciled in an EEA member-state have the right of free 
movement of services for the activities covered by their home licences;  they do not require a Liechtenstein licence.  However, their operations in  Liechtenstein must be supervised by their home 
authorities. The same applies to the establishmen t of branches of EEA financial institutions in 
Liechtenstein.  Suppliers from non-EEA countries must obtain a Liechtenstein licence.  The FMA 
grants the licence if the written application indicates, inter alia , the name of the company in the third 
State and the name of the appointed bank in Liechte nstein;  an up-to-date prospectus and the most 
recent yearly and half-yearly reports of the investment undertaking must also be submitted.  Certification is required from home state authority that the undertaking is subject to consolidated 
supervision equivalent to Liechtenstein supervision. 
99. Investment undertakings are governed by the Law on investment undertakings (IUG).
51  
Before initiating business activities, any investme nt undertaking requires a licence from the FMA.  
Investment undertakings are divided into investme nt funds on a contractual basis (which have the 
legal form of a trusteeship), a nd investment companies (which have the legal form of a limited 
company).  The minimum required fully paid-up capital is Sw F 1 million.  Investment companies must be incorporated as limited liability companies, with fixed or variable capital.  Regardless of 
form, investment undertakings are obliged to have  both a board of directors and a custodian bank, 
which must be registered in Liechtenstein.  Furtherm ore, the principal administration of an investment 
undertaking must be domiciled in Liechtenstein.  Th e marketing of mutual funds may be undertaken 
only by banks, fund management companies, or tr ustees with commercial presence in Liechtenstein.  
There are no secondary markets or underwritings  in Liechtenstein. Liechtenstein banks may 
participate in secondary markets, however, th rough their Swiss operations. Units of foreign 
investment undertakings may be sold in Liechtens tein under licence or, if reciprocity exists, after 
notification. 
100. The Law on asset management (Asset Manage ment Act, AMA) entered into force on 
1 January 2006.  This Act lays the founda tion for asset management companies as new, 
internationally recognized, financial intermediaries . The FMA supervises implementation of the Asset 
Management Act and the related ordinances as we ll as compliance with regulations, and it takes any 
necessary measures. The minimum required fully paid-up capital is Sw F 100.000.  There were 
90 asset management companies in Liechtenstein at the end of 2007. 
101. The Due Diligence Act
52, as amended, and the correspondi ng ordinance are the main legal 
instruments to prevent and combat money launderi ng and financing of terrorism.  Customer due 
diligence is based mainly on the obligation to pr epare and maintain a customer profile, including 
beneficial ownership information, source of funds, a nd purpose of the relationship.  According to the 
                                                      
51 LLG 2005, No. 156. 
52 SR 952.1.  WT/TPR/S/208 Trade Policy Review 
Page 116 
 
 
IMF, "both money laundering and fina ncing of terrorism are criminali zed broadly (though not fully) 
in line with the international standard".53   
102. The Financial Intelligence Unit (FIU), which is part  of the Ministry of Finance, is responsible 
for combating money laundering.  In 2007, the FIU examined 205 cases raising suspicion;  141 led to 
further enquires by the prosecutors office.54  The authorities indicate that Liechtenstein has transposed 
the EC's Second Money Laundering Directive and in itiated implementation of the Third Directive. 
103. Liechtenstein is one of three countries on the OECD List of Uncooperative Tax Havens.  This 
list is part of a framework established by the OECD in 1998 to identify and address the problems 
caused by "harmful tax competition" by both preferentia l tax regimes and "tax havens".  According to 
the OECD, countries placed on the list have not yet made commitments on transparency and effective 
exchange of information.55  According to the authorities, negotiations on an anti-fraud agreement 
regulating cooperation on tax matters with the EC a nd its member states were largely concluded in 
June 2008. 
(b) Insurance 
Switzerland 
104. With the world's highest average per capita premium volume (over Sw F 7,000 per year), 
Switzerland benefits from an unusually high degr ee of insurance cover taken on by national 
consumers, while internationally the industry is particularly strong in the field of reinsurance.  As at 
June 2008, there were 213 companies offering insu rance services:  117 non-life insurers (78 Swiss, 
39 foreign), 26 companies offering lif e-insurance (22 Swiss, 4 foreign);  26 reinsurance companies;  
and 44 captives (self-insurers).   
105. Insurance activities in Switzerland are governed  by the Insurance Surveillance Law (LSA, 
RS 961.01), the Insurance Contract Law (LTA, RS  221.229.1), and complementary ordinances.  
Revisions of both laws entered into force in January 2006 with a view to strengthening solvency requirements and improving consumer protection and insurance supervision.  The Federal Office of 
Private Insurance (FOP I) is responsible for supervision of the in surance subsector (with the exception of 
compulsory health and accident insu rance);  this task will be taken over by the FINMA in January 2009.  
The supervision of compulsory so cial insurance is under the respons ibility of the Federal Social 
Insurance Office (FSIO), while SECO is in charge of supervising the unemployment insurance, and 
the Swiss Federal Office of Public Health is r esponsible for supervising all matters concerning 
sickness and accident insurance.  
106. Insurers with their principal office in Switzerland require approval by FOPI before 
commencing business;  foreign companies whose onl y business in Switzerland is reinsurance are 
exempted and are not subject to FOPI supervision;  these companies are supervised by their respective 
home country jurisdiction.  Each class of insuranc e activity requires separate approval.  Composite 
life, non-life, and non-insurance-re lated operations are not allowed.   There is a public monopoly on 
fire and natural damage insurance (on buildings) in 19 cantons.  As part of its social security system, 
Switzerland maintains a monopoly on accident a nd occupational disease insurance in certain 
                                                     
 
53 IMF (2008a).  
54 Financial Intelligence Unit des Fürstentums Liechtenstein (2008). 
55 For further information, see OECD online information, "List of Unco-coperation Tax Hevens".  
Viewed at:  http://www.oecd.org/document/57/0,3343,de_2649_37427_30578809_1_1_1_37427,00.html [16 April 2008]. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 117 
 
 
categories of industries exposed to higher risks,  such as construction, forestry, and certain 
transportation services.56 
107. Minimum fully paid-up capital requirements range  from Sw F 3 million to Sw F 8 million for 
non-life insurers;  from Sw F 5 to 12 million fo r life insurers;  and from Sw F 3 million to 
Sw F 10 million for reinsurance companies.  Mi nimum capital requirements are based on the class 
with the highest risk amount.  Foreign-owned insu rance companies must have a representative with 
residence in Switzerland;  this can be either a board  member or a director.  To cover costs and losses 
in the initial years of operation, an organizational asset fund must be formed, equal to between 20% 
and 50% of minimum capital, and av ailable at short notice.  Furthermore, class-specific levels of 
reserves must be available.57  
108. As a general rule, cross-border supply of insura nce services is not allowed.  However,     
cross-border supply is allowed for risks related to in ternational transport, war, and any risk located 
outside Switzerland.  Representative offices may not engage in business or act as agents.  Foreign 
insurers establishing in Switzerland must have been in  operation for at least three years.  The manager 
of a foreign insurance company must be domiciled in Switzerland and, apart from the organizational 
fund, the branch must have unrestricted access to as sets equal to 50% (for non- life insurance) or 100% 
(for life insurers) of its minimum guarantee fund.  
109. The 1989 bilateral agreement granting EC non- life insurers the right of establishment in 
Switzerland (on a reciprocal basis) has made their regulations somewhat less restrictive than for non-
EC companies.  In particular, in contrast with ot her foreign non-life insurers, EC non-life insurers are 
not required to deposit part of their assets with  the SNB.  Cooperation between the supervision 
authorities of Switzerland and Liechtenstein is regulat ed by a bilateral agreement on direct insurance 
and insurance brokerage.58 
110. Basic sickness and health insurance is compul sory for all residents and can be provided by 
either recognized non-profit health organizations or private insurance compani es; it covers sickness, 
maternity and accident (if not covered by acci dent and occupational sickness insurance).59  Optional 
insurance may also be purchased, but this falls under private insurance law.  All insurers offering the 
basic sickness insurance scheme are obliged to pr ovide identical services, which are defined by law as 
"effective, appropriate, and efficient";  apart from pharmaceuticals, there is no specific list of benefits for insured persons.  Each person may freely choose an y health insurer;  the latter must not refuse 
insurance or impose any reservations or qualifying period.
60  Under the Sickness Insurance Act, 
insurance companies must offer a uniform premium within each canton, without consideration of the 
age of new insured entrants.  The insurer may only distinguish three categories of premiums within the canton and allow reduced premiums to children and young people in education (between 18 and 25 years).  Under the Act, the Confederation and th e cantons subsidize sickness insurance premiums 
for persons with low income.  The financial contri bution from the Confederation is allocated to the 
cantons according to their population, their respect ive financial capacities, and the amount of the 
premiums.  The federal contribution corresponds to 7. 5% of the gross cost of the compulsory sickness 
insurance. All other complement ary insurance services are regulat ed by private laws under the 
                                                     
 
56 The Federal Law on accident insurance (RS 83 2.20) is the legal foundation for the national 
workplace accident insurance.  
57 WTO document, GATS/SC/83/Suppl.4. 
58 RS 0.961.514. 
59 Foreign insurance companies are allowed to invest in  real estate up to the value of technical reserves 
required.   
60 Compulsory health insurance is based on the Federal law on health insurance of 18 March 1994, in 
force from 1 January 1996. WT/TPR/S/208 Trade Policy Review 
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Insurance Contract Law.  In order to participat e in the basic sickness in surance scheme, sickness 
insurance suppliers must be organized as an associat ion, mutual association, foundation or joint-stock 
company without a commercial objective. 
111. Social security consists of old age and su rviving spouse pension, disability insurance, 
unemployment insurance, and loss of earnings be nefit and workplace accident and occupational 
sickness insurance.  There are three pillars:  the old-age and survivin g spouse, and disability 
insurance61, a highly redistributive public scheme, which is compulsory for all persons living or 
working in Switzerland;  an occupational pension scheme that is compulsory for employees with an annual income exceeding Sw F 19,890
62 and optional for self-employed persons (it is designed to 
enable the insured to maintain current living sta ndards after retirement);  and a third pillar consisting 
of individual savings.  Premiums are set by law.  Life insurance dominates the provision of old-age pensions under the second pillar of the pension system  (obligatory private provision) and the third pillar 
(voluntary old-age savings). 
112. Insurance services are exempt from VAT.  A withholding tax of 8% is levied on settlements 
from life insurance or 15% on private annuity insuran ce.  The insurance premiums tax is a stamp duty 
levied on certain insurance premiums at a standard ra te of 5%;  life insurance premiums are taxed at a 
reduced rate of 2.5%. 
Liechtenstein 
113. At end 2007, there were 37 insurance undertak ings operating in Liechtenstein (13 non-life 
insurance, 19 life insurance and five reinsuranc e companies) (Table IV.11).  Gross premiums 
amounted to nearly Sw F 6.9 billion in 2007, 96 % of which in life insurance.  Total capital 
investments reached Sw F 22.3 billion in 2007, 96% in  life insurance and 3% in reinsurance.  Eleven 
of the 37 companies (six non-life and five reinsura nce) operated as captives.  In addition, 26 foreign 
insurance companies (25 Swiss, 1 EC) have establi shed branches in Liechtenstein.  By end 2007, 
over 270 EEA and Swiss insurance undertakings had re gistered their intention to provide cross-border 
insurance services, although these undertakings very rarely become active. 
Table IV.11 
Insurance companies in Liechtenstein, 2002-07 
(Sw F million, unless otherwise indicated) 
 2002 2003 2004 2005 2006 2007 
Gross premiums written  670 1,480 2,560 4, 200 6,810 6,898 
Investment assets  2,350 3,730 6,610 10,210 16,380 22,310 
Equity  281 475 444 437 598 689 
No. of enterprises 21 23 28 31 35 37 
No. of employees 130 122 152 165 206 311 
Source:  Information provided by the Liechtenstein authorities.  
114. Insurance activities in Liechte nstein are governed by the Insurance Supervision Law63 and the 
associated ordinance.64  A licence is required for each insuran ce branch.  Insurance undertakings are 
supervised by the Financial Market Authority.  Un dertakings must adopt the legal form of a limited 
company, Societas Europeas, a cooperative, or Eu ropean Cooperative (SCE).  Aside from minimum 
capital requirements (Sw F 5 million to Sw F 10 million for both life insurers and reinsurance 
                                                      
61 Assurance-vieillesse et survivants/Assurance-invalidité , AVS/AI. 
62 The threshold was reduced from Sw F 25,320 in January 2005 to Sw F 19,350 in January 2006. 
63 LLG 1996, No. 23. 
64 LLG 1997, No. 85, in force from 24 January 1997. Switzerland and Liechtenstein WT/TPR/S/208 
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companies;  and Sw F 0.5 million to Sw F 1 million for each class of non-life insurance), an 
organizational fund for formation costs or excep tional business expansion am ounting to 20-50% of 
the minimum capital is required.  Exact mini mum capital requirements depend on the company's 
business plan. 
115. Insurance companies are forbidden from unde rtaking non-insurance activities.  The main 
administration of the company (including accounting) must be situated in Liechtenstein.  Undertakings domiciled and licensed in an EEA country may conduct direct insurance business in 
Liechtenstein without a Liechtenstein licence, as the single-licence principle has applies since the 
country's accession to the EEA.  A company may offe r either life or non-life insurance;  insurance 
undertakings engaged in life insurance  may not be  active in any other branches of insurance apart 
from supplementary insurance against accide ntal death, sickness, and invalidity. 
116. Cross-border provision of insurance services by EEA companies is possible, provided the 
insurance undertakings have the n ecessary solvency margin.  On the b asis of a bilateral agreement in 
force since 1998, insurance undertakings domiciled in Switzerland or Liechtenstein are granted freedom of establishment and operation in the othe r country.  This agreement was extended in 2007 to 
allow insurance intermediaries to engage in  cross-border activities.  Other non-EEA-country 
insurance undertakings require authorization in order to operate in Liechtenste in;  they must establish 
an agency or a branch office in Liechtenstein and have assets availabl e in Liechtenstein equivalent to 
at least half the guarantee fund.  Insurance undertaki ngs with their head office in a foreign country 
and engaged solely in reinsurance activities are exempt from Liechtenstein supervision.  
117. Liechtenstein imposes a special tax on foreign insurance companies;  the rates are 1% on 
premium receipts from life and pension insurance, a nd 2% on all other premium receipts.  Insurance 
services are not liable to VAT. 
118. Basic health insurance is compulsory for all persons residing (includi ng foreigners) and/or 
working in Liechtenstein.  It can only be provi ded by authorized non-profit health insurance 
companies and covers sickness, maternity, and accident risks (if not covered by compulsory 
workplace accident insurance) through benefits in cash and in kind as defined by law.  All benefits in 
kind are required to be "effective, appropriate and efficient".  Each  insured person may choose any of 
presently four recognized health insurers;  these do no t have the option to refuse insurance, regardless 
of age or state of health.  Under the Health Insu rance Act, insurance companies must offer a uniform 
premium for adults, which must be accepted by th e Office for Health, and a reduced premium (half) 
for young people (17-20 years);  the companies  ma y not ask for a premium for children (0-16 years).  
Under the Act, the state subsidizes insurance premiums  in various direct and indirect ways, e.g. by 
contributions to the costs of medical care.  The r ecognized insurers are supervised by the Office for 
Health.  Optional insurance may be purchased outsi de the scope of the compulsory scheme.   
119. Under the compulsory accident insurance, all em ployees are covered by an insurance contract 
that must be concluded by every employer against the risks of accidents at work, leisure accidents, 
and occupational sickness.  The premiums are imposed  by the Government according to different risk 
classifications depending on the type of activity.  Th e scope for competition among insurers is limited 
to administration costs.  All compulsory accident insu rers are registered in a list and supervised by the 
Office for Health.  
120. Social security also consists of old age a nd widowers' pension, disability insurance, and 
unemployment insurance. There ar e three pillars of old age and widower's pension and disability 
insurance: the compulsory scheme for all pers ons living or working in Liechtenstein;  the 
occupational pension scheme that is compulso ry for employed persons earning more than WT/TPR/S/208 Trade Policy Review 
Page 120 
 
 
Sw F 19,890 per year, and designed to enable the in sured person to maintain his/her living standards 
after retirement;  and a pillar that consists of i ndividual saving measures.  The first pillar is operated 
by a public establishment.  The second and the third pillars, which are operated by private insurers, 
are governed by the Financial Market Authority, wh ich took over the supervision of the insurance 
subsector from the Insurance Supervisor y Authority in January 2005.     
(iii) Telecommunications  
(a) Switzerland 
121. Teledensity has remained high in Switzerla nd, with mobile connections increasingly 
substituting for fixed telephone lines (Table IV.12).  Switzerland had one of the highest Internet and 
broadband penetration rates in Europe at ove r 30% in 2007, ranking third among OECD countries.65   
Table IV.12 
Swiss main telecom indicators, 2000-07 
 2000 2001 2002 2003 2004 2005 2006 2007 
ISDN subscribers  726,341 860,801 913,480 927,000 928,888 907,334 863,138 820,000a 
Main (fixed) telephone lines 
in operation  5,235,733 5,383,483 5,387,568 5,323,452 5,253,450 5,149,736 5,039,600 5,000,000 
Main (fixed) telephone 
lines/100 inhabitants  72.6 74.3 74.0 72.3 70.8 69.0 69.4 66.81 
Mobile cellular telephone 
subscribers (digital)  4,638,519 5,275,791 5,736,303 6,189,000 6,275,000 6,834,000 7,418,000 8,096,000a 
Mobile cellular telephone 
subscribers/100 inhabitants  64.3 72.8 78.8 84.0 84.6 91.6 98.8 106.6a 
Internet subscribers  1,665,428 2,093,162 2,337,048 2,730,622 2,250,434 2,585,277 2,875,128 2,950,000 
a Data from OFCOM.  
Source: International Telecomm unication Union (2007), ITU World Telecommunication/ICT Indicators Database 2007 ;  
 and information provided by  the Swiss authorities.   
122. Switzerland's initial commitments on basic te lecommunications largely reflect the monopoly 
situation that prevailed prior to the 1997 liberalization.66  Following the passage of the 1997 
Telecommunications Law (LTC)67, Switzerland communicated revised commitments to the WTO.68   
123. The LTC, last amended in 2007, and the accompanying ordinance ( Ordonnance sur les 
services de telecommunications , OST) are the main legal instruments for Switzerland's 
telecommunication subsector.  The stated objective of  the LTC is to ensure private and business users 
the availability of quality and affordable services, both nationally and internationally.  The law also 
aims to guarantee universal services and efficient competition. 
124. The Federal Communications Commission (ComCo m), an independent extra-parliamentary 
commission, is responsible for regulating telecoms  market, including allocation of spectrum licences 
(e.g. GSM or UMTS) through open tendering, the designation of a universal service provider (by 
issuing a licence for supply of universal services), dispute settlement regarding interconnection and 
local loop unbundling, and for the approval of nati onal numbering plans.  In April 2007, a general 
                                                      
65 OECD online information, "Penetration:  Broadband subscribers per 100 inhabitants 
(December 2007)".  Viewed at:  http://www.oecd.o rg/dataoecd/21/35/39574709 .xls [26 March 2008]. 
66 These commitments are contained in WTO document GATS/SC/83/Suppl.3, 11 April 1997.  See also 
WTO documents S/C/N/271-296, 26-27 February 2004, on technical issues. 
67 RS 784.10. 
68 WTO document GATS/SC/83/Suppl.3/Rev.1, 28 January 1998. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 121 
 
 
licensing requirement for telecoms service providers was replaced by a general obligation to register. 
For spectrum use, however, the licence requirement remains unchanged.  The Federal Office of Communications (OFCOM) under the Federal Departme nt of Environment, Transport, Energy, and 
Communication (DETEC), acts as secretariat to ComCom.  Some tasks of minor regulatory 
importance (licensing for private radio applications ) have been delegated to OFCOM by a decree of 
ComCom.   
125. Articles 16 and 17 of the LTC provide for the av ailability of reliable universal services at 
affordable prices. Universal services comprise : public telephony (connection and transmission of 
speech and data);  access to emergency call services  and localization of these calls;  an adequate 
network of public telephone kiosks;  access to directories of subscribers in Switzerland;  and special 
services for the hard of hearing and visually im paired.  The Federal Council also determines the 
minimum quality criteria that the universal service provider must fulfil.  Following a ComCom public 
invitation to tender for the universal service licence,  Swisscom is the only universal service provider 
until end 2017.
69  The new licence obliges Swisscom to provi de a broadband Intern et connection in 
addition to analogue and digital te lephone connections.  The directory enquiry service, call diversion, 
and advice of charge are no longer  part of the universal service. 
126. Telecommunications services providers with a dominant market position (including suppliers 
of part of the universal services) must provi de interconnection to other suppliers without 
discrimination and in accordance with transparent a nd cost-related principles.  Interconnection prices 
of a market-dominant provider are regulated on the basis of the "long-run incremental costs" (LRIC) 
method applied by most European countries.  Domi nant providers must publish a basic offer every 
year.  In interconnection disputes, ComCom has to check if an operator is in a dominant position.  In 
such cases, the Federal Competition Commission (ComCo) must provide an opinion to ComCom.  The dominance of a provider is analysed accord ing to the rules set by the Cartels Law. 
127. Providers of telecommunications services are re quired to ensure portability of numbers and 
freedom of choice in the selection of suppliers of  national and internationa l connections. Under the 
Swiss interconnection regime, suppliers  interested in concluding an in terconnection contract must first 
negotiate the terms. If, after a three-month period,  the negotiations are unsuccessful, the parties may 
then appeal to ComCom, which, on the basis of OFCOM's recommendations, will settle the dispute 
and fix the conditions for interconnection. As estab lished by the LTC, interconnection prices must be 
cost-oriented only in the presence of market domin ance;  in the absence of market dominance, they 
must follow market standards.  In the latter case, appeal to ComC om is only possible to ensure 
interoperability of services forming part of th e universal service.  Cross-subsidization of 
telecommunications services is not legally prohibited. 
128. As established by Article 22 of the OST, th e Federal Council fixes upper price limits for 
telephone connection for users, and national calls.  From 1 January 2008, the provisions on universal 
services guarantee everyone's right to an analogue connection for a maximum of Sw F 23.45 per 
month (excl. VAT) or a digital connection (ISDN or  a comparable technology) for Sw F 40.00 per 
month, or a broadband internet connection for Sw F 69.00 per month.  The upper price limits for 
national telephone calls were set at Sw F 0.075 per minute (excludi ng VAT).  In order to finance 
uncovered costs of universal services, OFCOM ma y charge a fee on other telecommunications 
services but, according to the authorities,  this has never been imposed  
                                                     
 
69 For further information on the terms and conditions of the concession, see ComCom online 
information, "Universal service licence for Swissc om".  Viewed at:  http://www.comcom.admin.ch/ 
aktuell/00429/00457/00560/index.html?lang=en&msg-id=13239 [20 March 2008]. WT/TPR/S/208 Trade Policy Review 
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129. An amendment to the LTC, opening the way for th e liberalization of the "last mile", entered 
into force in April 2007.  Unbundling of the local  loop is to be achieved by offering competing 
suppliers two options to have access to the last m ile. Under the first option, the supplier may operate 
his own facilities for broadband and other services on the premises of the dominant supplier.  The 
copper cable between the customer and the connec tion centre of the dominant supplier is simply 
switched to the new supplier, who provides his/ her services exclusively to the customer (full 
unbundling).  Under the second option, the comp eting supplier may offer broadband services using 
the dominant supplier's equipment for a maximum peri od of four years, with the latter providing all 
other services.  During the four-year period, the competing supplier must install the necessary 
equipment to be able to offer the other services (bitstream access).  Under both options, prices 
between the competing and the dominant suppliers are freely negotiated.70  In case of disagreement, 
the ComCom determines a price based on cost. 71 
130. The LTC allows OFCOM to prohibit comp anies established abroad to provide 
telecommunication services in Switzerland unless similar rights are granted to Swiss companies in the home country of the company.  However, this provi sion has never been used.  The revised LTC also 
provides for the creation of a conciliation body to resolve simply and quickly any disputes between 
users and providers of telecom services;  the body be came operational in July 2008.  It also bans the 
mass mailing of unsolicited adver tising messages (spamming).   
131. Swisscom has remained the largest company in  Switzerland's telecom subsector and is the 
market leader in every telecoms ac tivity either under its own brand or through its subsidiaries.  With a 
staff of some 19,800, it generated a turnover of some Sw F 11.1 billion in 2007.  As at June 2008, the 
Federal Government held 52% of Swisscom's sh ares, down from 66% in 2005.  Plans to fully 
privatize Swisscom were rejected by the National C ouncil in 2006.  No privileges are associated with 
the state ownership.  In January 2007, Swisscom' s market shares were 58.1% for fixed telephony, 
62.3% for mobile telephony, and 42.3% for internet access lines.  Since April 2007, access to leased 
lines is regulated by ComCom.   
132. Since the last TPR of Switzerland and Liech tenstein in 2004, telecommunications has 
continued to be an important area of activity of th e Price Controller (Chapter III(4)(iii)).  In 2007, the 
Price Controller advised the Federal Council to expl ore the possibility of a bilateral agreement with 
the EC with a view to reducing mobile roaming tariffs.   
133. In cases relating to telecommunications services, the Competition Commission operates in 
close cooperation with OFCOM and ComCom (Chapter  III(4)(iii)).  Market dominance is examined 
by ComCom on a case-by-case basis as part of interconnection procedures.  In February 2007, the Competition Commission decided that Swisscom Mobile had abused its dominant market position and imposed a fine of over Sw F 333 million
72, and in September 2007, decided that Swisscom had abused 
its dominant position in the area of broadband internet access.   
                                                      
70 While the amendment to the LTC is largely based on the EC's legal framework, this provision giving 
primacy to negotiations is in contrast to EC legislation. 
71 As at August 2008, the price of local loop unbundling (the first option) is being evaluated by 
ComCom;  a decision is expected by autumn 2008.  Th e implementation of bitstream access (the second option) 
is blocked in legal procedures. ComCom decided in Autumn 2007 that Swisscom is dominant regarding the provision of bitstream access.  However, Swisscom, filed a recourse against this deci sion.  The case is pending 
before the Federal Administrative Court. 
72 The final decision is pending (June 2008) as Swisscom Mobile lodged a complaint before the Federal 
Court. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 123 
 
 
(b) Liechtenstein 
134. Since its last TPR, Liechtenstein has implemented various EC directives on 
telecommunications.73  As a result, a new Communication Act, which entered into force in June 2006, 
eliminated the licence system.  All activities in th e area of electronic communication are licence-free;  
a notification to the Liechtenstein Office for Comm unications, the national regulatory authority, is 
required.   
135. Since January 2007, state-owned Liechtenstein ische Kraftwerke (LKW) has owned the major 
part of the communication network.  Telecom Liechtenstein AG74, which had a turnover of 
Sw F 51.2 million in 2007, is a fully state- owned company providing fixed-line services and 
responsible for network planning, op eration, and maintenance.  Both companies are obliged to make 
their infrastructure available to other enterprises in a neutral, non-discriminatory, and cost-based 
manner.  Interconnection regulations are based on the relevant EC principles.  Neither Telecom 
Liechtenstein AG  nor LKW enjoy any exclusive rights.   
136. Four mobile phone companies were in operati on as at August 2008.  Interconnection charges 
are agreed between operators.  There are some 50% more mobile connections than fixed lines 
(Table IV.13).  Portability of numbers is not yet ensured.  A study commissioned by the Office for 
Communications in 2007 on Liechtenstein's mobile telephone market concluded that competition was 
insufficient as barriers to entry were high and est ablished companies had significant market power, all 
of which had led to higher-than-necessary prices.75  A market analysis of Liechtenstein's 
telecommunication market is ongoing (August 2008) to  determine whether any of the fixed net or 
mobile companies have significant market power, which might require regulatory measures. 
Table IV.13 
Liechtenstein main telecom indicators, 2006 
 2006 
ISDN subscribers 16,162 
Main (fixed) telephone lines in operation 23,071 
Main (fixed) telephone lines/100 inhabitants 70a 
Mobile cellular telephone subscribers (digital) 34,055 
Mobile cellular telephone su bscribers/100 inhabitants 98a 
Internet subscribers 9,170b  
a Total inhabitants:  35,000. 
b ADSL + dial-up. 
Source:   Office for Communications.  
(iv) Postal services 
(a) Switzerland 
137. The Federal Law on postal services of 1997 is  the legal basis for postal services in 
Switzerland.76  It divides the Swiss postal services market into three segments:  "reserved" services, 
                                                      
73 These are:  the Access Directive (2002/19/EC);  the Authorization Directive (2002/20/EC);  the 
Framework Directive (2002/21/EC);  the Universal Service Directive (2002/22/EC);  and the e-Privacy 
Directive (2002/58/EC). 
74 The company was called Liechtenstein TeleNet AG until 2007.  Liechtenstein Telecom AG was the 
result of the merger of Liechtenstein TeleNet AG and its subsidiary Telecom FL AG at end-2007. 
75 Amt für Kommunikation (2007). 
76 The law (RS 783.0) was amended in 2000, 2003, 2006, and 2007. WT/TPR/S/208 Trade Policy Review 
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offered exclusively by Swiss Post as a monopol y under its universal services obligations;  non-
reserved services, also offered by Swiss Post unde r its universal services obligations, but in 
competition with other suppliers;  and liberalized services.  Reserved services consist of domestic and 
incoming international letters, not exceeding 100 g.77  The universal services obligations defined in 
the Federal Law on postal services include postal deliveri es on at least five days a week in all parts of 
Switzerland, "in good quality and at reasonable prices".  Compliance with the universal service 
obligations is monitored by the Postal Regulation Au thority (PostReg), established in January 2004.  
Full market opening from April 2012 is under consideration. 
138. Non-reserved services, which can also be offe red by licensed private operators, consist of 
outbound international services for letters and all postal services (domestic and international) for 
packages up to 20 kg.  Licences, which are provided by the Department of the Environment, Transport, Energy, and Communications accordi ng to the revised Ordinance on postal services
78, are 
required if sales exceed Sw F 100,000.  In February 2008, licences had been granted to 27 companies.  
All other services can be provided freely by private,  including foreign, suppliers, and are not subject 
to monopoly rights or licensing.   
139. Swiss Post is fully owned and controlled by the Confederation.  It employs some 41,000 staff, 
making it the second-largest employer in Switzerland , with a network of 2,469 post offices in 2008 
(down from about 3,500 in 2000).  Swiss Post receives an annual subsidy from the Federal 
Government for the delivery of newspapers with  subscription;  the subsidy was reduced from 
Sw F 80 million to Sw F 30 million in January 2008 .  In addition to providing postal services, Swiss 
Post manages 3.3 million deposit account s and is thus a significant participant in the financial services 
market (see also Chapter IV(5)(ii)). 
(b) Liechtenstein 
140. Postal services are supplied by Liechtensteinisch e Post AG, a majority state-owned company.  
In line with the Post Law of 1999, amended in 2004, and EC directive (2002/39/EC) on postal 
services, it enjoys exclusive rights over letters of  up to 50 g (up to 100 g until December 2005).  All 
other postal services have been fully liberalized, and Liechtensteinische Post AG provides them in 
competition with several private operators, mostly from Switzerland. 
(v) Transport 
(a) Air transport 
Switzerland 
141. Switzerland's GATS commitments on air transport cover aircraft repair and maintenance 
services.  In particular, Switzerland has bound meas ures affecting cross-border supply, consumption 
abroad, and commercial presence for aircraft rented w ithout operators, i.e. dry leasing, excluding for 
companies flying on regular schedule or on charter.  Switzerland has also bound measures affecting commercial presence for cargo handling services.  Its MFN exemptions under Article II of the GATS 
cover the sale and marketing of air transport services, and CRS services.
79 
142. The Swiss legal framework for civil aviation consists of domestic law and international 
agreements;  the latter are of particular importanc e given the small size of the country.  The main 
                                                      
77 Before April 2006, the threshold was 1 kg. 
78 RS. 783.01, in force since 1 January 2004. 
79 WTO document GATS/EL/83, 15 April 1994. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 125 
 
 
domestic law is the Federal Law on aviation80, together with its implementing ordinances.81  Policy 
implementation and enforcement were  mainly under the responsibility of  the Federal Office of Civil 
Aviation (OFAC);  its tasks include licensing and re gistration, drafting legislation, and negotiating 
international agreements on civil aviation.  The OFAC operates under the Federal Department for the 
Environment, Transport, Energy and Communications.   
143. The agreement between the European Comm unity and the Swiss Confederation on Air 
Transport, and the revised EFTA Convention, which both entered into force in June 2002, prohibit all 
discrimination based on nationality between Swiss and EC/EFTA air companies that are based and 
licensed in Switzerland or EC/EFTA.  Accordingly,  Switzerland has extended national treatment to 
EC and EFTA firms.  Carriers incorporated in Sw itzerland, or in any EC/EFTA country, may supply 
scheduled and non-scheduled services corresponding to  third and fourth freedom rights between the 
respective country and Switzerland.  Since June 2004, Swiss carriers have also been allowed to collect 
passengers or cargo between any points in different countries within the EC (i.e. seventh freedom).  
However, the agreement does not allow cabotage (e ighth freedom);  negotiations on these additional 
rights are expected to start by mid-2009, taking into account the results of an ongoing impact study on 
the consequences of the liberalization.  The agreement prohibits , on a reciprocal basis,                   
anti-competitive practices, including abuse of dominan t positions, except those that affect only the 
internal territory of one party a nd are covered by domestic law.  
144. All companies that provide commercial air transport services to, from, or within Switzerland 
must have an operating permit and an Air Operator  Certificate (AOC), both granted by the OFAC.  
Based on EC technical regulations, the AOC, inter alia,  testifies that the company has sufficient 
financial means to maintain flights for at least 24 months.  Once they possess an operating permit and an AOC, companies may apply to the OFAC for li cences to serve particular routes.  The OFAC's 
decision to grant both operating permits and li cences is based partly on ownership and control 
provisions.  Domestic routes are in principle reserved for "Swiss-based carriers" as defined below.  However, the OFAC has discretion to admit fore ign carriers, based on common interest.  The few 
requests that have been presented were for taxi fli ghts, and were approved.  For international routes, 
the OFAC admits Swiss or foreign carriers, in acco rdance with the relevant bilateral agreements.   
145. The Federal Council has authority to decide th e extent to which a commercial air transport 
company must be owned or effectively controlled by  Swiss citizens to be considered as Swiss-based 
(LA, Art.27).  As stipulated in the Ordinan ce on air navigation (OSAv), the company must be 
registered in Switzerland, and effectively controlle d and majority-owned by either:  Swiss companies 
or nationals;  foreigners residing in Switzerland; or  foreign companies associated with Swiss citizens 
or companies by virtue of international accord s (such as the agreement with the EC described 
below).
82  Crews engaged in domestic air passenger and freight services must be EC or EFTA 
nationals or Swiss residents.  Crews from third countries can be employed if the SECO deems their 
employment necessary, which normally is the case, according to the authorities.  
146. Switzerland has three national (Zurich, Geneva, and Basel) and ten regional airports.  Total 
passengers reached 33.5 million in 2006, up from 28.2 million in 2002;  Zurich accounts for nearly 
58% of all passengers.  The canton of Zurich holds a 33% stake in Zurich airport, while Geneva 
airport is fully owned by the canton of Geneva.83  According to the authoriti es, no state subsidies are 
                                                      
80 RS 748.0. 
81 The main implementing ordinance is RS 748.01. 
82 For limited companies, over half of the voting shares must be nominal, and be owned by Swiss 
residents or companies, or by foreig ners who are associated with them by virtue of international accords. 
83 Basel-Mulhouse-Freiburg is a bi-national airpor t, owned by the Swiss authorities (Confederation and 
Cantons) and the French Government. WT/TPR/S/208 Trade Policy Review 
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granted to the airports.  Swiss International Air Li nes is Switzerland's largest airline;  since 2005, it 
has been fully owned by Lufthansa.  In 2007, it carried 12.2 million passenge rs and had a turnover of 
Sw F 4,895 million.   
147. Passengers arrivals and departures increased fro m 27.9 million in 2004 to 36.3 million in 
2007.  Airport services are provided mostly by i ndependent companies.  The revenues from airport 
charges (weight-, noise-, and emission-related landi ng charges, passenger charges, parking charges, 
and handling charges) are used to finance all airpor t-related expenses.  Airport charges are subject to 
the general supervision of the Federal Office for Ci vil Aviation and the Price Controller.  According 
to the authorities, the regulations on ground hand ling are based on the relevant EC directive.84  Air 
carriers are not required to use domes tic repair and maintenance facilities.85 
148. Skyguide, a state-owned company, is responsible  for managing and monitoring civil air traffic 
in Swiss airspace, at Zurich, Geneva, Berne, a nd Lugano airports (but not EuroAirport Basel-
Mulhouse-Freiburg), as well as it has been assigned in adjoining non-Swiss airspace.86  Its activities 
are mainly financed by fees. Switzerland pa rticipates in the EC's Single European Sky  project, but is 
not part of the European Common Aviation Area (ECCA). 
149. Since 2002, the Swiss regulations on slot alloca tion have been harmonized with the relevant 
EC regulation.87  Slots are required for the Zurich and Ge neva airports and are allocated by Slot 
Coordination Switzerland, an indepe ndent, non-profit organization supervised by the OFAC.  Sales of 
slots are not permitted.   
150. International traffic rights for transport of passenger and freight from non-EC/EEA countries 
are generally governed by bilateral agreements a nd contingent upon reciprocity provisions. Some 
145 agreements are in place (June 2008).  In order to  carry out operations in Switzerland, a foreign 
carrier must have been designated by its home c ountry.  Agreements may be of a single-designation 
type, allowing only for one carrier per signatory, or multiple-designation.  Most agreements are based 
on capacity sharing, and specify frequency and rates;  recent exceptions are the "open sky" agreements with the United States and Pakistan.
88  The authorities indicate that Switzerland's current 
policy is to seek liberal agreements, including on ownership and control. 
151. Code-share arrangements between EC carriers and carriers from third countries that have 
implications for the Swiss market require authori zation from OFAC.  This is granted according to the 
provisions of the bilateral agreements with the states  concerned, or on the basis of Swiss interests.  
Reciprocal rights for Swiss companies in the State c oncerned are a prerequisite.  No data are available 
on the number of arrangements that have been authorized. 
Liechtenstein   
152. Liechtenstein does not have an airport, but has a privately owned heliport.  It applies the EEA 
rules on civil aviation, which entered into force in  2003.  Under an agreement concluded in 1950, the 
Swiss regulations on civil aviation also apply to Li echtenstein;  this agreem ent was amended in 2003 
to avoid conflict with EEA rules.  Liechtenstein became a member of the European Aviation Safety 
Agency (EASA) in June 2006. 
                                                      
84 RS 748.131.1 refers to  EC Directive No. 96/67. 
85 The applicable regulations are: RS 748.127.2;  RS 748.127.22;  RS 748.127.23;  and RS 748.127.3. 
86 For further information, see Skyguide online information, "About Skyguide".  Viewed at: 
http://www.skyguide.ch/en/AboutSkyguide/. 
87 EC Directive No. 95/93. 
88 RS 0.748.127.193.36 and RS 0.748.127.196.123. Switzerland and Liechtenstein WT/TPR/S/208 
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(b) Overland transport 
153. The supply of international transport services (p assenger and freight) as well as transit traffic 
takes place under bilateral or multilateral agreements a nd is subject to reciprocity provisions.  In the 
WTO, Switzerland and Liechtenstein have maintain ed certain MFN exemptions on road transport 
under Article II of the GATS.   
Switzerland 
154. Some 69% of Switzerland's imports  and about 61% of its exports  are transported by road.  
Resulting from Switzerland's geographic location, a large share of north-south merchandise trade 
transits through the country.  The Federal Office for Transport is the regulatory body for public 
transport; it grants licences and concessions, issues security certificates, and determines the pricing 
policy for access by companies to the rail network.  For regular passenger transport, the concession is 
subject to proof that the service "does not have  any detrimental effect on the national economy".89  In 
practice, no requests for such a concession have been denied in the past ten years.  The concession is 
granted in principle for renewable periods of ten years.  
155. The Constitution obliges the Federal Government to transfer the largest possible share of 
merchandise freight transiting the Alps from road to ra il transport.  This mandate is to be achieved 
through:  (i) the modernization of Switzerland's pub lic transport infrastructure;  (ii) heavy vehicle 
fees;  and (iii) the reform of rail transport with a view to stimulating competition in this subsector. 
156. The modernization of Switzerland's transport infrastructure comprises a number of bigger 
projects, most notably the New Railway Link through the Alps, a project to build faster north-south 
rail links across the Alps by constructing base tunne ls several hundred metres below the level of the 
current tunnels.  Improved connection to the high-speed  rail nets in Germany, Italy, and France is also 
a major target.  Investment in th e railway infrastructure is financed by a special fund for railway 
projects, which is outside the federal budget;  the fund  is mainly financed by the heavy vehicle fee. 
157. The heavy vehicle fee applies on all Swiss a nd foreign vehicles exceeding 3.5 tonnes.  The 
fee varies from Sw F 272 to SwF 369 for a 300 km passage, depending on the vehicles' weight, a 
distance-based component, and on Euro standard vehicle categories.90  The average fee for the 
300 km-passage of a standard 40-tonne vehicle from Basel to Chiasso, for example, is Sw F 325.  
Income from the fee amounted to Sw F 1.49 billion in 2007. 
158. Reform of the Swiss rail system is to be achieved in two steps. The first phase, which began 
in 1999, obliged companies to distinguish tran sport services from transport infrastructure for 
accounting and organizational purposes.  It also established access to the Swiss rail network for all 
companies, against payment.  Access to the Swi ss rail system by foreign undertakings has been 
granted on the basis of bilateral agreements, notab ly the bilateral agreement with the EC on land 
transport.  The second phase of rail reform, for whic h legislation is currently under preparation is 
aimed at increasing interoperability with railway systems of neighbouring countries and reforming 
financial support for the railway system. 
159. The Swiss Federal Railways (SBB) is a joint-stock company fully owned by the 
Confederation;  it remains under the supervision of  the Federal Council.  SBB holds exclusive rights 
over long-distance passenger services.  In exchange  for this privilege, it is assigned specified basic 
                                                      
89 See also Switzerland's commitments in WTO document GATS/SC/83, 15 April 1994. 
90 In contrast to Germany and Austria, where the fee applies on highways only, in Switzerland it 
applies on all types of road. WT/TPR/S/208 Trade Policy Review 
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tasks by the Federal Council, in particular a re gular supply of basic rail transport services throughout 
the country.  The Swiss Confederation and cantons al so provide financial assistance to rail transport 
suppliers for services ordered by the public authoriti es.  The Confederation's total financial support 
amounted to Sw F 2.9 billion in 2007, of which Sw F 1.7 billion was paid to SBB.  In 2006, SBB 
made a profit of Sw F 259 million.  Rail freight  was about 11.8 million tonne-kilometres in 2007 
(about 39% of total tonne-kilometre freight transport) ;  around 72% of total rail freight revenue was 
earned by SBB Cargo. 
160. The agreement between the Swiss Confederati on and the EC on the carriage of goods and 
passengers by rail and road (RS 0.740.72) led to furthe r liberalization of international road transport 
on a bilateral basis.  The agreement allowed grand ca botage (on a reciprocal basis) for Swiss hauliers 
in all EC member states from 2005.91  Bilateral agreements on road passenger and freight transport 
have also been concluded with a number of non-EC states.92   
161. National road transport services are provided mainly  by companies that are majority publicly 
owned (cantons and municipalities) and by PostBus, a subsidiary of Swiss Post. 
Liechtenstein 
162. The Office for Trade and Transport (OTT), estab lished in January 2007,  is responsible for 
regulating the transport subsector.  Liechtenstein does not have any highways but has 108 km of main 
roads and 253 km of side roads, and 9 km of railways.   It has no rail company;  the railway track is 
owned and operated by Austrian Fe deral Railways.  International road transport services for goods 
and passengers are supplied by private companies.  Public transport throughout  the country is offered 
by privately owned Liechtenstein Busanstalt, which receives subsidies for its services.  Liechtenstein 
also applies the Swiss Heavy Vehicle Fee.  Road freight and passenger transport carriers require a permit issued by the OTT:  certain criteria must be met on, inter alia , reliability, financial standing, 
qualification or business establishment.  In addition,  carriers need a special licence issued by the OTT 
for international transport in the EEA.  Liechtens tein is included in most bilateral transport 
agreements concluded by Switzerland.  The agreem ents normally contain a "Liechtenstein clause" 
extending the provisions to Liechtenstein. 
(vi) Tourism 
(a) Switzerland 
163. In 2007, the tourism subsector generated fo reign exchange worth Sw F 14.6 billion 
(Table IV.14), while Swiss tourist spending abro ad amounted to Sw F 11.5 billion.  Grisons and 
Berne received the largest number of tourists, followe d by the Valais and Zurich.  While the largest 
number of tourists come from Germany, the Un ited Kingdom, and the United States, strong increases 
have been recorded for visitors from China and Russia. 
164. At federal level, the main legislation for the tourism subsector comprises:  the Tourism Law 
of 1995, the Law to Promote Innovation and Coopera tion in Tourism of 1997, and the Hotel Law of 
2003.
93  In addition, all cantons except Aargau and Zu rich have their own tourism legislation.  The 
                                                      
91 However, "small cabotage" (cabotage within EC members states or within Switzerland) remains 
prohibited. 
92 Albania, Algeria, Azerbaijan, Belarus, Bosnia-H erzegovina, Croatia,  Georgia, Jordan, Kazakhstan, 
Macedonia (FYR), Moldova, Morocco, Russia, Serbia, Syria, Tunisi a, Turkey, Ukraine, and Uzbekistan. 
93 RS 935.12. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 129 
 
 
"clause du besoin ", which regulated the cantons' licensing of the supply of restaurant services94, has 
been abandoned since 2004, with a grace period of ten years.  It is currently applied only in the canton 
of Basel-Land.  By 2014, the location and operation of restaurants should be fully market determined. Cantonal legislation for tour guides has been revi sed, opening the required t ests to foreigners, who 
may operate independently.  Federal legislation restricts the acquisition of real estate (in Switzerland) 
by non-Swiss persons domiciled abroad and by non-EEA nationals domiciled in Switzerland.
95 
Table IV.14 
Swiss tourism indicators, 2001-07 
 2001 2002 2003 2004 2005 2006 2007 
Arrivals 13,693,664 13,138,936 12,798,902 .. 13,802,796 14,811,349 15,632,542 
Hotel capacity (beds) 264,759 263,449 263,024 .. 274,035 271,591 270,146 
Room occupancy (%) 42.7 41.0 39.8 .. 40.3 42.9 45.8 
Bed occupancy (%) 35.9 34.3 33.4 .. 32.9 35.2 36.9 
Tourism receipts (Sw F million) 11,448 11,286 11,613a 11,941a 12,477a 13,544a 14,623a,b 
.. Not available. 
a Since 2003, figures include consumption expenditure by people granted short-term  residence permits (less than four 
 months). 
b Provisional.  
Source:  Information provided by the Swiss authorities.   
165. Switzerland Tourism, a public corporation, is  in charge of marketing and promotional 
activities;  its annual budget is some Sw F 73 million of which Sw F 46 million comes from the 
federal budget.   Innotour is a programme of the State Secret ariat for Economic Affa irs to improve the 
quality of and promote innovation in Switzerland 's tourism subsector.  Between 2003 and 2007, 
Sw F 28 million were spent on a total of 60 projects in areas such as quality management and reservation systems.  The Swiss Society for Hotel Credit (S ociété suisse de crédit hôtelier), a         
state-owned corporation, provides subprime loans to  small and medium-sized companies investing in 
tourist areas.   
166. Sales of accommodation services are subject to a reduced value-added tax of 3.6%.  Prices in 
the tourism subsector are set freely.  
(b) Liechtenstein 
167. Tourist arrivals and nights spent by tourists in  Liechtenstein have been declining since the 
1980s, but began to increase again in since 2004.  About 35,000 nights were  spent in summer 2007, 
down from some 65,000 in summer 1985.  Winter nights spent fell from over 70,000 in the mid-1980s 
to 58,500 in 2006/07.  The majority of tour ists come from Germany and Switzerland.  
168. Liechtenstein's tourism regulations are simila r to those of Switzerland except for rules 
governing the acquisition of real esta te.  Liechtenstein Tourismus, a state institution established by the 
Tourism Law of 2000, is the main promotional agency responsible for marketing tourism in 
Liechtenstein.  It is financed by annual public su pport of Sw F 750,000 and revenue derived from the 
accommodation tax (Sw F 3 per night per person).  Certain promotional activities are coordinated 
with Switzerland.  Tourism activities are also  marketed by local tourism initiatives and the 
municipalities. 
                                                     
 
94 Article 196, Chapter 7, of the Federal Constitution.  The clause was originally designed to safeguard 
existing restaurants;  licensing criteria include the numb er of restaurants in the neighbourhood and population 
density. 
95 Federal Office of Justice (2005). WT/TPR/S/208 Trade Policy Review 
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169. The Tourism Law was amended in 2004 following a judgement by the States Court of the 
Principality of Liechtenstein in November 2003, wh ich ruled the application of certain provisions 
unconstitutional, in particular concerning the tourism levy.   
170. The acquisition of holiday apartments (secondary residence) above 1,000 m altitude is limited 
to households resident in Liechtenstein that have  Liechtenstein, EEA or Swiss nationality.  No more 
than one secondary residence is allowed per household.  
(vii) Professional services 
171. The conclusion and implementation of Switzerland 's bilateral agreement with the EC on the 
free movement of persons (Chapter II(x)) has led to significant changes in the conditions affecting the 
general employment of EC nationals by domestic fi rms and the conditions for foreigners to work in 
Switzerland.  Since June 2004, priority may no  longer be given to residents over EC-15/EFTA 
nationals.  For the states that joined the EC in 2 004, the agreement entered into force in 2006, and a 
transitional period limiting labour migration applies un til 2011.  In 2009, this agreement is to be 
extended to Romania and Bulgaria, subject to an optional popular vote.  As a result, Switzerland 
applies a dual system of recruiting foreign labour  that differentiates between EU/EFTA and third 
countries.   
172. According to the Foreign Nationals Act, entries of nationals of third countries are subject to a 
quota system, labour market needs tests and prior controls on wages and employment conditions. 
Only workers with good skill levels may access the Swiss labour market.  In 2007, the annual quota was 4,000 residency permits and 7, 000 short-term permits.  The count ry-wide quotas are allocated per 
canton.  A growing proportion of these foreign wo rkers are being employed in knowledge-intensive 
sectors such as information technology, fi nancial services, and chemical industry. 
173. Various professions are regulated at the federal or cantonal level.  A comprehensive list of 
regulated professions has been compiled by the Federal Office for Professional Education and Technology.
96  The Office is also in charge of recognizing certain professional diplomas.97 
(a) Legal services 
Switzerland 
174. The Federal Law on the free movement of lawyers (LLCA)98, in force since June 2002, 
established and unified at federal level the requirements for the practice of law.99  However, cantons 
retain the right to determine the requirements for cantonal licensing;  there is no federal licensing.  
The LLCA allows the free movement of lawyers with in the country, enabling them to appear in a 
court of law in any canton, irrespective of the can ton in which they are registered, without special 
authorization.  In 2007, about 9,000 la wyers were registered in Switzerland.    
                                                      
96 See Federal Office for Profession al Education and Technology online information.  Viewed at:  
http://www.bbt.admin.ch/dossiers /anerkenn/eu/d/regl.pdf.   
97 Depending on the profession, diplomas must be recognized by the relevant professional association 
or the Federal Office for Professional Education and Technology.  For further information on recognition of 
foreign diplomas and work experience, see Federal O ffice for Professional Education and Technology online 
information, "Links to areas the OPET is not responsible for".  Viewed at:  http://www.bbt.admin.ch/ 
themen/hoehere/00169/00371/00384/index.html?lang=en. 
98 RS 935.61.  
99 Ehle and Scheckle (2005), pp. 269-273. Switzerland and Liechtenstein WT/TPR/S/208 
 Page 131 
 
 
175. Under the LLCA, a lawyer wishing to represen t clients in court must acquire a cantonal 
lawyer's licence and be registered in the canton in which he has his professional address (for legal consultancy, see below).  In orde r to obtain this cantonal licence, a person must have followed studies 
in law leading to a graduate degree awarded by a Swiss university, followed by practical experience in 
Switzerland of at least one year, and success in an examination of juridical knowledge in theory and 
practice.  Registration also requires certain pers onal qualifications, such as independence, solvency, 
and absence of penal convictions.    
176. Nationals from member states of the EC or EFTA, who are entitled to practice the legal 
profession under one of the professional titles listed in  the annex to the LLCA, may represent parties 
before judicial authorities in Switzerland for a maximum of 90 days a year;  they may not register in 
the cantonal registry.  Moreover, they may permanently represent parties before judicial authorities in 
Switzerland if they register in the official list of nationals of member states of the EC or EFTA with the cantonal supervisory authority for lawyers.  In  the rare case of proceedings for which legal 
representation is mandatory, e.g. representation in court in penal proceedings concerning serious 
accusations, they must act together with a cantonally-registered lawyer.
100  After three years of 
practice in Switzerland, they are eligible to register  in the canton in which they have their professional 
address.  Lawyers with three years of practice of Swiss law or who have passed the examination may be registered, and have the same rights and duties as Swiss lawyers.  
177. Non-EC or non-EFTA lawyers who do not comply with the general requirements  may not be 
registered and may work only as legal consultant s.  As bound in its GATS Schedule, Switzerland 
imposes no restrictions on the provision of consulting services by foreign lawyers in either         
home-country or international law as regards cross-border supply, consumption abroad, and 
commercial presence.   
178. Supervision of lawyers is exercised at the cantonal level:  each canton designates an authority 
responsible for the supervision of the lawyers practic ing in its territory.  Appeals against decisions of 
the authority can be filed at the cantonal court and then the Federal Court of Justice.  Members of a 
bar association are also subject to its supervision.  The relevant cantonal s upervisory authorities must 
be informed of any violation of  professional rules by licensed lawyers.  There are 24 independent 
cantonal bar associations, as well as a Swiss Bar Association, which acts as an umbrella organization.  Fees are generally in line with the guidelines of th e relevant bar association, or fixed by cantonal 
legislation.   
Liechtenstein 
179. The Lawyers Act
101 is the main law regulating the legal profession, which is supervised by the 
Financial Market Authority (FMA).  Liechtenste in has not made any GATS commitments regarding 
legal services:  however, there are no restrictions on cross-border supply and consumption abroad of 
legal consultancy services.102  In June 2008, 149 (including 22 fore ign) lawyers, 25 law partnerships, 
73 associate lawyers, 5 legal agents, 10 patent attorn eys, and 4 patent attorney partnerships were 
operating in Liechtenstein.   
180. Registration in the national List of Lawyers is required in order to hold the legally protected 
title of lawyer and practice law.  This requires Liech tenstein or EEA nationality or equivalent status 
pursuant to an international agreement, success in the bar examinations, and a law practice in 
                                                      
100 EC or EFTA lawyers who have been on the official  list for three years and can  prove that they have 
been effectively and regula rly active in the area of Swiss law may be listed in the cantonal register.   
101 LLG 1993, No. 41.  
102 WTO document GATS/SC/83A, 17 April 1994. WT/TPR/S/208 Trade Policy Review 
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Liechtenstein.  Participation in the examinations requires the completion of two years of practical 
experience in a court of justice or with a licensed lawyer103, and a law degree obtained in a recognized 
university following studies for at least four years.   The professional body of Liechtenstein lawyers is 
the Chamber of Lawyers, a public law body constitute d of all lawyers on the List of Lawyers or the 
List of Resident European Lawyers; the ch amber is supervised by the Government.  
181. EEA nationals who are entitled to practice law under one of the professional titles listed in the 
Annex to the Lawyers Act are allowed to offer le gal cross-border services temporarily.  Furthermore, 
they may practice law in Liechtenstein permanently (freedom of establishment) if they are on the List 
of Resident European Lawyers.104  In proceedings in which the part y must be represented by a lawyer, 
the EEA lawyer must act together with a nationally registered lawyer.105  EEA lawyers who have been 
on the List of Resident European Lawyers for at le ast three years and can prove that they have been 
effectively and regularly active in the area of Li echtenstein law or who have obtained a diploma 
entitling them to practice in one of the EEA member states, and have passed the special qualification examination for foreigners, may be listed in the na tional List of Lawyers with the same rights and 
duties as Liechtenstein lawyers. 
182. Non-EEA lawyers cannot be registered.  They may be permitted by the FMA in individual 
cases to act as representatives or defence lawyers of a party before a Liechtenstein court or authority if 
there are special reasons.
106  They may only act in agreement with a nationally registered lawyer. 
(b) Accounting and auditing services 
Switzerland 
183. In its GATS commitments, Switzerland does not impose any limitations on the provision of 
accounting, auditing, and book-keeping services as re gards cross-border supply, consumption abroad 
or commercial presence for either market access or national treatment, except that auditing services to 
a joint-stock company ( société anonyme ) or a limited company ( société en commandité  par actions ) 
must be provided by at least one person with commercial presence in Switzerland.  
184. The Federal Law on the licensing and oversight of auditors (LSR), which entered into force in 
September 2007107, abolished the system of autonomous regul ation by establishing the Federal Audit 
Oversight Authority (FAOA), which is responsible for accrediting auditors.  The Law lays down 
accreditation conditions, consisting either of an auditing diploma obtained in Switzerland or a 
combination of university studies with practical experi ence.  Pursuant to Article 4(2)(d) of the Law, 
equivalent foreign education and experience can be  recognized.  Moreover, applicants with foreign 
education must demonstrate the required knowledge of  Swiss law.  As at June 2008, 9,042 auditors 
and audit firms were registered with the LSR.  Th e law also sets out provisions for the establishment 
of auditing companies. 
                                                      
103 At least one year with a lawyer (or administrative authority) of Liechtenstein and at least six months 
with a Liechtenstein court of justice or the Liechtenste in public prosecutor's office. Article 2, paragraph 3 
indicates that, as regards lawyers and administrative authority, corresponding experience gained abroad is 
acceptable. 
104 LLG 1993, No. 41, Article 45. 
105 LLG 1993, No. 41, Articles 49 and 57a. 
106 LLG 1993, No. 41, Article 68. 
107 RS 221.302. Switzerland and Liechtenstein WT/TPR/S/208 
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185. Companies that audit financial institutions  supervised by the Swiss Federal Banking 
Commission (Chapter IV(5)(ii)) must have gained SFBC authorization.108  Only two categories of 
legal entities must be recognized as bank auditors:  auditing associations affiliated with at least 
12 banks and with capital, guaranteed capital or reser ves of no less than Sw F 1 million, as well as an 
organizationally independent inte rnal auditing department;  and fiduciary and auditing companies 
with paid-up capital of at least Sw F 1 million.109  Authorized auditors must be Swiss-certified, or hold 
an equivalent foreign diploma or  demonstrate bank auditing skills.110  Recognition of                
foreign-controlled auditing firms is decided by the SFBC.  
186. The Code of Obligations provides general guidelines for the preparation of financial 
statements.111  Swiss companies with international pr esence and foreign companies use either 
International Financial Reporting Standards (IF RS) or U.S. Generally Accepted Accounting 
Principles (GAAP), while companies with predom inantly Swiss presence use the Swiss GAAP ARR 
(Accounting and Reporting Recommendations).  Th e Swiss GAAP ARR is also allowed for SWX 
Local Caps (local companies), real estate companie s, and investment companies.  In fiscal year 2007, 
191 SWX listed companies used IFRS, 17 Swiss GAAP ARR, and 32 U.S. GAAP. 
187. The Listing Rules of the Swiss Exchange (SWX ) require listed companies to provide audited 
annual financial stat ements and reports.112  Article 6 of the Rules establishes that auditing bodies must 
be subject to the Swiss or a recognized foreign oversight authority.  
188. No legal changes have taken place in the regulation of accounting services. Accounting 
services are generally not regulated as such, and a professional title does not confer the right to 
practice a specific activity:  rather, the professiona l title is a sign of competence. The principal 
professional body representing Swiss accountants is th e Swiss Institute of Certified Accountants and 
Tax Consultants113;  members can be either natural persons or enterprises.  
Liechtenstein 
189. As at June 2008, 23 auditors and 26 auditing companies held a Liechtenstein licence, while 
5 foreign auditors and 22 fo reign auditing companies operated under the agreements on free 
movement of services.  Under its GATS schedule, Liech tenstein maintains no restrictions on       
cross-border supply, or consumption abroad fo r accounting, auditing, and bookkeeping services; 
certain market access limitations are specified  for the supply of services through commercial 
presence.  Liechtenstein has made no commitment s on the presence of natural persons for these 
services.114 
190. The auditing profession in Liechtenstein is regulat ed and supervised by the Financial Market 
Authority, in accordance with the La w on Auditors and Audit Companies.115  A licence is required to 
obtain the legally protected professional title of auditor ( Wirtschaftsprüfer ) and gain authorization to 
conduct professional audits and to  provide related advice on accounting and finance, tax, 
                                                      
108 As at June 2008, 19 auditing firms were recognized by the SFBC. 
109 Limited liability companies (GmbH) must  also have at least four associates. 
110 Article 35 of RS 952.02. 
111 See RS 221.431 for general book-keeping rules. 
112 SWX Stock Exchange (2007).  Foreign compan ies listed on the SWX are exempt from this 
requirement if their shares are tr aded primarily on a securities excha nge in their country of domicile. 
113 For further information on the Institute, see Chambre Fiduciaire online information.  Viewed at:  
http://www.chambre-f iduciaire.ch/. 
114 WTO document GATS/SC/83A, 17 April 1994. 
115 LLG 1993, No. 44. WT/TPR/S/208 Trade Policy Review 
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organization, and information technology.  The criteria to be met are: Liechtenstein or EEA 
citizenship, the holding of the legally prescribed a cademic qualifications, practical experience of at 
least three years under a licensed auditor or a uditing company, and success in the auditors' 
examinations.  The professional domicile must be in Liechtenstein.  Auditing activities may also be 
undertaken by legal entities (auditing companies ( Revisionsgesellschaften )) with their head office in 
Liechtenstein.  In order to be granted a licence, the majority of the capital and of voting rights must be 
held by Liechtenstein-licensed auditors or audit companies, the majority of the members of the 
administrative body of the company must be licensed auditors, and management must include a     full-time managing director who is a Liechtenstein-licensed auditor. 
191. EEA and Swiss nationals who are licensed for auditing activities in their home state enjoy 
freedom of establishment in Liechtenstein.  Li cence requirements for these categories of foreign 
auditors are:  academic qualifications equivalent to those requested from domestic auditors;  success 
in special qualification examinations for foreigners ;  liability insurance;  and professional domicile in 
Liechtenstein.   
192. EEA citizens holding an auditing licence from their home country may exercise auditing 
activities in Liechtenstein temporarily.  Licence requirements are:  academic qualifications equivalent 
to those required of domestic auditors, success in special qualification examination for foreigners, 
membership in the relevant professional associa tion in the home country, and liability insurance.
116 
Non-EEA auditors wishing to undertake auditing in  Liechtenstein temporarily may be approved by 
the FMA under the conditions applicable to EEA aud itors.  However, unlike for EEA auditors, there is 
no right to approval.117  
(c) Engineering and architectural services 
Switzerland 
193. Switzerland's market for engineering and architectural services is highly fragmented;  the 
types of business range from independent specialists to large offices and companies.  The main professional societies are the Swiss Society of Engi neers and Architects, and the Technical Union of 
Switzerland (UTS/STV).  Generally Switzerland has not  imposed any limitations on market access or 
national treatment for the architectura l and engineering professions.   
194. Professional names such as "architect", "engineer " or "technician" are not legally protected in 
most cantons, and no licence is required for the exercise of those professions.  Thus, anyone, Swiss or foreign, can practice these professions.
118  On the other hand, six cantons (Fribourg, Geneva, Lucerne, 
Neuchatel, Vaud, and Ticino) regulate the professions of architect and civil engineer by requiring a 
professional qualification.  Membership in a prof essional association is generally not necessary.  
Registration in the Swiss Register of Engineers, Architects, and Technicians (REG) typically requires 
a diploma plus at least three years of professional experience (two years for technical school graduates).  These registers are open to foreign pr ofessionals if they have been exercising their 
profession generally for two to three years in Switzerland or abroad. 
                                                     
 
116 LLG 1993, No. 44, Article 42, paragraph 2. 
117 LLG 1993, No. 44, Article 41, paragraph 2.  
118 A country-wide exception applies to official land measurements, which may be carried out only by 
licensed surveyors ( ingénieur-géomètre breveté ).  For further details, see WTO (2004).  Switzerland and Liechtenstein WT/TPR/S/208 
 Page 135 
 
 
Liechtenstein  
195. As at August 2008, 211 architects and 114 engi neers were registered in Liechtenstein, 
working as independent specialists or in architectural and engineering offices and companies.  The main professional society in Liechtenstein is the Liechtensteinische Ingenieur und 
Architektenvereinigung.  "Architect", "engineer" and "technician" are legally protected professional 
names.  Requirements to obtain a licence to work as an engineer or architect are, in addition to a 
diploma, at least three years of professional experience, and an office in which to carry out the profession.  Citizens from non-EEA-member countries need twelve years' prior residence in Liechtenstein.  Permanent domicile in Liechte nstein is required for non-EEA citizens.   
 Switzerland and Liechtenstein WT/TPR/S/208 
 Page 137 
 
 
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