Swiss links to the US economy: the global economy has been in the doldrums for quite a while now. Each one of us awaits a recovery. Swiss News looks at how the US economic pick up can influence the recovery of the Swiss economy.

AuteurO'Brien, Tom

Not only are the United States and Switzerland tied together by a deeply held love of liberty, but maybe, and more importantly, by a close relationship bound by money, investment and trade.

The total Swiss investment in the US last year was $274 billion and the total US investment in Switzerland was $268 billion. In the form of direct investments alone, Switzerland has invested in the US an amazing amount of $8,013.70 per man, woman and child in Switzerland.

Also, the US is the largest direct investor in Switzerland, accounting for 8.5 per cent of US direct investment, and ranking Switzerland as the fourth most important destination for US investment dollars.

So how then does Switzerland manage to attract such a strong interest from the US business community? Well the answer is simple as the Swiss-American Chamber of Commerce (SACC) is keen to point out.

"Switzerland has an effective and transparent tax system, moderate tax rates, accessible tax authorities, and the availability of tax concessions and rulings," states the SACC.

Other factors that swing in Switzerland's favour are its highly qualified labour force and more flexible labour laws than in most other European countries. Add to that the high quality of life, excellent educational institutions and low crime rate and you'll see those US investment dollars queuing up to be let in.

Important Test Market

Switzerland is certainly one of the most sought after business location for major US corporations. Over the last year we've seen such US notables as razor blade manufacturer Gillette. retail giant Wal-Mart, internet auction house Ebay, fashion empire Ralph Lauren and consumer goods giant Procter & Gamble all move their European headquarters to Switzerland.

American businesses are even. being advised to use Switzerland as a test market for products they intend to try and sell in Europe.

The US department of trade's Country Commercial Guide (CCG) describes Switzerland as "an excellent test market for businesses hoping to introduce new products to Europe".

It cites the country's highly developed, multilingual market, its location in the middle of Europe, and its well-educated and affluent population.

This advice is not news to at least two American companies--McDonalds and Starbucks--which have already used Switzerland as a test bed for planned overseas expansion.

Close Economic Ties

US Senator Phil Gramm is also vice president of Switzerland's largest banking concern, UBS. He recently...

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