Brexit Miniseries: What Brexit means for Switzerland
A Brexit, in whatever form, will also effect Switzerland. In the worst-case scenario, it may lead to higher tariffs and could plunge the United Kingdom into a recession.
This would seriously affect two types of Swiss companies in particular:
- Companies that produce in Great Britain and export to EU countries.
- Companies that import goods from the European Union to Great Britain to produce their products.
The pharmaceutical industry exports the most to Great Britain. Nearly one third of all exports go to the island, which in 2018 accounted for 2.75 billion Swiss francs worth of goods. Jewelry and related items, machines and electronics and watches worth around 1.25 billion Swiss francs per category were exported there that same year.
Switzerland is prepared
Prevention is better than cure: At the beginning of the year, the Swiss Confederation had already signed five new trade agreements that safeguard most of the rights and obligations that previously applied between the two countries. This includes bilateral agreements that cover road and air traffic, insurance and civil rights.