As Swiss legislators gear up to discuss tightening restrictions around products, like watches, that bear the coveted "Swiss made" label, the Federation of the Swiss Watch Industry has left the leading business lobby economiesuisse for not backing tougher rules.
"Economiesuisse is blocking tighter rules for the 'Swiss made' label," the watch federation said in a recent statement.
As we've reported previously, current rules say 50 percent of a Swiss watch movement has to be made in Switzerland. The watch federation has criticized the existing rule as too weak, saying it allows largely foreign-made watches to be sold as "Swiss made".
Economiesuisse does not want this rule to be imposed on other non-watch sectors. But they are worried that this could drive watch production overseas.
The draft law is set to be reviewed again by Switzerland's lower house on March 11. The lower house backs the 60 percent rule but the upper house says the current 50 percent threshold is fine as is.
We'll stay on this developing story.