By Dave Graham and Dmitry Zhdannikov
ZURICH (Reuters) -A group of Swiss companies including energy trader Mercuria and private equity firm Partners Group has pledged over $6 billion in U.S. energy investments as part of efforts to lower U.S. tariffs on Switzerland, two people close to the matter said.
U.S. President Donald Trump in August stunned Switzerland by imposing 39% import tariffs on Swiss firms, justifying them by the size of the U.S. trade deficit with the Alpine country, which last year eliminated its industrial tariffs.
Since the tariff shock, Switzerland’s government has been working with the Swiss private sector to assemble a package of investment pledges and business measures aimed at bringing down the U.S. trade deficit, and with it, Trump’s tariffs.
SWISS TOOK PROPOSALS TO WASHINGTON LAST MONTH
Mercuria and Partners Group are among companies working to help the government, which, among other things, has floated increasing energy purchases to lower the U.S. trade deficit.
Senior figures from both firms in August accompanied Swiss officials for tariff talks in Washington.
Partners Group and Mercuria declined to comment.
Under proposals drafted in early September, Partners Group was pledging to double the capacity of a U.S.-Mexico natural gas network run by pipeline operator ESENTIA, part of its infrastructure in North America, one of the sources said.
Mercuria’s planned U.S. energy investments include measures to boost new power generation, carbon capture and storage, as well as U.S. oil recovery, the source added, noting that the plans have been subject to revisions.
When sketched out in early September, proposed Swiss energy investments that included both Mercuria and Partners Group were worth more than $6 billion, the person said.
A second source said this week that the Swiss energy package comprising Mercuria, Partners Group and others encompassed investments worth around $7 billion in total.
These were part of a broader package drawn up for Swiss Economy Minister Guy Parmelin’s September 5 visit to Washington to meet Trump officials, according to the sources.
SWISS GOVERNMENT LOOKING FOR RAPID AGREEMENT
Switzerland has yet to secure lower tariffs and is still talking to U.S. officials in pursuit of that goal.
The Swiss Economy Ministry declined to answer questions about ongoing discussions, but said that the governing Federal Council remained strongly committed to improving the tariff situation with the United States.
“It has optimised its offer to the U.S. in order to reach a rapid agreement. Diplomatic and political exchanges will continue in order to achieve a quick reduction in the additional tariffs,” the ministry said in a statement.
Among other proposals set out since August by the Swiss have been the construction of gold refining capacity in the U.S. in an attempt to reduce the amount of gold the U.S. imports from Switzerland, Reuters reported last month.
The Swiss have also proposed increasing procurement of U.S. defence materiel, according to people familiar with the matter.
(Reporting by Dave Graham and Dmitry Zhdannikov. Additional reporting by Oliver Hirt. Editing by Mark Potter)
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