The UK and Switzerland have finalised a major new free trade agreement that ministers say will boost Britain’s services economy by around £5.2bn per year.
The deal is the largest the UK has negotiated since leaving the European Union and marks a significant shift in focus from goods-based agreements to services.
The agreement extends an existing arrangement allowing British and Swiss services professionals to work across each other’s markets without requiring visas.
UK travellers will also benefit from surcharge-free international roaming in Switzerland, while a parallel agreement grants them access to Swiss passport e-gates.
The deal was not without difficulty, with trade minister Chris Bryant revealing that negotiations came close to collapse in the weeks before the agreement was reached.
“It’s not been easy,” Bryant said, adding: “There were moments when we were pretty much shouting at each other across the table to try and land the best deal for both of our two countries.”
Bryant added that the fundamental aim was to “dramatically improve the opportunity for British businesses and Swiss businesses to do trade with each other.”
Since 2019, the two countries had operated under a temporary arrangement allowing firms to send staff across borders without navigating complex visa processes, but Monday’s agreement makes that policy permanent.
The permanent deal also extends visa-free access to Swiss residents who originally come from other countries, broadening the scope of the original temporary arrangement considerably.
Services account for more than 80 per cent of Britain’s economy, making Monday’s agreement particularly significant as the first UK trade deal focused solely on services rather than goods.
The Switzerland agreement is the latest in a series of trade pacts struck since Brexit, following deals with India, South Korea, the Gulf Cooperation Council, and the United States.
Previous negotiations have focused heavily on goods, with the India deal centred around whisky, clothing and carmakers, while the South Korea deal reduced tariffs on items like salmon and Guinness.
The UK was also the first country to sign an agreement with the United States following Donald Trump’s sweeping liberation day tariffs, which reduced trade barriers between the two nations.
Prime Minister Keir Starmer said the deal means “British firms will find it easier to sell their expertise in one of our most important markets in Europe, supporting jobs and investment here at home.”
“This landmark agreement is the sixth trade deal we’ve secured in two years and will open up new opportunities for British businesses and help drive growth across the country,” Starmer added.