InFocus Switzerland 2016 by cmcpresentation

SWITZERLAND 2016

Diplomacy&Commerce

United in Differences,

EDEN OF STABILITY

YANA MIKHAILOVA President of the Swiss-Serbian Chamber of Commerce

MARKO ČADEŽ

President of the Serbian Chamber of Commerce

ANA GRUJOVIĆ

Executive Director Swiss-Serbian Chamber of Commerce

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Uncontested leader in luxury watches

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The Swiss have a long tradition of watchmaking. Vacheron Constantin was founded in Geneva Switzerland in 1755 and is the oldest watch manufacturer in the world with an uninterrupted history.

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There was only ever one Swiss astronaut - Claude Nicollier!

As the first ever Swiss astronaut, Claude Nicollier has flown on four Space Shuttle missions during his career. Nicollier became the first astronaut of the European Space Agency and thanks to him a library of fascinating Space Shuttle pictures has been made public! - 03 -

The longest stairway in the world

The Niesenbahn in the Swiss Kandertal is the longest continuous-cable funicular in Europe. Alongside the path of the Niesenbahn is the longest stairway in the world with 11,674 steps. - 04 -

Geneva has a pretty amazing river confluence

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The river on the left is the Rhône, which is leaving Lac Leman. The river on the right is the Arve, which receives water from the many glaciers of the Chamonix valley before flowing north-west into the Rhône on the west side of Geneva. - 05 -

Vineyards and wineries

Lausanne is home to a number of vineyards and wineries that produce world-famous wines. During the Reformation, Lausanne was one of the fastest growing cities. - 06 -

Team Alingh

Lead by the Ernesto Bertarelli - won the 31st America's Cup and made history by bringing this Cup to Europe for the first time in 152 years.

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The European Organization for Nuclear Research Also known as CERN is one of the world's largest and most respected centers for scientific research and particle physics laboratory. Established in 1954, the organization is based in a northwest suburb of Geneva. - 08 -

Heidi

Children's fiction published in 1881 by Swiss author Johanna Spyri, originally published in two parts as “Heidi: her years of wandering and learning” and “Heidi: How she used what she learned”. Johanna Louise Spyri author of novels, notably children's stories. Born in the rural area of Hirzel, Switzerland, as a child she spent several summers in the area around Chur in Graubünden, the setting she later would use in her novels.

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YANA MIKHAILOVA President of the Swiss-Serbian Chamber of Commerce

INTERVIEW

SATISFIED INVESTORS ARE THE BEST AMBASSADORS OF THE COUNTRY Serbia has an opportunity to improve competitiveness of the country by accelerating important structural reforms, improving efficiency of public administration, and continuing the process of the EU accession. As already settled Swiss investors witness, some progress is already visible 4

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here is no better recommendation for one country as an investment and a business destination, than the satisfaction of the companies that are already doing business in the country. At present there are about 200 Swiss and Switzerland-related companies operating in Serbia, in many fields spanning from industry to servic-

es. Having in mind that some of them are global leaders and that the Swiss economy is one of the most competitive economies in the world, it is in the best interest of Serbia to attract more investors of that kind as they bring innovation, new skills and drive export. As a result of the growing interest of the representatives of the Swiss business community in

Serbia to foster economic relations between Serbia and Switzerland, in March 2014, the Swiss-Serbian Chamber of Commerce (SSCC) was developed and since then SSCC plays an important role in facilitating the dialogue between the two countries, promoting Swiss values in Serbia and creating new networking opportunities for business professionals. We spoke with Yana Mikhailova, President of the Swiss-Serbian Chamber of Commerce, about the overall macroeconomic climate in Serbia, expectations of the Swiss business community with regard to major economic reforms in the country, creation of links between the educational system and the needs of businesses, Swiss experiences in dual education, and the activities of the SSCC and its members. The good news is that the Swiss businesses are positive about their engagement in the country, but expect the Serbian government to continue to improve the business environment in Serbia by putting more efforts into privatization of state-owned enterprises, cutting the red tape and increasing its engagement in law enforcement along the EU accession path.

What do Swiss companies operating in Serbia think of the overall business climate in the country?  In January-February 2016, the SSCC conducted a business climate survey among the members of the Swiss-Serbian business community in order to get feedback on the changes in the business climate and share expectations for the coming year. The survey confirmed a positive change in their perception of the business climate in Serbia, which is good news, as the country’s best ambassadors are businesspeople who are already well settled in the market and have positive expectations for the further business development and economic growth.

In the context of promoting new investments, what should be the future priorities of the Serbian government in terms of improving the overall busi-

LAW ENFORCEMENT, CONSISTENT, CLEAR AND TRANSPARENT IMPLEMENTATION OF THE LAWS BY ALL MARKET PARTICIPANTS, IS IMPORTANT FOR THE IMPROVEMENT OF THE BUSINESS ENVIRONMENT, AS WELL AS THE DEVELOPMENT OF THE REGULATORY FRAMEWORK

ness environment?  The biggest improvements in the business environment in Serbia will come from three major actions: a) Accelerating important structural reforms, especially the privatisation of state-owned enterprises; b) Improving the efficiency of public administration and reducing unnecessary bureaucracy, and; c) Continuing work on the further harmonisation of Serbian laws with the EU Acquis communautaire. Law enforcement, consistent, clear and transparent implementation of the laws by all market participants, is important for the improvement of the business environment, as well as the development of the regulatory framework. Investors are seeking macroeconomic and political stability, and consistent development of the economy. Serbia is well positioned to accelerate economic development and grow export, supported by a well-developed framework of free-trade agreements, not only within the region through CEFTA, and the EU, but also with Russia, Ukraine, Belarus, Turkey and EFTA countries.

How often do Swiss companies come across insufficiently trained workforce and are they willing to provide educational training at their facilities?  Apprenticeships, internships and job trainings are well-established practices in Swiss companies. Switzerland is well known for its education system, which prepares graduates to enter the workforce. For example, the Nestle Alliance for Youth programme is uniting companies around the globe to employ and train young professionals in the companies. Many SSCC members offer educational programmes to train newcomers. Serbia has a strong base in academic education. What's missing? Close links between the

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poses of contributing to the further development of economic cooperation between Switzerland and Serbia, and to promote Swiss ways of doing business – compliant, transparent, expert-driven and efficient. The SSCC business community, which unites world leading enterprises and SMEs from different industries, works actively on making Serbia a better place for businesses. SSCC members are active participants in events, workshops and conferences organised by the Chamber. They are willing to share experience, provide constructive feedback to the stakeholders and offer concrete proposals on further improvements of the business climate. I see the commitment of SSCC members to challenge the status quo and make Serbia a better place to do business as a major success of the SSCC. A good example of such activities will be the Conference on the Development of SMEs in Serbia.

How does the Chamber encourage trade between the two countries and the arrival of Swiss investors in Serbia? education system and industry. The current educational model leaves a gap in certain skills. That gap is usually covered by companies’ training courses. Small and medium-sized enterprises that have a limited training capacity inside their companies face difficulties in recruiting skilled specialist – graduates.

SERBIA HAS STRONG BASE IN ACADEMIC EDUCATION, BUT THERE IS A MISSING LINK BETWEEN THE EDUCATION SYSTEM AND INDUSTRY. DUAL EDUCATION SYSTEM, WHICH IS WELL ESTABLISHED IN SWITZERLAND, IS SEEN BY SSCC AS A GOOD SOLUTION

Speaking from your experience in Switzerland, what do you think is the most important thing for Serbian legislators to do now, considering that they have been busy drafting the Dual Education Law?  Clarity of the strategic direction of the Serbian Government in modernising and developing the education system in Serbia increases the attractiveness of the market for investors. The new education system is expected to be better adapted to the needs of the economy; and the dual education system, which is well-established in Switzerland, is seen by SSCC as a good solution. However, the development of the dual education law itself, or the transfer of dual education knowhow, will not change the country’s education system immediately. That will require consistency in implemen-

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tation of the new programme, as well as partnership of the public and the private sectors to establish a well-functioning dual education system in the Serbian context, which differs much from the Swiss one.

What are the Swiss-Serbian Chamber of Commerce's biggest successes to date?  The Swiss-Serbian Chamber of Commerce is an organisation established for the pur-

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 The SSCC provides business assistance to potential Swiss investors who are evaluating the possibility of entering the Serbian market, contributes to the resolution of existing issues, and also contributes to creating new business opportunities for the member-companies.

To what extent could turbulences, both in the EU and in the region, impact on the business activities of Swiss companies in Serbia, considering that the EU is one of Serbia’s biggest export markets?  The modern world is interconnected and any changes in the economic or political context in the EU or the region will have a certain impact on all companies operating in the country. However, despite of all adversities, Serbia has an opportunity to improve the competitiveness of the country by improving the business climate and continuing economic reforms. The sustainable economic growth that has been achieved in the last few quarters might positively impact investors. SSCC members, who have been successfully developing their businesses in Serbia for years, will continue to contribute to the economic growth of the country, as well as to promoting Serbia as an investment destination.

MARKO ČADEŽ President of the Serbian Chamber of Commerce

INTERVIEW

MODEST, BUT COULD BE BETTER Our respective economies have all the prerequisites to cooperate well and, owing to their complementary capabilities and needs, trade between the two countries could be more balanced, while investment cooperation and overall economic relations could be of even better quality and more successful

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eforms and an obvious potential for closer cooperation between the two economies give us enough reason to be optimistic when it comes to the development of the Serbian-Swiss cooperation – says Marko Čadež, President of the Serbian Chamber of Commerce. Here we talk to Mr Čadež about strengthening and deepening trade and investment ties between the two countries, as well as about better connection between the in-

terests of the state, companies and workers, in terms of educational policies.

We have been witnessing the growth of trading activities between the two countries, as well as the growth of the deficit on the Serbian side. What led to these trends and what results do you expect until year’s end?  The shortest review of our trade with Switzerland in the last decade could be summed up with the fol-

lowing words: modest, but could be better. Although trade between Serbia and Switzerland, and Serbian exports to Switzerland, have increased 2.2-fold in the last decade, realistically speaking the trade turnover is still very small. The biggest turnover was last year, at €325.6 million, but this was accompanied by the highest Serbian deficit ever, amounting to €185.2 million. When you have such relatively most trade as Switzerland and Serbia have, it is enough to execute one large export-import deal for the entire situation to change to become much better, statistically speaking. Last year's growth in trade is a result of higher export, which grew from €183.1 million in 2014 to €255.4 million, which was the value of the trains that Serbian Railways imported from Swiss company Stadler. Looking at the data for the first half of this year (€100 million worth of trade with only a third of it being Serbian export), if something doesn't change for the better in the following months we are going to end this year with a drop in trade and import compared to last year. In terms of export, the Swiss market is one of the Western European markets that, so far, we haven't been able to significantly conquer, and on which we have never managed to sell more than €80 million worth of goods and services. While trade between the two countries is constantly burdened by the Serbian deficit, in the last few years Serbia has recorded growth and a positive balance in trading in services. According to the data collated by the NBS in 2015, Serbia’s revenue from exporting to Switzerland stood at €210 million, while we spent €151 million on importing Swiss services. In the first quarter of this year alone, we exported €79 million worth of services, which exceeds last year’s entire export of goods.

Which areas have the biggest potential for higher Serbian export and more balanced trade?  Apart from ICT services (software applications, maintenance and servicing), agriculture, the food industry, electronics, wood processing, rubber & plastic production and tourism all have excellent export growth potential. If we are talking about particular products, analyses have shown that Switzerland needs the following goods that we produce – maize, cornflakes, cereal grain, pipes, hoses and ancillary equipment made of plastic, plastic products used in packing and transporting goods and furniture. We could also sell more foodstuffs, pharmaceutical and natural cosmetic products, plastic and rubber products for industry and homes, and other products.

When it comes to balancing out the trade between the two countries, we should bear in mind the fact that our import is pretty rigid, because we mostly import goods from Switzerland that we have no substitute for, like specific medications, rail cars, medical equipment and machinery.

Do you think that Swiss investments in Serbia will continue?  There are around 190 Swiss companies already operating in Serbia, both in the production and service sectors, including Nestle, Basler, Pharmaswiss, Roche, Holcim (following the global merger with French company Lafarge, Holcim's assets in Serbia were sold to Irish company CRH), SIKA, Aquawell Group, and Holiday Inn Express Hotel, which is owned by Monterosa. Apart from the companies that already operate here announcing that they are going to expand their operations in Serbia, several Swiss companies that have never operated or invested here have serious

IN THE FIRST QUARTER OF THIS YEAR ALONE WE EXPORTED €79 MILLION WORTH OF SERVICES, WHICH EXCEEDS LAST YEAR’S ENTIRE EXPORT OF GOODS

plans for investing in Serbia. Our IT sector is especially appealing, as is food production (confectionary industry in particular), clean technology and renewable energy sources. The cooperation areas that hold great potential (especially for strategic partnership, production cooperation and investing in the Serbian economy) are the following: machine building, the pharmaceutical industry, the textile industry, wood processing and furniture, and tourism. The implementation of some of the announced investments has already begun. For instance, PM Technik has leased a hall for the production of precise mechanical devices in the Svilajnac Industrial Zone, which is also occupied by Dutch-Swiss fruit and vegetable processing company Tri-Stan Fresh Produce. Our expectations regarding new Swiss investments are based on the results of the progress we made in reforms and in improving our business and investment climate in Serbia, which have already been recognised by Swiss companies in Serbia, as stated in the latest survey for doing business in Serbia. This year, more than two thirds (double last year’s number) of the surveyed companies said that the business climate in Serbia was satisfactory, while 63% think that it has improved from last year. This is also why more than half of the Swiss companies expect their business results to improve this year. I believe that the continuation of the reforms conducted by the state and our Chamber's activities are going to prompt Swiss companies to start their planned investments in Serbia as soon as possible.

You have also announced the adoption of the Dual Education Law in Serbia, which the Serbian Chamber of Commerce has also helped to draft.  Serbia is missing a law that will serve as a connection between the interests of the state, employers and workers by making education serve economic growth and development. Although the existing legal framework, which regulates vocational education, recognises the role that companies play, the Serbian education system is still viewed only through the activities of educational institutions, so in order to efficiently implement the dual educational model a new legal framework would have to be adopted. This is not only one but several laws that will comprehensively regulate the rights and obligations of all participants in the development of cooperative high school education to serve the Serbian model of dual education.

In drafting this new regulation, what can Serbia use from the German, Swiss and Austrian experiences? SWITZERLAND 2016

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 The vocational education systems in Austria, Germany and Switzerland are excellent examples of a successful implementation of this educational model. We can learn a lot from these countries, as well as through the projects that serve to support dual education in these countries. We can also apply a lot in our environment. We could draw a lot from experiences and solutions regarding contractual regulation of the students’ “working status” while they are learning and working in a company, as well as the compensation they receive for that. Also, we can learn how to determine tax rates on the money students will receive under the dual education model, how to stimulate employers to get involved in this kind of education (maybe provide tax incentives or something similar), which conditions companies need to fulfil, who are the mentors going to be and how to assess the risk associated with such work. Of course, we cannot always copy the legal solutions devised by these countries, but we have to adapt them to our economic system and environment.

bodies and other institutions, as well as those bodies that are in charge of education, the economy, business and the labour law. Good coordination and the strong resolve of all participants in the process are more important than the organisational form. This will ensure the implementation of dual education and the schooling of our children in line with the real needs of our economy and labour market.

In the aforementioned countries, businesses also cover part of the costs associated with schooling young people. Do you think that our employers are

Does the same ministry in Switzerland deal with the economy and education issues? Do you think that our new government will consider bringing these two sectors closer together?  As Prime Minister Vučić said in his expose, dual education holds an important place in the agenda of the Serbian government and is one of the joint priority projects, the successful implementation of which requires engagement and cooperation of all state

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APART FROM THE COMPANIES THAT ALREADY OPERATE HERE ANNOUNCING THAT THEY ARE GOING TO EXPAND THEIR OPERATIONS IN SERBIA, OUR IT SECTOR IS ESPECIALLY APPEALING, AS IS FOOD PRODUCTION (CONFECTIONARY INDUSTRY IN PARTICULAR), CLEAN TECHNOLOGY AND RENEWABLE ENERGY SOURCES

also willing to do this?  Businesses are the ones that cover most of the costs of dual education. Between 60 and 80 per cent of the money set aside for such education is spent on scholarships (wages and insurance), and the rest on state subsidies. Implementation of dual education is a huge investment, but it is even costlier for businesses when they can't find qualified and trained staff able to fulfil the companies’ requirements. Every time they hire an insufficiently trained employee or an intern, companies have to pay more. For instance, in the period between 2001 and 2012, Serbian businesses had to pay €3.5 billion for this.

Could you tell us more about the new Swiss project in Serbia called “From Education to Employment (E2E)”?  The E2E project (“From Education to Employment”), which is funded by the Swiss Development and Cooperation Agency (SDC), is focusing on young people and their employment opportunities. Also, the project's Component 1 focuses on supporting national employment policies and hiring young people and is implemented by the Social Inclusion and Poverty Reduction Unit of the Serbian government. The second component is dedicated to promoting the hiring of young people through a test implementation of the model for the development of youth skills and public-private partnership at the local level. This component is implemented by IP Consult in five medium sized towns, namely Knjaževac, Pirot, Novi Pazar, Kruševac and Kragujevac.

ANA GRUJOVIĆ Executive Director Swiss-Serbian Chamber of Commerce

INTERVIEW

GROWING BUSINESS COMMUNITY

lthough Swiss-Serbian Chamber of Commerce is a young organisation, its activities and support it offers to the members, made SSCC a focal point for promotion of economic and commercial relations between Switzerland and Serbia. One of the forthcoming activities is a ‘’Conference on Small and Medium-sized Enterprises SMEs’’ scheduled for October 2016, as a part of the continuing Swiss-Serbian dialogue with a view of strengthening the competitiveness of local SMEs and their importance for the

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BY PROMOTING SWISS VALUES SUCH AS QUALITY, KNOWHOW AND WORK ETHICS, SSCC STRIVES TO CONTRIBUTE TO FOSTERING A MORE COMPETITIVE BUSINESS ENVIRONMENT IN SERBIA

Switzerland has always been among the top foreign investors in Serbia and the Swiss business community is geting year over year stronger. Potential investors from Switzerland are showing growing interest in ICT, wood processing and mechanical sectors

further development of business ties between two countries.

How many members does SSCC have today and how has its work evolved since its creation?  Founded in 2014, SSCC gathers today 65 member-companies. Our membership includes world's leading multinational enterprises as well as small and medium-sized enterprises (SMEs). The diversity and quality of our members largely contributes to successful implementation of SSCC’s activities. SSCC provides members with the opportuni-

ty to exchange ideas and develop networks and our Association also strives to promote members' interests to key decision makers and to help develop economic and commercial relations between Switzerland and Serbia. With this in mind, SSCC has recognized the importance of the SME sector for the further strengthening of the Swiss-Serbian business relations and is now actively working on identifying actions which are needed to further faciliate the sustainable growth of SMEs. Also, SSCC is developing marketing activities in order to promote the concept of ’’Swissness’’ and raise the visibility of our member-companies’ business achivements. By promoting Swiss values such as quality, know-how and work ethics, SSCC strives to contribute to fostering a more competitive business environment in Serbia.

 During our internal discussions, SSCC members expressed great interest in the following areas of the local business environment: access to finance, labor legislation flexibility, labour productivity and public administration efficiency. On this occasion, Swiss companies working in Serbia also confirmed their readiness to help develop projects which could contribute to better matching employees’ skills with labor market needs. Then, we often receive requests from

regulations and good business practices. They also provide SSCC members with answers and guidance about the implementation of various new laws in Serbia. For example, we held a seminar on protection of whistleblowers and personal data protection, cross-border movement of workers and distribution and franchise. Also, SSCC has recently started to organize field trips in an effort to increase the visibility of members’ business activities and their CSR programs.

In which areas do potential Swiss investors show interest?  Switzerland has always been among the top foreign investors in Serbia and the Swiss business community is geting year over year stronger. Potential investors from Switzerland are showing growing interest in ICT, wood processing and mechanical sectors. We are being contacted by potential Swiss investors who are looking for detailed information about the existing business opportunities on the Serbian market and for practical support. Therefore, SSCC also provides on-demand based facilitation services to Swiss companies looking to expand their business operations in Serbia as well as to local companies which are showing interest in the Swiss market.

ONE OF THE MAIN BENEFITS OF SSCC’S MEMBERSHIP LIES IN OUR ROLE TO ENABLE THE EFFICIENT EXCHANGE OF BUSINESS INFORMATION AMONGST THE MEMBERS AND TO PROVIDE THEM WITH PRACTICAL GUIDANCE

Which events are planned for the upcoming period?  In October 2016, SSCC will be holding a ‘’Conference on Small and Medium-sized Enterprises SMEs’’ in the context of the ‘’Year of Entrepreneurship’’ in Serbia. The Conference will take place as part of the continuing Swiss-Serbian dialogue with a view of strengthening the competitiveness of local SMEs and outlining their importance for the further enhancement of business ties between Switzerland and Serbia. SSCC members have already contributed to the preparation of this event by participating to our internal workshops, where they shared their experiences and insights about the SME sector. These sessions allowed us not only to better understand which topics were considered as being crucial for the further development of local SMEs but also to build stronger relationships with our members.

For which areas of the local business environment do your members show the most interest?

our member-companies to provide practical support and guidance related to specific customs procedures and operations in Serbia or about certain administrative regulations in Switzerland. One of the main benefits of SSCC’s membership lies in our role to enable the efficient exchange of business information amongst the members and to provide them with practical guidance, which is based on the experience and expertise of other members of SSCC community.

What type of events has SSCC been developing over the last 2,5 years?  In addition to the mentionned conference and internal workshops, SSCC offers a comprehensive programme of networking events, seminars and working breakfasts throughout the year. Our seminars are organized in close cooperation with experts from SSCC member-companies and they cover a variety of topics to keep members up-to-date with local legislative rules and

How are SSCC members networking and in which way do they exchange experiences in Serbia?  SSCC organizes dynamic and business-orientated networking events with a view to offering members a free and unique opportunity to exchange their experiences and develop the network of their contacts. Some of these events are members-only events, and some of them are open for the entire Swiss-Serbian business community. This was the case with the ’’Swiss Business Networking Event’’, held in December 2015, which was co-organized with the Swiss Embassy in Belgrade with a view to strengthening the ties between the members of the Swiss-Serbian business community. Also, SSCC has developed an interactive platoform page on its official webiste as an additional communication tool for building a well-connected network of SSCCs members.

How does SSCC cooperate with other business associations in Serbia?  This year, SSCC has organized for the first time a networking event in cooperation with two other business associations in Serbia. This event, which took place in April 2016, was entitled ’’Speed Business Meetings’’. In a series of brief exchanges, organized in the round robin model, representatives of SSCC, AmCham Serbia and the Hellenic Business Association (HBA) represented their goods, services and special offers developing the business and sales leads. SSCC members welcomed this type of event and we are looking forward to cooperating with other business assocations in the future.

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ŽIKICA MILOŠEVIĆ

SWISS-SERBIAN TRADE

GREAT POTENTIAL, INSUFFICIENT REALISATION Swiss companies are interested in strategic partnerships, production cooperation and investing in Serbia, namely in its machine building, pharmaceutical, wood processing, furniture making, food, tourism and IT sectors. Implementation of such projects would boost investments and underdeveloped trade between the two countries

witzerland is Serbia's most importan trade partner among the EFTA countries which also include Iceland, Licthenstein, and Norway. According to the last year's data, the trading between the two countries makes 84% of the total trade between Serbia and the EFTA countries. Swiss companies are interested in strategic partnerships, production cooperation and investing in Serbia, namely in its machine building, pharmaceutical, wood processing, furniture making, food, tourism and IT sectors. Implementation of such projects would boost investments and underdeveloped trade between the two countries. The best results in trading with Switzerland were reached last year when the trade amounted to €326 million. However, its

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structure is not favourable with Serbia recording a pronounced deficit. Furthermore, the export dropped by 5.6% and stood at €70.2 million while the import grew by 39.5% and amoounted to €255.4 million. The Serbian side recorded a deficit in the

THERE ARE APPROXIMATELY 190 SWISS COMPANIES IN SERBIA, OPERATING BOTH IN THE SERVICE AND PRODUCTION SECTOR, WHICH EMPLOY AROUND 8,000 PEOPLE

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amount of €185.2 million which was almost four times bigger than the export. The value of Serbian export to Switzerland in the period between 2005 and 2015 was more than doubled, while the export to import ratio was not satisfactory. Last year, the export to import ration stood at 27.5%. Still, in the first half of this year, this ratio reverted to almost 50%. In the period between January and June 2016, the total trading between the two countries stood at €128.5 million which is a 31.4% decline mostly due to lower export. Our export was €42 million (a 28.2% hike relative to the same period last year), while our import from Switzerland was €86.5 million (a 43.7% drop). Last year, we mostly exported the following to Switzerland: frozen raspberries, doors, windows and frames, plastic, wrist

watches, glass products, structures and parts of iron or steel, parts of wooden furniture, fittings for scaffolding, formwork and supporting elements, tires, padded seats for cars and kerosene. We mostly imported the following from Switzerland: self-propelled rail cars, medicines, electricity, plastics (polyethylene forms), parts and accessories for motor vehicles, individual machines and appliances, optical components, metal treatment machines, fungicides and mixtures of odoriferous substances. This year, we also started to export: unwrought gold, oil cakes and other solid residues from soy, doors and windows, plastic, elements of iron scaffolding, soy oil and wood seats, while there were no major changes to the list of imported products. As per the SITC sectors, in the first half of 2016, we mostly exported the following to Switzerland: manufactured goods classified chiefly by the materials - 31.2% of our exports to Switzerland this year, expressed in value €13.1 million (up by 4.2%), various finished products - 19.8% (€8.3 million, a decrease of 6.1%) and food and live animals 18.2% (€7.6 million , an increase of 72%). At the same time, we mostly imported the following: chemical and similar products 43.4% of our imports, valued at €37.6 million (down by 22.7%), machinery and transport equipment - 22.1% (€19.2 million, a decrease of 75.9%) and various finished products 15% (€13 million, an increase of 11 , 4%). As per the SITC group, this year we have been mostly exporting the following: Prema grupama SMTK u ovoj godini najviše izvozimo: structures and parts 10% of total exports to Switzerland (€4.2 million, an increase of 29.9% compared to the same period previous year), furniture and parts - 8.2% (€3.4 million, an increase of 11.9%), gold (excluding gold ores and concentrates) - 7.8% (€3.3 million - last year, this product was not exported), fruits and fruit-related products (excluding juices) – 7.4% (€3.1 million, an increase of 21.4%) and passenger cars - 5.5% (€2.3 million, an increase of 20.9%). We imported the following: medication - 25.9% of the total imports from Switzerland (€22.4 million, a decrease of 27.4%), watches and clocks - 4.9% (€4.2 million, an increase of 27.2%), rotating electrical machines – 4.3% (€3.7 million, an increase of over 900%), panels and similar products made of plastics - 4.2% (€3.6 million, a decrease of 10%) and machinery for particular industries - 3.2% (€2.8 million, a decrease of 69.8%). 12.4% of our imports from Switzerland belongs to unclassified categories (worth €10.8 million). Last year, the following companies exported the most to Switzerland – Fiat Chrysler Serbia, Absolut Time, Kolarević

Pojate, Mikrotec Optika and Tobler-Skele. These are the biggest importers: Serbian Railways, Roche Belgrade, ERMA Belgrade,

IN THE PERIOD BETWEEN JANUARY AND JUNE 2016, THE TOTAL TRADING BETWEEN THE TWO COUNTRIES AMOUNTED TO €128.5 MILLION WHICH IS A 31.4% DROP DUE TO LOWER EXPORT

NBS (3.7%) and EFT Trade, Belgrade. In terms of trading in services, Serbia has also recorded positive results. According to the National Bank of Serbia, in 2015, we exported €210 million-worth of services to Switzerland and imported €151 million. In the first five months of this year, this ratio stands at €95 million to €68 million which puts Switzerland in the fourth place in the list of the countries that we sell our services to the most. Most of this cooperation and the positive results in the service sector can be attributed to tourism. In 2015, Switzerland takes the sixth place on the list of the countries that brought us the biggest when it foreign currency revenue from tourism with its €56 million. We imported spent only €11 million on Swiss tourism services. Also, in the first five months of this year, we generated €33 million more from Swiss tourists than from the tourists from any other country, while we spent €6 million on the Swiss tourism services. In terms of the total net investments, amounting to €483.1 in the period from January 2005 to December 2013, Switzerland takes the 10th place on the list of the biggest foreign investors in Serbia. In the period from 2014 to 2015, the country invested another €212.3 million, while, in the Q1 of this year, the total Swiss net investments amounted to €4.1 million. Swiss investments are diversified and cover both the service and production sector. The following Swiss companies operate in Serbia - Nestle Adriatic, Basler, Pharmaswiss, SIKA, SR Technics, PM Tehnik, Monterosa, Aquawell Group, Roche and several others. Also, Swiss IT companies have expressed a heightened interest for investing in Serbia. Serbia is interested in applying the good practice cases from the Swiss dual education system here.

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CORP ORAT E

SANJA PEŠIĆ

Understanding Consumer Interests in

Chief Executive Officer, Alma Quattro d.o.o.

KEY TO SUCCESS We are trying to keep up with the global trends in outdoor advertising by closely following the demands of the local market the success of outdoor advertising campaigns?

lma Quattro is the leading outdoor advertising company in Serbia that has been providing advanced communication solutions to its clients for 22 years.

How much has the market evolved in this period and what is the typical profile of your clients today?  Indeed, the last 22 years, since the company's inception, have been an important period during which a lot has changed including our company going through different development stages. The first significant change that affected our business was the ban on advertising alcohol and tobacco (from 2005). Alcohol and tobacco companies were, up until then, the biggest advertisers and, following the ban, they stopped existing as clients to us almost overnight. The second revolution started with the arrival of foreign mobile telephony operators to our country (in 2008) and with the restructuring of the banking sector which opened the door to the arrival of many foreign banks. The tough competition in these sectors in a market as small as ours has also produced a great need for advertising of their services in order for them to have the best market position and set themselves apart from the competition. The typical profile of our clients has stayed the same despite the global economic changes and development of new technologies and industries. Still, there is one constant in the world of outdoor advertising which is global brands with long outdoor advertising tradition like Coca-Cola which has been advertising its products in this way for the past 120 years.

 Measuring the success of an advertising campaign depends on several factors and it is quite a complex issue, especially if a client uses media mix. Alma Quattro has included the measuring of outdoor effects and exposure to advertising messages in its media planning system. The OMEX research (Out-Of-Home Measurement Exposure) offers an opportunity to quantify measuring indicators which are a standard

Global brands with a long outdoor advertising tradition are our standing clients in our industry like Reach, GRP, OTS, CPP and others. The aim of this research is to establish a reliable measurement system that will enable planning and estimation of the effects of an outdoor campaign before the campaign even begins. Selection of locations in line with these values and devising a network of locations that correspond to the movement of people, or rather po-

What service packages do you offer to companies and how can they measure

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tential consumers, is the biggest skill one can have in this business.

How much have new technologies improved the outdoor advertising sector?  When it comes to our business and opportunities for our clients, we try to keep up with the global trends in outdoor advertising as much as our local market keeps up with the global developments. What is important to understand is that not every technology is useful and valuable just because it is new and they don't necessarily improve our profession. Time tells whether something is useful.

What additional services do you offer to your clients?  We are a part of the international JCDecaux system which is based in France and which has been in this business for over 50 years. JCDecaux is also No. 1 in the world of the OOH business. We are also a part of APG SGA from Switzerland which has over 100 years of experience in this. What we have learned from the global practices and our mother companies is to tie our business to urban furniture like public transportation stops which not only have advertising displays of our clients but also serve as the property in public domain for all citizens, provide shelter from bad weather and give information.

ECONOMY

THE EDEN OF STABILITY The Swiss economy is one of the most resilient and most stable in the world. It is a symbol of consistency and defiance, and it resembles the spirit of Swiss people, who are always cautious and strictly neutral

NEUTRAL AND SOBER

hen it comes to integration or agreement, like in the case of the Schengen Agreement or the European Economic Area, or EFTA, the Swiss always seem to show good judgment. So, the question is, why and how has Switzerland—a tiny, landlocked country with few natural resources—managed to be so successful for so long, and in so many areas? It is not only banking. Banking thrives when you are neutral. Banking thrives when you have one of the strongest currencies in the world. In his book Swiss Made, James Breiding says, “in pharmaceuticals, machinery, even textiles, Swiss companies rank alongside the

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biggest and most powerful global competitors. How did they get there? Can the Swiss continue to perform in a hyper-competitive global economy?” Well, the secret is, as always, beyond the myth. It is actually something much more down-to-earth.

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CAN THE SWISS CONTINUE TO PERFORM IN A HYPERCOMPETITIVE GLOBAL ECONOMY? WELL, THE SECRET IS, AS ALWAYS, BEYOND THE MYTH. IT IS ACTUALLY SOMETHING MUCH MORE DOWN-TOEARTH

The economy of Switzerland proved to be one of the world's most stable economies for many reasons. Its long-term monetary security and political stability have made Switzerland a safe haven for investors, creating an economy that is increasingly dependent on a steady influx of foreign investment. When the exchange rate of the Swiss Franc against the Euro falls, the impact can have a rippling effect around the world. Due to the QE policy of the European Central Bank, there are a lot of facts to consider when discussing the Swiss Franc and monetary stability. Will the Swiss go down with the rest of the Eurozone and the EU if the things get rough? Of course not. Why would they anyway? They are neutral.

One of the secrets for success could be that they know they are poor and have to work hard, as previously mentioned in the analysis of the Swiss spirit. And since Switzerland is a country of comparably small size and high labour specialisation, industry and trade are the keys to Switzerland's economic livelihood. Switzerland has achieved one of the highest per capita incomes in the world, along with low unemployment rates and a balanced budget. The service sector has also played a significant economic role. The economy of Switzerland ranks first in the world in the 2015 Global Innovation Index.

HISTORY AS A TEACHER Switzerland as a federal state was established long ago. As a modern country though, it was established in 1848. Some time before that, the city-cantons of Zurich and Basel in particular had begun to develop economically due to industry and trade, while the rural regions of Switzerland had remained poor and under-developed. While most of Switzerland was primarily rural, the cities underwent an industrial revolution in the late 19th century, following in the footsteps of England. When the Industrial Revolution in textile sector took hold, people’s lifestyle changed. From that moment on, the people could change! In Basel, for example, textiles, including silk, were the leading industry. In 1888, women made up 44% of the wage earners. Nearly half the women worked in the textile mills, with household servants the second largest job category. The share of women in the workforce was higher between 1890 and 1910 than it was in the late 1960s and 1970s. And then, there were railways. Railways played a major part in industrialisation, with the first railway being built in 1847 and connecting Zurich and Baden. Due to competition between private investors, Switzerland had over 1000 km of railway tracks by 1860. Switzerland used to be considered a sweet little Middle-European country, until World Wars changed its path and it emerged as one of the most prosperous nations in Europe, the phenomenon also known as “Swiss Miracle”. After the World War I, Switzerland suffered an economic crisis. The

World War II brought profit, since Switzerland was among very few countries that managed to stay neutral (along with Spain, Portugal, Ireland, Sweden and Turkey), and due to its central geographical location in Europe.

LET FIGURES SPEAK The Swiss economy follows the typical First World model. The minority of workers is involved either in the primary or agricultural sector (1.3% of the population, in 2006), or the secondary or manufacturing sector (27.7% in 2012). The majority of the working population, on the other hand, is involved in the tertiary or services sector of the economy (71.0% in 2012). While most of the Swiss economic practices have been in conformity with the EU policies, some trade protectionism remains, particularly in the small agricultural sector.

SWISS NEUTRALITY, SOBRIETY AND CONSERVATISM, IN ADDITION TO THE SWISS FRANC, MADE IT HAPPEN AND WILL CONTINUE TO MAKE IT HAPPEN IN THE FUTURE

Switzerland also has a highly developed industrial sector, undeservedly not very well known in the world. Notable examples include Nestlé (food processing), Sika AG (products used in vehicle industry and construction), Novartis and Roche (pharmaceutical companies) and Sarnafil (roof coating chemicals). LafargeHolcim is the largest construction materials group in the world. The CIA World Factbook estimates Switzerland's 2011 exports at $308.3 billion and the 2010 exports at $258.5 billion. Imports were estimated to be $299.6 billion in 2011 and $246.2 billion in 2010. According to the World Factbook numbers, Switzerland is the 20th largest exporter and the 18th largest importer. Switzerland's top trading partner is Germany. In 2009, 21% of Switzerland's exports and 29% of its imports came from Germany. The United States was the second largest destination for exports (9.1% of total exports) and the fourth largest source of imports (6.7%). Switzerland's neighbors made up the next largest group; Italy was third for exports (8.6%) and second for imports (10%), France was fourth for exports (8%) and third for imports (8.1%) and Austria was fifth for exports (4.6%) and sixth for imports (3.7%). Major non-European trading partners included Japan (seventh for exports with 3.6% and twelfth for imports with 2%), China (eighth for exports and imports with 3.1% and 2.5% respectively) and Turkey (sixteenth for exports with 1.2% and ninth for imports with 2.3%). In 2003, the financial sector comprised an estimated 11.6% of Switzerland's GDP, and employed approximately 196,000 people (136,000 of whom work in the banking sector); which comprises about 5.6% of the total Swiss workforce. Just like the other First World economies, Switzerland basically needs highly skilled workforce. Switzerland manages to be stable, to gain and preserve its confidence, and to be a safe haven against all the economic storms and fluctuations. Its neutrality, sobriety and conservatism, in addition to the Swiss Franc, made it happen and will continue to make it happen in the future.

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CORP ORAT E

TANJA UNGURAN Partner at Karanović & Nikolić

Positive Changes

DRIVE INVESTORS’ INTEREST Further growth in GDP is expected to accelerate to 1.8% in 2016, mainly due to additional relaxations in monetary policy, the country’s improved business climate, structural reforms and external demand recovery, all of which have been employed as part of an investment driven mind-set on behalf of governing bodies

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aving emerged from the former Yugoslavia, Serbia is today a modern and democratic European country on its path to European Union membership. Located in an important geographic spot between Europe and Asia, and occupying an area of 88,407 square kilometres, it has often been referred to as the crossroads of Europe – something that has greatly enriched the country’s overall economic potential but no doubt had an impact on its often turbulent history. Within the context of EU accession and in order to reform its economy it should be noted that since 2014, the Serbian government has taken significant steps towards reducing its debts by employing a variety of different measures including greater fiscal responsibility, a reform of the public administration, a reform of the stateowned enterprises, and an emphasis on the overall increase in public sector productivity. The April 2016 elections, which saw the Serbian Progressive Party – with Prime Minister Aleksandar Vučić at the helm– win

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a parliamentary majority once again, has thus been mandated to fulfil their campaign promises which have mostly been based on furthering economic reforms. Results so far have seen the country’s GDP grow by 0.8% in 2015, which was supported primarily by a faster growth in investments more than fiscal consolidation. Further growth in GDP is expected to accelerate to 1.8% in 2016 (currently at 1.6%), mainly due to additional relaxations in monetary policy, the country’s improved business climate, structural reforms and external demand recovery, all of which have been

Serbia developed a system of direct cash subsidies aimed at stimulating employment and investment in fixed assets

employed as part of an investment driven mind-set on behalf of governing bodies.

POLITICAL SUPPORT Speaking of government support, there has been no shortage of it in recent years in the context of attracting investors, as the investment-first mindset has manifested itself as the highest priority on the newly formed government’s agenda, taking up most of Prime Minister Vučić’s recent strategic expose. Further evidence of improvements in the general business climate in Serbia can be found in the latest edition of World Bank’s Doing Business rankings which have put Serbia at 59th place in the world – a jump of nine spots when compared to the 2015 rankings. Whilst there is still a long way to go to create a more open competitive economy at least the trends are in the right direction.

tasked to facilitate investment projects and guide the investors through all processes which must be completed to make an investment project. The Agency has a comprehensive database of available building sites, infrastructure, and available labor force in all municipalities in Serbia, and it provides potential investors with information and suggestions on the best investment sites. One of the main duties of the Agency is the administration of applications for direct subsidies for investment projects.

In addition to national regulations, Serbia has concluded a web of bilateral treaties which are very important for foreign investors. This includes forty bilateral investment treaties providing protection for foreign investors coming from treaty countries. Serbia also has a network of over 50 double tax treaties, including most EU countries, Russia, China, United Arab Emirates, and many others. Double tax treaties provide favorable tax treatment of income which investors – residents of treaty coun-

INVESTMENT PROTECTION AND INSTITUTIONAL FRAMEWORK The basic investment protections for all investors are embedded in and guaranteed by the Serbian Constitution. This primarily includes the protection of property rights and the freedom of business activity. Serbia recently replaced its old and somewhat outdated Law on Foreign Investment with a new Law on Investments. The aim was to provide effective protection to foreign investments, and build an institutional framework which will provide full administrative support to investors in Serbia. The Development Agency of Serbia (RAS) inherited the old Serbian Investment Promotion Agency. This new state agency is designated to function as the main investment hub, and provide institutional and administrative support to both domestic and foreign investors. The Agency should work as a main point of contact between investors and central and municipal authorities,

The existence of a free trade agreement with Russia is perceived as one of the main advantages of Serbia as an investment destination

tries earn in Serbia. All Serbian double tax treaties are based on the OECD Model Tax Convention on Income and Capital. Most Serbian double tax treaties offer 0% to 10% withholding tax rates on interest, dividend and royalties, and 0% tax on service income and capital gains. Furthermore, Serbia has free trade agreements with the EU, Turkey and Russia. Serbia is also a party to Central European Free Trade Agreement gathering all ex-Yugoslav countries (except Croatia and Slovenia), and Albania. Free trade agreements provide a reduction of customs duties or customs-free export and import of goods to and from treaty countries. The existence of a free trade agreement with Russia is perceived as one of the main advantages of Serbia as an investment destination for companies which want to export their products to the large Russian market. Finally, recent media reports show that Serbia is closing in on joining the Eurasian Economic Union as well, thus further expanding the list of countries and their respective markets it shares facilitated business conditions with.

INVESTMENT INCENTIVES Serbia offers a wide range of incentives for direct investments. Most importantly, Serbia developed a system of direct cash subsidies aimed at stimulating employment

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and investment in fixed assets. The system was first introduced a decade ago and was initially available only to foreign investors, but was subsequently made available to Serbian investors too. The system has undergone a number of changes over the years, but the most important characteristics remain the same. Direct cash subsidies are generally intended for investment projects which involve employing a larger numbers of employees and investing in new equipment. They are available only for investments in the production sector and those sectors of services which are intended for export. Certain industries (such as traffic industry, hospitality and leisure, tobacco industry, steel industry, energy sector and others) cannot benefit from incentives. To qualify for the

subsidies, the investment project has to satisfy the designated criteria in relation to the value of investment and the number of new employees. The qualifying criteria depends on the level of development of the area where the investment will be made â&#x20AC;&#x201C; the lower the development level, the lower is the employment/investments threshold. Relevant thresholds range from a minimum EUR 150,000 investment and minimum 20 employees in devastated areas, to minimum EUR 600,000 of investments and minimum 50 new employees in the most developed municipalities. The level of subsidies which may be awarded to an individual investor is assessed against the cost of employment. The amount of subsidies ranges from 20% (for the most developed municipalities) to 40% (for the least developed municipalities) of the total cost of gross salaries (including tax and social security contributions) paid to new employees in two years after the completion of the investment. The maximum amount of subsidies cannot exceed EUR

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3,000 (for the most developed municipalities) to EUR 7,000 (for the least developed municipalities) per employee. This amount can be increased by 10%-30% of the costs of investment in fixed assets, depending on the level of development of the area. Finally, for labor-intensive projects (projects which include 200 or more new employees) the investor may be awarded an additional 10-20% of the costs of employment, depending on the number of new employees. As a general rule, the subsidies are awarded through a public tender. The procedure includes the involvement of the Serbian Development Agency, the Ministry of Economy and the Government. As an exception, subsidies may be awarded without tender if investments qualify as investments of special interest. This includes invest-

Most of these regulatory updates and all-around efforts to improve and maintain a healthy business climate in Serbia would remain in the domain of an economic fairytale if there were no specific success stories to speak of ments of over EUR 20 million (EUR 2 million in case of the least developed areas), investments involving employment of minimum 500 new employees (100 in case of the least developed areas), and investments which include two or more municipalities.

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In addition to direct cash subsidies, municipal authorities may support investment projects by granting unused public construction land without consideration. Construction land may be given without consideration for projects which contribute to the economic development. To qualify as such, the investment project must result in an increase of employment for at least 1%, and with a proportional increase of public revenues. Except for direct cash subsidies for direct investments, Serbia offers tax incentives which are also aimed at stimulating employment and investments in new equipment. In the area of corporate income tax, the most important is the tax holiday for investments in new fixed assets. The incentive involves a tax reduction for companies which invest at least RSD 1 billion (app. EUR 8 million) in new fixed assets and employ a minimum of 100 new employees. The reduction of tax is proportional to the participation of new fixed assets in the total fixed assets of the company. This means that Green-field investments qualify for a 100% exemption. The tax holiday may be used for the period of 10 years, starting from the year in which the company starts to generate profit. Another incentive aimed at stimulating employment is the refund of salary tax and social security contributions for new employees. Companies which employ a new workforce have the right to a refund of salary tax and social security contributions which they paid for these new employees. The refund may range from 65% to 75% depending on the number of new employees. It should be stressed here that the refund of salary taxes cannot be granted to investors benefiting from direct cash subsidies for new employees - investors may opt either for subsidies or for this refund. Finally, the import of equipment contributed by a foreign shareholder to its Serbian subsidiary as a contribution in-kind (equity contribution) is exempt from customs duties.

SUCCESS STORIES Most of these regulatory updates and all-around efforts to improve and maintain a healthy business climate in Serbia would remain in the domain of an economic fairytale if there were no specific success stories to speak of. However, that is not the case here, as many multinational companies have been on the receiving end of the above outlined incentives and subsidies. Examples of these companies include Delphi, Lear, PKC, Michelin, NCR, Trizma Smart Sourcing, SR Technics, and Sitel, with many more in the process of entering or expressing interest to enter the Serbian market and join an obviously growing trend. If this trend continues there is a genuine capacity for Serbia to become a regional manufacturing hub.

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SWISS-SERBIAN CHAMBER OF COMMERCE

STRONG LINK BETWEEN THE ECONOMIES OF TWO COUNTRIES

Speed Business Meetings

Thanks to its hard work and effort, the Swiss-Serbian Chamber of Commerce (SSCC) has validated its role in improving the dialogue between the two countries, promoting Swiss values in Serbia and creating conditions for networking between Swiss and Serbian companies

he Swiss-Serbian Chamber of Commerce was founded in March 2014, as a result of the surge in the Swiss business community's interest in boosting Swiss-Serbian economic relations. Thanks to its operations, the Chamber has validated its position as an important promoter of business ties between the two economies. The main goal of the SSCC is to advance dialogue between the two countries, promoting Swiss values in Serbia and providing opportunities for business networking

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THE SSCC SUPPORTS THE SUSTAINABLE DEVELOPMENT OF THE SERBIAN SOCIETY THROUGH THE NURTURING OF SUSTAINABLE, LONGTERM SWISS-SERBIAN BUSINESS RELATIONS.

between Swiss and Serbian companies. The SSCC today has 65 members and is actively collecting new membership applications. Switzerland is one of the 10 biggest investor countries in Serbia and has invested over â&#x201A;Ź500 million in Serbia in the last decade. The biggest Swiss companies, like Nestle, Roche, Sika, SGS, Novartis, Sicpa, Sandoz Pharmaceuticals, and Ringier Axel Springer, have all recognised Serbia as a good destination for doing business. At the same time, there is still plenty of room for the arrival of Swiss SMEs in Serbia and more

Seminar cross-border movement of workforce

dynamic trade between the two countries. The SSCC is a non-profit, privately-run association which represents the interests of the Swiss-Serbian business community and is dedicated to closely monitoring the key political and economic events that impact on the operations of its members. In order to facilitate companies’ operations, the SSCC promotes and encourages the establishing and developing of dialogue between its members, official representatives of Switzerland and Serbia, and the wider business environment. Following the official inauguration of the SSCC in April 2014, the then President of the Swiss Confederation, H.E. Didier Burkhalter, addressed guests and the representatives of the Swiss-Serbian business community and said that the SSCC represents “a new way that promotes stronger relations between Switzerland and Serbia and the connections between the two countries in order to become even more productive”. The SSCC’s main goal is to help Serbian companies break onto the Swiss market, as well as supporting the interest of Swiss companies in doing business in Serbia. Considering that Serbian companies, and especially SMEs, are often faced with a lack of information about the Swiss market, its standards and certificates, as well as Swiss regulations and administrative procedures, the SSCC represents an important organisation for them that they can turn to. The SSCC plays the role of a support centre in doing business and enabling Serbian companies to eliminate the existing hurdles and have a successful appearance on the Swiss market. In order to achieve this goal, the SSCC cooperates with a network of institutional partners and its member companies, in addition to supplying Serbian companies with up-to-date business information about doing business

in Switzerland and relevant contacts there. At the same time, the SSCC represents a point of contact for all Swiss companies interested in developing business operations on the Serbian market. In accordance with this, the SSCC provides support to Swiss companies with the end goal of successfully implementing their projects.

THE SSCC'S MAIN GOAL IS TO HELP SERBIAN COMPANIES BREAK ONTO THE SWISS MARKET, AS WELL AS SUPPORTING SWISS COMPANIES INTERESTED IN DOING BUSINESS IN SERBIA

SSCC ACTIVITIES 2015 There are several events that marked the SSCC's work in 2015. In partnership with the Republic of Serbia's Customs Administration, the Swiss-Serbian Chamber of Commerce held a seminar called “Customs Procedures and Affairs”, in the offices of the Serbian Chamber of Commerce in March 2015. The seminar included over 50 participants and was held with the goal of boosting trade between Switzerland and Serbia, as well as increasing SME competitiveness through the presenting and explaining of customs clearance procedures and processes. Then, in April 2015, the SSCC organised a seminar entitled “Serbia: Your New Business Destination” at the Chamber of Commerce of Geneva, one of the oldest cantonal chambers of commerce in Switzerland. Through this seminar, companies from Geneva had an opportunity to learn more about Serbia as a potential destination for doing business, and they obtained detailed information about the Serbian business environment, its fiscal system and the leading segments of the Serbian economy. At a business forum in Zurich on 16th June 2015, which was attended by Serbian Prime Minister Aleksandar Vučić, Swiss companies were introduced to opportunities for exporting Serbian products, while the SSCC presented its plans on linking companies from the two countries. The Swiss-Serbian Business Forum, which took place in the premises of the Serbian Chamber of Commerce in October 2015, assembled over 150 representatives of state bodies, the private sector, business associations and other interest groups. On that occasion, Swiss business delegates were able to find out more about business cooperation between Switzerland and

Swiss Business Networking Event

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Visiting Nelt

Serbia. Also at the forum, several Swiss companies, including Nestlé Adriatic, ABB and Emilio Stecher d.o.o., presented their experiences of dual education. At the end of the forum, B2B meetings were held between Swiss and Serbian companies, with the goal of establishing new business contacts and finding out about the possibilities of developing partnerships and cooperation between Switzerland and Serbia. In December, the SSCC and the Swiss Embassy in Belgrade jointly organised the “Swiss Business Networking Event”. During this event, members of the Swiss Business Community in Serbia had the opportunity to strengthen mutual ties and learn more about SSCC activities and future plans aimed at boosting business relations between Switzerland and Serbia.

2016 The SSCC held its General Assembly in February 2016 and appointed new members to its Managing Board. Rolf-Juergen Seyerle, Managing Director of Star Import d.o.o., and Edin Dačić, General Manager of Daccomet AG and President of the Assembly of Standard Furniture Serbia, became new Board members. The SSCC Board also consists of Yana Mikhailova, Nestlé Adriatic Regional Director, in the post of SSCC President, Ana Govedarica, General Manager at Roche d.o.o. Serbia, in the post of SSCC Vice-President, and members Adrien Alkabes, Director of Monterosa d.o.o., Xavier Davard, General Manager of Sicpa Security Solutions Albania and Balkan Region, and Sava Petrović, Director of Petite Genève Petrović. In April 2016, the SSCC, along with

THE SSCC, ALONG WITH AMCHAM SERBIA AND THE HELLENIC BUSINESS ASSOCIATION, ORGANISED A SPEED BUSINESS MEETING FOR MEMBERS, OFFERING THEM THE OPPORTUNITY TO CREATE NEW BUSINESS OPPORTUNITIES

AmCham Serbia and the Hellenic Business Association, organised a Speed Business Meeting for members, offering them the

Swiss National Day 2016

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opportunity to create new business opportunities. In a series of brief exchanges, organised according to the round robin model, this 90-minute event saw each guest participate in 10 formal meetings. In May 2016, the SSCC organised a visit to SSCC member-company Nelt. Guests had the opportunity to learn about the business complex in Dobanovci and Nelt’s logistic, warehousing, distribution and other services. The SSCC also co-hosted a seminar on the Cross-border Movement of Workforce. SSCC members had a chance to get acquainted with the legal and practical aspects of worker migration and cross-border secondments, the administrative challenges of obtaining residence and work permits, and the novelties in legislation regulating the secondments of employees abroad.

CORP ORAT E

Continuous Innovation in the

PRODUCTION OF BIO-CHAR

Basna a pioneering startup producing and introducing Biochar in Serbia. Biochar is applied in farming for animal health and soil enhancement and It contributes fighting the greenhouse effect

he Basna Company was founded in Čačak, in 2010, with Swiss private capital and a vision of implementing sustainable, environmental friendly technologies in Serbia. The company has its production site in Viča, in the beautiful Dragačevo in West Serbia. The proprietors of this internationally renowned company– Balz and Vesna Baur, advocate accountable business policy through responsible treatment of local community and environment. Their goal is to make sustainable use of the resources and develop and promote products for organic food production and sustainable agriculture on the base of Biochar application. Biochar is made of organic waste at high temperatures in accordance with the EU standards and the European Biochar Certificate (EBC). Biochar can be used for animal and human consumption, eg. as an ingredient in bread or cheese, as well as many other industries like metallurgy or in cosmetic products such as natural soaps, scrubs and similar. During the production of Biochar a lot of excess energy emerges and Basna is looking at this stage for a strategic partner or in-

Imagine heating your swimming pool in wintertime... ...and actually doing more good for the environment, then if you weren’t heating it

vestor for converting this energy into electricity and heating greenhouses for organic fruit production. At the same time all Carbon captured in Biochar will eventually end up in the ground; thus CO2 is sequestered from the atmosphere. Therefore production of Biochar and Energy fights the greenhouse effect, since it works as a Carbon sink. The Basna Company currently manufactures the following: Bio-Char: used in animal diet on a daily basis, to eliminate the preventive use of antibiotics or to fight acute diseases. It improves the well being of animals, milk values, fodder uptake and reduces veterinary costs. After all it stores nitrogen in the manure and increases its fertilizer value enormously. Agro-Char: organic soil conditioner which, thanks to its high stability, remains in the land for several decades. In this way, it stops the environmental pollution, degradation of arable land, boosts soil fertility and plant yield. BBQ briquettes in three different variants to suit different tastes and needs. "Original" is ideal for longer grilling, "Professional" burns at a high temperature, and "Smoky" has the natural aroma of smoke. These BBQ briquettes are exported to Switzerland, Germany, Slovenia, but can also be found in renowned restaurants and retail stores in Serbia. In an effort to continue expanding its social responsibility mission, the Basna Company organizes visits of domestic and foreign students, as well as other interested parties, to its premises, thus sharing its knowledge about production of Biochar and its use. Furthermore, the guests will be able to tour Dragačevo which cultural and historic monuments, natural attractions and other values are a hidden treasure of this area. www.basna.net

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— Text —

ŽIKICA MILOŠEVIĆ

THE SPIRIT OF SWITZERLAND

UNITED IN DIFFERENCES

Fascinated by his ‘second homeland’, Jorge Luis Borges wrote, in his work entitled ‘The Conspirators’: ‘In the centre of Europe they are colluding, plotting a conspiracy. The time dates back to 1291

tria-Hungary etc., it is indeed a great surprise that such a country can exist, survive and prosper in stability. Perhaps the UK, Spain, Italy or Belgium can experience some centrifugal tendencies, but Switzerland never seems to do so. And to the people of the Balkans this idea seems even stranger. We could not preserve one such union. The ‘Little Yugoslavia’, Bosnia-Herzegovina, seems to be constantly unstable. But Bosnia is nowhere near the model of the Swiss Confederacy. Bosnians are Slavs

t is all about the people with different strains, who profess different religions and speak different languages. They have taken the strange resolution to be reasonable. They have resolved to forget their differences and accentuate their similarities. Perhaps what I say is not true; hopefully it could be prophetic.’ Borges narrated a romanticised story about the foundation of Switzerland. After dissolution of a great number of multinational countries, like Yugoslavia, Czechoslovakia, USSR, and even Aus-

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MAYBE IT WOULD BE CLEVER TO ADOPT THE SWISS MODEL, AND START THINKING THIS WAY: WE ARE POOR, AND ONLY THE HARD WORK CAN SAVE US. IT WORKED FOR THEM, WHY WOULDN’T IT WORK FOR US?

and are united by one language, which funnily now bears three different names. The Swiss are German, French, Italian and even Rumaansh-speaking, and also both Protestant and Catholic. Such an improbable union! But it is one of the most resilient (con)federations in the world, and a perfect example of how shared interests or simply common sense can ensure a stable, prosperous and predictable future in the unpredictable world.

CLOSE, YET OPEN Although the Swiss are always open to new ideas, they are inherently conservative. Some features of the famous 'Alpine conservativism' or 'Middle European conservativism' is particularly emphasised in Switzerland. Two of the Swiss federal cantons have only recently given women the right to vote. Some of them used to have 'direct democracy' with 'all adults gathering in the middle of the main square and voting with acclamation'. Referendums are fairly frequent in Switzerland – all major issues have to be approved by the people of Swiss Confederacy. The voting

system is complicated, with both the majority of voters and majority of cantons required to vote in favour of the proposal. People often think that only a member of the UN is considered an independent country. This is true if we take an example of Kosovo, South Ossetia, Abkhazia, or Taiwan. But, Switzerland is undoubtably independent and diplomatically recognised, and it only applied to be a member of the UN in 2002! Eternal neutrality was the basic idea of the people who suffered so much in the Middle Ages that they decided to form a union of future, regardless of any religious or linguistic associations. Open for future admissions. Well, does it remind you of anything? EU before the EU? And still, Switzerland is marked with the double-checking of every new idea, persistently clinging to the old models that have proven to be working. Some places do not have cars, some practices are strictly preserved. No modern ideas are accepted easily in the country which somehow seems the most modern and of all. Reminds you of Japan? With a reason. No-man’s land, which belongs to its citizens only. No wonder how such a combination of flexibility and persistence made it ideal place for institutions like The League of Nations and UEFA. When you want to be neutral, you choose CH-label.

and build your future upon it. And indeed, we in Yugoslavia were taught that we lived in the richest country in the world and we just had to make use of it. The Swiss are taught that they were poor and that only hard work could save them. Who won the race? It is sad to see many countries of the Third World living in a rich natural environment and the abundance of natural resources and not using them. It is also sad that those same countries, empoverished by civil wars, sell their potential to greedy foreigners for peanuts, having one dictator after another. Maybe it would be clever to adopt the Swiss model, and start thinking this way: We are poor, and only hard work can save us. It worked for them, why wouldn’t it work for us?

I MUST REMIND MYSELF OF A POSTCARD FROM ZURICH I SENT TO MY VERY METICULOUS AND ORDERLY FATHER IN 1998. I WROTE, IN SILENT JOY AND QUIET EXALTATION: 'DAD, I THINK I HAVE FOUND AN IDEAL COUNTRY FOR LIVING. FOR YOU DEFINITELY. AND MAYBE EVEN FOR ME.'

THE TASTES AND LOOKS OF SWITZERLAND

THE OLDEST WORLD IS THE NEWEST WORLD The Spirit of Switzerland also lies in many old customs that the Swiss are proud of, such as Ledderhosen or Alphorns. Some commercials exploit this 'Sound of Music'/'Heidi' stereotype, but it is still brilliantly fresh and inspiring, like, 'why don’t you preserve your own strange customs'? And make them equally attractive? Not to mention that the most prominent Protestant figures, Zwingli and Calvin, were Swiss.

Swiss Protestantnism, althogh not the only religion in the country, somehow defines the whole idea of being Swiss. Be reasonable. Earn and cherish money. Respect hard work. Be modest. Be aware that you live in a poor country with not many natural resources

And finally, the tasty part. Those who have been to a Swiss party, or at the Swiss Embassy, know that Switzerland offers three extraordinary things – chocolate, cheese (often melted, like raclette or fondue), and good beer. And combined with the preserved mediaeval looks and the facades of ancient yet modern Swiss towns and cities, one must notice that nothing is really missing in the picture. Oh, maybe they are not rebellious enough? Not enough rock’n’roll? Perhaps. Yello was the most famous Swiss band ever, if I am not gravely mistaken. OK, the Swiss are not very alternative or revolutionary. They like it the way it is. No surprises policy. But, then again, I must remind myself of a picture postcard from Zurich I sent to my very meticulous and orderly (Swiss-like, obviously!) father in 1998. I wrote, in silent joy and quiet exaltation: 'Dad, I think I have found an ideal country for living. For you definitely. And maybe even for me.'

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CUSTOMS AND CULTURE

THE LIVING TRADITION, A SURVIVED PAST The Swiss have always observed and nurtured their local customs, which has Switzerland to become a country with an extremely wealthy cultural activity and living tradition

cally: In little Switzerland, four national languages are spoken in addition to numerous dialects. There is also a distinction between the culture in the mountains and the culture on the central plateau, while life in a mountain valley is different from that in the big city. So, although there are numerous regional traditions there are relatively few national customs. However, over time and with

LA SUISSE N'EXISTE PAS. OR MAYBE IT DOES? «La Suisse n'existe pas» (Switzerland does not exist) – this is the famous sentence Switzerland introduced itself with at the World Exposition in Seville in 1992. “This was because it is not uniformity, but variety in a small space that defines Switzerland. This can be explained culturally and geographi-

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IF WE TRY TO DEFINE THE “CROSSROAD COUNTRY” OF EUROPE, SEVERAL PLACES WOULD SUIT THE DESCRIPTION, BUT SWITZERLAND IS A CROSSROAD IN IT ESSENCE

the increase in tourism, there are some local customs that have achieved national fame”, as myswitzerland.com defines punctually. If we try to define the “crossroad country” of Europe, several places would suit the description. Vojvodina could be one, obviously. Bosnia was frequently called “Switzerland of Eastern Europe”, but it is clear who the central player in this game is, right? Switzerland lies at the crossroads between several major European cultures. Three of the continent's major languages, German, French and Italian, are national languages of Switzerland, along with Romansh, spoken by a small minority. Therefore, the Swiss culture is characterised by diversity, which is reflected in a wide range of customs and traditions. The 26 cantons also account for the large cultural diversity, Swissworld states proudly. Many factors contributed to the formation of the Swiss culture and its customs. It is crucial, however, to mention the Alps. This mountain range played the main role in

shaping the minds of the inhabitants in this region, including their rationality, conservatism (generally typical for both mountains and islands) and joie de vivre. All these traits collide in Switzerland and form the delightful harmonious mess we love so much. In fact, Borges once said that Switzerland was a rational union of people who were tired of fighting and dying for silly reasons. The region of the Gotthard Pass became the nucleus of the Swiss Confederacy in the early 14th century. Gradually, traditional Swiss values or “Swissness” spread to the new cantons, new members of the Confederatio Helvetica. The traditions were established, and the country was named after the canton of Schwyz. Today, Switzerland is a quiet, sober, often thrifty, leave-me-alone type of country. It is renowned for its colourful landscapes and fervent dancing, but also excellent hiking, trekking and ski trails. Nowadays, mountain areas of Switzerland have a strong skiing and mountaineering culture, and are associated with folk arts such as alphorn and yodeling. Other Swiss trademarks include Swiss chocolate, cheese, watches, the cowbell and the Swiss army knife.

MUSIC AND ART Swiss folk art is kept alive all over the country, mostly through music, dance, poetry, woodcarving and embroidery. There are also many regional and local rites demarcating particular times of the year. Yodeling, despite being typically Swiss, is not widespread and is limited to only certain mountain areas. Similarly, the accordion is referred to as Schwiizerörgeli, or "Schwyzerörgeli", implying that it is a Swiss musical instrument, rather than the German Handorgel. The violin, bass violin, clarinet and, in certain regions, the dulcimer or Trümpi (Jew's harp), are very common. For centuries, Alpine folk music was passed orally from generation to generation. The oldest known Kuhreihen (rounds) are from Appenzell and were recorded in 1545. The Alphorn, also typically Swiss, was originally a musical and signaling instrument used by herdsmen, and also yodeling choirs that have been formed since the 19th century. In general, Switzerland has an extensive amateur music scene, and in virtually every village there is at least one choir or a brass band. This is a striking feature of the Apline culture. Let’s take another look at the alphorn. The alphorn, or the alpenhorn, is a trumpet-like musical instrument made of wood. The alphorn is very popular in mountainous regions, and like yodeling or the accordion, it has become an emblem of traditional Swiss music. The accordion is sometimes linked to Serbian national music, tango, Brazilian southern sertanejo music, and Texan country music. However, based on results of extensive sci-

THE CULTURE OF PROUD ARCHERS, FERVENT DANCERS, YODLERS, CHEESELOVERS AND BEERMAKERS WHO LIKE TO ENJOY CHOCOLATE AND HIKING, THEIR SOLITUDE AND INDIVIDUALISM IN THE CENTRE OF EUROPE, IS STILL THERE AND IT IS VERY LIKEABLE

entific research, it came from the German-speaking Alpine region of Europe, which includes Switzerland. So, the name Schwiizerörgeli might not be that erroneous after all. Say it to Šumadinians. It seems that, in some ways, the Alps really are the centre of the world, as they influenced us in more ways than we would like to believe. The melodies of Swiss folk music vary between regions. The most popular themes are about love and the homeland, but patriotic and pastoral themes, as well as hunting themes, are also very common. Yodeling was initially used a means of communication between Alpine villages. It is very easily recognisable, and its central themes are love for nature and home. Although yodeling had been used back in the Stone Age, the choir singing of yodeling songs started in the 19th century. On special occasions, polyphonic natural yodels are often accompanied by talerschwingen or bell shaking (small Alpine bells).

SHOOT THE APPLE! We have Kraljević Marko, the French have Charlemagne, the English have Robin Hood, and the Russians have their Three Bogatyrs. Of course, the Swiss have their own omnipresent hero, too. As you can probably guess, it is William Tell, the famous archer who shot an apple off his son’s head. Although there is reasonable doubt whether William Tell existed or not, the legend itself had a great impact on the history and culture of Switzerland. OK, we are not even sure if Robin Hood existed, but the story is nice nevertheless. The culture of proud archers, fervent dancers, yodlers, cheese-lovers and beer-makers who like to enjoy chocolate and hiking, their solitude and individualism in the centre of Europe, is still there and it is very likeable.

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BRITS, AS USUAL We may say that Byron propelled the interest in Italy and Greece when he and his friends started writing poems about the Classical Mediterranean. But it is also true that Byron, Persey and Mary Shelley had a lot to do with the development of Swiss tourism. As they sat in their Swiss chalet, Mary invented the story of Frenkenstein, which helped create interest in Switzerland. Later, Arthur Conan Doyle wrote a story in which he killed his much beloved and hated Sherlock Holmes at the Reichenbach Waterfalls. Under pressure, Holmes miraculously resurrected, but the legend was still born â&#x20AC;&#x201C; hundreds of Brits wanted to see Reichenbach Waterfalls. After this, the tourists started coming in great numbers. Sporty Britons were keen to imitate swish Swiss skiers and, all of a sudden, Switzerland was packed with skiers from all over the world in winter and picnickers in summer. The rest is history: Switzerland became the world's leading ski destination, and summers remained equally popular with tourists flock-

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ing to the green slopes of the Alps, enjoying cheese, beer and Alphorns, of course. Some other, perhaps more accurate facts state that tourism began with British mountaineers climbing the peaks of the Bernese Alps in the early 19th century (Jungfrau 1811, Finsteraarhorn 1812). The Alpine Club in London was founded in 1857. In the 19th and 20th centuries, due to its climate, the Alps were a popular rehabilitation centre, especially from tuberculosis. One of

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SPORTY BRITONS WERE KEEN TO IMITATE SWISH SWISS SKIERS AND, ALL OF A SUDDEN, SWITZERLAND WAS PACKED WITH SKIERS FROM ALL OVER THE WORLD IN WINTER AND PICNICKERS IN SUMMER

the examples is Davos, GraubĂźnden. Because of the prominence of the Bernese Alps in British mountaineering, the Bernese Oberland became established as a popular tourist destination. Meiringen's Reichenbach Falls achieved literary fame as the site of the fictional death of Sir Arthur Conan Doyle's Sherlock Holmes (1893). The first package holidays to Switzerland were organised in the 19th century by Thomas Cook and Lunn Travel.

TOURISM

SPECTACULAR MOUNTAINS POPULARISED BY THE BRITS Tourism in Switzerland did not really exist until the 19th century. That's when the British craze for travelling and exploring tourist destinations started. At the same time, it was fuelled by the expansion of the railway and the Romanticism, which propelled interest of both common people and nobility to visit destinations abroad. Today, Swiss tourism is a gigantic industry with Switzerland being one of the most popular destinations

SWISS TOURISM IN ITS MASSES Tourists are drawn to Switzerland's Alpine climate and landscapes, in particular for skiing and mountaineering. As of 2011, tourism accounted for an estimated 2.9% of Switzerland's gross domestic product. Official tourist statistics had been hoped for since 1852, but were only achieved in 1934, and continued until 2003. Since 2004, the Federal Statistical Office

had discontinued its own calculation, but collaborates with Switzerland Tourism in the publication of yearly "Swiss Tourism Figures". In the year 2011, there was s a total number of 4,967 registered hotels and hostels, offering a total of 240,000 beds in 128,000 rooms. This capacity was saturated to 41.7% (compared to 39.7% in 2005), amounting to a total of 38.8 million lodging nights. 14% of hotels were in Grisons, 12% each in the Valais and Eastern Switzerland, 11% in Central Switzerland and 9% in the Bernese Oberland. The ratio of lodging nights in relation to resident population ("tourism intensity", a measure for the relative importance of tourism to local economy) was largest in Grisons (8.3) and Bernese Oberland (5.3), compared to a Swiss average of 1.3. 56.4% of lodging nights were by visitors from abroad (broken down by nationality: 16.5% Germany, 6.3% UK, 4.8% USA, 3.6% France, 3.0% Italy). The total financial income from tourist industry, including transportation, is estimated to CHF 35.5 billion (as of 2010) although some of this comes from fuel tax and sales of motorway vignettes. The total value of solely tourism is 14.9 billion. Tourism provides a total of 144,838 full time jobs in the entire country. The total financial income of tourist lodging is 5.19 billion CHF

and eating at the lodging provides an additional 5.19 billion. The total gross value of 14.9 billion is about 2.9% of Switzerland's 2010 nominal GDP of 550.57 billion CHF. The main airport in Switzerland is in Zurich, and the main railway line connects Geneva, Zurich and Basel. The main route across the Alps is via the Gotthard Road Tunnel and the Gotthard Rail Tunnel. The new Gotthard Base Tunnel, opening in 2016, will improve the railway services. The most visited Swiss tourist attractions the Rhine Falls, followed by the Berne Bear exhibit

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(both for free), and also Zoo Basel, with over 1.8 million paid entries. Most overnight stays in 2014 in Switzerland were made by tourists from the following countries of residence: Germany over 4 million, surpassing tourists from the UK. The British are the second with some 1.66 million overnight stays. The USA, China, Italy and France have over million overnight stays each, and the rest are the Gulf states, and tourists from the Netherlands, Russia and the Nordic countries are increaasing in numbers rapidly.

SINCE SWITZERLAND IS A SMALL COUNTRY, ITS ATTRACTIONS ARE CLOSE TO EACH OTHER AND CAN BE REACHED QUITE EASILY. THE SWISS TRANSPORT SYSTEM IS EXTREMELY EFFICIENT â&#x20AC;&#x201C; TRAINS, FERRIES AND CABLE CARS EASILY TAKE YOU TO THE TOP SITES IN SWITZERLAND

AN EXCITING DESTINATION ON YOUR DOORSTEP If you are planning on travelling around Switzerland, it's not hard to visit many of Switzerland's top sites during your stay. Since Switzerland is a small country, its attractions are close to each other and can be reached quite easily. The Swiss transport system is extremely efficient â&#x20AC;&#x201C; trains,

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ferries and cable cars easily take you to the top sites in Switzerland. Mountain resorts, lakes, forests, castles, museums, and ancient and modern architecture make this

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federal Swiss republic an excellent tourist destination. With its low crime rate, Switzerland is also very safe for tourists. There would be no Switzerland without the Alps, partly because the remote mountain position prevented the enemies from advancing easily, partly because... well, the Alps have it all - from skiing and climbing to picnic sites and hilly ancient little towns. And the most famous peak in the Alps, the Matterhorn in Zermatt, stands 4,478 meters high. Mountaineers flock to this town to conquer this technically difficult peak, and Zermatt also offers skiing and beautiful views. There are also other activities that do not involve skiing, such as good restaurants and lots of energetic nightlife for visitors to enjoy. Don't forget the most exclusive St Moritz, and the perfectly orderly cities of Zurich, Bern or Geneva, many of them cradles of the Swiss branch of Protestantism which shaped much of this country, but of course, not all of it. Switzerland is a place to visit. And relax!

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