Treaties
Switzerland is a member of the European Free Trade Association (EFTA). It took part in negotiating the European Economic Area (EEA) agreement with the European Union. It signed the agreement on 2 May 1992, and submitted an application for accession to the EU on 20 May 1992. However, a Swiss referendum held on 6 December 1992 rejected EEA membership. As a consequence, the Swiss government decided to suspend negotiations for EU membership until further notice. Its application remains open.
In 1994, Switzerland and the EU started negotiations about a special relationship outside the EEA or full membership framework. Switzerland wanted to safeguard the economic integration with the EU that the EEA treaty would have permitted, while purging the relationship of the points of contention that had led to the people rejecting the referendum. Swiss politicians stressed the bilateral nature of these negotiations, where negotiations were conducted between two equal partners and not between 16 or 28, as is the case for EU treaty negotiations.
These negotiations resulted in a total of ten treaties, negotiated in two phases, the sum of which makes a large share of EU law applicable to Switzerland. The treaties are:
First treaty
- Free movement of people
- Air traffic
- Road traffic
- Agriculture
- Technical trade barriers
- Public procurement
- Science
Later treaties
- Security and asylum/Schengen membership
- Cooperation in fraud pursuits
- Final stipulations in open questions about agriculture, environment, media, education, care of the elderly, statistics and services.
The bilateral approach, as it is called in Switzerland, was consistently supported by the people in various referenda. It allows the Swiss to keep a sense of sovereignty, due to arrangements when changes in EU law will only apply after a joint bilateral commission decides so in consensus.
The commission can never discuss or change contents, i.e.
unlike full EU members, Switzerland has no influence over the contents of EU law that will apply. And while the bilateral approach officially safeguards the right to refuse application of new EU law to Switzerland,
in practice this right is severely restricted by the so-called Guillotine Clause, giving both parties a right to cancellation of the entire body of treaties when one new treaty or stipulation cannot be made applicable in Switzerland.
From the perspective of the EU, the treaties largely contain the same content as the EEA treaties, making Switzerland a virtual member of the EEA.
Most EU law applies universally throughout the EU, the EEA and Switzerland, providing most of the conditions of the free movement of people, goods, services and capital that apply to full member states. Switzerland pays into the EU budget and extended the bilateral treaties to the new EU member states, just like full members did, yet people had to decide upon this in a referendum.
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By 2010 Switzerland has amassed around 210 trade treaties with the EU. Following the institutional changes in the EU (particularly regarding foreign policy and the increased role of the European Parliament) European Council President Herman Van Rompuy and Swiss President Doris Leuthard expressed a desire to "reset" EU-Swiss relations with an easier and cleaner way of applying EU law in Switzerland.