Source: EURLEX
Language: en
Format: md

### **`COMMISSION OF THE EUROPEAN COMMUNITIES`**

```
                      COM(93) 486 final

                       Brussels, 1 October 1993

           COMMUNICATION FROM THE COMMISSION

         Future relations with Switzerland

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**EXPLANATORY MEMORANDUM**

**The Community and Switzerland: future relations**

##### **_<L_**

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In a referendum held on 6 December 1992, the Swiss electorate
rejected the EEA Agreement, causing substantial delay in its
entry into force with respect to the other parties to the
Agreement. The Swiss government has made it clear that
although the options of EEA and, indeed, Community membership
remain open, no action will be taken until the time is ripe.
In the meantime, Switzerland has requested the opening of
negotiations with a view to the conclusion of new bilateral
agreements in a wide range of areas. At its meeting of 14
September 1993, the Commission formally agreed the general
approach set out in this note.

It is proposed that negotiations be opened in a number of
areas, with a view to the conclusion of new sectoral
agreements between the Community and Switzerland on the basis
of an overall balance of mutual advantage. It is further
proposed that negotiations be opened first in the areas of air
and road transport and of free movement of persons. At an
appropriate time, a definition of priorities could take place,
allowing negotiations in other areas (e.g. research and market
access for agricultural goods), in accordance with the general
principles outlined in this paper, and with the aim of
advancing the Community's interests.

The Council is asked to endorse the approach which the
Commission proposes to take with regard to future relations
with Switzerland. The first concrete application of this
approach will be in the context of negotiations in the areas
of air and road transport, and of free movement of persons.

```

### **±o.**

```
    The community and Switzerland; future relations

Context

1. On 2 May 1992, the European Community and its member
   States, and the member States of the European Free Trade
   Association, concluded an Agreement establishing a
   European Economic Area (EEA), designed to extend the
   benefits of the Single Market, including the freedom of
   movement of goods, services, capital and persons, to a
   total of nineteen countries, and to broaden and
   strengthen cooperation in other areas.

2. In parallel with the EEA Agreement, Switzerland
   established bilateral Agreements with the Community in
   the areas of trade in agricultural products and of
   transit facilities for transport of goods by road and
   rail. The latter Agreement, providing for the
   construction of two major rail tunnels through the Alps,
   was ratified by referendum on 27 September 1992.

3. In a further referendum held on 6 December 1992, however,
   the Swiss electorate rejected the EEA Agreement, causing
   substantial delay in its entry into force with respect to
   the other parties to the Agreement. In the case of
   Switzerland, the existing bilateral Free Trade Agreement,
   dating from 1972, will remain the primary institutional
   framework for cooperation. Switzerland, which applied
   for membership of the Community in May 1992, finds its
   road to closer European integration effectively blocked.

4. The Swiss government has made it clear that although the
  . options of EEA and, indeed, Community membership remain
   open, no action will be taken until the time is ripe;
   most recent indications are that this will not be until
   1995 at the earliest. In the meantime, Switzerland has
   requested the opening of negotiations with a view to the
   conclusion of new bilateral agreements in a wide range of
   areas.. This interest was again expressed in the course
   of the visit to the Commission on 28 June of Swiss
   Foreign Minister Flavio Cotti, and of Economics Minister
   Jean-Pascal Delamuraz.

```

```
5. In addition to the 1972 Free Trade Agreement, Switzerland
   and the Community have, over the years, concluded a
   number of sectoral agreements, notably concerning non   life insurance and the products of the clock and watch
   industry; most, however, are of minor significance. A
   full list of existing agreements is attached in Annexe I.

6. Switzerland is now anxious to obtain access to the Single
   Market and to certain Community programmes, as envisaged
   under the EEA Agreement. Of greatest interest to the
   Swiss side are air and road transport and research; other
   areas include education, mutual recognition of diplomas,
   statistics, and cooperation in film and TV (MEDIA).
   Areas more directly related to trade, and to the
   operation of the existing Free Trade Agreement, include
   rules of origin; trade in processed agricultural
   products; technical barriers to trade (mutual recognition
   of tests and certificates); liberalisation of public
   procurement; product liability; animal and plant health;
   and intellectual property.

7. Since the meeting of the Joint Committee of the Free
   Trade Agreement on 5 February 1993, at which Switzerland
   first formally presented its requests, work has been
   underway within the Commission services, with the
   intention of achieving a broad overview of relations,
   present and future, establishing the Community's
   interests, and defining a balanced approach. At its
   meeting of 14 September 1993, the Commission formally
   agreed the general approach set out in this note.

General parameters

8. Switzerland is part of Europe. Although membership of
   either the EEA or the Community itself is clearly not
   possible in the short term, Community policy needs to
   retain a certain flexibility. The door should be left
   open for the future.

9. The economic relationship between Switzerland and the
   Community is mutually beneficial; it would be regrettable
   were it to deteriorate significantly as a result of the
   rejection of the EEA. Switzerland is among the
   Community's most important trading partners, being its
   second largest individual export market (after the US)
   and third largest source of imports (after the US and
   Japan).

```

```
10. It is in the interest of the Community to preserve this
   positive relationship. Swiss requests should, however,
   be considered on a strict basis of mutual advantage and
   without undermining the EEA. It would be inappropriate
   for Switzerland to obtain all the advantages of an
   Agreement which it has rejected, and whose entry into
   force has been so long delayed as a result.

11. It is clear that any strengthening of cooperation will
   need to be on the basis of an overall balance of mutual
   advantage. In some areas, the conclusion of a new
   agreement would be of value only to Switzerland; in
   others, of mutual benefit. The Community now has an
   opportunity to advance its own interests, either by
   obtaining satisfactory agreements in areas of mutual
   benefit, or by ensuring that a Swiss demand is
   counterbalanced by a Community demand of similar weight.

12. Given the nature of Swiss democracy, and the role of
   referenda under the Swiss Constitution, it would be
   appropriate explicitly to link agreements in different
   areas; otherwise elements of value to the Community could
   be rejected subsequently by referendum. The linkage
   mechanism would thus need to cover not only the
   ratification and entry into force of agreements, but also
   the period thereafter (cf. Annexe VI).

13. Any agreement would need to deal satisfactorily with the
   implementation of the Community acquis and the need for
   Switzerland to accept the discipline involved.
   Agreements could also be limited in duration, their
   renewal made dependant on a positive decision of the
   Council following a proposal by the Commission.

Proposed action

14. It is proposed that, on the basis of the considerations
   outlined above, negotiations be opened in a number of
   areas, to be defined in consultation with those members
   of the College directly concerned, with a view to the
   conclusion of new sectoral agreements between the
   Community and Switzerland on the basis of an overall
   balance of mutual advantage.

```

```
15. It is further proposed that negotiations be opened first
   in the areas of air and road transport (cf. Annexes II
   and III), and of free movement of persons (cf. Annexes IV
   and V). Both are essential building blocks in the
   construction of the new Europe, and of immediate concern
   to the citizen; both relate directly to the Four Freedoms
   on which the Single Market, and the philosophy of the
   Community, are based.

16. In the area of transport, the Ministers for Transport,
   meeting within the Council on 7 June 1993, noted the
   intention of the Commission to submit, in view of the
   Meeting of the Transport Council on 28 September, a
   Recommendation for a Decision authorising it to open
   negotiations with Switzerland in the areas of air and
   road transport, this Recommendation to be accompanied by
   a draft negotiating mandate and by an analysis of
   relevant aspects of relations in the area of Transport
   and in the broader context of relations between the
   Community and Switzerland.

17. The Transit Agreement resolves a number of concerns in
   the area of road and rail transport, but does not address
   all problems. Given the small size of the Swiss market
   generally and, in road transport, the continuation of
   existing restrictions on operations involving vehicles
   over 28 tonnes, it is clear that a new EC-Switzerland
   agreement, giving Swiss economic operators access to the
   huge Community air and road transport markets, is
   preponderantly in the interest of Switzerland. The
   conclusions of the June Transport Council, however, are
   clear.

18. The area of free movement of persons is clearly of
   considerable importance for the Community and its member
   States. A very significant number of Community citizens
   are already resident or working in Switzerland. The
   objective of a new bilateral Agreement between the
   Community and Switzerland shall be the full
   implementation of the Community acquis in this area, as
   envisaged in the EEA Agreement; this includes provisions
   for free movement of workers, the right of establishment,
   the mutual recognition of diplomas, the coordination of
   social security, and the right of residence for students,
   pensioners and other non-active persons.

19. The decision to propose the negotiation of a new
   agreement in this area is made on its own merits, with
   the intention of counter-balancing Swiss interest in an
   agreement on transport, according to the principle that
   imbalance of interest requires compensation.

```

```
20. At an appropriate time, a definition of priorities could
   take place, allowing negotiations in other areas (e.g.
   research and market access for agricultural goods), in
   accordance with the general principles outlined in this
   paper, and with the aim of advancing the Community's
   interests.

Conclusions

21. The Council is asked to endorse the approach which the
   Commission proposes to take with regard to future
   relations with Switzerland. The first concrete
   application of this approach will be in the context of
   negotiations in the areas of air and road transport, and
   of free movement of persons.

Annex I: Existing Agreements between the Community and
         Switzerland

Annex II: Transport

Annex III: Background note, distributed to Ministers at
         the Transport Council of 7 June; extract from
         the conclusions of the Council.

Annex IV: Free movement of persons

Annex V: Statistics on Community citizens resident or
         employed in Switzerland, and on Swiss citizens
         resident within the Community.

Annex VI: Outline approach to linkage of agreements in
         different sectors.

```

**to**

**Title** **of** **Agreement** **Pole** **sirgnod** **Polo** **entered into** **fore»;** **Ouroticn**

**1.** **Agrrement** **on** **tho** **introduction of through** **inlernoticnol roilwoy toriffa** **for the corrioge of** **28.7.1956** **1.6.1957** **unlimited**
**cool** **through Swiss** **Urltory**

**2.** **Agreement** **concerning certoin** **cheeses** **29.6.1967** **1.7.1979** **unlimited**
**(initiolled)**

**3.** **Agrrement concerning** **product» of the** **clock ond wotcn industry** **between** **IN» European** **Economic** **30.6.1967** **1.1.1969** **uhtimheo** **W**
**Comunlly end Its ktorber** **Stotes** **end** **the Swiss Confederot ion** **>_.**

**w**

***.** **Additionol** **Agréèrent lo the Agréeront** **concerning products of** **the** **clock** **end** **wotch industry** **30.6.1967** **1.1** **1968** **UMimltec** _**rr**_

**5.** **Agréeront** **between** **the Wfcrfcer Stotes of the** **ECSC** **end the S»iss Cenfoderolion** **22.7.1972** **1.1.197*** **uniimiteo** **Jj**

**Addticnol** **Agreement concerning the** **volidity** **ol** **trvj** **Agreement lor the** **Principality** **of** **>**

**Liechtenstein** **^**
_**Q**_
**6.** **Agreement** **between** **the Européen** **Economic** **Ccmxnity and the** **Swiss Ccnfoderotien** **22.7.1972** **1.1.1973** **Unlimited** _**Q**_

**-** **3**
**7.** **Agréèrent on the «pplicotion of the rules en Ccrtmunity** **Tronsit** **23.ti.l97J** **1.1.197e** **unlimited** **§**
**' • * * ' ' ' .** **rr**
**8.** **Exchange of letters** **between** **the** **Cormission end** **the** **S»iss** **Confederoticn concerning** **recognition** **5.(2.1974** **/** **oni.m.tco** **w**
**by the Swiss** **Oulhorilies** **of the** **loissei-pcsser** **issued ty the** **Comxnilics** **to the members ond** **a** **a>**
**servents** **of the** **institutions** _**rt**_

**9.** **Agréeront** **in the** **form** **of on exchange of letters between** **the Ccnrnissicn** **ol the** **Européen** **12.12.1975** **12.12.1975** **uni imitée** _**t**_ _**\**_
**Comunlties ond Switterlend eonceming** **coeperoticn on** **cnvirormentol matters** **5** **>**

**10.** **Cocperolien ogreerent between** **the** _**Zute^on**_ **Atonic Energy** **Ccrmxnity** **end the Swiss Confederot ion** **?** **30.5.1979** **uniim.:ec** _**"***_ **Z** ***rv**
**in the field of controlled** **thermonucleor** **fusion end** **plosmo physics** **ft** **>»**
###### **11. Additionol Protocol lo the Agreement between the Européen Eoononic Comxnity end the Swiss 17.7.1980 11 1981 uni.*.tes ï I**

**Confederation consequent on the** **occessicn** **of the** **Hellenic** **Republic to the Camxnity** **(Renewed** **1.3.1963)** **Q**
**O**
**12.** **Addilionel** **Protoeol lo the Agreement** **between the Msnbcr** **Stotes of the ECSC and the Swiss** **6.11.1990** **1.3.1983** **Inimitée** **|**
**Confederolion** **consequent on the** **oecession** **of the Hellenic Republic to the** **Ccrmxnity** **(Renewed** **1.3.1983)** _**\**_

**13.** **Supplementary Protocol to the Additionol Agreement eonceming the** **volidity** **for the** **Principoiily** **6.11.1980** _**'**_ _**/**_ **um.n.-.ec** ***** **»-•**
**of Liechtenstein, of the** **Agreement** **between the** **Mfflber Stotes** **of the Europeno Cool ond Steel** **JT**
**Cemnlly end I N** **Swiss Confederolion consequent** **en** **the occessicn of the Hellenic Republic** **to**

**the** **Comxnl ly** **D**

**14.** **Agreement EEC Swiss Confederot** **ion** **on o concerted** **ocl** **ion project in** **ihe** **detection of the** **24.3.1932** **Inforced until** **">** **2.**

**tendency to** **thrombosis** **renewed** **31.3.193*** **00**

**21.3.19867** **Ç**

**15.** **Bilolerol RIO Cocperot Ion** **Agreement** **In** **the field of** **rodiccctive wos te rranooemen I** **between** **21.6.1934** **?** **for o period of (5** **yecrs** **ft**

**the International** **Cecperotive** **for the** **Sloroge** **of** **Rodioective Woste** **(CEERA Switzerland)** **rene-c&ie)**
**end the** **Européen** **Atonic Energy** **Cornvnlty**

**N**

**1**

**16.** **Agreement** **EEC** **- Swiss Confederot ion on direct Insurance other than** **life** **insurance** **initiol** **led 25.6.1982** **7** **?** **3**
**siçnod** **October 1989** **Q,**

**17.** **Agreement** **In,the form** **of** _**en**_ **exchange of letters** **EEC-Swiss** **Confederation founding** **diroct** **15.10.1984** **7** **Unlimited**
**coeperoticn** **between the authorities responsible for the prevention of** **froud**

Cu'c; **en**

Uni **,- ;ec**

**Uni if-ted**

uni . ^ ; e c

Un i in i • eC

_**\r-**_ _**•**_ **>••** _**\'.c**_

uni .-.. ;ec

**i.l.1583/31.12.1991** _**\**_

**I**

_**•t**_

**1939/1592**

**i9SO/i9S-i**

**2 yec's**

**5 years**

**I9S9/I992**

**5 yeors**

uoto siçneo

**18.** **Agreement in the form of on** **exchcnge** **of on exchange of letters** **EEG-9*isj Confodorortion** **16.11.1985**
**on** **I rode** **arrangements /or soups,** **souoos** **end condiment)**

**19.** **fromework** **Agreement for scientific** **end technicoi cccperotion** **8.1.1986**

**20.** **AddJUcnol** **Protocol to the** **ogreoment** **between** **the** **EEC** **end** **the Swiss Confederoticn** **consequent** **14.7.1986**
**on the occessicn of** **Ihe** **Kingdom of** **Sooin end tho Portuguese Republic** **to the** **Community**

**2'.** **Agreement in the form of** **en exehonçe** **of letters concerning** **ncn-ogriculturol end** **processed** **14.7.1S86**
**agricultural products not covered by** **the Agréeront bolwoen** **the EEC** **end** **the Swiss** **Confederoticn**

**22.** **Agreement in the form of** **en exchcnçe** **of letters** **between** **the EEC** **ond** **the Swiss** **Confederoticn** **14.7.1986**
**en agriculture and fisheries**

**23.** **Agreement** **between** **the ECSC end the** **S-iss** **Ccnfec-jrotcn censecvont en** **tho occessicn of the** **i«.7.1986**
**Kingdom of** **Spoin** **end** **tne PorluÇje&c** **R/JOUOI** **IC**

**24.** **Coeperoticn Agreement** **bet*>oon** **the EEC** **end** **S-iss** **Confederoticn** **on** **reseorch end** **develcpmont** **?**
**development in the field of** **ocvenced ro t e** _**t**_ **i c '** **s** **(EIR^M)**

**25.** **Supplementory** **Protocol to the Agreement** **between** **the EEC** **end** **the Swiss Ccnfed concerning the** **12.7.1589**
**el** **iminoticn** **ol** **exisi** **ling** **end preventien** **o'** **new quantitoiivc rcslrici lens** **of** **feeting** **exports**
**or** **moosuros** **having** **eouivolont efloct**

**26.** **Agreement between the EEC end the** **S-iss** **Ccnfoderotien** **concerning direct insurance** **olher then** **10.10.1989**
## **r life insurance "^ (. (**

**27.** **Agreement between the EEC** **end Ihe Swiss Ccnfoderotien en** **trode electronic** **ooto interchenge** **7.12.1989**
**systems**

**28.** **Cocperolien** **Agreement** **belwoen** **the EEC end the** **Swiss Confederolion** **in the field of** **modicol** **?**
_**k**_ **health** **Reseorch**

**29.** **Cccperotion** **Agreement between the EEC** _**cnt**_ **the** **Swiss** **Confederoticn** **on o** **prograrme** **lo** **?**
**slirruilole** **the** **international** **cccperotion ond** **interchange** **needed by Eurcpoon reseorch**
**scientists (Science)**

**30.** **Cooperation** **Agreement between the EEC end the Swiss** **Confederation** **on on Eurcpoon** **Slimuloticn** **?**
**Plan for Economic Science** **(SrES)**

**31.** **Agreement between the EEC** **end** **the Swiss** **Ccnfoderotien establishing cocperol** **ion in the field** **19.12.1989**
**of** **Iroining** **in the context of the** **impl«rental** **ion of** **Cornell M** **(1990-94)**

**32.** **Agreement laying** **down** **o procedure for the exchange of information in the field of** **technicol** **24.9.1990**
**Regulations**

**33.** **RIO Cocperol** **ton** **Agreement in the field of rodiooctive woste management between the** **Eurcpeon** **17.10.1990**
**Atonic Energy** **Community** **ond the** **Notianol** **Cooperative for the** **Storooo** **of** **Rodiooctive** **Woste**

(Swi **tier** **lend)**

**34.** **Cooperation** **Agreement between the EEC** **end** **the Swiss** **Confederot** **ien on o reseorch development** **8.5.1991**
**progr** **crime for the** **Eurcpeon** **Economic Community** **In** **the field of** **applied** **metrology end cnemicol**
**cnolysls**

**35.** **Agreement between the EEC ond the Swiss Ccnfoderotien establishing cccperotion in the field** **9.10** **1991**
**of education** **end iroining** **within the framework of the** **Erosmus Prograrme**

**Pole entered into force**

**1.1.1986**

**17.7.1937**

```
1.3.1986 (According to
Article 18)

 i.ii.1990

 1.2.1990

 1.2.1990

```

**i l** **i990**

**i.7.1990**

**17.10.1990**

**8.5.1991**

```
                ANNEXE II

                TRANSPORT

The Transit Agreement between the Community and Switzerland
entered force on 22 January 1993. In the Agreement, reference
is made to the need for liberalisation in the areas of air and
road transport, as envisaged in the context of the EEA.

Following Switzerland's rejection of the EEA in December 1992,
Swiss President and Minister for Transport Ogi wrote to
Commissioner Matutes, in a letter dated 25 February 1993,
requesting the opening of formal negotiations in the air
transport sector.

In the road sector, the Swiss side considers that the EC is
obliged to begin negotiations based on the text of Annexe 8 of
the Transit Agreement.

On 7 June 1993, the Ministers for Transport, meeting within
the Council, noted the intention of the Commission to submit,
in view of the Meeting of the Transport Council on 28
September, a Recommendation for a Decision authorising it to
open negotiations with Switzerland in the areas of air and
road transport, this Recommendation to be accompanied by a
draft negotiating mandate and by an analysis of relevant
aspects of relations in the area of Transport and in the
broader context of relations between the Community and
Switzerland.

Draft negotiating directives on air and road transport will be
presented to the Commission for its approval on 22 September.

A copy of a background note, distributed to Ministers at the
Transport Council of 7 June, and an extract from the
conclusions of the Council, are attached as Annexe III.

```

```
KUKOi'KAN COMMUNiTii-::;

   TUB COUNCIL

NOTE

from the General Secretariat

to Deiegat: tons

```

```
ANNEX III

   7 0G9/93

   RESTREINT

  TRANS •»"/ 3

   AER * 11

```

```
UtuiinolfJ, 3 June I993

```

```
Subject: Relations v/ith Switzerland in the field of transport

Delegations will find in the Annex a background note for the

Commission's report that the Commission will present on the

abovementioned subject at the session of the Council on

7 June 1993. "»

   The General Secretariat of the Council received this note only
   1 n Enq 1 1 r;h

'Of,c,/» n s h •EN

                                            1

```

- * * * *

_**•fir**_ *****

**ANNEX I I I**

COMMISSION OF THE EUROPEAN COMMUNITIES _%JO_

**DIRECTORATE-GENERAL FOR TRANSPORT**

Brussels, **1 June 1993**

NOTE FOR THE ATTENTION OF MEMBERS OF THE COUNCIL

Subject: Transport relations with Switzerland

      - point 6 of the Council Agenda

This note is intended to serve as background to the Commission's report **on this issue**
at the Council's session on 7 June.

1. INTRODUCTION

The Transit Agreement between the Community and Switzerland entered **into** **force**
on 22 January 1993. In the Agreement reference is made
to the need for liberalisation in the areas of road and air transport, as **envisaged** in
the context of the EEA.

In the case of road transport. Article 13 of the Agreement, together **with an**
exchange of letters (Annex 8), provides that in the event of the EEA not coming
into being, the Community and Switzerland should begin negotiations with a view
to granting reciprocal access to transport markets in accordance with arrangements
to be determined.

In the case of air transport, at the conclusion of the Agreement, the Community and
Switzerland made a joint declaration in the agreed minutes, emphasising **the**
importance of fruitful cooperation and liberalisation in this field, and expressing **the**
view that a solution should be reached as quickly as possible on the basis **of the**
Community acquis.

Following Switzerland's rejection of the EEA in December 1992, the Swiss
President Mr OGI wrote to Commissioner MATUTES, in a letter dated 25 **February**
1993, requesting the opening of formal negotiations in the air transport **sector.**

In the road sector, the Swiss side would appear to consider that the EC is **obliged**
to begin negotiations based on the text of Annex 8 of the Transit **Agreement**
referred to above.

**Rue de fa** **Col** **200 -** **B-1049** **Brussels - Belgium**
**Tal«phon«:** **direct** **line** **296** **exchange** **299.1** **1.11** **- Telefax 296.83.35**
**Tcfcx COMEU b 21877** **- Telegraphic address** **COMEUR** **Brussels**
**pbint6** _**tr'**_

**I l**

2. EXPLORATORY CONVERSATIONS

Following the Swiss request, the Commission has undertaken a series of exploratory
conversations with Switzerland, on 4 March (general), 22 April (road), 29 April (air)
and 18 May (road). In addition, Commissioner MATUTES visited Switzerland on 29
March for discussions with Mr OGI in the latter's capacity as Swiss Transport
Minister.

Member States have been informed of the details of these discussions through the
Transport Working Group.

3. COMMISSION'S OVERALL IMPRESSION

A. General Issues

Switzerland is very anxious for negotiations, largely for internal policy reasons.
These include firstly a desire to show that the EC has not turned its back on
Switzerland following the rejection of the EEA. In the Swiss view, a decision
to begin negotiations would also be helpful in the context of planning for the
construction of the new trans-Alpine tunnels, where questions have been raised
over costs.

Relations between the EC and Switzerland in the transport sector need to be set
in the context of the wider bilateral relationship. It will be necessary to study
these questions carefully, with a view to ensuring their correct articulation
within the globality of bilateral relations; an explicit recognition of this fact
would bo useful.

Any negotiations would also need to address the issue of relations between
Switzerland and its EFTA partners within the EEA.

B. Road Transoort

Switzerland is ready to accept the Community acquis almost in its entirety. It
seeks to benefit within the EC market from the provisions of Regulation 881/92,
while maintaining the limit of 28 tonnes for access to its territory (other than
the exceptions foreseen in the Transit Agreement).

So long as the 28 tonne limit applies to all bilateral traffic on Swiss territory,
any agreement on road transport of goods will be inherently unbalanced in
favour of Switzerland. While Switzerland seek to maintain the 28 tonne limit

on both transit and bilateral traffic, they have shown some flexibility _m_ being
prepared to discuss the issue.

The Community may however have something to gain from an agreement
liberalising passenger transport by road.

C. Air Transoort

An Agreement with Switzerland would be possible on the basis of the 3rd
package or something slightly less (application on cabotage at a second stage)Switzerland has shown some indications of flexibility regarding the institutional
aspects of enforcement of competition rules.

### **12.**

The Commission would see possible benefits for the Community in such an
agreement, providing: (i) a satisfactory institutional basis could be developed,
(ii) there were appropriate consultation mechanisms regarding Switzerland's air
relations with third countries and (iii) it would not prevent the Community
developing a broader aviation area with other European countries.

D. Other Areas

The EC has little interest in expanding the discussions to cover other transport
modes (inland waterways, rail).

```
13

```

```
Extract from the conclusions of the Transport Council, 7 June
1993; Council Secretariat doc. 7039/93.

    RELATIONS AVEC LA SUISSE EN MATIERE DE TRANSPORTS

   Le Conseil, après un échange de vues sur la base
d'informations fournies par la Commission concernant les
contacts exploratoires informels entrepris avec la Suisse en
matière de transports, a pris note de l'intention de la
Commission de lui soumettre, en vue de la session du Conseil
"Transports" du mois de septembre prochain, une recommandation
de décision en vue de l'autoriser à ouvrir des négociations
avec la Suisse dans les domaines des transports routiers et
aériens. Cette recommandation sera assortie d'un projet de
mandat de négociation et accompagnée d'une analyse des aspects
pertinents des relations entre la Communauté et la Suisse dans
le domaine des transports et dans le contexte global des
relations entre les deux parties.

```

```
14

```

```
                ANNEX IV

           FREE MOVEMENT OP PERSONS

Switzerland's rejection of the EEA on 6 December 1992 meant
that the reform of Swiss legislation on foreigners, as
envisaged in the Agreement, will not now take place as
planned. While the Swiss Government has committed itself to
liberalising its legislation, with a view to greater "Eurocompatibility", steps taken to date are of minor significance.

Free movement of persons is clearly of considerable importance
for the Community and its member States. Certain member
States have informally made clear that their consent to
agreements in other areas is conditional on a satisfactory
result in the area of free movement of persons.

The objective of a new bilateral Agreement between the
Community and Switzerland should be the full implementation of
the Community acquis in this area, as envisaged in the EEA
Agreement; this includes provisions for free movement of
workers, the right of establishment, the mutual recognition of
diplomas, the coordination of social security, and the right
of residence for students, pensioners and other non-active

persons.

Significant numbers of Community citizens (648,241 in December
1992) are already resident or employed in Switzerland. They
include frontier workers (Type G work permit), recruited in
border regions, who cross the border to work every day;
seasonal workers (Type A work permit), mostly employed in
construction, tourism and agriculture, who are allowed to work
in Switzerland for a maximum of nine months per year, have no
right to unemployment benefit at the end of that period, and
may not bring their families with them; and residents, with
two kinds of status; Type B, an annually renewable permit, and
Type C, granted to holders of Type B permits after five years,
and giving the status of permanent foreign resident.

Member States whose citizens work as frontier workers are
primarily France, Germany and Italy; seasonal workers come
primarily from Italy, Spain and Portugal.

Statistics on EC citizens resident or employed in Switzerland,
and on Swiss citizens resident in the European Community, are
attached in Annexe V.

```

```
15

```

```
                  ANNEX V

      community citizens working, in Switzerland

Population active de nationalité étrangère (fin décembre 19921

```

```
C

416733

 2139

  694

 40481

 64669

 24698

 4181

  310

220752

  294

 4810

 47444

 6261

```

```
A

7244

 29

 88

 799

 300

 859

 13

 18

 682

  4

 185

4165

 102

```

```
G

153695

   0

   0

 34116

  142

 79517

   19

   0

 40065

   0

   0

  106

   0

```

```
EC

B

DK

D

E

F

GR

IRL

I

LUX

NL

P

UK

```

```
 Total

648241

 3250

 1736

 90630

 70641

112616

 4777

  819

272220

  417

 7803

 73618

 9714

```

```
B

70299

 1082

 954

15234

 5530

 7542

 564

 491

10721

 119

 2808

21903

 3351

```

```
B: Annual permit
A: Seasonal workers

```

```
C: Unlimited permit
G: Frontier workers

```

```
NOTE: Figures for seasonal workers above are atypical.
Statistics for April 1993 are given below.

```

```
IRL

I

LUX

NL

P

UK

```

```
B

DK

D

E

F

GR

```

```
 118

 195

1103

2896

1600

 17

```

```
   33

 3937

   4

  289

18.882

  208

```

```
Total: 29282

```

```
16

```

```
                     ***

Swiss citizens resident in the Community fl August 1993)

```

```
Total (incl. dual nationality)

```

```
Swiss nationality only

    2356

    1040

   26288

    8874

   22487

    727

    320

   11542

    441

   1957

    930

   6909

```

```
B

DK

D

E

F

GR

IRL

I

LUX

NL

P

UK

```

```
 6278

 2157

 62973

 15028

133630

 2018

  772

 35423

  728

 5677

 1861

21953

```

```
Total 288498 83871

Note: a significant number of Swiss citizens possess double
citizenship, whether through marriage, naturalisation, or
ancestry; thus, while having the right to vote in Switzerland,
they may also consider themselves Community citizens.

               Source in all cases: Swiss Government

```

```
17

```

```
               ANNEX VI

          Outline approach to linkage

Where a new Agreement A is of particular interest to the
Community, and a new Agreement B is of particular interest to
Switzerland, Agreement A shall include a clause along the
following lines:

      "This Agreement A shall enter into force on ...
     Should this Agreement A cease to be applied by
      either party, Agreement B, signed on ..., shall
     automatically cease to apply."

Agreement B, in turn, shall contain a clause along the
following lines:

     "This Agreement B shall enter into force on...,
     provided that Agreement A has entered into force by
     that date. Should Agreement A cease to be applied
     by either party, this Agreement B shall
     automatically cease to apply."

It should be understood that this formulation is not
necessarily limited to two agreements; where appropriate, a
number of agreements could be linked using the same mechanism.

```

**ISSN 0254-1475**

#### **COM(93) 486 final**

# **DOCUMENTS**

### **EN 11 oi** **Catalogue number : CB-CO-93-519-EN-C** **ISBN 92-77-59715-1**

**Office** **for** **Official Publications** **of the** **European Communities**

**Lp2SHSLuiemboiiig**