Parliamentarians see Swiss competitive advantage in Japan at risk

A free trade agreement between the EU and Japan comes into force on February 1. Switzerland also has a free trade agreement with the Land of the Rising Sun. According to Martin Herb, President of the Swiss-Japanese Chamber of Commerce, however, there is an urgent need for action: "Because Switzerland and Japan have still not been able to agree on updating the soon-to-be 10-year-old bilateral free trade agreement of 2009, Swiss companies will now lose competitive advantages in Japan. Swiss companies will be at a disadvantage in the Japanese market compared to competitors from the EU as of February 2019."

Using Davos as an opportunity for Switzerland

National Councilor Elisabeth Schneider-Schneiter, President of the Switzerland-Japan Parliamentary Group, now demands in a communiqué published on January 21: "The Federal Council must use Japan's high-level presence at this year's WEF in Davos to obtain concrete commitments from Prime Minister Shinzo Abe for at least equivalent market access for Swiss companies in Japan. It cannot be that Japan treats Switzerland worse than the EU." As early as December 2017, National Councillor Schneider-Schneiter had pointed out this impending discrimination against Swiss companies in an interpellation in the National Council and repeatedly demanded (2017, 2018) that the Federal Council renew the 2009 free trade agreement (JSFTEPA). But so far there have been no results, the former competitive advantage has been given up without a fight. "Competition from the EU has definitely overtaken Switzerland in Japan"The media release states soberly.

Parliamentarians demand: Consider joining the CPTPP

National Councillor Schneider-Schneiter welcomes the fact that the Federal Council is now also considering joining the Japan-led Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) multilateral free trade agreement, as stated in the foreign trade report of January 16. CPTPP has only been in force since December 30, 2018, and in addition to Japan includes 10 other countries (Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam), with further accessions such as those of the United Kingdom (UK) under consideration. Consequently, there is no lack of options for the Federal Council to lobby for equal market access for Switzerland in Japan. It is high time to finally address these options and discuss them with Japan at the highest level.

Source and further information: www.sjcc.ch