Negotiations for a new free trade agreement (FTA) between Switzerland and the UK will begin later in May, as per a joint statement issued on Monday.

Switzerland’s economic minister, Guy Parmelin held talks with his UK counterpart Kemi Badenoch on Monday in Bern to give the negotiations the go ahead from 22nd May. 

In addition, both countries have been looking at ways to bolster the trade of cross-border financial services, Swiss Info reports. 

Back in 2019, a stop-gap trade treaty was introduced between both nations to keep a number of the measures that were in place before Brexit. 

This treaty was primarily based on the provisions of the Swiss-European Union free trade agreement penned in 1972.

According to the British Department for Business and Trade, the treaty is outdated as it was signed “before the advent of the home computer or the internet – and does not cover services, investment, digital or data”. 

“As two of the world’s leading service economies, there’s a huge prize on offer to both the UK and Switzerland by updating our trading relationship to reflect the strength of our companies working in areas ranging from finance and legal, to accountancy and architecture,” Badenoch said on Monday. 

“The UK and Switzerland are natural trading partners and today’s launch will play to our strengths as services superpowers, while also boosting investment in emerging technologies, data innovation, and digital trade.” 

Badenoch is hopeful that a new free trade agreement could save UK businesses £7.4 million each year with the reduction of tariffs. Another goal of the deal is to create “simpler trade rules for products of origin, customs procedures and digitisation.” 

“Switzerland aims to integrate provisions on trade in services, investment, digital trade, intellectual property rights, small and medium-sized enterprises, and trade and sustainable development,” the Swiss government said.

“The new agreement is intended to ensure non-discriminatory market access conditions in various areas that are important for the Swiss economy, contribute to strengthening legal certainty for economic exchange and cooperation between Switzerland and the UK.”