Bilateral Cooperation Projects Between Switzerland and Latin America: Strengthening Exporting SMEs and Supply Chains
Switzerland and Latin America are moving toward a more useful model of economic cooperation. The central question is no longer only whether tariffs can be reduced. It is whether small and medium-sized exporters can use bilateral agreements, digital customs systems, finance, technical standards and business partnerships to deliver reliably across borders.
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This agenda has become more urgent because smaller firms face fixed costs that large corporations can absorb more easily. The Inter-American Development Bank reports that micro, small and medium-sized enterprises account for 99.5% of firms in Latin America and the Caribbean and 60% of formal productive employment, yet they generate only about 25% of total production value.1Ā A cooperation project that reduces one form, shortens one border process or improves one financing channel can therefore have a broad economic effect.
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Switzerland brings strengths in precision manufacturing, pharmaceuticals, food processing, logistics, finance, vocational training and digital governance. Latin American partners bring large consumer markets, agricultural and mineral resources, renewable-energy potential, specialised suppliers and growing technology ecosystems. Bilateral agreements can connect these capabilities when they are implemented through projects that reach firms, not only ministries.
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The agreement network already in place
Switzerland generally negotiates trade agreements through the European Free Trade Association (EFTA), together with Iceland, Liechtenstein and Norway. Switzerlandās official trade-partner directory lists an EFTA agreement with Chile in force since 1 December 2004, preferential access and stronger trade and investment ties with Colombia since 2011, an EFTAāCentral America agreement in force since 2014, and a comprehensive economic partnership agreement with Ecuador in force since 2020.2
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These instruments create a legal foundation for cooperation in goods, services, investment and intellectual property. Their commercial value depends on whether exporting SMEs can understand rules of origin, identify the correct tariff code, meet sanitary or technical requirements, and claim preferences without disproportionate administrative cost.
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The most significant recent development is the EFTAāMERCOSUR Free Trade Agreement. EFTA and Argentina, Brazil, Paraguay and Uruguay concluded negotiations on 2 July 2025 and signed the agreement on 16 September 2025. The agreement has not yet entered into force, so implementation and ratification remain decisive next steps.3
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The scale is substantial. EFTA reports bilateral goods trade with MERCOSUR of EUR 8.3 billion in 2024, including EUR 5.26 billion in EFTA exports and EUR 3.07 billion in imports from MERCOSUR. The agreement is intended to provide privileged access to a market of more than 270 million consumers, progressively eliminate tariffs and improve legal certainty.3
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For Swiss exporters, the agreement can complement existing links with Chile, Colombia, Ecuador, Mexico and Central America. It can also support a more diversified sourcing strategy for inputs, components and food products. For Latin American SMEs, access to Swiss and wider EFTA markets may reward consistent quality, traceability and specialised production rather than volume alone.
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What bilateral cooperation can deliver for SMEs
A single export-readiness pathway
A bilateral project can establish a shared digital pathway for first-time exporters. It would explain market requirements in plain language, connect firms to customs authorities and testing laboratories, and provide templates for certificates of origin, invoices, product declarations and transport documents. A SwissāLatin American SME portal could combine information from customs, export-promotion agencies, chambers of commerce and logistics providers.
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The goal is not to create another database. It is to reduce uncertainty at the moment when a firm quotes a customer, prepares a shipment or responds to a compliance request.
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Mutual recognition and technical support
Standards can become hidden trade barriers when a small exporter must repeat tests in several markets. Cooperation projects should therefore prioritise mutual recognition where the legal systems allow it, shared testing protocols and technical assistance for accreditation. Priority sectors could include medical devices, specialty foods, coffee, cocoa, pharmaceuticals, clean technologies, precision parts and sustainable packaging.
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Swiss technical institutions and Latin American universities can support pilot laboratories, metrology training and short courses on quality management. The benefit is two-sided: Latin American suppliers improve their access to EFTA markets, while Swiss buyers gain a larger pool of qualified partners.
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Finance and export-risk coverage
Exporting requires working capital before a foreign customer pays. It also exposes a small firm to currency, political and payment risks. Switzerlandās export-promotion ecosystem includes Swiss Export Risk Insurance, which states that Swiss exportersāmostly SMEsāas well as banks can insure against risks such as political risk and payment default.4
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Bilateral programmes could connect that type of risk-sharing with development banks, local commercial banks and factoring providers in Latin America. A blended facility could support purchase orders, equipment upgrades and inventory for firms that meet transparent environmental and labour criteria. The design should avoid subsidising firms indefinitely; it should help them establish a credible export record and graduate to commercial finance.
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Supply-chain partnerships rather than isolated transactions
A trade agreement is more valuable when it supports stable relationships between suppliers, distributors, service firms and research centres. Switzerland and Latin American partners could organise supplier-development programmes in which a Swiss lead company defines technical requirements, local SMEs receive coaching, and both sides test a product or process before scaling it.
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Potential areas include cold-chain logistics for food, sensors for mining and agriculture, pharmaceutical packaging, industrial maintenance, renewable-energy components and software for shipment visibility. Contracts should include realistic delivery schedules, data-protection rules, dispute mechanisms and payment terms that do not transfer all risk to the smallest supplier.
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Digital tools for resilient supply chains
SMEs do not need complex technology for its own sake. They need practical visibility: where an order is, which document is missing, whether a container has cleared, and whether a change in regulation affects the shipment.
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A cooperation package could link electronic certificates of origin, customs single windows, shipment tracking and supplier records through interoperable systems. It could also provide simple dashboards showing lead times, port congestion, rejected shipments and preference utilisation. These tools would help firms compare routes and avoid errors before goods reach a border.
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Data governance is essential. Small exporters should know who can access their commercial information, how long records are retained and how cybersecurity incidents are handled. Public programmes should use open standards and avoid locking firms into one vendor.
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What the Swiss side gains
Switzerlandās 2025 Foreign Economic Policy Report describes diversification and the safeguarding of economic relations as increasingly important amid geopolitical tensions. It also states that SMEs accounted for 61% of tariff savings realised under Switzerlandās free trade agreements.5Ā This is a strong reason to measure the practical use of agreements instead of treating signature ceremonies as the final result.
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Swiss firms can gain more resilient sourcing, new customers and local partners for innovation. Latin American markets can also support Swiss expertise in water management, energy efficiency, health technology, transport and industrial automation. Bilateral cooperation works best when it creates commercial opportunities while improving productivity and responsible production.
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Implementation priorities for 2026ā2028
A focused programme could begin with four steps. First, select two or three value chains in each participating country and map the firms, border procedures, standards and financing gaps that affect them. Second, fund small pilot projects with measurable targets, such as reduced clearance time, more firms using tariff preferences or fewer rejected shipments. Third, create a joint review group with public agencies, banks, logistics companies, universities and SME associations. Fourth, publish results in a format that other firms can reuse.
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The metrics should include the number of new exporting SMEs, export survival after two years, women- and youth-owned firms supported, average transaction cost, time to obtain documentation, preference utilisation, supplier delivery performance and emissions per shipment. These indicators connect trade policy with business outcomes.
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Closing Thoughts
The strongest SwitzerlandāLatin America projects will be modest in form but ambitious in usefulness. A clear customs guide, an accredited laboratory, a reliable working-capital facility or a supplier-development contract can change the prospects of a small exporter more than a broad declaration with no delivery mechanism.
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Bilateral agreements provide the rules. Cooperation projects provide the capabilities. The lasting test is whether a family-owned manufacturer in Latin America can meet a Swiss buyerās requirements, ship with confidence, receive payment on time and repeat the transaction profitably. If the answer becomes yes for thousands of firms, trade policy will have translated into productive resilience.
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What does this look like in practice?
A Colombian producer of specialty food could use the EFTAāColombia framework to identify the applicable tariff preference, complete a digital origin declaration and verify Swiss labelling requirements before production. A Swiss distributor could connect the producer with a cold-chain operator and a local bank offering invoice finance. The first shipment would be treated as a pilot, with data on clearance time, product losses and customer acceptance. After three successful cycles, the partners could increase volume and add a second product.
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A Brazilian engineering SME could join a Swiss supplier-development programme for sensors used in mining or renewable energy. The Swiss partner would provide specifications and testing support; the Brazilian firm would adapt production, document quality controls and build a service network. Both parties would agree on cybersecurity, intellectual property and after-sales responsibilities before commercial deployment.
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These examples show why trade, finance, standards and logistics should be designed together. Removing a tariff does not solve a missing certificate, an unpaid invoice or a broken cold chain.
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Why does it matter?
The issue is important because Latin American SMEs provide most business activity and a large share of formal employment, while international trade remains harder for them than for large corporations.1Ā Switzerlandās open, specialised economy depends on reliable global value chains and diversified commercial relationships.5Ā Resilient supply chains are built through many capable firms, not through a few dominant buyers.
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The next phase of SwitzerlandāLatin America cooperation should therefore focus on implementation: usable information, interoperable digital systems, recognised standards, responsible finance and long-term supplier relationships. Agreements signed at the bilateral or EFTA level can become engines of competitiveness when public institutions and businesses give SMEs the tools to use them.
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References
Editorial note: The EFTAāMERCOSUR agreement was signed in September 2025 but was still pending entry into force in the official EFTA source consulted for this article.
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