Switzerland Today

Dear Swiss Abroad,

Another briefing, another news story about Trump’s tariffs. This time, it’s the Swiss pharmaceutical industry that could feel the pressure. However, with six weeks to go before these tariffs take effect, much could still change, as has often been the case in the past.

Also in today’s briefing: if your vegetables taste strange, tyre residue could be to blame, and a study reveals that Swiss public school students are more likely to graduate from university than their private school peers.

Sunny regards from Bern,

Copyright 2019 The Associated Press. All Rights Reserved

Trump’s next tariff blow could hit the Swiss pharma and automotive supply industries.   

Donald Trump has announced a 25% tariff on cars, medicines and semiconductors, set to take effect on April 2. He also warned that “it’ll go substantially higher over the course of a year.” Trump’s aim is to give affected companies time to relocate their manufacturing plants to the US. “The Federal Council is concerned about this development and is following it closely,” said Swiss Economics Minister Guy Parmelin at a media conference today in response to a question from SWI swissinfo.ch.

Switzerland hosts the headquarters of major global pharmaceutical companies, including Roche and Novartis, and is also home to offices of the American firm Johnson & Johnson, all of which manufacture in the country. With pharmaceutical exports making up 60% of Switzerland’s total exports to the US, the new tariff could have a significant impact.

Swiss suppliers to the automotive industry may also feel the impact if German vehicle exports to the US decline. However, as the Neue Zürcher Zeitung (NZZ) writes, “There are still six weeks to go until 2 April. In Trumpian terms, that’s half an eternity.” A lot could, and likely will, change in the coming weeks – so stay tuned.

• Read the full article by Neue Zürcher Zeitung (NZZ):External link(Paywall, in German)
• Reaction by Swiss Economics Minister Guy Parmelin on Swiss public broadcaster, RTSExternal link (in French) and SRFExternal link (in German)

Keystone / Christian Beutler

Today marks a significant step towards securing public acceptance of Switzerland’s agreement with the EU: the Swiss cantons and trade unions have reached a deal on measures to protect domestic wages.

In December, Switzerland and the EU finalised an agreement on future bilateral relations. However, Switzerland was required to soften its wage protection policies to align with EU standards. One major point of contention was expense allowances for EU workers in Switzerland. Under the new rules, these workers will receive expense reimbursements at the rates of their home countries rather than the higher Swiss rates – mirroring the system in place within the EU.

Swiss trade unions had expressed strong concerns over the lack of clarity regarding wage protections, fearing that “wage dumping” – the underpayment of foreign workers below market levels – could create unfair competition for local employees. Without the backing of the unions, the EU-Swiss treaty would have struggled to gain majority support in a Swiss referendum.

The Swiss government has recognised the need for additional safeguards and has developed a three-part protection framework to address these concerns. Following more than 60 roundtable discussions mediated by the government, the Swiss federal government announced the agreed measures at a press conference this afternoon. Swiss Economics Minister Guy Parmelin expressed confidence that the roadmap presented today would pave the way for a final agreement among social partners by April.

• Read the article on Swiss public television, SRFExternal link (in German)

Keystone / Sabina Bobst

Every time a car or truck brakes sharply, tiny fragments of tyre – typically 2.5-40 micrometres in size – break off and are dispersed by rain and wind, writes SWI swissinfo.ch journalist Simon Bradley.

Now, a study commissioned by the Swiss Federal Food Safety Office has found tyre residue in nearly one-third of vegetables sampled. Researchers from the Swiss Federal Institute of Technology Lausanne (EPFL) tested around 100 samples of commonly eaten vegetables and found that “contaminations were detected in all types of vegetables, with 31% of samples containing quantifiable levels of four chemical compounds.”

The cause? Additives used to improve tyre quality and durability. These particles primarily end up in nearby soil, mix with highway runoff, and enter rivers and lakes. Tyre-related pollution is a major issue: a study by the Swiss Federal Laboratories for Materials Science and Technology (EMPA) indicates that tyre wear is responsible for 90% of microplastics released into the environment.

“Since vehicle tyres for the Swiss market are imported exclusively from abroad, a unilateral restriction of tyre additives in Switzerland would lead to significant barriers to trade and is therefore not realistic,” said spokesperson Dorine Kouyoumdjian in an interview with Bradley last year.

Among the tested vegetables were lettuce, cabbage, spinach, onions, potatoes, carrots, tomatoes, peppers, courgettes, and squash. The produce was purchased from both large and small retailers and sourced from Switzerland, Italy, Spain and France.

• Read the article by Swiss public broadcaster, RTSExternal link (in French)
• ‘Polluting particles from car tyres – how worried should we be?’ by SWI swissinfo.ch journalist Simon Bradley (in English)

Keystone / Christian Beutler

A new study has found that more than one in five first-year students in Switzerland drop out of university, with the type of secondary education they completed playing a crucial role.

Students from public upper secondary schools are the most likely to complete their degrees. Only 18.9% of former public grammar school pupils dropped out prematurely, while 75% obtained a bachelor’s degree within the standard period of study.

In contrast, students who graduated from private secondary schools are more likely to discontinue their university studies. The study found that 29.1% of private school students dropped out early. Franz Eberle Professor Emeritus for Pedagogy at the University of Zurich, was interviewed about this study by the Neue Zürcher Zeitung (NZZ): “It’s well known that students who don’t pass the entrance exam at public schools or who later fail to meet graduation requirements often switch to private schools.”

The cantons with the lowest university dropout rates are Nidwalden, Basel-Country, Uri, Appenzell Outer Rhodes, Valais, and Solothurn, while students from Graubünden, Jura, Vaud and Neuchâtel are the most likely to leave university prematurely.

The study also found that students who enrol at a Swiss university with a foreign entrance qualification are the most likely to drop out. Nearly one-third (32.7%) of these students abandon their bachelor’s degree early. “This high rate surprised me,” says Eberle. “It shows that the Swiss baccalaureate is of high quality.”

• Read the full article on the study in the Neue Zürcher Zeitung (NZZ):External link (paywall, in German)

Keystone / Jean-Christophe Bott

Picture of the day

Swiss Alps, 1899. A young hotelier has a vision: a five-star hotel open throughout the winter season. Can his ambitious plan survive hostile weather, difficult staff and demanding guests?

This is the premise of Winter Palace, the first Swiss Netflix series, currently in production (pictured above). Winter Palace marks the first collaboration between the publicly funded Swiss Broadcasting Corporation (SBC) – SWI swissinfo.ch’s parent company –  and the global streaming giant Netflix.