Transcript SwissPPTFinal - Canbek Economics

• Trade Research Report
Switzerland
• David Alonso
110152332
• Walter Durand 260103888
Switzerland
•
Official Name : Swiss Confederation
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Capital : Bern
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Area : 41,200 sq Km. (Water : 1,520 ; Land 39,770)
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Government type : Federal Republic
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Independence : 1 August 1291
Population
Age Structure
65 +
15%
Ethnics Group
0-14
17%
10% 1% 6%
German
French
Italian
18%
15-64
68%
65%
Romans ch
other
Population (continued)
Religions
Official Languages
none
9%
other
5%
Protestant
40%
1%
Roman
Catholic
46%
9%
German
8%
French
Italian
19%
63%
Romansch
other
Swiss political System
Federal Council
(executive branch)
7 members elected by
the Federal Assembly
Federal Assembly
(legislative branch)
246 members
National Council
(Elected by universal suffrage)
Council of States
(Chosen by the 26 Cantons)
Political trends
• President: Christoph Blocher
• The president is supported by the Swiss
People’s Party that won most seats in 2003.
• Agenda oriented towards drastic public
spending cuts, limitation of immigration,
and less political integration with Europe.
Key Ecomomic Data
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•
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GDP:
GDP per capita:
Inflation:
Unemployment:
GDP growth:
Public spending:
Public deficit:
Public debt:
$268 billion
$35,732
0.2%
4.1%
1.7%
51.6% of GDP
2.8% of GDP
57% of GDP
Economy
GDP Composition
Agriculture
2%
Services
64%
Industry
34%
Balance of Payments
Rankings
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•
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Switzerland
GDP
GDP/cap
Corruption
Human Development
• Competitiveness
20
2
8
11
8
Canada
9
14
11
4
15
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International Trade
Exports (main markets)
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•
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Germanny:
United States:
France:
Italy:
United Kingdom
• Canada:
• Mexico:
20.5%
11.7%
9.5%
8.1%
5.2%
1.1%
0.7%
Exports (products)
Imports (main suppliers)
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•
•
•
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Germany:
France:
Italy:
United States:
Netherlands:
• Canada:
• Mexico:
31.5%
10.3%
10.0%
6.2%
5.1%
0.3%
0.004%
Imports (products)
Foreign Direct Investment
FDI (inwards)
FDI (outwards)
Main Swiss Corporations
• Many Swiss corporations are involved in
FDI. Some of the main investors include:
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–
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UBS and Credit Suisse (banking)
Nestle (food)
Novartis and Ciba (pharmaceuticals)
ABB and Mettler Toledo (industrial equipment)
Adecco (human resources)
Relationship with Canada
• Relations between Canada and Switzerland are
considered excellent and without any significant
dispute.
• Both countries have shared interests in promoting
multilateral free trade agreements.
• Both countries are members of the Francophonie.
• Canada is home to the fifth largest Swiss expat
community.
Bilateral Trade
Swiss goods imported to Canada
Swiss francs
(million)
2000
1500
1000
500
0
1999
2000
2001
2002
2003
Year
Major imports : pharmaceuticals, machinery, chemicals, watches,
instruments/apparatus, agricultural products
Canada was Switzerland 19th export market
Switzerland was Canada 22st export market
Bilateral Trade (continued)
Canadian goods exported to switzerland
Swiss francs
(million)
800
600
400
200
0
1999
2000
2001
2002
2003
Year
Major exports : machinery, pharmaceuticals, agricultural products,
vehicles/aircrafts, paper/papergoods
Canada was Switzerland 19th export market
Switzerland was Canada 22st export market
Canadian Exports to
Switzerland
• Composition:
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Vehicles (including aircraft):
Machinery:
Agricultural Products:
Paper Products:
21%
18%
15%
14%
Swiss exports to Canada
• Composition:
– Pharmaceuticals:
– Machinery:
– Chemical Products:
40%
18%
16%
Main Corporations
• Canadian Companies
in Switzerland:
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Bombardier
Nortel Networks
Alcan
Nova Chemicals
• Swiss Companies in
Canada:
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Nestle
Novartis
Roche
ABB
Investments
Canadian Dollars
Direct investment : Canada vs. Switzerland
8000
7000
6000
5000
4000
3000
2000
1000
0
Canadian DI in
Switzerland
Switzerland DI in
Canada
1999
2000
2001
2002
2003
Year
• Switzerland held 6th rank among foreign investors in
Canada.(2003)
• Canada held 18 th rank among foreign investors in
Switzerland.(2003)
Main International
Organizations
• Switzerland is member of the EFTA:
free trade with Norway and Iceland.
• Switzerland is also actively involved in
G-10, the Paris Club and many international
banking and economical organizations.
• By contrast, Switzerland is not a member of
the European Union.
Trade and Economic Issues
• Within the WTO framework, Switzerland
filed a complaint against the American
Safeguard measures on steel (later removed)
• Minor trade issues with Slovakia, Australia,
and India on agricultural products.
• The Swiss financial system came into close
scrutiny by international regulators for its
bankinking secrecy laws.
Switzerland and the WTO
• In the current Doha round, Switzerland has welcomed
the decision to further liberalize the international
framework for non-agricultural market access (NAMA).
• Switzerland also advocates for reductions in trade
barriers on services.
• Switzerland wants a longer transitional period for
liberalizing agricultural trade.
• Switzerland regrets the failure to include new rules on
international investments and government transparency.
Trade Policy
• Consistent with its emphasis to develop trade with
Southeastern Europe and the Mediterranean
Bassin, Switzerland has signed free trade
agreements with Turkey, Israel, Romania,
Bulgaria, Macedonia, Croatia, Jordan, Lebanon,
Morocco, and the Palestinian Authority.
• Switzerland has an extensive set of trade
agreements with the European Union.
Trade Policy (continued)
• Switzerland has also signed free trade
agreements with Mexico, Chile, and
Singapore.
• Trade negociations are currently made with
Egypt, Tunisia, andthe SACU countries.
• Current talks are being held with Canada.
• Switzerland wants a predictable
international trade environment without
losing its political independence.
Advantages
• Switzerland has many competitive
advantages:
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Location in Central Europe
Excellent Infrastructures
Minimal trade barrier with the EU
High productivity and well educated workforce
Weaknesses
• Switzerland ’s main weaknesses are:
– High costs
– Heavy internal regulations
– Small internal market
Conclusion
• Switzerland has many competitive
advantages that make it an attractive place
to invest.
• It offers safety and potentially high returns
for investments in skill intensive activities.