Argentina and Switzerland: A renewed partnership to face common challenges
Bern, 18.04.2017 - Speech at CARI: Consejo Argentino para las Relaciones Internacionales, Think tank on international relations, Doris Leuthard, President of the Swiss Confederation, Buenos Aires, 18 April 2017
The spoken word is final
Ladies and gentlemen
I am delighted to be here with you today. I would like to thank CARI for the invitation and indeed all of you for your interest. Our countries share a rich common history: in the nineteenth century, when many in Switzerland were suffering from poverty, countless farmers and labourers emigrated to Argentina to set up new homes and helped to build the country. Argentinians have also been drawn to Switzerland, such as the famous writer, Jorge Luis Borges.
Against this backdrop it may come as a surprise that I am the first Swiss president to pay an official visit to Argentina. That’s probably because for many years Swiss presidents did not travel abroad. It is therefore all the more important to me foster our friendship and deepen relations between our two countries.
The signs are good – even though the world has again become a less stable place in the last few years: Extremism and violence are touching regions that until recently were considered safe. Nationalism and protectionism are spreading, in turn putting pressure on liberal, open societies. Europe is facing changes which many find unnerving, due to migration from Africa and the Near East, the threat of terrorism and the impact of Brexit. Globalisation means that many countries are under increased pressure to be more competitive, they are struggling to cope with unemployment and national debt, and this has encouraged populists in some countries to become more vocal.
Until recently it would have been difficult to predict such developments. And yet I can also see opportunities for countries such as Switzerland and Argentina if we focus on our strengths. Argentina has in recent months introduced reforms to return to stable growth, strengthen legal certainty and tackle poverty, unemployment and corruption. For that you have my utmost respect! Despite the uncertainties most people in Europe still support a pragmatic approach. So let us try to solve the tasks ahead together.
We face some major challenges on both sides of the Atlantic:
- The economic environment has changed significantly: the combination of higher national debt and geopolitical uncertainties is making it hard for many economies to find the necessary investment, and thereby lay the foundation for growth and prosperity.
- Many governments are finding it hard to deal with inequalities. Poverty has been reduced and the middle class is growing, and yet almost half the world’s population lives on less than two dollars fifty a day. We have to find strategies to prevent the divide between rich and poor from increasing and to maintain social harmony. I know that this is one of the priorities of the Macri administration, and that it will do all it can to reduce poverty in Argentina by creating jobs.
- Ecology is becoming increasingly important due to the effects of climate change: the Paris Agreement is in force, thus setting the cornerstones for sensible energy, climate and environment policies. Switzerland wholeheartedly supports the agreement and we strongly welcome the ambitious plans of the Argentine government to increase its share of renewable energies in the national energy mix to 20% by 2025. We are convinced that this will benefit all societies in the long term.
- Digitalisation is changing the economy radically. The pace of technological progress is incredible. To prevent just the few from benefitting while others fear for their livelihoods, digitalisation must be democratised – just as knowledge was democratised with the advent of printing. The key to success lies in education: sound basic education followed by lifelong learning. Alongside academic education, Switzerland makes a point of promoting vocational education and training. To do that we work closely with the private sector. The requirements for future qualifications are different for each branch of industry. That is why the ‘bottom up’ approach is right for us. It strengthens our capacity for innovation, creates jobs and prosperity and encourages employees to take responsibility too. With the reforms in education and the measures to strengthen the country’s already strong standing in research, Argentina is certainly on the right track.
Ladies and gentlemen,
It is against this backdrop that our efforts to deepen cooperation between our two countries are to be seen. I am certain that we can inject fresh impulses into our relations. Let me outline a few areas where I think that is possible. These include infrastructure, energy, business and trade, the financial market, research, and promoting the rule of law and human rights.
- On the subject of infrastructure: Tomorrow I will visit the tunnelling site on the Sarmiento railroad – one of the projects resolutely supported here in Buenos Aires. Others are planned. It is impressive to see the ambitious infrastructure projects that Argentina wants to realise in the coming years; there is the Agua Negra tunnel, for example, to improve connections between Argentina and Chile. We also completed a major infrastructure project in Switzerland last year, the Gotthard Base Tunnel. At 57km it is the longest rail tunnel in the world and brings northern and southern Europe that bit closer together. An Argentinian engineer, Leonardo Rondi, also contributed to the project’s success. The tunnel was made possible thanks to smart minds and innovative companies. Swiss firms are leaders in tunnel construction, planning, project development and logistics. The tunnel also demonstrates that pioneering achievements are still possible even in the 21st century!
- On energy: following the nuclear accident at Fukushima, Switzerland took the decision to gradually withdraw from nuclear energy. To safeguard our energy supply we are focusing on improving efficiency and strengthening renewable energies. Voters will soon be deciding on a package of legislative measures. We want to reduce our energy consumption to be less dependent on fossil fuel imports. We aim to replace the shortfall from nuclear power through hydropower, solar, wind and biomass. It’s worthwhile: in recent years we have been able to reduce energy consumption despite growth in the population, the economy and mobility. The technology is there, the know-how is there. Swiss firms offer innovative cleantech solutions. I am convinced that this could also be of interest to a country like Argentina – particularly in light of the major public investments announced.
- On business and trade: over 70 Swiss firms are active in Argentina, directly providing 13,000 jobs. The ratification of the new double taxation agreement between our countries strengthens the general conditions for investment and has been positively received. There is certainly further potential, so I welcome the green light for the start of negotiations on a free trade agreement between the European Free Trade Association (EFTA) and Mercosur, which your country currently chairs. I am certain that this would be beneficial for two economic areas as complementary as ours. We also welcome Argentina’s aim to become a member of the Organization for Economic Cooperation and Development (OECD) and that it is now pressing ahead with reforms to meet the requisite standards. Fulfilling these standards is an opportunity to strengthen the rule of law and the independence of the judiciary, to fight corruption more effectively and increase the stability of the national legal framework – all of which are elements in providing foreign investors with legal certainty and confidence. Switzerland is willing to support Argentina in its efforts: we recently launched a bilateral dialogue on fighting corruption, for example.
- In the field of finance I am encouraged by the recently intensified cooperation on the exchange of information in fiscal matters. It underlines the worldwide recognition of Switzerland’s efforts to ensure it has a clean financial centre that stands out for the quality of its services. This opens up the potential for better access to our financial markets. The forthcoming presidency of the G-20 shows the important international role being played by Argentina, for which I congratulated President Macri. Switzerland is willing to share its experiences in this area too, such as on the G-20 finance track or on trade and investment.
- Closer exchanges are also worthwhile in research. We are already on the right path following the signing in 2015 of a Joint Declaration. Over 80 projects have been submitted under the joint call launched by the Swiss National Science Foundation and the National Scientific and Technical Research Council (CONICET). The projects that are approved at the end of May will stand out thanks to their ‘Suizo-Argentina’ quality! There are also new and promising cooperation efforts in the field of culture: thanks to its thriving and important art scene, Buenos Aires will be the first partner city of ‘Art Basel Cities’, a new initiative aimed at expanding Art Basel’s involvement in the art world.
In addition to all these points I would also very much look forward to seeing closer cooperation at international level to promote the rule of law. We share key values and ideas.
Firstly we share a common commitment to human rights: Since the country’s return to democracy in 1983, Argentina has been resolute in defending basic freedoms on the international stage. Switzerland looks forward to being able to count on a dynamic and – given its history – a credible partner in this important area. Human rights are there for us all – so we all have to stand up for the basic values of democracy. They are the best guarantors of our freedom.
Secondly Switzerland and Argentina place great importance in openness and cooperation. The trend in certain countries to seek solutions in bilateral deals based on the law of the strongest, places pressure on (international) standards and rules. It is up to Latin America and Europe, Switzerland and Argentina, to take to the world stage to defend and strengthen a legal system that is rule based – the same rules for all means more fairness, and opportunities for everyone rather than just a select few. Anyone who applies the law of the strongest may come out on top at first. But we know from history that even great powers fail when the system gets out of kilter. As a country with four languages and cultures, Switzerland has always sought balance. We seek solutions together and approach projects pragmatically. That can sometimes take more time than in other countries, but our decisions then enjoy broad support and acceptance as a result.
Ladies and gentlemen
Every country has its own history, its own characteristics - and globalisation challenges us all in different ways. But I am convinced that the challenges we face can only be overcome by working together.
The shared values and interaction between Europe and Latin America, between Switzerland and Argentina, open up opportunities that need to be harnessed. The fruits that we have already reaped from our friendship are proof of that. I very much hope that my visit can help further strengthen our bilateral relations.
The great writer Jorge Luis Borges, who I mentioned at the beginning and who was laid to rest in Switzerland, wrote: “There is no greater comfort than the thought that we ourselves determine our own misfortune”. Conversely I firmly believe that everyone is the master of their own good fortune. Uncertain of what the 21st century will bring, Switzerland and Argentina must each face the challenge of safeguarding the future of their peoples. Let us tackle this noble task together.
Thank you.
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