The World Economic Forum in Davos is in full swing. Switzerland seized this valuable opportunity to organize the signing of two recently negotiated free trade agreements, jointly with the other EFTA countries of Norway, Iceland and Liechtenstein.
Thailand, a strategic market with growing potential
The EFTA member states and Thailand concluded negotiations on a free trade agreement in November 2024. economiesuisse spoke on this subject in an article. This is another important success for Swiss economic diplomacy, after the agreement concluded with India last March.
Thanks to this agreement, Swiss exporting companies will benefit from better access to the Thai market. Indeed, Thailand has notably committed to reducing or even completely eliminating its customs duties on a large number of industrial products such as watches, pharmaceutical products and machinery. This agreement, which contains an entire chapter on trade and sustainability, is also one of the first free trade agreements concluded by EFTA member states to contain a chapter on small and medium-sized enterprises (SMEs).
Thailand is the second largest economy in South Asia and Switzerland’s second largest trading partner in this region (after Singapore). In recent years, it has become an important industrial site. Important sectors such as automobiles and electronics are now fully integrated into regional and global value chains.
This new agreement will induce positive commercial dynamics and lead to an increase in reciprocal direct investments, which we can only welcome.
-Kosovo and Switzerland further strengthen their relations
On Wednesday January 22, on the sidelines of the World Economic Forum, Switzerland also signed a free trade agreement with Kosovo. This new agreement gives Swiss and Kosovar companies better access to the other party’s market. The two countries are thus intensifying their cooperation – the current volume of bilateral trade, which amounts to 140 million francs, will thus be stimulated.
New free trade agreements are of great importance for Switzerland as an exporting nation. The global trading system is under pressure due to recurring trade conflicts. Any new agreement contributes to improving the framework conditions offered to Swiss companies by reducing obstacles to trade and investment, whatever their form.
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