Denis Balibouse | Reuters
It marks the sixth trade deal struck by the U.K. in two years and comes as the governing Labour Party seeks closer ties with Europe as part of a post-Brexit reset. While Switzerland is not a European Union member, it is deeply integrated into the European single market via a network of bilateral treaties.
The British government estimates the free trade agreement to eventually unlock £5.2 billion ($6.96 billion) a year in additional exports to Switzerland over the coming years.
A separate agreement will also allow those travelling between the two nations to use e-gates to speed up airport waiting times, while scrapping data roaming charges for visitors.
In a statement, the U.K. government described the deal as the “most significant trade agreement for services” ever concluded by the country. Both economies are heavily dependent on the services industry, which contributes 81% of UK GDP and 83% of employment, per government figures.
Britain’s “historic destiny” to rejoin the EU
“There are lots of areas where we’re very similar, of course, whether it’s in financial services, provision of insurance, or life sciences and pharmaceuticals,” he told CNBC’s Ritika Gupta.
Bryant also said the government wants trade with the European Union to be as frictionless as possible, adding that he believes that the country’s “historic destiny” is to rejoin the bloc.
U.K. trade minister Peter Kyle added: “This is the most significant services trade deal the UK has ever negotiated. It will bring huge benefits to British business and consumers and comes after a slew of deals with the US, Europe, the Gulf, South Korea and India.”
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