Offsetting geopolitical trends through long-term trade access and resilient supply chains
Switzerland’s trade-to-GDP ratio is twice the OECD’s average highlighting the importance of international trade to its economy and economic success. The free exchange of goods and services has come under pressure recently due to trade wars, protectionism and a trend towards de-globalisation or ‘glocalisation’ further spurred on by Covid-19. These geopolitical trends do not bode well for a country so reliant on international trade like Switzerland. The government should enter into additional free trade agreements and ensure long-term access to the European single market, Switzerland’s largest trading partner. For their part, companies need to rethink and redesign their global supply chains, business location choice and make better use of the benefits of digitalisation.
Here are what policymakers and businesses need to do power up the exchange of goods and services through simplifying regulations, accelerating digitalisation and considering legislation.