Key Points
- Switzerland’s Federal Council adopted a negotiating mandate to pursue a binding trade agreement with the U.S. to solidify recent tariff relief.
- The mandate follows a framework that cut U.S. tariffs on Swiss goods from 39% to 15% and included concessions on select U.S. products.
- Talks aim to conclude a comprehensive trade deal by early 2026, reinforcing economic ties and reducing tariff barriers.
Switzerland’s Federal Council has adopted a formal negotiating mandate to pursue a legally binding trade agreement with the United States, advancing efforts to stabilise and deepen economic ties between the two nations. The mandate follows a non-binding framework reached in November 2025 that reduced U.S. tariffs on Swiss imports from about 39% to 15%, a major concession aimed at easing trade frictions.
Under that earlier deal, Switzerland agreed to cut duties on select U.S. products such as fish and other non-sensitive agricultural goods, while the U.S. offered significant tariff relief for Swiss industrial exports. The new negotiating mandate formalises authority for Swiss officials to pursue a comprehensive agreement that could lock in these tariff changes and expand cooperation on broader trade issues.
The negotiating mandate was finalised after consultations with Swiss parliamentary foreign affairs committees and representatives from the 26 cantons, reflecting legislative and regional input into the government’s strategy. A key change from the draft mandate adopted in December 2025 is a strengthened commitment to consult with lawmakers and cantons if new issues beyond tariffs are introduced into negotiations.
Economists and trade officials say the mandate marks a strategic shift for Switzerland as it seeks to reduce tariff barriers that have weighed on its exporters — especially after U.S. tariff actions tied to trade balance concerns. Swiss exports of industrial and pharmaceutical goods to the U.S. have historically been significant, but steep tariffs last year prompted Bern to seek expanded market access and more predictable trade rules.
Swiss negotiators are expected to begin formal talks with U.S. counterparts under this mandate soon, and both sides aim to conclude a full agreement by early 2026. The broader framework established in November also includes commitments from Swiss firms to invest heavily in the U.S. — nearly $200 billion by 2028 — which could support economic ties and bilateral commercial growth.
The trade negotiations come amid ongoing global shifts in trade policy, with Switzerland seeking to compete on par with other major economies that have free trade agreements with the United States. Industry groups say that securing a robust bilateral trade deal could boost exports, reduce tariff uncertainty and encourage investment flows. Observers believe that formalising tariff reductions and broader cooperation could strengthen economic stability between the two countries as global supply chains evolve.
