UK and Switzerland strike services trade deal to boost British exports

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UK-Switzerland services trade deal

Highlights

The UK and Switzerland signed a services free trade agreement projected to boost British exports to Switzerland by £5.2 billion annually.
The deal includes provisions for financial services, insurance, life sciences, pharmaceuticals, e-gate usage for travellers, and removal of data roaming charges.
This accord is the UK's sixth trade deal in two years and aligns with its post-Brexit strategy to strengthen economic ties with Europe and key global markets.

Agreement scope and projected export gains

As reported by CNBC, citing the UK government, the services free trade agreement is expected to strengthen market access between the two countries and is being presented as the most significant services trade pact the country has concluded. Officials say both economies are highly reliant on services, with the sector accounting for 81% of UK GDP and 83% of employment, according to government figures.

The agreement is expected to deliver a multi-billion-pound lift to British exports, with the government estimating eventual additional exports to Switzerland at £5.2 billion a year. A separate arrangement also lets travellers between the two countries use e-gates to reduce airport waiting times and removes data roaming charges for visitors.

UK minister for trade policy Chris Bryant tells CNBC that the accord is the best deal the country has secured on services so far. He highlights financial services, insurance, life sciences and pharmaceuticals as areas where the two economies are closely aligned.

Post-Brexit strategy and wider European ties

The accord marks the sixth trade deal reached by the UK in two years and comes as the Labour government pursues closer ties with Europe as part of its post-Brexit reset. Although Switzerland is not a member of the European Union, it remains closely integrated with the European Single Market through a network of bilateral treaties.

Bryant also says the government wants trade with the European Union to be as frictionless as possible and adds that he believes the country's historic destiny is to rejoin the bloc. UK trade minister Peter Kyle says the agreement will bring major benefits to British businesses and consumers, adding that it follows a run of deals involving the U.S., Europe, the Gulf, South Korea and India.

Our earlier article on the UK-EU youth mobility scheme talks highlighted how a proposed annual cap of 50,000 visas became a key stumbling block in the wider post-Brexit reset. We noted that disagreements over quota allocation, the NHS surcharge and university fee status were spilling over into broader talks on trade facilitation and reconnecting carbon markets.

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