Trading Partner Portal: Switzerland
Overview
Toward a US-Swiss Trade Agreement
Competitive Enterprise Institute, February 7, 2024
Trade Overview
Switzerland is a landlocked country in central Europe, known for its alpine lakes, tall mountains, small farms, and thriving cities. It boasts a population of around 8.85 million people and has a GDP of $884.94 billion. Its capital city is Bern, and judicial center is located in Lausanne, its large cities house much of its industry and commerce. It is bordered by France to the west, Germany to the north, Austria to the east, and Italy to the south. Its well-known for its neutrality in many world affairs throughout history, with Geneva being on of their most used cities for many internal and external organizations like the UN.
U.S. – Swiss Trade
Two-way trade between the United States and Switzerland was approximately $80.08 billion in 2023. The United States exported over $27.78 billion to Switzerland, making it the 17th largest export destination for the U.S. Exports consisted of $11.19 billion in primary metal manufacturing, $5.02 billion in chemicals, and $4.3 billion in miscellaneous manufactured commodities. Other top exports included used or secondhand merchandise ($1.85 billion), and transportation equipment ($1.53 billion).
Imports from Switzerland were $52.19 billion, with the top categories being chemicals ($19.81 billion), computer/electronic products ($8.43 billion), primary metals ($7.21 billion), goods returned ($4.52 billion), non-electrical machinery ($3.39 billion). (US Department of Commerce)
California – Switzerland Trade Relations
In 2023, California was one of the top state exporters to Switzerland with over $1.88 billion. Switzerland is California’s 18th largest export destination. Chemicals were credited with $970 million. Miscellaneous manufactured commodities with $259 million. Computer and electronic products with $206 million. Second-hand merchandise held with $171 million and lastly transportation equipment with $61 million.
Imports into California from Sweden totaled $3.44 billion in 2023 with top imports including: computer and electronic products ($804 million), reimports ($679 million), primary metals ($535 million), non- electrical machinery ($310 million), and chemicals ($286 million). (U.S. Department of Commerce)
FDI – Switzerland
According to the Select USA, in the United States, Switzerland is one of the largest investors in R&D in the U.S., with more than $12.9 billion invested in 2022. In 2023, the U.S. direct investment position was $238.2 billion into Switzerland, while Swiss investment in the U.S. reached $351.5 billion. Switzerland is the 7th largest source of FDI in the U.S. as of 2022, with Swiss FDI in the U.S. supporting 380,300 jobs and contributing $16.8 billion to expanding U.S. exports. The top industry sectors for Swiss FDI in the U.S. are real estate, industrial equipment, software and IT services, food and beverages, financial services, and business services. (Select USA)
In California, Switzerland was the sixth largest source of FDI through foreign-owned enterprises (FOEs) in 2023. Swiss FOEs in California provided over 54,955 jobs through 954 firms amounting to $6.29 billion in wages. The top jobs by sector are manufacturing, professional/business services, wholesale trade, financial activities, and retail trade (World Trade Center Los Angeles FDI Report).
We Need a Free Trade Deal with Switzerland
The Heritage Foundation, August 8, 2018