1. © economiesuisse,, Challenges for Switzerland‘s Foreign Trade Policy Gerold Bührer, Chairman 36th Annual General Meeting 2010 ARAB-SWISS CHAMBER OF COMMERCE AND INDUSTRY April 14, 2010

2. © economiesuisse,, Share of global economy – shifting towards Asia 0% 20% 40% 60% 80% 100% 91-9596-0001-0506-1011-1516-20 Africa Western Europe + Oceania North America Eastern Europe + Central Asia Asia + Middle East Latin America Source: GGDC, KOF 14.04.2010 page 1

3. © economiesuisse Shift of weight in the global economy: High-tech products ► Global market share for high-tech exports (2006, Eurostat): ─ China:16.9% (2000: less than 5%) ─ USA:16.8% ─ EU-27:15.0% ─ Japan: 8.0% ─ Others:42.3% (thereof Switzerland with 1.9%) ► In 2006 China surpassed the EU-27 and the USA 14.04.2010 page 2

4. © economiesuisse14.04.2010 page 3 Shift of weight in the global eonomy: Automobile manufacturing

5. © economiesuisse Shift of weight in the global eonomy: Natural sciences ► China has become export world champion in 2009 ► Education in natural sciences and engineering (graduates per year): ─ India:690,000 ─ China:530,000 ─ Japan:350,000 ─ EU:470,000 ─ USA:420,000 14.04.2010 page 4

6. © economiesuisse Relations Switzerland – EU Close economic ties Trade in goods: –EU → CH: 152 billion (81.2%) imports –CH → EU: 128 billion (62%) exports Direct investments: –EU → CH: 272 billion (71.6%) –CH → EU: 292 billion (39.4%) Jobs: –EU → CH: 0,19 billion, i.e. 191,000 –CH → EU: 1.0 billion 14.04.2010page 5

7. © economiesuisse 1. Strong economic ties with the EU 2. 300,000 new jobs since 2004 3. No.10 among foreign investors worldwide 4. Among Top 3 in research and innovation 5. Attractive tax environment 6. Low public debt Switzerland No. 1 on WEF Global Competitive Index 2009 Switzerland – strong foundations 14.04.2010 page 6

8. © economiesuisse 1. Flexible, market oriented economy 2. Globalised economy 3. Ideal mix of global players and strong small businesses 4. Ideal mix of industrial, financial, and services sector 5. Cooperation of politics, business, and social partners Switzerland – strong soft factors 14.04.2010 page 7

9. © economiesuisse Hexagon of growth High innovation Secure energy supply Attractive tax environment Flexible labour market Strong competitive environment Open markets Growth 14.04.2010 page 8

10. © economiesuisse Key issues for foreign trade policy Foreign trade policy Innovation Measures 14.04.2010 page 9

11. © economiesuisse Global orientation of the Swiss economy WTO logjam increases importance of free trade agreements 20 agreements in effect so far Further dismantling of trade/investment barriers for countries outside of Europe 14.04.2010 page 10

12. © economiesuisse Foreign economy: Strategic growth pillar EU / Bilateral Agreements Free Trade Agreements WTO 14.04.2010 page 11

13. © economiesuisse14.04.2010 page 12 Swiss Free Trade Agreements FTA in effect or undersigned FTA in negotiation phase Negotiations in preparation / Feasibility study

14. © economiesuisse Innovation and exports Facts R&D of Swiss businesses outside of Switzerland (2008): CHF 15.8 billion (+ 64% since 2004), in Switzerland CHF 12 billion 2/3 of Swiss research is privately financed Industries: 1. Pharma 38% 2. Engineering 12% 3. ICT-manufacturing 9% 14.04.2010 page 13

15. © economiesuisse Innovation and exports Facts approx. 60% of private R&D expenses are attributable to 5 of the leading Swiss companies Global export share of high-tech goods is increasing (5% p.a. between 2001 and 2006) Conclusion: High-tech competence is vital for Switzerland as an exporting country of high-quality goods and services 14.04.2010 page 14

16. © economiesuisse Strengthening our innovation potential Despite leading positions: Need for action Innovation promotion: ─ greater emphasis on natural sciences ─ more attractive tax environment for R&D Further expansion of technology transfer Immediate measures: ─ Higher contingent for non-EU/EEA specialists ─ repatriation of top Swiss scientists working abroad 15.04.2010 page 15

17. © economiesuisse Measures – promotion of exports Starting position: No industrial policy! Lead: Seco, implementation carried out by OSEC and chambers of commerce Expand cooperation with experienced business people and chambers of commerce (subsidiarity) 15.04.2010 page 16

18. © economiesuisse Swissness – innovation and tradition 19.01.2010 page 17