Referat von Botschafterin Monika Rühl Burzi über "Switzerlands Strategy on Foreign Economic Policy - Special Focus on Eastern Europe" vor den Joint Chambers of Commerce JCC. Die JCC vertreten die Interessen der schweizerischen Wirtschaft in Russland, Belarus, der Ukraine, Kasachstan, Kirgistan und Moldawien.

1. Federal Department of Economic Affairs FDEA
State Secretariat for Economic Affairs SECO
Bilateral Economic Relations
Switzerland’s Strategy on Foreign
Economic Policy –
Special Focus on Russia, Ukraine,
Belarus and Kazakhstan
Monika Rühl Burzi, Ambassador
Annual General Meeting of the Joint Chambers of
Commerce JCC, April 21, 2010, Zurich

2. Outline
1. Swiss Foreign Economic Policy Strategy
2. Trade and investments in and with
Russia, Ukraine, Belarus and
Kazakhstan
3. Implementation of the Swiss Foreign
Economic Policy Strategy in Russia
4. Challenges / Potentials
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3. 1. Swiss Foreign Economic Policy
Strategy
3 dimensions
1.Access to foreign markets
2.Internal market liberalisation
3.Contributing towards the economic
development of trading partners
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4. 1. Swiss Foreign Economic Policy
Strategy (2)
Access to foreign markets
 Objective: Enabling Swiss exporters of goods, services
and production factors to gain entry to foreign markets by
removing barriers to cross-border economic activities
(customs barriers or non-tariff-related obstacles).
 Further extension of broadly-based bodies of
multilateral regulations (WTO).
 Preferential agreements or other bilateral / plurilateral
regulations with EU/EFTA countries, non-European
OECD-countries (USA, Japan) and with BRIC-
countries (China, India, Brazil and Russia).
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5. 1. Swiss Foreign Economic Policy
Strategy (3)
Internal market liberalisation
 Objective: Increasing growth by opening the swiss market
to imports.
 Increasing the (relatively low) productivity of certain
sectors of the domestic market so that these
companies can maintain their position in relation to
rival imports.
 Increasing the competitiveness of Swiss export
companies, as they can obtain competitively priced,
high quality input goods and services.
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6. 1. Swiss Foreign Economic Policy
Strategy (4)
Contributing to economic development in partner
countries
 Objective: To facilitate the participation of as many
countries as possible in international trade, or in other
words, globalization.
 Economic development cooperation: Supporting the
integration of developing and newly industrialising
countries into the global economy.
 Institutionalised economic dialogue within the
international organisations of which Switzerland is a
member (e.g. OECD, IMF, WTO).
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7. 2. Bilateral Trade Volumes
Trade (Mio. CHF)
Export %Total Import % Total
Global Exports Global Imports
Russia 2007 2‘919 1.5 1‘551 0.6
2008 3‘180 1.5 1‘053 0.3
2009 2‘131 1.1 696 0.3
Ukraine 2007 536 0.3 119 0.04
2008 628 0.3 144 0.05
2009 364 0.2 61 0.04
Belarus 2007 96 0.1 7 --
2008 144 0.1 17 --
2009 112 0.1 7 --
Kazakhstan 2007 183 -- 797
2008 180 -- 875
2009 168 -- 673
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8. 2. Direct Investments
In Switzerland (Mio. CHF, 2008):
Russia 2‘500 (Source: KPMG Switzerland)
Ukraine 5 (Source: KPMG Switzerland)
Belarus n.a.
Kazakhstan n.a.
Swiss direct investments in (2008):
Russia 5.3 Mrd. CHF (Source: Swiss National Bank)
Ukraine 805.5 Mio. USD
Belarus 1.2 Mrd. USD (Source: UN)
Kazakhstan n.a.
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9. Legal framework (bilateral)
Russia Ukraine Belarus Kazakhstan
Economic and 1995 1996 1994 1997
Trade
Agreement
Investment 1991 1997 1994 1998
Protection 1990s
Agreement
Double Taxation 1997 2000 1999 2000
Income
Agreement
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10. Bilateral Joint Economic Commissions
Base Regularit Last Next
y meeting meeting
Russia Mai 12, 1994 9 meetings Oct. 16, 2009 Nov. 2010
since 1994 (tbc)
Ukraine July 20, 1995 4 meetings Sept. 17, 2008 Sept. 2010
since 1995 (tbc)
Belarus May 28, 7 meetings March, 18, Tbc
1993 since 1993 2010
Kazakhstan July 1, 1997 4 meetings Dec. 2, 2009 Tbc
since 1997
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11. 3. Implementation of the Swiss Foreign
Economic Policy Strategy with Russia
− Assignment in the Foreign Economic Policy Report of the
Federal Council, 2004
 Strategies for BRIC-Countries
 Summary in the Foreign Economic Report of 2006
− Element of implementation of the first dimension (Access to foreign
markets and international legal framework)
− Strategy papers containing analysis and implementation
measures on the following questions:
− Is Switzerland being discriminated?
− What needs to be done in order to increase the economic
relations?
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12. 3. Implementation of the Swiss Foreign
Economic Policy Strategy in Russia (2)
Main measures
• Negotiation of a Free Trade Agreement (within EFTA)
• Updating/renewal of the Investment Protection Agreeement
• Adjustment of the Double Taxation Income Agreement
• Negotiation of a Visa-Agreement
• Intellectual Property: Support to the Swiss Export industry combatting
counterfeight; Agreement on rules of origin und geographical
designations of origin
• Institutionalisation of the dialogue at ministerial level
• Trade promotion: review the increas of the manpower at the Swiss
Business Hub in Moscow
• Development of a strategy for scientific cooperation
• Non-tariff barriers (watch industry): bilateral negotiations on fineness
standards of precious metals and watch-reparation movement of goods
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13. 3. Action Plan Switzerland-Russia
on the economic collaboration between the Swiss
Department for Economic Affairs and the Russian Ministry
for Economic Development 2007-2010
•Instrument for the implementation of the Russia Strategy
•Signed by Federal Council Leuthard and Minister for
Economic Affairs Nabiullina in July 2008 in Moscow
•Monitoring of the implementation by the Joint Economic
Commission Switzerland-Russia
•Action Plan almost fullfilled  Continuation and extension
currently ongoing
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14. 4. CHALLENGES Switzerland is exposed
to in these markets
Institutional
• Weak economic infrastructure
• Bureaucracy
• Lack of transparency / corruption (customs procedure etc.)
• Slow implementation of different internal reforms
• Low level of productivity
• Low degree of economic diversification (overreliance on raw materials)
Legal
• Weak rule of law / legal system and enforcement
• Free Trade Agreement EFTA-Russia
→ Start of negotiations has been postponed due to conclusion of the Customs Union
Russia, Belarus and Kazakhstan
• Renewal of Investment Protection Agreement with Russia outstanding
• Insufficient protection of Intellectual Property Rights
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15. 4. POTENTIAL for the Swiss economy in
these markets
• Relatively high GDP-growth rates
• Geographical proximity
• Large populations, big markets
• Commodity based economies (high degree of natural resources in
place such as crude oil, petroleum etc.):
→ Kazakhstan: Petroleum imports (2nd biggest supplier after Libya )
• Diversified industrial basis (Belarus)
• Main Swiss industries present in Russia, Ukraine, Belarus and
Kazakhstan:
→ machinery, food and food processing, commodity trade, chemical/
pharmaceutical, financial services, luxury products, watch industry,
tourism
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