To cope with the rate of 39% applied to the essentials of Swiss exports to the United States, Economiesuisse requires a train of measures to strengthen the Swiss economic place.
Economic circles are calling for it on Thursday at the Federal Council to continue negotiations with the United States on the thorny file of American customs duties, on the empty-handed return of Washington of the president of the Confederation Karin Keller-Sutter and the federal adviser in charge of the economy Guy Parmelin.
To cope with the rate of 39% now applied to the essentials of Swiss exports to the country of Uncle Sam, Economiesuisse also demands a train of measures to strengthen the Swiss economic place.
“They (customs duties, editor’s note) strongly weaken the international competitiveness of our businesses on the American market, compromise long -standing trade relations and have seriously endanger thousands of jobs,” is alarmed by the Federation of Swiss Businesses.
The tapestness of the SWISSMEM technological industry, for its part, evokes a “de facto agony” sector in the event of maintaining the rate of punitive taxation at the entrance to the United States, “especially in view of the customs duties much lower for competition from the EU and Japan”.
The organization takes the opportunity to publish a list in ten points of proposals aimed at improving the framework conditions for the entire export industry, between extension of partial unemployment, incentives for innovation, ceiling on wage costs, relaxation of climatic requirements or even softening the law on the export of war materials.
Government clear action
For its part, Swissmechanic, the scheme of small and medium -sized enterprises (SMEs) in the machinery, electrical equipment and metallurgy (MEM), expressed its concern to the AWP agency. “Our members are faced with new and enormous commercial barriers that compromise their competitiveness and weigh on important market shares in the United States,” said the president of the association Nicola Tettamanti, while calling the Federal Council to “a clear, consistent and visible action at international level”.
“We expect in particular from Switzerland that it quickly pursues dialogue with the United States and initiates constructive negotiations in order to find a viable solution. The objective must be to reduce customs duties as soon as possible or to create appropriate compensation mechanisms, ”he explains.
According to Tettamant, some companies are already studying other outlets, others of possible production relocations. “Anyway, the pressure is strong,” concludes the president of Swissmechanic.
Metal.suisse, the scheme of metal construction, also believes that the Federal Council must continue negotiations with the United States government. “Our economic model and thousands of jobs are seriously threatened,” said the association in a statement. Metal.suisse demands “large -scale” measures to relieve Swiss industry, such as quick access and without partial unemployment formalities as well as a drop in energy prices.
Keep calm
The Federation of the Swiss watch industry (FH) intends to keep a cool head and carefully examine the next steps. “As our export statistics show, many players in the sector have increased their deliveries in the United States between March and April, so that, in many cases, the products are currently available in sufficient quantity on site,” the president of FH Yves Bugmann told AWP. According to him, if the rate of 39% remains in force, watchmaking companies will have to consider price adjustments.
The Latin Commerce and Industry Chambers (CLCI) are of the opinion that first temporary measures such as reductions in the work schedule would make it possible to amortize the customs shock. “Directly or indirectly, all sectors will undergo heavy negative consequences that can go as far as significant layoffs,” the CLCIs, which are also claiming a reduction in taxation and bureaucracy for businesses in a press release.
Considering essential the continuation of negotiations with Washington, Interpharma believes that “all sectors must unite their forces and support the government so that Switzerland can find a viable solution to the customs conflict”, observes the association of Swiss pharmaceutical companies practicing research.
If pharmaceutical products are currently exempt from customs duties, a level comparable to that striking other Swiss goods would cause a sharp drop in the gross domestic product (GDP) in Switzerland, at least 0.7%, estimates the association by referring to the calculations of the KOF cyclical research center in EPFZ.
Regardless of customs discussions with Switzerland, the US administration has directly contacted 17 pharmaceutical companies and asked them to offer the United States comparable prices to those practiced in other countries with similar economic power, continues Interpharma. This request should not be confused with customs discussions.