Summary: The Bilateral Agreements I are seven sectoral agreements between Switzerland and the EU, signed in 1999 and entering into force in 2002. They regulate mutual market access in key economic sectors and are linked through a guillotine clause. The Bilateral Agreements I form the economic backbone of the bilateral relationship.
On 6 December 1992, Swiss voters rejected accession to the European Economic Area (EEA) with 50.3 per cent voting No. With a turnout of 78.7 per cent, it was one of the closest and most consequential votes in Swiss history. The cantons voted 16 to 7 against [1].
The EEA rejection meant that Switzerland -- unlike Norway, Iceland and Liechtenstein -- did not receive privileged access to the EU single market. To compensate for the economic disadvantages, the Federal Council began sectoral negotiations with the EU. These culminated in the Bilateral Agreements I in 1999 [2].
The Bilateral Agreements I consist of seven sectoral agreements signed on 21 June 1999 in Luxembourg and simultaneously entering into force on 1 June 2002 [2]:
The Agreement on the Free Movement of Persons (FMPA) grants Swiss citizens and EU nationals the right to live and work in each other's territory, provided they hold a valid employment contract, are self-employed, or have sufficient financial means [3].
The FMPA is the most politically contentious of the seven agreements. It has been confirmed in several popular votes, most recently on 27 September 2020 when the SVP's Limitation Initiative was rejected with 61.7 per cent voting No.
The Agreement on Mutual Recognition of Conformity Assessments (Mutual Recognition Agreement, MRA) enables products tested and approved in Switzerland to be marketed in the EU without additional testing, and vice versa. This covers areas such as machinery, medical devices, electrical equipment and construction products [2].
This agreement opens access to public tenders at municipal and district level as well as in the area of public utilities (water, energy, transport, telecommunications) [2].
The Agriculture Agreement facilitates trade in agricultural products by reducing tariffs and technical barriers to trade in certain areas (e.g. cheese, wine, fruit and vegetables) [2].
The Overland Transport Agreement regulates goods and passenger transport by road and rail. It includes the gradual increase of the weight limit for lorries to 40 tonnes and the introduction of the distance-related heavy vehicle charge (LSVA) [2].
The Air Transport Agreement gradually grants Swiss airlines the same rights as EU airlines in the European air transport market. Switzerland applies the relevant EU regulations in aviation [2].
The Research Agreement enabled Switzerland's participation in the EU Framework Programmes for Research (then the 5th Framework Programme). This agreement has been renewed several times since, though participation was not always guaranteed [2].
A distinctive feature of the Bilateral Agreements I is the guillotine clause: the seven agreements are legally linked. If one agreement is terminated, the remaining six automatically lapse as well. This clause was an EU requirement to prevent Switzerland from "cherry-picking" [2].
The guillotine clause has significant political implications: with the Mass Immigration Initiative (2014) and the Limitation Initiative (2020), the question of free movement of persons always put the entire bilateral path at stake.
The Bilateral Agreements I are of great importance to the Swiss economy. The EU is Switzerland's most important trading partner:
| Indicator | Value | Source |
|---|---|---|
| EU share of Swiss exports | ~60% | [4] |
| EU share of Swiss imports | ~70% | [4] |
| Trade volume CH-EU (2024) | ~1 billion CHF daily | [4] |
| Swiss jobs dependent on EU relations | approx. 1 million | [5] |
Note: economiesuisse is a business federation representing employer interests. Figures should be read in this context. [5]
The Bilateral Agreements I resolved the immediate problem of market access after the EEA rejection, but have structural weaknesses:
These weaknesses led in subsequent years to demands for an institutional framework -- a debate that continues to shape Swiss European policy to this day.
[1] Federal Chancellery (1992). Popular vote of 6 December 1992. Swiss Confederation. [Open Access]
[2] FDFA (2026). The Bilateral Agreements I. Federal Department of Foreign Affairs. [Open Access]
[3] Fedlex: Agreement on the Free Movement of Persons (FMPA), SR 0.142.112.681. Classified Compilation of Federal Legislation. [Open Access]
[4] SECO (2026). Significance of the Bilateral Agreements for the economy. State Secretariat for Economic Affairs. [Open Access]
[5] economiesuisse (2024). The economic benefit of the bilateral agreements is clearly positive. Dossier Politik. [Open Access] Note: Business federation, not an independent source.
Last updated: March 2026