The UK’s path to better international trade deals could lead via Switzerland.

A trade agreement with Switzerland could serve the UK as a model for agreements with other countries, news outlet «fnlondon» reported Friday.

Current trade talks which aim to achieve mutual recognition of each other’s regulatory and supervisory regimes in banking, asset management, capital markets and insurance have been productive and are expected to lead to a comprehensive agreement by the end of the year, the report said.

Milestones

Since Brexit, the two countries have normalized their relations in the stock exchange sector, with the UK recognizing the Swiss stock exchanges as equivalent and Switzerland lifting its stock exchange protection measure against the UK.

At the end of June 2020, former British chancellor of the exchequer Rishi Sunak and Federal Councillor Ueli Maurer signed a memorandum of understanding. Since then, both sides have reaffirmed that they will press ahead with negotiations.

Capital Markets

Reaching an agreement with Switzerland would be an important milestone for the UK’s new government, especially since its US talks are stalling due to the complex relationships with a large number of financial regulators involved. 

Furthermore, the two countries represent up to 70% of capital markets activity within Europe, the report said.