How It Ticks: The Swiss Culture, Business & Life Podcast

Global Debt, Tariffs & Extreme Government Cuts | Stefan Legge PT 1

Jan 20, 2025
Stefan Legge, Vice Director and Head of Tax & Trade Policy at the University of St. Gallen, shares his expertise on global economics. He discusses the critical importance of free trade agreements for Switzerland, especially with major powers like China and India. Stefan reveals the potential fallout from U.S. tariffs and draws lessons from Argentina’s drastic government cuts. He also explores Switzerland's unique approach to managing national debt and contemplates Bitcoin's future role in finance, offering valuable insights for anyone intrigued by economic trends.
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INSIGHT

WTO Baseline And Why FTAs Matter

  • Almost every country is in the WTO and trades under the most-favored-nation principle by default.
  • Bilateral free trade agreements add preferential access and can include standards, movement, or deeper market integration.
ADVICE

Negotiate FTAs Around Your Export Strengths

  • Negotiate FTAs product-by-product with a focus on your national export strengths and what access you need abroad.
  • Expect industries and business associations to shape concessions and resist openings that hurt domestic sectors.
INSIGHT

FTAs Pay Off Over Decades

  • The economic impact of an FTA varies widely and depends on what's actually liberalized and the partner's market size.
  • Signing with growing economies like India is strategic for long-term access even if near-term gains are small.
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