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The topics before the World Trade Organization are: TRIPS a Double-Edged Sword
and Free Trade in the Epoch of Global Economic Crisis. The Swiss Confederation is
an advocate of TRIPS, especially when it comes to pharmaceuticals. The Swiss
Confederation is a major proponent of free and unrestricted trade. However, it is not
entirely in favor of free trade as is declared under the current draft of the Doha
round and wishes for speedy and decisive advancements in it.
In WTO Switzerland is member of the G10 group. Switzerland has always been
actively supportive in industrial market access, services, Geographical Indications
and is decidedly committed to the multilateral trade liberalization. In addition to the
EFTA Convention and the Free Trade Agreement with the European Union (EU),
Switzerland currently has a network of 16 free trade agreements with countries
outside the EU. Apart from agriculture, there are minimal economic and trade
barriers between the European Union and Switzerland. It applies the most-favored-
nation clause in trade with all WTO member states and is generally committed to
eliminating trade restrictions worldwide.
The Swiss Confederation believes that the current progress on the Doha Round is
slow and far below the required standard. Regarding the current draft under Doha,
Switzerland is not satisfied but is ready to make concessions for the greater good.
Switzerland has sought to advance the Doha Round negotiations on several levels.
Despite intensive efforts and an informal ministerial conference lasting several days
in July 2008, the breakthrough strived for was not achieved. Progress remains
uncertain. The WTO and the existing body of rules remain in effect and continue to
determine Switzerland’s economic relations with many different states.
The worldwide trend towards the conclusion of free trade agreements is reinforced
by the stalling of the Doha Round. In the reporting year, Switzerland in association
with its EFTA partners signed agreements with Canada and Colombia. Negotiations
with the States of the Gulf Cooperation Council and with Peru have been concluded
in substance. On a bilateral level general agreement on the content of an
agreement was reached with Japan – Switzerland’s fourth most important trading
partner after the EU, the USA and China (with Hong Kong). Within the framework of
EFTA, Switzerland took up negotiations with Algeria and India and is considering
doing so in the current year with Russia, Serbia, Albania and Ukraine. Clarifications
with China on the commencement of negotiations on a bilateral agreement
continued.
Under the current draft of the Doha round, Swiss farmers may lose 30-50% of their
current earnings. Switzerland, however, cannot make any further concessions in
terms of agriculture as it will already have a high price to pay.