Swiss-Japanese Relations

History

Switzerland sent its first official trade delegation to Japan in 1863. Headed by Swiss Councillor and President of the Union Horlogère Suisse Mr. Aimé Humbert (1819-1900), the visit quickly led to the conclusion of a trade and friendship treaty between the Swiss Federal Government and the Japanese Shogun, on February 6, 1864.

Agreement on Free Trade and Economic Partnership Between Switzerland and Japan

The FTEPA, which came into force on Sept. 1, 2009, establishes a comprehensive economic partnership between Japan, Switzerland and Liechtenstein). It contains substantive provisions on trade in goods referring to the liberalization of trade in industrial products as well as selected processed and basic agricultural products, rules of origin, custom procedures, trade facilitations and provisions relating to non-tariff barriers. Other provisions relate to the trade in services, the movement of natural persons for business purposes, the establishment and protection of investments, the protection of intellectual property, the promotion of electronic commerce, provisions in the field of competition and the promotion of economic relationships.

Bilateral Japan-Switzerland Trade

For Switzerland, Japan stands as the fourth most important trading partner in Asia, accounting for 2% of total trade in 2023. Japan is also a significant investment destination, ranking eighth among all foreign investors, and a valued “like-minded” ally.

In 2023, Swiss merchandise exports to Japan totaled CHF 7.6 billion, a decrease of 18.1%, while imports from Japan reached CHF 6.9 billion, an increase of 20.9%. This resulted in a trade volume of CHF 14.5 billion and a trade surplus of CHF 0.7 billion for Switzerland. Regarding foreign direct investments, Swiss companies invested USD 14.7 billion in Japan, making Switzerland the fourth-largest European investor and the eighth-largest overall. Japanese firms invested USD 41.8 billion in Switzerland.

Based on current trends, the sectors of machinery, chemicals, and finance show promising growth potential in Japan for 2024. Additionally, opportunities for Swiss companies are emerging in decarbonization, evolving health needs, aging infrastructure, and substantial investments in start-ups. The Swiss Pavilion at the World Expo 2025 in Osaka, Kansai, will also aim to position Switzerland as a reliable and innovative partner, offering various collaborative opportunities for Swiss businesses.

Additional Information About Switzerland & Japan