RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/208 
10 November 2008  
 
(08-5323) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
SWITZERLAND AND LIECHTENSTEIN 
 
  
 
This report, prepared for the third join t Trade Policy Review of Switzerland and 
Liechtenstein, has been drawn up by the WTO Secretariat on its own 
responsibility.  The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (A nnex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from 
Switzerland and Liechtenstein on its  trade policies and practices. 
 
Any technical questions arising from this report may be addressed to 
Mrs. Eugenia Lizano (tel:  022 739 6578);  Ms Ulla Kask (tel:  022 739 5627);  
or Mr.  Jacques Degbelo (tel:  022 739 5583).  
 
Document WT/TPR/G/208 contains the policy statements submitted by 
Switzerland and Liechtenstein. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Revi ew Body on Switzerland and Liechtenstein. Switzerland and Liechtenstein WT/TPR/S/208 
 Page iii 
 
 
 CONTENTS 
    Page 
SUMMARY OBSERVATIONS xv 
 (1) T HE ECONOMIC ENVIRONMENT  xv 
 (2) I NSTITUTIONAL FRAMEWORK  xv 
 (3) T RADE POLICY INSTRUMENTS  xvi 
 (4) S ECTORAL POLICIES  xvii 
 (5) T RADE POLICY AND TRADING PARTNERS  xviii 
I. ECONOMIC ENVIRONMENT 1 
(1) M AJOR FEATURES OF THE ECONOMY  1 
(2) R ECENT ECONOMIC DEVELOPMENTS  2 
(3) D EVELOPMENTS IN TRADE AND INVESTMENT  7 
(i) Trade in goods and services 9 (ii) Investment 13 
(4) O
UTLOOK  16 
II. TRADE AND INVESTMENT REGIMES 17 
(1) I NSTITUTIONAL FRAMEWORK  17 
(2) F ORMULATION AND IMPLEMENTATION OF TRADE POLICY  20 
(3) T RADE POLICY OBJECTIVES  22 
(4) T RADE AGREEMENTS AND ARRANGEMENTS  23 
(i) WTO 23 (ii) Regional and bilateral agreements 25 
(iii) Trade disputes and consultations 32 
(5) I
NVESTMENT REGIME  32 
(i) Switzerland 32 
 (ii) Liechtenstein 36 
III. TRADE POLICIES AND PRACTICES BY MEASURE 40 
(1) I NTRODUCTION  40 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  41 
(i) Customs procedures 41 (ii) Customs valuation and rules of origin 42 
(iii) Tariffs 44 
(iv) Tariff exemptions and reductions 50 (v) Other duties, taxes, and charges 51 
(vi) Import prohibitions, restrictions, and licensing 54 
(vii) Compulsory reserve stock 56 (viii) Local-content and local-purchase requirements 56 
(ix) Contingency measures 56 
(x) Standards and other technical requirements 57 
(xi) Government procurement 64 WT/TPR/S/208 Trade Policy Review 
Page iv 
 
 
     Page 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  67 
(i) Export procedures 67 
(ii) Export prohibitions, restrictions, and licensing 67 (iii) Export taxes, charges, and levies 68 
(iv) Duty and tax concessions 68 
(v) Export subsidies 68 (vi) Other export assistance 69 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  70 
(i) Incentives and other assistance 70 (ii) State trading and st ate-owned enterprises 74 
(iii) Competition policy and regulatory issues 76 
(iv) Intellectual property (IP) rights 82 
IV. TRADE POLICIES BY SECTOR 90 
(1) I
NTRODUCTION  90 
(2) A GRICULTURE AND RELATED ACTIVITIES  91 
(i) Overview and main features 91 
(ii) Policy objectives and instruments 92 
(iii) Key subsectors 99 
(3) E NERGY   101 
(i) Major features 101 (ii) Oil products 102 
(iii) Natural gas 102 
(iv) Electricity 103 
(4) M
ANUFACTURING  105 
(i) Main features 105 
(ii) Textiles, clothing, and footwear 106 (iii) Chemical and pharmaceutical products 106 
(iv) Machines and equipment 106 
(5) S
ERVICES  107 
(i) Construction services 108 
(ii) Financial services 109 
(iii) Telecommunications 120 (iv) Postal services 123 
(v) Transport 124 
(vi) Tourism 128 (vii) Professional services 130 
REFERENCES   137 
APPENDIX TABLES  141 
 
  Switzerland and Liechtenstein WT/TPR/S/208 
 Page v 
 
 
 CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT  
I.1 Structure of merchandise trade, 2003-07 10 
I.2 Direction of merchandise trade, 2003-07 12 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Breakdown of applied MFN tariff rates, 2008 46 
III.2 Tariff escalation by ISIC 2-digit industry, 2008 48 
IV. TRADE POLICIES BY SECTOR   
IV.1 Natural gas prices in selected OECD countries, 2001-06 103 
IV.2 Electricity prices in select ed OECD countries, 2001-06 105 
IV.3 Construction spending by project, Switzerland, 1995-06 108 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1  Switzerland and Liechtenst ein at a glance, 2006 and 2005 1 
I.2 Selected macroeconomi c indicators, 2003-08 3 
I.3 Balance of payments, 2003-07 8 
I.4 Foreign direct investment, 2003-07 14 
II. TRADE AND INVESTMENT REGIMES   
II.1 Main trade-related laws and regulations, September 2008 20 
II.2 Participation in free-trade agreements (other than with the EC), September 2008 25 II.3 Swiss-EC bilateral agreements, September 2008 29 
II.4 Swiss corporate taxes for resident companies, and other selected taxes, 2008 34 
II.5 Liechtenstein corporate taxes for resident companies, and other selected taxes, 2008 38 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Tariff quotas, by trade regime, 2008 45 
III.2 Structure of MFN tariffs, 2004 and 2008 46 III.3 Summary analysis of the applied MFN tariff, 2008 47 
III.4 Average tariff, by trade regime, 2008 49 
III.5 Import fee to finance compulsary reserve stocks, 2008 51 III.6 Changes in labelling requirements since 2004 60 
III.7 SPS legislation, 2008 62 
III.8 Federal assistance, 2005-08 72 III.9 State-owned enterprises an d exclusive arrangements, 2008 74 
III.10 Proceedings by the Competition Commission and its Secretariat, 2007 79 
III.11 Intellectual property legislation, 2008 82 III.12 Membership of WIPO treaties, 2008 83 WT/TPR/S/208 Trade Policy Review 
Page vi 
 
 
     P a g e  
IV. TRADE POLICIES BY SECTOR  
IV.1 Swiss agricultural production, 2001-07 91 
IV.2 Self-sufficiency in basic food products, 1991, 1995, and 2001-05 92 IV.3 Swiss outlays for direct payments, 2000-06 93 
IV.4 Tariff quotas, 2007 95 
IV.5 Administration of tariff quotas, 2007 95 IV.6 Export subsidies, 2004-06 97 
IV.7 Estimates of Swiss support to agriculture, selected years 98 
IV.8 Liechtenstein outlays for direct payments, 2002-07 99 IV.9 Structure of the Swiss banking system, 2008 111 
IV.10 Liechtenstein banking indicators, 2000-07 114 
IV.11 Insurance companies in Liechtenstein, 2002-07 118 IV.12 Swiss main telecom indicators, 2000-07 120 
IV.13 Liechtenstein main telecom indicators, 2006 123 
IV.14 Swiss tourism indicators, 2001-07 129 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT  
AI.1 Structure of imports, 2003-07 143 
AI.2 Structure of exports, 2003-07 144 
AI.3 Origin of imports, 2003-07 145 AI.4  Destination of exports, 2003-07 146 
II. TRADE AND INVESTMENT REGIMES  
AII.1 Most recent notifications to the WTO, September 2008 147 III. TRADE POLICIES AND PRACTICES BY MEASURE  
AIII.1 Applied MFN tariff averages by HS2, 2008 149 
AIII.2 Duty exemptions, 2008 153 
 
 
 Switzerland and Liechtenstein WT/TPR/S/208 
 Page vii 
 
 
 GLOSSARY 
RS or Law Number Legislation a nd acronym Date of law (as at) 
Liechtenstein   
LGBl. 1995/135 Amendment on the regulation on the marketing of salt in the European 
Economic Area 2 May 1995 
(22 June 2006) 
LGBl. 1995/98   Law on the Purchase of Salt in the EEA Member States 22 March 1995 
(22 June 2006) 
LLG 1992, No. 108 Law on Banks and I nvestment Firms  21 October 1992  
as amended 
LLG 1993, No. 41 Law on Lawyers  9 December 1992  
LLG 1993, No. 44 Law on Auditors and Audit Companies 9 December 1992 LLG 1994, No. 22 Ordinance Implementing the Law on Banks and Finance Companies  22 February 1994 
as amended 
LLG 1996, No. 23 Law on the Supervision of Insurance Undertakings  6 December 1995  
LLG 1997, No. 85 Ordinance on the Insurance Supervision Act  17 December 1996 in force from 
24 January 1997 
LLG 2005, No. 156 Law on Investment Undertakings (IUG)  19 May 2005 LR 172.05 Laws on Government Procurement 1998-07 1998-07 LR 23 Laws on intellectual property, including authors' rights, industrial 
property, and data protection, 1957-02 1957-02 
LR 24 Law against unfair competition of 22 October 1992 1 November 1994/2004 
LR 240.12 Law on indication of prices of 3 September 1996 24 September 1996/1999 
LR 944 Law on consumer information of 23 October 2002 17 December 2002/2005 
LR 946.21 Law on measures concerning economic transactions with foreign states 
(Sanctions Act) 8 March 1991 
SR 952.1  Law on Professional Due Diligence in Financial Transactions (Due 
Diligence Act, DDA) 26 November 2004 
Switzerland   
RS 0.740.72 Agreement between the European Community and the Swiss 
Confederation on the carriage of goods and passengers by rail and road  21 June 1999 
(1 July 2007) 
RS 0.748.127.196.23 Agreement between the Swi ss Federal Council and the Government of 
the Islamic Republic of Pakistan on scheduled air traffic 10 March 2001 
(16 September 2003) 
RS 0.748.127.193.36 Air transport agreement between the Swiss Government and the 
Government of the United States of America 15 June 1995 
(1 October 1997) 
RS 0.961.514 Agreement on direct insurance and insurance intermediaries between the 
Swiss Confederation and the Pr incipality of Liechtenstein 19 December 1996 
(1 July 2007) 
RS 0.916.026.81 Agreement between the Sw iss Confederation and the European 
Community on trade in agricultural products 21 June 1999 
(1 July 2007) 
entered into force on 1 June 2002 
RS 23 Intellectual property and protection of data  n.a.  
RS 101 Federal Constitution of the Swiss Confederation 18 April 1999 
(1 January 2008) 
RS 172.056.1 Federal Law on government  procurement 16 December 1994 
(1 January 2008) 
RS 172.056.11 Ordinance on government procurement (OMP) 11 December 1995 
(27 December 2006) 
RS 172.056.111 Ordinance of the Federal Depa rtment of the Environment, Transport, 
Energy and Communication (DETEC) on duty exemption for 
government procurement 18 July 2002 
(1 October 2007) 
RS 221.229.1 Federal Law on insurance contracts (Insurance Contracts law, LTA) 2 April 1908 
(1 January 2008) 
RS 221.302 Federal Law on the licensing and oversight of auditors (Law on the 
oversight of auditors, LSR)  16 December 2005 
(1 September 2007) WT/TPR/S/208 Trade Policy Review 
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 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 221.431 Ordinance on book-keeping (Olico)  24 April 2002 
(18 June 2002) 
RS 221.411.1 Ordinance on emoluments relating to  the commercial register 3 December 1954 
(1 January 2008) 
RS 231.1 Federal Law on copyright and related rights (Copyright Law, LDA)  9 October 1992 
(13 June 2006) 
RS 231.11 Ordinance on copyright  and related rights (Copyright Ordinance, ODAu) 26 April 1993 
(1 May 2007) 
RS 231.2 Federal Law on the protection of topographies of semi-conductor 
products (Topographies Law, LTo) 9 October 1992 
(13 June 2006) 
RS 231.21 Ordinance on the protection of topographies of semi-conductor products 
(Topographies Ordinance, OTo)  26 April 1993 
(1 May 2007) 
RS 232.11 Federal Law on the protection of trademarks and indications of source 
(Trademark Protection Law, LPM) 28 August 1992 
(1 September 2008) 
RS 232.111 Ordinance on the protection of trademarks (OPM) 23 December 1992  
(1 July 2008) 
RS 232.119 Ordinance regulating the use of the "S wiss made" name on watches 23 December 1971  
(1 July 1995) 
RS 232.12 Federal Law on the protection of de signs (Designs Law, LDes) 5 October 2001 
(13 May 2006) 
RS 232.121 Ordinance on the protection of desi gns (Designs Ordinance, Odes) 8 March 2002 
(1 May 2007) 
RS 232.14 Federal Law on patents (Patent Law, LBI) 25 June 1954 
(1 July 2008) 
RS 232.141 Ordinance on patents (Paten t Ordinance, OBI) 19 October 1997 
(1 July 2008) 
RS 232.16 Federal Law on the protection of new plant varieties 20 March 1975 
(1 September 2008) 
RS 232.161 Ordinance on the protection of ne w plant varieties (Variety Protection 
Ordinance) 11 May 1977  
(1 July 2008) 
RS 241 Federal Law against unfair co mpetition (LCD)  19 December 1986 
(1 April 2007)  
RS 251 Federal Law on cartels and other impediments to competition (Cartels 
Law, LCart) 6 October 1995 
(13 June 2006) 
RS 251.2 Ordinance on emoluments provided in the Cartels Law (Emoluments 
Ordinance, LCart, OEmol-LCart)  25 February 1998 
(4 July 2006) 
RS 251.4 Ordinance on the control of company mergers 17 June 1996 
(23 March 2004) 
RS 251.5 Ordinance on sanctions for unlawfu l restriction of competition (Sanctions 
Ordinance, LCart, OS-LCart) 12 March 2004 
(23 March 2004) 
RS 0453 Convention on International Trade in Endangered Species of Wild Fauna 
and Flora 1 July 1975 
(13 September 2007) 
RS 453 Ordinance on the conservation of species (OCE) 18 April 2007 
(1 July 2007) 
RS 455 Federal Law on the protection of animals (LPA) 16 December 2005 
(1 September 2008) 
RS 514.51 Federal Law on war materi al (LFMG)  13 December 1996 
(1 August 2008) 
RS 514.511 Ordinance on war mate rial (OMG) 25 February 1998 
(1 January 2008) 
RS 531 Federal Law on national economi c supply (National Economic Supply 
Law, LAP) 8 October 1982  
(13 June 2006) 
RS 531.215.11 Ordinance on building up compulso ry reserve stocks of sugar 6 July 1983 
(22 July 2003) Switzerland and Liechtenstein WT/TPR/S/208 
 Page ix 
 
 
 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 531.215.12 Ordinance on building up compulsory reserve stocks of edible rice 6 July 1983  
(22 July 2003) 
RS 531.215.13 Ordinance on building up compulso ry reserve stocks of edible oils and 
fats, as well as their raw materials and semi-processed products 6 July 1983 
(2 August 2006) 
RS 531.215.14 Ordinance on building up compulso ry reserve stocks of coffee 6 July 1983 
(1 February 2005) 
RS 531.215.17 Ordinance on the maintenance of  compulsory stocks of cereals, special 
cereals, energy-rich foods and proteins  for animal feed (Ordinance on the 
compulsory storage of cereals) 25 April 2001  
(1 May 2007) 
RS 531.215.25 Ordinance on the maintenance of compulsory stocks of fertilizer 4 April 2007 
(1 July 2007) 
RS 531.215.31 Ordinance on the building up of com pulsory reserve stocks of medicines 6 July 1983 
(16 March 2004) 
RS 531.215.41 Ordinance on the compulsory bu ilding up of reserve stocks of fuel and 
liquid fuel 6 July 1983 
(2 August 2004) 
RS 616.1 Federal Law on financial support and s ubsidies (Subsidies Law, LSu) 5 October 1990 
(1 January 2008) 
RS 631.0 Customs Law (LD) 18 March 2005 
(1 July 2007) 
RS 631.01 Customs Ordinance (OD) 1 November 2006 
(1 January 2008) 
RS 631.011   Ordinance of the Federal Depa rtment of Finance (DFF) on the customs 
(OD-DFF) 4 April 2007 
(1 May 2007) 
RS 631.012 Ordinance of the Federal Departme nt of Finance (DFF) on goods eligible 
for customs duty reductions depending on use (OADou) 4 April 2007 
(1 March 2008) 
RS 631.013 Ordinance of the Federal Cust oms Administration (AFD) on the customs 
(OD-AFD)  4 April 2007 
(1 May 2008) 
RS 632.10  Federal Law on customs tariffs (LTaD)  9 October 1986 
(1 July 2007) 
RS 632.13 Ordinance on the ta re weight 4 November 1987 
(1 July 2007) 
RS 632.111.72 Federal Law on the import and export of processed agricultural products 13 December 1974  
(10 October 2006) 
RS 632.111.722 Ordinance on the variable co mponents and the rates of customs duty 
applicable to the import of processed agricultural products  22 December 2004 
(18 July 2006) 
RS 632.111.723 Ordinance regulating export c ontributions for processed agricultural 
products (Ordinance on export contributions) 22 December 2004 
(1 May 2007) 
RS 632.911 Ordinance determining the pref erential customs tariffs for developing 
countries (Tariff Preferences Ordinance) 16 March 2007 
(1 May 2008) 
RS 641.10 Federal Law on stamp duty (LT) 27 June 1973 
(1 August 2008) 
RS 641.20 Federal Law regulating value adde d tax (VAT Law, LTVA) 2 September 1999 
(1 January 2008) 
RS 641.31 Federal Law on the taxati on of tobacco (LTab) 21 March 1969 
(1 May 2007) 
RS 641.411 Federal Law on the taxation of beer (LIB) 6 October 2006 
(1 July 2007) 
RS 641.51 Federal Law on the taxation of mo tor vehicles (Limpauto) 21 June 1996  
(13 June 2006) 
RS 641.201.31 Ordinance of the Federal Departme nt of Finance (DFF) regulating       
tax-free import of small quantities of goods, those of little value or where 
the amount of tax is insignificant 4 April 2007 
(1 May 2007) 
RS 641.61 Law on the taxation of mineral oils (Limpmin)  21 June 1996 
(1 July 2008)  
modification of 23 March 2007 WT/TPR/S/208 Trade Policy Review 
Page x 
 
 
 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 641.201.41 Ordinance governing fiscal ex emption for deliveries of private goods on 
Swiss territory with a view to export in tourist traffic 4 April 2007 
(1 May 2007) 
RS 641.611  Ordinance on the taxation of mineral oils (Oimpmin) 20 November 1996 
(1 January 2008) 
RS 642.11 Federal Law on direct federa l taxation (LFID) 14 December 1990 
(1 March 2008) 
RS 642.14 Federal Law on the harmonization of direct taxation in cantons and 
communes (LHID) 14 December 1990 
(1 March 2008) 
RS 680 Federal Law on alcohol 21 June 1932 
(1 June 2008) 
RS 691 Inter-Cantonal Convention on the sale  of salt in Switzerland  22 November 1973 
RS 691.1  Law on accession to the Inter-Cant onal Convention on the sale of salt in 
Switzerland  15 November 1974 
RS 730.01 Ordinance on energy (OEne) 7 December 1998 
(1 April 2008) 
RS 748.0 Federal Law on aviation (LA) 21 December 1948 
(1 January 2008) 
RS 748.01 Ordinance on air navi gation (OSAv) 14 November 1973 
(1 August 2008) 
RS 748.131.1 Ordinance on the aeronautical infrastructure (OSIA) 23 November 1994 
(15 March 2008) 
RS 748.127.2 Ordinance on personnel responsible fo r maintaining aircraft (OPEA) 25 August 2000 
(10 October 2000) 
RS 748.127.22 Ordinance on the licensing of personnel responsible for maintaining 
aircraft (OJAR-66)  25 August 2000 
(10 October 2000) 
RS 748.127.23 Ordinance on trai ning facilities for personnel responsible for maintaining 
aircraft (OJAR-147)  25 August 2000 
(10 October 2000) 
RS 748.127.3 Ordinance on aircraft maintena nce companies (OJAR-145)  20 October 1995 
(6 April 2004) 
RS 783.0 Federal Law on postal services (LPO)  30 April 1997 
(1 January 2008) 
RS 783.01  Ordinance on postal services (OPO)  26 November 2003 
(1 January 2008) 
RS 784.10 Telecommunications Law (LTC)  30 April 1997 
(1 April 2007) 
RS 812.21 Federal Law on medicinal pr oducts and medical devices (Law on 
therapeutic products, LPTh) 15 December 2000 
(1 May 2007) 
RS 812.212.21 Ordinance on medicines (OMéd) 17 October 2001  
(1 July 2007) 
RS 813.1 Federal Law on protection against hazardous substances and preparations 
(Chemical Products Law, LChim) 15 December 2000 
(13 June 2006) 
RS 813.11 Ordinance on protec tion against hazardous substances and preparations 
(Chemical Products Ordinance, OChim) 18 May 2005 
(1 May 2007) 
RS 813.12 Ordinance on the marketing and use of biocidal products (Biocidal 
Products Ordinance, OPBio) 18 May 2005 
(1 April 2007) 
RS 814.018 Ordinance on the incentive tax on vola tile organic compounds (OCOV) 12 November 1997 
(28 December 2000) 
RS 814.81 Ordinance on risk re duction related to the use of particularly hazardous 
substances, preparations and objects (Ordinance on risk reduction related 
to chemical products, ORRChim) 18 May 2005 
(1 March 2008) 
RS 814.91 Federal Law on non-human gene  technology (Gene Technology Law, 
LGG) 21 March 2003 
(13 June 2006) 
RS 817.0 Federal Law on foodstuffs and basi c commodities (Food Law, LDAI) 9 October 1992 
(1 April 2008) Switzerland and Liechtenstein WT/TPR/S/208 
 Page xi 
 
 
 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 817.02  Ordinance on food stuffs and basic commodities (ODAlOUs) 23 November 2005 
(1 April 2008) 
RS 817.022.21 Ordinance of the Federal Depa rtment of the Interior (DFI) on labelling 
and advertising of foodstuffs (OEDAI) 23 November 2008 
(1 April 2008) 
RS 817.41 Ordinance on the import, trans it and export of foodstuffs and basic 
commodities (OITEDO) 1 March 1995 
(30 April 2002) 
RS 817.022.51 Ordinance of the Federal Depart ment of the Interior (DFI) on genetically 
modified foodstuffs (ODAlGM) 23 November 2005 
(1 April 2008) 
RS 819.11 Ordinance on the safety of technical in stallations and appliances (OSIT) 12 June 1995 
(7 May 2002) 
in force since 1 June 1995 and last reviewed on 7 May 2002 
RS 832.20 Federal Law on accident insurance (LAA)  20 March 1981 
(1 January 2008) 
RS 901.0 Federal Law on re gional policy 6 October 2006 
(1 January 2008) 
RS 901.021 Ordinance on regional policy (OPR) 28 November 2007 
(1 January 2008) 
RS 901.022 Ordinance on the granting of fis cal exemptions in implementation of 
regional policy 28 November 2007  
(1 January 2008) 
RS 901.2 Federal Law on the granting of cred it guarantees and loan interest service 
contributions in mountain regions and rural areas in general 25 June 1976 
(1 January 2008) 
RS 910.1 Federal Law on agriculture (Agriculture Law, LAgr) 29 April 1998 
(1 January 2008) 
RS 910.12 Ordinance on to the protection of appellations of origin and geographical 
indications for agricultural products and processed agricultural products 
(Ordinance on AOPs and IGPs) 28 May 1997 
(1 January 2008) 
RS 910.124 Ordinance of the Federal Department of the Economy (DFE) on 
minimum requirements for the control of protected appellations of origin 
and geographical indications (Ord inance on the control of AOPs and 
IGPs) 11 June 1999  
(1 January 2008) 
RS 910.14 Ordinance on the regional promotion of qua lity and interlinking of 
ecological compensation areas in agriculture (Ecological Quality 
Ordinance, OQE) 4 April 2001 
(1 January 2008) 
RS 910.17 Ordinance on bonuses for areas unde r cultivation and changes in arable 
farming practices (Ordinance on bonu ses for arable farming, OCCCh) 7 December 1998 
(1 January 2008)  
modification of 14 November 2007 
RS 910.18 Ordinance on organi c farming and the labelling of organically produced 
products and foodstuffs (Organic Farming Ordinance) 22 September 1997 
(1 January 2008) 
RS 910.19 Ordinance on the terms "mountain" and "alpine pastures" in relation to 
agricultural products and processed agricultural products (Ordinance on 
the terms "mountain" and "alpine pastures", ODMA) 8 November 2006 
(5 December 2006) 
RS 916.01 General Ordinance on imports of  agricultural products (Agricultural 
Imports Ordinance, OIAgr) 7 December 1998 
(7 May 2008) 
RS 916.140 Ordinance on viticulture and the importa tion of wine (Wine Ordinance) 14 November 2007  
(1 January 2008) 
RS 916.151 Ordinance on the production a nd placing on the market of plant 
propagation material (Seeds Ordinance) 7 December 1998  
(1 January 2008) 
RS 916.161  Ordinance on the placing on the market of phytosanitary products 
(Ordinance on phytosanitary products, OPPh) 18 May 2005 
(1 January 2008) 
RS 916.20 Ordinance on the protection of plants (OPV) 28 February 2001 
(1 January 2008) 
RS 916.121.10 Ordinance on the import and expor t of vegetables, fruit and horticultural 
plants (OIELFP) 7 December 1998 
(1 January 2008) 
RS 916.3 Animal husbandry  n.a. WT/TPR/S/208 Trade Policy Review 
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 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 916.202.1 Ordinance of the Federal Offi ce of Agriculture (O FAG) on temporary 
phytosanitary measures (OMPT) 25 February 2004 
(1 March 2005)  
RS 916.307 Ordinance on the production and pl acing on the market of feedstuffs 
(Feedstuffs Ordinance) 26 May 1999 
(1 January 2008) 
RS 916.342 Ordinance on the labelling of po ultry meat according to the method of 
production (Ordinance on the la belling of poultry, ODVo) 23 November 2005 
(27 December 2005) 
RS 916.371 Ordinance on the market for eggs (Ordinance on eggs, OO) 26 November 2003 
(1 January 2008) 
RS 916.40 Law on epizootics (LFE) 1 July 1966 
(13 June 2006) 
RS 916.401 Ordinance on epizootics (OFE) 27 June 1995 
(1 April 2008) 
RS 916.51 Ordinance on the labelling of agricultural products stemming from 
production prohibited in Switzerland (Agricultural Ordinance on 
labelling, OAgrD) 26 November 2003 
(1 January 2008) 
RS 916.443.10 Ordinance on the import, trans it and export of animals and products of 
animal origin (OITE) 18 April  2007  
(1 June 2008)   
RS 916.350.2 Ordinance on supplementary payments and aid in relation to milk 
(Ordinance on support for milk prices, OSL) 7 December 1998 
(1 May 2007) 
RS 916.350.21 Ordinance of the Federal De partment of the Economy (DFE) on the 
amount of support for milk products and provisions on the importation of 
whole milk powder 7 December 1998 
(1 January 2008) 
RS 916.443.12 Ordinance on the import and transit by air of animals from third countries 
(OITA) 18 April 2007 
(1 June 2008)  
RS 916.443.13 Ordinance on the import and transit by air of products of animal origin 
from third countries (OITPA) 18 April 2007 
(1 June 2008) 
RS 916.151.7 Ordinance of the Federal Offi ce for Agriculture (OFAG) on the list of 
vine varieties permitted for certificat ion and the production of standard 
materials and the range of vine va rieties (Vine Varieties Ordinance) 17 January 2007 
(20 February 2007) 
RS 921.0 Federal Law on forests (Forests Law, LFo) 4 October 1991 
(1 January 2008) 
RS 921.01 Ordinance on forests (OFo) 30 November 1992 
(1 July 2008) 
RS 922.0 Federal Law on hunting and the pr otection of wild mammals and birds 
(Hunting Law, LChP) 20 June 1986 
(1 August 2008) 
RS 923.0 Federal Law on fi shing (LFSP) 21 June 1991 
(1 January 2008) 
RS 935.12 Federal Law on the promotion of accommodation facilities 20 June 2003 
(13 June 2006) 
RS 935.61 Federal Law on the free movement of la wyers (Law on lawyers, LLCA)  23 June 2000 
(14 November 2006) 
RS 941.210 Ordinance on measuring instruments  15 February 2006 
(2 May 2006) 
RS 941.212 Ordinance of the Federal Depa rtment of Justice and Peace (DFJP) on 
apparatus for measuring liquids other than water 19 March 2006  
(2 May 2006) 
RS 941.214 Ordinance of the Federal Depa rtment of Justice and Peace (DFJP) on 
automatic weighing machinery 19 March 2006 
(2 May 2006) 
RS 941.231  Ordinance of the Federal Depa rtment of Justice and Peace (DFJP) on 
instruments for measuring thermal energy 19 March 2006 
(2 May 2006) 
RS 941.241   Ordinance of the Federal De partment of Justice and Peace (DFJP) on 
instruments for measuring volumes of gas 19 March 2006 
(2 May 2006) 
RS 941.242   Ordinance of the Federal De partment of Justice and Peace (DFJP) on 
apparatus for measuring exhaust gase s from combustion engines (OAGE) 19 March 2006 
(2 May 2006) 
RS 941.251 Ordinance of the Federal Depa rtment of Justice and Peace (DFJP) on 
instruments for measuring electrical energy and power 19 March 2006 
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 Page xiii 
 
 
 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 942.20 Law on price surveillance (LSPr) 20 December 1985 
(13 June 2006) 
RS 942.211 Ordinance on notification of  prices (OIP) 11 December 1978 
(1 April 2007) 
RS 943.02 Federal Law on the internal market (LMI) 6 October 1995 
(20 June 2006) 
RS 944.0 Federal Law on consumer information (LIC) 5 October 1990 
(27 November 2001) 
RS 946.10 Federal Law on Swiss insurance agai nst export risks (LASRE)  16 December 2005 
(16 May 2006) 
RS 946.101 Ordinance on Swiss insurance against export risks (OASRE) 25 October 2006 
(1 May 2008) 
RS 946.14 Federal Law on export promotion 6 October 2000 
(13 June 2003) 
RS 946.201 Federal Law on external economic measures 25 June 1982 
(1 May 2007) 
RS 946.202 Federal Law on the control of goods for civilian and military purposes 
and specific military goods (Law on the control of goods, LCB)   13 December 1996 
(27 July 2004) 
RS 946.231 Federal Law on the application of international sanctions (Embargos 
Law, LEmb) 22 March 2002 
(27 July 2004) 
RS 946.201.1 Ordinance on monitoring the import  of certain industrial goods 11 September 2002 
(15 October 2002) 
RS 946.202.1 Ordinance on the export, import and transit of goods for civilian and 
military purposes and specific military goods (Ordinance on the control 
of goods, OCB) 25 June 1997 
(1 March 2008) 
RS 946.31 Ordinance on attestation of the non-preferential origin of goods (Oor) 9 April 2008 
(1 May 2008) 
RS 946.231.11   Ordinance on international trade in rough diamonds (Diamonds 
Ordinance) 29 November 2002 
(18 December 2007) 
RS 946.39 Ordinance on rules of origin governing the granting of tariff preferences 
to developing countries (Ordinan ce on rules of origin, OROPD) 17 April 1996 
(1 May 2008) 
RS 946.202.21 Ordinance on the control of ch emical products for civilian and military 
purposes (Ordinance on the control of chemical products, OCPCh) 17 October 2007 
(1 January 2008) 
RS 946.51 Federal Law on technical barri ers to trade (LETC)  6 October 1995 
(7 May 2002) 
RS 946.512 Ordinance on the Swiss system fo r accreditation and designation of test 
laboratories and conformity assessme nt, registration and approval bodies 
(Ordinance on accreditation and designation, OaccD) 17 June 1996 
(1 December 2007) 
RS 951.11  Federal Law on the Swiss National Bank (Law on the National Bank, 
LBN) 3 October 2003  
(1 January 2008) 
RS 951.31 Federal Law on collective invest ment schemes (Collective Investment 
Law, LPCC) 23 June 2006 
(1 January 2007) 
RS 951.311 Ordinance on collective investme nt schemes (Collective Investment 
Ordinance, OPCC) 22 November 2006 
(1 March 2008) 
RS 951.312 Ordinance of the Federal Banking Commission (CFB) on collective 
investment schemes (OPCC-CFB)  21 December 2006 
(15 February 
RS 951.93 Federal Law on zones unde r economic renewal 6 October 1995 
(2 November 2006) 
RS 952.0 Federal Law on banks and savings banks (Banking Law, LB) 8 November 1934 
(27 December 2006) 
RS 952.02 Ordinance on banks and savings banks (Banking Ordinance, OB) 17 May 1972 
(1 April 2008) 
RS 951.931.1 Ordinance on the determination of  economic zones under renewal 12 June 2002 
(1 January 2008) WT/TPR/S/208 Trade Policy Review 
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 RS or Law Number Legislation a nd acronym Date of law (as at) 
RS 954.1 Federal Law on stock exchanges an d securities trading (Stock Exchange 
Law, LBVM) 24 March 1995 
(1 January 2008) 
RS 954.11 Ordinance on stock exchanges and securities tr ading (Stock Exchange 
Ordinance, OBVM) 2 December 1996 
(7 November 2006) 
RS 954.193 Ordinance of the Federal Banking Commission (CFB) on stock 
exchanges and securities trading (C FD Ordinance on stock exchanges, 
OBVM-CFB) 25 June 1997 
(1 December 2007) 
RS 954.195.1 Ordinance of the Takeover Bo ard on public takeover offers (Ordinance 
on takeover offers, OOPA) 21 July 1997 
(23 June 1998) 
RS 955.0 Federal Law on combating mone y laundering in the financial sector 
(Money Laundering Law, LBA)  10 October 1997 
(19 December 2006) 
RS 961.01 Federal Law on the surveillan ce of insurance co mpanies (Insurance 
Surveillance Law, LSA) 17 December 2004 
(13 June 2006) 
 
 Switzerland and Liechtenstein WT/TPR/S/208 
 Page xv 
 
 
 SUMMARY OBSERVATIONS 
(1) T HE ECONOMIC ENVIRONMENT  
1. Switzerland and Liechtenstein are 
among the wealthiest countries in the world, 
with GDP per capita of over US$50,000 each 
in 2006.  Since their last TPR, their economies have grown on average by 2.7% per year for Switzerland and 2.2% for Liechtenstein, led by exports and private consumption.  External 
trade (including access to foreign markets) is 
central to both economies;  their ratios of external trade to GDP exceed 100%.  The growth in both countries has been coupled with declining unemployment.  Given their dependency on international trade, their 
economies remain sensitive to developments 
in the global economy. 
2. Under the 1980 Monetary Union 
Arrangement with Liechtenstein, Switzerland formulates monetary policy for both countries.  
Despite their strong economic growth, the 
depreciation, until recently, of the Swiss franc vis-à-vis the euro, and increasingly high 
energy prices, inflation has generally remained below the 2% ceiling set by the Swiss National Bank (SNB) for price stability purposes. 
3. Switzerland has been pursuing a 
rigorous fiscal policy, seeking to reduce the deficit that had built up.  As a result of the implementation of the debt brake rule, designed to contain the Confederation's 
expenditures, and the 2003 and 2004 
Budgetary Relief Programmes, the Confederation's budget deficit (excluding extraordinary expenditu res) has been in 
surplus since 2005.  In Liechtenstein, the 
current account of the national budget has 
generally been in surplus, except for a deficit in 2004 caused by stock exchange movements. 
4. Both economies are dominated by the 
services sector.  Their manufacturing sectors are largely specialized in high-technology and 
knowledge-based production, reflecting their 
comparative advantages.  The agriculture sector has remained highly protected, despite its marginal economic importance (in terms of 
contribution to GDP and employment).  This has contributed to the continuing high domestic prices of agricultural (and food) 
products, by international comparison, despite 
the reforms under way in the sector. 
5. Both countries are also net exporters 
of services.  Financial services represent the most important branch of the sector.  
However, high production costs and low 
productivity growth have curtailed the development of branches such as tourism, and contributed to maintaining high prices (by international comparison) in both Switzerland and Liechtenstein.  
6. Merchandise trade by Switzerland and 
Liechtenstein is dominated by manufactured products.  Switzerland's main imports include machinery, transport equipment and chemicals, and its main exports include 
chemical products, machinery, electronics, 
watches, and precision instruments.  Imports to Liechtenstein are dominated by machines and electronics, and metals and metal manufactures, while its main exports include high-tech construction products, electronics, 
car parts, dental products, and processed 
agricultural products.  The European Communities (EC) remains the largest trading partner of both Switzerland and Liechtenstein, with the United States remaining the main 
non-European partner.  Within the EC, 
Germany remains the main single supplier and the main single destination.  The share of merchandise imports under bilateral and regional trade agreements (preferential 
regimes) remained at around 42% of the total 
over 2003-07.  
(2) I
NSTITUTIONAL FRAMEWORK  
7. Under their 1923 Customs Union 
Treaty, Switzerland acts on behalf of Liechtenstein in customs union issues, such as 
trade policy measures affecting imports, and 
agricultural policy.  The Swiss trade regime for goods generally applies to Liechtenstein's trade with all countries, except with WT/TPR/S/208 Trade Policy Review 
Page xvi 
 
 
 Liechtenstein's European Economic Area 
(EEA) partners.  In this case, EEA rules apply in all areas except agriculture.   
8. To guarantee that the Swiss import 
regime is respected, Liechtenstein implements 
a Market Control and Surveillance Mechanism 
on imports subject to trade policy measures that are different in the EEA – of which it is member – and Switzerland.  Trade-related 
areas where Liechtenstein maintains its own 
legislation include services, government procurement, consumer protection, investment, 
and in some areas of intellectual property.   
9. The WTO remains central to the trade 
policy of Switzerland and Liechtenstein.  They 
accord at least MFN treatment to all trading 
partners, and great importance to the development of multilateral rules, primarily within the framework of the WTO.  Emphasis is also put on export promotion, to ensure that 
Swiss and Liechtenstein companies are able to 
take advantage of improved market access.   
10. At the bilateral level, priority is given 
by Switzerland to trade liberalization with the EC, which is by far Switzerland's largest trade and investment partner.  Switzerland's 
relations with the EC are governed by a set of 
bilateral agreements, including the 1972 FTA, the 1989 Insurance Agreement, the 1999 Bilateral Agreements I, and the 2004 Bilateral Agreements II.  The Bilateral Agreements I, 
mainly involving classic market liberalization, 
were put into force on 1 June 2002.  The Bilateral Agreements II were signed on 26 October 2004 and have entered into force individually.  All agreements, except the 
Agreement on Fighting against Fraud, are 
currently in force.  The bilateral agreements with the expanding EC have resulted in notable market liberalization between the two partners, and considerable convergence of Swiss regulations to those of the EC.  The 
implementation of the free movement of 
labour with the EC has been considered as one of the key factors in Switzerland's economic growth. 11. Through their EFTA membership, 
Switzerland and Liechtenstein have concluded FTAs with 15 trading partners.  Switzerland plans to negotiate new preferential agreements 
(including with MERCOSUR, China, India, 
and Russia) in order to accelerate its trade liberalization process, but also in order not to be "left behind".  The FTAs increasingly cover services, investment, and government 
procurement, in addition to trade in goods, 
IPRs, and competition.  In general, agreements on trade in goods concluded by Switzerland apply also to Liechtenstein under the Customs Union Treaty.  Participation by Switzerland and Liechtenstein in various preferential trade 
agreements makes the administration of their 
external trade regime somewhat complex. 
12. Switzerland and Liechtenstein have 
established favourable conditions for investors, based on a stable business 
environment and an attractive taxation system.  
In Switzerland, most economic sectors are open to investments (both Swiss and foreign).  However, investment restrictions are maintained in areas under state monopolies, including rail transport, some postal services, 
and certain insurance services, and commercial 
activities (e.g. trade in salt).  Restrictions (in the form of domicile requirements) are also applied in hydroelectric and nuclear power, operation of oil pipelines, transportation of 
explosive materials, and air and maritime 
transport.  In Liechtenstein, some controls  are in force on the purchase of real estate and restrictions are maintained on a certain number of financial services (i.e. asset management, 
investment consulting, and assuming 
trusteeships) provided on a professional basis by trustees or trust companies. 
(3) T
RADE POLICY INSTRUMENTS  
13. Since their previous Review in 2004, 
Switzerland and Liechtens tein have continued 
the process of harmonizing their trade policy 
instruments with those of the EC.  Under the 1923 Customs Union Treaty, the Swiss tariff applies, with exceptions (e.g. imports by Liechtenstein from the other EEA countries) to Switzerland and Liechtenstein WT/TPR/S/208 
 Page xvii 
 
 
 imports to both countries.  Their entire applied 
MFN tariff is specific, with ad valorem  
equivalents (AVEs) averaging 8.1% (down from 9.3% in 2004) and ranging from zero 
(18.4% of all tariff lines) to 1,468.7% (on offal 
of frozen bovine other than tongue and liver).  The decrease in the 2008 AVEs over their 2004 levels, to a large extent, reflects an upward trend in import prices, particularly of 
agricultural products. 
14. The tariff rates are highly dispersed, 
with a coefficient of variation of 4.8 (4.6 in 2004);  the high dispersion of the rates is a consequence of specific tariffs (with highly dispersed AVEs), and of very high tariffs, of 
29.4% on average, on agricultural products 
(WTO definition) and generally low rates, of 2%, on non-agricultural products.  Using the ISIC (Revision 2) definition, the average tariff is also higher for agriculture (22.7%) than for 
manufacturing (6.9%), and mining and 
quarrying (0.5%). 
15. In the Uruguay Round, Switzerland 
and Liechtenstein bound their tariff lines using specific customs duties on agricultural products, and alternate duties (the higher of 
specific or ad valorem  tariffs) on other 
products.  Some 99% of all tariff lines at the HS eight-digit level are currently bound; the exceptions are 86 lines covering gas, petroleum, and related products.  "Other duties 
and charges" on imports were bound at zero.  
However, imports of goods, that are subject to compulsory reserve-stock requirements, are levied relatively high fees to finance these reserve stocks;  the fees are not collected by 
the Federal Customs Administration but by 
other bodies such as Réservesuisse. 
16. Switzerland and Liechtenstein 
continue to apply automatic and non-automatic licences.  Import licensing is maintained mainly to manage tariff quotas and 
compulsory reserve stock requirements, as 
well as on health, security, and environmental grounds.  The licensing regime, including the tariff-quota management system, remains complex.  Under their SPS regime, Switzerland and Liechtenstein allow imports 
only from establishments certified by the EC as complying with its requirements.  Switzerland and Liechtenstein have never 
applied any anti-dumping or countervailing 
measures;  during the period under review, they have not imposed any safeguard measures.   
17. In Switzerland, assistance is granted to 
businesses, both at the federal and cantonal 
levels, in particular in rural areas.  The main types of federal support consist of financial 
transfers and tax exemptions. Switzerland continues to subsidize exports of agricultural products (including da iry products, cattle and 
horses, fruit, potatoes, and processed 
products), mainly under the Price Compensation Mechanism.  In addition, the threshold price system on imports of selected agricultural products provides for tariff 
adjustments to maintain stable domestic prices 
for these goods.  Following an evaluation of its subsidy programmes, Switzerland plans to phase out export subsidies for basic agricultural products by January 2010. 
18. The 2003 reform of the Cartel Act 
strengthened the Swiss competition regime.  
Nevertheless, competition remains somewhat limited in areas such as agriculture, health care, and public transport contributing to higher prices.  Exclusive or monopoly rights 
have been reduced gradually in certain sectors 
in Liechtenstein.  Liechtenstein does not have national competition legislation;  competition issues are dealt with mainly under the EEA and EFTA.  Swiss legislation on intellectual 
property (IP) has undergone several revisions 
since 2004, mainly to keep pace with technological developments and to harmonize it with EC legislation and other treaties.  Liechtenstein continues to use the Swiss patent legislation, but has its own legislation on 
copyrights, trade marks, and industrial designs. 
(4) S
ECTORAL TRADE POLICIES  
19. The services sector is the backbone of 
the Swiss and Liechtenstein economies.  Both WT/TPR/S/208 Trade Policy Review 
Page xviii 
 
 
 countries are net exporters of services.  The 
commitments made by Switzerland and Liechtenstein under the GATS largely reflect the state of liberalization at the time of their 
negotiations.  Switzerland submitted a revised 
offer in the DDA services negotiations in June 2005, but this did not go beyond the state of liberalization of its services sector.  Its requests target mainly financial services and 
intra-corporate transfers.  Switzerland has 
remained one of the most important financial centres in the world, with private banking being by far the most important subsector.  Financial services remain of paramount importance to Liechtenstein's economy;  the 
subsector has grown str ongly during the period 
under review. 
20. The agriculture sector is still subject to 
substantial state intervention in Switzerland and Liechtenstein.  Although of minor 
economic importance, agriculture (ISIC, 
Revision 2) has remained the most tariff-protected sector of the customs union, with a simple average tariff of 22.7%.  Tariffs are particularly high in the meat and dairy subsectors.  Switzerland's outlays for direct 
payments have remained high, attaining 
Sw F 2,500 million in 2006;  its Producer Support Estimate was equivalent to 65% of gross receipts from agricultural products, down from 74% in 2003.  Liechtenstein 
maintains its own direct payments system, 
albeit for limited quantities of production. 
21. The agricultural policy is aimed at 
converting product-specific price support into non-specific direct payments, and phasing out 
export subsidies which currently consist of 
price support, and of direct contributions to reduce the costs of inputs, used mainly by agri-industries, under the Price Compensation Mechanism.  The latter is in place to compensate for high domestic prices of locally 
produced raw materials used as inputs by 
export-oriented domestic agri-industries.  A threshold price system is aimed at maintaining stable domestic prices of selected agricultural 
products.   
22. The Swiss and Liechtenstein 
manufacturing sectors are characterized by 
high R&D-intensity and specialization;  
competitiveness has been increased through the consistent outsourcing of cost-sensitive processes.  Apart from incentives schemes mostly oriented towards the processing of 
agricultural products, Switzerland and 
Liechtenstein do not have policies specific to manufacturing.  The manufacturing sector  (ISIC, Revision 2) accounts for nearly 98% of merchandise exports from Switzerland and almost 100% from Liechtenstein.  Tariffs in 
the sector are low (at 6.9% on average), except 
on certain textile products. 
(5) T
RADE POLICY AND TRADING 
 P ARTNERS  
23. Switzerland and Liechtenstein have 
pursued the liberalization of their trade regime 
through multilateral, re gional, and bilateral 
agreements.  In particular, Switzerland's recent reforms have further aligned its trade regime on the EC's;  Liechtenstein has participated in areas of interest to it but not covered by the 
EEA.  Nonetheless, participation by 
Switzerland and Liechtenstein in various preferential trade agreements makes their trade regimes further complex with a potential risk of diversion. 
24. The current high world prices of 
agricultural products provide Switzerland and Liechtenstein the opportunity to liberalize their agriculture, which is still afforded relatively high protection.  Both countries intend to take 
this opportunity to eliminate export subsidies 
for basic agricultural products.  Further reforms through reduction/elimination of tariffs and subsidies, mainly for agricultural products, would bene fit consumers and 
improve resource allocation.