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.
SRF Tagesschau: Switzerland fears disadvantages from TTIP
Swiss trade will have to adopt what the EU and the US negotiate among themselves, he said.
An export decline of 12 to 15 percent is expected, said Kaspar Engeli, Director of Trade Switzerland, at a press briefing in Zurich on March 9. This is because two-thirds of Swiss foreign trade takes place in the TTIP area.
According to studies, Trade Switzerland 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, Handel Schweiz calculates seven percent less income for individual citizens.
That's roughly equivalent to the 13th month's pay, Engeli said.
Smaller farms concerned
Accordingly, Handel Schweiz sees participation in TTIP as a great opportunity. Even if the actual agricultural agreement is still vaguely formulated with regard to fertilizer measures or food standards, farms could benefit, said the director of Swiss Trade. Today (40 percent U.S. tariff on dairy products), Swiss agricultural products such as yogurt are very expensive in the U.S. because of the high import duties.
Accordingly, they would only be sold 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 tariffs, a mutual TTIP agreement is likely to save around 2.4 percent of the tariffs. This would correspond to around CHF 50 million. In addition, non-tariff trade barriers in the research and development sector 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 Trade Switzerland, it's a matter of "getting fit to be able to implement the standards that have been negotiated." (mm)
