The UK and Switzerland are set to sign a historic agreement on financial services cooperation, which will boost trade and investment between the two countries after Brexit. The deal, which will be announced by Chancellor Jeremy Hunt and his Swiss counterpart Ueli Maurer on Thursday, will cover areas such as banking, insurance, asset management, and capital markets.
A new chapter in UK-Swiss relations
The agreement, which has been negotiated over the past year, will mark a new chapter in the UK-Swiss relations, which have been strained by the UK’s departure from the EU. Switzerland is not a member of the EU, but has access to its single market through a series of bilateral treaties. However, these treaties do not cover financial services, which account for a significant share of both countries’ economies.
The UK and Switzerland have been seeking to deepen their ties in the financial sector, which have been hampered by regulatory barriers and uncertainty. The new agreement will aim to address these challenges by creating a framework for mutual recognition of rules and standards, as well as enhancing cooperation on supervision, enforcement, and information exchange. The deal will also facilitate cross-border access for financial firms and investors, and promote innovation and competition in the sector.
A win-win situation for both sides
The agreement is expected to bring substantial benefits for both sides, as the UK and Switzerland are major financial hubs and trading partners. According to the UK government, the UK is the largest foreign direct investor in Switzerland, and Switzerland is the second largest investor in the UK. The UK is also Switzerland’s fifth largest export market, and Switzerland is the UK’s tenth largest. The financial services sector is particularly important, as it employs over 250,000 people in the UK and over 200,000 people in Switzerland.
The deal will also strengthen the UK’s position as a global financial centre, as it seeks to diversify its markets and partners after leaving the EU. The UK has already signed trade agreements with over 60 countries, including Japan, Canada, and Australia, but none of them cover financial services in depth. The agreement with Switzerland will be the first of its kind for the UK, and will set a precedent for future deals with other countries, such as the US, India, and China.
The deal will also benefit Switzerland, as it will secure its access to one of the largest and most dynamic financial markets in the world. Switzerland has been facing increasing pressure from the EU, which has been reluctant to grant it full equivalence in financial services, citing concerns over governance and transparency. The agreement with the UK will provide Switzerland with an alternative and reliable partner, as well as a platform for expanding its global reach and influence.
A positive signal for the future
The agreement, which will be signed in London, will be a positive signal for the future of UK-Swiss relations, as well as for the global financial system. The deal will demonstrate the commitment of both countries to uphold high standards of regulation and supervision, as well as to foster innovation and cooperation in the sector. The deal will also show the potential for constructive and mutually beneficial partnerships between countries that share common values and interests, regardless of their membership in the EU.
The agreement will not come into force immediately, as it will need to be ratified by both parliaments and undergo a public consultation process. However, both sides have expressed their confidence and optimism that the deal will be implemented smoothly and swiftly, and that it will pave the way for further collaboration and dialogue in the future.
