The Swiss–U.S. Trade Deal Dr. Rahul Sahgal
The Joint Statement identifies five pillars for the upcoming Agreement The to be negotiated Agreement shall aim to deepen investment ties, reduce tariffs, remove regulatory barriers, and strengthen cooperation in key sectors, including technology, digital trade, and economic security. Switzerland, Liechtenstein and the United States (collectively, Participants) intend to coordinate the timing of their respective domestic processes for the entry into force and Switzerland intends encourage and facilitate at least $200 billion in investment in the U.S., across all 50 states, over the next five years to create manufacturing and research and development jobs. Liechtenstein intends to encourage and facilitate at least $300 million of investment into the United States and increase by 50 percent over the next five years the number of jobs created by its private sector in the United States. Switzerland and Liechtenstein intend to encourage and facilitate one third of these investments by the end of 2026. The Participants intend to encourage their enterprises to promote and develop training and apprenticeship programs for U.S. workers in key high-growth sectors in the United States, taking into account their current and future investments. 2. Tariffs implementation of the Agreement. 1. Investment and Job Creation The United States intends to apply the higher of either the U.S. most-favored-nation (MFN) tariff rate or a tariff rate of 15 percent , comprised of the MFN tariff and a reciprocal tariff, on originating goods of Switzerland and Liechtenstein. Switzerland and Liechtenstein intend to improve market access for U.S. goods, through the application of zero duties on all U.S. industrial goods, U.S. seafood, and certain U.S. agricultural goods, and through the application of tariff rate quotas for a number of other U.S. agricultural goods. 5
The United States intends to promptly ensure that the MFN tariff and the tariff imposed pursuant to Section 232 of the Trade Expansion Act of 1962 (Section 232) do not exceed 15 percent for originating pharmaceutical goods and semiconductors of Switzerland and Liechtenstein subject to Section 232 tariffs. The Participants intend to cooperate, where relevant, on matters relating to transshipment and circumvention practices, in accordance with their respective domestic laws and regulations. 3. Non-Tariff Barriers Intention for mutual recognition of product conformity assessments. Closer cooperation in mutually agreed strategic sectors, including medical devices cleared by the U.S. FDA. With respect to automobiles, Switzerland intends to work with the United States to facilitate the recognition of Federal Motor Vehicle Safety Standards . The United States acknowledges the efforts made by Switzerland to facilitate trade in beef and beef products. Switzerland intends to work with the United States to address specific measures that restrict market access for U.S. poultry and poultry products, strengthening opportunities for U.S. agricultural exports in Switzerland. The United States and Switzerland intend to cooperate on streamlining sanitary requirements for labelling and certificates, particularly for beef, bison, and dairy products. 4. Digital Trade & Technology Switzerland and Liechtenstein intend to continue to refrain from imposing digital services taxes . The Participants intend to facilitate trusted cross-border data flows and address data localization requirements, taking into account legitimate public policy objectives.
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