Electrical Equipment / Components & Telecoms

According to a recent report by Swiss National Radio and Television, after the failure of the negotiation of the Swiss-Europe Framework Agreement, Swiss political and economic circles, especially representatives of the Swiss electromechanical metal industry, are thinking about a question, that is, how will the Swiss-Europe relationship further develop?

For the Swiss electromechanical metal industry, the Swiss-Europe Framework Agreement is extremely important. The failure of the negotiation of the Swiss-Europe Framework Agreement has mainly affected the industry in the following two aspects:

First, if tariffs are reintroduced between Switzerland and Europe, Swiss products will become more expensive. Due to production costs, Swiss products have certain disadvantages when competing with EU products. If the impact of tariffs is added, the competitive disadvantage of Swiss products will become more obvious. Second, the mutual recognition of Ruiou products and scientific research cooperation between Ruiou will face difficulties.

Four-fifths of the Swiss electromechanical metal industry's products are sold abroad. Every day, the trade volume between the Swiss electromechanical metal industry and the EU is as high as 1 billion Swiss francs. If the aforementioned cross-border trade between Switzerland and Europe becomes difficult, then the whole of Switzerland will also be affected.

Hilzel, chairman of the Swiss Association of Mechanical and Electrical Metals, even said that if Swiss products can no longer enter the EU market without restrictions, then from today onwards, investors will be extremely cautious in reviewing investment in Switzerland.

In this regard, Swiss Federal Councillor and Minister of Economy Palmerin said that Switzerland certainly hopes to maintain good relations with the European Union. There are more than 100 well-executed bilateral agreements between Switzerland and Europe. The Swiss Federal Council’s intention is to maintain good relations with the European Union and, if possible, to further deepen relations with the European Union. But Palmerin also emphasized that the Swiss Federal Council must consider it all. Although the Swiss electromechanical metal industry is important, the Swiss Federal Council cannot only consider opinions in one area.

In addition, the Swiss electromechanical metal industry also believes that the industry cannot only focus on the EU market. Switzerland has other options, and negotiations on free trade agreements between Switzerland and India, the Mercosur countries, and the United States are also crucial.