kom (2025) 0308 - Ingen titel

Europaudvalget 2025
KOM (2025) 0308
Offentligt

EUROPEAN

COMMISSION

Brussels, 13.6.2025

COM(2025) 308 final

ANNEX 7

ANNEX

to the

Proposal for a Council Decision

on the signing, on behalf of the European Union, of a broad package of agreements to

consolidate, deepen and expand the bilateral relations with the Swiss Confederation, and

on the provisional application of the Agreement on the terms and conditions for the

participation of the Swiss Confederation in the European Union Agency for the Space

Programme

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AGREEMENT

BETWEEN THE EUROPEAN UNION

AND THE SWISS CONFEDERATION

ON HEALTH

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THE EUROPEAN UNION, hereinafter referred to as the "Union",

and

THE SWISS CONFEDERATION, hereinafter referred to as "Switzerland"

hereinafter referred to as the "Contracting Parties";

DESIRING to foster collaboration for the benefit of the health of the populations of the Contracting

Parties, in particular to prepare for and respond to serious cross-border threats to health;

CONSIDERING that the threats to health do not stop at national borders that several Member States

of the Union share with Switzerland and that an important number of persons cross the common

borders every day, and therefore that a better exchange of expertise in the area of serious cross-

border threats to health will be of common interest;

RESOLVED to respond in the most effective manner to the serious cross-border threats to health,

including by exchanging information through common systems and mutual capacities of

epidemiological surveillance;

CONSIDERING that the participation of Switzerland in Union bodies, agencies and structures for

the prevention and control of diseases as well as the surveillance and alert networks and the

application of similar preparedness and response mechanisms for prevention and control of serious

cross-border threats to health will improve the level of health protection for the populations of the

Contracting Parties;

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RECOGNISING that a bilateral agreement between the Contracting Parties on health should

provide a clear and strong legal foundation for cooperation in the area of health security;

CONSIDERING that the Union has established mechanisms and structures for coordination of

prevention, preparedness and response in the area of serious cross-border threats to health, and that

the participation of Switzerland in those mechanisms and structures could be of mutual benefit to

both Contracting Parties;

RECOGNISING that it is mutually beneficial to foster the exchange of professional expertise

between the Contracting Parties, including through secondments;

CONSIDERING that a legal basis has been established for the participation of Switzerland in Union

Programmes, including the EU4Health Programme; and RECOGNISING the importance of

promoting cooperation between the Contracting Parties on health-related matters covered by this

Agreement and by the Agreement between the European Union and the European Atomic Energy

Community, of the one part, and the Swiss Confederation, of the other part, on the participation of

the Swiss Confederation in Union programmes;

SHARING the general objectives of the EU4Health Programme, CONSIDERING the common

goals, values and strong links of the Contracting Parties in the field of health;

RECOGNISING the common desire of the Contracting Parties to develop, strengthen, stimulate and

extend their relations and cooperation therein;

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CONSIDERING that closer cooperation in the field of serious cross-border threats to health and

Switzerland's participation in the European Centre for Disease Prevention and Control

(the "Centre") will increase the level of health protection for the populations of the Contracting

Parties and that the participation of Switzerland in the Centre should involve a financial

contribution that needs to be established for every programming period;

PREPARED to explore the possibility of broadening their cooperation to cover other health related

matters in the future;

RESOLVED to strengthen cooperation between the Contracting Parties in the areas governed by

this Agreement on the basis of the same rules as those that apply in the Union, while preserving

their independence and that of their institutions and, as regards Switzerland, respect for the

principles stemming from direct democracy and federalism;

RECOGNISING that this Agreement does not constitute an agreement in the fields related to the

internal market of the Union in which Switzerland participates;

CONSIDERING that it is nevertheless appropriate to apply by analogy to this Agreement the

particular principles for institutional provisions which are common to the agreements concluded or

to be concluded in the fields related to the internal market in which Switzerland participates;

REAFFIRMING that the competence of the Swiss Federal Supreme Court and all other Swiss

courts as well as that of the Member States' courts and of the Court of Justice of the European

Union to interpret this Agreement in individual cases is preserved;

HAVE AGREED AS FOLLOWS:

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CHAPTER 1

GENERAL PROVISIONS

ARTICLE 1

Purpose

The purpose of this Agreement is to strengthen the cooperation between the Contracting Parties in

order to:

(a)

protect and improve the health of the populations of the Member States of the Union and Switzerland;

(b)

fight against the major health scourges, by promoting research into their causes, their transmission and

their prevention, as well as by promoting health information and health literacy;

(c)

ensure a consistently high level of surveillance of serious cross-border threats to health in the

territories of the Contracting Parties, as well as coordinate their alert systems and responses to such

threats.

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ARTICLE 2

Scope

The Contracting Parties shall strengthen and broaden cooperation in the field of health security. The

scope of this cooperation shall be limited to the following areas:

–

the health security mechanisms on serious cross-border threats to health;

the European Centre for Disease Prevention and Control (hereinafter referred as "the Centre").

ARTICLE 3

Cooperation

The Contracting Parties shall cooperate, exchange information and coordinate their policies on

serious cross-border threats to health through the mechanisms and structures laid down in the legal

acts of the Union mentioned in Annex I, in particular the Union's surveillance and alert networks

and preparedness and response mechanisms for the prevention and control of communicable

diseases. The Contracting Parties shall strengthen their overall cooperation in the area of health

security, including epidemiological surveillance, in order to enhance emergency preparedness and

response.

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CHAPTER 2

INSTITUTIONAL PROVISIONS

ARTICLE 4

General Content

In order to guarantee legal certainty for the Contracting Parties as regards the cooperation set out in

this Agreement, and taking into account the principles of international law, this chapter lays down

the institutional solutions which are analogous to those common to the bilateral agreements

concluded or to be concluded in the fields related to the internal market in which Switzerland

participates, without changing the scope of this Agreement, notably:

(a)

the procedure for aligning this Agreement with legal acts of the Union relevant to this

Agreement;

(b)

the uniform interpretation and application of this Agreement and of the legal acts of the Union

to which reference is made in Annex I;

(c)

the surveillance and application of this Agreement; and

(d)

the settlement of disputes in the context of this Agreement.

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ARTICLE 5

Participation in the drafting of legal acts of the Union ("decision-shaping")

When drafting a proposal for a legal act of the Union in accordance with the Treaty on the

Functioning of the European Union (hereinafter referred to as "TFEU") in the field covered by this

Agreement, the European Commission (hereinafter referred to as the "Commission") shall inform

Switzerland thereof and shall informally consult Switzerland's experts in the same way that it asks

for the views of experts from the Member States of the Union for the drafting of its proposals.

At the request of either Contracting Party, a preliminary exchange of views shall take place within

the Joint Committee.

The Contracting Parties shall consult each other again, at the request of either of them, within the

Joint Committee at important moments of the phase preceding the adoption of the legal act by the

Union, in a continuous process of information and consultation.

When preparing, in accordance with the TFEU, delegated acts concerning basic acts of Union

law in the field covered by this Agreement, the Commission shall ensure that Switzerland has the

widest possible participation in the preparation of the drafts and shall consult Switzerland's experts

on the same basis as it consults the experts of the Member States of the Union.

When preparing, in accordance with the TFEU, implementing acts concerning basic acts of

Union law in the field covered by this Agreement, the Commission shall ensure that Switzerland

has the widest possible participation in the preparation of the drafts to be submitted later on to the

committees assisting the Commission in the exercise of its implementing powers and shall consult

Switzerland's experts on the same basis as it consults the experts from the Member States of the

Union.

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Switzerland's experts shall be involved in the work of committees not covered by

paragraphs 2 and 3 where this is required for the proper functioning of this Agreement. A list of

those committees and, where appropriate, of other committees with similar characteristics shall be

drawn up and updated by the Joint Committee.

This Article shall not apply with regard to legal acts of the Union or provisions thereof falling

within the scope of an exception referred to in Article 6(5).

ARTICLE 6

Integration of legal acts of the Union

In order to guarantee legal certainty and the homogeneity of the law as regards the

cooperation set out in this Agreement, Switzerland and the Union shall ensure that legal acts of the

Union adopted in the field covered by this Agreement are integrated into this Agreement as quickly

as possible after their adoption.

Legal acts of the Union integrated into this Agreement in accordance with paragraph 4 shall

be, by their integration into this Agreement, part of the legal order of Switzerland subject, as the

case may be, to the adaptations decided upon by the Joint Committee.

When it adopts a legal act in the field covered by this Agreement, the Union shall inform

Switzerland thereof as quickly as possible through the Joint Committee. At the request of either of

the Contracting Parties, the Joint Committee shall conduct an exchange of views on the subject.

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The Joint Committee shall act in accordance with paragraph 1 by adopting a decision as

quickly as possible to amend Annex I to this Agreement, including the necessary adaptations.

The obligation set out in paragraph 1 shall not apply to legal acts of the Union or provisions

thereof falling within the scope of an exception. This Agreement does not contain an exception.

Subject to Article 7, decisions of the Joint Committee pursuant to paragraph 4 shall enter into

force immediately, but under no circumstances before the date on which the corresponding legal act

of the Union becomes applicable in the Union.

The Contracting Parties shall cooperate in good faith throughout the procedure set out in this

Article in order to facilitate decision-making.

ARTICLE 7

Fulfilment of constitutional obligations by Switzerland

During the exchange of views referred to in Article 6(3), Switzerland shall inform the Union

whether a decision as referred to in Article 6(4) requires the fulfilment of constitutional obligations

by Switzerland in order to become binding.

Where the decision referred to in Article 6(4) requires Switzerland to fulfil constitutional

obligations in order to become binding, Switzerland shall have a time limit of two years maximum

from the date of the information provided for in paragraph 1, except where a referendum procedure

is launched, in which case this period shall be extended by one year.

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Pending the information by Switzerland that it has fulfilled its constitutional obligations, the

Contracting Parties shall provisionally apply the decision referred to in Article 6(4), unless

Switzerland informs the Union that the provisional application of the decision is not possible and

provides the reasons for this. Under no circumstances can the provisional application occur before

the date on which the corresponding legal act of the Union becomes applicable in the Union.

Switzerland shall notify the Union without delay through the Joint Committee once it has

fulfilled the constitutional obligations referred to in paragraph 1.

The decision shall enter into force on the day on which the notification provided for in

paragraph 4 is delivered, but under no circumstances before the date on which the corresponding

legal act of the Union becomes applicable in the Union.

ARTICLE 8

References to territories

Whenever the legal acts of the Union integrated into this Agreement contain references to the

territory of the "European Union" or of the "Union", the references shall for the purposes of this

Agreement be understood to be references to the territories referred to in Article 20.

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ARTICLE 9

References to nationals of Member States of the Union

Whenever the legal acts of the Union integrated into this Agreement contain references to nationals

of Member States of the Union, the references shall for the purposes of this Agreement be

understood to be references to nationals of the Member States of the Union and of Switzerland.

ARTICLE 10

Entry into force and implementation of the legal acts of the Union

Provisions of the legal acts of the Union integrated into this Agreement on their entry into force or

implementation are not relevant for the purposes of this Agreement.

The time limits and dates for Switzerland for bringing into force and implementing the decisions

integrating legal acts of the Union into this Agreement follow from Article 6(6) and Article 7(5), as

well as from provisions on transitional arrangements.

ARTICLE 11

Addressees of the legal acts of the Union

Provisions of the legal acts of the Union integrated into this Agreement indicating that they are

addressed to the Member States of the Union are not relevant for the purposes of this Agreement.

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ARTICLE 12

Uniform interpretation principle

For the purpose of achieving the objective set out in Article 4 and in accordance with the

principles of public international law, this Agreement and the legal acts of the Union to which

reference is made therein shall be uniformly interpreted and applied in the areas covered by this

Agreement.

The legal acts of the Union to which reference is made in Annex I and, to the extent that their

application involves concepts of Union law, the provisions of this Agreement shall be interpreted

and applied in accordance with the case law of the Court of Justice of the European Union, prior or

subsequent to the signature of this Agreement.

ARTICLE 13

Effective and harmonious application principle

The Commission and the competent Swiss authorities shall cooperate and assist each other in

ensuring the surveillance of the application of this Agreement. They may exchange information on

the activities of surveillance of the application of this Agreement. They may exchange views and

discuss issues of mutual interest.

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Each Contracting Party shall take appropriate measures to ensure the effective and

harmonious application of this Agreement on its territory.

The surveillance of the application of this Agreement shall be carried out jointly by the

Contracting Parties within the Joint Committee. If the Commission or the competent Swiss

authorities become aware of a case of incorrect application, the matter may be referred to the Joint

Committee with a view to finding an acceptable solution.

The Commission and the competent Swiss authorities respectively shall monitor the

application of this Agreement by the other Contracting Party. The procedure provided for in

Article 15 applies.

ARTICLE 14

Exclusivity principle

The Contracting Parties undertake not to submit a dispute regarding the interpretation or application

of this Agreement and of the legal acts of the Union to which reference is made in Annex I or,

where applicable, regarding the conformity with this Agreement of a decision adopted by the

Commission on the basis of this Agreement to any method of settlement other than those provided

for in this Agreement.

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ARTICLE 15

Procedure in the event of difficulty of interpretation or application

In the event of difficulty of interpretation or application of this Agreement or of a legal act of

the Union to which reference is made in Annex I, the Contracting Parties shall consult each other

within the Joint Committee in order to find a mutually acceptable solution. To this end, all useful

elements of information shall be provided to the Joint Committee to enable it to make a detailed

examination of the situation. The Joint Committee shall examine all possibilities that allow the

proper functioning of this Agreement to be maintained.

If the Joint Committee is not able to find a solution to the difficulty referred to in paragraph 1

within three months of the date on which the difficulty was submitted to it, either of the Contracting

Parties may request that an arbitral tribunal settle the dispute in accordance with the rules laid down

in the Protocol on the arbitral tribunal.

Where the dispute raises a question concerning the interpretation or application of a provision

referred to in Article 12(2), and if the interpretation of that provision is relevant to the settlement of

the dispute and necessary to enable it to decide, the arbitral tribunal shall refer that question to the

Court of Justice of the European Union.

Where the dispute raises a question concerning the interpretation or application of a provision that

falls within the scope of an exception from the dynamic alignment obligation referred to in

Article 6(5) and where the dispute does not involve the interpretation or application of concepts of

Union law, the arbitral tribunal shall settle the dispute without referral to the Court of Justice of the

European Union.

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Where the arbitral tribunal refers a question to the Court of Justice of the European Union

pursuant to paragraph 3:

(a)

the ruling of the Court of Justice of the European Union shall be binding on the arbitral

tribunal; and

(b)

Switzerland shall enjoy the same rights as the Member States and the institutions of the Union

and shall be subject to the same procedures before the Court of Justice of the European Union,

mutatis mutandis.

Each Contracting Party shall take all measures necessary to comply in good faith with the

arbitral tribunal's decision. The Contracting Party that has been found by the arbitral tribunal not to

have complied with this Agreement shall inform the other Contracting Party through the Joint

Committee of the measures it has taken to comply with the arbitral tribunal's decision.

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ARTICLE 16

Compensatory measures

If the Contracting Party that has been found by the arbitral tribunal not to have complied with

this Agreement does not inform the other Contracting Party, within a reasonable time period set in

accordance with Article IV.2(6) of the Protocol on the arbitral tribunal, of the measures it has taken

to comply with the arbitral tribunal's decision or if the other Contracting Party considers that the

measures communicated do not comply with the arbitral tribunal's decision, this other Contracting

Party may adopt proportionate compensatory measures, in order to remedy a potential imbalance.

Compensatory measures may only be adopted within the framework of this Agreement or in

accordance with Articles 19(1)(c) and 20(4) of the Agreement between the European Union and the

European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other

part, on the participation of the Swiss Confederation in Union programmes, done at … on …,

hereinafter the "Agreement on Switzerland's participation in Union Programmes", as regards

Switzerland's participation in the Programme for the Union's action in the field of health

. The

Contracting Party adopting compensatory measures shall notify the Contracting Party that has been

found by the arbitral tribunal not to have complied with this Agreement of the compensatory

measures, which shall be specified in the notification. Those compensatory measures shall take

effect three months from the date of this notification.

For the period 2021-2027, this is the EU4Health Programme as established by

Regulation (EU) 2021/522 of the European Parliament and of the Council of 24 March 2021

establishing a Programme for the Union's action in the field of health ('EU4Health

Programme') for the period 2021-2027, and repealing Regulation (EU) No 282/2014

(OJ L 107, 26.3.2021, p. 1).

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If within one month from the date of the notification of the intended compensatory measures,

the Joint Committee has not taken a decision to suspend, amend or annul those compensatory

measures, either Contracting Party may submit to arbitration the question of the proportionality of

those compensatory measures, in accordance with the Protocol on the arbitral tribunal.

The arbitral tribunal shall decide within the time limits laid down in Article III.8(4) of the

Protocol on the arbitral tribunal.

Compensatory measures shall not have retroactive effect. In particular, the rights and

obligations already acquired by individuals and economic operators before the compensatory

measures take effect shall be preserved.

ARTICLE 17

Cooperation between jurisdictions

To promote the homogeneous interpretation, the Swiss Federal Supreme Court and the Court

of Justice of the European Union shall agree on a dialogue and the modalities thereof.

Switzerland shall have the right to lodge statements of case or written observations with the

Court of Justice of the European Union where a court of a Member State of the Union refers to the

Court of Justice of the European Union a question concerning the interpretation of this Agreement

or of a provision of a legal act of the Union referred to in Annex I for a preliminary ruling.

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ARTICLE 18

Implementation

The Contracting Parties shall take all appropriate measures, whether general or particular, to

ensure the fulfilment of the obligations arising from this Agreement and shall refrain from taking

any measure which could jeopardise the achievement of its purpose.

The Contracting Parties shall take all measures necessary to guarantee the intended result of

the legal acts of the Union to which reference is made in Annex I and shall refrain from taking any

measure that could jeopardise the achievement of their aims.

ARTICLE 19

Joint Committee

A Joint Committee is hereby established.

The Joint Committee shall be composed of representatives of the Contracting Parties.

The Joint Committee shall be co-chaired by a representative of the European Union and a

representative of Switzerland.

The Joint Committee:

(a)

shall ensure the proper functioning and the effective administration and application of this

Agreement;

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(b)

may exchange information and consult on questions related to this Agreement and its related

financial aspects;

(c)

shall provide a forum for mutual consultation and a continuous exchange of information

between the Contracting Parties, in particular with a view to finding a solution to any

difficulty of interpretation or application of this Agreement or of a legal act of the Union to

which reference is made in Annex I in accordance with Article 15;

(d)

shall ensure, in cooperation with the Joint Committee established by the Agreement on

Switzerland's participation in Union Programmes ("the Joint Committee on participation in

Union Programmes"), the proper functioning and the effective implementation of

Switzerland's participation in the programme for the Union's action in the field of health, only

for matters covered by this Agreement; to that end the Joint Committee shall inform the Joint

Committee on participation in Union programmes when:

(i)

a new Protocol to the Agreement on Switzerland's participation in Union Programmes

on the Programme for the Union's action in the field of Health needs to be adopted;

(ii)

the Protocol needs to be amended due to changes in the scope of this Agreement;

(iii) the agenda of its meetings include matters related to this Programme;

(e)

shall make recommendations to the Contracting Parties in matters pertaining to this

Agreement;

(f)

shall adopt decisions where provided for in this Agreement;

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(g)

in the event of an amendment to Articles 1 to 6, 10 to 15, or 17 or 18 of Protocol No 7 on the

privileges and immunities of the European Union (hereinafter referred to as

"Protocol (No 7)"), annexed to the Treaty on the Functioning of the European Union, the Joint

Committee shall amend the Appendix accordingly; and

(h)

shall exercise any other competence granted to it in this Agreement.

The Joint Committee shall act by consensus.

Decisions shall be binding on the Contracting Parties, which shall take all necessary measures to

implement them.

The Joint Committee shall meet at least once a year, in Brussels and Bern alternately, unless

the co-chairs decide otherwise. It shall also meet at the request of either Contracting Party. The

co-chairs may agree that a meeting of the Joint Committee be held by videoconference or

teleconference.

The Joint Committee shall adopt its rules of procedure at its first meeting and update them as

necessary.

The Joint Committee may decide to set up any working party or group of experts that can

assist it in carrying out its duties.

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CHAPTER 3

FINAL PROVISIONS

ARTICLE 20

Territorial scope

This Agreement shall apply, of the one part, to the territory in which the Treaty on European Union

and the TFEU apply and under the conditions laid down in those Treaties, and, of the other part, to

the territory of Switzerland.

ARTICLE 21

Revision

The Contracting Parties shall regularly review the functioning of this Agreement within the

Joint Committee and may consider revising it, namely to improve their cooperation or to extend it

to other health related matters.

 In the light of such potential considerations, the Contracting Parties may enter into

negotiations, in accordance with their respective internal procedures, with a view to revising it.

The result of any negotiation shall be subject to ratification or approval by the Contracting

Parties in accordance with their respective internal procedures.

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ARTICLE 22

Professional secrecy

Representatives, experts and other agents of the Contracting Parties shall be required, even after

their duties have ceased, not to disclose information, obtained in the framework of this Agreement,

which is covered by the obligation of professional secrecy.

ARTICLE 23

Classified information and sensitive non-classified information

Nothing in this Agreement shall be construed as requiring a Contracting Party to make

available classified information.

Classified information or material provided by or exchanged between the Contracting Parties

under this Agreement shall be handled and protected in compliance with the Agreement between

the Swiss Confederation and the European Union on the security procedures for the exchange of

classified information, done at Brussels on 28 April 2008 and any security arrangement

implementing it.

The Joint Committee shall adopt, by means of a decision, handling instructions to ensure the

protection of sensitive non-classified information exchanged between the Contracting Parties.

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ARTICLE 24

Annexes, Appendices and Protocols

The Annexes, Appendices and Protocols to this Agreement shall form an integral part thereof.

ARTICLE 25

Financial contribution

Switzerland shall contribute to the financing of the activities of the Union agencies,

information systems and other activities listed in Article 1 of Annex II to which it has access, in

accordance with this Article and Annex II.

The Joint Committee may adopt a decision to amend Annex II.

The Union may suspend the participation of Switzerland in the activities referred to in

paragraph 1 of this Article at any time if Switzerland fails to meet the payment deadline in

accordance with the terms of payment set out in Article 2 of Annex II.

Where Switzerland fails to meet a payment deadline, the Union shall send Switzerland a formal

letter of reminder. Where no full payment is made within 30 days of the date of reception of that

formal letter of reminder, the Union may suspend the participation of Switzerland in the relevant

activity.

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The financial contribution shall take the form of the sum of:

(a)

an operational contribution; and

(b)

a participation fee.

The financial contribution shall take the form of an annual financial contribution and shall be

due at the dates specified in the calls for funds issued by the Commission.

The operational contribution shall be based on a contribution key defined as the ratio of the

gross domestic product (hereinafter referred to as "GDP") of Switzerland at market prices to the

GDP of the Union at market prices. For that purpose, the figures for GDP at market prices of the

Contracting Parties shall be the latest such figures available as of 1 January of the year in which the

annual payment is made as provided by the Statistical Office of the European Union (EUROSTAT),

with due regard to the Agreement between the European Community and the Swiss Confederation

on cooperation in the field of statistics, done at Luxembourg on 26 October 2004. If that agreement

ceases to apply, the GDP of Switzerland shall be the one established on the basis of data provided

by the Organisation for Economic Co-operation and Development.

The operational contribution for each Union agency shall be calculated by applying the

contribution key to its annual voted budget inscribed on the relevant Union budget subsidy line(s)

of the year in question, taking into account for each agency any adjusted operational contribution as

defined in Article 1 of Annex II. The operational contribution for the information systems and other

activities shall be calculated by applying the contribution key to the relevant budget of the year in

question as set out in documents implementing the budget (such as work programmes or contracts).

All reference amounts shall be based on commitment appropriations.

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The annual participation fee shall be 4 % of the annual operational contribution as calculated

in accordance with paragraphs 5 and 6.

The Commission shall provide Switzerland with adequate information in relation to the

calculation of its financial contribution. That information shall be provided having due regard to the

Union's confidentiality and data protection rules.

All financial contributions by Switzerland or payments from the Union, and the calculation of

amounts due or to be received shall be made in euro.

10.

Where the entry into force of this Agreement does not coincide with the beginning of a

calendar year, Switzerland's operational contribution for the year in question shall be subject to

adjustment, according to the methodology and terms of payment defined in Article 4 of Annex II.

11.

Detailed provisions for the application of this Article are set out in Annex II.

12.

Three years following the entry into force of this Agreement, and every three years

subsequently, the Joint Committee shall review the conditions of Switzerland's participation as

defined in Article 1 of Annex II and, where appropriate, adapt them.

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ARTICLE 26

Entry into force

This Agreement shall be ratified or approved by the Contracting Parties in accordance with

their own procedures. The Contracting Parties shall notify each other of the completion of the

internal procedures necessary for the entry into force of this Agreement.

This Agreement shall enter into force on the first day of the second month following the last

notification regarding the following instruments:

(a)

Institutional Protocol to the Agreement between the European Community and its Member

States, of the one part, and the Swiss Confederation, of the other, on the free movement of

persons;

(b)

Amending Protocol to the Agreement between the European Community and its Member

States, of the one part, and the Swiss Confederation, of the other, on the free movement of

persons;

(c)

Institutional Protocol to the Agreement between the European Community and the

Swiss Confederation on air transport;

(d)

Amending Protocol to the Agreement between the European Community and the

Swiss Confederation on air transport;

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(e)

State Aid Protocol to the Agreement between the European Community and the

Swiss Confederation on air transport;

(f)

Institutional Protocol to the Agreement between the European Community and the

Swiss Confederation on the carriage of goods and passengers by rail and road;

(g)

Amending Protocol to the Agreement between the European Community and the

Swiss Confederation on the carriage of goods and passengers by rail and road;

(h)

State Aid Protocol to the Agreement between the European Community and the

Swiss Confederation on the carriage of goods and passengers by rail and road;

(i)

Amending Protocol to the Agreement between the European Community and the

Swiss Confederation on trade in agricultural products;

(j)

Institutional Protocol to the Agreement between the European Community and the

Swiss Confederation on mutual recognition in relation to conformity assessment;

(k)

Amending Protocol to the Agreement between the European Community and the

Swiss Confederation on mutual recognition in relation to conformity assessment;

(l)

Agreement between the European Union and the Swiss Confederation on Switzerland's

regular financial contribution towards reducing economic and social disparities in the

European Union;

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(m) Agreement between the European Union and the European Atomic Energy Community, of the

one part, and the Swiss Confederation, of the other part, on the participation of the

Swiss Confederation in Union programmes;

(n)

Agreement between the European Union and the Swiss Confederation on the terms and

conditions for the participation of the Swiss Confederation in the European Union Agency for

the Space Programme.

ARTICLE 27

Termination

Party.

Each Contracting Party may terminate this Agreement by notifying the other Contracting

This Agreement shall cease to be in force 6 months after receipt of the notification referred to

in paragraph 1.

Where this Agreement ceases to be in force, the rights and obligations that individuals and

economic operators have already acquired by virtue of this Agreement before the date of the

cessation of this Agreement shall be preserved. The Contracting Parties shall settle by mutual

agreement what action is to be taken in respect of rights in the process of being acquired.

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Done at […], on […], in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English,

Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese,

Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each of these

texts being equally authentic.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Agreement.

(Signature Block, to the effect of, in all 24 EU languages: "For the European Union" and "For the

Swiss Confederation")

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ANNEX I

LEGAL ACTS OF THE UNION

INTEGRATED IN ACCORDANCE WITH

ARTICLE 6 OF THE AGREEMENT

Unless otherwise provided for in technical adaptations, rights and obligations provided for in the

legal acts of the Union integrated into this Annex for Member States of the Union shall be

understood to be provided for for Switzerland. This shall be applied in full respect for the

institutional provisions contained in Chapter 2 of the Agreement.

Serious Cross-Border Threats to Health

32022 R 2371 Regulation (EU) 2022/2371 of the European Parliament and of the Council of

23 November 2022 on serious cross-border threats to health and repealing

Decision No 1082/2013/EU (OJ EU L 314, 6.12.2022, p. 26,

ELI: http://data.europa.eu/eli/reg/2022/2371/oj).

The provisions of Regulation (EU) 2022/2371 shall, for the purposes of this Agreement, be

read with the following adaptations:

(a)

Switzerland shall participate fully in the Health Security Committee and shall have the

same rights and obligations within it as Member States of the Union, except for the right

to vote;

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(b)

Switzerland shall be a full rights user of the Early Warning and Response System

(EWRS) established by Regulation (EU) 2022/2371;

(c)

Switzerland will use the definition contained in Article 3(10) of

Regulation (EU) 2022/2371 only for the implementation of this Agreement;

(d)

the reports referred to in Article 7(1) of Regulation (EU) 2022/2371 shall be provided

by Switzerland at the same time as required from the Member States of the Union under

that Article, but in no case earlier than one year following the entry into force of this

Agreement. Switzerland transmits its report via the EWRS;

(e)

in Article 7(5) of Regulation (EU) 2022/2371, the words "as European Union classified

information" shall be deleted. The second sentence shall be understood, regarding

Switzerland, as "Those national security regulations shall offer a degree of protection of

classified information in accordance with the Agreement between the

Swiss Confederation and the European Union on the security procedures for the

exchange of classified information and its security arrangements";

(f)

for the purposes of this Agreement, participation in the joint procurement procedure

referred to in Article 12(3)(a) of Regulation (EU) 2022/2371 shall also be open to

Switzerland;

(g)

Article 12(4)(a), (b), (c), (e) and (f) of Regulation (EU) 2022/2371 shall not apply to

Switzerland;

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(h)

Switzerland's competence to recognise and terminate public health emergencies on a

national level remains unaffected by Article 23 of Regulation (EU) 2022/2371;

(i)

Article 25(a) and (b) of Regulation (EU) 2022/2371 shall not apply to Switzerland;

(j)

in Article 27(1) of Regulation (EU) 2022/2371, the reference to

Regulation (EU) 2016/679 and Directive 2002/58/EC shall be understood, regarding

Switzerland, as a reference to relevant national legislation.

32023 R 1808 Commission Implementing Regulation (EU) 2023/1808 of 21 September 2023

setting out the template for the provision of information on prevention, preparedness and

response planning in relation to serious cross-border threats to health in accordance with

Regulation (EU) 2022/2371 of the European Parliament and of the Council

(OJ EU L 234, 22.9.2023, p. 105, ELI: http://data.europa.eu/eli/reg_impl/2023/1808/oj).

32024 R 0892 Commission Implementing Regulation (EU) 2024/892 of 22 March 2024

designating European Union reference laboratories for certain specific areas of public health

(OJ EU L, 2024/892, 25.3.2024, ELI: http://data.europa.eu/eli/reg_impl/2024/892/oj).

32024 R 1232 Commission Delegated Regulation (EU) 2024/1232 of 5 March 2024

supplementing Regulation (EU) 2022/2371 of the European Parliament and of the Council as

regards assessments of the state of implementation of national prevention, preparedness and

response plans and their relation with the Union prevention, preparedness and response plan

(OJ EU L, 2024/1232, 8.5.2024, ELI: http://data.europa.eu/eli/reg_del/2024/1232/oj).

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32024 R 2959 Commission Implementing Regulation (EU) 2024/2959 of 29 November 2024

designating European Union reference laboratories for public health on food- and water-borne

bacteria; on food-, water- and vector-borne helminths and protozoa; and on food- and water-

borne viruses (OJ EU L, 2024/2959, 2.12.2024,

ELI: http://data.europa.eu/eli/reg_impl/2024/2959/oj).

32018 D 0945 Commission Implementing Decision (EU) 2018/945 of 22 June 2018 on the

communicable diseases and related special health issues to be covered by epidemiological

surveillance as well as relevant case definitions (OJ EU L 170, 6.7.2018, p. 1,

ELI: http://data.europa.eu/eli/dec_impl/2018/945/oj).

32017 D 0253 Commission Implementing Decision (EU) 2017/253 of 13 February 2017

laying down procedures for the notification of alerts as part of the early warning and response

system established in relation to serious cross-border threats to health and for the information

exchange, consultation and coordination of responses to such threats pursuant to

Decision No 1082/2013/EU (OJ EU L 37, 14.2.2017, p. 23,

ELI: http://data.europa.eu/eli/dec_impl/2017/253/oj), as amended by:

–

32021 D 0858 Commission Implementing Decision (EU) 2021/858 of 27 May 2021

amending implementing Decision (EU) 2017/253 as regards alerts triggered by serious

cross-border threats to health and for the contact tracing of passengers identified

through Passenger Locator Forms (OJ EU L 188, 28.5.2021, p. 106,

ELI: http://data.europa.eu/eli/dec_impl/2021/858/oj);

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–

32021 D 1212 Commission Implementing Decision (EU) 2021/1212 of 22 July 2021

amending Decision (EU) 2017/253 as regards alerts triggered by serious cross-border

threats to health and for the contact tracing of exposed persons in the context of the

completion of Passenger Locator Forms (OJ EU L 263, 23.7.2021, p. 32,

ELI: http://data.europa.eu/eli/dec_impl/2021/1212/oj).

EUROPEAN CENTRE FOR DISEASE PREVENTION AND CONTROL

32004 R 0851 Regulation (EC) No 851/2004 of the European Parliament and of the Council

of 21 April 2004 establishing a European Centre for disease prevention and control

(OJ EU L 142, 30.4.2004, p. 1, ELI: http://data.europa.eu/eli/reg/2004/851/oj), as amended

by:

–

32022 R 2370 Regulation (EU) 2022/2370 of the European Parliament and of the

Council of 23 November 2022 amending Regulation (EC) No 851/2004 establishing a

European centre for disease prevention and control (OJ EU L 314, 6.12.2022, p. 1,

ELI: http://data.europa.eu/eli/reg/2022/2370/oj).

The provisions of Regulation (EC) No 851/2004 shall, for the purposes of this Agreement, be

read with the following adaptations:

(a)

Switzerland shall participate in the Centre;

(b)

Switzerland shall contribute financially to the activities of the Centre in accordance with

Article 25 of the Agreement;

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(c)

Switzerland shall participate fully in the Management Board of the Centre and shall

have the same rights and obligations within it as Member States of the Union, except for

the right to vote;

(d)

Switzerland shall participate fully in the Advisory Forum of the Centre and shall have

the same rights and obligations within it as Member States of the Union;

(e)

Switzerland shall grant to the Centre and its staff, within the framework of their official

functions for the Agency, the privileges and immunities provided for in the Appendix ,

which are based on Articles 1 to 6, 10 to 15, and 17 and 18 of the Protocol (No 7).

References to the corresponding articles of that Protocol are indicated between brackets

for information;

(f)

by way of derogation from Article 12(2)(a) of the Conditions of Employment of Other

Servants of the European Union (laid down in Regulation No 31 (EEC), 11 (EAEC),

laying down the Staff Regulations of Officials and the Conditions of Employment of

Other Servants of the European Economic Community and the European Atomic

Energy Community (OJ 45, 14.6.1962, p. 1385), including any subsequent amendment),

the Centre may, if it so decides, engage under contract Swiss nationals that enjoy their

full rights as citizens. The Centre may accept the secondment of experts by Switzerland;

(g)

Switzerland shall participate fully in the networks operated by the Centre and shall have

the same rights and obligations within them as Member States of the Union;

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(h)

in Article 3(2)(g) of Regulation (EC) No 851/2004, the words "with the assistance of

and" are added after the expression "on a case-by-case basis";

(i)

in Article 20a of Regulation (EC) No 851/2004, the reference to

Regulation (EU) 2016/679 and Directive 2002/58/EC shall be understood, regarding

Switzerland, as a reference to relevant national legislation.

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Appendix

ON PRIVILEGES AND IMMUNITIES

ARTICLE 1

(corresponding to Article 1 of Protocol (No 7))

The premises and buildings of the Agency shall be inviolable. They shall be exempt from search,

requisition, confiscation or expropriation. The property and assets of the Agency shall not be the

subject of any administrative or legal measure of constraint without the authorisation of the Court of

Justice of the European Union.

ARTICLE 2

(corresponding to Article 2 of Protocol (No 7))

The archives of the Agency shall be inviolable.

ARTICLE 3

(corresponding to Article 3 and 4 of Protocol (No 7))

The Agency, its assets, revenues and other property shall be exempt from all direct taxes.

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Goods and services exported to the Agency for its official use from Switzerland or provided

to the Agency in Switzerland shall not be subject to any indirect duties and taxes.

Exemption from VAT shall be granted if the actual purchase price of the goods and services

mentioned in the invoice or corresponding document totals at least one hundred Swiss francs

(inclusive of tax).The Agency shall be exempt from all customs duties, prohibitions and restrictions

on imports and exports in respect of articles intended for its official use; articles so imported shall

not be disposed of, whether or not in return for payment, in Switzerland, except under conditions

approved by the government of Switzerland.

The exemption from VAT, excise duty and any other indirect taxes shall be granted by way of

remit on presentation to the goods or services supplier of the Swiss forms provided for the purpose.

No exemption shall be granted in respect of taxes and dues, which amount merely to charges

for public utility services.

ARTICLE 4

(corresponding to Article 5 of Protocol (No 7))

For its official communications and the transmission of all its documents, the Agency shall enjoy in

Switzerland the treatment accorded by that State to diplomatic missions.

Official correspondence and other official communications of the Agency shall not be subject to

censorship.

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ARTICLE 5

(corresponding to Article 6 of Protocol (No 7))

The

laissez-passer

of the Union issued to members and servants of the Agency shall be recognised

as valid travel documents within the territory of Switzerland. Those

laissez-passer

shall be issued to

officials and other servants under conditions laid down in the Staff Regulations of Officials and the

Conditions of Employment of other servants of the Union (Regulation No 31 (EEC), 11 (EAEC),

laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants

of the European Economic Community and the European Atomic Energy Community (OJ 45,

14.6.1962, p. 1385), including any subsequent amendments).

ARTICLE 6

(corresponding to Article 10 of Protocol (No 7))

Representatives of Member States of the Union taking part in the work of the Agency, their advisers

and technical experts shall, in the performance of their duties and during their travel to and from the

place of meeting in Switzerland, enjoy the customary privileges, immunities and facilities.

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ARTICLE 7

(corresponding to Article 11 of Protocol (No 7))

In the territory of Switzerland and whatever their nationality, officials and other servants of the

Agency shall:

(a)

subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability

of officials and other servants towards the Union and, on the other hand, to the jurisdiction of

the Court of Justice of the European Union in disputes between the Union and its officials and

other servants, be immune from legal proceedings in respect of acts performed by them in

their official capacity, including their words spoken or written. They shall continue to enjoy

this immunity after they have ceased to hold office;

(b)

together with their spouses and dependent members of their families, not be subject to

immigration restrictions or to formalities for the registration of aliens;

(c)

in respect of currency or exchange regulations, be accorded the same facilities as are

customarily accorded to officials of international organisations;

(d)

enjoy the right to import free of duty their furniture and effects at the time of first taking up

their post in Switzerland, and the right to re-export free of duty their furniture and effects, on

termination of their duties in that country, subject in either case to the conditions considered

to be necessary by the government of Switzerland;

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(e)

have the right to import free of duty a motor car for their personal use, acquired either in the

country of their last residence or in the country of which they are nationals on the terms ruling

in the home market in that country, and to re-export it free of duty, subject in either case to the

conditions considered to be necessary by the government of Switzerland.

ARTICLE 8

(corresponding to Article 12 of Protocol (No 7))

Officials and other servants of the Agency shall be liable to a tax for the benefit of the Union on

salaries, wages and emoluments paid to them by the Agency, in accordance with the conditions and

procedure laid down by Union law.

They shall be exempt from Swiss federal, cantonal and communal taxes on salaries, wages and

emoluments paid by the Agency.

ARTICLE 9

(corresponding to Article 13 of Protocol (No 7))

In the application of income tax, wealth tax and death duties and in the application of conventions

on the avoidance of double taxation concluded between Switzerland and Member States of the

Union, officials and other servants of the Agency who, solely by reason of the performance of their

duties in the service of the Agency, establish their residence in the territory of Switzerland for tax

purposes at the time of entering the service of the Agency, shall be considered, both in Switzerland

and in the country of domicile for tax purposes, as having maintained their domicile in the latter

country provided that it is a Member State of the Union. This provision shall also apply to a spouse,

to the extent that the latter is not separately engaged in a gainful occupation, and to children

dependent on and in the care of the persons referred to in this Article.

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Movable property belonging to persons referred to in the first paragraph and situated in Switzerland

shall be exempt from death duties in Switzerland; such property shall, for the assessment of such

duty, be considered as being in the country of domicile for tax purposes, subject to the rights of

third countries and to the possible application of provisions of international conventions on double

taxation.

Any domicile acquired solely by reason of the performance of duties in the service of other

international organisations shall not be taken into consideration in applying the provisions of this

Article.

ARTICLE 10

(corresponding to Article 14 of Protocol (No 7))

Union law shall lay down the scheme of social security benefits for officials and other servants of

the Union.

Officials and other servants of the Agency shall therefore not be obliged to be members of the

Swiss social security system provided they are already covered by the scheme of social security

benefits for officials and other servants of the Union. Members of the family of staff members of

the Agency forming part of their household shall be covered by the scheme of social security

benefits for officials and other servants of the Union provided that they are not employed by another

employer than the Agency and provided that they do not receive social security benefits from a

Member State of the Union or from Switzerland.

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ARTICLE 11

(corresponding to Article 15 of Protocol (No 7))

Union law shall determine the categories of officials and other servants of the Agency to whom the

provisions of Articles 7, 8, and 9 shall apply, in whole or in part.

The names, grades and addresses of officials and other servants included in such categories shall be

communicated periodically to Switzerland.

ARTICLE 12

(corresponding to Article 17 of Protocol (No 7))

Privileges, immunities and facilities shall be accorded to officials and other servants of the Agency

solely in the interests of the Agency.

The Agency shall be required to waive the immunity accorded to an official or other servant

wherever that Agency considers that the waiver of such immunity is not contrary to the interests of

the Agency.

ARTICLE 13

(corresponding to Article 18 of Protocol (No 7))

The Agency shall, for the purpose of applying this Appendix, cooperate with the responsible

authorities of Switzerland or of the Member States of the Union concerned.

________________

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ANNEX II

ON THE APPLICATION

OF ARTICLE 25 OF THE AGREEMENT

ARTICLE 1

List of the activities of the Union agencies,

information systems and other activities

to which Switzerland is to contribute financially

Switzerland shall contribute financially to

(a)

agencies:

–

European Centre for disease prevention and control, established by

Regulation (EC) No 851/2004 (OJ EU L 142, 30.4.2004, p. 1,

ELI: http://data.europa.eu/eli/reg/2004/851/oj), as applicable according to Annex I;

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(b)

information systems:

–

the Early Warning and Response System (EWRS), established in accordance with

Regulation (EU) 2022/2371 (OJ EU L 314, 6.12.2022, p. 26,

ELI: http://data.europa.eu/eli/reg/2022/2371/oj), as applicable according to Annex I,

unless the Swiss contribution to that information system is already covered in its

entirety by the Swiss contribution to the Centre and the Programme for the Union's

action in the field of health;

(c)

other activities:

–

none.

ARTICLE 2

Terms of payment

Payments due pursuant to Article 25 of the Agreement shall be made in accordance with this

Article.

When issuing the call for funds of the financial year, the Commission shall communicate the

following information to Switzerland:

(a)

the amount of the operational contribution; and

(b)

the amount of the participation fee.

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The Commission shall communicate to Switzerland, as soon as possible and at the latest

on 16 April of each financial year, the following information in relation to Switzerland's

participation:

(a)

the amounts in commitment appropriations of the annual Union voted budget inscribed on the

relevant Union budget subsidy line(s) of the year in question for each Union agency, taking

into account for each agency any adjusted operational contribution as defined in Article 1, and

the amounts in commitment appropriations in relation to the Union voted budget of the year in

question for the relevant budget of the information systems and other activities, covering the

participation of Switzerland in accordance with Article 1;

(b)

the amount of the participation fee referred to in Article 25(7) of the Agreement; and

(c)

as regards agencies, in year N+1, the amounts in budgetary commitments made on

commitment appropriations authorised in year N on the relevant Union budget subsidy line(s)

in relation to the annual Union budget inscribed on the relevant Union budget subsidy line(s)

of year N.

On the basis of its draft budget, the Commission shall provide an estimate of information

under points (a) and (b) of paragraph 3 as soon as possible, and at the latest, by 1 September of the

financial year.

The Commission shall issue to Switzerland, at the latest on 16 April and, if applicable to the

relevant agency, information system or other activity, at the earliest on 22 October and at the latest

on 31 October of each financial year, a call for funds that corresponds to the contribution of

Switzerland under this Agreement for each of the agencies, information systems and other activities

in which Switzerland participates.

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The call(s) for funds referred to in paragraph 5 shall be structured in instalments as follows:

(a)

the first instalment of each year, in relation to the call for funds to be issued by 16 April, shall

correspond to an amount up to the equivalent of the estimate of the annual financial

contribution of the agency, information system or other activity in question referred to in

paragraph 4;

Switzerland shall pay the amount indicated in this call for funds at the latest 60 days after the

call for funds is issued.

(b)

where applicable, the second instalment of the year, in relation to the call for funds to be

issued at the earliest on 22 October and at the latest on 31 October, shall correspond to the

difference between the amount referred to in paragraph 4 and the amount referred to in

paragraph 5 where the amount referred to in paragraph 5 is higher.

Switzerland shall pay the amount indicated in this call for funds at the latest by 21 December.

For each call for funds, Switzerland may make separate payments for each agency, information

system or other activity.

For the first year of implementation of this Agreement, the Commission shall issue a single

call for funds, within 90 days of the entry into force of this Agreement.

Switzerland shall pay the amount indicated in the call for funds at the latest 60 days after the call for

funds is issued.

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Any delay in the payment of the financial contribution shall give rise to the payment of

default interest by Switzerland on the outstanding amount as from the due date until the day on

which that outstanding amount is paid in full.

The interest rate for amounts receivable not paid on the due date shall be the rate applied by the

European Central Bank to its principal refinancing operations, as published in the C series of the

Official Journal of the European Union,

in force on the first day of the month in which the due date

falls, or 0%, whichever is higher, plus 3,5 percentage points.

ARTICLE 3

Adjustment of Switzerland's financial contribution

to Union agencies in the light of implementation

The adjustment of Switzerland's financial contribution to Union agencies shall be made in

year N+1, when the initial operational contribution shall be adjusted upwards or downwards by the

difference between the initial operational contribution and an adjusted contribution calculated by

applying the contribution key of year N to the amount of budgetary commitments made on

commitment appropriations authorised in year N under the relevant Union subsidy budget line(s).

Where applicable, the difference shall take into account for each agency the percentage-based

adjusted operational contribution as defined in Article 1.

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ARTICLE 4

Transitional arrangements

In the event that the date of entry into force of this Agreement is not 1 January, this Article shall

apply by way of derogation from Article 2.

For the first year of implementation of this Agreement, in relation to the operational contribution

due for the year in question applicable to the relevant agency, information system or other activity,

as established in accordance with Article 25 of the Agreement and Articles 1 to 3 of this Annex, the

operational contribution shall be reduced on a

pro rata temporis

basis by multiplying the amount of

the annual operational contribution due to the ratio of the following:

(a)

the number of calendar days from the date of entry into force of this Agreement until

the 31 December of the year in question; and

(b)

the total number of calendar days of the year in question.

________________

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PROTOCOL

ON THE ARBITRAL TRIBUNAL

CHAPTER I

PRELIMINARY PROVISIONS

ARTICLE I.1

Scope

If one of the Contracting Parties (hereinafter referred to as "parties") submits a dispute for

arbitration in accordance with Articles 15(2) or 16(2) of the Agreement, the rules set out in this

Protocol shall apply.

ARTICLE I.2

Registry and secretarial services

The International Bureau of the Permanent Court of Arbitration at the Hague (hereinafter referred to

as "International Bureau") shall fulfil the functions of registry and provide the necessary secretarial

services.

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ARTICLE I.3

Notices and calculation of time limits

Notices, including communications or proposals, may be sent by any means of

communication that certifies their transmission, or enables them to be certified.

Such notices may be sent electronically, only if an address has been designated or authorised

by a party specifically for this purpose.

Such notices served on the parties shall be sent, for Switzerland, to Switzerland's Europe

Division of the Federal Department of Foreign Affairs and, for the Union, to the Commission's

Legal Service.

Any time limit laid down in this Protocol shall run from the day after an event occurs or an

action takes place. If the last day for delivery of a document falls on a non-working day of the

institutions of the Union or of the government of Switzerland, the time period for the delivery of the

document shall end on the first following working day. Non-working days that fall within the time

period shall be counted.

ARTICLE I.4

Notice of arbitration

The party taking the initiative to use arbitration (the "applicant") shall send to the other party

(the "defendant") and to the International Bureau a notice of arbitration.

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Arbitration proceedings shall be deemed to commence on the day after that on which the

notice of arbitration is received by the defendant.

The notice of arbitration shall include the following information:

(a)

the demand that the dispute be referred to arbitration;

(b)

the names and contact details of the parties;

(c)

the name and address of the applicant's agent(s);

(d)

the legal basis of the proceedings (Article 15(2) or Article 16(2) of the Agreement and:

(i)

in the cases referred to in Article 15(2) of the Agreement, the question causing the

dispute as officially entered, for resolution, on the agenda of the Joint Committee in

accordance with Article 15(1) of the Agreement; and

(ii)

in the cases referred to in Article 16(2) of the Agreement, the decision of the arbitral

tribunal, any implementation measures mentioned in Article 15(5) of the Agreement

and the disputed compensatory measures;

(e)

the designation of any rule causing the dispute or related to it;

(f)

a brief description of the dispute; and

(g)

the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of

two arbitrators.

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In the cases referred to in Article 15(3) of the Agreement, the notice of arbitration may also

contain information concerning the need for a referral to the Court of Justice of the European

Union.

Any claims on the sufficiency of the notice of arbitration shall not prevent the constitution of

the arbitral tribunal. The dispute shall be decided definitively by the arbitral tribunal.

ARTICLE I.5

Response to the notice of arbitration

Within 60 days of receiving the notice of arbitration, the defendant shall send a response to

the notice of arbitration to the applicant and the International Bureau, which shall include the

following information:

(a)

the names and contact details of the parties;

(b)

the name and address of the defendant's agent(s);

(c)

a response to the information given in the notice of arbitration in accordance with points (d)

to (f) of Article I.4(3); and

(d)

the designation of an arbitrator or, if five arbitrators are to be appointed, the designation of

two arbitrators.

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In the cases referred to in Article 15(3) of the Agreement, the response to the notice of

arbitration may also contain a response to the information given in the notice of arbitration in

accordance with Article I.4(4) of this Protocol and information concerning the need for a referral to

the Court of Justice of the European Union.

The lack of, or an incomplete or late, response from the defendant to the notice of arbitration

shall not prevent the constitution of an arbitral tribunal. The dispute shall be decided definitively by

the arbitral tribunal.

If the defendant requests that the arbitral tribunal consist of five arbitrators in its response to

the notice of arbitration, the applicant shall designate an additional arbitrator within 30 days of

receipt of the response to the notice of arbitration.

ARTICLE I.6

Representation and assistance

The parties shall be represented before the arbitral tribunal by one or more agents. The agents

may be assisted by advisers or lawyers.

Any change to the agents or their addresses shall be notified to the other party, the

International Bureau and the arbitral tribunal. The arbitral tribunal may, at any time, on its own

initiative or at the request of a party, request evidence of the powers conferred on the agents of the

parties.

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CHAPTER II

COMPOSITION OF THE ARBITRAL TRIBUNAL

ARTICLE II.1

Number of arbitrators

The arbitral tribunal shall be composed of three arbitrators. If the applicant in its notice of

arbitration or the defendant in its response to the notice of arbitration so request, the arbitral tribunal

shall be composed of five arbitrators.

ARTICLE II.2

Appointment of arbitrators

If three arbitrators are to be appointed, each of the parties shall designate one of them. The

two arbitrators appointed by the parties shall select the third arbitrator, who shall be the chair of the

arbitral tribunal.

If five arbitrators are to be appointed, each of the parties shall designate two of them. The

four arbitrators appointed by the parties shall select the fifth arbitrator, who shall be the chair of the

arbitral tribunal.

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If, within 30 days of the designation of the last arbitrator appointed by the parties, the

arbitrators have not reached agreement on the selection of the chair of the arbitral tribunal, the chair

shall be appointed by the Secretary-General of the Permanent Court of Arbitration.

To assist in the selection of arbitrators to compose the arbitral tribunal, an indicative list of

persons possessing the qualifications referred to in paragraph 6, which shall be common to all

bilateral agreements in the fields related to the internal market in which Switzerland participates as

well as this Agreement, the Agreement between the European Community and the

Swiss Confederation on trade in agricultural products, done at Luxembourg on 21 June 1999

(hereinafter referred to as "Agreement on trade in agricultural products") and the Agreement

between the European Union and the Swiss Confederation on Switzerland's regular financial

contribution towards reducing economic and social disparities in the European Union, done at […]

on […] (hereinafter referred to as "Agreement on Switzerland's regular financial contribution"),

shall be established and updated when necessary. The Joint Committee shall adopt and update that

list by a decision for the purposes of this Agreement.

Where a party fails to designate an arbitrator, the Secretary-General of the Permanent Court of

Arbitration shall appoint that arbitrator from the list referred to in paragraph 4. In the absence of

such a list, the arbitrator shall be appointed by lot by the Secretary-General of the Permanent Court

of Arbitration from the individuals who have been formally proposed by one party or both parties

for the purposes of paragraph 4.

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The persons constituting the arbitral tribunal shall be highly qualified persons, with or without

ties to the parties, whose independence and lack of conflicts of interest is guaranteed, along with a

wide range of experience. In particular, they shall have demonstrated expertise in law and the

matters covered by this Agreement; they shall not take instructions from either party; and they shall

serve in their individual capacities and not take instructions from any organisation or government

with regard to matters related to the dispute. The chair of the arbitral tribunal shall also have

experience in dispute settlement procedures.

ARTICLE II.3

Arbitrators' declarations

When a person is being considered for appointment as an arbitrator, that person shall report

all circumstances likely to give rise to legitimate doubts as to his or her impartiality or

independence. From the appointment and throughout the entire arbitration proceedings, an arbitrator

shall report such circumstances to the parties and to the other arbitrators without delay, if the

arbitrator has not already done so.

Any arbitrator may be dismissed if circumstances exist that could give rise to legitimate

doubts about his or her impartiality or independence.

A party may only request the dismissal of an arbitrator that it has appointed for a reason that

becomes known to it after that appointment.

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If an arbitrator fails to act or if it is impossible

de jure

de facto

for an arbitrator to fulfil his

or her role, the procedure for the dismissal of arbitrators laid down in Article II.4 shall apply.

ARTICLE II.4

Dismissal of arbitrators

Any party wishing to dismiss an arbitrator shall make a request for dismissal within 30 days

of the date on which it is notified of the appointment of that arbitrator or within 30 days of the date

on which it becomes aware of the circumstances referred to in Article II.3.

The request for dismissal shall be sent to the other party, to the dismissed arbitrator, to the

other arbitrators and to the International Bureau. It shall set out the reasons for the request for

dismissal.

When a request for dismissal has been made, the other party may accept the request for

dismissal. The arbitrator in question may also step aside. The acceptance or stepping aside does not

imply acknowledgement of the reasons for the request for dismissal.

If, within 15 days of the date of the notification of the request for dismissal, the other party

does not accept the request for dismissal or the arbitrator in question does not step aside, the party

requesting the dismissal may ask the Secretary-General of the Permanent Court of Arbitration to

take a decision on the dismissal.

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Unless the parties agree otherwise, the decision referred to in paragraph 4 shall indicate the

reasons for that decision.

ARTICLE II.5

Replacement of an arbitrator

Subject to paragraph 2 of this Article, if it is necessary to replace an arbitrator during the

arbitration proceedings, a replacement shall be appointed or selected in accordance with the

procedure laid down in Article II.2 applicable to the appointment or selection of the arbitrator to be

replaced. That procedure shall apply even if one party had not exercised its right to appoint or to

participate in the appointment of the arbitrator to be replaced.

In the event of replacement of an arbitrator, the procedure shall resume at the stage where the

replaced arbitrator ceased to perform his or her functions, unless the arbitral tribunal decides

otherwise.

ARTICLE II.6

Exclusion of liability

Except in cases of intentional wrongdoing or gross negligence, the parties renounce, to the

maximum extent permitted by the applicable law, any action against the arbitrators for any act or

omission related to the arbitration.

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CHAPTER III

ARBITRATION PROCEEDINGS

ARTICLE III.1

General provisions

The date of establishment of the arbitral tribunal shall be the date on which the last arbitrator

has accepted his or her appointment.

The arbitral tribunal shall ensure that the parties are treated equally and that, at an appropriate

stage of the proceedings, each of them has sufficient possibility to assert their rights and present

their case. The arbitral tribunal shall conduct the proceedings in such a way as to avoid delays and

unnecessary expenditure and to ensure the dispute between the parties is settled.

A hearing shall be organised, unless the arbitral tribunal decides otherwise, having heard the

parties.

When a party sends a communication to the arbitral tribunal, it shall do so through the

International Bureau and shall send a copy to the other party at the same time. The International

Bureau shall send a copy of that communication to each of the arbitrators.

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ARTICLE III.2

Place of arbitration

The place of arbitration is The Hague. The arbitral tribunal may, if exceptional circumstances so

require, meet at any other place that it considers appropriate for its deliberations.

ARTICLE III.3

Language

The languages of the proceedings shall be French and English.

The arbitral tribunal may order all documents enclosed with the statement of claim or the

statement of defence and all further documents produced during the proceedings, submitted in their

original language, to be accompanied by a translation in one of the languages of the proceedings.

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ARTICLE III.4

Statement of claim

The applicant shall send its statement of claim in writing to the defendant and to the arbitral

tribunal through the International Bureau, within the time limit set by the arbitral tribunal. The

applicant may decide to deem its notice of arbitration referred to in Article I.4 a statement of claim,

provided that it also meets the conditions in paragraphs 2 and 3 of this Article.

The statement of claim shall include the following information:

(a)

the information set out in points (b) to (f) of Article I.4(3);

(b)

a statement of facts submitted in support of the claim; and

(c)

the legal arguments put forward in support of the claim.

The statement of claim shall, as far as possible, be accompanied by any documents and other

evidence mentioned by the applicant or should refer to them. In the cases referred to in Article 15(3)

of the Agreement, the statement of claim shall also, as far as possible, contain information

concerning the need for a referral to the Court of Justice of the European Union.

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ARTICLE III.5

Statement of defence

The defendant shall send the statement of defence in writing to the applicant and to the

arbitral tribunal through the International Bureau, within the time limit set by the arbitral tribunal.

The defendant may decide to deem the response to the notice of arbitration referred to in Article I.5

a statement of defence, provided that the response to the notice of arbitration also meets the

conditions in paragraph 2 of this Article.

The statement of defence shall respond to the points in the statement of claim indicated in

accordance with points (a) to (c) of Article III.4(2), of this Protocol. It shall, as far as possible, be

accompanied by any documents and other evidence mentioned by the defendant or should refer to

them. In the cases referred to in Article 15(3) of the Agreement, the statement of defence shall also,

as far as possible, contain information concerning the need for a referral to the Court of Justice of

the European Union.

In the statement of defence, or at a later stage in the arbitration proceedings if the arbitral

tribunal decides that a delay is justified by circumstances, the defendant may make a counterclaim

provided that the arbitral tribunal has jurisdiction in respect of it.

Article III.4(2) and (3) shall apply to a counterclaim.

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ARTICLE III.6

Arbitral jurisdiction

The arbitral tribunal shall rule on whether it has jurisdiction on the basis of

Articles 15(2) or 16(2) of the Agreement.

In the cases referred to in Article 15(2) of the Agreement, the arbitral tribunal shall have a

mandate to examine the question causing the dispute as officially entered, for resolution, on the

agenda of the Joint Committee in accordance with Article 15(1) of the Agreement.

In the cases referred to in Article 16(2) of the Agreement, the arbitral tribunal that heard the

main case shall have a mandate to examine the proportionality of the disputed compensatory

measures, including where those measures have in whole or in part been taken in accordance with

Articles 19(1)(c) and 20(4) of the Agreement on Switzerland's participation in Union Programmes,

as regards Switzerland's participation in the Programme for the Union's action in the field of health.

A preliminary objection of lack of jurisdiction of the arbitral tribunal shall be made at the

latest in the statement of defence or, in the case of a counterclaim, in the reply. The fact that a party

has appointed an arbitrator or has taken part in their appointment shall not deprive it of the right to

make such a preliminary objection. The preliminary objection that the dispute would exceed the

arbitral tribunal's powers shall be made as soon as the question alleged to exceed its powers is

raised during the arbitration proceedings. In any event, the arbitral tribunal may allow a preliminary

objection made after the time limit laid down has elapsed if it believes that the delay was for a valid

reason.

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The arbitral tribunal may rule on the preliminary objection referred to in paragraph 4 either by

treating it as a preliminary question or in the decision on the substance of the case.

ARTICLE III.7

Other written submissions

The arbitral tribunal shall, after having consulted the parties, decide what other written submissions,

in addition to the statement of claim and statement of defence, the parties shall or may submit and

shall set the time limit for their submission.

ARTICLE III.8

Time limits

The time limits set by the arbitral tribunal for the communication of the written documents,

including the statement of claim and the statement of defence, shall not exceed 90 days, unless the

parties agree otherwise.

The arbitral tribunal shall take its final decision within 12 months of the date of its

establishment. In exceptional circumstances of particular difficulty, the arbitral tribunal may extend

that period by up to three additional months.

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The time limits laid down in paragraphs 1 and 2 shall be halved:

(a)

upon request by the applicant or the defendant, if within 30 days of that request, the arbitral

tribunal rules, after hearing the other party, that the case is urgent; or

(b)

if the parties so agree.

In the cases referred to in Article 16(2) of the Agreement, the arbitral tribunal shall take its

final decision within six months of the date on which the compensatory measures have been

notified in accordance with Article 16(1) of the Agreement.

ARTICLE III.9

Referrals to the Court of Justice of the European Union

In application of Article 12 and Article 15(3) of the Agreement, the arbitral tribunal shall

make a referral to the Court of Justice of the European Union.

The arbitral tribunal may make a referral to the Court of Justice of the European Union at any

time in the proceedings, provided that the arbitral tribunal is able to define precisely enough the

legal and factual background of the case, and the legal questions it raises. The proceedings before

the arbitral tribunal shall be suspended until the Court of Justice of the European Union has

delivered its ruling.

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Each party may send a reasoned request to the arbitral tribunal to make a referral to the Court

of Justice of the European Union. The arbitral tribunal shall reject such a request if it considers the

conditions for a referral to the Court of Justice of the European Union referred to in paragraph 1 not

to be met. If the arbitral tribunal rejects a party's request for a referral to the Court of Justice of the

European Union, it shall give reasons for its decision in the decision on the substance of the case.

The arbitral tribunal shall make a referral to the Court of Justice of the European Union by

means of a notice. The notice shall contain at least the following information:

(a)

a brief description of the dispute;

(b)

the legal act(s) of the Union and/or the provision(s) of this Agreement at issue; and

(c)

the concept of Union law to be interpreted in accordance with Article 12(2) of the Agreement.

The arbitral tribunal shall give notice of the referral to the Court of Justice of the European Union to

the parties.

The Court of Justice of the European Union shall apply, by analogy, the internal rules of

procedure applicable to the exercise of its jurisdiction to make a preliminary ruling on the

interpretation of the Treaties and acts made by the Union's institutions, bodies, offices and agencies.

The agents and lawyers authorised to represent the parties before the arbitral tribunal pursuant

to Articles I.4, I.5, III.4 and III.5 shall be authorised to represent the parties before the Court of

Justice of the European Union.

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ARTICLE III.10

Interim measures

In the cases referred to in Article 16(2) of the Agreement, either party may, at any stage of the

arbitration procedure, apply for interim measures consisting of the suspension of the compensatory

measures.

An application pursuant to paragraph 1 shall state the subject-matter of the proceedings, the

circumstances giving rise to urgency and the pleas of fact and law establishing a

prima facie

case

for the interim measures applied for. It shall contain all the evidence and offers of evidence

available to justify the grant of the interim measures.

The party requesting the interim measures shall send its application in writing to the other

party and to the arbitral tribunal through the International Bureau. The arbitral tribunal shall set a

short time limit within which that other party may submit written or oral observations.

The arbitral tribunal shall, within one month of the submission of the application referred to in

paragraph 1, adopt a decision on the suspension of the contested compensatory measures if the

following conditions are met:

(a)

the arbitral tribunal is

prima facie

satisfied of the merit of the case submitted by the party

requesting the interim measures in its application;

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(b)

the arbitral tribunal considers that, pending its final decision, the party requesting the interim

measures would suffer serious and irreparable harm absent the suspension of the

compensatory measures; and

(c)

the harm caused to the party requesting the interim measures by the immediate application of

the contested compensatory measures outweighs the interest in the immediate and effective

application of those measures.

The suspension of proceedings referred to in the second subparagraph of Article III.9(2) shall

not apply in proceedings pursuant to this Article.

A decision taken by the arbitral tribunal in accordance with paragraph 4 shall have only an

interim effect and shall be without prejudice to the decision of the arbitral tribunal on the substance

of the case.

Unless the decision taken by the arbitral tribunal in accordance with paragraph 4 of this

Article sets an earlier date for the end of the suspension, the suspension shall lapse when the final

decision pursuant to Article 16(2) of the Agreement is taken.

For the avoidance of doubt, for the purposes of this Article, it is understood that, in

considering the respective interests of the party requesting the interim measures and the other party,

the arbitral tribunal shall take into account those of the individuals and economic operators of the

parties, but that consideration shall not amount to granting any standing to such individuals or

economic operators before the arbitral tribunal.

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ARTICLE III.11

Evidence

Each party shall provide evidence of the facts forming the grounds of its claim or its defence.

On request of a party, or on its own initiative, the arbitral tribunal may seek from the parties

relevant information it considers necessary and appropriate. The arbitral tribunal shall set a time

limit for the parties to respond to its request.

On request of a party, or on its own initiative, the arbitral tribunal may seek from any source

any information it considers appropriate. The arbitral tribunal may also seek the opinion of experts

as it considers appropriate and subject to any terms and conditions agreed by the parties, where

applicable.

Any information obtained by the arbitral tribunal under this Article shall be made available to

the parties, and the parties may submit comments on that information to the arbitral tribunal.

After seeking the views of the other party, the arbitral tribunal shall adopt appropriate

measures to address any questions raised by a party with regard to the protection of personal data,

professional secrecy and the legitimate interests of confidentiality.

The arbitral tribunal shall be the judge of the admissibility, relevance and strength of the

evidence submitted.

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ARTICLE III.12

Hearings

When a hearing must take place, the arbitral tribunal, having consulted the parties, shall notify

the parties sufficiently far in advance of the date, time and place of the hearing.

The hearing shall be public, unless the arbitral tribunal, of its own motion or on application by

the parties, decides otherwise for serious reasons.

Minutes of each hearing shall be drawn up and signed by the chair of the arbitral tribunal.

Only those minutes shall be authentic.

The arbitral tribunal may decide to hold the hearing virtually in accordance with the practice

of the International Bureau. The parties shall be informed of this practice in a timely manner. In

such cases, paragraph 1,

mutatis mutandis,

and paragraph 3 shall apply.

ARTICLE III.13

Default

If, within the time limit set by this Protocol or by the arbitral tribunal, without showing

sufficient cause, the applicant has not submitted its statement of claim, the arbitral tribunal shall

order the closure of the arbitration proceedings, unless there are outstanding questions on which a

ruling may be necessary and if the arbitral tribunal considers it appropriate to do so.

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If, within the time limit set by this Protocol or by the arbitral tribunal, without showing sufficient

cause, the defendant has not submitted its response to the notice of arbitration or its statement of

defence, the arbitral tribunal shall order the continuation of the proceedings, without considering

that default of itself to constitute acceptance of the applicant's allegations.

The second subparagraph also applies where the applicant fails to submit a reply to a counterclaim.

If a party, duly convened in accordance with Article III.12(1), does not appear at a hearing

and does not demonstrate sufficient cause for its failure to do so, the arbitral tribunal may continue

the arbitration.

If a party, duly invited by the arbitral tribunal to produce further evidence, fails to do so

within the time limits set without showing sufficient cause for its failure to do so, the arbitral

tribunal may rule on the basis of the evidence it has available.

ARTICLE III.14

Closure of the procedure

Where it is demonstrated that the parties have reasonably had the possibility of presenting

their arguments, the arbitral tribunal may declare the closure of the proceedings.

The arbitral tribunal may, if it considers it necessary because of exceptional circumstances,

decide on its own initiative or at the request of a party to reopen the proceedings at any time before

it has taken of its decision.

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CHAPTER IV

DECISION

ARTICLE IV.1

Decisions

The arbitral tribunal shall strive to take its decisions by consensus. If, however, it proves impossible

to take a decision by consensus, the arbitral tribunal's decision shall be taken by a majority of the

arbitrators.

ARTICLE IV.2

Form and effect of the decision of the arbitral tribunal

The arbitral tribunal may take separate decisions on different questions at different times.

All decisions shall be issued in writing and shall state the reasons on which they are based.

They shall be final and binding on the parties.

The decision of the arbitral tribunal shall be signed by the arbitrators, shall contain the date on

which it was taken and state the place of arbitration. A copy of the decision signed by the arbitrators

shall be communicated to the parties by the International Bureau.

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The International Bureau shall make the decision of the arbitral tribunal public.

When making the decision of the arbitral tribunal public, the International Bureau shall respect the

relevant rules on the protection of personal data, professional secrecy and the legitimate interests of

confidentiality.

The rules referred to in the second subparagraph shall be identical for all bilateral agreements in the

fields of the internal market in which Switzerland participates, as well as for this Agreement, the

Agreement on trade in agricultural products and the Agreement on Switzerland's regular financial

contribution. The Joint Committee shall adopt and update those rules by a decision for the purposes

of this Agreement.

The parties shall comply with all decisions of the arbitral tribunal without delay.

In the cases referred to in Article 15(2) of the Agreement, having obtained the opinion of the

parties, the arbitral tribunal shall set a reasonable time limit in the decision on the substance of the

case to comply with its decision in accordance with Article 15(5) of the Agreement taking account

of the parties' internal procedures.

ARTICLE IV.3

Applicable law, rules of interpretation, mediator

The applicable law consists of this Agreement, the legal acts of the Union to which reference

is made therein, as well as any other rule of international law relevant to the application of those

instruments.

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The arbitral tribunal shall decide in accordance with the rules of interpretation referred to in

Article 12 of the Agreement.

The arbitral tribunal shall not be permitted to decide as mediator or

ex aequo et bono.

ARTICLE IV.4

Mutually agreed solution or other reasons for closure of the proceedings

The parties may, at any time, mutually agree a solution to their dispute. They shall jointly

communicate any such solution to the arbitral tribunal. If the solution requires approval pursuant to

the relevant domestic procedures of either party, the notification shall refer to that requirement, and

the arbitration procedure shall be suspended. If such approval is not required, or upon notification

of the completion of any such domestic procedures, the arbitration procedure shall be closed.

If, in the course of proceedings, the applicant informs the arbitral tribunal in writing that it

does not wish to further pursue the proceedings, and if, at the date on which that communication is

received by the arbitral tribunal, the defendant has not yet taken any step in the proceedings, the

arbitral tribunal shall issue an order officially recording the closure of the proceedings. The arbitral

tribunal shall decide on the costs, which shall be borne by the applicant, if this appears justified by

the conduct of that party.

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If, before the decision of the arbitral tribunal is taken, the arbitral tribunal concludes that the

continuation of the proceedings has become pointless or impossible for any reason other than those

referred to in paragraphs 1 and 2, the arbitral tribunal shall inform the parties of its intention to issue

an order closing the proceedings. The first subparagraph does not apply where there are outstanding

questions on which it may be necessary to rule and if the arbitral tribunal judges it appropriate to do

so.

The arbitral tribunal shall communicate to the parties a copy of the order closing the

arbitration proceedings or of the decision taken by agreement between the parties, signed by the

arbitrators. Article IV.2(2) to (5) shall apply to arbitration decisions taken by agreement between

the parties.

ARTICLE IV.5

Correction of the decision of the arbitral tribunal

Within 30 days of receiving the decision of the arbitral tribunal, a party may, by giving notice

to the other party and to the arbitral tribunal through the International Bureau, ask the arbitral

tribunal to correct in the text of the decision of the arbitral tribunal any errors in computation, any

clerical or typographical errors, or any errors or omissions of a similar nature. If it considers the

request to be justified, the arbitral tribunal shall make the correction within 45 days of receiving the

request. The request shall not have a suspensive effect on the time limit provided for in

Article IV.2(6).

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The arbitral tribunal may, within 30 days of communicating its decision, make the corrections

referred to in paragraph 1 on its own initiative.

The corrections referred to in paragraph 1 of this Article shall be done in writing and form an

integral part of the decision. Article IV.2(2) to (5) shall apply.

ARTICLE IV.6

Arbitrators' fees

The fees referred to in Article IV.7 shall be reasonable, taking account of the complexity of

the case, the time spent on it by the arbitrators and all other relevant circumstances.

A list of daily compensation and maximum and minimum hours, which shall be common to

all bilateral agreements in the fields related to the internal market in which Switzerland participates,

as well as this Agreement, the Agreement on trade in agricultural products and the Agreement on

Switzerland's regular financial contribution, shall be established and updated when necessary. The

Joint Committee shall adopt and update that list by a decision for the purposes of this Agreement.

ARTICLE IV.7

Costs

Each party shall bear its own costs and half of the costs of the arbitral tribunal.

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The arbitral tribunal shall set its costs in its decision on the substance of the case. Those costs

shall include only:

(a)

the arbitrators' fees, to be stated separately for each arbitrator and to be set by the arbitral

tribunal itself in accordance with Article IV.6;

(b)

the travel and other expenses incurred by the arbitrators; and

(c)

the fees and expenses of the International Bureau.

The costs referred to in paragraph 2 shall be reasonable, taking account of the amount in

dispute, the complexity of the dispute, the time that the arbitrators and any experts appointed by the

arbitral tribunal have spent on it and any other relevant circumstances.

ARTICLE IV.8

Deposit of costs

At the start of the arbitration, the International Bureau may ask the parties to deposit an equal

amount as an advance for the costs referred to in Article IV.7(2).

During the arbitration proceedings, the International Bureau may request from the parties

deposits supplementary to those referred to in paragraph 1.

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All amounts deposited by the parties in application of this Article shall be paid to the

International Bureau and paid out by it to cover the costs actually incurred, including, in particular,

the fees paid to the arbitrators and to the International Bureau.

CHAPTER V

FINAL PROVISIONS

ARTICLE V.1

Amendments

The Joint Committee may adopt, by decision, amendments to this Protocol.

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