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TTIP and Swiss Democracy

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European Yearbook of International Economic Law 2016

Part of the book series: European Yearbook of International Economic Law ((EUROYEAR,volume 7))

Abstract

Free Trade Agreements (FTAs) are increasingly concerned with regulatory convergence, rather than with trade liberalization through elimination of tariffs. This appears to result more often in so-called dynamic trade agreements, which still evolve after adoption. Further economic integration in democracies, however, depends on the support of the constituency. This chapter takes a closer look at the democratic legitimation of global economic integration in a case study on Switzerland. It states that the current principles and institutions of democracy in Switzerland are unlikely to fully accommodate the new regulatory challenges of dynamic FTAs.

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Notes

  1. 1.

    Cottier T, Egger P, Francois J, Manchin M, Shingal A and Sieber-Gasser C (2014) Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015).

  2. 2.

    For an overview, see: Die Bilateralen Abkommen Schweiz—Europäische Union. Directorate for European Affairs, August 2014, Swiss Confederation, Bern.

  3. 3.

    See e.g. Swiss-U.S. Trade and Investment Cooperation Forum, Fact Sheet and Agreement. SECO, March 2010, Swiss Confederation, Bern, p. 1.

  4. 4.

    Art. XXIV of the General Agreement on Tariffs and Trade (GATT).

  5. 5.

    Art. V of the General Agreement on Trade in Services (GATS).

  6. 6.

    See Directives for the negotiation on the Transatlantic Trade and Investment Partnership between the European Union and the United States of America, Declassification, ST 11103/13, DCL 1, October 9 2014, Brussels, http://data.consilium.europa.eu/doc/document/ST-11103-2013-DCL-1/en/pdf (last accessed 31 August 2015), p. 12, para. 25: “The Agreement will aim at removing unnecessary obstacles to trade and investment, including existing NTBs, through effective and efficient mechanisms, by reaching an ambitious level of regulatory compatibility for goods and services, including through mutual recognition, harmonisation and through enhanced cooperation between regulators.”

  7. 7.

    The Agreement on Technical Barriers to Trade (TBT) and the Agreement on Sanitary and Phytosanitary Measures (SPS).

  8. 8.

    Cottier et al. (2014), Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015), pp. 46–49.

  9. 9.

    Francois J and Sieber-Gasser C (2014) Zum Freihandelsabkommen EU-USA: Auswirkungen auf die Schweiz. SwissTnet, inSide online, http://www.swisst.net/cms/inside/index.php?option=com_content&task=view&id=4032&Itemid=939 (last accessed 31 August 2015).

  10. 10.

    Cottier et al. (2014), Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015), p. 38.

  11. 11.

    Cottier et al. (2014), Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015), p. 47.

  12. 12.

    Francois and Sieber-Gasser (2014). Zum Freihandelsabkommen EU-USA: Auswirkungen auf die Schweiz. SwissTnet, inSide online, http://www.swisst.net/cms/inside/index.php?option=com_content&task=view&id=4032&Itemid=939 (last accessed 31 August 2015).

  13. 13.

    Cottier et al. (2014), Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015), p. 38.

  14. 14.

    See Egger P, Francois J, Manchin M, Nelson D (2014) Non-Tariff Barriers, Integration, and the Trans-Atlantic Economy, paper prepared for the October Economic Policy Panel, Rome, p. 29.

  15. 15.

    Cottier et al. (2014), Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015), p. 48: e.g. exports of precision instruments and watches are burdened by 22.25 percent (EU) and 24.65 percent (US) of actionable NTBs, in addition to tariffs.

  16. 16.

    Consolidated CETA Text, Cooperation in the Field of Motor Vehicle Regulations, Annex, pp. 91–98.

  17. 17.

    Consolidated CETA Text, Protocol on the Good Manufacturing Practices for Pharmaceutical Products, pp. 427–441.

  18. 18.

    See Iseli C (2015) Boomende Exporte in die USA, Press Release, February 12 2015, Swiss Confederation, Bern.

  19. 19.

    Cottier et al. (2014), Potential Impacts of a EU-US Free Trade Agreement on the Swiss Economy and External Economic Relations, Rechtsgutachten erstattet Staatssekretariat für Wirtschaft SECO, http://www.wti.org (last accessed 17 August 2015), p. 47; Brändle Schlegel N, Christen A, Feubli P, Rutschi B, Stokanic V (2014) Success Factors for Swiss SMEs: Prospects and Challenges for Exports, Swiss Issues Industries, June 2014, Credit Suisse Group AG, Flawil, p. 15.

  20. 20.

    Generis AG (2012) Handbook for investors: business location in Switzerland, April 2012 edition. Osec, Schaffhausen, p. 17.

  21. 21.

    Schneider-Schneiter E (2015) Transatlantische Handels- und Investitionspartnerschaft. Interessenwahrung der Schweiz, Interpellation, 15.3638, 18 June 2015; Vonplon D, Freihandelsabkommen: Furcht vor dem Alleingang. Handelszeitung, 7 April 2015.

  22. 22.

    E.g. Eisenring C, Schweiz und USA im Dialog: Die Angst vor dem handelspolitischen Abseits. Neue Zürcher Zeitung, 12 June 2014.

  23. 23.

    See e.g. Schmid S, Blochers Gegner haben ein Ziel, aber noch keine Strategie. Aargauer Zeitung, 12 May 2015; also, Report on EEA-Switzerland: Obstacles with regard to the full implementation of the internal market, Motion for a European Parliament Resolution, A8-0244/2015, 24 July 2015, p. 6: it is suggested that the “conclusion of TTIP must not lead to new trade barriers being set up between the EU and the EEA EFTA states”.

  24. 24.

    Art. 54-6, and Art. 101 of the Swiss federal constitution (BV, SR 101).

  25. 25.

    Art. 140:1(b) of the Swiss federal constitution (BV, SR 101). Majority of both the cantons and the total votes is required.

  26. 26.

    Art. 141:1(d)2-3 of the Swiss federal constitution (BV, SR 101). Majority of the total votes is required.

  27. 27.

    Art. 152:3 of the Federal Act on the Federal Assembly (ParlG, SR 171.10).

  28. 28.

    Art. 184 of the Swiss federal constitution (BV, SR 101).

  29. 29.

    Art. 152:3 of the Federal Act on the Federal Assembly (ParlG, SR 171.10).

  30. 30.

    Art. 166 of the Swiss federal constitution (BV, SR 101).

  31. 31.

    The partial revision of the Swiss federal constitution on strengthening direct democratic rights was accepted by the Swiss people on February 9 2003 in a popular vote. The partial revision was suggested by the Swiss federal government. See Volksabstimmung vom 9. Februar 2003: Erläuterungen des Bundesrates, Bundeskanzlei, Bern, Swiss Federal Administration, pp. 6–7.

  32. 32.

    Doppelbesteuerungsabkommen mit Israel, Swiss Federal Government, BBl 2003 6475; Freihandelsabkommen mit Chile. Swiss Federal Government, BBl 2003 7136.

  33. 33.

    See chronology of Swiss referenda, Swiss federal administration, available at: https://www.admin.ch/ch/d/pore/rf/ref_2_2_3_1.html# (last accessed 18 August 2015). The only exception to the rule is the FTA with Hong Kong in 2012. The Swiss federal government suggested the submission under the optional referendum because of the novelty of the legal embedding of the agreement on labour standards in the FTA. The referendum was not seized, however.

  34. 34.

    Generally, Swiss-EU relations have resulted in a number of popular votes, be it as a referendum or as an initiative. In the past 25 years, the Swiss voting population decided at least eleven times on Swiss-EU relations. See Sieber-Gasser C (2015) Democratic legitimation of trade policy tomorrow: TTIP, democracy and market in the Swiss Constitution, Jusletter, 9 November 2015.

  35. 35.

    Kübler D, Surber M, Christmann A, Bernhard L (2012) Mehr Direkte Demokratie in der Aussenpolitik? Studien ZDA No. 2, Zentrum für Demokratie, Aarau, p. 10.

  36. 36.

    EFTA, list of on-going negotiations, available at: http://www.efta.int/free-trade/ongoing-negotiations-talks (August 31 2015).

  37. 37.

    Sieber-Gasser C (2015) Democratic legitimation of trade policy tomorrow: TTIP, democracy and market in the Swiss Constitution, Jusletter, 9 November 2015.

  38. 38.

    Sieber-Gasser C (2015) Democratic legitimation of trade policy tomorrow: TTIP, democracy and market in the Swiss Constitution, Jusletter, 9 November 2015. See also Mavroidis PC (2013) Gone with the wind? the diminishing relevance of the WTO to preferential trade agreements. In: Kleimann D (ed) EU preferential trade agreements: commerce, foreign policy and development aspects. European University Institute, Florence, pp 19–24.

  39. 39.

    For details, see Diggelmann O (2014) Muss das Freihandelsabkommen der Schweiz mit der Volksrepublik China dem fakultativen Staatsvertragsreferendum unterstellt werden? Rechtsgutachten, http://www.ivr.uzh.ch/institutsmitglieder/diggelmann/gutachten/GA_FHA_China.pdf (last accessed 14 August 2015), pp. 52–58.

  40. 40.

    Consolidated CETA Text, available: http://trade.ec.europa.eu/doclib/docs/2014/september/tradoc_152806.pdf.

  41. 41.

    Directives for the negotiation on the Transatlantic Trade and Investment Partnership between the European Union and the United States of America, Declassification, ST 11103/13, DCL 1, October 9 2014, Brussels, http://data.consilium.europa.eu/doc/document/ST-11103-2013-DCL-1/en/pdf (last accessed 31 August 2015).

  42. 42.

    Claude IL (1964) Swords into plowshares: the problems and progress of international organisation, 3rd edn. Random House, New York, p. 8.

  43. 43.

    Switzerland is currently debating over an institutional framework agreement, which would allow that the static Bilateral Treaties with the EU could dynamically adapt to the evolution of relevant EU law. The debate is highly controversial, specifically also because of concerns over the remaining scope of democratic rights of Swiss citizens. See also Institutional Issues. Directorate for European Affairs, May 2015, Swiss Confederation, Bern.

  44. 44.

    Optional referendum not only applies to international treaties, but also to federal acts: Art. 141:1(a) of the Swiss federal constitution (BV, SR 101).

  45. 45.

    See Art. 60 of the Vienna Convention on the Law of Treaties (VCLT).

  46. 46.

    See also Sieber-Gasser C (2015) Democratic legitimation of trade policy tomorrow: TTIP, democracy and market in the Swiss Constitution, Jusletter, 9 November 2015.

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Authors and Affiliations

  1. Graduate Institute for International and Development Studies, Geneva, Switzerland

    Charlotte Sieber-Gasser

  2. NCCR Trade Regulation, World Trade Institute, Hallerstrasse 6, 3012, Bern, Switzerland

    Charlotte Sieber-Gasser

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  1. Charlotte Sieber-Gasser
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Correspondence to Charlotte Sieber-Gasser .

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Editors and Affiliations

  1. Chair for Public Law, International and European Law, Saarland University, Saarbrücken, Germany

    Marc Bungenberg

  2. Faculty of Law, University of Passau , Passau, Germany

    Christoph Herrmann

  3. Chair for Public Law and International Law, University of Erlangen-Nürnberg Faculty of Law, Erlangen, Germany

    Markus Krajewski

  4. Competition and Regulation Institute, Leuphana University of Lüneburg, Lüneburg, Germany

    Jörg Philipp Terhechte

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Sieber-Gasser, C. (2016). TTIP and Swiss Democracy. In: Bungenberg, M., Herrmann, C., Krajewski, M., Terhechte, J. (eds) European Yearbook of International Economic Law 2016. European Yearbook of International Economic Law, vol 7. Springer, Cham. https://doi.org/10.1007/978-3-319-29215-1_25

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