February 26, 2002	Tuesday	Zilhaj 13, 1422

BERN, Feb 25: Switzerland and the EU have postponed a new round of talks to hammer out an accord on combating customs fraud to allow more time to try to narrow their differences, the Swiss finance ministry said on Monday.

Negotiations that should have resumed in Bern on Tuesday will now be put back until March 15 to enable delegates time to obtain “the necessary technical and legal clarifications”, a statement said.

The 15-nation European Union has been demanding that Switzerland take measures to combat tax evasion and customs fraud in the EU, notably by tightening Swiss banking secrecy laws, a move resisted by the Swiss.

Sources close to the talks said it would come down to whether the EU was prepared to conclude an agreement with Switzerland that does not mirror the legislation and rules laid down in the EU, but would instead allow the Swiss to apply certain special rules.

“In the area of fighting fraud, Switzerland and the EU have the common goal of finding an efficient and feasible agreement soon,” the statement said.

“In the course of negotiations which have taken place so far differences have remained in the area of the scope of application,” it said.

The delay was requested by the EU.

The talks on customs fraud are part of negotiations on a second package of bilateral agreements between Switzerland and the EU, which began last year.

The first raft covered areas such as air and road transport and the free movement of people. Those agreements, which took about six years to negotiate, are due to take effect this year.

Switzerland is not an EU member and Swiss voters rejected last year moves to start membership negotiations.—AFP