1. (SBU) SUMMARY: Assistant United States Trade Representative for Europe and the Middle East Chris Wilson and Swiss Secretariat for Economic Affairs (SECO) Head of Bilateral Economic Relations Ambassador Monika Ruehl co-chaired a Trade and Investment Cooperation Forum ("Forum") meeting on June 2. The Head of the Swiss Environment Ministry International Affairs Office and Ruehl strongly supported A/USTR Wilson's proposal to expand the Forum beyond technical problem-solving to broader strategic issues such as the intersection between environment or labor and trade. Swiss Chief Negotiator at the WTO Marie-Gabrielle Ineichen-Fleisch highlighted the common US and Swiss positions in the Doha Round and proposed a bilateral working group meeting in September to brainstorm on moving Doha forward.
2. (SBU) During an informal meeting on June 2 with A/USTR Wilson, Swiss Parliamentarians reflected their interests in the new US administration's trade policies' impact on trade negotiations as well as concerns about pressure for increased protectionism in the US. A/USTR Wilson also held separate meetings with SECO State Secretary Jean-Daniel Gerber and local business representatives to discuss the Forum, WTO and the Doha Round, and the new US administration's trade policies. USTR Director for Western Europe and Middle East Affairs Jason Buntin was also present at the meetings.
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Swiss Support Expanding Forum To Strategic Dialogue
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3. (SBU) A/USTR Chris Wilson and SECO Head of Bilateral Economic Relations Ambassador Monika Ruehl co-chaired a Trade and Investment Cooperation Forum ("Forum") meeting on June 2. Both praised the strong bilateral trade and investment relations. A/USTR Wilson suggested expanding the Forum beyond technical problem-solving to broader strategic issues such as the intersection between environment or labor and trade. The Head of the Swiss Environment Ministry International Affairs Office strongly supported adding a joint working group of trade and environmental specialists to exchange ideas regarding environmental goods and services. Ruehl, while wanting to maintain the Forum as a platform for resolving trade issues, also supported more strategic dialogue and proposed additional private sector outreach by both sides.
4. (SBU) Switzerland's Chief Negotiator at the WTO Marie-Gabrielle Ineichen-Fleisch stressed the importance of the WTO multilateral forum to Swiss trade. She highlighted the Swiss and US common positions in regards to agricultural concessions and the need for emerging economies to make specific reciprocal proposals. She proposed a bilateral working group meeting in September to brainstorm on moving Doha forward.
5. (SBU) Senior Swiss trade experts reviewed the few technical issues that still remain under the Forum, such as beef and swine exports and potential U.S. legislation that may result in unintended barriers to trade. All parties agreed that more working-level communication was necessary to address these issues.
6. (SBU) During an informal meeting on June 2 with four Swiss Parliamentarians, the legislators emphasized that "the best stimulus package for the economy is free trade." Their questions to A/USTR Wilson reflected their interests in the new US administration's trade policies' impact on the Doha Round and bilateral agreements as well as concerns about pressure for increased protectionism in the US. They asked about status of implementation of the "Buy America" provisions of recent U.S. economic recovery legislation. A/USTR Wilson reassured the Parliamentarians by outlining the trade policy priorities set out by U.S. Trade Representative Kirk, and citing the U.S. commitment to finding a path forward to conclude the Doha Round, without reverting to "square one." He also discussed developing a more strategic approach to the Forum to enhance bilateral trade relations.
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Meeting with State Secretary Gerber
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7. (SBU) A/USTR Wilson also held separate meetings with SECO State Secretary Jean-Daniel Gerber and local business representatives to discuss the Forum, WTO and the Doha Round, and the new US administration's trade policies. Gerber explained that on-going EU-Swiss negotiations for an agriculture free trade agreement will be drawn out given the politically sensitive farm sector and Switzerland's 2011 elections. However, once an agreement is struck, FTA's with other countries, including the US, will be easier to conclude. Gerber also invited USTR Ron Kirk to participate as a panelist with Federal Councillor Doris Leuthard at the Joint Economic Commission Panel at the World Economic Forum in January 2010, when Leuthard will also be President of Switzerland under the Alpine country's rotational presidential system.
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