6th SWISSMEM Industry Days - Opportunities for Switzerland: Universality and Partnership

Federal Department of Foreign Affairs

Bern, 21.06.2012 - Zurich, 21 June 2012 - Statement by Federal Councillor Didier Burkhalter - Check against delivery

Dear Mr President,
Dear Minister,
Ladies and gentlemen,

The world, Europe and Switzerland have come to a crossroads. Which way should we go? What will our future bring – in terms of our environment, energy, water and food supplies? According to UN estimates, well over 8 billion people will live on our planet by 2050: How will we deal with it? What are our solutions to these global challenges? What are the opportunities? What sort of global governance will improve security in a world that seems to be turning and changing ever faster – threatening to lose all its stability?

Switzerland has a pivotal role to play in answering these crucial questions. A specific, self-confident and helpful role that builds on its particular strengths. And a role that is based on two overarching goals: defending our interests and promoting our values.

This also means that we need to expand and nurture our strategic partnerships while at the same time practising universality. We must continue along the paths that have already brought success. We must strengthen our strengths.

This is why Switzerland needs a clear foreign policy strategy – a compass that will guide us through this world. At the start of the year, the Federal Council drafted and then finalised just such a strategy. Specifically, this includes three elements:

- firstly, a main goal that sets the framework and,
- secondly, is underpinned by basic values.
- The third element comprises four strategic focal points together with a central mission.

The first element, the main goal, is simple: to preserve our interests and promote our values.

These interests and values are a firmly rooted element in our world full of uncertainty and instability. They are firmly anchored in our Federal Constitution. The Swiss Constitution stipulates that foreign policy must uphold the country’s independence, security and well-being. The values which it has to promote in addition to upholding these interests are

- alleviating poverty,
- human rights,
- democracy,
- peace
- environment

This definition of the main interests, values and goals of Swiss foreign policy provides a stable and reliable framework for our foreign policy activities.

This framework is underscored by five principles that are independent of daily politics: the five principles of Swiss foreign policy are the well-known three: the rule of law, universality, neutrality; but we should also add solidarity and responsibility.

Within Switzerland, the rule of law can be taken for granted. However, it also constitutes a guiding principle for our foreign policy. Switzerland has few instruments of power. It is thus in our interest to ensure that the rule of law takes precedence over power on an international level.

The second principle is universality. This is absolutely crucial in today’s world. Switzerland strives for good relations with as many countries as possible. Switzerland needs to maintain a well developed network of relations in order to defend its interests. But that does not prevent us from setting clear priorities. On the contrary: One example is the resolved kidnapping in Mali. Only thanks to Switzerland’s long-standing and strong presence in Mali was it possible for Switzerland to enjoy a strong network and considerable trust on the ground. Ultimately, this contributed to the case being resolved.

The third principle is neutrality, also a traditional instrument of our foreign policy. In terms of international law, neutrality primarily means non-involvement in international conflicts between other states. In political terms, neutrality signifies non-membership of alliances, independence, non-partisanship, objectivity and impartiality.

Switzerland lives up to this principle of neutrality, notably in relation to the problems in the Middle East. In this region it can further strengthen its role as an “honest broker”. Switzerland occupies a special role in terms of its relations with Iran, for example. It represents American interests in Iran, therefore helping to keep an important channel open and maintain a dialogue between the two sides during difficult times. Switzerland also offers its good services in relation to Syria and is prepared for an an international conference in Geneva, if required.

The fourth principle is solidarity. The formula of Federal Councillor Max Petitpierre “neutrality and solidarity” has remained valid to this day. According to this formula, we cannot make do with being a passive observer of world events. We are part of the world and so jointly responsible for our future. This is why we are active, for instance in the case of Syria or Burma.
Rather than “neutrality and solidarity” we should say: “Neutrality, solidarity and responsibility”. Because the fifth principle, which is at the core of Switzerland’s liberal tradition and goes hand in hand with solidarity, is responsibility. With its strengths in a number of fields, Switzerland should be making a significant and useful contribution to resolving global problems. After all, we have an obvious interest in a peaceful and secure international environment, in upholding human rights, and in ensuring that people in the various countries concerned have sufficient future opportunities. Only then can the world grow.

It is also in the interest of companies that values such as human rights are respected. And private industry bears joint responsibility for upholding human rights and social standards. Numerous companies have recognised this and do indeed assume responsibility. One example is the UN’s Global Compact, in which about 8,700 companies are participating and thereby assuming responsibility. Those that fail to do so and do not meet their obligations are excluded in the following year.
A topical area in which both governments and the private sector have to assume joint responsibility is commodities. The challenge here is to maintain a good balance between entrepreneurial freedom and the extraction of raw materials on the one hand and labour law and human rights on the other. Those are not actually contradictory aims, and companies that think along sustainable lines will be aware of this. The Federal Council for its part bears responsibility for the country’s reputation. That is why it is deploying an inter-departmental working group to analyse opportunities and risks and report to the Council on areas for action.

As you can see, all these principles are first and foremost in Switzerland’s interest and hence also in the interests of a sound Swiss economy. But they also open up new opportunities and offer solutions for the world.

The third element of the Federal Council’s foreign policy strategy for 2012-2015 comprises four strategic focal points:

Our neighbouring countries form the first of these strategic focal points. We need to devote special attention to nurturing and expanding our relations and to swiftly resolving existing differences of opinion. For example, we have already resolved the dispute with France regarding Basel-Mulhouse airport. This has helped us to preserve hundreds of jobs for Swiss companies in the Basel region. Relations with Italy have also improved of late, and a rapprochement is gradually taking place between our two countries. That is, and will remain, a priority for the Federal Council. Another example is the capital gains tax negotiated with Austria, Germany and Britain, where Switzerland presented good possibilities and solutions.

A second focal point is adapting and deepening our relations with the European Union while keeping our options open for the long term and upholding our economic interests. In brief: we want to renew the bilateral path.

Last Friday, the Federal Council took a major step forward in the further development and renewal of the bilateral approach, approving a mandate for negotiations on institutional issues with the European Union. The future of the Swiss domestic market is at stake. Our economy and our values are at stake.

Switzerland has taken action and submitted concrete proposals to the European Union which are respected by the institutions and sovereign powers on both sides. They take full account of the concerns raised by the EU Council in 2010. On this basis, we would like to talk to and negotiate with the EU in an open and pragmatic way. Yesterday there was an initial reaction: the EU acknowledged Switzerland’s proposals and will study them carefully.

This also entails mechanisms for further developing the bilateral agreements, and for supervising, interpreting and settling disputes relating to the agreements. Switzerland’s adoption will be dynamic but not automatical. The agreements will be monitored independently of governments but not at a supranational level.

The third focal point is the continuation of the adaptation process for Switzerland’s commitment to stability in Europe, in areas bordering on Europe and in the rest of the world, especially in fragile countries.

This includes the four-year loan for international and development cooperation for the period 2013-2016, which is currently being debated by parliament. This would allow us to defend our interests and values throughout the world at the cost of one Swiss franc per day for each person in Switzerland.

The fourth focal point is strengthening and diversifying our partnerships and our commitment in areas of global import.

Ladies and Gentlemen,

The Federal Council’s fourth strategic axis is our response to the emerging international balance of power. The Atlantic alliance is losing its hegemony, while the Asia-Pacific region is developing with great dynamism. It already accounts for half of the world’s economic growth, and a third of its wealth creation. Other countries, such as the Gulf States, Brazil and South Africa, are also gaining in economic and political importance.

Switzerland is reacting to this new state of affairs, strengthening its relations with these regions and countries, particularly those that are part of the G20. As part of this strategy, it is taking an important step forward this year by becoming a member of the Asia-Europe Meeting (ASEM).

ASEM is a strategic grouping which brings together, at the highest level, representatives of the Asian and European countries, an area which accounts for 60% of the world’s trade and population.

It is interesting to note that the Asian countries unanimously supported Switzerland’s candidature.

Switzerland’s membership – like that of Norway – will become effective in November. It reflects the very positive image of our country and its values that prevails outside Europe, while with our neighbours we need to work to provide information and improve our image.

Our training system and research centres, the capacity for innovation and dynamism of our enterprises, our capacity to create jobs, produce added value and control public expenditure, the stability of our political system and the predictability of legal changes are qualities that do not go unnoticed. Sometimes in contrast to what happens elsewhere in Europe.

Switzerland has its own special characteristics and advantages. As an independent force, it can develop relations with these countries, relations different from those entertained by members of the European Union.

Switzerland needs to position itself proactively in response to the changing situation. On the one hand, we want to develop and diversify our bilateral relations, political and economic, with important strategic partners; on the other, strengthen our multilateral commitment.

The key words here are universality and strategic partnerships.

Swiss strategy in foreign economic policy is to strengthen and diversify Switzerland’s economic position. The Federal Council is pursuing three clear priorities:

• to make Switzerland more competitive;
• to contribute to developing multilateral frameworks that encourage trade;
• to develop our bilateral economic relations in Europe and the rest of the world, particularly through free-trade agreements.

Switzerland is one of the world’s most “globalised” countries, and this has many benefits. As we have seen over the last few years, the openness of our economy is a major advantage for our economic growth and well-being. There is potential here that can be further exploited.

This situation also gives us responsibilities and duties vis-a-vis the world at large. Responsibility and solidarity are expected of us. Our duty and our dignity lies in promoting our values, but to do so is also in our interests. If Switzerland’s enviable position in the world is to be accepted and understood, it must not be perceived as selfish.

By acting in this way, combining responsibility and solidarity, universality and partnership, our country can continue to play an intelligent role, and occupy a special place in the world.

Moreover, because of its independence from any alliance or grouping of countries, Switzerland is more motivated than others to cultivate its own network, to be present in the world, in particular in foreign relations. It needs to form alliances on a case-by-case basis with like-minded countries.

We need to be practically involved, both bilaterally and multilaterally.

Multilaterally, it is vital that Switzerland participate actively in the principal international forums and working groups. Because the decisions taken there may directly affect our country.

This is true not only of the UN, where Switzerland has, in ten years of involvement, won a great deal of respect for its competencies and reliability, its consistent, responsible commitment and solidarity. This year, we are embarking on our second decade as part of the organisation, and we do so with two priorities: to reform the governance of the world system and to improve security. These are key issues. Because a small country is also entitled to a place in the system of world governance. Where security is concerned, it is essential, for the inhabitants of our planet – and the Swiss are great travellers – and for enterprises, which need security if they are to prosper.

There is also the G20. Since the end of 2008, the G20 has become the forum in which international financial and economic issues are determined. Switzerland is not a member of the G20, but the Federal Council acts to ensure that our country’s interests and priorities are heard in this forum, in particular by cultivating relations with the presiding and member countries of the G20 [I was speaking about this two hours ago with the British Minister for European Affairs, David Lidington, and we shall have further opportunity to discuss the matter shortly with Minister Davis].

Where bilateral partnerships are concerned, we seek first of all to deepen those that already exist.
And we pay special attention to our neighbours, with whom we have “local” problems that have persisted for far too long. Problems, such as the issue of taxation, which can quickly take on European – or even global – proportions, given the role of some of our neighbours.

Let us not forget that three of Switzerland’s neighbours are members of the G20 and the G8, as well as influential members of the European Union.

We also seek to cultivate our relations with the EU: Switzerland and the European Union have close economic, political and social ties.
The EU is still Switzerland’s main trading partner, while Switzerland is the EU’s third-ranking trading partner, after the USA and China. Our relations with the EU are of fundamental importance for our well-being, which is why the Federal Council wishes to pursue and update the bilateral approach, as it indicated last week.

However, the events of recent months – the economic and financial instability of the Union and some of its members, and the direct impact of this on Switzerland, particularly where the strength of the Swiss franc is concerned – [these events] underline the importance for our country of continuing to develop contacts and markets with other partners, and of being present in emerging [and emerged] markets.

Free-trade agreements are of vital importance: they open up new markets and create a favourable framework of conditions for the medium and long-term development of commerce.

This is what Switzerland is fighting for. But this way is no “bed of roses”: it is more of a high-mountain path, steep and with precipices on all sides. Access to markets has in many cases become difficult in a climate of protectionist withdrawal. 

At the same time, on the multilateral front, given certain “heavy tendencies”, the opportunities for Switzerland to exert influence in international economic decision-making in favour of a liberal view of trade are sometimes limited.

But we must continue to fight for this liberal vision, because tendencies come and go, but facts remain.  And the fact that the opening up of markets is good for all cannot be denied, as we have seen in South-East Asia, where tens of millions of people have progressed from poverty to relative prosperity in recent decades. Although not everything is perfect, their horizons have opened up and their quality of life has greatly improved. Poverty has been alleviated in many developing countries, infant mortality has declined significantly and life expectancy has increased, even in very poor countries. Education is now provided for 75% of children in Africa, for 90% in Asia. Such changes are possible in all parts of the world.

Switzerland will continue to act as a champion of openness and universality, and will continue to seek partners.
Foreign economic strategy policies have been drawn up for such countries as Brazil, Russia, India and China, not forgetting Turkey, Indonesia, the Gulf States, Mexico and, of course, another growing giant: South Africa.
 
Here I would like to mention the example of the relations between Switzerland and your country, South Africa. It shows how both sides can benefit from good relations.  South Africa is Switzerland's most important trade partner on the African continent. More than 100 Swiss companies have an agency or a factory in South Africa, creating about 36,000 jobs.
In 2008 with approximately CHF 8.9 billion, Switzerland’s direct investments in South Africa ranked 5th.

In May 2007, the Swiss Business Hub South Africa was opened. Together with the "Swiss Cham" Switzerland is in a favourable position to promote Swiss economic interests in this emerging economic power.
We also see a bright future in scientific cooperation with your country. We discussed this issue a year ago and signed a joint statement with the South African Minister of Science and Education. Switzerland as one of the top countries in the world in the sectors of higher education, research and innovation has a key role to play. Together with its partners we can create more jobs, promote better education and develop new solutions for many problems in the world such as water, food, or energy or social issues. We can also make a difference in other sectors such as health – for example in the fight against malaria. This is solidarity and this is our responsibility.

Thank you for being here today in Switzerland Minister and thank you for your kind (and inspiring) words!

Ladies and gentlemen,

If Switzerland is to take advantage of the opportunities that present themselves, it must remain at the cutting edge globally in terms of competitiveness. Education and research are key location factors.

The Federal Council is convinced that innovation is and will remain the key to our success. Switzerland therefore intends to expand its cooperation in the field of education and academic diplomacy. Research and innovation are two valuable trump cards which we can certainly make good use of.

The involvement of Switzerland in the establishment of a European research centre for Swiss research, innovation and ultimately for business is key. It is an important source of income for our research. Switzerland’s record in this area is excellent: in five out of six pre-selected projects as part of the “Future and Emerging Technologies (FET) Flagship Initiatives”, Swiss universities are represented, and in two of these as coordinators in the research consortium.

In general, we have to move with the times and exploit new opportunities, for instance in the field of online education. Today, it is perfectly feasible from the technological point of view for people around the world to listen to a lecture in Switzerland on the Internet. This is an opportunity. But for this, we need one thing above all: carefully selected partnerships.
In the field of education and research, too, Switzerland acts in line with the principles of responsibility and showing solidarity: it thus creates new opportunities, opens up new markets for itself and provides solutions for the world.

Ladies and gentlemen,

I would also like to mention the Swiss international network: it makes a significant contribution to preserving our interests and promoting our values – and this is the core task of Swiss foreign policy.

The network of consulates, embassies and Swissnex assists and supports Swiss citizens and Swiss companies abroad in emergencies and crises. This is the main task of our foreign policy strategy.

I would like to mention two new tools: first, the opening of the FDFA hotline. It is available 24/7 to Swiss citizens, and especially to Swiss citizens abroad. And second, a new registration system within the FDFA’s Directorate of Consular Affairs will be set up this year. It enables people to provide their details to the FDFA on a voluntary basis before embarking on a trip. It shortens the response times and improves intervention in emergency situations.

But the most important element is the people in our international network. The employees on the ground are the ones who maintain and expand it. It is largely thanks to them that Switzerland now has such an outstanding network. But this is a long-term task. This is why we must invest systematically in the training of new employees and in the maintenance of these networks in the future.

These are the key elements of the Federal Council’s foreign policy strategy. I would like to conclude with an impressive example: Last week we welcomed Nobel Prize Winner and Delegate from Myanmar, Aung San Suu Kyi, to Switzerland. Burma is a country currently making the transition towards greater democracy. The fact that she started her European visit in Geneva and Bern attracted the attention of the whole world to Switzerland and its democratic system.
This success again underscores the importance to Switzerland of Geneva as an international location. It conveys a positive image of our country to the rest of the world. This can be ascribed to our values: we hold them in great esteem and we put them into practice. The country as a whole benefits from this.

Myanmar has huge economic potential. But there are also many problems. This is why the Federal Council has decided to lift many of the sanctions and to increase the budget for cooperation programmes from CHF 7 million to CHF 25 million each year over the next four years. We will also have a Swiss embassy in Rangoon in less than five months. This will provide us with an important local access point.

And we intend to create integrated embassies. In the future, this embassy will thus have a single budget and a single structure for diplomatic activities, promoting economic relations and development cooperation.

Core problems are child labour and youth unemployment, as Aung San Suu Kyi explained. These, too, are areas where Switzerland can play a role. We have a dual education system which is admired by many, and plenty of expertise. Could we not export this to Myanmar? I would like to suggest that we try to strike a deal between the Swiss government and Swiss companies: The Swiss government will launch education initiatives and manage projects in Burma. At the same time, Swiss companies could invest there and get involved in training apprentices as they do in Switzerland.

Switzerland could thus open up a new market and protect its interests there. At the same time it would take on responsibility and demonstrate solidarity in an area where it has an undisputed wealth of expertise. It would contribute its unique knowledge and characteristics and could also promote its values at the same time.  

This type of solution would personify the principles of our foreign policy: preserving our interests and promoting our values in a typically Swiss way – in other words, responsibly and by showing solidarity.

Thank you for your attention.

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