Free Trade as a Key Asset in Uncertain Times

This further study illustrates the uncertainties facing the Swiss economy. For companies, this uncertainty makes strategic planning considerably more difficult. As long as it remains unclear whether—and in what form—additional trade policy measures will be implemented, costs, supply chains, and investment decisions will remain difficult to predict. Companies that are heavily dependent on the U.S. market or integrated into international value chains are particularly vulnerable. Because Switzerland earns every other franc abroad, this dependence is substantial.

A broader international presence increases the resilience of Swiss companies to trade policy shocks. Companies with access to multiple sales and procurement markets can adapt more flexibly to changes in tariffs, regulations, or supply chains. For an open economy like Switzerland in particular, this ability to act is crucial for mitigating economic risks and capitalizing on new opportunities early on.

Diversification is therefore not just a matter of additional growth opportunities, but also of risk management: If market access deteriorates, as is currently the case with the U.S., companies can turn to alternative markets. A broad network of free trade agreements therefore strengthens the security of supply and the strategic flexibility of Switzerland’s export-oriented economy.

With free trade agreements with Mercosur and Malaysia, Switzerland would hold significant advantages. They create more reliable framework conditions and facilitate access for Swiss products and services to two economically significant regions, which together comprise over 300 million people and an economic output of approximately 3.5 trillion U.S. dollars.

In doing so, they not only strengthen individual export sectors but also reinforce Switzerland’s position as a competitive and well-connected business location. Especially given the current U.S. tariff policy and the ongoing uncertainty surrounding further trade policy measures, the swift implementation of these agreements is now more important than ever. It would be a mistake to put such agreements on the back burner. People often forget that in Switzerland, one in every two jobs depends directly or indirectly on exports. Anyone who blocks free trade agreements also jeopardizes jobs and prosperity in our country. The right response to growing uncertainty is not to wait and see, but to act: quickly approve and implement the Mercosur and Malaysia agreements. Only in this way can Switzerland play to its strengths and strengthen its economic capacity to act.