Held under the title “Between powers and markets,” the 19th Swissmem Industry Day centred on how Switzerland, as a small country, can successfully hold its own in a world increasingly shaped by power politics. The contrast between “large and small” was also touched upon in relation to companies in the tech industry. The discussion addressed the question of where the advantages and disadvantages, the conflicts and the synergies lie in the interplay between start-ups, SMEs and large companies.
Remaining strong where others are too large and too slow
“The world has become tougher and more unpredictable,” said Swissmem Chairman Martin Hirzel in describing the new geopolitical realities. “Switzerland is not in a position to dictate rules to the major powers. It therefore has to be strong where others are too large, too slow or not precise enough.” For companies in the Swiss tech industry, this means identifying and mastering market niches. “While our companies already do this well today, this alone will no longer be sufficient in the future. We need to become more innovative, faster and indispensable for our customers,” Martin Hirzel emphasised.
However, all efforts by companies will be in vain if the necessary framework conditions are lacking. Policymakers must therefore increasingly focus on how to strengthen Switzerland’s competitiveness. In concrete terms, this means: no new burdens, less bureaucracy, new free trade agreements, stable relations with the EU, a strong vocational training system and the systematic promotion of innovation. “Placing an emphasis on this is not economic self-interest. In fact, the opposite is true. It provides the foundation for social security in Switzerland. After all, only if companies are successful can social insurance, national defence and the education system be sufficiently financed,” Hirzel emphasised.
Critical raw materials and open markets in focus
To hold its own in today’s environment, cooperation that extends beyond the major powers is an important instrument for Switzerland. This is particularly relevant in the area of raw materials, where states like China possess overwhelming market power. At the Industry Day, guests from the realms of business, politics and society witnessed the beginning of such a cooperation: Switzerland and Indonesia signed a memorandum of understanding that will facilitate Switzerland’s access to critical minerals and metals. In return, Switzerland has committed to promoting investment in Indonesia. This is of great importance to the tech industry, which relies on the availability of numerous raw materials.
The Industry Day was concluded with an appearance by the Director-General of the WTO Dr Ngozi Okonjo-Iweala. She emphasised that the WTO remains indispensable despite severe pressures. More than 70 percent of global trade continues to be conducted under WTO rules. For small states such as Switzerland, it is essential that the WTO and the multilateral system are strengthened, as this will prevent them from becoming playthings of power blocs. Supporting international agreements rather than having to accept laws imposed extraterritorially by major powers is the better path from Swissmem’s perspective.
Correcting the “no” to Mercosur
Given the new geopolitical realities, Switzerland must consistently commit to free trade agreements. “We call on all parties and associations to provide resolute support for the export industry,” said Swissmem Director Stefan Brupbacher. Unfortunately, the National Council has recently opted for the opposite course by voting “no” to the free trade agreement with the Mercosur states. “This is completely incomprehensible. The Council of States must correct this decision,” stressed Brupbacher. “The representatives of the agricultural sector should not forget that the export industry finances a considerable share of the CHF 2.7 billion in annual direct payments through its tax contributions. And the political left should recognise that the funding of social insurance and many other of its priorities would no longer be secured without a strong export industry. Furthermore, its calls for adopting the EU Regulation on Deforestation-free Products and the EU Forced Labour Regulation are misplaced.”
For further information please contact:
Noé Blancpain, Member of Management and Head of Communications & Public Affairs
Tel. +41 44 384 48 65 / mobile +41 78 748 61 63
E-mail n.blancpainnoSpam@swissmem.ch
Philippe Cordonier, Member of Management and Head of Swissmem Romandie
Tel. +41 44 384 42 30 / mobile +41 79 644 46 77
E-mail p.cordoniernoSpam@swissmem.ch