UK-Switzerland Enhanced FTA Strategic Approach: Glossary
Published 15 May 2023
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For further information, see the full UK approach to negotiating an enhanced free trade agreement with Switzerland.
Authorised Economic Operator (AEO)
AEO status is an internationally recognised quality mark that shows a business’s role in the international supply chain is secure and has customs control procedures that meet certain standards and criteria. Customs authorities will often offer certain procedural benefits or simplifications to businesses that hold AEO status.
Data localisation requirements
This refers to the extent to which data that are generated in a jurisdiction (e.g. by businesses, organisations or individuals) are subject to legal and administrative measures that restrict the use of those data outside that jurisdiction. These restrictions include requirements that data need to be stored in facilities within the jurisdiction, and that there are restrictions on the accessing, transmission or processing of data on a cross-border basis.
Free Trade Agreement
An agreement between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries.
General Agreement on Trade in Services (GATS)
The World Trade Organization (WTO) treaty that provides a framework of rules governing services trade and establishes a mechanism for countries to make commitments to liberalise trade in services.
Geographical Indication (GI)
An Intellectual Property right used to protect food, drink and agricultural products that are made using agreed methods and enjoy a good reputation due to their origin. Examples of UK GI products include Scotch whisky, Cornish Pasties and Welsh Lamb.
Good Laboratory Practice (GLP)
A set of rules and criteria for a quality control system covering the organisational process and the conditions under which non-clinical health and environmental safety studies are planned, performed, monitored, recorded, reported and retained (or archived).
Good Manufacturing Practice (GMP)
The minimum standard that a medicines manufacturer must meet in their production processes. Products must: be of consistent high quality; be appropriate to their intended use; and meet the requirements of the marketing authorisation (MA) or product specification.
Investment liberalisation
The removal or reduction of restrictions or barriers to investment.
Investor State Dispute Settlement (ISDS) mechanism
A mechanism that allows a foreign investor to bring legal proceedings and seek compensation from a state, if it considers the state has breached its obligations under an investment treaty or an Investment chapter in an FTA. The legal proceedings are usually brought via an arbitration process that is independent of each state’s domestic courts.
Most Favoured Nation (MFN) tariffs
MFN tariffs are what countries promise to impose on imports from other members of the World Trade Organization, unless the country is part of a preferential trade agreement (such as a free trade agreement or area or customs union). Some countries impose higher tariffs on countries that are not part of the WTO.
Mutual Recognition Agreement (MRA) on Goods
MRAs in relation to conformity assessment allow for goods in agreed sectors to be tested in the UK against a partner country’s regulations. The goods can then be sold in the partner country without additional testing there and vice versa. For GMP, they also promote the recognition of inspection outcomes against their minimum standard requirements.
Mutual Recognition Agreement (MRA) on Financial Services
The FS MRA will facilitate the cross-border provision of financial services for wholesale and sophisticated clients between the UK and Switzerland. It will reduce costs and remove barriers to cross-border activity through the assessment and recognition of each other’s supervisory and regulatory regimes, underpinned by enhanced cooperation. It is based on the principle that jurisdictions can achieve in different ways similarly high standards of regulation and supervisory oversight.
Rules of Origin (RoO)
Rules of Origin are used to determine the country of origin of a product for purposes of international trade. In a free trade agreement, preferential RoO determine what products can benefit from the preferential tariffs.
Sanitary and phytosanitary (SPS)
SPS measures are requirements imposed for food safety or biosecurity purposes to protect human, animal or plant life and health.
Services Mobility Agreement (SMA)
An agreement between the UK and Switzerland, which allows UK professionals to work in Switzerland for up to 90 days without a work permit from 1 January 2021. Swiss professionals will be able to deliver contracts in the UK in key skilled sectors through the Service Supplier visa. This is a temporary arrangement that will expire at the end of 2025.
Subsidies
Financial assistance granted by a government or public body, for example loans, grants or tax credits. Subsidies can give an advantage to the business or individual that receives them.
Tariffs
Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.
Technical Barriers to Trade (TBT)
Technical barriers to trade (TBT) are a type of regulatory measure that affect trade in goods. They do not include tariffs (customs duties on imports) and are therefore sometimes referred to as examples of “non-tariff measures” (NTMs). There are three broad categories of TBT measures: technical regulations, standards, and conformity assessment.
Trade Facilitation Agreement
A binding multilateral trade agreement between members of the World Trade Organization (WTO) which aims to make cross-border trade easier, faster and cheaper.
Trade liberalisation
The removal or reduction of restrictions or barriers on the free exchange of goods between nations.
World Trade Organization (WTO)
The WTO deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible.