| Statement by H. E. Amb. SUN Zhenyu at the 3rd Joint TPR of Switzerland and Liechtenstein |
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| Tuesday,December 16,2008 Posted: 18:34 BJT(34 GMT) |
| From:wto Article type:Original |
15 December 2008
Thank you, Mr. Chairman.
People might feel a little amused when I express warm welcome to the Delegations of Switzerland and Liechtenstein in Geneva for their third joint Trade Policy Review, as there is a Chinese idiom “Fan Ke Wei Zhu”, which refers to the unusual situation for the guests to behave as the hosts as if it was in their own home. It is probably more appropriate for me to inform our Swiss hosts what an enjoyable experience we all have had to be posted here in this beautiful and friendly country.
Just now, we listened carefully to the opening remarks by both Delegations, which alongside the two Government Reports, have greatly improved our understanding of both countries’ trade regime and macroeconomic environment. The Secretariat, as always, has prepared an excellent report with rich information and detailed analysis, which is highly appreciated. Of course, I would also like to thank Faizel for his insightful remarks from the perspective of the Discussant.
Mr. Chairman, it’s great to learn that the economies of Switzerland and Liechtenstein have grown strongly for the period under review. Common inflation has generally remained below 2%. Switzerland’s current account has been traditionally in surplus. Liechtenstein has no external debt. We believe all of these will lay a solid foundation for both countries to face up to the current financial crisis.
Turning to trade and investment, we have taken good note that the ratios of external trade to GDP for both countries exceed 100%, which is a clear indication of what an important role that trade has played in both economies. However, dependence of this scale might also lead to high susceptibility to external fluctuations. We also note that, according to the recent statistics of Switzerland State Secretariat for Economic Affairs, the unemployment increased by over 7000 people, driving the unemployment rate up again from 2.5% to 2.7% in just one month, after the continuing decline from a high of 3.9% in 2004. It would be interesting to know how both countries have been coping with such factors in the ongoing crisis. It’s commendable that most industries are open to foreign investment in both countries. Against the current backdrop, we would like to know whether foreign investment will be able to play an active role in easing the situation.
Mr. Chairman, China and Switzerland and Liechtenstein enjoy friendly bilateral relations. Close ties in culture, education, technology and tourism are deepening step by step. Economic and trade relations have also been developing smoothly during the period under review. In 2007, trade volume between China on the one side, and Switzerland together with Liechtenstein on the other side, reached almost 10 billion USD, with a 40% increase as compared with the previous year. From January to October 2008, trade volume amounted to 10 billion USD already, with an increase of 23%. Among non-EU countries in Europe, Switzerland has the largest investment in China, while investment by China in Switzerland also increased rapidly from 0 in 2005 to over 8 million USD by September 2008. China is ready to continue all our efforts in collaboration with both countries to tap the potentials to further our economic and trade co-operations.
Mr. Chairman, China submitted written questions prior to this meeting, with a view to get a clearer picture of both countries’ trade regimes and practices, and to reflect some of our bilateral concerns. I thank the two delegations for their written replies. Here, I would like to briefly touch upon an additional point. As noted by the Secretariat Report, “The applied MFN tariff still comprises only specific rates, with relatively high protection for agricultural products.” Although we undertand that this might result from the Uruguay Round commitments, China would like to know if Switzerland and Liechtenstein are ready to consider adopting ad valorem duties in the future so as to provide enough certainty and predictability for importers as well as exporters.
Mr. Chairman, Switzerland and Liechtenstein are important Members of the WTO. We share the Discussant’s comments on the positive role by Switzerland to provide economic assistance and duty-free-quota-free treatment to LDCs. We commend them for their contributions to the DDA negotiations. We would like to extend our special thanks to Amb. Wasescha for his diligent work in pushing forward the negotiations as Chair of the NAMA Group. The Draft Paper he presented earlier this month has been very well received by Members. Switzerland has also made great contributions to the negotiations by hosting meetings at the ministerial level during the annual World Economic Forum in Davos. China is willing to work closely with Switzerland and Liechtenstein to contribute to the early conclusion of this round.
Finally, I wish the Trade Policy Review of the two Members a great success.
Thank you.
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