BERNE, Switzerland, 15 November (H.S.): The United States has agreed to dramatically reduce tariffs on Swiss goods from 39% to 15% under a new trade framework announced on Friday. The landmark agreement hinges on a commitment from Swiss companies to invest $200 billion in the U.S. by the end of 2028.

Swiss Economy Minister Guy Parmelin stated that the deal places Switzerland on an equal footing with the European Union and provides critical relief for about 40% of the nation's exports. The lower tariff rate is expected to be implemented within days or weeks, pending adjustments to U.S. customs systems.

A significant portion of the inbound U.S. investment is anticipated to come from Switzerland’s pharmaceutical and life sciences sectors.U.S. Trade Representative Jamieson Greer confirmed the deal, noting it would facilitate a shift of manufacturing to the United States in key industries such as pharmaceuticals, gold smelting, and railway equipment.

The agreement also caps tariffs at 15% for Swiss drugmakers, including Roche and Novartis, shielding them from potential Section 232 national security duties that could have been significantly higher.

In return, Switzerland will lower its import duties on certain U.S. industrial products, fish, and seafood. It will also grant the U.S. new duty-free bilateral tariff quotas on 500 tons of beef, 1,000 tons of bison meat, and 1,500 tons of poultry meat.

Swiss industrial groups and economists have welcomed the news, citing the restoration of competitiveness against European rivals and the removal of major downside risks to the country's economic growth outlook.

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Hindusthan Samachar / Jun Sarkar