Liechtenstein–United Kingdom relations explained

Mission1:Embassy of the United Kingdom, Bern
Mission2:Embassy of Switzerland, London
Filetype:svg

Foreign relations between the United Kingdom and it's predecessors with Liechtenstein date back to World War I. Both countries established diplomatic relations in May 1992.[1] Since then, the relations between the two countries have been stable.

The United Kingdom does not have an embassy in Liechtenstein, but the British ambassador to Switzerland, located in Bern, is also accredited to Liechtenstein. Similarly, the Swiss embassy in London also represents Liechtenstein.

History

Diplomatic relations between the United Kingdom and Liechtenstein date back to World War I. The United Kingdom sided with the Entente countries during throughout the war.[2] Though Liechtenstein remained neutral throughout the conflict, it retained close ties to Austria-Hungary and was sympathetic to the Central Powers.[3] At the outbreak of the war, the United Kingdom interned Liechtensteiners and partially confiscated their assets. From 1916, Liechtenstein was embargoed by the Entente countries until the end of the war.[4]

Liechtenstein applied to join the League of Nations in 1920, though this was rejected by the League of Nations Assembly on 17 December 1920, of which the United Kingdom was a member, by a vote of 28 against and 1 in favour.[5] During World War II, Liechtenstein remained neutral, and its neutrality was not violated by any of the combatants. The United Kingdom had been on the side of the Allies since 1939. Though this neutrality was respected by the United Kingdom throughout the war, Liechtensteiner organizations such as Marxer & Partner Rechtsanwälte were embargoed from 1943 due to its cooperation with individuals associated with the war industry of Nazi Germany.[6] During the 2008 Liechtenstein tax affair, it was revealed that secret bank information had also been sold to British tax authorities, which led to 100 British citizens being investigated for tax evasion.[7] Liechtenstein reached an agreement with the United Kingdom in 2009 that will allow the about 5,000 British customers of Liechtenstein's banks that hold for them about £2-3 billion in secret accounts to come clear with British tax authorities under terms of a significantly reduced penalty.[8]

Both countries were members of the European Economic Area until the United Kingdom's departure on 31 January 2020.[9] [10] On 8 July 2021, Liechtenstein and the United Kingdom signed a free trade agreement in conjunction with members of the European Free Trade Association.[11] [12]

Notes and References

  1. Book: The Diplomatic Service List . Great Britain. Diplomatic Service Administration Office . 1997 . 127.
  2. Book: Hamilton, K.A. . British Foreign Policy Under Sir Edward Grey . Cambridge University Press . 1977 . 978-0-521-21347-9 . Hinsley . F.H. . 324 . Great Britain and France, 1911–1914 . https://books.google.com/books?id=VJ08AAAAIAAJ&pg=PA324.
  3. Web site: Quaderer . Rupert . Rupert Quaderer . 31 December 2011 . Erster Weltkrieg . 28 September 2023 . . de.
  4. Web site: Marxer . Roland . 31 December 2011 . Neutralität . 28 September 2023 . . de.
  5. Web site: Biland . Susanna . 31 December 2011 . Völkerbund . 25 October 2023 . . de.
  6. Web site: Merki . Christoph Maria . 31 December 2011 . Marxer, Ludwig (1897–1962) . 30 May 2023 . . de.
  7. News: Watts . Robert . Matthew Campbell . Nicola Smith . 2008-02-24 . Revenue men prise open princely tax haven, Liechtenstein . 2008-02-24 . The Sunday Times (Timesonline) . London.
  8. Simonian H . August 12, 2009 . Liechtenstein in talks with Germany on transparency . Financial Times.
  9. Web site: 19 August 2016 . AGREEMENT ON THE EUROPEAN ECONOMIC AREA . live . https://web.archive.org/web/20190327112012/https://www.efta.int/sites/default/files/documents/legal-texts/eea/the-eea-agreement/Main%20Text%20of%20the%20Agreement/EEAagreement.pdf . 27 March 2019 . 7 May 2017 . European Free Trade Association.
  10. Web site: Frequently asked questions on EFTA, the EEA, EFTA membership and Brexit . live . https://web.archive.org/web/20201227192910/https://www.efta.int/About-EFTA/Frequently-asked-questions-EFTA-EEA-EFTA-membership-and-Brexit-328676 . 27 December 2020 . 2 February 2020 . EFTA.
  11. News: 8 July 2021 . EEA EFTA States sign a free trade agreement with the UK . 19 March 2024 . EFTA.
  12. News: Saker-Clark . Henry . 8 July 2021 . UK post-Brexit trade deal with Norway, Iceland and Liechtenstein finalised . 30 March 2024 . The Independent.