Switzerland Trade Agreements

Published by Admin on

Most (but not all) Swiss free trade agreements contain such a rule. This means that the determination of the country of origin of primary materials from a third country is not taken into account, provided that their value does not exceed 10% of the factory starting price. However, if a percentage rule is established in the list, it cannot be exceeded by the application of the general value tolerance. This is why this tolerance is particularly important for products for which the list provides for a jump in position. The general value tolerance cannot apply to products listed in Chapters 50 to 63 of the harmonized system, nor does it apply to products that have received only minimal processing in Switzerland. Sme portal: information and links to foreign trade for SMEs Switzerland has been a member of the World Trade Organisation since July 1995. Under the WTO, Switzerland has pledged to reduce tariffs and preserve open services markets. The WTO ensures that all Member States comply with the requirements imposed on them and that the requirements are properly implemented. With its accession, Switzerland is able to settle trade disputes with other countries through the WTO. [9] Application in the SME sector often does not pay enough attention to free trade agreements and the origin statements of exporting firms.

To determine the country of origin, it is necessary to coordinate the management of the company, the export department, procurement, quality assurance, logistics and finance. For example, if the purchasing service changes supplier due to lower prices (old countries of origin, Switzerland, new countries of origin, China and the third country), the export department must also be informed, as this could change the country of origin. Changes in prices and production or fluctuations in exchange rates may also affect the valuation of the country of origin. If the calculations are not checked regularly and thus give false information, this can lead to retroactive payment of customs duties and significant fines against companies. Switzerland, officially a Swiss confederation, has been a member of the European Free Trade Association since May 1960. Within this association, Switzerland and the countries with which it has an agreement are able to remove tariffs and protect intellectual property rights in general. The European Free Trade Association also regulates trade in industrial products, fish products and processed agricultural products. This is not the case with agricultural trade, as each Member State has different policies. On the contrary, agricultural trade is the subject of separate bilateral agreements.

Other free trade agreements, such as Japan and China, extend EFTA rules on trade in services, investment and government procurement. [2] The Free Trade and Economic Partnership Agreement with Japan was concluded in February 2009 and strengthened the already strong relationship between Japan and Switzerland. A free trade agreement between China and Switzerland was signed in 2013, resulting in lower tariffs and lower non-tariff barriers. A free trade agreement in the services sector is important, as many Chinese service providers are interested in Switzerland as a business centre and many Swiss service providers operate in China. [4] In total, Switzerland has thirty free trade agreements with forty countries.