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Stalled EU treaty close to collapse as Swiss cabinet meets - Reuters

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Switzerland's national flag and the European Union flag are seen at the European Commission building in Brussels, Belgium April 23, 2021. Francois Walschaerts/Pool via REUTERS/File Photo

A framework to simplify and strengthen ties between Switzerland and the European Union was close to collapsing on Wednesday as the Bern government met to consider breaking off talks over ratification of a draft treaty struck in 2018.

A summit last month failed to resolve differences over a pact widely criticised within Switzerland and which focuses on five areas: free movement of people, civil aviation, land transport, mutual recognition of industrial standards and processed farm goods. read more

Switzerland insisted on more concessions on state aid, labour rules and citizens' rights , and one political source said he expected the cabinet to decide after years of foot-dragging to cancel further negotiations.

But walking away from its biggest trading partner could over time disrupt and ultimately jeopardise Switzerland's de facto membership of the EU common market.

For its part, the 27-member EU wants an overarching treaty to bind non-EU member Switzerland more closely to single market rules and provide a more effective way to resolve disputes.

EU-Swiss economic ties are now governed by more than 100 bilateral agreements stretching back to 1972 and fleshed out after Swiss voters in 1992 rejected membership of the European Economic Area. They will remain in effect.

Failure to strike a treaty deal would however block any new Swiss access to the single market, such as an electricity union.

Existing accords will also erode over time, including an agreement on cross-border trade in medical technology products that lapsed this week in the absence of a treaty deal. read more

The Swiss Medtech sector lobby - which represents 1,400 companies and 63,000 staff exporting more than 5 billion Swiss francs ($5.6 billion) worth of products to the EU - bemoaned the loss of seamless access to the single market.

"We hope that the last word has not yet been spoken," Swiss Medtech President Beat Vonlanthen said.

"I expect politicians to put the health care of their own people above tactical negotiating interests."

($1 = 0.8952 Swiss francs)

Our Standards: The Thomson Reuters Trust Principles.

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