Key issues in Liechtenstein foreign policy Foreign economic policy Within foreign policy, foreign economic policy is gaining in importance. The priority goal of foreign economic and trade policy is to create the most favourable possible framework conditions for the international business relations of economic operators. Foreign economic policy is there­fore an important instrument of Liechtenstein’s business location policy. Securing and improving access to foreign markets is, however, only one component of the framework con­ ditions of the Liechtenstein business location, albeit an essential one. Also especially important for market access and the attractiveness of the business location are double taxation agreements and tax information exchange agreements (TIEAs). Liechtenstein’s foreign economic policy and the implementation thereof are based on Liechtenstein’s memberships in the EEA, WTO and EFTA as well as the Customs Treaty with Switzerland. For the cross-border trade in goods and agricultural products beyond the EEA region (and for agricultural products also within the EEA), the Customs Treaty continues to represent the governing legal foundation. Switzerland therefore has the negotiating competence for WTO and EFTA agreements in this regard. However, the Permanent Mission in Geneva does contribute the specific interests and needs of Liechtenstein’s export industry to the negotiations. Liechtenstein autonomously negotiates other areas of the WTO and EFTA agreements such as the trade in services and rules governing investments or public procurement. These areas are special in that every member, including Liechtenstein, negotiates commitments specific to the country, but enjoys all commitments assumed and all trade liberalisations thanks to The priority goal the most favoured nation principle. The most favoured nation principle is an asset for a small country like Liechtenstein. Also in regard to services, with a focus on finan- is to create favourable framework conditions cial services, the Permanent Mission in Geneva identifies the needs of the affected economic sectors. for the international Among WTO topics, the focus is on negotiations within the framework of the on- business relations. going world trade round; with regard to EFTA, the focus is on free trade negotiations. The EFTA states aim to find multilateral, globally valid solutions within the framework of the WTO negotiations, but in parallel they conclude bilateral and regional free trade agreements. One of the challenges in this regard is that the new partner states are frequently faraway countries with different development levels and diverse economic or trading traditions. This results in more cost-intensive and also time-consuming and longer negotiations. Liechtenstein attaches great importance to the EFTA free trade agreements. Liechtenstein’s involvement in this regard is accordingly substantial. In the second half of 2009 and the first half of 2011, Liechtenstein chaired EFTA and organised the spring EFTA ministerial meeting in June 2011 in Schaan. Chairing EFTA entails numerous additional obligations and events. Liechtenstein also chairs various meetings with partner states and occasionally also negotiations. | 55