Search

The third objective of Switzerland's foreign economic policy is the integration of developing countries and countries with economies in transition into the global economy. Through economic cooperation for development (whether bilateral or multilateral), Switzerland is trying to help its partners to reorganize their national framework conditions with a view to closer integration into the global economy and sustainableeconomic growth. Fostering trade, developing the private sector, stronger economic and financial policies, developing infrastructure and supply systems in cities, together with measures to protect the climate and the environment , must assist in reducing poverty and economic and social disparities in the long term and boost the rational use of resources in partner countries. The "Aid for Trade" initiative launched in December 2005 at the Sixth Ministerial Conference of the WTO in Hong Kong, China, is one example of implementation of such development cooperation. As part of this initiative, Switzerland has in particular made a stronger commitment to boosting sustainable trade.

Switzerland recognizes the importance of consistency between its trade and development policies, and this influences both its position in negotiations on trade agreements and its trade-related cooperation programme. To achieve this, Switzerland has strengthened and better targeted its trade-related cooperation, broadening it to include sanitary and phytosanitary measures and other emerging issues such as competition, the award of contracts or technical requirements and standards. The principle of sustainability , focusing on the environmental and social  dimension of economic issues is a cross-cutting objective at the heart of all these programmes. In addition, global issues such as climate change are becoming increasingly important because trade has the potential to address these challenges effectively.

The 2012-2015 growth policy includes a seventh and new field of action concerning the question of "the sustainability of resources derived from the environment ". The energy intensity indicator linking energy consumption and GDP will illustrate this field of action, whose aim is to encourage growth that respects the environment. One of the major challenges in this sphere is to achieve climate objectives at reasonable cost by using resources efficiently.

The 2012-2015 growth policy must help to raise productivity, in practical terms through: (1) reform of the health sector; (2) reform of the agricultural policy for 2017 onwards; (3) the change in the direction of energy policy (gradual elimination of nuclear energy )

The increasing scarcity of natural resourcesas a result of the world's growing population and changes in consumption patterns will make the question ofresources even more important in the future. This issue of resources is exacerbated by climate change, over-exploitation of ecosystems and non- renewable resources , the limited reserves of fossil fuels and awareness that the cost of nuclear energy is not what it was made out to be. Switzerland, which has few raw materials, is therefore particularly affected in this respect.

Some noteworthy aspects of the reforms introduced since the previous Review of Switzerland's trade policy are described below. There has been a new revision of the Law on cartels and other impediments to competition, a revised law on banks (reinforcing the stability of the financial sector, "too big to fail"), the 2011 Agricultural Policy and the 2014-2017 Agricultural Policy, the revision of the law on energy , the revision of the law on supplies of electricity, the revision of the law on CO2, the internal implementation of the revised Agreement on Government Procurement, the total revision of the law on alcohol and, lastly, the new developments in relation to intellectual property.

Switzerland plays an active role in all international negotiations on the environment in order to promote sustainable development worldwide. The relevant legal basis for this is the Swiss Constitution (Articles 2, 54 and 73) and, in particular, the Federal Law on protection of the environment (LPE, RS814.01) , together with the Federal Council's reports on foreign policy.  Switzerland considers that implementing trade-related measures that are both non-discriminatory and non-protectionist within the framework of multilateral environmental agreements is, under certain circumstances, the most effective way of ensuring that environmental objectives are met. The implementation of environmental regulations is chiefly the responsibility of the Federal Office for the Environment (OFEV). The Office considers thatenvironmental policy must also be designed as a policy for managing natural resources and long-term protection of natural capital. Likewise, policies in areas such as agriculture, electricity, transport, trade and development aid must automatically incorporate environmental concerns.

Switzerland strives to ensure that the principles enshrined in its Constitution and legislation – namely, protection of the environment and the precautionary, polluter pays and  sustainable development principles– are also applied at the international level. The protection and sustainable use of natural resources are incorporated into other areas of foreign policy. Switzerland's objective is to ensure that environmentalagreements are negotiated and implemented consistently, while at the same time taking into accountinternational trade commitments. It is nevertheless aware of the fact that trade agreements give States a margin of manoeuvre in respect of the environment , a margin that can be used to the benefit of the economy without becoming a discriminatory barrier to trade, for example, through the promotion and transfer of environmental technology. Within the WTO and in its bilateral trade policy (free trade, investment), Switzerland pursues the objective of achieving a balance between trade and environmentalregulations. In the WTO negotiations, it supports the establishment of a list of environmental goods for which trade would be facilitated. It considers, however, that production processes and methods must be taken into account when defining certain environmental goods inasmuch as these may have a decisive effect on the environmental impact ( biofuels for example). In the interests of free trade, Switzerland wishes to see harmonization of the relevant regulations in various environmental agreements. The initiatives in favour of a Green Economy launched within the framework of the United Nations EnvironmentProgramme (UNEP) and the OECD should in the long term lead to an international regime for the effective and equitable management of natural resources . Switzerland cooperates with other governments in order to ensure that the laws governing import and export of goods that might be hazardous to human health or the environment, including hazardous wastes, toxic chemicals, biocides and ozone-depleting substances, are consistent.

 On the Doha Development Agenda (DDA) negotiations, Switzerland supports a comprehensive round that not only increases market access but also improves existing trade rules, introduces new ones, and promotes coherence between the multilateral trading system and other issues, such as environmental and development policies.

In addition, since mid-2010, Switzerland and EFTA countries have proposed to all their negotiating partners the inclusion of special provisions on trade and sustainable development.