The start of the Labour government under Keir Starmer has been marked by domestic challenges, notably surrounding personal perks for him and his wife.

However, on the foreign policy front, recent weeks have been dominated by efforts to improve relations with the European Union. Starmer has visited Berlin, and Paris, and recently met with European Commission President Ursula von der Leyen in early October in Brussels, seeking adjustments to existing trade and cooperation agreements with the EU.

«Reset Brexit»

Stramer's «Reset Brexit» promise, which was a central campaign pledge, aims to reinvigorate the country’s struggling economy without rejoining the EU.

The UK and Switzerland agree that the Free Trade Agreement (FTA) between the two countries needs to be updated. On Monday, Swiss representatives will meet for the first time with officials from the new Secretary of State for Business and Trade, Jonathan Reynolds, in London. These negotiations had originally begun under the previous Conservative government in early 2023.

Services - Data - Labor

The key topics in these discussions will likely include better access to financial services markets. British negotiators are also expected to push for the reduction of trade barriers, according to sources cited by «Bloomberg».

Topics such as data traffic will also be on the agenda, with the goal of eliminating obstacles related to location decisions and providing legal clarity for investments in data centers. Labor market issues and questions around freedom of movement will likely also feature. Swiss banks have a strong presence in London, and many British financial institutions are active in Switzerland. Agreements on visa and work permit rules could simplify the deployment of employees between the two countries.

No concrete outcomes are expected from this initial meeting.

Key Trading Partners

Switzerland is the UK’s tenth-largest trading partner, with a trade volume of £51 billion, and the seventh-largest export market. According to Swiss trade statistics, the volume of goods exchanged with the UK in 2022 amounted to 20 billion Swiss francs, with services trade accounting for around 24 billion francs.

An updated agreement with Switzerland is expected to help stimulate economic growth, jobs, and prosperity across the UK, according to a statement from Reynolds.

FTA Talks with Other Countries

Minister Reynolds has emphasized that «Global Britain» strategy, involving bilateral free trade agreements, remains a priority. He plans to continue FTA talks with other regions such as the Gulf Cooperation Council, India, Israel, South Korea, and Turkey.

In December 2023, Switzerland and the UK signed the «Berne Financial Services Agreement,» which focuses on mutual recognition in the finance sector.