Switzerland has temporarily suspended new licenses for arms and ammunition exports to the US, citing neutrality in the context of the Iran conflict. The decision blocks about $120 million in contracts, according to Bloomberg.com.
“Exports of war material to the US cannot be authorized at present,” the Swiss government said on Friday, citing the country's involvement in the “international armed conflict” in the Middle East.
In an official statement, the Federal Council emphasized that “since the escalation of the conflict on February 28, no new licenses have been issued for the export of war material to the US.”
This decision reflects the Alpine state's strict neutrality rules, which have already led to the closure of airspace to US military flights directly related to the Iran war.
Bern announced last weekend that US overflights exceeding the usual volume would be refused “unless their purpose is clear and unrelated to the conflict”.
The United States was the second largest importer of Swiss weapons last year, absorbing about 10 percent of all shipments. The sales, worth 94.2 million francs (about $119 million), consisted mainly of aircraft, ammunition and handguns, according to government data.
Although new orders are blocked, authorities clarified the status of contracts already in progress: “It has been determined that the existing licenses have no relevance to the war at this time and can therefore continue to be used.”
However, monitoring will be constant. An interdepartmental panel of experts will periodically review developments in shipments and assess “whether any action under neutrality law is necessary.”
The country's neutral position has been a real headache for Switzerland's arms manufacturers, writes Bloomberg.
The government in Bern had previously prevented allied countries from sending Swiss-made equipment to Ukraine, causing local manufacturers to lose a number of important orders while the rest of Europe rearmed massively in the wake of the Russian invasion.
Fearing a permanent exclusion from European supply chains, some Swiss companies took drastic measures and “moved their production elsewhere to circumvent the export rules” of the Confederation.
In response to those pressures, lawmakers voted in December to relax a core law intended to allow exports to a defined group of 25 Western countries — including the U.S. — even if they are embroiled in a conflict.
The change has not yet come into effect because, under Switzerland's system of direct democracy, “the bill can still be challenged by a referendum” if enough signatures are collected by mid-April.
