Implementation of free trade agreement is focus of talks in Saudi Arabia

Bern, 16.07.2017 - Federal Councillor Johann N. Schneider-Ammann visited Saudi Arabia on 15 and 16 July 2017 accompanied by a delegation of Swiss business representatives. He met the Minister for Trade and Investment, Dr Majid Al Qasabi, the Minister of Economy and Planning, Adel Mohammed Faqih and the Minister of Finance, Abdullah Al Jadaan. Bilateral economic relations, cooperation in the framework of the EFTA-Gulf Cooperation Council Free Trade Agreement and the perspectives of cooperation in the light of the Saudi reform “Vision 2030” where in the focus of the discussion.

The working visit, which had been planned for some time, was marked by the current tensions in the Gulf. During his discussions, Federal Councillor Johann N. Schneider-Ammann took the opportunity to express his concerns. He stressed the importance of finding a solution to the crisis through dialogue. Only that way can the Gulf Cooperation Council address the region’s future security policy, economic and social challenges together in a stable environment. The Head of the EAER strongly welcomed the efforts of the Emir of Kuwait and other states to mediate, efforts which Switzerland strongly supports. He discussed also the human rights issues, and he noted that the women rights would be promoted with the implementation of “Vision 2030”.

During talks on bilateral economic relations, the issues addressed included the free trade agreement between the EFTA states and the countries of the Gulf Cooperation Council and remaining difficulties regarding its implementation. The possibility of signing the double taxation agreement in the future was also raised. The mixed economic commission Switzerland-Saudi-Arabia will play a notable role in the implementation of the results of this working visit. A corresponding “Joint Statement” has been signed.

Saudi Arabia is pursuing a plan for the country’s economic future in the shape of ‘Vision 2030’, which aims to diversify the country’s economy, thereby reducing the country’s dependency on oil. Mr Schneider-Ammann was given an insight into these plans during a visit to King Abdullah Economic City – one of the world’s most ambitious construction projects.

Saudi Arabia is by far the largest economy in the Arab region and Switzerland’s second largest trade partner in the Middle East and North Africa after the United Arab Emirates. In 2016 the trade volume between Switzerland and Saudi Arabia amounted to CHF 3.2 billion, with exports of CHF 2.8 billion and imports of around CHF 440 million.

In 2016 Switzerland’s main export products were precious stones and metals, jewellery, pharmaceutical products, machine tools and watches. From Saudi Arabia Switzerland mainly imported precious stones and metals and jewellery. According to the Swiss National Bank (SNB) the value of Swiss direct investment in Saudi Arabia as of the end of 2015 amounted to CHF 938 million, with Swiss firms employing 11,710 people.


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Erik Reumann, EAER Press spokesperson, Tel. +41 79 303 81 53; erik.reumann@gs-wbf.admin.ch


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Federal Department of Economic Affairs, Education and Research
http://www.wbf.admin.ch

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