Political and economic cooperation

For numerous Swiss companies, including branches of foreign firms, the European market is more important than the domestic market. Various agreements to liberalize the market create almost equal access to the European common market under stable framework conditions. These agreements make it possible for firms from Switzerland to better tap and work a market of almost 500 million consumers. With the extension of these bilateral agreements to the new EU member states, Switzerland gains access to the growth markets of Eastern Europe.

The bilateral agreements between Switzerland and the EU have been broadly expanded. Various barriers to market access were eliminated by the Free Trade Agreement of 1972 and the Bilateral Agreements I of 1999. Bilateral I includes agreements covering technical barriers to trade, public procurement, the free movement of persons, agriculture, research and overland and air transport. Bilateral II, the second round of more extensive agreements of 2004, includes additional economic advantages as well as cross-border cooperation in other political areas. The following sections explain the most important agreements and their significance.