Swiss weapons exports plunge as neutral stance hurts trade

According to the government, Switzerland’s exports of weapons decreased by more than 25% in the previous year. The country’s neutral position is attributed by some to the impediment of the re-export of Swiss-made firearms and ammunition to Ukraine.

The State Secretariat for Economic Affairs (SECO) reported that war material exports decreased by 27% to 696.8 million Swiss francs ($788.06 million), from 955 million francs in 2022.

Switzerland is a major arms provider, ranking 14th in the world in 2022, despite having long maintained its neutrality, according to data from the Stockholm International Peace Research Institute.

Switzerland signed large contracts for ammunition and wheeled armoured vehicles in 2023, down from 60 nations a year earlier. Germany was the country’s top buyer, followed by Denmark.

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Industry group Swissmem said that Switzerland’s restriction on the re-export of firearms had contributed to the decline in exports that occurred last year, however SECO could not provide an explanation.

As long as Ukraine is engaged in an international armed conflict, requests for the shipment of Swiss-made war materiel to that country are not subject to approval by Bern under the neutrality statute of the nation.

“Some companies have lost orders because of concerns about the Swiss regulations, while others are considering investing less here,” Swissmem director Stefan Brupbacher told Reuters ahead of the release of the figures.

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In 2022, Spain, Denmark and Germany were denied permission to re-export armaments to Ukraine, straining relations and raising concerns in the Swiss arms industry, which includes multinationals Lockheed Martin and Rheinmetall, as well as a host of smaller companies.

Swissmem said Switzerland’s arms industry depended on exports and could not rely on demand from the Swiss military to survive.

Brupbacher said a “dogmatic interpretation” of neutrality was blocking re-exports of Swiss weapons and ammunition which other countries had bought years earlier, with many countries not understanding Switzerland’s stance.

“We want the need for re-export permit for all countries which adhere to similar international conventions on weaponry as Switzerland to be lifted,” he said.

“It has nothing to do with the legal definition of neutrality.”