|
The quarterly newsletter of scienceindustries, the Swiss Business Association Chemistry Pharma Life Sciences, keeps you informed about current economic and social issues.
|
|
Termination initiative
Bilateral agreements safeguard Switzerland’s position as a business centre
The Swiss voters decisively rejected the termination initiative with 61.7% on 27 September 2020. By upholding the bilateral agreements with the European Union (EU), Switzerland underlined its commitment to an irreplaceable keystone of a competitive business centre.
The continued existence of the Bilateral I agreements is absolutely crucial for the chemical and pharmaceutical industry, which is Switzerland’s biggest exporter and generates a volume of some 114 billion francs. Almost half of the exports of our industry are destined for the EU. The Bilateral I agreements are a prerequisite for regulated access to the EU common market, and as such an important locational factor for our member companies. The agreement on the free movement of persons ensures Switzerland's access to qualified European workers, which is of material importance for our research-focused industry needing highly qualified staff. Among the other Bilateral I agreements, the mutual recognition agreement (MRA) and the research agreement are particularly important to the members of scienceindustries.
With the Bilateral agreements, Switzerland and the EU built a solid formal framework for their partnership, in spite of the fact that Switzerland is not a member of the EU. The modernisation of this relationship by way of a framework agreement is in the best interests of the chemical, pharmaceutical and life sciences industries. We therefore sincerely welcome the efforts of the Federal Council to negotiate a viable solution for the future that is acceptable to both parties. At present, there does not seem to be any realistic alternative to the bilateral approach. No free trade agreement, however comprehensive, would ensure similarly good access to the EU internal market for Switzerland as the Bilateral agreements.
|
|
Responsible business initiative
RBI leads to legal uncertainty
The acceptance of this initiative would establish globally unique liability risks for many companies and corporate groups. This solo effort by Switzerland would put many companies in a weaker position than their international competitors.
scienceindustries and its members support the general spirit of the initiative: the ambition to protect human rights and environmental standards is praiseworthy. Our members exercise this responsibility in the context of corporate social responsibility programmes or the UN’s Global Compact. Switzerland has also committed to the OECD’s Guidelines for Multinational Enterprises. Companies apply these guidelines by way of due diligence processes and a mediation mechanism that focuses on finding solutions without having to resort to the courts.
The counterproposal adopted by Parliament takes up this proven international approach and raises the duties imposed on companies to a very high level. scienceindustries supports this indirect counterproposal. The RBI on the other hand aims to introduce liability rules that are unique in the world, a momentous reversal of the burden of proof, and due diligence obligations that ignore the limits of companies’ abilities to influence and control their environment. The RBI poses a great risk to Switzerland as a business centre.
|
|
Plant protection initiatives
Extreme plant protection initiatives widely rejected
The Federal Council and Parliament rightly reject the two plant protection initiatives. Both Councils clearly rejected the drinking water initiative and the anti-pesticides initiative during the autumn session.
The drinking water initiative, which wants to make direct subsidies dependent on the use of plant protection products and biocides, would massively reduce regional food production. A study done by Agroscope also showed that the drinking water initiative will actually cause harm to the environment, because more food would have to be imported. The anti-pesticide initiative goes even further and bans the import of food products that contain or were manufactured with the support of synthetic pesticides. This initiative would greatly reduce the regional production of food and food security.
By clearly rejecting both these extreme initiatives, the Federal Council and Parliament acknowledge that safety in the use of plant protection products is already guaranteed today. Both initiatives also harm Switzerland's standing as a research centre. They set the brakes to the further development of purposeful and environmentally more benign plant protection products and should therefore be rejected.
|
|
Industrial tariffs
Politics must ease the burden on consumers and the economy
The Council of States wants to discuss the abolition of industrial tariffs in order to provide relief to the business sector, reduce prices for consumers, and strengthen Switzerland as a production and business location.
scienceindustries warmly welcomes the Council of States’ decision to support the abolition of industrial tariffs. With this, it is saying yes to a welfare gain of 860 million francs and administrative relief for companies (among others, by simplifying the customs tariff structure and cancelling special procedures) of 100 million francs. The abolition of industrial tariffs would also lead to price reductions for consumers (e.g. on cars, bicycles, personal care products, household appliances, shoes, textiles and clothes) of 350 million francs, and strengthen Switzerland as a production and business location.
The Swiss economy urgently needs targeted measures to sustainably improve structural framework conditions and the country’s locational appeal. By agreeing to abolish industrial tariffs (19.076), policymakers can independently and permanently improve framework conditions for Swiss SMEs, in particular in view of the great challenges currently facing the business sector. scienceindustries now expects further discussions to follow the example set by the Council of States so that the abolition of industrial tariffs can take effect as planned on 1 January 2022.
|
|
Law on explosives precursors
Access for professional users must not be restricted
In the autumn session, Parliament adopted the provisional law on substances against the recommendation of scienceindustries. It now is important that the Federal Council and the administration will not follow the EU and extend the precursor legislation to professional users.
scienceindustries regrets Parliament's decision to adopt the Federal Act on Precursors for Explosive Substances. scienceindustries now expects the Federal Council to keep its promise and only limit access to explosives precursors for private individuals, and not to expand this to professional users at a later stage.
The EU expanded its regulations in this regard to professional users in industry and agriculture in 2019. These new obligations led to substantially higher administrative costs for companies in the EU.
|
|
Free trade agreements FTA
FTA Malaysia and Indonesia - No exclusion of palm oil
The important decision of the National Council regarding the three cantonal initiatives makes it possible to continue the negotiations with Malaysia and the ratification process with Indonesia. This is a clear vote in favour of the Federal Council's sustainability strategy for free trade agreements.
The National Council correctly assessed the initiatives of the cantons of Fribourg (18.320), Jura (18.325) and Bern (18.317). In our opinion it is not conducive to categorically exclude products from the free trade agreements with Malaysia and Indonesia. An exclusion of important products would cause the breakdown of the negotiations and put Swiss companies at a disadvantage to their competitors in the EU and the member states of the Trans-Pacific Partnership (TPP).
The inclusion of palm oil will not jeopardise the domestic production of oil seeds. By establishing a closer relationship between trade partners, free trade agreements also make the joint pursuit of sustainable production possible. The exclusion of important products would have sent the wrong signal to potential free trade partners and called into question Switzerland's credibility as a reliable partner.
|
|
Cost-reduction package 1
Pharmaceutical industry makes above-average contribution to reduction of costs
Parliament expressed its basic approval of an experimentation article, and the National Council will discuss a reference price system in October.
Although the proposed experimentation article was improved by Parliament, it continues to question our principle of territoriality. For example, pilot projects for the assumption of the costs of treatment abroad should be permitted outside the scope of cross-border cooperation. As a result, Swiss premium payers would increasingly finance foreign healthcare infrastructures while the reduction of domestic infrastructure is promoted.
It is encouraging that the SSCH-NC has taken a stance against a reference price model for medication. scienceindustries decisively rejects such a system as it would not only reduce healthcare security, but also increase insured persons’ cost participation, without bringing any noticeable premium reductions. The area of medicinal products is the only aspect of healthcare where prices are regularly and systematically reviewed. The pharmaceutical industry makes an above-average contribution to the reduction of healthcare costs.
|
|
Cost-reduction package 2
Principle of cost-effectiveness hinders innovation
The debates about the savings measures in the health sector are continuing. The Federal Council has started the consultation process for the second cost-reduction package.
The pharmaceutical industry is willing to discuss price models that apply discounts to medication prices. This can potentially provide patients with faster access to treatments that have been authorised by Swissmedic. However, the further measures that are proposed will endanger planning and healthcare security. One example here is the principle of cost-effectiveness that was introduced through the back door. It harms our position as a research location and hinders innovation. This also creates legal uncertainty regarding the process of determining medication prices, and eliminates potential improvements to price models. We also reject targets that hinder and restrict access to innovations. Together with the introduction of an initial consultation centre, targets present a critical problem and will lead to rationing and a worsening in quality. Before new restrictive measures are introduced, financing disincentives must be eliminated and the ‘outpatient before inpatient’ principle introduced.
|
|
ERI Dispatch
Parliament supports education, research and innovation
The Federal Council asked for almost 28 billion francs to support education, research and innovation for the period from 2021 to 2024. Encouragingly, the National Council and Council of States approved this request, so that ERI has been given almost two billion francs more than in the previous period.
With 11 financing decisions included in the ERI Dispatch 2021 to 2024, the Federal Council requested a total of 27.9 billion francs. The Federal Council justified this increase by citing digitisation projects. During the parliamentary process, scienceindustries steadfastly and successfully campaigned that the approved financing be sufficient to ensure continuity in education, research and innovation while still allowing digitisation. This is the only way in which Switzerland can remain a leading centre of ERI.
During final vote of the autumn session, the National Council voted in favour of the Federal Act on the Promotion of Research and Innovation with 194 to 2 votes and 0 abstentions, while the Council of States decisively supported the Act with 44 to 0 votes and 0 abstentions. In principle, this provides players in the field of education, research and innovation with the important planning security they need for the next four years. The National Council will discuss the remaining differences in the winter session so that the bill can be finalised by the end of the year.
|
|
scienceindustries is the Swiss business association for the chemical, pharmaceutical and life sciences industries. Its around 250 member companies generate more than 98% of their revenues abroad. As Switzerland's biggest export industry, this sector contributes 47% to total exports and almost 40% to private research expenses in Switzerland
Stephan Mumenthaler, Director
Marcel Sennhauser, Deputy Director and Head of Communications & Public Affairs
|
|
|
|
|
