Switzerland Country Profile Switzerland Country Profile Politics Economy Trade & Industries General Profile Total area 41,277 sq km Population 7,655,628 (July 2012 est.) 2007 2008 2009 2010 2011 Growth World Population YoY (in billions) 6.6 6.7 6.8 6.9 7.0 1% Government type formally a confederation but similar in structure to a federal republic Chief of state President of the Swiss Confederation Eveline WIDMER-SCHLUMPF Head of government President of the Swiss Confederation Eveline WIDMER-SCHLUMPF Capital Bern temperate, but varies with altitude; cold, cloudy, rainy/snowy winters; Climate cool to warm, cloudy, humid summers with occasional showers German (official) 63.7%, French (official) 20.4%, Italian (official) 6.5%, Language Serbo-Croatian 1.5%, Albanian 1.3%, Portuguese 1.2%, Spanish 1.1%, English 1%, Romansch (official) 0.5%, other 2.8% (2000 census) Major City Zurich, Geneve, Basel, Bern, Lausanne Economy Profile 2009 2010 2011 World GDP Real -0.8% 5% 3.6% Growth World GDP (in 58.1 63.3 70.2 Trillions) SwitzerlandGDP -1.9% 2.7% 2.1% Profile General Real Growth GDP $665.9 billion (2011 est.) Chapter: Chapter: 1 GDP – Per capita $43,400 (2011 est.) agriculture: 1.2% GDP – Composition industry: 27.5% by sector services: 71.3% (2011 est.) Inflation 0.4% (2011 est.) Swiss francs (CHF) per US dollar - Exchanges Rates 0.8723 (2011 est.) Primary Economy Manufacturing, services, banking Sector Unemployment 3.1% (2011 est.) Rate Economy Profile Economy Chapter: Chapter: 2 Ports and Basel Terminals International Basel/Mulhouse Airport, Bern Airport, Geneva International Airport, Lugano Airports Airport, Zürich - Unique Airport. Council of States - percent of vote by party - NA; seats by party - CVP 13, FDP 11, SVP 5, SPS 11, other 6; National Council - percent of vote by party - SVP 26.6%, Election results SPS 18.7%, FDP 15.1%, CVP 12.3%, Greens 8.4%, GLP 5.4%, BDP 5.4%, other 8.1%; seats by party - SVP 54, SPS 46, FDP 30, CVP 28, Green Party 15, GLP 12, BDP 9, other small parties 6 Chief, Federal Dept. of Defense, Civil Protection, & Sports Ueli MAURER Chief, Federal Dept. of Economic Affairs Johann SCHNEIDER-AMMANN Chief, Federal Dept. of Finance Eveline WIDMER-SCHLUMPF Chief, Federal Dept. of Foreign Ministry Name Affairs Didier BURKHALTER Chief, Federal Dept. of Home Affairs Alain BERSET Chief, Federal Dept. of Justice & Police Simonetta SOMMARUGA Chief, Federal Dept. of Transportation, Communications, & Energy Doris LEUTHARD Federal Chancellor Corina CASANOVA Chmn., Swiss National Bank Philipp HILDEBRAND Christian Democratic People's Party (Christlichdemokratische Volkspartei der Schweiz or CVP, Parti Democrate-Chretien Suisse or PDC, Partito Popolare Democratico Svizzero or PPD, Partida Cristiandemocratica dalla Svizra or PCD) [Christophe DARBELLAY]; Conservative Democratic Party (Buergerlich- Demokratische Partei Schweiz or BDP, Parti Bourgeois Democratique Suisse or PBD, Partito Borghese Democratico Svizzero or PBD, Partido burgais democratica Svizera or (PBD)) [Hans GRUNDER]; Free Democratic Party or FDP.The Liberals (FDP.Die Liberalen, PLR.Les Liberaux-Radicaux, PLR.I Liberali, Ils Liberals) [Fulvio Political parties PELLI]; Green Liberal Party (Grunliberale or GLP, Parti vert liberale or PVL, Partito and leaders Verde-Liberale or PVL, Partida Verde Liberale or PVL) [Martin BAUMLE]; Green Party (Gruene Partei der Schweiz or Gruene, Parti Ecologiste Suisse or Les Verts, Partito Ecologista Svizzero or I Verdi, Partida Ecologica Svizra or La Verda) [Ueli LEUENBERGER]; Social Democratic Party (Sozialdemokratische Partei der Schweiz or SPS, Parti Socialiste Suisse or PSS, Partito Socialista Svizzero or PSS, Partida Socialdemocratica de la Svizra or PSS) [Christian LEVRAT]; Swiss People's Party (Schweizerische Volkspartei or SVP, Union Democratique du Centre or UDC, Unione Democratica di Centro or UDC, Uniun Democratica dal Center or UDC) [Toni BRUNNER]; and other minor parties Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. Its economic and political stability, transparent legal system, exceptional infrastructure, efficient Switzerland capital markets, and low corporate tax rates also make Switzerland one of the world's most competitive economies. The Swiss have brought their economic Economy practices largely into conformity with the EU's, to enhance their international Overview competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. The fate of the Swiss economy is tightly linked to that of its neighbors in the euro zone, which purchases half of all Swiss exports. The global Terminals nd financial crisis of 2008 and resulting economic downturn in 2009 stalled export demand and put Switzerland in a recession. The Swiss National Bank (SNB) Ports Ports a during this period effectively implemented a zero-interest rate policy to boost the economy as well as prevent appreciation of the franc, and Switzerland's Chapter: Chapter: 3 economy recovered in 2010 with 2.7% growth. The sovereign debt crises currently unfolding in neighboring euro-zone countries pose a significant risk to Switzerland's financial stability and are driving up demand for the Swiss franc by investors seeking a safehaven currency. The independent SNB has upheld its zero-interest rate policy and conducted major market interventions to prevent further appreciation of the Swiss franc, but parliamentarians have urged it to do more to weaken the currency. The franc's strength has made Swiss exports less competitive and weakened the country's growth outlook; GDP growth fell to 2.1% in 2011. Switzerland has also come under increasing pressure from individual neighboring countries, the EU, the US, and international institutions to reform its banking secrecy laws. Consequently, the government agreed to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The government has renegotiated its double taxation agreements with numerous countries, including the US, to incorporate the OECD standard, and in 2011 it reached deals with Germany and the UK to resolve outstanding issues, particularly the possibility of imposing taxes on bank deposits held by foreigners. These steps will have a lasting impact on Switzerland's long history of bank secrecy. Switzerland Economy Overview Economy Switzerland Chapter: Chapter: 4 Switzerland welcomes FDI in manufacturing, services, and research and development. The State Secretariat for Economic Affairs and its Business Location Switzerland are the government bodies charged with facilitating Trade & such investment. Strict limits on the entry of foreign workers rule out the Investment entry of firms in labour-intensive industries. Switzerland offers a high level Policy of protection for all forms of intellectual property. Patents, industrial designs and models, trademarks and copyrights are legally recognised in Switzerland. To promote an open global economy that encourages cross-border trade and investment by business to foster job creation and sustainable development, and improve living standards. Shape the multilateral trade policy agenda and G20 deliberations on this subject by contributing practical business recommendations. Launch an updated version of ICC’s Guidelines on International Investment to promote cross-border investment and multilateral National investment liberalization in the current global investment Priority environment. Work toward the adoption of a multilateral instrument to foster a predictable, secure and stable climate for international investment that will contribute to global economic growth and job creation. Develop business views to support ICC’s advocacy efforts to stem trade and investment protectionism, especially in a challenging economic environment. leading position in Cleantech research, business and considerable progress in knowledge and technology transfer, innovation leading position in Cleantech products and services, 2020 Vision Cleantech stands for Swiss quality. Though not a European Union (EU) member state, Switzerland has become increasingly integrated with the EU by concluding bilateral issue-specific accords. Switzerland acceded to the European Free Trade Association (EFTA) in 1960 and signed a Free Trade Agreement with the European Economic Community (EEC) in 1972. Currently Switzerland is seeking to negotiate a Swiss-EU free trade agreement (FTA) on unprocessed agricultural products and a framework agreement on European electricity sharing. Trade in processed agriculture products was liberalised as part of the 2004 package of bilateral accords with the EU. The Swiss-EU relationship was enhanced by a 2006 Swiss referendum which approved a €630 million (A$1.2 billion) package of aid to the Foreign Policy ten new EU member states. Switzerland became a member of the Schengen area on 12 December 2008, and full implementation to include airports took place on 29 March 2009. The Swiss Government had exploratory talks with the United States on a bilateral FTA in 2005-06 but this lead to a Trade and Investment Cooperation Forum rather than the official launch of FTA negotiations. Switzerland plays a role in the Asia-Pacific region, primarily through significant investment activity, but