# Presentation: 560569

## SWITZERLAND MATTERS!

**U.S. Embassy, Bern**
- Julie Snyder, Commercial Counselor
- Aschi Hegg, Commercial Specialist & E-Business Leader Europe
- Marianne von Kaenel,
- 	Commercial Assistant

**A Key European Market for U.S. Exporters **

**Zurich America Center**
- Sandor Galambos,
- 	Senior Commercial Specialist
- Elisabeth Mbitha-Schmid, Commercial Assistant

## Appearances Can Be Deceptive

## Slide 3

## US-Swiss Bilateral Trade

- Switzerland is the 17th Largest Trading Partner for the U.S.
- U.S.-Swiss Bilateral Trade Grew by 20.6 % in 2006 to Reach USD 28.6 billion
- U.S. Exports to Switzerland Valued at USD 14.8 Billion in 2006
- The Fastest Growing Market in Europe and Fourth Fastest Growing Market in the World for U.S. Exports
- U.S.-Swiss Bilateral Trade Comparable to Bilateral Trade with Italy and with Spain and Four Times Larger than U.S.-Austrian Trade

## U.S. / Swiss Trade by Main Commodity Groups

## Swiss Economic Indicators

- Population of 7.5 million
- GDP in 2006 of about USD 378 Billion
- About 50% of Switzerland’s GDP is generated by trade.
- Estimated Economic Growth Was 2% in 2006
- Forecast Growth of 2.5% for 2007

## Major Commercial Centers

## Bilateral Direct Investment

- After the EU, U.S. is Second Largest Investor in Switzerland
- Switzerland is Sixth Largest Investor in the U.S.
- Over 600 U.S. Firms with a Presence in Switzerland, employing 	about 70,000
- Growing Number with Regional Europe/Middle East/Africa 	Sales/Operations
- Advantageous Multilingual Business Environment
- Highly Educated, Skilled Labor Force – Many Commute from 	Bordering Countries

## Swiss Position in R & D

## Switzerland as a Research Hub

- Strong R&D in Biotech, Nanotech, Pharmaceuticals, Chemicals, Electronics, Metallurgy and Machinery
- Public sector investment in R&D of USD 12 billion from 2004-7.
- Two-thirds of total R&D investment is funded by private sector.
- Private R&D led by 1,000 companies in chemical, pharmaceutical, biotech, and food sectors

## Switzerland as a Research Hub 

- Switzerland ranks among the World’s Top Five Countries for R&D, investing 2.6% of GDP.
- Thirty-five universities and institutes with leading R&D laboratories
- Strong cooperation and networking between industry and universities to support innovation.
- Venture Capital funds are now the highest in Europe and growing rapidly for biotech.

## Procurement by Swiss Government

- Procurement at Federal and Cantonal Levels Covered by WTO GPA
- Major Tenders on CS EU and CS Switzerland Websites
- Annual Budgetary Increase of 7 % for R&D and Education
- Excellent Opportunities for Scientific/Laboratory Equipment

## Swiss Market for U.S. Suppliers to the Chemical, Biotechnology, and Pharmaceutical Industries

## Major End-users:  Leading Pharmaceutical, Food and Chemical Companies 

- Novartis
- Hoffmann-La Roche
- Clariant
- Ciba Speciality Chemicals
- Syngenta
- Nestle
- Serono
- Bachem

## Laboratory Equipment and Scientific Instruments

- Total market demand valued at an estimated USD 804 billion.
- U.S. imports valued at an estimated USD 95 billion.
- U.S. market share of about 45%, valued at USD 580 million for relevant software, data acquisition and processing.

## Best Prospects for Lab/Scientific Equipment 

- Spectrometers
- LC and gas chromatographic analyzers
- Ion selective analyzers
- Systems for titration, extraction, and supercritical extraction
- Robotized systems
- Automated analytical systems
- Measuring instruments for pH, redox, temperature, conductivity, etc.
- Precision flow metering instruments
- 3-D simulation software for laboratory applications

## Swiss Biotech Sector  

- With a population of 7.4 million, Switzerland has the highest density of biotech companies in the world.
- There are a nearly 1,000 Swiss companies in the biotech, chemical, pharmaceutical, and food industries.
- Switzerland lies in one of the world’s leading biotechnology regions.

## Swiss Biotech Sector 

- Highest per capita patent issuance and density of biotech companies in the world.
- Biotechnology is an engine of growth for the Swiss economy.

## Therapeutics and diagnostics
Platform technologies
Bioelectronics and bioinformatics
Bio and specialty chemicals
Plants
Agricultural food processing

- Therapeutics and diagnostics
- Platform technologies
- Bioelectronics and bioinformatics
- Bio and specialty chemicals
- Plants
- Agricultural food processing

## Best Prospects for U.S. Exporters

- Bio-informatics
- Information technologies for biochemistry
- Pharmacology and genetics
- Chip technology
- Laboratory robots
- Diagnostic tests
- Blood factors

## Specialty Chemicals

- Swiss market represents about 30% of total European market and is an international turntable for the global chemical industry.
- Chemicals and pharmaceuticals represent over one-third of U.S.-Swiss bilateral trade.
- The Swiss biotech/pharmaceutical industry trend is to buy active substances or outsource production.
- State-of-the-art R&D has attracted global chemical and pharmaceutical companies to Switzerland.

## Best Prospects for Specialty Chemicals

- Biotech Molecules
- Anorganic Chemicals and Compounds
- Organic Chemicals and Compounds
- Compounds with Special Properties

## Competitive Advantages

- Many Swiss researchers have trained in the U.S. and have a preference for U.S. equipment.
- With strong Swiss R&D in the U.S., many Swiss products have been developed in the U.S., using custom-made substances.
- Many Swiss finished products contain U.S. components and ingredients.
- There is significant U.S.-Swiss bilateral direct investment in the chemical and pharmaceutical industries.

## Market Characteristics

- World-class Infrastructure
- High Concentration of Computer and Internet Usage Per Capita
- Business-friendly Legal Environment
- Few Market Access Impediments
- Producer of High Quality, Valued-Added Industrial and Consumer Goods
- Demand for High Quality Products with Competitive Prices

## Market Factors

- Strong Competition from EU Suppliers—France, Germany, Italy, and U.K.
- Switzerland at Epicenter of European Competition
- Innovative Products Often Introduced First in Switzerland
- Follows EU Regulations—Standards, Packaging, and Labeling
- Additional Standards for Medications, Cosmetics, and Chemicals
- Switzerland as a Gateway to Europe—Distribution Channels to EU
- Multilingual/Multicultural Market—German, French, and Italian
- Ideal Test Market—”Europe in Miniature”

## Market Strategies

- Express Commitment to Market
- Establish Long-term Relationships
- Work Directly with a Swiss Importer/Distributor/End-user
- Be Prepared to Meet Customers’ Needs
- Be Willing to Sell in Small Volumes
- Offer High Quality and Environmentally-friendly Products
- Enter Market Early for Competitive Edge

## Contact CS Switzerland:  

**Contact CS Switzerland:  **

**U.S. Embassy Bern**
**Phone: +41 31 357 7345**
**Fax: +41 31 357 7336**

**Zurich America Center **
**Phone: +41 43 499 2972**
**Fax: +41 43 499 2971 **

## Slide 29