Federal Department of Foreign Affairs FDFA Directorate for European Affairs DEA / Swiss Mission to the EU Switzerland s European policy Josef Renggli, Deputy Head, Swiss Mission to the EU 7/10/2016
Switzerland at the heart of Europe The 28 EU countries EEA EU membership candidates 2
Foreign population in Switzerland 2015 Total population 8,325,194 Foreign nationals 1,993,916 Cross border commuters 304,117 31.6% EU-28/EFTA: 1,363,736 Other states: 630,180 68.4% Sources: State Secretariat for Migration SEM & FSO 3
Swiss citizens abroad 2015 14% Total: 761,930 Europe: 472,202 (96.5% in EU-states) America: 183,702 24% 62% Other states: 106,026 Source: FDFA, Statistics on Swiss abroad 2015 4
Intense economic relations CH EU CHF 121bn (72% of CH imports) Trade 2015 (*1) CHF 109bn (54% of CH exports) EUR 632.3bn Direct investment 2014 (*2) EUR 509.4bn Sources: (*1) Swiss-Impex (Total 1), (*2) Eurostat EUR 116.4bn Services 2015 (*2) EUR 68.6bn 5
50 Foreign trade with neighboring countries 2015 (bn CHF) 47 40 30 36.6 Exports Imports 20 10 0 13.9 13.3 5.7 7.3 F D A Foreign trade volume 2015 Neighboring countries 16.1 12.8 I Others 13.9 13.3 47 12.8 36.6 7.3 5.7 16.1 41% 59% Source: Swiss-Impex (Total 1) 10
Comparison of the trade volume (exports/imports in bn CHF) CH EU: 277.7 CH Baden-Württemberg*: 30.1 CH USA: 49.6 CH Russia: 3.9 CH China: 31.7 Figures according to the Swiss-Impex database of the Swiss Customs Administration, 2015 * Federal Statistical Office (DE), 2015 7
The bilateral approach CH EU relations: bilateral sectorial agreements Tailor-made contractual solutions No co-decision rights for Switzerland at EU level Institutional independence of Switzerland 8
The bilateral agreements Reciprocal market access / legal harmonization / mutual recognition Cooperation / participation programmes Fiscal issues Bilateral approach as a recipe of success 9
B. I B. II Bilateral agreements Switzerland EU 10
Initiative «Stop mass immigration» Adoption on 9 February 2014 with 50.3% of the votes and the majority of the cantons Core elements according to the new art. 121a Cst 1. Switzerland autonomously regulates immigration. 2. a) Restriction of residence permits through annual quantitative limits and quotas. b) The right to permanent residence, family reunification and social benefits may be limited. 3. a) Quantitative limits and quotas must be geared towards Switzerland's overall economic interests. b) Businesses must give priority to persons already resident in Switzerland when hiring staff. 4. No treaties of international public law that infringe the article. 5. Details to be defined at the legislative level. 11
Finding a solution on the free movement of persons The new article on immigration of the Swiss Federal Constitution, article 121a, is not compatible with the Agreement on the free movement of persons (AFMP). The AFMP must be renegotiated within three years in order to adapt to the new Swiss immigration system. If within three years there is no implementation at legislative level, the Federal Council will have to implement the new provisions on immigration as per ordinance. 12
Federal Council objectives 1. Better control and limitation of migration 2. Solution on the free movement of persons 3. Strengthening and development of the bilateral approach 13
Steps to implement the «Stop mass immigration» initiative 1. Adoption of the initiative «Stop mass immigration» 2. Adoption of implementation concept 3. Adoption of draft amending the Foreign Nationals Act (FNA) and negotiating mandate to renegotiate the AFMP 4. Results of the evaluation of the consultation on the amended FNA 5. Federal Council dispatch to Parliament on the FNA 6. Debate in Parliament on amendment of the FNA 7. Vote? 9.2.2014 11.2.2015 4.3.2016 Early 2017 1 2 3 4 5 6 7 20.6.2014 Autumn 2015 Autumn/winter 2016 14
Institutional issues Aim: In the framework of the institutional issues, Switzerland and the EU discuss mechanisms for applying the existing and future bilateral agreements in a more uniform and effective manner. Harmonisation of legislation Dispute settlement Supervision Interpretation 15
Four aspects of the institutional issues Harmonisation of legislation: What procedures should be employed to adjust agreements to new legal developments in the EU acquis? Supervision: How can the consistent application of the bilateral agreements be ensured? Interpretation: How can the consistent interpretation of the bilateral agreements be ensured? Dispute settlement: By what procedures should disputes between Switzerland and the EU be settled? 16
Federal Council negotiating mandate Harmonisation of legislation: Dynamic adjustment to developments in the EU acquis in accordance with domestic procedures (no automatic adoption) Supervision: Each party supervises the application of the agreements on their respective territory; overall supervision is provided by the competent joint committee Interpretation: Consistent interpretation of EU law in compliance with the principles of public international law and the jurisprudence of the Court of Justice of the European Union (CJEU) Dispute settlement: Settling disputes in the joint committee with the option of addressing the CJEU to interpret legal issues; compensatory measures or suspension of an agreement in the event of unresolved disputes 17
State of affairs Mandate CH EU Political decision Harmonisation of legislation Three options Draft mandate & consultation Negotiations Dispute settlement Supervision Interpretation 30
Future negotiaions / agreements Electricity Financial services Europe Creative / Media Health cooperation Food security
Integrative vs distributive negotiation how does this apply to current EU/Swiss negotiations? Distributive negotiation is a negotiation in competitive way over one issue, a win-lose situation, such as haggling over a price in a bazaar. Integrative negotiation is a negotiation that can look for win-win solutions or problem solving in order to achieve a mutual gain.
Six steps in integrative negotiation 1. Sides need to agree on what is the problem 2. What are the interests behind the positions 3. Generate alternative solutions: Redefine the problem Expand pie Logroll Offer compensation in other area Minimize costs Bridge Generate solutions (for the given problem) 4. Make a list of solutions 5. Prioritize options and reduce the list 6. Select a solution
Harvard method was it followed? Key principle of the Harvard Method Fundamental question: What is the best way for people to deal with their differences? Problem: Negotiators tend to bargain over positions and lock themselves into those positions Suggested solution: Focus on principled negotiation or negotiation on the merits instead of positions (e.g., create respective values)
Other negotiation rules how were they applied? No threats that are not credible Link dossiers / expand negotiation issues was this done? Do not disclose red lines!