Source: Dispatch of the Federal Council on Bilateral III, pp. 74--87 and 120--143
PDF of the dispatch
The institutional elements form the centrepiece of Bilateral III. They are intended to modernise the five existing single market agreements and make them fit for the future. The chosen sectoral approach -- as opposed to a horizontal framework agreement -- embeds the institutional provisions directly in the individual agreements. This preserves the proven bilateral structure and avoids a superordinate framework.
The institutional elements are integrated in the form of Institutional Protocols (IP) into the following existing agreements:
| No. | Agreement | Abbreviation | In force since |
|---|---|---|---|
| 1 | Agreement on the Free Movement of Persons | AFMP | 2002 |
| 2 | Agreement on Land Transport | ALT | 2002 |
| 3 | Agreement on Air Transport | AAT | 2002 |
| 4 | Agreement on Mutual Recognition of Conformity Assessments | MRA | 2002 |
| 5 | Agreement on Trade in Agricultural Products | Agriculture | 2002 |
The new health agreement contains analogous -- but not identical -- institutional provisions.
The Federal Council deliberately chose not to conclude a horizontal framework agreement (like the failed Institutional Agreement (InstA) of 2021). The sectoral approach offers the following advantages:
The institutional protocols cover seven thematic areas:
Reaffirmation of the foundations of bilateral cooperation and the objectives of the institutional elements.
Obligation to adopt relevant EU legal developments in a timely manner, combined with participation rights in lawmaking (→ Decision Shaping and participation).
Uniform interpretation, two-pillar model for monitoring (→ Interpretation, application and monitoring).
Parity arbitration panel with limited role of the CJEU (→ Dispute settlement and arbitration panel).
Participation in EU agencies and activities (→ Financial contribution).
Entry into force, termination, transitional provisions.
Joint Committees (JC), scope of application, rights and obligations of the contracting parties.
| Principle | Meaning |
|---|---|
| No automatism | Each adoption of law requires an individual decision by Switzerland |
| No super-guillotine | Existing and future agreements are not linked |
| Two-pillar monitoring | Switzerland and the EU each monitor independently on their own territory |
| Parity arbitration panel | Balanced composition, CJEU only for EU law questions |
| Full right of referendum | Art. 136 para. 2 Federal Constitution is fully preserved |
| Sectoral rather than horizontal | Institutional provisions anchored individually in each agreement |
The institutional elements were received predominantly positively in the consultation. Main demands:
The Federal Council responded to these demands with concrete accompanying measures: