(GENEVA) - The Swiss government on Friday said it will negotiate a free-trade agreement on agricultural products and food with the European Union in a bid to increase competition in the sector.

No timeline has been set for opening discussions with Brussels.

A free-trade agreement would allow the elimination of both tariff and non-tariff barriers, the government said in a statement.

"This opening up of the markets is expected to lower consumer prices and create growth estimated in billions of Swiss francs (dollars).

"Swiss farmers will become more competitive on international markets as a result of lower production costs and better market access," the statement said.

It said, however, that free trade would have to be introduced on "a step-by-step basis together with accompanying support measures to provide a buffer against the impact of this market restructuring".

The Swiss agricultural industry is protected by some of the highest tariffs in the world, reaching an average of 44 percent against 15 percent in the EU.

The most protected sector -- milk products -- benefits from tariffs reaching some 160 percent, against 54 percent in the EU.

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