Liechtenstein secures trade relations with the UK
The trade relationship between Liechtenstein and the United Kingdom will remain almost unaffected by Brexit. This is being guaranteed by a corresponding deal between the two countries. It was signed by Liechtenstein’s Minister of Foreign Affairs Aurelia Frick and the UK’s Secretary of State for International Trade Liam Fox on Monday.
“The economic relationship between Liechtenstein and the EU – and therefore between Liechtenstein and the UK – is currently regulated by the Free Trade Agreement between Switzerland and the EU of 22 July 1972,” the Liechtensteinische Landesverwaltung reported in a press release. The Swiss-Liechtenstein customs union means that the deal contains an additional agreement for Liechtenstein. There is also a similar additional agreement for the agricultural deal between Switzerland and the EU.
With Brexit, both agreements will no longer apply for the UK. A bilateral trade agreement signed on Monday in Bern by Swiss Federal Councillor Guy Parmelin and the UK Secretary of State for International Trade Liam Fox will assure the continuation of economic and trade relations between the two nations. Essentially, this deal largely replicates the content of the existing trade agreement between Switzerland and the EU as well as comprising an additional agreement that extends the provisions of the free trade and agricultural agreement to Liechtenstein. These were signed by Liechtenstein’s Minister of Foreign Affairs Aurelia Frick on Monday.
“The agreement will enter into force after the end of the transition period in the event of an orderly withdrawal from the EU or on 30 April 2019 if the UK leaves the EU without a deal,” the press release explains. Speaking after the agreement was signed, Aurelia Frick and Liam Fox said the trade deal was an important first step in securing the future relationship between their two countries. This partnership should nonetheless be “cemented through other agreements as quickly as possible,” the press release concludes.