Published by Global Banking and Finance Review
Posted on March 11, 2025
By John Revill
BERN (Reuters) - Swiss weapons exports fell for a second year running in 2024, government data showed on Tuesday, as the neutral country considers loosening export curbs following the war in Ukraine.
War material exports dropped 5% to 665 million Swiss francs ($754.74 million)from 696.8 million francs a year earlier, the State Secretariat for Economic Affairs (SECO) said.
In 2023, exports plunged 27% from 955 million francs of guns, ammunition and other arms materials sold in 2022.
Despite its longstanding neutrality, Switzerland has been a significant arms exporter, specialising in ammunition and armoured vehicles.
Critics fear the industry could be left behind in the defence ramp-up underway in Europe because of Switzerland's refusal to allow other countries to re-export its weapons.
The Swiss government is currently mulling whether to relax its restrictions "in extraordinary circumstances."
Industry group Swissmem, whose members include military suppliers like Rheinmetall and Safran Vectronix with sites in Switzerland, described the proposals as insufficient to support an industry reliant on exports.
"It's a disaster for the industry but also the country's defence capabilities," said Matthias Zoller who is responsible for the armaments industry at Swissmem.
"There's a big surge in defence spending in Europe and Switzerland will miss out," he said, adding patience about Switzerland's position was wearing thin across Europe.
Under neutrality law and the Swiss war materials act, companies are banned from exporting weaponry directly to countries involved in internal or international armed conflict.
($1 = 0.8811 Swiss francs)
(Reporting by John Revill, additional reporting by Dave Graham)
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