Joint Statement on a Framework for a United States – Switzerland – Liechtenstein Agreement on Fair, Balanced, and Reciprocal Trade

Framework for Fair Trade Negotiations Among the U.S., Switzerland, and Liechtenstein

In a significant move towards enhancing international trade relations, the United States, the Swiss Confederation, and the Principality of Liechtenstein—collectively referred to as the Participants—have announced their intention to negotiate an Agreement on Fair, Balanced, and Reciprocal Trade. This initiative aims to cultivate a vibrant trading partnership that benefits all parties through job creation and economic growth, while also simplifying trade processes. The Participants are united in their goal to make trade not just fair, but also more substantial and accessible, thereby establishing resilient supply chains and a favorable investment climate.

Switzerland has committed to balancing its trade with the U.S. by increasing its purchase of American goods, promoting investments within U.S. borders, and dismantling both tariff and non-tariff barriers that hinder U.S. products. Negotiations for this Agreement will commence immediately, with the ambitious target of reaching a conclusion by the first quarter of 2026, pending their respective domestic legislative processes.

Key Areas of Focus for Negotiations

1. Investment, Commercial Considerations, and Opportunities

1. Switzerland and Liechtenstein are poised to boost foreign direct investment from their enterprises into the United States. Switzerland aims to channel at least $200 billion into the U.S. over the next five years, with a focus on creating manufacturing and R&D jobs across all states. Meanwhile, Liechtenstein targets a minimum of $300 million in investments, aspiring to increase job creation in the U.S. by 50% during the same period. Both countries are committed to facilitating a third of these investments by the end of 2026. The U.S. will assess Switzerland and Liechtenstein’s efforts in this regard when applying reciprocal tariffs, and the Participants may discuss further measures to enhance investment promotion.
2. The Participants will encourage their companies to develop training and apprenticeship programs for U.S. workers in high-growth sectors, ensuring alignment with their current and future investments.
3. Switzerland and Liechtenstein will collaborate with the U.S. to tackle potential trade and investment distortions arising from industrial subsidies and actions taken by state-owned enterprises.
4. The aim is to cultivate an ideal environment for cross-border investments and job creation.

Innovative Tariff Structures

1. Reflecting the Treaty of 29 March 1923, the U.S. will extend the same tariff treatment to both Switzerland and Liechtenstein.
2. Switzerland and Liechtenstein are committed to enhancing market access for U.S. goods by applying zero duties on all U.S. industrial and seafood products, as well as on select agricultural goods, alongside tariff rate quotas for additional agricultural products.
3. The U.S. will apply the higher of either the most-favored-nation (MFN) tariff rate or a 15% combined tariff (MFN tariff plus a reciprocal tariff) on goods from Switzerland and Liechtenstein, while maintaining the MFN rate on certain products listed in the “Potential Tariff Adjustments for Aligned Partners” annex of Executive Order 14346.
4. For pharmaceutical goods and semiconductors from Switzerland and Liechtenstein, the U.S. aims to ensure that tariffs do not exceed 15%, while considering the Agreement’s implications on national security, particularly under Section 232 of the Trade Expansion Act.
5. Benefits from the Agreement are expected to primarily favor the Participants. Should that not be the case, they may alter the Agreement to ensure equitable benefits.
6. The Participants will also address the issue of transshipment and circumvention practices in alignment with their domestic laws.

Addressing Non-Tariff Barriers

1. The U.S. and Switzerland will ensure that conformity assessment bodies in each territory receive equal treatment, encompassing accreditation processes and associated fees.
2. Both parties will apply the WTO’s Technical Barriers to Trade principles to ascertain relevant international standards and intend to negotiate clarifications regarding these standards. In the automotive sector, Switzerland will collaborate with the U.S. to recognize Federal Motor Vehicle Safety Standards.
3. There will be a concerted effort to cooperate on strategic sectors such as medical devices, with Switzerland facilitating the acceptance of FDA-approved medical devices.
4. The U.S. acknowledges Switzerland’s efforts in facilitating trade in beef products and seeks to address market access restrictions for U.S. poultry, enhancing agricultural export opportunities.
5. The Participants are committed to robust intellectual property rights protection and enforcement, ensuring fair treatment of geographical indications.
6. Both Switzerland and Liechtenstein are dedicated to maintaining an open environment for service suppliers, exploring avenues to expand access to their markets.
7. In addressing labor-related trade issues, the Participants will work to combat forced labor and uphold recognized labor rights.
8. Environmental protections will be prioritized, with both countries enforcing their respective environmental laws and collaborating on trade-related environmental measures.
9. Commitments will be negotiated to establish good regulatory practices, ensuring transparency and predictability throughout the regulatory lifecycle.
10. Reaffirming commitments under the WTO Agreement on Government Procurement, the Participants will clarify that non-signatory states do not benefit from non-discriminatory procurement treatment at the central governmental level.
11. Technology solutions will be promoted to facilitate pre-arrival processing, paperless trade, and digitized customs procedures.

Digital Trade and Technology

1. Switzerland and Liechtenstein will not impose digital services taxes.
2. The Participants aim to facilitate trusted cross-border data flows while addressing data localization requirements in line with public policy objectives.
3. Mechanisms that promote interoperability between privacy frameworks will be explored to enable secure cross-border data transfers.
4. There will be a commitment to refrain from imposing customs duties on electronic transmissions, with support for a permanent moratorium at the WTO.

Economic Security Collaboration

1. The Participants will enhance cooperation on economic security matters, particularly in relation to non-market policies from third countries.
2. Recognizing the importance of effective enforcement of economic and trade sanctions, the Participants will bolster collaboration on U.S. export controls and sanctions.
3. Cooperation will extend to the review of inbound investments concerning national security.
4. Switzerland and Liechtenstein will work with the U.S. to secure supply chains and bolster resilience in sectors of mutual interest.

The Participants are committed to synchronizing their domestic processes for the implementation of the Agreement.

It is important to note that this document does not create any legally binding rights or obligations under international law.