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Everything but the polymer frame is made in the US, and they're assembled here. That probably cuts a good deal of cost.

The slide and barrel are treated stainless steel rather than the carbon steel of the P99's. Based only on my pocketknife experience, carbon steel is pricier, so that may add to the P99's cost.

Honestly, I've always figured it was because the P99 was a "true" import, while the SW99 was treated as a US gun. I doubt there's a difference in quality.
 
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