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RESTRICTED WT/TPR/S/280 19 March 2013 (13-1452) Page RESTRICTED WT/TPR/S/280 19 March 2013 (13-1452) Page: 1/167 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT SWITZERLAND AND LIECHTENSTEIN This report, prepared for the fourth 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 Jacques Degbelo (tel: 022 739 5583), Thomas Friedheim (tel: 022 739 5083), Pierre Latrille (tel: 022 739 5266), and Mena Hassan (tel: 022 739 6522). Document WT/TPR/G/280 contains the policy statements 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/280 • Switzerland and Liechtenstein - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 12 1.1 Economic Environment .............................................................................................. 12 1.1.1 Major features of the economies .............................................................................. 12 1.2 Recent Economic Developments.................................................................................. 15 1.3 Developments in Trade and Investment ....................................................................... 16 1.3.1 Trade in goods and services .................................................................................... 18 1.3.1.1 Switzerland ........................................................................................................ 18 1.3.1.2 Liechtenstein ...................................................................................................... 21 1.3.2 Investment ........................................................................................................... 22 2 TRADE AND INVESTMENT REGIMES ........................................................................... 26 2.1 General Framework .................................................................................................. 26 2.2 Trade Agreements and Arrangements .......................................................................... 29 2.2.1 WTO .................................................................................................................... 29 2.2.2 Regional agreements .............................................................................................. 29 2.2.2.1 European Free Trade Association (EFTA) ................................................................. 30 2.2.2.2 Agreement on the European Economic Area (EEA) ................................................... 31 2.2.2.3 Bilateral agreements ........................................................................................... 32 2.2.2.4 Non-reciprocal preferential arrangements ............................................................... 33 2.2.3 Investment regime ................................................................................................ 34 2.2.3.1 Switzerland ........................................................................................................ 34 2.2.3.2 Liechtenstein ...................................................................................................... 36 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 39 3.1 Measures Directly Affecting Imports ............................................................................ 39 3.1.1 Customs procedures and trade facilitation ................................................................. 39 3.1.2 Customs valuation and rules of origin ....................................................................... 40 3.1.2.1 Customs valuation ............................................................................................... 40 3.1.2.2 Rules of origin .................................................................................................... 41 3.1.3 Tariffs .................................................................................................................. 41 3.1.3.1 General features ................................................................................................. 41 3.1.3.2 Applied MFN tariff ............................................................................................... 42 3.1.3.3 Tariff preferences ................................................................................................ 45 3.1.4 Other charges affecting imports ............................................................................... 47 3.1.5 Import prohibitions and restrictions .......................................................................... 49 3.1.6 Import licensing .................................................................................................... 49 3.1.7 Compulsory reserve stock ....................................................................................... 50 3.1.8 Local-content and local-purchase requirements .......................................................... 50 3.1.9 Contingency measures ........................................................................................... 51 3.1.10 Government procurement ..................................................................................... 51 WT/TPR/S/280 • Switzerland and Liechtenstein - 3 - 3.2 Measures Directly Affecting Exports ............................................................................. 54 3.2.1 Procedures ........................................................................................................... 54 3.2.2 Export taxes, charges, and levies ............................................................................. 54 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 54 3.2.4 Duty and tax concessions ........................................................................................ 54 3.2.5 Export subsidies .................................................................................................... 55 3.2.6 Export promotion ................................................................................................... 55 3.2.7 Export insurance and guarantees ............................................................................. 55 3.3 Measures Affecting Production and Trade ..................................................................... 55 3.3.1 Incentives and other assistance ............................................................................... 55 3.3.2 Standards and other technical requirements .............................................................. 59 3.3.2.1 Overview ........................................................................................................... 59 3.3.2.2 Technical regulations ........................................................................................... 59 3.3.2.3 Conformity assessment procedures ........................................................................ 61 3.3.2.4 Standards .......................................................................................................... 61 3.3.2.5 Labelling ............................................................................................................ 61 3.3.3 Sanitary and phytosanitary measures ....................................................................... 62 3.3.3.1 Overview ........................................................................................................... 62 3.3.3.2 Food safety ........................................................................................................ 62 3.3.3.3 Veterinary measures ........................................................................................... 63 3.3.3.4 Phytosanitary measures ....................................................................................... 63 3.3.4 State-trading and state-owned enterprises ................................................................ 64 3.3.4.1 Overview ........................................................................................................... 64 3.3.4.2 State trading ...................................................................................................... 64 3.3.4.3 State-owned enterprises ...................................................................................... 65 3.3.5 Competition policy and price controls ........................................................................ 66 3.3.5.1 Switzerland ........................................................................................................ 66 3.3.5.1.1 Overview ........................................................................................................ 66 3.3.5.1.2 Legal and institutional framework ....................................................................... 66 3.3.5.1.3 Enforcement ...................................................................................................
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