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Switzerland has concluded a free trade agreement with the South American Mercosur states. Reactions to the agreement vary widely.

Switzerland Today

Dear Swiss Abroad
 
After eight years of negotiations with multiple interruptions, Switzerland, along with the other EFTA states, has finalised a free trade agreement with the South American Mercosur states. However, not everyone in the country is happy about it.
 
Today's briefing also covers the Geneva branch of the controversial Gaza Humanitarian Foundation and the European Women's Football Championship, where the Swiss women's team played their first match yesterday.
 
Enjoy your read!

Economics Minister Guy Parmelin has travelled to Buenos Aires, Argentina, for the negotiations.
Economics Minister Guy Parmelin has travelled to Buenos Aires, Argentina, for the negotiations. Keystone / Anthony Anex

After eight years of negotiations, Switzerland, together with the other EFTA states, has concluded a free trade agreement with the South American Mercosur states. Reactions have been mixed.

The Swiss tech industry, for example, has welcomed the agreement. Martin Hirzel, President of Swissmem, told Swiss public broadcaster, SRF that he is confident the trade between the tech sector and the Mercosur states could double as a result of the free trade agreement. Meanwhile, the agricultural sector is sceptical, and the Greens are threatening a referendum. They fear that free trade in agriculture goods could undermine the protection of rainforests and the rights of local populations.

The Mercosur states are among Switzerland’s most important export markets outside Europe. The Swiss federal government refers to a study by the umbrella organisation Economiesuisse, which suggests the potential for the Swiss economy in the Mercosur states is greater than almost anywhere else.

The new agreement expands Switzerland’s free trade network to include four countries: Brazil, Argentina, Uruguay and Paraguay. According to its foreign trade strategy, Switzerland is striving for global trade liberalisation, regulated by the World Trade Organisation (WTO), writes SRF. However, this is blocked by the US, which is why the Swiss government is increasingly focusing on bilateral agreements and an active free trade policy.

Palestinians carry bags of food and aid parcels.
Palestinians carry bags of food and aid parcels. Copyright 2025 The Associated Press. All Rights Reserved.

The Swiss Federal Supervisory Authority for Foundations (FSAF) has announced that the controversial Gaza Humanitarian Foundation (GHF) is likely to close its Geneva branch.

According to FSAF head Nils Güggi, the Geneva branch has failed to meet various obligations: “It no longer has a member of the Board of Trustees resident in Switzerland who is authorised to sign, no bank account in Switzerland, no valid address and no auditors.” A 30-day period is still running during which creditors can come forward.

An investigation by Swiss public broadcaster, RTS delved deeper into the matter. According to their findings, a reputable Geneva lawyer was persuaded by international business partners to give the foundation an address and representation in Switzerland. This lawyer’s name, along with those of two foreign businessmen, allowed the Gaza Humanitarian Foundation to be entered in the Geneva commercial register at the beginning of the year. However, following an article in Le Temps, the lawyer resigned. He stated that he realised he had not received full information about the foundation’s true purpose, which he found to be at odds with his values.

The non-governmental organisation Trial International had previously filed two complaints against the Geneva-based GHF, criticising the fact that a foundation accused of violating international humanitarian law had its headquarters in Geneva – the same city where the Geneva Conventions are deposited. While the dissolution of the Geneva branch would sever the GHF’s direct connection to Switzerland, its controversial aid distribution in Gaza remains a global issue.

There was still reason to celebrate: Nadine Riesen celebrates the 1:0 against Norway.
There was still reason to celebrate: Nadine Riesen celebrates the goal against Norway. Keystone / Michael Buholzer

In the early afternoon, some dedicated fans left their homes, donned their jerseys and made their way to St. Jakobpark in Basel for the football tournament.

The start of the Women’s European Championship (almost) lived up to expectations. The atmosphere was upbeat and the game offered both highs and lows. In the end, the Swiss national team lost 2:1 to Norway in the second match of the opening evening.

Despite the defeat, the Swiss media were unanimous: the women’s national team exceeded expectations in the opening match, especially during the first half. “It was like pulling a first half out of a bag of magic tricks that you didn’t think was possible. Rub your eyes, something is happening,” wrote the Neue Zürcher Zeitung (NZZ). Tages-Anzeiger added: “The feeling after this 1:2 defeat? Not so bad. It doesn’t have to be. Because this national team is ready for the European Championship, for a football festival. And so is Switzerland.”

In CH Media newspapers, the Swiss national team players reflected on their opening loss at the European Championships. Goalscorer Nadine Riesen expressed disappointment at missing the chance for a 2:2 draw but also addressed the fans: “To see how many people were there to support us was indescribable. You can’t even imagine something like that beforehand – you have to experience it.”

Everyone is already talking about self-driving cars. Now, for the first time, autopilot trains are rolling through the Swiss countryside.
The self-driving trains of the SOB Keystone

While everyone is talking about self-driving cars, self-driving trains have now begun rolling through the Swiss countryside.

Specifically, on the line between Arth-Goldau and Biberbrugg, Südostbahn (SOB) autopilot trains are equipped with a driver assistance system. Once the driver has started the train, the technology controls the vehicle. Starting, speed, response to signals and braking are all handled by the assistance system.

However, locomotive crews are still required in the driver’s cab for the entire journey, as the autopilot is merely an assistance system, explained Roger Dällenbach, overall project manager at SOB. “The locomotive crew must still monitor the route and intervene in case of disruptions,” he told SRF News.

Automation has also reached the running shoe industry. On, the Swiss running shoe company, has opened its first fully automated production site in Zurich for its Lightspray shoe. According to On co-founder Caspar Coppetti, around 300 employees typically work on a conventional shoe, but at the new production site, a single robot produces the shoe in just three minutes.

Translated from German using DeepL/amva

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