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Trade Policy Review of Switzerland and Liechtenstein
December 15th and 17th, 2008 Statement by the Republic of Korea
Thank you, Mr. Chairman,
I would like to extend a warm welcome to the delegation of Switzerland and Liechtenstein for their third joint trade policy review. I would also like to thank _____________ for his informative presentation. Let me also express my appreciations to Mr. Faizel Ismail for his valuable contribution as the Discussant, and to the Secretariat for its usual comprehensive report.
Mr. Chairman, Korea is pleased to participate in the third joint TPR of Switzerland and Liechtenstein.
My country has always enjoyed excellent bilateral relations with Switzerland and Liechtenstein. Recently, this relationship was further strengthened by the conclusion of the Free Trade Agreement in 2005 under the umbrella of the Korea-EFTA FTA. Since September of 2006 when the Korea-EFTA FTA was put into effect, bilateral trade with Switzerland and Liechtenstein have grown briskly, and this year we are poised to reach the 3 billion US dollar level. Korea is pleased with the results thus far, and looks forward to further strengthening of our longstanding friendship.
In reviewing the circulated Reports, we note the remarkable achievement of Switzerland and Liechtenstein during the past four years.
Both countries achieved solid growth of over 2% on average, and despite a surge in energy and commodity prices, both have successfully curtailed inflationary pressures.
Furthermore, both countries have kept their government finances in check, registering budget surpluses. Concurrently, in the manufacturing sectors where both countries enjoy specialization in high-technology and knowledge-based production, both have successfully built upon their comparative advantages, as evidenced by a remarkable 45% growth rate in exports during the review period.
Mr. Chairman, in reviewing the investment regimes of Switzerland and Liechtenstein, in particular the regime for the services industry, we note that in general terms it is open to foreign participation. However, it is also noted that the participation of state owned enterprises in the services sector is still quite prevalent.
In light of the efficiency gains and benefits that could accrue to consumers through the liberalization efforts, my delegation would like to inquire to both Switzerland and Liechtenstein whether plans for further liberalization of the services sector is in the pipe-lines.
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With respect to professional services, my delegation notes that both Switzerland and Liechtenstein have established intricate regulations on mutual recognition of education, experience and licenses, within the framework of the “Agreement on Free movement of persons” with the EC for Switzerland, and the EEA for Liechtenstein.
While my delegation is greatly impressed with the system in place, at the same time it notes that due to this system, professionals from non-EC countries are now provided with differentiated treatment when attempting to access the Swiss and Liechtenstein’s professional services market.
In light of this circumstance, my delegation would be interested to know whether there are plans within Switzerland and Liechtenstein to provide better access opportunities to non-EC professionals.
Advanced written questions addressing these and other issues were submitted to the delegation of Switzerland. I would like to express my thanks for the answers which have been provided today. We will examine the answers with great interest, and refer back at the next meeting with follow-up questions if necessary.
In closing, Mr. Chairman, please allow me to express my appreciations to Switzerland and Liechtenstein for their pro-active role in the current DDA negotiations; their active participation has enabled us to progress forward on a number of issues. Most recently, through Ambassador Wasescha’s chairmanship of the NAMA negotiations group.
Korea and Switzerland and Liechtenstein share similar views and common interest in a variety of areas, most notably in Agriculture, and Korea looks forward to continued cooperation in these and other areas in the future.
Thank you, Mr. Chairman.
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