Bilateral issues aired again in Brussels

Leuthard is welcomed by EU Commissioner Charly McCreevy in Brussels Keystone

Economics Minister Doris Leuthard spent Thursday in Brussels hammering out economic issues between Switzerland and the European Union.

She told journalists afterwards that her meetings with three EU commissioners had been positive.

Nevertheless, the two sides still have a number of issues on which they disagree.

In her meeting with EU trade commissioner Peter Mandelson, Leuthard criticised the impact on Swiss firms of the EU law on chemicals, Reach, which came into force in 2007.

Under Reach, manufacturers and importers of chemical substances will not be able to sell their products in the EU until they have proved that they offer no risk to health or the environment. Swiss companies wishing to continue to import chemicals into the EU must register their substances by the end of November, via an office located in the EU.

“We see this as discrimination,” Leuthard explained.

She also raised with Mandelson the issue of compulsory prior notification for the transport of goods into and out of the EU. This is part of new EU security arrangements, due to come into force on July 1, 2009.

Leuthard and Mandelson were also scheduled to discuss the way forward after the partial failure of the July World Trade Organisation talks in Geneva, and to inform each other about the progress made so far in negotiations over bilateral free trade agreements which each side is conducting with third countries.

Services and competition

Leuthard went on to meet Charlie McCreevy, the commissioner responsible for the internal market and services. The two sides agreed to have another look at the bilateral insurance agreement which dates back to 1989. Switzerland is keen to add life insurance to the insurance markets opened up by the treaty.

The development of the EU domestic market, the liberalisation of infrastructure and the financial crisis were also on the agenda. Similarly up for discussion were issues connected with the free movement of peoples, such as the recognition of professional diplomas issued in different countries.

The Swiss minister’s third meeting was with the EU competition commissioner, Neelie Kroes. The two discussed EU demands for Switzerland to cooperate more closely over competition policy and law. Brussels, which strongly opposes cartels, regards Switzerland as being too soft in this respect.

Kroes is eager for Switzerland to reach an agreement making it possible for the relevant competition authorities to exchange information, but for Leuthard this is “not a priority.” However, she said she was willing to look into the matter further.

Bones of contention

Before her trip to Brussels, Leuthard described the purpose of her visit as being to “present the Swiss position on various topics”.

One area of concern for Switzerland is the EU view that Bern is as much bound by European legislation as are EU member states.

Leuthard told journalists that “it is not possible for a sovereign state like Switzerland to adopt European rules automatically”. However, she said she was open to “finding a common way”.

There are a number of thorny issues which have long been outstanding between the EU and Switzerland. And France, which currently holds the rotating EU presidency, is unwilling to tailor the bilateral accords to suit the Swiss side.

It has even proposed that all new agreements with Switzerland should include a mechanism to ensure that Bern adopts any subsequent revisions to the legislation.

Two specific topics are due to be discussed between the two sides before the end of the month: the Swiss cantonal taxation regime and taxation on savings.

Leuthard has already said that Switzerland is not prepared to abolish the cantonal tax system and that there will be no negotiations over the matter.

swissinfo with agencies

Switzerland and the EU

Switzerland’s relationship with the EU is based on a series of bilateral agreements.

The main aim of the first round of agreements, approved in 2000, was to open up each other’s markets.

They covered seven topics: the free movement of peoples, technical barriers to trade, public procurement markets, agriculture, civil aviation, overland transport and Swiss participation in EU research projects.

The second round, agreed in 2004, covered further economic interests and extended cooperation to such areas as internal security, asylum, the environment and culture.

Switzerland has also signed up to the Schengen/Dublin agreement on open borders, which is due to come into force completely in December.