Switzerland's relationship with the United States

Switzerland's Relationship With The United States

The two countries enjoy a close relationship at varying levels (Merz 2005). Statistics state that more than 20,000 or 10% of all Swiss living abroad live in the U.S.A. On the other hand, 20,000 Americans live in Switzerland. Switzerland is one of the six biggest investors in the U.S.A., while Switzerland is the top fourth recipient of U.S. foreign direct investment. Approximately 430,000 Americans are employed by 600 Swiss companies throughout the U.S.A. In response, 650 U.S. companies in Switzerland employ 67,000 Swiss. Next only to Germany, the U.S. is Switzerland's biggest export market. The U.S. receives 10% of its exports, valued at CHF 14.2 billion. In the meantime, U.S. products are in fourth rank among Swiss imports (Merz).

Developments and changes in the U.S. affect the Swiss in even deeper ways (Merz 2005). The Swiss admire America's economic might and power of innovation. Their close ties were established by the Johann Rudolph Valltravers of Bern and Benjamin Franklin of the U.S. At the end of the 18th century. Despite conflicts during the Second World War, the two republics would remain entrenched in their harmonious relationship. The bilateral relationship between them today is viewed as quite extensive and complex. They engage in constant dialogue, particularly on security topics, including transmission of air passenger data, biometric data in passports and the fight against terrorism and corruption. They have good working relationship in export controls, commodity trade, administrative assistance and science and technology. They work together with the World Trade Organization and the OECD. The Swiss Federal Council has recently begun exploring free trade negotiations with the U.S. In intensifying the relationship and act as its economic bridge in Europe. It also seeks to negotiate for mutual administrative assistance in custom matters; improve its present auditing regulations; set up a science and technology framework agreement; and revise their current air transport agreement.

Switzerland in the Late 20th Century (Post-1945)

Throughout World War II, Switzerland was not attacked by the Germans by staying independent and through its use of military resistance, economic concessions to Germany and sheer luck (Infoplease 2006). The economy began to grow from this time. By 1950, the federal government finally decided to grant permanent asylum to only 1,500 psychologically traumatized cases and the sick refugees. By 1954, the Jewish community shrank to less than 20,000. In 1971, women were granted the right to vote, although only gradually until a judicial decision granted it completely in 1992. The Swiss population grew from 4.5 to 7.5 million between 1945 and 1970 at approximately.5% annually since the 90s, mainly due to immigration. After women received the right to vote, they quickly became active and began political activity. The first woman in the seven-member high council was Elisabeth Kopp from 1984-89 and the first female president was Ruth Dreifuss in 1998 (Infoplease).

After joining the Council of Europe in 1963, Switzerland became a full member of the United Nations (Infoplease 2006). It is a founding member of the EFTA, although not a member of the European Economic Area. It applied for membership in May 1992. On account of mixed reactions, the application has pended. Nevertheless, the Swiss government signed a number of bilateral agreements with the EU. Switzerland, along with Liechtenstein, has been entirely surrounded by the EU since Austria became a member in 1995. In September 2000, Swiss voters voted against reducing the number of foreigners into the country to only 18% of the population. Two years later, Switzerland ceased to be a neutral state by becoming the 190th member of the UN. On June 5, 2005, 55% of Swiss voters agreed to join the Schengen treaty. This was viewed by EU commentators as a sign of support by Switzerland despite its traditional status as an independent, neutralist or isolationist country.

Historical Topics about Switzerland

Washington Agreement

Before the end of World War II, the Allied powers, under their "Safe Haven" policy, demanded all German foreign assets to be submitted to them for the reconstruction of Europe (Castelmur 1992). The Swiss Federal Council froze all German assets in February 1945 in order to end international isolation for itself and its firms, which were boycotted for perceived collaboration with the Germans. On May 25, 1946, Switzerland and three representative Western Allied Powers reached an agreement for Switzerland to return 250 million Swiss francs. The Allies, in signing the agreement, waived all claims against the government of Switzerland and the Swiss National Bank concerning the gold acquired by Switzerland from Germany. Frozen German assets in Germany would be liquidated and the proceeds split among the Western Allies negotiators and Switzerland. Frozen Swiss assets in the U.S.A. And the blacklist on Switzerland lifted in 1948. A definite agreement was reached in 1952 with the creation of the Federal German Republic. Switzerland paid the Allies a redemption amount of 121.5 million Swiss francs, refunded by the Federal German Republic upon the release of German assets (Castelmur).

Transmigration

This was central to the Swiss refugee policy until 1954 as ratified at the Geneva Refugee Convention (Erlanger 2006). At this time, practically all 22,500 Jewish refugees, who escaped into Switzerland since the 1930s, had been evacuated. From 1945-1947, survivors were sent back to their native Palestine, Australia, the United States, Buchenwald, Theresienstadt and Hungary. Driven by the overwhelming vote for permanent asylum in 1948, the federal government also eventually granted it to select fugees in 1950. As a consequence, the Jewish community of less than 20,000 who settled in Switzerland since 1938, returned to Switzerland (Erlanger).

Switzerland's Greatest Problem Today

During World War II, the Swiss National Bank reportedly bought gold both from the Allies and the Germans (Castelmur 1992). The gold from the Allies remained on deposit with them, but the gold from Germany was moved to Switzerland. The Allies believed that part of that gold now in Switzerland from German was stolen in the territories it occupied during the last War and that it should, therefore, be returned. But Swiss authorities maintained that transactions conducted in good faith with the Swiss National Bank should be respected. The direct opposition of the sides reached political levels (Castelmur). As a repository of Nazi gold, Switzerland was forced to choose between giving up billions of its money or face international disapproval and sanctions (Sobran 2001). The billions deposited in Swiss banks are believed to belong to victims of the Jewish Holocaust (Sobran).

Many believed that the Nazis stole gold, jewelry and other valuables from these murdered victims (Sobran 2001, Castelmur 1992). The Germans needed to keep the items in the international market for their use and in exchange for their war efforts. The Swiss not only kept their accounts but also helped them make the exchange. Many of the murdered Jews also opened Swiss bank accounts. Survivors and dependents remember that their deceased parents opened those accounts, but did not know the account numbers or have the necessary documents to make the claim. Swiss banks require death certificates, which cannot be produced because there are no such official records of Holocaust murders. For many decades, survivors have been making claims to no success. There is no certainty as to how much money Jewish victims deposited into the banks. On July 23, 1997, the Swiss declared a list of dormant accounts to the public. Those with any claim must ask an accounting firm to help out and an international panel will determine if there is strong evidence to warrant the grant of a claim (Sobran, Castelmur).