IN A MOVE set to bolster trade between the United Kingdom and Switzerland, a new agreement has been reached that recognizes UK professional qualifications in Switzerland and vice versa. The agreement aims to provide a certain and transparent system for UK-qualified professionals in regulated sectors, such as law, architecture, and audit, to have their qualifications acknowledged in Switzerland, and vice versa.
This breakthrough could have significant implications for British companies, as it ensures they can compete for a greater number of contracts in Switzerland over time. Consequently, it has the potential to boost UK services exports, foster economic growth, and encourage Swiss investment into the UK.
Industry bodies and stakeholders have expressed their support and appreciation for the agreement, which will come into effect at the beginning of 2025. It will replace the interim arrangements on Recognized Professional Qualifications (RPQ) that were established with Switzerland prior to the UK’s departure from the European Union.
Highlighting the importance of supporting the services sector, Business and Trade Secretary Kemi Badenoch emphasized how the agreement plays a crucial role in promoting the export of world-class expertise and driving economic growth. Badenoch also noted that this development follows the commencement of free trade deal negotiations between the UK and Switzerland, further solidifying the prospects for UK companies to compete for more contracts in Switzerland, enhance services exports, and attract new Swiss investment to the UK.
The UK and Switzerland are both global leaders in service economies, with their services sectors constituting over 70% of GDP for each nation. Notably, the two countries traded £24 billion worth of services in 2022, establishing Switzerland as the UK’s seventh-largest partner in services trade.
Lubna Shuja, President of the Law Society of England and Wales, highlighted the significance of the Swiss market for UK legal services, as it is the third-largest export destination in Europe. Shuja emphasized that this agreement will benefit not only the members of the Law Society but also the broader economy. The legal services sector is crucial for facilitating international business transactions and providing vital support to UK and multinational firms involved in exporting. Furthermore, it consistently generates a trade surplus, with net exports of UK legal services amounting to £5.4 billion in 2021.
Christina Seilern, Founder and Principal of Studio Seilern Architects, shared her perspective as an architect who has worked extensively in both Switzerland and the UK. Seilern explained how her Swiss background has played a pivotal role in her career, which has been based in London for almost two decades. She emphasized the global nature of the architectural industry and expressed her belief that this agreement will reduce barriers and enable architects to continue making meaningful contributions to cities, economies, and communities in both Switzerland and the UK.
The newly established agreement follows the launch of negotiations for a free trade agreement between the UK and Switzerland in Bern last month. This comprehensive trade agreement aims to enhance trade between the two nations by removing market access barriers, improving regulatory cooperation, and providing UK firms with an equal footing to compete in Switzerland.
Notably, the RPQ agreement included within the broader trade deal outlines a specialized pathway for recognition of certain legal professionals. This provision allows lawyers to qualify in the other country following registration and a three-year practice period, subject to conditions outlined in the agreement. Additionally, the agreement ensures the autonomy of UK regulators in setting and maintaining professional standards and determining the eligibility of practitioners.
This momentous agreement signifies a significant step forward in strengthening trade ties between the UK and Switzerland, providing greater opportunities for professionals in regulated sectors and paving the way for increased collaboration and economic growth.
