Since January, Switzerland has applied the minimum taxation of multinationals required by the OECD. The United States, a member of the organization, does not apply this rule “which reduces competitiveness”.
Switzerland, stuck between the EU and the United States, finds itself “in a critical phase” regarding corporate taxation, Karin Keller-Sutter said Thursday in Davos. Brussels still exerts “financial pressure” on Bern while Washington does not follow the rules.
Since January, Switzerland has applied the minimum taxation of multinationals required by the OECD. The United States, a member of the organization, does not apply this rule “which reduces competitiveness”.
“It was Washington’s idea,” declared the President of the Confederation to the press at the World Economic Forum. The new US President Donald Trump has clearly indicated his opposition to this imposition, threatening economic reprisals against countries that apply it.
Switzerland, which is “always under financial pressure” from the EU, therefore finds itself between two systems, continued Saint-Galloise. She told European Commission President Ursula von der Leyen on Tuesday that she did not want to suffer any side effects.
No contact with Washington
Berne is “in a critical phase” and the files will be closely monitored, she added. The finance minister said she hoped to be able to meet her American counterpart quickly, ensuring that Switzerland would have a plan to defend the interests of its economy.
Donald Trump’s speech expected Thursday afternoon will surely give a signal about the foreign policy that the Republican wants to pursue, she said. Switzerland has not yet had contact with the American administration.
Pressure on China
The Federal Councilor also defended Swiss interests with China during bilateral talks this week. In Davos, Beijing “clearly opposed the customs duties” that Donald Trump wants to apply, she recalled. “We are on the same line as China,” added the minister.
This declaration comes as Switzerland attempts to reduce customs taxes still widely applied by China on Swiss exports.
-Karin Keller-Sutter also met the Ukrainian president at the opening of the WEF. Nothing concrete emerged on the possible organization of a new summit for peace in Switzerland.
WEF 2025: discussions “will begin” on the USA-Switzerland agreement
“Discussions will begin with the new American administration,” Guy Parmelin declared Thursday in Davos. He was speaking on a possible resumption of discussions concerning a free trade agreement with the United States.
Negotiations on a free trade agreement between the United States and Switzerland were interrupted under Joe Biden, although Donald Trump relaunched them during his first term.
Economy Minister Guy Parmelin made this statement on the sidelines of the signing of the free trade agreement between EFTA and Thailand.
He described the conclusion of negotiations with the Asian country as a notable success for Swiss foreign economic policy. This agreement will facilitate access for Swiss companies to this strategic market with strong economic potential.
“First agreement with Europe”
This is the first free trade agreement with a European country, underlined Thai Deputy Trade Minister Pichai Naripthaphan. The agreement notably covers trade in goods and services, investments, protection of intellectual property and competition rules.
In addition to Switzerland, EFTA includes Iceland, Liechtenstein and Norway. According to the organization, negotiations with Thailand were launched in June 2022 in Iceland. Subsequently, ten rounds of negotiations took place in Bangkok, Geneva and Oslo.
The volume of trade in goods between the EFTA States and Thailand amounted to 3.2 billion euros (around 3 billion francs) in 2023. – (AWP/ATS)
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