Switzerland: A trade dependent country

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Switzerland has virtually no mineral resources and a restricted surface area. It depends for its wealth on foreign trade. The relatively small size of its domestic market - a total population of just over 7,500,000 - is another factor which has encouraged Swiss manufacturers to look abroad: they need foreign markets in order to make investment in research and development worthwhile.
Switzerland imports bulky raw materials and exports high-quality goods. In 2003 the value of one tonne of exported goods was two and a quarter times more than that of the same amount of imports.
Swiss companies are extremely competitive in world markets. In some branches, more than 90% of goods and services are exported. The best-known export items are watches, chocolate and cheese, but in fact mechanical and electrical engineering and chemicals together account for over half Swiss export revenues.
The areas where Switzerland is a leading supplier include looms, paper and printing machinery, blanking tools for metalworking, elevators and escalators, packaging equipment and rack-and-pinion railways. However, many of the components for these items are now manufactured abroad.
Consultancy, insurance and tourism are also part of the export trade. Exports of goods and services alone amount to about 25,000 francs - 16,000 dollars - per head per year, according to the OSEC business network, which promotes Swiss foreign trade.
Switzerland's main trading partners are European Union members. By far the biggest partner is Germany. In 2005 it was followed in descending order by Italy, France, Austria, the US and the United Kingdom. In 2005, 62.3% of exports went to EU countries, and 80% of the imports came from EU states. This is despite the fact that the Swiss have consistently voted to remain outside the body.
Swiss economic policy has always been based on free trade, with low import duties and virtually no import quotas - the only exception being for agricultural produce. Even here many of the restrictions are being eased as a result of recent agreements with the EU.