Updated Single Market Agreements
Summary: Six existing agreements from the Bilateral Agreements I are updated under the Bilateral Agreements III and equipped with institutional elements (dynamic adoption of law, dispute resolution, oversight). The most important innovation concerns the MRA update in the area of medical devices, whose blockade since 2021 has burdened the Swiss medtech industry.
¶ Which Agreements Are Being Updated?
The Bilateral Agreements III update six of the seven sectoral agreements of the Bilateral Agreements I (1999). The Research Agreement is not updated but replaced by a new programme association (Horizon Europe) [1].
| Agreement | Signed | Key Update |
|---|---|---|
| Free Movement of Persons (FMPA) | 1999 | Institutional elements, wage protection protocol |
| Overland Transport | 1999 | Dynamic adoption of law, state aid rules |
| Air Transport | 1999 | Dynamic adoption of law, state aid rules |
| Agriculture | 1999 | Extended scope, food safety link |
| MRA/TBT | 1999 | Update of all chapters incl. medical devices |
| Public Procurement | 1999 | Extension to sub-national level |
¶ The Six Updated Agreements in Detail
¶ 1. Free Movement of Persons (FMPA)
The Agreement on the Free Movement of Persons is politically the most contentious element of the Bilateral Agreements III. The update comprises [1][5]:
- Dynamic adoption of law: Switzerland will in future adopt relevant developments in EU law in the area of free movement of persons
- Wage protection protocol: 14 domestic measures to protect Swiss wages are contractually secured (-> Wage Protection Compromise)
- Safeguard clauses: Switzerland retains safeguard clauses and permanent exceptions to manage immigration and secure wage levels [1]
The adoption of the EU Citizens' Rights Directive -- one of the three sticking points of the failed InstA -- was resolved through an exception for Switzerland [1].
¶ 2. Overland Transport
The Overland Transport Agreement regulates cross-border road freight and passenger transport as well as rail transit. The update comprises [1][3]:
- Dynamic adoption of the relevant EU transport regulations
- State aid rules for the overland transport sector
- Dispute resolution via the parity-based arbitration tribunal
¶ 3. Air Transport
The Air Transport Agreement grants Swiss airlines access to the EU air transport market. Update [1][3]:
- Dynamic adoption of EU aviation regulations
- Adjustment of state aid rules
- Modernised competition provisions
¶ 4. Agriculture
The Agriculture Agreement facilitates trade in agricultural products. Update [1]:
- Extended scope
- Link to the new Agreement on Food Safety (-> New Agreements)
- Dynamic adoption of law in the relevant areas
¶ 5. MRA/TBT (Technical Barriers to Trade)
The update of the Agreement on Mutual Recognition of Conformity Assessments (MRA/TBT) is economically the most significant innovation. Since the InstA termination in May 2021, the MRA chapter on medical devices had not been updated -- with considerable costs for the Swiss medtech industry (-> Erosion of the Existing Agreements) [1][3].
Concretely:
- Full update of all MRA chapters, including medical devices and in-vitro diagnostics
- End of the double certification requirement in place since 2021
- Dynamic adoption of law for future changes to technical standards
- Estimated savings: several hundred million francs annually for the industry [3]
¶ 6. Public Procurement
The Agreement on Public Procurement mutually opens procurement markets for Swiss and EU companies. Update [1]:
- Extension of scope to sub-national level (cantons, municipalities)
- Dynamic adoption of law
- Dispute resolution mechanism
¶ What Changes Compared to the Status Quo?
The central innovation in all six agreements is the replacement of the previous static model with a dynamic system [5]:
| Aspect | Previously (Bilateral I) | New (Bilateral III) |
|---|---|---|
| Legal status | Frozen at 1999/2002 | Dynamically updated |
| Adjustment | Only through Joint Committees (unanimously) | Automatic adoption with opt-out |
| Dispute resolution | Political (Joint Committees) | Legal (arbitration tribunal) |
| Oversight | No uniform oversight | Independent oversight |
The dynamic adoption of law and the dispute resolution procedure are explained in detail in separate articles:
¶ Sources
[1] FDFA (2026). Switzerland-EU Package (Bilateral III). Federal Department of Foreign Affairs. [Open Access]
[3] GTAI (2026). Agreements of the Switzerland-EU package signed. Germany Trade & Invest. [Open Access]
[5] FDFA (2026). Fact sheet: Institutional elements. Federal Department of Foreign Affairs. [Open Access]
Last updated: March 2026