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Bilateral Agreements III and companies: key points
- On 2 March 2026, Swiss President Guy Parmelin and European Commission President Ursula von der Leyen signed the Bilateral Agreements III package in Brussels; the Federal Council submitted its dispatch to Parliament on 13 March 2026.
- Parliament can accept or reject the treaty package only as a whole; it is finalised and cannot be renegotiated. There is, however, room for manoeuvre in domestic implementation.
- A total of 36 Swiss laws must be amended and three new acts adopted. A referendum is considered practically certain, but it remains open whether a majority of the cantons will also be required.
- A central issue for companies is that certain new market-access agreements, including the electricity agreement, will for the first time be subject to EU state-aid law, monitored by an independent Swiss authority and accompanied by a new dispute-resolution mechanism with an arbitral tribunal.
- Parliamentary deliberations are expected to conclude no earlier than autumn 2027. Companies operating cross-border should monitor developments now rather than waiting until shortly before entry into force.
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What is the Bilateral Agreements III package and how did it come about?
Bilateral Agreements III is the third major package of treaties between Switzerland and the EU, following Bilateral Agreements I and II. It follows the failure of the institutional framework agreement in 2021. Negotiations based on a package approach began in March 2024, were completed in substance in December 2024 and formally concluded with initialling in May 2025. The package centres on modernising five existing internal-market agreements from 1999 and introducing two new agreements, including those on electricity and on food and health security. Its purpose is to secure the established bilateral path for the future and make Switzerland’s sectoral participation in the EU internal market more permanent.
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What happens next in Parliament, and what can Parliament still change?
The treaty package itself was finalised with its signature on 2 March 2026. Parliament can accept or reject it only as a whole; it cannot remove individual components or renegotiate them. There is, however, room for manoeuvre in domestic implementation: 36 statutory amendments are required, including 15 substantive and 21 relatively minor amendments, together with three new acts and four commitment credits. The Council of States considers the package first, followed by the National Council. The Foreign Affairs Committees take the lead, supplemented by other specialist committees depending on the subject matter.
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Is a majority of the cantons required, and why is this disputed?
One of the most politically controversial questions is which form of popular vote would apply in a referendum, in particular whether a majority of the cantons would be required in addition to a popular majority. A survey conducted in February 2026 shows divided views: 54% of respondents consider it more unfair if a majority of the cantons overrides the popular majority, while 32% take the opposite view. Parliament will make the final decision on the applicable form of vote during the ongoing deliberations.
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How will dispute resolution with the EU work in future?
A central institutional element is a new two-stage dispute-resolution model. Swiss law remains a matter for Swiss courts, while EU law referenced by the bilateral agreements is interpreted in line with the case law of the Court of Justice of the European Union. Disputes are first considered by the relevant sectoral joint committee. If they remain unresolved, an arbitral tribunal representing both sides decides as the final instance. It may refer questions of EU-law interpretation to the Court of Justice, but the final decision remains with the arbitral tribunal itself. Compensatory measures for non-compliance are permissible only if the tribunal has confirmed that they are proportionate.
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What does the new state-aid control mean for Swiss companies?
The new market-access agreements, particularly the electricity agreement, will be subject to EU state-aid discipline restricting government support for companies where it could distort competition in the common market. Switzerland will establish an independent administrative authority to review government measures preventively and challenge non-compliant aid before Swiss courts, which must issue binding decisions. For companies benefiting from cantonal or municipal subsidies, concessions or other state-related support, including in the energy sector, this introduces a new layer of control that must be considered when such projects are structured in future.
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Which new market-access agreements form part of the package?
In addition to updating the five existing internal-market agreements on the free movement of persons, overland transport, air transport, conformity assessment and trade in agricultural products, Bilateral Agreements III introduces two new agreements. An electricity agreement gives Switzerland access to the EU internal electricity market, combined with dynamic alignment of law and state-aid discipline. A food-safety agreement creates a common food-safety area with dynamic alignment to EU standards. A supplementary health agreement strengthens the joint response to cross-border health threats and enables Switzerland to participate in key EU bodies such as the European Centre for Disease Prevention and Control.
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When is the package expected to enter into force?
Parliamentary deliberations are to be completed by autumn 2027 at the latest, when the current legislative term ends. If, as expected, a referendum is held, voters will also decide, potentially with a majority of the cantons being required. One agreement has already entered into force separately: the agreement on Switzerland’s participation in EU programmes was signed on 10 November 2025 and enables Switzerland’s retroactive association with programmes such as Horizon Europe.
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What should companies do now?
Although the overall package is unlikely to enter into force before 2027 or later, export-oriented and cross-border companies should address three points early. First, which parts of their business would be directly affected by the new market-access agreements, particularly electricity and food safety. Second, whether existing or planned government support, such as cantonal funding programmes, will have to withstand a state-aid review. Third, how the political process, including parliamentary deliberations, a possible referendum and the question of a majority of the cantons, affects their own planning certainty.
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Referendum update: position as at 12 August 2026
The Federal Council continues to consider an optional referendum on international treaties appropriate and rejects the proposed constitutional amendment for a mandatory referendum. Parliamentary consideration is therefore not complete. Companies should clearly distinguish political statements from the treaty package already signed and the implementing legislation still to be adopted.
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Frequently asked questions
Can Parliament reject individual parts of the Bilateral Agreements III package? No. The package is fixed as a whole and can only be accepted or rejected in full. There is room for manoeuvre only in domestic implementing legislation.
Will EU state-aid law apply to all sectors in Switzerland? No. The state-aid discipline applies specifically to areas covered by the new or updated market-access agreements, such as electricity, and not across all sectors of the Swiss economy.
When will a definitive decision be made on a referendum and any required majority of the cantons? Parliament will make the final decision during its ongoing deliberations, which are to be completed by autumn 2027 at the latest.
Has any part of Bilateral Agreements III already entered into force? Yes, in part. The agreement on Swiss participation in EU programmes was signed on 10 November 2025 and enables retroactive association with programmes such as Horizon Europe, irrespective of the fate of the rest of the package.
What happens if Switzerland does not adopt an amendment to EU law? Under the new model, the relevant sectoral joint committee considers the issue first. If the parties disagree, an arbitral tribunal representing both sides decides as the final instance. Compensatory measures by the EU are permissible only if the tribunal confirms that they are proportionate.
Primary sources