Free trade agreements (FTAs) are not synonymous with unrestricted, barrier-free trade. The aim of an FTA is essentially to facilitate trade between two or more countries by reducing or eliminating trade barriers, thereby promoting international trade.
Reducing tariffs is a central element of every free trade agreement, with the goal of eliminating them as far as possible. However, both Switzerland's own sensitivities – particularly in agriculture – and those of partner countries are taken into account.
The content of Switzerland's FTAs has evolved over time. While early agreements covered only trade in goods, most FTAs now cover additional areas such as services, investment and public procurement. Since 2010, Switzerland has also included a chapter on trade and sustainable development in every FTA. The various areas that Switzerland seeks to incorporate as standard in its FTAs are described in detail below.
Trade in goods
The provisions on trade in goods govern the tariff concessions (reductions or eliminations) that the parties grant each other. This improves market access for Swiss exports while making it easier to import goods.
Industrial products
Switzerland's FTAs aim to eliminate tariffs on all industrial products, including fish and other marine products, as far as possible – on both the import and export side.
Agricultural products
Switzerland's FTAs distinguish between basic agricultural products (BAPs) and processed agricultural products (PAPs). In both areas, targeted liberalisation is pursued in a manner compatible with the objectives of Swiss agricultural policy. The concessions granted by Switzerland on BAPs relate in particular to tariff reductions on non-sensitive products (e.g. tropical fruits) and imports within existing WTO tariff quotas (e.g. meat or fruit and vegetables). For processed agricultural products, Switzerland generally grants concessions equivalent to the ‘industrial protection’ level. Switzerland also has export interests in agricultural products and pushes in particular for better access to foreign markets for products such as cheese and dairy products, as well as food preparations such as energy drinks, chocolate and coffee.
FAQ Trade in goods
The central element of FTAs is the reciprocal granting of tariff preferences - i.e. a complete or partial reduction or elimination of customs duties in favour of the respective contracting party. These preferential tariffs are lower than the regular import duties and companies can thus benefit from savings. In addition, the provisions on the movement of goods improve legal certainty and transparency in foreign markets for Swiss companies.
The tariff concessions are agreed in the relevant text and annexes of the FTAs: the text of EFTA FTAs and the bilateral FTAs. The Switzerland Global Enterprise customs database is a user-friendly tool for finding the tariff concessions granted by FTA partners.
he tariff preferences of the FTA can be applied to goods which are covered by the FTA and which comply with the rules of origin provided for therein. Further information on the rules of origin can be found on the website of the Federal Customs Administration.
Where companies can benefit from an FTA, the majority of them do so. The use of the tariff preferences of the FTA is based on the calculation of the utilisation rate. This measures the share of imports actually imported via the FTA, measured against all the goods that could have been imported more cheaply under the FTA (goods that are generally duty-free or otherwise benefiting from tariff preferences were not included in this calculation).
SECO has commissioned a comprehensive data analysis. It shows the extent to which Swiss companies make use of Switzerland's free trade agreements to save customs duties.
No. Whilst the FTAs seeks to eliminate tariffs on all industrial products as far as possible, the aim for agricultural products is targeted liberalisation. The tariff preferences that the contracting parties grant each other are the result of negotiations and therefore vary from one FTA to the other, taking into account both sides’ sensitive areas.
As a highly developed economy with a small domestic market, Switzerland is strongly integrated into international value chains and is dependent on foreign markets for both imports and exports. The tariff preferences in FTAs facilitate the import of goods. This improves the economic conditions for companies and benefits consumers. However, FTAs are not about trade without any restrictions or barriers whatsoever and have no impact on the applicable Swiss product standards.nd Konsumenten. Die FHA, die keinen grenzen- und schrankenlosen Handel vorsehen, haben jedoch keine Auswirkungen auf die geltenden Schweizer Produktestandards.
Rules of origin
Rules of origin determine which products qualify for preferential tariffs under an FTA. Products qualify as originating if they are either wholly obtained or produced in a party's territory (e.g. a cow must be born and raised in Switzerland) or have undergone sufficient processing or working in the territory of an FTA partner (e.g. the manufacture of a machine that also contains foreign components). Simple and flexible rules of origin are essential in a context where products increasingly contain inputs from multiple countries and production processes span several economies.
The rules of origin in an FTA consist of substantive rules (usually set out in an annex) and product-specific rules (PSRs). The substantive rules of origin define, among other things, what constitutes an originating product, what rules apply to the transport of goods between the parties, which proofs of origin must be used, how proofs of origin are to be verified, and what else must be observed when importing and exporting. The PSRs assign to each product a rule specifying the minimum processing or working required for the final product to be considered as originating in a party within the meaning of the FTA. Both typically differ from one agreement to another, reflecting the varying interests and sensitivities of the parties. The PSRs are designed to reflect the actual processing practices of Swiss producers, enabling them to benefit from the FTA.
FAQ Rules of origin
Just like the rest of an FTA, the product-specific rules are the result of negotiations. The starting positions are often different at the beginning of the negotiations. They reflect the expectations of the economy and the economic policy of a country. It is thus inevitable that a certain country will have more or less flexibility in formulating its product-specific rules during negotiations, while another country will have different sensitive areas. The individual solutions to be found with different negotiating partners result in list rules which are not identical in every FTA.
Rules of origin are usually regulated in an annex. The Federal Customs Administration’s Regulation 30 (R-30) (only available in German) provides links to the relevant rules of origin for the FTAs of the individual countries (in the columns “Ursprungsbestimmungen” (“Rules of origin”) and “Liste der erforderlichen Bearbeitungen” (“List of requisite degrees of processing”)
Trade facilitation
Trade facilitation aims to simplify and speed up customs clearance, thereby reducing costs for businesses. In response to the growing importance of this area, newer FTAs include provisions on trade facilitation, covering in particular the core principles of transparency, simplification and cooperation.
The relevant provisions require the parties to publish applicable legislation and tariff rates online and to comply with international standards (such as the revised Kyoto Convention) in designing customs procedures. They also specify, among other things, how duties and charges are to be publicised. This information and these guarantees are of considerable importance in assessing whether importing from or exporting to a given country is worthwhile. Since 2017, minimum standards in this area have been established at the international level through the WTO Trade Facilitation Agreement. Switzerland nonetheless seeks to go beyond these standards in its FTAs, with a view to achieving more binding commitments and greater legal certainty.
FAQ trade facilitation
The Trade Facilitation Agreement already provides a good basis and creates a certain degree of legal certainty. Any problems that may arise in connection with customs clearance of goods can be discussed and solutions sought much more quickly and easily within the framework of the respective FTA.
Technical barriers to trade (SPS/TBT)
Technical regulations govern the characteristics, packaging or production of products in pursuit of public interest objectives such as health or environmental protection. When trading partners apply different technical regulations to the same product, or do not mutually recognise each other's conformity assessments for a product, this creates technical barriers to cross-border trade and additional costs for exporting businesses. The WTO's multilateral agreements establish the international framework for preventing and reducing unnecessary technical barriers to trade (the TBT and SPS Agreements). Building on this, Switzerland uses bilateral FTAs to pursue a further reduction of such barriers. To this end, agreements are concluded on the development of technical regulations, regulatory cooperation, transparency, information exchange and the recognition of conformity assessment results in specific product sectors.
Before products may be placed on the market, they must be tested for compliance with the relevant technical regulations (conformity assessment). Conformity must be demonstrated through procedures prescribed by the authorities (conformity assessment procedures).
TBT/SPS provisions contribute to reducing technical barriers to trade. As tariffs continue to be reduced, such provisions are becoming increasingly important for the marketing of a wide range of industrial and agricultural products.
FTAs with key trading partners complement WTO multilateral agreements by enabling the parties to agree on provisions not covered by WTO rules. These include clarifications on international standards, the recognition of certain pharmaceutical inspections, simplifications for placing industrial products such as electrical equipment on the market, principles for product labelling, and bilateral procedures for opening markets to exports of dairy and meat products. Information exchange between authorities also creates additional transparency between trading partners, while cooperation can be deepened on specific issues such as animal welfare. Consultation mechanisms provide a means of resolving specific technical barriers between trading partners.
No, FTAs do not lead to a reduction in the level of protection, nor do they seek to harmonise technical regulations between trading partners. Irrespective of an FTA, imported products must comply with the technical regulations of the importing country in order to be legally marketed.
Trade defence measures
Trade defence measures (also known as trade remedies) in the form of temporary tariff increases may be taken where a domestic industry is threatened with serious injury. Such measures may be applied, for example, where subsidies granted by one party unduly distort trade, where companies from another country enter the other party's market at dumped prices, or where the agreed tariff preferences cause injury to domestic industries. The relevant FTA provisions are largely based on WTO law. In addition, they contain consultation and information obligations tailored to the bilateral relationship.
Trade defence measures often affect exporting industries unexpectedly. As a result, they may undermine legal certainty in bilateral economic relations, unjustifiably so where they are adopted for protectionist reasons. In its FTA negotiations, Switzerland therefore seeks to mutually exclude anti-dumping measures. Switzerland also endeavours, wherever possible, to exclude WTO safeguard measures between the parties, provided imports do not cause serious injury. This objective cannot always be achieved, however, as many countries are unwilling to make concessions in this area.
FAQ Trade defence measures
Trade defence instruments are regulated in WTO law. FTAs will usually make reference to these rules unless Switzerland succeeds in banning anti-dumping measures for both sides, for instance. Additionally, FTAs contain obligations to consult and provide information. These consultations allow both sides to gain a better understanding of their respective legal position and the background of the intended measure. The ultimate aim is to increase legal security for the benefit of exporters by preventing protectionist measures as far as possible.
EFTA member states do not apply any anti-dumping measures, and, in any case, their companies hardly ever engage in price dumping abroad that could damage the economy there. Nevertheless, Swiss companies will also be negatively affected by anti-dumping measures if they are abused for protectionist ends. The aim of such measures – to combat predatory pricing – is often better achieved through domestic competition rules than with anti-dumping measures. Banning the use of these measures ultimately serves to increase legal security and thus planning security for economic operators.
No, Switzerland has never taken any defence measures of this kind. It should be considered that protective measures always also affect the domestic economy and consumers by leading to higher prices and less product choice.
On 23 March 2018, the USA introduced new import tariffs of 25% on certain steel products and 10% on certain aluminium products, ostensibly on national security grounds. These tariffs also apply to imports from Switzerland. On 19 July 2018, the EU approved defence instruments in the form of tariff-rate quotas for imports of steel products from non-member states. These measures will remain in force until 30 June 2021 and also affect steel imported into the EU from Switzerland. There have also been isolated cases in the past of anti-dumping measures against products imported from China, which had an indirect effect on Swiss companies involved in further processing these products in Switzerland.
Intellectual property rights
EFTA free trade agreements provide for standards on the protection of intellectual property rights, including measures for their enforcement. Adequate and enforceable intellectual property protection is a core interest of Switzerland and its innovation-driven economy. The intellectual property provisions build on the principles of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
As an innovative country, Switzerland depends on adequate intellectual property protection. The expansion of free trade therefore also requires improved protection of intellectual property rights in relation to the products and services exchanged. In recent years, the protection of intellectual property rights in global trade has grown in importance.
Around 80% of Swiss exports rely on intellectual property rights. Patent protection is important, for example, for the pharmaceutical and chemical sectors and the machinery industry, while industries such as food and watchmaking depend on strong trademark protection. EFTA's free trade agreements generally cover all intellectual property rights, in particular patents, data protection for test data, designs, copyright, trademarks, indications of source, protection of ‘Swissness’ and geographical indications.
The agreement text is based on international standards and creates legal certainty for rights holders through transparent and predictable rules. The chapter on intellectual property rights also contains provisions on enforcement, such as border measures. Intellectual property provisions are subject to the FTA's dispute settlement mechanism. Further information on intellectual property in Switzerland is available on the website of the IPI.
FAQ Intellectual Property Rights
The chapter on intellectual property builds on existing international treaties, in particular the TRIPS Agreement. It clarifies certain provisions contained therein and specifies points that are not fully regulated in multilateral agreements. In addition, it can take up other concerns of the contracting parties. Finally, within the framework of the FTA, the legal situation of the contracting states can be reflected more precisely, and therefore more fully and comprehensibly for economic players, than in multilateral agreements.
The FTA thus offers greater legal security to holders of intellectual property rights and consequently promotes trade and investment between the partner countries. The broader legal framework created by the FTA also includes provisions on the enforcement of intellectual property rights, which are more detailed than in multilateral agreements, such as in the case of border measures.
Finally, the inclusion of the chapter on intellectual property under the dispute settlement mechanism of the FTA provides an additional way of enforcing guaranteed rights and solving problems more quickly through the bilateral channel.
Furthermore, institutions established under the FTA, such as the Joint Committee, serve as an additional platform to address problems and challenges in the field of intellectual property and to promote cooperation between the partner countries.
A patent protects a technical invention and usually grants an exclusive right of use for a term of 20 years. Certain criteria need to be met for an invention to be patentable. Specifically, the invention has to be novel, involve an inventive step and be capable of industrial application.
Over 130,000 patents are currently in force in Switzerland, making the country the world leader in terms of number of patents per head of population. Patents are a major incentive for innovation because they allow Swiss companies investing in innovation to protect their inventions. Patent protection is thus important to many sectors of the Swiss economy, particularly the machinery industry and the chemicals and pharmaceuticals sectors, but also watchmaking and precision instruments, for instance. As the protection of innovations and patents is very important for the Swiss economy, the inclusion of provisions on patents in the FTA is intended to guarantee adequate protection in the countries with which Switzerland trades. For example, the relevant provisions in the FTAs lay down conditions for patentability and provide for certain exceptions. This ensures sufficient legal clarity with regard to the patentability of inventions in the various contracting parties. At the same time, these patent provisions establish a framework that helps create a climate conducive to trade, investment and innovation as well as promoting the exchange of information. In the healthcare sector, giving inventions adequate protection is also crucial for developing new drugs and thus for promoting the development of better technologies.
In addition, FTAs contain provisions on enforcing patent rights, including border measures.
A patent protects a technical invention and usually grants an exclusive right of use for a term of 20 years. Certain criteria need to be met for an invention to be patentable. Specifically, the invention has to be novel, involve an inventive step and be capable of industrial application.
Over 130,000 patents are currently in force in Switzerland, making the country the world leader in terms of number of patents per head of population. Patents are a major incentive for innovation because they allow Swiss companies investing in innovation to protect their inventions. Patent protection is thus important to many sectors of the Swiss economy, particularly the machinery industry and the chemicals and pharmaceuticals sectors, but also watchmaking and precision instruments, for instance. As the protection of innovations and patents is very important for the Swiss economy, the inclusion of provisions on patents in the FTA is intended to guarantee adequate protection in the countries with which Switzerland trades. For example, the relevant provisions in the FTAs lay down conditions for patentability and provide for certain exceptions. This ensures sufficient legal clarity with regard to the patentability of inventions in the various contracting parties. At the same time, these patent provisions establish a framework that helps create a climate conducive to trade, investment and innovation as well as promoting the exchange of information. In the healthcare sector, giving inventions adequate protection is also crucial for developing new drugs and thus for promoting the development of better technologies.
In addition, FTAs contain provisions on enforcing patent rights, including border measures.
Geographical indications (GIs) are names or signs that designate products with characteristics and qualities linked to their geographical origin. These products are made using traditional local methods. Some examples from Switzerland include St. Galler Kalbsbratwurst (veal sausage), Tête de Moine, Gruyère (both cheeses) and Chocolat suisse (Swiss chocolate) or also wine designations.
GIs promote trade in local and regional specialities and are thus an attractive way to promote sustainable economic development at regional level. They make specialities and high-quality products more attractive, including on international markets, for both Switzerland and its partner countries.
Switzerland strives to ensure an adequate degree of protection in its FTAs. In particular, it does this by stipulating a high level of protection not only for protected designations of wines and spirits, as per the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), but also for other products, such as cheese, other foodstuffs and non-agricultural products. In its FTAs, Switzerland also sets out to guarantee protection for its indications of origin, such as “Swiss”, “Switzerland”, the names of its cantons and regions and the Swiss cross. In addition, it includes provisions to prevent these indications from being used on products or services in a way that makes the consumer believe that they originated in Switzerland when they did not. FTAs thus help to preserve the high-quality reputation of Swiss products and services on international markets.
FTAs also contain provisions on enforcing these rights, including border measures.
Competition
The competition rules in Switzerland's and the EFTA states' FTAs are designed to ensure that the trade liberalisation achieved under an FTA is not undermined, restricted or distorted by anti-competitive business practices. Market foreclosure through collusion between companies – for example on prices, output or market territories – or through the abusive conduct of dominant undertakings is incompatible with the objectives of the free trade agreements. These rules also apply to public undertakings.
Enforcement of these principles is the responsibility of the national competition authorities. FTAs may also include rules on cooperation and information exchange between the respective competition authorities. Where anti-competitive conduct affects trade between the parties, either party may request consultations. If the problem persists, the affected party may take appropriate measures, which must be proportionate and must interfere as little as possible with the functioning of the FTA.
FAQ Competition
The rules on competition in Switzerland’s FTAs supplement those on market access. Companies are not allowed to close off the markets that the agreements have opened up to them through anti-competitive behaviour. There can sometimes be significant differences between the various countries in terms of how competition law is interpreted and enforced. For this reason, the rules on competition in FTAs are usually limited to general principles of international competition law and mechanisms for cooperating and exchanging information.
Yes, based on the Swiss Cartel Act, Switzerland can take measures if competition restrictions abroad affect competition in Switzerland. This can also be the case if circumstances are not sanctioned under foreign law. Most Swiss FTAs contain provisions that explicitly provide for such measures.
Trade in services
The provisions on trade in services build on the WTO's General Agreement on Trade in Services (GATS), while going beyond it in important respects. The aim is to achieve better conditions for Swiss service exporters under FTAs and to prevent discrimination against service providers from other countries.
FTAs generally cover all areas of the services sector and all modes of supply. The general rules in the services chapter are supplemented by specific annexes (for example on financial services) setting out sector-specific rules and commitments. The agreements also include schedules of commitments from both parties, specifying the areas of the services sector and modes of supply for which the other party's service providers are granted market access and may not be discriminated against relative to domestic providers (national treatment). Further information on trade in services and the services provisions of Switzerland's FTAs is available on Trade in services in free trade agreements (FTAs).
FAQ Trade in services
Trade in services covers numerous sectors including the liberal professions (doctors, lawyers and other providers of legal services, architects, engineers), business services (e.g. marketing, advertising or consulting), post and telecommunications, trading and brokerage services, financial services (banks, insurers, stock exchanges and securities dealers), tourism (hotels, restaurants, tour guides), transport and logistics, culture and audiovisual services, healthcare, education, construction, energy and the environment as well as other services relating to the manufacture or transformation of industrial, agricultural and mining products.
Switzerland would like to provide its service exporters with more legal certainty and better access to foreign markets. It also wants to prevent potential discrimination against service providers from other countries.
All forms of service provision are covered in Swiss FTAs. This includes cross-border service provision and service provision by a foreign subsidiary (commercial presence) or by private individuals.
Investment
The investment provisions establish that investors of one party have the right to establish or acquire a company in the other party's territory, in principle on the same terms as domestic investors. The commitments for the services sector are found under the ‘commercial presence’ mode of supply referred to in the trade in services chapter. Investment protection is generally governed by bilateral investment protection agreements rather than by FTAs.
Internationally active investors require the most stable, secure and predictable framework conditions possible for their often very long-term investments. When making investment decisions, companies take into account not only market size and infrastructure, but also the additional legal certainty provided by international treaties such as investment protection agreements, FTAs and double taxation agreements. Trade and investment are closely interlinked: lower tariffs in a free trade partner country also enhance Switzerland's attractiveness as an investment location. In the context of global value chains and competitiveness, it is also in the interests of Swiss companies to be able to produce in other countries, at least in part. Switzerland therefore has a strong interest in favourable conditions not only for trade but also for investment.
FAQ Investment
In general, Switzerland aims to negotiate market access for investments in all new FTAs. OECD countries already have such market access commitments for investments within the framework of the OECD liberalisation codes, but the enforceability of the commitments in FTAs (discussions in the Joint Committee, arbitration) is better than under the OECD commitments. The protection of investments made (post-market-access phase) is regulated in investment protection agreements.
There is a lack of general rules of international law for the non-services sectors (manufacturing, agriculture, mining, energy production), such as the WTO rules on establishment in services sectors. Such obligations are therefore negotiated in the FTA Investment Chapter.
Internationally active investors depend on stable and predictable framework conditions for their long-term investments in other countries. The treaty obligation of non-discrimination in establishment (takeovers of companies, establishment of companies) provides investors with such additional legal security.
Government procurement
Switzerland's FTAs govern the principles and procedures of government procurement and include commitments on access to the parties' government procurement markets. They improve legal certainty and transparency in particular. On the basis of reciprocity and non-discrimination, they aim to strengthen the export opportunities and competitiveness of SMEs and to counter the risk of Swiss suppliers being discriminated against relative to suppliers from other trading partners. The government procurement provisions build on the WTO Agreement on Government Procurement (GPA).
FAQ Government procurement
The provisions on public procurement extend the scope of the recognised international rules to partners that are not members of the GPA. The Parties pursue the objective of strengthening international governance of public procurement and promoting reciprocal access to markets for goods and services. These provisions grant Swiss suppliers equal access to public procurement markets with their competitors and thus reduce or eliminate potential discrimination in this area. The improvement of public procurement systems contributes to the economic objective of an economical use of public funds.
Sustainable development
As part of a coherent foreign economic policy, Switzerland seeks to conclude FTAs that offer sustainable growth prospects for both Switzerland and its partner countries. To this end, Switzerland advocates for the inclusion of specific provisions on trade and sustainable development in the negotiation of new FTAs and the revision of existing ones. These provisions refer to the parties' commitments under the United Nations Sustainable Development Goals (SDGs). They establish a common reference framework and commit the parties to upholding it in their preferential economic relations, ensuring that the economic objectives pursued through FTAs are aligned with the parties' environmental and labour rights commitments.
The clauses include commitments to comply with and effectively implement multilateral environmental agreements and the conventions of the International Labour Organization (ILO) ratified by the parties. In 2019, Switzerland and its EFTA partners revised the model sustainability chapter, adding new provisions on the sustainable management of forest resources and fish stocks, trade and biodiversity, trade and climate change, inclusive trade and corporate social responsibility (CSR). The dispute settlement approach was also strengthened: the revised text gives the parties the option of referring to an independent panel of experts issues that have not been resolved through conventional consultations.
The joint committees of the FTAs, which meet regularly, are directly responsible for monitoring compliance with the sustainability provisions. Detailed information can be found on the following webpage Monitoring implementation of FTAs.
Yes, the commitments made in the chapter on sustainability are binding under international law. Their binding nature is not affected by the fact that Switzerland adopts a cooperative approach in this area. All elements of the dispute resolution mechanism are applicable with the exception of the arbitration procedure (replaced by a panel of experts in the revised Swiss/EFTA approach). The Federal Council firmly believes that a cooperative approach, coupled with targeted support measures on a case-by-case basis, enables better results over the long term than relying solely on the threat of sanctions.
It is not a given that trade agreements will include any provisions on environmental protection and labour rights. Many countries still take the view that such provisions should not be included in trade agreements, particularly because they fear that these standards could be misused for protectionist purposes. By adopting such provisions, Switzerland is attempting to contribute to the development of international trade relations which do not seek economic liberalisation in isolation but promote coherence with other aspects of sustainable development. By anchoring these sustainability commitments in the FTAs, Switzerland also contributes to the implementation of environmental and labour standards at the bilateral level, in addition to the efforts in the relevant multilateral forums.
Dispute settlement
The dispute settlement chapter provides a procedure for resolving disputes over the correct interpretation or application of the agreement. FTAs concluded within the EFTA framework provide that differences between the parties should, wherever possible, be resolved through consultations. Where diplomatic means fail to resolve a dispute, the relevant FTAs also provide for arbitration. An arbitral tribunal is established for each individual case and consists of three experienced arbitrators. The tribunal rules on the compatibility of the contested measure with the FTA in a binding and final decision.
FAQ Dispute settlement
So far, there have not been any disputes against or instigated by Switzerland. Consultation within the joint committee has always been sufficient to resolve any dispute. The possibility of having a procedure for settling disputes has primarily a preventive effect in that it allows a degree of pressure to be applied to find a consensus. Unlike arbitration, which results in a binding ruling imposed by a third party, consultation allows pragmatic solutions to be found that the defendant will agree to put into action.
A plaintiff can only call for an arbitration tribunal to be convened after the consultation period has ended without the dispute having been resolved. Each party to the proceedings appoints an arbitrator. The two arbitrators then select a third, who will preside over the arbitration tribunal.
Yes, unless the parties decide otherwise.
Switzerland is keen to have proceedings conducted in public unless confidential information is being discussed. However, some FTAs, like the WTO, require cases to be heard behind closed doors.
An individual is not permitted to instigate dispute resolution proceedings under a FTA. This can only be done by the parties to that agreement, i.e. the countries that signed it. The competent Swiss authorities will decide on a case-by-case basis whether there are grounds for initiating arbitration proceedings. As well as the likely chances of success from a legal perspective, they will also need to take political considerations into account.
The arbitration tribunal assesses whether the measure being disputed complies with the FTA and can, where appropriate, order the defendant to modify it to render it compliant. It cannot punish a party that violates an FTA. If the defendant fails to adapt the measure, further proceedings may be initiated which may lead to compensation or suspension of benefits.
Yes, proceedings can be initiated at the WTO, provided that the disputed provisions in the FTA are consistent with those in the WTO Agreement. Switzerland's FTAs generally provide that a dispute can be settled in one forum or another at the free choice of the complaining party. The choice of one forum excludes the use of the other forum. However, if the provisions in question differ from those of the WTO Agreement, only the forum of the FTA is available.
