Swiss president labels EU steel tariffs as counterproductive

EU steel duties: Guy Parmelin does not like it Keystone-SDA

Guy Parmelin has expressed his discontent over steel tariffs recently approved by the European Union.

Parmelin, who is also economics minister, called the tariffs “unacceptable” in an interview with Swiss public radio SRF on Saturday. Parmelin said he had warned European Commission President Ursula von der Leyen of a possible “own goal”. Since Switzerland is strongly integrated in steel supply chains, e.g. in the aerospace sector, he said these tariffs could prove counterproductive.

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The EU plans to introduce new measures to defend its steel sector from July 1. These include, among other things, a reduction of duty-free import quotas by about half compared to what has been planned so far, including for Swiss producers. The Swiss government and the European Commission are expected to negotiate new quotas within the framework of the World Trade Organisation.

Dissatisfaction with cross-border workers regulations

Parmelin also commented on the new EU regulation on unemployment benefits for cross-border workers. When cross-border workers lose their jobs, they receive unemployment benefit from their country of residence. In future, they should receive these benefits from the country in which they last worked. The State Secretariat for Economic Affairs (SECO) estimates the resulting additional costs for Switzerland at up to CHF900 million per year.

“I can only say that this does not help,” said Parmelin, adding that he was “surprised” that the EU had raised as many as two “sensitive issues” in such a short time, while the package for the “stabilisation and development of Swiss-EU relations” was being discussed in parliament.

The President of the Swiss Confederation referred to the ‘modus vivendi’ negotiated by Bern and Brussels in connection with the package of agreements. In it it was agreed that possible problems should be avoided during the discussions in the Federal Parliament so as not to hinder the ratification process.

US trade deal stalled

Switzerland’s negotiations with the US on a trade agreement are also proving difficult. The uncertainty surrounding the US Supreme Court ruling does not help, Parmelin said.

The Swiss government is waiting for a US response to Switzerland’s written requests. Parmelin was pragmatic, but also emphasised that the Swiss government does not know what the US might ultimately choose to do.

Currently, Washington and Bern are conducting negotiations on a trade agreement, which should have been concluded on March 31. The US Supreme Court decision at the end of February, which had ruled that the president had abused his powers by imposing high tariffs on trading partners, has shuffled the cards.

Adapted from Italian by AI/ac

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