Is the big customs agreement coming? Parmelin in Washington - what you need to know now
A possible customs agreement with the USA could give the Swiss export industry a considerable boost. The most important questions and answers about the potential deal.
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- Guy Parmelin is in Washington D.C. negotiating a possible customs agreement with the US Trade Representative.
- The US punitive tariffs on Swiss imports could fall from 39 to 15 percent, which would help the watch and machine industry in particular.
- However, it is not known exactly what the deal would look like.
Economics Minister Guy Parmelin and State Secretary Helene Budliger arrived in Washington D.C. on Thursday morning. Parmelin intends to meet US Trade Representative Jamieson Greer there for talks. The most important questions and answers:
What could the deal look like?
We probably don't know exactly. However, one agreement apparently envisages a significant reduction in the current US punitive tariffs on Swiss imports, from the current 39 percent to around 15 percent. This new tariff level would therefore correspond to that which also applies to the EU.
The Swiss customs delegation with Economics Minister Guy Parmelin will meet with the US administration in Washington this afternoon (East Coast time) for talks. These are taking place "at various levels", said a spokesperson at the request of Keystone-SDA.
What would a deal mean for Switzerland?
A customs deal with the USA would above all mean significant relief for Switzerland's export-oriented economy. Tariffs of 15 percent would put Switzerland on an equal footing with the EU in terms of customs duties - and contain the economic damage.
The Swiss watch and machine industry in particular could breathe a sigh of relief thanks to a customs agreement. The US market is of central importance to them.
Because an agreement is expected soon, the shares of luxury goods companies - such as Richemont and Swatch - have risen in value in recent days.
Many Swiss SMEs, which mainly supply American companies with their niche products, could also benefit from such an agreement.
What has Switzerland offered the USA?
It remains unclear what Switzerland has offered the USA in return for a reduction in punitive tariffs. Leaked - but so far unconfirmed - are possible concessions on market access for certain agricultural products, the purchase of liquefied natural gas or even defense equipment. Investment commitments from private companies are also said to play a role.
It is also conceivable that Switzerland will be prepared to allow the import of so-called chlorinated chickens. To date, the import of US chickens that are treated in a chlorine bath after slaughter has been banned in Switzerland.
Last weekend, a new demand from America also became known: according to media reports, Washington is pushing for Switzerland to join the US sanctions regime in future - a request that has met with resistance from left to right in Swiss politics.
Why should Trump give in?
Anyone who has been following Trump knows that his opinion can change quickly. Nevertheless, it is sometimes worth going on the charm offensive with him. This is exactly what several prominent representatives of the Swiss economy did last week.
On Tuesday evening, Rolex boss Jean-Frédéric Dufour, who is said to have a very good relationship with Trump, met with the US President. He is even said to have presented him with an exclusive Rolex "desk clock".
And indeed: the US President spoke publicly about the agreement. After a telephone call with US Trade Representative Jamieson Greer, Economics Minister Guy Parmelin spoke of "very constructive talks".