Staff Writer
The United States, Switzerland and Liechtenstein have announced plans to negotiate a major economic pact aimed at reshaping trade and investment ties, boosting job creation and strengthening supply chain security.
The White House said the three countries will work under a new “Framework for an Agreement on Fair, Balanced, and Reciprocal Trade”, with the goal of concluding negotiations by the first quarter of 2026.
If completed, the agreement will create a modern trading relationship that expands market access, promotes investment and strengthens cooperation in sectors such as manufacturing and digital services.
Switzerland and Liechtenstein expressed strong intentions to increase direct foreign investment in the United States. Switzerland plans to encourage at least US$200 billion in investment across all 50 states over the next five years, with a focus on manufacturing and research and development jobs. Liechtenstein aims to support US$300 million in investment and increase the number of US jobs created by its private sector by 50% over the same period.
The US will use reciprocal tariff policies to assess whether these commitments are met. One third of the new investments are expected by the end of 2026.
As part of the talks, Switzerland and Liechtenstein intend to remove duties on all US industrial goods, along with US seafood and selected agricultural products. They also plan to expand tariff rate quotas for other American farm exports.
The US plans to apply a mix of most favoured nation tariffs and reciprocal tariffs of up to 15% on Swiss and Liechtenstein goods. Tariffs on certain pharmaceuticals and semiconductors from the two countries will also be capped at 15% under national security rules.
The three countries aim to reduce regulatory hurdles by recognising each other’s conformity assessment bodies and aligning on international standards. Switzerland plans to work with the US on the recognition of US automotive safety standards and broader acceptance of US-approved medical devices.
Agricultural trade issues will also be addressed. Switzerland has committed to reviewing barriers that limit US poultry imports and to continuing cooperation on beef and dairy certification requirements.
The agreement will include cooperation on countering non-market policies from third countries, strengthening export controls and sanctions, and aligning approaches to foreign investment reviews based on national security. The parties also plan to work together to secure critical supply chains.
Negotiations will begin immediately, with the aim of coordinating the timing of domestic approval processes. The framework outlines a shared vision but does not create legal obligations.
If successfully concluded, the agreement could become one of the most significant economic partnerships between the US and European countries in decades, shaping future trade rules and long-term investment flows.
