The case

The major problems of the US and the EU are contagious and should be addressed according to Prof. Reiner Eichenberger.

Source: Professor Reiner Eichenberger in Handelszeitung No. 21, 7 August 2025, page 27 (heavily abridged)

The commentary

In his guest commentary, Professor Eichenberger highlights important points: Switzerland’s trade surplus with the USA is due, among other things, to the fact that the exchange rate does not compensate for Switzerland’s high competitiveness as comprehensively as a free foreign exchange market. The exchange rate for the Swiss franc is not too high, on the contrary, it is too low because of the Swiss National Bank, which prevents a market-driven appreciation of the Swiss franc, plus numerous measures taken by producers and importers aimed at sealing off the market and siphoning off Switzerland’s high purchasing power. The result is that Switzerland has turned into a high-price island.

Prof. Eichenberger’s suggestions: If you have to choose between two trading partners, you had better not commit to one only, but you should maintain good relations with both trading partners and take their problems seriously. In the case of the USA, this means, first of all, that Switzerland should open its market not only to EU goods but also to US goods, i.e. Switzerland should unilaterally allow the import of goods produced according to US standards, which would be subject to mandatory declaration. Secondly, Switzerland ought to open its agricultural markets and generously compensate farmers for their services to the public. Thirdly, Switzerland should take Trump’s demand for lower prices for pharmaceutical products seriously as Switzerland sports excessive prices for these products. The prices must be reduced both for drugs produced in Switzerland as well as the ones produced the USA.