Summary: The package approach is the fundamental architectural principle of the Bilateral Agreements III. Instead of a separate framework agreement (as with the failed InstA), the institutional mechanisms are integrated directly into each sectoral agreement -- a so-called "vertical" approach. The 18 agreements form an indivisible whole.
The Institutional Framework Agreement (InstA), which the Federal Council terminated on 26 May 2021, pursued a horizontal approach: an overarching agreement was to serve as an "umbrella" over the existing market access agreements, establishing institutional rules -- dynamic adoption of law, dispute resolution and oversight [1][2].
This model failed on three core problems:
The Bilateral Agreements III take a fundamentally different approach. The institutional elements are not consolidated in a separate framework agreement but are directly embedded in each individual sectoral agreement [1][5].
Concretely, this means: each of the 18 agreements contains its own provisions on:
The vertical approach offered several advantages for the negotiations [5][17]:
| Category | Agreement | Status |
|---|---|---|
| Updated agreements | Free Movement of Persons (FMPA) | Existing agreement updated |
| Overland Transport | Existing agreement updated | |
| Air Transport | Existing agreement updated | |
| Agriculture | Existing agreement updated | |
| MRA/TBT (Conformity Assessment) | Existing agreement updated | |
| Public Procurement | Existing agreement updated | |
| New agreements | Electricity | New agreement |
| Food Safety | New agreement | |
| Health | New agreement | |
| Programme participation | Horizon Europe (Research) | Association |
| Erasmus+ (Education) | Association | |
| Digital Europe | Association | |
| Other EU programmes (Culture, Youth, Sport) | Association | |
| Institutional | Institutional provisions | Vertically integrated |
| Financial | Cohesion contribution | New agreement |
| Flanking | Wage protection measures | Domestic implementation |
Note: The exact count of 18 agreements varies slightly depending on the source, as some elements (e.g. programme participation) can be counted as one or more agreements [1][3].
The 18 agreements form an indivisible whole (package approach). This means [1]:
| Mechanism | Bilateral I (1999) | Bilateral II (2004) | Bilateral III (2026) |
|---|---|---|---|
| Linkage | Guillotine clause | None (independent) | Package approach (indivisible) |
| Effect | Termination of one = lapse of all 7 | Each agreement independent | Indivisible whole |
| Flexibility | Medium (all or nothing) | High (selective possible) | Low (complete package) |
The package approach is valued by supporters as a balanced compromise: Switzerland receives tailor-made rules in each agreement rather than a "one size fits all" framework, while the EU has the assurance that all parts of the package will be implemented [15].
Critics argue that the package approach restricts freedom of action more than the guillotine clause: while the Bilateral Agreements I could theoretically be terminated as a whole, the indivisible package of the Bilateral Agreements III does not allow any "cherry-picking" -- i.e. no selective acceptance of individual agreements [16].
The question of whether the package approach truly represents an improvement over a horizontal framework agreement is assessed differently. International law scholar Michael Ambuehl and Daniela Scherer (ETH Zurich) had already analysed various institutional models in 2022 and identified the vertical approach as a possible solution [17].
[1] FDFA (2026). Switzerland-EU Package (Bilateral III). Federal Department of Foreign Affairs. [Open Access]
[2] Federal Council (2021). Press release: Termination of InstA negotiations. 26 May 2021. [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]
[15] economiesuisse (2026). Bilateral III -- The best option. Dossier Politik. [Open Access] Note: Business federation.
[16] UNSER RECHT (2026). Bilateral III -- what is it about? Information platform. [Open Access]
[17] EIZ Publishing (2022). Ambuehl/Scherer: Standpunkte Bilaterale III. Europa Institut Zurich. [Open Access]
Last updated: March 2026