The Swiss Federal Councillor for Economic Affairs, Guy Parmelin, has defended the recently agreed upon framework for trade and tariff reductions with the United States, stating that Switzerland has not made a “deal with the devil.” Parmelin refuted criticism suggesting the agreement amounted to a capitulation in the face of trade pressures from the US.
In an interview, Parmelin stated he was “satisfied” with the agreement, emphasizing that Swiss companies had been considering expanding production in the United States even before the current trade climate.
The non-binding framework agreement, announced recently, outlines a reduction in US tariffs on imports from Switzerland to 1.5 percent, down from 3.9 percent. This is in exchange for approximately $200 billion in investments from Swiss companies into the US economy.
Swiss industry groups have largely welcomed the agreement, viewing it as leveling the playing field for Swiss companies, bringing them on par with their counterparts in the European Union following a similar accord between Brussels and Washington. Switzerland hopes the reduced tariffs will be implemented swiftly.
While the current agreement is non-binding and further negotiations are expected, the final agreement will require approval from the Swiss parliament. There is also the possibility of a public referendum on the matter.
As part of the framework, Switzerland has agreed to reduce its import duties on a range of American products across both agricultural and industrial sectors. This agreement marks a significant step in trade relations between Switzerland and the United States.
