The European Union and Switzerland – the bloc's fourth-biggest export market – reached a political agreement on Friday to review their trade ties, setting in motion a lengthy approval process.
The two hope to formally conclude negotiations in the spring, after which the package of measures will face parliamentary hurdles and a likely referendum in Switzerland.
Here's what it contains:
NEW AGREEMENTS ON ELECTRICITY, FOOD SAFETY AND HEALTH
An electricity deal that has been long in the works integrates Switzerland into the bloc's grid, helping stabilize networks and allowing the EU to tap into Swiss hydropower.
The agreement worries some Swiss network operators, who fear disadvantages from market liberalization.
An agreement on food safety provides Switzerland with access to the European Food Safety Authority and reduces trade barriers.
A health agreement addresses cross-border threats by improving crisis prevention and ensuring continued cooperation between EU and Swiss authorities.
DISPUTE RESOLUTION
Fulfilling a central EU request, Switzerland agreed on a mechanism to align laws with relevant EU legislation, subject to constitutional guarantees, and a way to handle disputes.
If a joint EU-Swiss committee fails to resolve a dispute, cases will go to an arbitration panel, which will have to consult the Court of Justice of the European Union for interpretation.
Both parties can take proportionate measures through market access treaties to compensate for imbalances resulting from an unresolved dispute.
Swiss opposition to the deal has centered on the argument that Switzerland should not be subject to dictates from European Union courts that infringe on its ability to shape policy.
'PROTECTION CLAUSE' ON IMMIGRATION
Swiss officials have sought to agree terms under which they can control immigration from the EU, a sensitive topic for the bloc, as officials worry that notable concessions will encourage member states to try to get their own opts -out.
The Swiss government said it had obtained a protection clause to address serious economic or social issues related to immigration, using an arbitration mechanism.
The EU can take proportionate measures to compensate for Swiss immigration restrictions that it does not agree with. Such measures can no longer cover areas other than market access, such as research or health, the Swiss government said.
RESEARCH, STATE AID
When Switzerland refused to sign a previously negotiated deal with the EU in 2021, it lost access to the bloc's research, innovation and education programmes. The new agreement restores Switzerland's participation.
Furthermore, the agreement clarifies the rules and exceptions on state aid to support weak regions or promote green technologies.
SWISS FINANCIAL CONTRIBUTION
The price for Switzerland's access to the EU market has long been open. Switzerland said on Friday it will pay 350 million Swiss francs ($391 million) a year starting in 2030, after a transition phase.
Switzerland has financed development projects in Eastern Europe since 2007, paying 130 million francs a year. Switzerland described this sum as a voluntary contribution. Under the new agreement, contributions are legally binding.
RATIFIES
Switzerland said it may split the agreement into several packages for approval, separately submitting new sections and updates to existing agreements.
Parliamentary consideration is due to begin in 2026 and the deal is almost certain to face a national referendum.
Lawmakers who support a deal are concerned that it could become a focal point of the 2027 federal election. Some therefore want to ensure there is no referendum before 2028.
A ratified agreement could come into force in 2030.
The opposition comes from the political right, which has long portrayed the EU as an overly regulated and bureaucratic threat to Switzerland's market economy. Unions may also oppose the deal, arguing that it risks reducing wages.
(1 dollar = 0.8946 Swiss francs)
