Switzerland caught between EU and US on global corporate tax deal

Karin Keller-Sutter, who holds the rotating Swiss presidency, spoke to the media on the sidelines of WEF. Keystone-SDA / Laurent Gillieron

Swiss President Karin Keller-Sutter told the media on the sidelines of the World Economic Forum that Switzerland is under pressure as the US and EU diverge on trade relations and various policy issues.

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Switzerland is caught between the EU and the US with regard to corporate taxation, Karin Keller-Sutter, who holds the rotating Swiss presidency, told the media at a press conference in Davos on Thursday. Since January, Switzerland has been applying the minimum tax rate on multinational companies put forward by the Organization for Economic Cooperation and Development (OECD).

However, Brussels is still exerting “financial pressure” on Bern to do more. While on the other side, the US will not apply the OECD minimum tax rate in accordance with President Trump’s latest decision. Switzerland will have a plan to defend the interests of the Swiss economy, Keller-Sutter said.

Trump and his policies have been a topic in all bilateral talks during WEF. “Nobody knows exactly what will come from him,” she said. None of her interlocutors had had any contact with him since his inauguration on Monday. They included Ukrainian President Volodymyr Zelensky, whom Keller-Sutter met on Tuesday at the WEF.

On the same wavelength as China

Keller-Sutter also spoke with Chinese Vice Premier Ding Xuexiang on Tuesday. According to the President of the Swiss Confederation, she is “on the same page” with him regarding the tariffs threatened by the Trump administration. These would “naturally” also affect Switzerland.

However, she could imagine that there would be a surprise and that the measures would not be as harsh as threatened. Both Switzerland and China agreed that a trade war would only result in losers.

Milei invitation

The President of the Swiss Confederation also met the ultra-liberal Argentinian President Javier Milei at the WEF. She said afterwards that he had great sympathy for Switzerland. He had also invited her to Argentina after their “extremely cordial meeting”.

She had also given him the message that the talks between European Free Trade Association (EFTA) and Mercosur states should be concluded soon. The EFTA states including Switzerland, Norway, Iceland and Liechtenstein are negotiating a free trade agreement with the Mercosur states of Brazil, Argentina, Paraguay and Uruguay. According to the Swiss President, Milei assured her that the talks are progressing well.

Ukraine protection mandate

Keller-Sutter and Swiss Foreign Minister Ignazio Cassis spoke with representatives of Ukraine, including about a possible protection mandate. “The talks are ongoing,” said the Swiss President.

Under a protection mandate, Switzerland mediates on request between two countries that are no longer on speaking terms. In the current case, Ukraine requested such a mandate in order to negotiate with Russia. Keller-Sutter told Keystone-SDA news agency that there are currently no such requests for other conflicts, for example in the Middle East.

Translated from German by DeepL/jdp

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