๐ Tender Overview
On January 15, 2025, the Federal Council adopted the 2024 Foreign Economic Policy Report. In the context of increasing uncertainty in global economic and trade relations, Swiss foreign economic policy is strengthening the countrys resilience through favorable economic policy and regulatory framework conditions. This should enable companies to react agilely to rapidly changing conditions on international markets.
The global economic situation in the reporting year was characterized by increasing geopolitical tensions, protectionism and uneven growth dynamics. Wars and conflicts led to increased uncertainty in global economic and trade relations. In this context, the focus of the economic and trade policy of key players in the global economy shifted further from market opening to economic security. With industrial policy and protectionist measures, the major blocs in particular are trying to reduce dependencies, for example in the area of high technology and important mineral raw materials. In addition to reducing trade dependence and strengthening competitiveness, industrial policy initiatives also target issues such as decarbonising the economy. However, as industrial policy interventions increase, the risk of market distortions and protectionism increases. This increasingly unpredictable global economic environment poses major challenges for Switzerland as a medium-sized, open economy.
The report on the Swiss economy, also published in the reporting year, shows that the subsidies granted as part of these initiatives lead to distortions in trade and location decisions, but can also increase demand for Swiss goods and services abroad. The Federal Council, however, wants to forego industrial policy initiatives in favour of individual sectors or technologies. These pose a high risk of misallocation at the expense of taxpayers and create new long-term dependencies. Industrial policy measures such as subsidies for the production of certain goods would also not be suitable for reducing trade dependence and increasing Switzerlands security of supply. The creation of the most favorable economic and regulatory framework conditions possible will therefore remain central to strengthening resilience - which the Swiss economy has demonstrated in the crises of recent years. These must allow Swiss companies to adapt as agilely and flexibly as possible to changing conditions on the global markets. This includes important foreign trade policy measures that were completed or continued in the reporting year.
Examples of this are the autonomous industrial tariff reduction that came into force at the beginning of the year, the package negotiations with the EU and the negotiations on new and the modernization of existing free trade agreements. Good economic policy framework conditions can maintain and, if possible, further strengthen the adaptability of the Swiss economy and its companies to a changing international environment. This was also shown by the OECD country review of Switzerland: The OECD supports Switzerland in its economic policy orientation. To ensure security of supply, it praises the existing system of national economic supply, which is based on the responsibility of companies and only provides for state intervention in a subsidiary manner and for essential goods and services.
