Swiss-EU Bilateral Procurement Agreement

Switzerland is one of Europe's most significant public procurement markets, yet it sits outside the European Economic Area. After Swiss voters rejected EEA membership in a 1992 referendum, Switzerland and the EU negotiated a series of bilateral sectoral agreements to preserve close economic ties. The agreement on certain aspects of government procurement, part of the first package of Bilateral Agreements I concluded in 1999 and entering into force in 2002, is the instrument that governs procurement market access between Switzerland and the EU.

What is the Swiss-EU Bilateral Procurement Agreement?

The bilateral procurement agreement aligns Swiss public procurement rules with EU standards and creates reciprocal market access obligations above defined financial thresholds. Its core elements are:

Covered entities and thresholds. The agreement applies to procurement by federal authorities, cantonal authorities, and certain public enterprises operating in the utilities sectors (water, energy, transport). The financial thresholds are set at levels that mirror the EU directive thresholds, adjusted periodically to remain aligned.

Non-discrimination. Swiss contracting authorities must treat EU suppliers no less favourably than Swiss suppliers for contracts covered by the agreement. EU contracting authorities must equally treat Swiss suppliers without discrimination. Technical specifications, selection criteria, and award procedures must not be designed to favour domestic suppliers.

Procedural requirements. The agreement requires publication of contract notices, minimum tender periods, transparent evaluation criteria, and access to a challenge mechanism for unsuccessful tenderers. The Swiss framework is implemented through the Federal Act on Public Procurement (BGÖB/LMP), which was substantially revised in 2020 to modernise the rules and align them more closely with EU practice.

Relationship to the WTO GPA. Both Switzerland and the EU are signatories to the WTO Government Procurement Agreement. The bilateral agreement goes beyond GPA coverage in some respects, particularly for sub-central (cantonal) entities, but the two instruments overlap for central government contracts. Suppliers can rely on whichever instrument provides broader access for a given contract.

The bilateral agreement relationship has been complicated by the failure to conclude an overarching Swiss-EU Framework Agreement (withdrawn in 2021), which was intended to create a governance mechanism for updating the bilateral agreements as EU law evolves. The procurement agreement itself remains in force, but its dynamic alignment with evolving EU law is subject to political agreement rather than automatic incorporation as in the EEA.

Why it matters for bidders

For EU suppliers, Switzerland represents a substantial market that is legally accessible on a non-discriminatory basis for above-threshold contracts. Swiss federal IT, infrastructure, and professional services contracts in particular attract cross-border interest. The mutual recognition of qualifications principle applies in a modified form: EU certificates are generally accepted as equivalent, but Switzerland retains the right to require specific Swiss authorisations in regulated sectors.

For Swiss suppliers, the agreement provides access to above-threshold EU contracts under conditions broadly comparable to those enjoyed by EFTA states through the EEA. In practice, Swiss firms regularly bid for major EU infrastructure and technical services contracts.

Example

An EU-based civil engineering consultancy identifies a contract published by the Swiss Federal Roads Office (ASTRA) for a tunnelling feasibility study. Because the contract is above the threshold covered by the bilateral agreement, the EU firm has a legal right to participate on equal terms with Swiss firms. It submits its EU-issued professional indemnity insurance certificate, and the Swiss authority is obliged to assess it for equivalence rather than requiring a Swiss-specific policy.

Frequently Asked Questions

Do cantonal contracts fall within the bilateral agreement?

Yes, cantonal authorities are included in the scope of the Swiss-EU agreement for above-threshold contracts, which distinguishes the bilateral framework from the narrower WTO GPA coverage. However, individual canton-level procurement portals may be less familiar than the federal SIMAP system, where most above-threshold Swiss contracts are advertised.

Does Brexit affect Swiss-EU bilateral procurement access?

No, directly. The Swiss-EU bilateral agreement is between Switzerland and the EU as an institution. The UK's departure from the EU removed UK suppliers from the benefit of the bilateral agreement. UK suppliers accessing Swiss contracts now do so through the WTO GPA rather than the bilateral agreement framework.

Where are Swiss public contracts advertised?

Swiss federal and cantonal above-threshold contracts covered by the bilateral agreement are published on the SIMAP platform (simap.ch), which is Switzerland's equivalent to TED. Some notices are also published in the official gazettes of the relevant cantonal authorities.