Swiss government focuses on diversifying economic relations.
The increasing regionalization of global trade and the fragmentation of supply chains are putting Switzerland under pressure. It must now work on diversifying its economic relations and securing them with bilateral and multilateral agreements. This is according to the Foreign Trade Report 2025.
Geo-economic tensions and uncertainties in trade and economic relations are putting Switzerland under increasing pressure, according to the Foreign Trade Report 2025 which the Swiss government, the Federal Council, adopted on 14 January.
The report highlights the fundamental realignment of US trade and economic policy, while also referring to the general trend toward regionalization in world trade as well as value chain fragmentation. In this regard, 2025 is likely to “go down in history as a turning point in trade policy”, according to the report. Switzerland, as a medium-sized, open economy with limited natural resources and a small domestic market outside major trade blocs, reportedly faces particular challenges.
It must therefore diversify its economic relations and secure them bilaterally and multilaterally, the report continues. This includes the Bilaterals III package, with which Switzerland secures and further develops domestic companies' access to the EU single market. Another example is the government’s adoption of the free trade agreement between the European Free Trade Association (EFTA) and the South American trade bloc Mercosur, which was signed in 2025. However, Switzerland must also support the reform of the World Trade Organization (WTO) and strengthen its influence in organizations such as the Organization for Economic Cooperation and Development (OECD), writes the report.
Together with New Zealand, Singapore, and the United Arab Emirates, Switzerland has placed a particular emphasis here by founding the Future of Investment and Trade Partnership. Currently, 16 small and medium-sized countries with an international focus are working together to promote fair and rules-based trade.
According to the report, the State Secretariat for Economic Affairs (SECO) is to conduct an in-depth review of the existing foreign trade strategy. To this end, it is entering into dialogue with different contacts in parliament and in foreign trade.
Source: swisstrade
https://swisstrade.com/news