What's Happening?
The United Kingdom and Switzerland have concluded the ninth round of negotiations for an enhanced Free Trade Agreement (FTA) in London, held from January 12 to 16, 2026. This new agreement aims to bolster economic ties between the two nations, which have a trading
relationship valued at £49 billion as of September 2025. The enhanced FTA seeks to provide long-term certainty for UK service firms by ensuring access to the Swiss market, facilitating the free flow of data, and establishing business travel arrangements. The current UK-Swiss FTA, signed in 2019, primarily focuses on goods and is based on an EU-Swiss deal from 1972. The new agreement intends to expand this scope to include services, investment, digital, and data sectors, which constitute over 60% of UK trade with Switzerland. Additionally, a provisional agreement has been reached on environmental and labor policies, which will be included in a chapter titled 'Trade and Sustainable Development'.
Why It's Important?
The enhanced FTA between the UK and Switzerland is significant as it aims to support British businesses and jobs, potentially increasing economic growth. By expanding the agreement to cover services, investment, and digital sectors, the UK seeks to secure a more comprehensive trade relationship with its 10th largest trading partner. This is crucial for the UK, as the services sector supported 130,000 jobs across the country in 2020, particularly in legal, consultancy, and finance industries. The agreement also reflects the UK government's commitment to maintaining high standards across various sectors while protecting national interests, including the National Health Service. Strengthening trade ties with Switzerland could lead to increased economic stability and prosperity for both nations.
What's Next?
The UK government is focused on finalizing the enhanced FTA with Switzerland, ensuring it aligns with national interests and upholds high standards. The next steps involve securing outcomes that will further boost economic growth for the UK. The government has extended the Services Mobility Agreement with Switzerland for an additional four years, until 2029, to facilitate this process. As negotiations progress, both countries will continue to work on finalizing the details of the agreement, particularly in areas related to trade and sustainable development. The successful conclusion of this FTA could serve as a model for future trade agreements with other countries.
