Parmelin: negotiations with the US beyond March 31 for the commercial agreement (cross-border guide)

Di Valerie Linc · Published on

The deadline set for the end of the month is no longer valid due to the decision of the Supreme Court of the United States.

Contesto

TL;DR - Switzerland to continue US trade talks past March 31 deadline. - US Supreme Court cancels specific tariffs, imposes flat 10% tax. - Switzerland aims to boost exports, reduce US food import dependence. ## Key facts - Decision Maker: Swiss Federal Councillor Guy Parmelin - Original Deadline: March 31 - New Tariff Rate: 10% flat rate for all imports - Tariff Duration: 150 days - Highest Tariff: 25% on slaughtered meat, $1.4 billion annual value - Swiss Exports: Over 10 billion francs in goods and services to US in 2022 - Swiss Food Imports: Over 50% of food products from the US - Fund for Exporters: 100 million francs proposed to help affected exporters Swiss Federal Councillor Guy Parmelin announced that Switzerland will continue negotiating a trade agreement with the United States even after the original March 31 deadline. The decision was made following the U.S. Supreme Court's ruling to overturn specific tariffs imposed on various countries. The situation changed due to the Supreme Court's decision, which stated that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose general customs tariffs. Washington has therefore decided to introduce new additional tariffs, a flat 10% for all, under another legal basis. These will replace the previous ones for a period of 150 days. 'Negotiations continue, and there is no need to wait until July to reach a result,' Parmelin concluded. Switzerland and the U.S. have already held two meetings, with two more planned. Now, the Supreme Court's decision calls into question part of the legal basis applied by the U.S. The deadline set for the end of the month is effectively no longer valid, the federal councillor revealed to RSI microphones. The U.S. Supreme Court overturned specific t...

Dettagli operativi

The US Supreme Court has decided to cancel the specific tariffs imposed on various countries, deeming them illegal. The Supreme Court ruling established that the IEEPA (International Emergency Economic Powers Act) does not authorize the president to impose general customs tariffs. Washington has therefore decided to introduce new additional tariffs, a flat 10% for everyone, based on another legal foundation. These will replace the previous ones for a period of 150 days. The situation has changed due to the US Supreme Court's decision to cancel the specific tariffs imposed on various countries. The Supreme Court ruling established that the IEEPA does not authorize the president to impose general customs tariffs. This means that products imported from the United States will now be subject to an additional 10% tax, effective today. This decision could have a significant impact on Ticino's trade with the US. For example, a Lugano-based company importing American sewing machines might be forced to pay an additional 10% tax on the goods, which would mean an increase of 1,500 francs per 15,000-franc order. This could raise the final product price and reduce the company's competitiveness in the Ticino market. Ticino's Minister of Economy, Guy Parmelin, stated that negotiations with the US for a trade agreement will need to continue beyond March 31. 'The Supreme Court's decision is an important factor to consider in our negotiations with the US. We must work toward an agreement that fosters trade and investment between the two countries,' Parmelin said. The current situation differs from the previous one, where specific tariffs were imposed on various products. For instance, textiles imported from the US were subject to an additional 20% tax. The Supreme Court ruling cancele...

Punti chiave

Parmelin: negotiations with the USA to continue beyond March 31 for a trade agreement. Switzerland will continue to negotiate a trade agreement with the United States beyond the expected deadline of March 31. This decision was made due to the US Supreme Court's decision to cancel specific tariffs imposed on various countries. The situation has changed due to the Supreme Court's ruling, which established that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose general customs tariffs. As a result, Washington has decided to introduce new additional tariffs, a 10% flat rate for all, under a different legal basis. These replace the previous ones for a period of 150 days. 'The fact that the Supreme Court has canceled the specific tariffs has created a new situation that forces us to return to our tables to discuss a new agreement,' said Ueli Maurer, President of the Confederation. 'Despite this, negotiations continue and it is not necessary to wait until July to reach a result,' concluded Alain Berset, Minister of Finance. Switzerland and the United States have already held two meetings and two more are planned. Now, the Supreme Court's decision calls into question part of the legal basis applied by the United States. The deadline set for the end of the month is no longer valid. Switzerland has already suffered significant damage due to the change in the United States' trade policy. According to data from the Ticino Statistics Institute (ISTAT), in 2022, more than 10 billion francs in goods and services were exported to the United States. Half of these were subject to 25% tariffs, which increased the spending of Ticino producers. 'We are concerned about the impact that these tariffs could have on our products,' said Mario Chiesa...

Punti chiave

[{"q":"What is the current state of trade negotiations between Switzerland and the United States following the US Supreme Court ruling?","a":"Negotiations continue beyond the March 31 deadline, with two meetings already held and two more planned, to reach a mutually beneficial agreement."},{"q":"How does taxation change for Ticino companies that import fabrics from the United States after the Supreme Court ruling?","a":"After the ruling, textiles imported from the United States are subject to an additional 10% tax, replacing the previous specific duties (e.g., 20%). For example, an order of 10,000 francs could have an increase of 1,000 francs."},{"q":"How does the new 10% tax affect Ticino importers of industrial machinery from the USA?","a":"The additional 10% tax now applies to all products imported from the USA, including industrial machinery. For example, an order of 50,000 francs will be increased by 5,000 francs, reducing the competitiveness of Ticino companies that depend on these products."},{"q":"What are the alternatives for a Ticino company that wants to avoid the 10% tax on US products?","a":"The only current alternative is to negotiate with US suppliers to reduce prices or look for suppliers in other countries. However, the current Swiss-US trade agreement could offer long-term solutions, but they are not yet operational."},{"q":"Which Ticino products could benefit from a trade agreement with the USA according to the Swiss government's forecasts?","a":"The Swiss government aims to export typical Ticino products such as cheese, beer and slaughtered meat. These sectors could see a reduction in trade barriers and an increase in exports to the US."}]

Frequently Asked Questions
What is the current state of trade negotiations between Switzerland and the United States following the US Supreme Court ruling?
Negotiations continue beyond the March 31 deadline, with two meetings already held and two more planned, to reach a mutually beneficial agreement.
How does taxation change for Ticino companies that import fabrics from the United States after the Supreme Court ruling?
After the ruling, textiles imported from the United States are subject to an additional 10% tax, replacing the previous specific duties (e.g., 20%). For example, an order of 10,000 francs could have an increase of 1,000 francs.
How does the new 10% tax affect Ticino importers of industrial machinery from the USA?
The additional 10% tax now applies to all products imported from the USA, including industrial machinery. For example, an order of 50,000 francs will be increased by 5,000 francs, reducing the competitiveness of Ticino companies that depend on these products.
What are the alternatives for a Ticino company that wants to avoid the 10% tax on US products?
The only current alternative is to negotiate with US suppliers to reduce prices or look for suppliers in other countries. However, the current Swiss-US trade agreement could offer long-term solutions, but they are not yet operational.
Which Ticino products could benefit from a trade agreement with the USA according to the Swiss government's forecasts?
The Swiss government aims to export typical Ticino products such as cheese, beer and slaughtered meat. These sectors could see a reduction in trade barriers and an increase in exports to the US.

Related articles