Swiss customs conflict: progress in the negotiating mandate with the USA!

Swiss customs conflict: progress in the negotiating mandate with the USA!

In recent weeks, talks between Switzerland and the USA regarding the customs conflicts have gained momentum. According to NZZ The Swiss government has approved a draft negotiating mandate, which will now be forwarded to the foreign policy commissions of the parliamentary chambers and the cantons for consultation. Key issues to be addressed in the talks include agricultural tariffs, particularly on citrus fruits, nuts and seafood. However, political sensitivity surrounds cuts in beef and grain, which have not been addressed in current negotiations.

The developments came to light against the background of the US government's recent tariff increases for Swiss goods exports, which range between 31 and 32 percent. In comparison, the tariffs for other trading partners, such as the EU at 20 percent and Japan at 24 percent, are significantly lower. A group of experts has already predicted that these tariffs could increase the likelihood of a weaker economic development, while the Federal Council plans to clear up misunderstandings with the US authorities and find solutions, according to kmu.admin.ch emerges.

Swiss interests in focus

As part of the negotiations, the import of “hormone meat” from the USA under certain conditions will also be discussed. It is emphasized that the current legal framework must be respected and that possible changes to the law must ultimately be decided by Parliament. There are also discussions about a moratorium on genetically modified plants, which expires in 2025.

In addition to agricultural issues, areas such as market access for medical devices and investments in the USA are also on the agenda. Swiss investments could amount to around $150 billion over the next five years. Cooperation in vocational training and tax issues also play an important role, particularly with regard to the double taxation agreement and the global minimum tax.

Economic framework conditions

In view of the customs situation and the potential impact on the Swiss economy, the Federal Council has commissioned the State Secretariat for Economic Affairs (SECO) to analyze the consequences of the tariffs and propose appropriate measures. Companies are advised to contact the US authorities directly for information, while S-GE's ExportHelp program is available to support Swiss export companies.

The USA remains Switzerland's second most important trading partner after the EU. Dynamic trade in goods and services characterizes bilateral relations, which are characterized by a relatively balanced trade balance. All industrial tariffs were eliminated by Switzerland on January 1, 2024, meaning 99 percent of goods from the US are duty-free. In this context, the Federal Council emphasizes that it wants to preserve bilateral economic relations and is consistently committed to open markets and stable framework conditions.

Current developments underline the complexity of trade relations between Switzerland and the USA and the challenges that must be overcome on both an economic and political level.