Brussels, 15 February 2006 - A new bilateral agreement concerning EU/Switzerland trade in processed agricultural products came into effect on 1 February 2005. As a result, EU exports of processed agricultural products to Switzerland increased by 10% in volume and 6% in value over the past year. A year ago, the EU had abolished export refunds and import duties on most processed agricultural products. Switzerland reduced and in many cases eliminated export refunds and import duties. In addition, all alcoholic beverages – apart from grape juice with added spirit – benefit from free trade between the parties from 1 February 2006.
Vice-President Günter Verheugen responsible for enterprise and industry policy commented: “This agreement between the EU and Switzerland shows that eliminating tariff and non-tariff barriers with third countries pays off. This is crucial for the competitiveness of the EU’s successful food processing industry.”
Since February 2005 the differential between the respective EU/Switzerland internal market prices for agricultural products is used as the basis for calculating export refunds and import levies in bilateral trade in processed agricultural products. In addition the new bilateral agreement provides that for the purposes of calculating export refunds/import levies the internal market differentials will be reduced by 10% (at the end of the first and second year) and 15% from the end of third year onwards.
The new bilateral agreements provides that the EU-Switzerland Joint Committee reviews internal market differential for agricultural products on an annual basis and adjusts import levies/export refunds, as necessary, to take account of any drift over the intervening year.
The European food processing industry is the third biggest EU industry employing some 2.7 million people with more than 26,000 companies across the EU. It is the worlds leading exporter of food products and has a positive trade balance. This sector is characterised by the diversity in its types of activities and in the end products manufactured. The products covered can vary from bakery, pastry, chocolate, spirits, mineral water, beer, confectionary products to modified starches or different food preparations. More than 70 % of the agricultural goods produced in the EU are transformed into food industry products. The most important destinations for exports are: USA, Japan, Switzerland, Russia, Canada and Norway.