The Services Mobility Agreement (SMA) is extended for another three years. It allows UK professionals to work in Switzerland without a permit for up to 90 days a year.
Both countries nodded to renew the Services Mobility Agreement after lengthy negotiations. The agreement has been in place since the beginning of 2021. It has made it quite simple for businesses to deliver services in each other’s nations by enabling people to work in both locations.
With the agreement’s extension, UK professionals, including accountants, attorneys, and advertising creatives, can continue to travel and conduct business in Switzerland without a visa for up to 90 days per year.
With almost £12 billion in exports last year, Switzerland stands sixth on the list of largest service exporters for the UK. The majority of these accounts for £6.5 billion and include accounting, architectural, and legal services termed as “other business services.” Besides, financial services account for £1.9 billion.
Now, the SMA is being extended for an additional three-year period, giving Swiss and UK businesses much-needed security. Moving skilled workers between nations is essential for service exports. It allows for project delivery and in-person interactions that aid in attracting new clients and deals.
A new free trade agreement is also on the cards to be discussed next year. This one will set long-term rules for the mobility of services and significantly improve trade between the UK and Switzerland further.
Kemi Badenoch, Trade Secretary, said, “The UK and Swiss economies are both services powerhouses and closely aligned. Today’s agreement is a win-win for both sides. From financial services in Edinburgh to cyber security in Wales, the deal ensures UK businesses capitalise on the huge opportunities on offer.”
Switzerland has topped the Global Innovation Index for twelve years in a row and is an innovation leader. For businesses all around the UK, already sending billions of dollar worth of services each year, it brings enormous prospects. Wales, which is home to a robust cyber security industry exported £175 million in services to Switzerland in 2020 compared to Scotland’s £700 million.
Confederation of British Industry’s Chief Economist, Rain Newton-Smith, said, “Businesses across the UK will welcome today’s extension of the Services Mobility Agreement, as called for by the Trade in Services Council. With four in five UK jobs located in the services sector, the ability to work in Switzerland is hugely beneficial for firms trading with the UK’s 7th largest export market. The business will hope this injects crucial momentum as the UK and Switzerland prepare to negotiate an enhanced FTA.”
Chris Hayward, the City of London Corporation’s Policy Chairman, said, “The extension of the Service Mobility Agreement is hugely welcome. Access to the world’s best talent and a capacity to move highly skilled labour between the UK and Switzerland is of paramount importance to the financial and professional service sector.”