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The quarterly newsletter of scienceindustries, the Swiss Business Association Chemistry Pharma Life Sciences, keeps you informed about current economic and social issues.
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Agriculture initiatives
2x NO to the extreme agriculture initiatives
The Swiss people and cantons will vote on the two agriculture initiatives on 13 June. If accepted, these initiatives will harm consumers as reduced supply will lead to massive price increases. Freedom of choice, in particular with regard to regional foods, will be severely restricted.
The drinking water and ban on pesticides initiatives both want to drastically reduce or even ban the use of important production means. As both initiatives have extreme objectives, their consequences will be far-reaching: regional supply will shrink and prices for regional products will rise. A ban on disinfectants in food production would have a negative impact on health. The industry counters these initiatives by proposing a step-by-step reduction of the risks of using plant protection products through innovation rather than the introduction of bans.
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Approval of plant protection products
New approval process for plant protection products
The approval process for plant protection products in Switzerland urgently needs to be reformed. A great many applications get stuck in the approval process, some of them for several years. This unsatisfactory situation has to improve rapidly.
The Federal Council adopted measures to optimise the approval process for plant protection products in February 2021. These include, among others, a shift in responsibilities within the Federal administration. In an international comparison, the current approval process in Switzerland is very slow. For years, hardly any new products have been approved while numerous older products have disappeared from the market. As a result, the selection of active substances available in Switzerland has been critically reduced. The risk of resistance is growing, and the production of regional, healthy and affordable food is jeopardised.
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Initiative for the ban of animal and human experiments
Don’t exclude Switzerland from progress
The aim of the initiative is to free Switzerland from animal and human experiments as well as all related products, services and training. Any and all experiments on animals and humans should be banned, as should the import of products for which animal and/or human experiments were done, such as medication.
The initiative represents a radical approach that could lead to a factual ban on research in the fields of science and technology. Even though experiments on animals and humans are nowadays replaced by alternative methods whenever possible, doing experiments on humans and animals is essential in many areas of life. Among others, this could cut Switzerland off from medical progress and seriously jeopardise the country’s position as a research location. As alternatives have not yet been found for many animal experiments, this is the wrong time to define a time schedule for banning such experiments, thereby jeopardising the future of research in essential areas in Switzerland.
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Cost reduction package 1b
The wrong recipe for a sustainable healthcare system
scienceindustries is keeping a close eye on the negotiations regarding the cost reduction packages. The National Council discussed sub-package 1b during the special session in October 2020. The matter will be discussed by the competent commission of the Council of States (SSHC-S) in April. scienceindustries and other pharma associations have drafted a joint position statement.
We continue to consistently reject the introduction of a reference price system and a right of appeal for health insurance companies. Instead, we favour the detailed regulation at ordinance level of the price gap between original preparations and generic medicine. Medicine prices should continue to be reviewed every three years. The freedom of prescription may not be restricted and biosimilars may generally not be treated on a par with generics. We decisively reject the exclusion of Swissmedic from medication imports as decided by the National Council.
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Parallel imports
Don’t jeopardise patient safety and security of supply in Switzerland
The National Council adopted Motion 19.3202 in spite of its clear rejection by the pharmaceutical industry and the Federal Council. This is the National Council’s way of instructing the Federal Council to propose legislative amendments that will allow parallel imports of medication from EEC countries.
Under certain conditions, parallel imports are already possible today. To ensure patient safety, Swissmedic's approval is imperative. Market supervision would otherwise be impossible, which could lead to a greater influx of counterfeit medication in Switzerland's regular market for medication. This would also substantially weaken the role of Swissmedic and Switzerland's position as a pharmaceutical location. It would be wrong as well as dangerous to weaken Swissmedic without achieving considerable savings for the insured. When prices are regulated by the state, parallel imports don't bring cost savings, but only shift the profits to the middlemen. Because of this dependence, Switzerland will lose its ability to plan and stockpile inventories as the middlemen have no obligation to supply the country.
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Free trade agreement with Indonesia
Significant commitment to open markets
Worldwide market access under free trade agreements is an important tool for ensuring the future success of the Swiss export industries. At the referendum on 7 March, Swiss voters laid the foundation for the preservation and expansion of prosperity in Switzerland and Indonesia.
scienceindustries campaigned heavily for the agreement with Indonesia. As the representative of companies that earn 98% of their income abroad, scienceindustries is convinced that the Swiss people have set an important and correct signal for Switzerland as a reliable trading partner. This makes it possible to expand the network of free trade agreements and strengthens Switzerland as a centre of research, development, production and above all, business. The agreement gives Switzerland advantages over its competitors from the EU and US and paves the way for further dialogues on sustainability with Indonesia.
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Industrial tariffs
Stop unnecessary red tape
Tariffs make imported goods more expensive and increase prices for the industry and consumers. The abolition of industrial tariffs can effectively reduce companies’ administrative expenses.
Industrial tariffs weaken the international competitiveness of local companies. In this way tariffs defeat their original purpose, i.e. to protect the local industry. In addition to the cost savings on imported goods and intermediate products, the important issues for our industries are the simplification of the customs tariff structure, the abolition of certificates of origin and accompanying customs inspections, and the related reduction in red tape.
Across the economy as a whole, total expenses outstrip fiscal income by far. It is estimated that gross domestic product would increase by 0.1% or CHF 860 million per year, which would more than compensate the loss of income. scienceindustries advises the National Council to follow the example set by the Council of States and approve the abolition of industrial tariffs.
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Brexit
Switzerland-UK trade agreement: speedy amendment is unavoidable
The trade agreement between Switzerland and the United Kingdom has to be amended speedily to allow Swiss companies to resume the cumulation of origin of EU materials. The agreement has to be modernised to ensure that existing delivery chains can again function efficiently and economically.
Because the EU-UK and CH-UK agreements contain different rules of origin, Swiss companies under certain circumstances can no longer generate the Swiss origin required for duty-free import to the UK through the cumulation of origin of EU materials. This lack of the cumulation option for goods originating from the EU weakens Swiss companies’ market access. The rules of origin agreed in the Switzerland-UK trade agreement are based on the free trade agreement which will soon be 50 years old. scienceindustries intervened immediately to lobby for a speedy solution. Both parties are approaching the matter with urgency and commitment. The priority must be to close the present gaps as soon as possible before starting to work on a comprehensive free trade agreement.
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Eliminating the gaps in chemicals legislation
Strengthen Switzerland as a manufacturing location
Switzerland should not automatically adopt bans on the use of certain chemicals. Obvious aberrations in the development of European legislation should be avoided. This is important for the strengthening of Switzerland’s position as a manufacturing location.
The ban on using substances listed in Annex 1.17 of the Chemical Risk Reduction Ordinance (ORRChem) jeopardises Switzerland as a manufacturing location without generating any added value for the people and the environment. After all, Switzerland continues to import goods for daily use that are manufactured using such substances (e.g. mobile phones, home electronics, paint, aromatic substances). Bans on use in Switzerland will not reduce the risk, but simply export it to other countries. scienceindustries supports the Schmid motion to eliminate the gaps in chemicals legislation and requests the National Council to follow the example of the Council of States, which adopted the motion during the spring session.
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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 51.7% 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
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