Switzerland set to expand trade with Libya

Oil plant in Libya - Libyan exports to Switzerland mainly consist of oil (medoil) medoil

Now that the United Nations has lifted economic sanctions against Libya, Switzerland is looking to develop its trade ties with Tripoli.

The two countries are already important trading partners, with Switzerland currently importing most of its oil from the North African country.

The head of the Swiss-Arab Chamber of Commerce, Elias Attia, believes Switzerland’s good relations with Libya will leave it well placed to win contracts.

“I think Switzerland will have a good chance after the lifting of sanctions because Libya will not forget its friendly relations with Switzerland,” Attia told swissinfo.

In an effort to foster closer relations, delegates from the Swiss economics ministry and the chamber of commerce are planning separate trips to Tripoli in 2004.

Sanctions

The UN Security Council on Friday voted to scrap sanctions against Libya. The move will trigger the release of up to $2.7 billion, which Tripoli has agreed to pay to the families of the 270 victims killed after the bombing of Pan Am Flight 103 15 years ago.

France and the United States, which has its own separate sanctions on the Tripoli government, abstained in the 13-0 council vote to end the embargoes imposed on Libya after the 1988 mid-air attack of the Boeing jumbo jet over Lockerbie, Scotland.

In 1999, sanctions were effectively suspended after Libya handed over the two men accused of the bombing, although some trading restrictions remained.

Trade figures for 2002 show that Switzerland imported SFr657 million worth of goods from Libya – almost all of it oil.

For its part, Libya imported SFr137 million of goods from Switzerland in the same year with the majority of goods coming from the pharmaceutical and machinery sectors.

Tourism

Attia says the lifting of sanctions will provide huge opportunities for tourism in Libya – which will provide new opportunities for the Swiss.

“Libya’s Mediterranean coast is huge and so beautiful and it’s not exploited at all. When Libya opens up they will badly need hotels and tourist resorts,” Attia says.

Engineering, construction and banking are the main sectors in Switzerland that stand to benefit, Attia says.

“Libyans want to work with Westerners and especially with the Swiss, who have a very good reputation in Libya for quality, precision and reliability.”

swissinfo, Karin Kamp

Libya summary

The UN imposed sanctions on Libya in 1992 in connection with the 1988 Lockerbie bombing.
In 1999 sanctions were effectively suspended after Libya handed over the two men accused of the bombing.
In August 2003, Libya agreed to pay the victims’ families $2.7 billion compensation.
In 2002, Switzerland imported SFr657 million worth of goods from Libya, and exported SFr137 million worth.