Concluding remarks by the Chairperson

The sixth joint Trade Policy Review of Switzerland and Liechtenstein (the eight review of Switzerland and the sixth review of Liechtenstein) has enabled Members to understand the main developments that have occurred in the trade, economic and investment policies of Switzerland and Liechtenstein since the review conducted in 2017. The strong interest in Switzerland's and Liechtenstein's trade policies is evident from the written questions posed and the large number of delegations that made statements, 48 delegations took the floor during the first day. This reflects the importance of individual Members' trade and investment relationships with Switzerland and Liechtenstein as well as a generally shared recognition and appreciation of the significant role of these Members in supporting the multilateral trading system.

I would like to thank the two delegations, led by H.E. Mr. Markus Schlagenhof, Ambassador and Federal Council delegate for Trade Agreements of Switzerland, and by H.E. Mr. Kurt Jäger, Ambassador and Permanent Representative of Liechtenstein, for their active participation in this exercise. I would also like to express my appreciation to our discussant, H.E. Mr. Hung Seng Tan, Ambassador and Permanent Representative of Singapore, for his insightful remarks, to all the delegations that took the floor for their valuable contributions, and to the delegations that prepared advance written questions.

Many Members emphasized Switzerland's and Liechtenstein's favourable economic conditions and positive recent economic performance. Switzerland and Liechtenstein are among the world's higher per capita income countries and the most competitive and innovative economies. In view of the small size of their domestic markets, their economic development has been based on integration into the world economy through the pursuit of open trade and investment policies. Members commended Switzerland and Liechtenstein for the resilience of their economies in the context of the COVID-19 pandemic, although it was noted that because of the small size of its economy Liechtenstein's economic performance has been more volatile. This resilience was viewed as resulting from fundamental factors such as the existence of a diversified economic structure, emphasis on innovation, sound public finances, long-term social and political stability, a high degree of openness to international markets, a flexible labour market, and the highly skilled labour force.

Members also drew attention to various structural challenges faced by Switzerland and Liechtenstein, particularly, the ageing of the population, low productivity growth, adaptation to the digital economy, climate change, gender equality, high level of household debt, and high prices and lack of competition in certain sectors. Both countries recently adopted or revised long term strategies that aim to address some of these challenges. Thus, for example Switzerland adopted a Digital Switzerland strategy in 2016 and Liechtenstein adopted a Digital Liechtenstein Initiative in 2017.

Members welcomed recent measures taken by Switzerland and Liechtenstein in various areas towards a more open and modern framework for the conduct of trade and investment. These include: the simplification and digitalization of customs procedures under the "DaziT" customs reform initiative; the elimination of export subsidies on agricultural products; the elimination of industrial tariffs with effect from 1 January 2024; the application of the revised Agreement on Government Procurement; the elimination of certain import restrictions applied through state-trading enterprises; amendments to intellectual property legislation; steps taken to comply with international standards on corporate taxation; and the adoption by Liechtenstein of a new Blockchain Act, becoming the first country in the world to introduce a comprehensive set of rules to regulate the "token economy".

On the other hand, Members also reiterated long-standing concerns regarding the application of specific tariffs based on gross weight, the existence of high levels of domestic support and tariff protection in the field of agriculture, and the limited extent of competition in the retail sector. Several Members encouraged the implementation of measures aimed at enhancing the transparency of the tariff regime.

Members praised Switzerland and Liechtenstein for their firm commitment to the WTO and the rules based multilateral trading system. Apart from their active participation in the regular work of WTO bodies, Members appreciated Switzerland's and Liechtenstein's participation in the various Joint Statement Initiatives and in ongoing discussions on a wide range of topics, including WTO reform, the WTO's response to the pandemic, and improvement of compliance with notification requirements. Members underlined the importance of Switzerland's traditional role in the process of consensus building; in this connection they commended Ambassador Chambovey for his leadership as Chair of the General Council in the preparation of the 12th Ministerial Conference.

Many Members highlighted key aspects of their bilateral trade and economic relationships with Switzerland and Liechtenstein and underlined the potential for further development of these relationships. Several Members mentioned developments related to their existing free trade agreements with Switzerland and Liechtenstein or to the possible launch of negotiations on such agreements.

Regarding sustainability, Members welcomed the ambitious greenhouse gas reduction commitments undertaken by Switzerland and Liechtenstein under the Paris Agreement and the measures adopted under their related national strategies to promote the production of renewable energies and, in the case of Switzerland, to phase out nuclear energy.

Members expressed appreciation for various measures and programmes of Switzerland and Liechtenstein to support the integration of developing countries into the global economy.

The above points are some of the key issues that emerged from our discussion during this Review. I hope that the delegations of Switzerland and Liechtenstein will consider and reflect further on these issues and on the many constructive comments made during this review. Switzerland and Liechtenstein have received over 450 written questions as of 18 May, out of which 285 were submitted within the established deadline. It is my understanding that Switzerland and Liechtenstein have responded to almost all the questions submitted before the deadline. Regarding all outstanding and follow-up questions, Switzerland and Liechtenstein are expected to provide their responses within one month, when this Review will conclude.