Glimmer of hope: Swissmem welcomes the free trade agreement with Mercosur

Under the agreement, around 95% of export products to Mercosur countries would be exempted from the currently valid tariffs amounting to between 10-16% on average (with a maximum of up to 35%), either immediately or over a period of four to 15 years. Swiss SMEs without a base in Latin America would thus stand an excellent chance of selling more from Switzerland and thus securing Swiss-based jobs. The agreement is a major win for the economy as a whole.

Mercosur – a promising market

Trade between Switzerland and the Mercosur countries is already a key component of the Swiss economy. Despite high tariffs, the Swiss tech industry exported products worth CHF 530 million in 2024 to this region. The lion's share is accounted for by machinery with a percentage of 49%. Imports from Mercosur countries comprise mainly agricultural products such as meat and soya, which make up most of the imports. These figures show the potential for bilateral trade, which is stimulated by the elimination of high customs barriers.

Strengthening the competitive capacity of Swiss companies

By concluding the agreement, Switzerland has taken a major step towards safeguarding its competitiveness versus the EU. At the end of last year already, the EU concluded a FTA with the Mercosur countries – but the political process is bogged down. Now, Switzerland has a chance to overtake the EU competition on the home stretch. As soon as the EU implements its FTA with Mercosur, Switzerland would be at a competitive disadvantage without an equivalent agreement. Swissmem is therefore calling on politicians to unite behind this agreement and to approve it as quickly as they did the one with India. A referendum would be an insult to the industrial SMEs that are fighting a tough battle – and to the 330,000 employees in the sector.

Free trade, sustainability and Swiss technology

The FTA also entails important progress in terms of sustainability. It includes a comprehensive and legally binding section on trade and sustainable development. This section includes provisions on environmental and social standards and is based on the UN Goals for Sustainable Development. Moreover, thanks to the FTA, innovative, high-quality technological Swiss products would be more affordable and more easily available to customers in Mercosur countries. Swiss companies could then make a significant contribution to better environmental and climate protection on a local basis with their innovative world-class products, e.g. in the fields of resource and energy efficiency.