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Two EU diplomats told the Financial Times that the commission set out a new approach this month to trade relations with Switzerland. It would set up a three-person arbitration panel to resolve disputes on condition that issues relating to EU law were referred to the ECJ. That would give the EU’s highest court the final say in interpreting large parts of the trade partnership.
The EU initiative seeks to resolve a deadlock with Switzerland over efforts to agree a new “institutional framework” for the two economies’ trading relationship, which is governed by over 100 bilateral accords. The EU has long been irritated by the lack of enforcement mechanisms to ensure that Switzerland, a non-member, abides by parts of EU law that are replicated in the bilateral agreements.
The commission’s initiative — which has not yet been accepted by the Swiss — is also being watched by London. Switzerland, like the UK, is resistant to any deal that would give ECJ judges broad powers to settle disputes.
While Brussels has long sought to convince Bern to sign up to arrangements that give the ECJ a bigger say in policing agreements between the two sides, its latest proposal shows its willingness to turn to creative solutions to entrench the role of the Luxembourg-based court.
The proposal’s emphasis on a two-tier system, in which the first port of call is an arbitration panel rather than the ECJ itself, could serve as a template for Brexit. Senior Brexit negotiators see the complicated current arrangements with the Swiss as the kind of outcome they are determined to avoid with Britain. [...]
Full article on Financial Times (subscription required)