The UK and Switzerland signed a trade agreement early this week, designed to drive stronger commercial ties between the two countries.
It is estimated that this monumental trade deal is set to boost UK-Swiss bilateral trade services by £5.2 billion year by year.
In a recent Government press release, Trade Secretary Peter Kyle said: “This is the most significant services trade deal the UK has ever negotiated. It will bring huge benefits to British business and consumers and comes after a slew of deals with the US, Europe, the Gulf, South Korea and India.”
Business owners across the UK need to understand how this trade deal will affect their business and how they can leverage it to their advantage.
What is the trade deal?
The new UK-Switzerland trade deal focuses on boosting services trade between the two economies, which are heavily reliant on sectors, such as finance, insurance, technology, and professional services.
The agreement is designed to give UK businesses greater access to the Swiss market, reduce barriers for service providers and support the growth of digital trade.
It also makes it easier for professionals to work across borders, with provisions that allow many UK service providers to operate in Switzerland for up to 90 days a year without a visa.
It will also enable businesses to transfer employees more easily between the two countries, allowing them to work in each nation.
There are also consumer benefits, such as plans to remove roaming charges and allow UK travellers to use Swiss airport e-gates.
The deal is expected to increase UK exports to Switzerland and strengthen economic ties between the two countries.
What are the benefits for UK businesses?
The deal is expected to increase UK services exports to Switzerland by £5.2 billion a year over the long term, building on an already significant services trading relationship worth more than £30 billion annually.
For service-based firms, including those in finance, technology, legal services, consulting and insurance, the agreement should reduce barriers to entering the Swiss market and offer greater certainty when exporting expertise.
UK professionals will be able to work in Switzerland for up to 90 days a year without a visa and businesses should find it easier to transfer staff to Swiss offices for longer periods.
Modern digital trade provisions will also support cross-border data flows, helping technology and digital businesses operate more efficiently.
What do you need to do now that the UK-Switzerland trade deal has started?
This deal is set to boost investments in businesses across the UK. Now is the time to assess if the UK-Swiss deal is beneficial to your business and its international operations or plans.
This is especially true for the most in-demand sectors, such as finance, insurance, technology and professional services.
Once you have assessed demand, one of the most important steps is to get your tax position right from day one of your trading relationship.
One of the biggest risks of international expansion is incorrect cross-border tax treatment.
You need to ensure that your global operations are tax-efficient and that you are compliant with Switzerland’s tax rules.
Our team are here to help you asses you tax position and can advise you on the most tax-efficient ways of trading with Switzerland.
If you want to learn about how the UK-Swiss trade deal can positively impact your business, get in touch today.