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Wt/Tpr/S/355 RESTRICTED WT/TPR/S/355 11 April 2017 (17-1942) Page: 1/177 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT SWITZERLAND AND LIECHTENSTEIN This report, prepared for the fifth joint Trade Policy Review of Switzerland and Liechtenstein, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Switzerland and Liechtenstein on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr. Thomas Friedheim (tel: 022 739 5083); Mr. John Finn (tel: 022 739 5081); Mr. Cato Adrian (tel: 022 739 5469); Mr. Pierre Latrille (tel: 022 739 5266); Ms. Takako Ikezuki (tel: 022 739 5534); Ms. Anna Caroline Müller (Government Procurement - tel: 022 739 5514) and Mr. Wolf Meier-Ewert (Intellectual Property - tel: 022 739 6344). Document WT/TPR/G/355 contains the policy statement submitted by Switzerland and Liechtenstein. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Switzerland and Liechtenstein. This report was drafted in English. WT/TPR/S/355 • Switzerland and Liechtenstein - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 13 1.1 Main Features of the Economy .....................................................................................13 1.2 Recent Economic Developments ...................................................................................13 1.3 Developments in Trade and Investment ........................................................................22 1.3.1 Trends and patterns in merchandise and services trade ................................................22 1.3.2 Trends and Patterns in FDI........................................................................................25 2 TRADE AND INVESTMENT REGIME ............................................................................ 27 2.1 General Framework ....................................................................................................27 2.2 Trade Policy Objectives ...............................................................................................30 2.3 Trade Agreements and Arrangements ...........................................................................31 2.3.1 WTO ......................................................................................................................31 2.3.2 Regional and preferential agreements ........................................................................32 2.3.2.1 European Free Trade Association (EFTA) ..................................................................32 2.3.2.2 Agreement on the European Economic Area (EEA) ....................................................33 2.3.2.3 Bilateral agreements .............................................................................................35 2.3.3 Other agreements and arrangements .........................................................................36 2.3.3.1 Non-reciprocal preferential arrangements ................................................................36 2.4 Investment Regime ....................................................................................................37 2.4.1 Switzerland .............................................................................................................37 2.4.2 Liechtenstein ...........................................................................................................41 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 42 3.1 Measures Directly Affecting Imports ..............................................................................42 3.1.1 Customs procedures and requirements .......................................................................42 3.1.2 Customs valuation ...................................................................................................43 3.1.3 Rules of origin .........................................................................................................43 3.1.4 Tariffs ....................................................................................................................44 3.1.4.1 Applied MFN customs duties ...................................................................................44 3.1.4.2 Tariff quotas .........................................................................................................48 3.1.4.3 Bound duties ........................................................................................................50 3.1.4.4 Other duties and charges .......................................................................................50 3.1.4.5 Tariff exemptions and reductions ............................................................................51 3.1.4.6 Tariff preferences ..................................................................................................53 3.1.5 Import prohibitions, restrictions, and licensing ............................................................56 3.1.6 Anti-Dumping, countervailing, and safeguard measures ................................................58 3.2 Measures Directly Affecting Exports ..............................................................................58 3.2.1 Export procedures and requirements ..........................................................................58 3.2.2 Export taxes, charges, and levies ...............................................................................59 3.2.3 Export prohibitions, restrictions, and licensing .............................................................59 WT/TPR/S/355 • Switzerland and Liechtenstein - 3 - 3.2.4 Export support and promotion ...................................................................................60 3.2.5 Export finance, insurance, guarantees ........................................................................60 3.3 Measures Affecting Production and Trade .......................................................................61 3.3.1 Internal taxes..........................................................................................................61 3.3.1.1 Corporate income tax ............................................................................................61 3.3.1.2 Indirect taxes .......................................................................................................62 3.3.1.2.1 VAT ..................................................................................................................62 3.3.1.2.2 Excises .............................................................................................................63 3.3.2 Incentives and other assistance .................................................................................65 3.3.3 Standards and other technical requirements ...............................................................68 3.3.4 Sanitary and phytosanitary requirements ....................................................................70 3.3.5 State trading, state-owned enterprises, and privatization .............................................72 3.3.6 Competition policy and price controls .........................................................................74 3.3.7 Government procurement .........................................................................................78 3.3.7.1 Overview .............................................................................................................78 3.3.7.2 Switzerland ..........................................................................................................79 3.3.7.3 Liechtenstein ........................................................................................................80 3.3.8 Trade-related intellectual property rights ....................................................................81 3.3.8.1 Overview .............................................................................................................81 3.3.8.2 Economic policy context .........................................................................................82 3.3.8.3 Structure and use of the IP System .........................................................................83 3.3.8.4 International initiatives and WTO participation ..........................................................85 3.3.8.5 Patents ................................................................................................................87 3.3.8.6 Plant varieties ......................................................................................................88 3.3.8.7 Trademarks ..........................................................................................................88 3.3.8.8 Geographical indications ........................................................................................90 3.3.8.9 Copyright and related rights ...................................................................................91 3.3.8.10 Enforcement .......................................................................................................93
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