Trade Switzerland warns against special role for Switzerland
High tariffs, falling exports, rising prices, pressure on gross domestic product: if Switzerland stands on the sidelines of the free trade agreement between the EU and the USA (TTIP, Trans-Pacific Partnership), this will have serious consequences, according to the Swiss Trade Association.
Swiss trade will have to adopt what the EU and the USA negotiate among themselves.
Exports are expected to fall by 12 to 15 percent, said Kaspar Engeli, Director of Swiss Trade, at a press conference in Zurich on 9 March. This is because two thirds of Swiss foreign trade takes place in the TTIP area.
According to studies, Swiss trade expects import and consumption prices to rise if Switzerland were to withdraw from the free trade agreement. This would directly affect the individual citizen. Taking all direct and indirect effects together, Swiss trade expects seven percent less income for individual citizens.
That's roughly equivalent to the 13th month's pay, Engeli said.
Smaller farms concerned
Accordingly, Switzerland sees participation in TTIP as a great opportunity. Even if the actual agricultural agreement is still vaguely formulated with regard to fertiliser measures or food standards, farms could benefit, said the director of Swiss Trade. Today (40 percent US tariff on dairy products), Swiss agricultural products such as yoghurt are very expensive in the USA because of the high import duties.
Accordingly, they would be sold only in a premium segment.
With a free trade agreement, Swiss agricultural products would be affordable for a much larger audience. Nevertheless, smaller commercial and farming enterprises also show concern about internationally "imposed" working conditions and the domestic sustainability market.
Medical technology sees advantages
Swiss implants and prostheses are already export hits. In 2015, the medical sector exported CHF 2 billion worth of measuring devices and technology such as hearing aids. Although some industry participants already have very low or abolished customs duties, a reciprocal TTIP agreement could still save around 2.4 percent of customs duties. This would correspond to around CHF 50 million. In addition, non-tariff trade barriers in the area of research and development would also be eliminated.
Generally speaking, however, Swiss trade will have to adopt what the EU and the US negotiate among themselves. Now, says Jean-Marc Probst, President of Swiss Trade, "it's a matter of getting in shape to be able to implement the negotiated standards." (mm)
