Swiss decision Unplug After seven years of arduous negotiations with Brussels, the aim is to establish a closer and more stable trade relationship with the European Union, which has nothing to do with Brexit. But this may cause long-term damage to the Swiss economy, which has almost benefited from almost complete access to the EU’s internal market. Inevitably, this also highlights the difficulties that the EU seems to encounter in living with its neighbors. The loss of Britain, Europe’s largest trading partner, may be considered misfortune. Losing the second largest Switzerland may seem like carelessness.

Swicksit is like Brexit. The two ancient democracies have been chasing their noses for price tags and market access conditions, choosing a looser and more distant relationship, the cost of which has been taken by their political elites They are seriously underestimated. Britain is pinning its hopes on the commercial interests of other EU countries to prompt Brussels to maintain its terms of trade. Switzerland also fell for the same illusion.

There are also differences. Switzerland actually wants to establish closer ties with the EU, for example in energy or health. This year, the UK’s trade with the EU has declined. The consequence of Berne’s decision to negotiate garbage with the EU will be a gradual decline in its market access: Slow Motion Swexit.

In 1992, Swiss voters decided not to upgrade their two-year free trade agreement to full single market membership. However, in the years since this landmark decision, Switzerland has added many aspects of the market and other areas of cooperation to the patchwork of bilateral agreements. The country enjoys barrier-free trade in goods, trade in services, travel without borders, the right to live and study throughout the EU, mutually recognized professional qualifications, and the right to obtain EU research and education programs.

When the EU is tired of endless negotiations and bargaining in Berne (for example, withholding budget contributions as a bargaining chip), it insists on reaching a framework agreement. This will upgrade and update Switzerland’s market access agreement while establishing new governance arrangements, requiring Switzerland to adjust its rules whenever the EU updates its regulations. There will be a dispute resolution mechanism.

The Swiss government signed the agreement but failed to sell it back home. Critics began to separate it, saying it would undermine Switzerland’s immigration policy and wage protection. Brussels has made some special concessions to meet Swiss concerns, including a 90-day limit for foreign companies to provide services to protect the Swiss labor market. However, Switzerland’s nationalist rights and pro-Left unions actually combined to kill it.

Some Swiss people who oppose the framework agreement claim that the EU’s insistence on dynamic adjustment of rules will overthrow the local and direct democracy that Switzerland holds dear. But the country has been the ruler of the European Union for decades. Unlike the United Kingdom, the United Kingdom has gained greater flexibility in its trade agreement with the European Union, while Switzerland actually enjoys complete integration in the single market.According to a Learn, Its per capita income is higher than that of any EU country.

As the EU updates its rules and Switzerland loses its status, these benefits will now be eroded. It has lost it in stock exchanges and medical devices. Swiss companies are resilient. Strong currencies may be more of a headache than regulatory disruption. One of the richest countries in the world will become less wealthy. That is the sovereign decision of Switzerland. But it can no longer expect special treatment.