Press release – Bilaterals III: stable relationships with our principal trading partner

Interpharma, the association of Switzerland’s research-based pharmaceutical companies, supports the package approved by the Federal Council to stabilize and further develop relations with the European Union (EU). The industry sees more advantages than disadvantages in this solution, even if some points have drawn criticism. The package secures the agreements that are critical for research-based pharmaceutical companies. In these times of increasing geopolitical uncertainty, this is a key advantage for Switzerland as a business location.

The research-based pharmaceutical industry relies on stable economic conditions. Approximately 40% of Swiss exports are attributable to the pharmaceutical industry, and almost half of these exports – worth around CHF 105 billion – are to the European Union. This highlights the importance and significance of functioning market access.

Package provides a sound legal basis and planning certainty

The negotiated package of tailor-made sectoral participation in the EU single market for Switzerland as well as cooperation in selected areas further enhances the attractiveness of Switzerland as a location for research, development and production. It contributes to guaranteeing security of supply, safeguarding innovative strength and positioning Switzerland as a reliable partner. The package also accounts for the industry’s wish that relations be intensified only in areas that are in the interest of domestic stakeholders. Of particular note for the pharmaceutical industry in this regard are the Agreement on Mutual Recognition in relation to Conformity Assessment (MRA), the free movement of persons, and research cooperation. Overall, the package provides a sound legal basis and planning certainty for research, development and production in the pharmaceutical industry.

“The Bilateral IIIs provide certainty and a solid planning basis for the largest sales market for Switzerland’s most important export industry,” says René Buholzer, CEO of Interpharma.

The failure of the bilateral agreements would entail high risks for the pharmaceutical industry, as the competitiveness of Switzerland as a research and production location is heavily dependent on stable relations with the EU, and in particular on barrier-free access to its internal market. This, in turn, would jeopardize the security of supply for patients.

Ensuring that mutual conformity assessments are updated

Interpharma welcomes the integration of institutional elements into the Agreement on Mutual Recognition in relation to Conformity Assessment (MRA). However, we would like to emphasize that the proper functioning of the MRA must be ensured even if the EU revises its pharmaceutical legislation before the package enters into force. This is the only way to maintain security of supply for patients and barrier-free trade with the EU.

Improvements to the free movement of persons

Interpharma appreciates the fact that the requirements of the Swiss mandate – with the exception of wage protection – were able to be implemented in the negotiations. At the same time, with the safeguard clause in the Amending Protocol to the Agreement on the Free Movement of Persons, Switzerland was able to negotiate an improvement to the mandate that takes domestic political needs into account. We welcome the fact that the free movement of persons can continue to be used for the benefit of the labor market, but also that Switzerland can activate the specified safeguard clause in the event of serious economic and social anomalies. Access to highly qualified specialists is extremely important for the research-based pharmaceutical industry; the domestic labor market alone cannot meet the demand. At the same time, we are aware that immigration causes worries and fears in some segments of the Swiss population. We take these seriously. Appropriate measures are therefore also required to make better use of domestic labor potential, along with strategic measures in political asylum, housing and infrastructure policy. A liberal labor market remains a key pillar of Switzerland’s competitiveness.

Important association with Horizon Europe

Interpharma also welcomes Switzerland’s association with Horizon Europe. International networking is a cornerstone of Switzerland’s innovative strength and competitiveness as a research location. The return to European research programs strengthens Switzerland’s position as one of the most innovative countries in the world.

Health agreement remains critical

Restricting the Switzerland-EU health agreement to cooperation in the field of public health makes sense from the industry’s standpoint. Interpharma remains critical of any possible future expansion of the agreement, and fundamentally rejects such expansion.