UK and Switzerland strike post-Brexit continuity agreement

Britain and Switzerland have signed a continuity agreement that will allow the two countries to trade with each other once the UK leaves the European Union.

The agreement will allow the countries to continue to trade freely without the imposition of new tariffs and will also mean no duties will be imposed on the vast majority of goods traded between the UK and Switzerland.   

The Department for International Trade (DIT) says that trading on these preferential terms, rather than those set by the World Trade Organisation (WTO), will "deliver significant savings and help to safeguard British jobs".   

The UK is set to leave the EU on 29 March. Question marks linger over the departure date as Theresa May still struggles to strike a negotiated deal that can win the backing of parliament.

The trading relationship between the UK and Switzerland was worth £32.1bn in 2017.

DIT says that with the agreement the British car industry, which has consistently warned against a no-deal Brexit, could avoid up to £8m a year in tariff charges on their exports that would apply if the agreement had not been reached. Aluminium, metal and precious stones exporters could avoid up to £4m in tariff charges.

However, the deal does not include financial services – the UK's most valuable asset – as there is no comprehensive agreement between Switzerland and the EU on financial services. 

Signing the agreement in Bern today, international trade secretary Liam Fox said: "Switzerland is one of the most valuable trading partners that we are seeking continuity for, accounting for more than £32bn worth of trade a year.

"Not only will this help to support jobs throughout the UK but it will also be a solid foundation for us to build an even stronger trading relationship with Switzerland as we leave the EU.”   

Last year the government said it wanted to replicate the EU's trade agreements "as far as possible". At the World Economic Forum in Davos last month, Fox said the UK had agreed "in principle" a free trade agreement with Israel, while South Africa separately said it was close to signing a deal with the UK.

Deals with Australia and New Zealand have been signed, but they are mutual recognition agreements – meaning the two sides will replicate aspects of the existing arrangements with the EU – rather than free trade deals.