Jean-Daniel Pasche
In keeping with tradition, and for the fourteenth consecutive year, delegations representing watchmaking associations met on 9 March at Baselworld. The meeting brought together delegates from the following countries: Germany, China, the United States, France, Hong Kong, India, Italy and Japan.
The delegations began their deliberations with an exchange of views on the 2011 economic situation and prospects for 2012. Overall, 2011 proved to be a successful year for the world's different watch industries, with markets generally holding up well. The representatives of Hong Kong emphasised that the supply of Japanese movements had returned to normal in the wake of procurement difficulties caused by last year's tsunami. They once again deplored the rising costs affecting watch production in China (increased labour costs, inflation, social benefits). On the Swiss side, it was noted that 2011 was another record year for our industry as a whole.
Participants were then informed by the delegation of the American Watch Association of «conflict minerals» legislation tabled for introduction by the Securities and Exchange Commission (SEC) and its ramifications for trade in precious metals. The United States wants to curb the use of such metals and intends to impose requirements concerning the origin of these raw materials when they come from the Congo. This means that companies registered with the SEC will have to disclose that they are using precious metals from the Congo, should that be the case. It will therefore be possible to continue using metals sourced in this way, but only if an express declaration is made to this effect. Other companies, namely those not registered with the SEC, are unaffected by this regulation.
As is customary, the meeting also addressed the problem of customs duties. Participants noted that multilateral negotiations within the WTO, the Doha cycle, were making no progress and that no breakthrough was in sight in the near future. The United States continues to hold firm to its «zero for zero» initiative for watchmaking. This is a sector-wide initiative intended to abolish all customs duties on watch industry products. The FH supports this type of initiative however it is dependent on progress made in general negotiations within the WTO.
Regarding the problem of customs duties in the United States, the delegate of the American Watch Association reiterated that its members were in favour of a simplification of the American customs tariff but not at the price of higher customs duties.
The Swiss delegation took this opportunity to offer a summary of progress made by the Swissness project in the federal parliament.
Lastly, participants once again examined problems in relation to CITES. The United States is looking at ways of automating its procedure with a view to simplifying and speeding up the process. It was noted that Switzerland already had an electronic procedure in place and that the country was ready to collaborate with other associations to facilitate the acquisition of this permit.
