WORLD TRADE G/SCM/N/16/CHE
G/SCM/N/25/CHE
ORGANIZATION 7October 1997
(97-4254)
Original: French Committee onSubsidies andCountervailing Measures
SUBSIDIES
Updating Notifications Pursuant toArticle XVI:1 oftheGATT 1994 andArticle 25
oftheAgreement onSubsidies andCountervailing Measures
SWITZERLAND
Thefollowing communication, dated 16September 1997, hasbeenreceived fromthePermanent
Mission ofSwitzerland.
______________
Table ofContents
Page
PART ONE: INDUSTRY 3
I. ASSISTANCE FOR AREAS WHOSE ECONOMY ISTHREATENED 3
II. ASSISTANCE FOR ECONOMIC ZONES WHICH ARE BEING
REORGANIZED 5
III. ASSISTANCE FOR MOUNTAIN AREAS 6
PART TWO: AGRICULTURE 7
I. MILK AND DAIRY PRODUCTS 7
I(a) Dairy account oftheConfederation 7
I(b) Butter 8
I(c) Cheese 11
I(d) Preserved milkproducts 13
I(e) Dairy-policy measures taken 15
II. BREEDING AND DAIRY CATTLE 16
1. Sales promotion within thecountry 16
2. Export subsidies 16G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page2
Page
III. HORSES 18
1. Breeding bonuses 18
2. Export subsidies 18
IV. WOOL 20
Purchase ofdomestic wool 20
V. EGGS 21
Price equalization fundforeggsandeggproducts 21
VI. BOVINE MEAT 22
Temporary measures: valorization ofbovine meat 22
VII. FEED GRAINS 23
Bonuses topromote thegrowing offeedgrains, apart
from maize, andseedlegumes 23
VIII. OIL-SEEDS 25
Price support 25
IX. SUGAR BEET 27
Price support 27
X. POTATOES 29
Valorization ofpotato production 29
XI. FRUIT 32
Valorization ofdomestic production 32
XII. WINE, GRAPE JUICE, DESSERT GRAPES 34
1. Quality maintenance bygrape-harvest verification 34
2. Non-alcoholic useofgrapes (dessert grapes) 34
XIII. PROCESSED AGRICULTURAL PRODUCTS 36
Export contributions 37G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page3
PART ONE: INDUSTRY
I. ASSISTANCE FOR AREAS WHOSE ECONOMY ISTHREATENED
1. Titleoftheprogramme
Assistance forareas whose economy isthreatened.
2. Period covered
1January 1995 to30June1996.
3. General goaland/or purpose ofthesubsidy
Inorder toreduce theuniformity ofcertain regional economic structures, soastoavoid, if
possible, dependence oftheemployment market onasingle industry (forexample, watch andclock
making),theConfederationgivesadditionalfinancialassistancetoencouragethecarryingoutofeconomic
projects intheprivate sector designed tocreate andmaintain diversification ofemployment inareas
whose economy isthreatened.
4. Background andauthority
Thisfinancial assistance wasbased ontheFederal Order of17June1994concerning financial
assistance toareas whose economy isthreatened which wasinforce until30June1996.
5. Form ofthesubsidy
Financial assistance isallocated intheform of:
(i) Sureties toguarantee investment loans;
(ii) contributions toservicing theinterest oninvestment loans;
(iii) taxreductions.
6. How thesubsidy isgranted andtowhom
Financial assistance isgranted toindustrial firms andservice firms closely linked tothe
production process. Thisfederal assistance isdesigned tobenefit areas whose economy isthreatened:
(a) Areas where unemployment exceeds thenational average byatleast10percent;
(b) areas where abigdropinthenumber ofjobshasoccurred orisexpected orwhere
there issevere unemployment orthethreat ofimminent unemployment.
Federal aidmaybegranted toanySwiss orforeign small-scale orindustrial businesses for
projects which willmake itpossible, inareas where theeconomy isthreatened, to:G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page4
(a) Continue todevelop theirproducts ortoadopt newmanufacturing processes andnew
distribution programmes inorder toadapt tothetrendofthemarket andthepossibilities
itoffers;
(b) startupthemanufacture andmarketing ofnewproducts.
FortheConfederation tobeabletoguarantee uptoonethird (onehalfinexceptional
circumstances) ofthetotalproject cost,thefollowing conditions must bemet:
- Thecapital invested bytheundertaking itself mustcover areasonable proportion of
thetotalproject cost;
- abank must advance, ontheusual market terms, thecredits needed tofinance the
project andgiveaninterest ratereduction ofatleastonequarter oftheusual commercial
rateontheguaranteed partofthecredits.
Theparticipation oftheConfederation inservicing theguaranteed partofthecredits, andthe
taxreductions provided forintheabove-mentioned Federal Order, aredependent upon equivalent
measures bythecantons.
7. Unitamount ofthesubsidy or,where thisisnotpossible, totalamount orbudgetized annual
amount ofthesubsidy
In1995 theConfederation 'stotalfinancial assistance broke down asfollows:
Total amount ofcredits guaranteed: SwF28.0million
Effective provision tocover losses: SwF3.9million
Contribution tointerest servicing: SwF2.0million
Subsidies toinformation services: SwF0.5million
Intheyears 1994, 1995 and1996 thefollowing combined assistance wasgranted:
SwF141million inguarantees andSwF7million incontributions (cost ofallprojects,
SwF1,194 million). Thisassistance generated 3,680 jobs.
8. Duration ofthesubsidy and/or anyother deadline connected withthesubsidy
Theassistance programme forareaswiththreatened economies wasinforceuntil30June1996.
Themaximum duration offinancial assistance ineachcasewastenyears forguarantees andsixyears
forinterest contributions.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Theeffect ofthesubsidy ontrade isinsignificant, ifnotnon-existent.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page5
II. ASSISTANCE FOR ECONOMIC ZONES WHICH ARE BEING REORGANIZED
1. Titleoftheprogramme
Assistance foreconomic zones which arebeing reorganized.
2. Period covered
1Julyto31December 1996.
3. General goaland/or purpose ofthesubsidy
Promotion ofprojects coming under theprivate economy aimed atcreating andredeploying
jobsineconomic zones which arebeing reorganized.
4. Background andauthority
TheFederal Order oneconomic zones which arebeing reorganized of6October 1995, inforce
since 1July1996, andtheOrders of10June1996 and17June1996.
5. Form ofthesubsidy
Financial assistance isallocated intheform of:
(i) Sureties toguarantee investment credits;
(ii) contributions toservicing theinterest oninvestment credits;
(iii) taxreductions.
6. How thesubsidy isgranted andtowhom
Financial assistance isgranted toindustrial firms andservice firms closely linked tothe
production process. Theamount ofthecredit granted amounts toamaximum ofonethirdofthetotal
costoftheinvestment project.
Under theOrder of10June1996zones considered tobeundergoing reorganization arethose
where:
(a) Theaverage unemployment overthelastthreeyears hasexceeded thenational average
byatleast10percent;
(b) thetrend inthenumber ofjobshasbeenmarkedly lessfavourable thanthenational
average; or
(c) thereareclearindications thatatleastoneoftheforegoing situations willoccur shortly,
inparticular thattheprospects forthemostimportant sectors oftheeconomy andfor
thelargest firms areunfavourable.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page6
Thesubsidies havebeenreduced byintroducing aceiling ofSwF5million forthecredit for
which interest contributions maybepaid. Themaximum subsidy which canbegranted ineachcase
(Confederation plusCanton) comes toSwF625,000 (5percentinterest rate).
7. Unitamount ofthesubsidy or,where thisisnotpossible, totalamount orbudgetized annual
amount ofthesubsidy
ThesumofSwF7.6million inguarantees hasbeengranted under thenewlegislation since
theFederal Order of6October 1995 came intoforce.
8. Duration ofthesubsidy and/or anyother deadline connected withthesubsidy
Theassistance programme foreconomic zones which arebeing reorganized remains inforce
forfiveyears. Themaximum duration offinancial assistance ineachcasehasbeenreduced toeight
yearsforguarantees(previouslytenyears)andfiveyearsforinterestcontributions(previouslysixyears).
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Theeffect ofthesubsidy ontrade isnegligible, ifnotnon-existent.
III. ASSISTANCE TOMOUNTAIN AREAS
1. Titleoftheprogramme
Surety andcontributions tointerest servicing inmountain areas.
2. Period covered
1995 and1996.
3. General goaland/or purpose ofthesubsidy
Theprogramme isaimed atproviding longandmedium term capital loans tosmall- and
medium-sized establishments situated inmountain areas.
4. Background andauthority
Thisfinancial assistance isbased ontheFederal Lawencouraging credit guarantees andon
loanservice contributions inmountain areas (RS901.2) of25June1976. Thecriteria determining
theaidrequirement inamountain areaaretobefound intheFederal Lawoninvestment assistance
inmountain areas (RS901.1) of28June1974 andintheOrder (RS901.11) of9June1995.
Anareaisregarded asneeding assistance when disadvantaged municipalities account forover
50percentofitsareaandatleast20percentofitspopulation. Disadvantaged municipalities are
deemed tobethose forwhich theapplication ofatleasttwoofthecriteria given below produces results
falling below athreshold value fixed bytheFederal Department ofPublic Economy; these criteria
are:
(i) Long-term demographic development (denoted bytheaverage ofthedevelopment factor
andofthepopulation age-structure factor, asthese factors aredefined bythelaw);G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page7
(ii) economic capacity (afunction ofthefactor denoting income, asdefined bythelaw);
(iii) existing collective facilities (measured bythefactor indicating thelocality 'spower of
attraction asdefined bythelaw). These indicators aredefined inArticles 5to8of
theOrder onInvestment Assistance inMountain Areas (RS901.11) of9June1975.
5. Form ofthesubsidy
TheConfederation encourages thegrant ofsureties bygiving subsidies totheSwiss Guarantee
Cooperative fortheartsandcrafts andbymaking interest servicing contributions.
6. How thesubsidy isgranted andtowhom
Theprogramme applies tosureties andinterest servicing contributions forsmall- andmedium-
sized enterprises which areprofitable orlikely todevelop, whether existing ortobecreated, whose
activity conforms toanestablished development programme within themeaning oftheFederal Law
oninvestment assistance inmountain areas (RS901.1) of28June1974. Payments aremade onlyto
establishments which arenotalready supported bytheConfederation insome other way.
7. Unitamount ofthesubsidy or,where thisisnotpossible, totalamount orbudgetized annual
amount ofthesubsidy
Thesubsidy doesnotcover aspecific product orsector. Thetotalamount ofthese subsidies
isinsignificant, i.e.SwF5.7and5.8million in1995 and1996 respectively.
8. Duration ofthesubsidy and/or anyother deadline connected withthesubsidy
Theassistance programme formountain areas remains inforce indefinitely.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Theeffect ofthesubsidy ontrade isinsignificant, ifnotnon-existent.
PART TWO: AGRICULTURE
I. MILK AND DAIRY PRODUCTS
I(a) Dairy account oftheConfederation
Thedairyeconomy represents themostimportant branch ofSwiss agriculture andisresponsible
foralittlemore thanonethirdofthegross value ofagricultural production. Anextract below from
theConfederation 'sdairy account gives ageneral picture ofthefinancial measures taken inthissector.
Thedetails ofthesemeasures (with theexception ofpoint3,which doesnotconstitute aspecific subsidy
under Article 2oftheASMC) willbestudied inthefollowing chapters dealing withthevarious groups
ofdairy products.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page8
(Millions ofSwF)
Accounting period 1994 1995 1996
Expenditure
1.Disposal ofbutter 377.7 427.7 355.1
2.Disposal ofcheese 473.0 511.6 490.6
3.Contribution tocowkeepers
whose milkisnotmarketed105.0 105.5 100.0
4.Special price reduction for
softandsemi-hard cheese60.6 59.9 55.5
5.Other measures (including
valorization ofpreserved
milkproducts54.7 43.9 40.5
Total expenditure 1,162.6 1,240.7 1,187.6
Coverage
1.General resources of
theConfederation829.3 955.2 905.1
2.Special-purpose revenue 261.0 210.2 203.8
3.Share oflosses payable
byproducers72.3 75.3 78.7
Total receipts 1,162.6 1,240.7 1,187.6
I(b) Butter
1. Titleofthesubsidy programme
Point 1ofthedairy account above: disposal ofbutter
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
TheSwissbuttermarketisgovernedbytheSwissCentralOfficeforButterSupplies(BUTYRA),
apublic cooperative society which holds themonopoly ofbutter imports. Subsidies, which maybe
granted concurrently, promote thedisposal ofbutter onthedomestic market only.
- BUTYRA paysasubsidy tothebutter centres toenable themtoselltablebutter without
lossatprices fixed bytheFederal Council;G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page9
- theConfederation allocates toBUTYRA thesums necessary toenable ittosellfresh
orresolidified cooking butter atareduced price; theamount oftheprice reduction,
andconsequently ofthelossentailed, varies according tothedestination andquality
oftheproduct;
- BUTYRA shares inthecostofadvertising topromote butter consumption;
- inorder toencourage theuseoffresh skimmed milkforanimal feed, BUTYRA pays
asubsidy tousers ofthisproduct.
Inorder tolimitasfaraspossible thelosses incurred inthevalorization ofmilk, anorder or
priority islaiddown. Thelargest possible proportion ofdomestic production isusedtomeetthedemand
forfresh milkandfresh dairy products, which canbesoldwithout loss. Fortherest,manufacture
ofcheese andpreserved milkproducts takes priority overbutter, which involves theheaviest losses
intheutilization ofmilk.
4. Background andauthority
- Agriculture Actof3October 1951;
- Order oftheFederal Assembly of29September 1953concerning milk, dairy products
andedible fats;
- Federal Actof21December 1960 concerning goods atprotected prices;
- Dairy Economy Order of16December 1988.
5. Form ofthesubsidy
SubsidiesconsistofGovernmentfinancialcontributionsandofprice-supportmeasures.BUTYRA
delivers imported butter atprices matching thewholesale priceofdomestic butter, purchases ataprice
corresponding tothemilkbaseprice domestic butter forwhich there isnoready market andarranges
foritsdisposal withthehelpofthecontributions from theConfederation. Thedifferent forms of
butter-disposal subsidies are:
(Millions ofSwF)
Accounting period 1994 1995 1996
1.Reduction intheprice of
tablebutter (choice, full-cream and
whey-based butter)243.4 265.6 202.3
2.Reduction intheprice of
cooking butter andresolidified
butter, andstorage, transport
andinterest costs79.8 83.3 76.9
3.Advertising costs 10.9 11.1 10.4
4.Subsidy forfresh skimmed milk
intended foranimal feedand
special uses38.1 51.9 46.1
5.Miscellaneous contributions 5.5 15.8 19.4
Total expenditure ondisposal ofbutter 377.7 427.7 355.1
Allthese contributions arepaiddirectly toBUTYRA.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page10
Since 1July1995 acontribution perkg.ofmilkfathasbeenpaidwhen milkfatintheform
ofmilk, yoghurt orcream isusedtomake edible ices.
6. How thesubsidy isgranted andtowhom
Theprice-reduction contributions mentioned inpoints 1and2aregranted byBUTYRA to
manufacturers forthebenefit ofconsumers (amount perunit).
Thebeneficiaries ofthemeasures under thefourth iteminthetableinpoint5above arebreeders
whouseskimmed milkormanufacturers ofspecial products suchasacidcasein, caseinates ormilk
substitutes.
7. Amount ofthesubsidy perunit
Butter subsidies varied asfollows according toquality:
(SwFperkg.)
Choice butter Cooking butter Resolidified
butter
Asof1November 1994 7.03 3.86-10.11 6.53-11.53
Asof1July1995 6.83 3.68-9.87 6.33-11.30
Asof1March 1996 4.66 1.47-7.66 4.06-9.03
8. Duration ofthesubsidy
Subsidies areentered inthedairy account annually. Thedairy-account period lastsfrom
1November to31October ofthefollowing year.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Thetables below show thetrend ofbutter prices andconsumption:
Retail price (inSwFperkg.)
Asof
1March 1991Asof
1November 1993Asof
1April 1995
Choice butter (200g.packages) 17.00 15.75 15.50
Fresh cooking butter (250g.packages) 14.20 13.00 12.40
Resolidified butter (450g.tins) 13.22 13.22 12.67G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page11
Production, trade andconsumption (intonnes)
Year Production Ofwhich choice butter Imports Consumption
1994 40,050 31,253 3,017 44,499
1995 41,250 33,401 2,690 44,451
1996 39,290 33,00013,426 44,823
Switzerland exports virtually nobutter (1994: 1t;1995: 7t;1996: 1t).
I(c) Cheese
1. Titleofthesubsidy programme
Subsidies cover points 2and4ofthedairy account above, i.e:
1. Disposal ofcheese
2. special price reduction forsoftorsemi-hard cheeses
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
ThefactthattheConfederation covers partofanydeficits inthedairy account (theremainder
being borne bythemilkproducers) offsets thedifference between, ontheonehand, earnings from
cheese salesondomestic andforeign2markets and,ontheother, theproduction costsofthesamecheese
established according tothebaseprice ofmilk.
4. Background andauthority
- Agriculture Actof3October 1951;
- Federal Assembly Order of29September 1953 concerning milk, dairy products and
edible fats;
- Dairy Economy Order of16December 1988;
- Federal Actof27June1969 oncheese marketing.
1Estimates.
2Allowing forfluctuations instocks.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page12
5. Form ofthesubsidy
Thecheese-disposal subsidy consists ofcoverage bytheConfederation ofthedeficit resulting
from theoperations oftheSwiss Cheese Union (USF), which isresponsible fordisposing ofcertain
cheeses. Asregards theother kinds ofcheese notmanaged bytheUSF, theConfederation covers
certain expenses suchasprice reductions, export subsidies, general expenses andadvertising costs.
Under thelegislative measures setoutabove, theorganizations ofmilkproducers andcheese
manufacturers andexporters setuptheSwiss Cheese Union (USF). Thisbody isresponsible for
purchasing thedomestic production ofhardcheeses (Emmental, Gruyère andSbrinz, representing about
60percentoftotaloutput) atfixedprices forresale through private firms atthebestprices obtainable.
However, inthese operations, USF incurs losses which arecharged tothedairy account ofthe
Confederation.
Thedifferent forms ofsubsidy forcheese disposal are:
Accounting period 1994 1995 1996
1.Coverage ofmarket organizations 'losses 462.5 499.9 479.3
2.Price-reduction contribution toproducers of
softandsemi-hard cheese 60.6 59.9 55.5
3Contribution tothecosts ofholdings
producing forahalf-year 10.5 11.7 11.2
4.Contribution toimproving thestructures of
small-scale dairies 8.3 2.2 -
6.How thesubsidy isgranted andtowhom
Subsidies aregranted tothefollowing beneficiaries asdetailed below:
(a) Cheese manufacturers:
- contribution totheprice reduction perkg.ofcheese;
- contribution totheholding perkg.ofmilk;
(b) cheese dealers:
- contribution totheprice reduction perkg.ofcheese (export subsidies);
(c) market organizations:
- contribution totheprice reduction perkg.ofcheese (export subsidies);
- coverage ofdeficits.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page13
7.Amount ofthesubsidy perunit
Thelosses duetocheese disposal varyfrom onemarket toanother.
8.Duration ofthesubsidy
Theaccounting yearvalid forthedairy account. Theperiod ofthedairy account lastsfrom 1
November to31October ofthefollowing year.
9.Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Cheese production andconsumption 1994 1995 1996
Production (intonnes)
-Domestic production 137,480 131,670 133,190
-Additional rawmaterial output
intended forprocessed cheese manufacture4,058 4,670 4,908
-Imports 30,033 30,104 30,566
Total quantity 171,571 166,444 168,664
-Domestic quantity exported 59,652 64,349 57,206
-Variations instocks 3,922 (5,778) 642
Consumption (intonnes)
-Domestic quantity 77,964 77,769 80,250
-Imports 30,033 30,104 30,566
Total domestic consumption 107,997 107,873 110,816
Percentage share ofdomestic quantity 72.2 72.1 72.4
Percentage share ofimports 27.8 27.9 27.6
Consumption (inkg.perheadperyear) 15.2 15.1 15.4
-Share ofdomestic quantity 10.9 10.9 11.2
-Share ofimports 4.3 4.2 4.3
I(d) Preserved milkproducts
1. Titleofthesubsidy programme
Export subsidy forpreserved milkproducts.
2. Period covered
1995-1996.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page14
3. General goaland/or purpose ofthesubsidy
Thesubsidy isaimed atsafeguarding traditional exports ofpreserved milkproducts. Itispaid
onthebasis ofthequantity ofmilkusedtomanufacture those products.
4. Background andauthority
- Thelegalbases arethesame asforbutter.
5. Form ofthesubsidy
Payment toexporters ofpreserved milkproducts.
6. How thesubsidy isgranted andtowhom
Payment toexporters ofpreserved milkproducts onthebasis ofthequantity ofwhole milk
usedtomanufacture those products.
7. Amount ofthesubsidy perunit
Theexport contributions perkg.ofmilkusedtomanufacture these products areasfollows:
(incentimes perkg.) Asof1February 1988 Asof1March 1996
- sterilized milk 54 50
- cream 65 65
- preserved milk
products 63 60
- yoghurt 65 60
8. Duration ofthesubsidy
Theaccounting yearvalid forthedairy account. Theperiod ofthedairy account lastsfrom
1November to31October ofthefollowing year.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Production, Trade andConsumption3
(intonnes offresh milkused)
Year Production Imports Exports
commercialAssistance
schemesConsumption
1994 147,000 37,200 49,200 11,800 123,200
1995 180,000 41,400 65,800 5,100 150,500
1996 176,000 n.a. n.a. n.a. n.a.
3Allowing forfluctuations instocks.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page15
I(e) Dairy-policy measures taken
1. Titleofthesubsidy programme
Milk-price support.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Milkplays afundamental roleinthecountry 'sagricultural policy. Dairy production accounts
forabout athirdofthefinaloutput ofagriculture. Theaimofproducer price support istomaintain
asuitable milkproduction levelinSwitzerland whilst ensuring aregular income forproducers.
4. Background andauthority
- Agriculture Actof3October 1951;
- Order oftheFederal Assembly of29September 1953 onmilk, dairy products and
edible fats;
- Federal Actof21December 1960 ongoods atprotected prices;
- Order of16December 1988 onthedairy economy.
5. Form ofthesubsidy
Support forthebasemilkprice.
6. How thesubsidy isgranted andtowhom
Theprice tomilkproducers isguaranteed. However, guaranteed payment ofthebaseprice
formilkislimited byaquota system. Under thissystem, which hasbeenmodified several times,
anindividual quota isallotted toevery milkproducer. Within thisquota, thebaseprice ispaid, less
thenormal deduction amounting to2centimes perkg.until1November 1989and4centimes perkg.
since thatdate. Theproducer paysanindividual charge ofnotmore than85percentofthebaseprice
onanysurplus. Since 1November 1989 anadditional charge ofupto5centimes perkg.hasbeen
levied onproducers formilkdeliveries ofbetween 80,000 kg.and200,000 kg.Thischarge canreach
amaximum of10centimes perkg.fordeliveries over200,000 kg.
7. Amount ofthesubsidy perunit
Thebaseprice tomilkproducers hasbeenfixed bytheGovernment asfollows:
Asof1September 1993 97centimes perkg.
Asof1March 1996 87centimes perkg.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page16
8. Duration ofthesubsidy
Themilkprice isfixed periodically bytheFederal Council.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Milk deliveries:
Period Inthousands oftonnes
1993/94 3,072
1994/95 3,008
1995/96 3,008
Thefigures show thatthemilk-production quota system hasstabilized deliveries.
II. BREEDING AND DAIRY CATTLE
1. Titleofthesubsidy programme
1. Promotion ofsaleswithin thecountry.
2. Export subsidies.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Thevarious measures taken inthissector areintended primarily toimprove thefarming situation
inmountain areas, where animal husbandry isthemain, ifnottheonly, source oflivelihood. Assistance
canthusbegiven tosmall holdings inmountain areas, which areplaced atadisadvantage bothby
theirgeographical situation andbytheclimate.
Thespecific purpose ofthesemeasures istoensure thatgood-quality breeding anddairy cattle
cangenerally besoldatprices which cover production costs.
4. Background andauthority
- Agriculture Actof3October 1951;
- Federal Actof15June1962 onthesaleofcattle.
5. Form ofthesubsidy
Contributions (grants).G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page17
6. How thesubsidy isgranted andtowhom
1. Promotion ofsaleswithin thecountry
Inorder toavoid difficulties inthedisposal ofbreeding anddairy cattle frommountain areas,
theConfederation grants subsidies toCantons andauthorized bodies which purchase animals from
stockbreeders inthose areasatmarkets, shows orfairsatprices which arehigher thantheselling prices.
Thesubsidies areintheform ofthefinancial contributions shown below:
(a) Purchases torelieve market pressure
When farmers arenolonger abletodispose oftheirlivestock, salesareorganized toenable
animals tobebought fortemporary withdrawal from themarket. Assoonasdemand revives, these
heifers orcows arethensoldasdairy animals. Ifthere arenobuyers, theanimals areslaughtered,
which gives risetocosts which areborne bytheConfederation (uptoamaximum fixed bytheAct).
(b) Culling subsidies
Thismeasure wasabolished on31December 1994(certain residual payments werestillbeing
made in1995).
2. Export subsidies
Subsidies aregranted inorder tobring theprices ofexported livestock intolinewiththose
charged intraditional export markets. These contributions consist ofafixedbaseamount andavariable
amount depending onthequality oftheanimal; theyarepaiduptoafixed maximum. The
Confederation alsopaysthecostoftransport totheSwiss frontier.
7. Amount ofthesubsidy perunit
Total (inthousands ofSwF)
1995 1996
Promotion ofsaleswithin thecountry:
-Subsidies torelieve market pressure 486 4,500
-Subsidies forculling 3,644 0
Export subsidies 30,800 17,300
Total 34,930 21,800
Perunit(asanaverage, SwFperlivestock unit)
1995 1996
Promotion ofsaleswithin thecountry:
-Subsidies torelieve market pressure 648 658
-Subsidies forculling 143 0
Export subsidies 2,026 1,600G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page18
8.Duration ofthesubsidy
Subsidies torelieve market pressure havebeenapplied since1958. Culling subsidies wereabolished
on31December 1995. Export subsidies havebeenapplied since 1954.
Expenditure forthepromotion oflivestock salesisentered annually intheConfederation budget.
Export subsidies areallocated innotmore thantwopayments ayear. Payments forpurchases torelieve
market pressure aregenerally made inoneannual instalment.
9.Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Purchases intended torelieve market pressure arelimited intimeandgeographically. Their purpose
istoprevent acollapse oflivestock prices inmountain areas andtheythushelptostabilize theincome
offarmers inthose disadvantaged areas.
Theexport bonuses havemade itpossible tomaintain traditional exports ofcattle, mainly inthe
interests ofbreeding inmountain areas.
Production andexports ofbreeding anddairy cattle
(Head)
Year Stock calves uptooneyear Exports ofheifers,cows and
bulls
1995 248,800 15,202
1996 250,000410,554
Switzerland imports practically nodairy cattle. Imports ofbreeding cattle (heifers, cows
andbulls) came to809headin1995 and821headin1996.
III. HORSES
1. Titleofthesubsidy programme
1. Breeding bonuses.
2. Export subsidies.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
TheFederal Council takesmeasures designed tomaintain domestic horse-breeding fortheneeds
ofagriculture andthearmy. These measures apply tohorses oftheFranches-Montagnes andHafling
breeds, half-bred horses andmules.
4Estimate .G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page19
4. Background andauthority
- Agriculture Actof3October 1951.
5. Form ofthesubsidy
1. Breeding bonuses
Annual orone-time bonuses arepaidtoowners orgroupings ofhorse-breeders, inparticular
forthebreeding andmaintenance ofgood-quality stallions, fillies andgeldings andforfoaling.
2. Export subsidies
AFederal financial export aidispaidtohorse-breeders forexports ofhorses ofthebreeds
encouraged bytheConfederation. Total export subsidies in1995and1996amounted toSwF164,500
and101,000 respectively.
6. How thesubsidy isgranted andtowhom
Thesubsidy isgranted tobreeders whoexport.
7. Amount ofthesubsidy perunit
Year Total
(inthousands ofSwF)Foaling bonus
(inSwF)Annual bonus perfoalaged
1.5years to3.5years
1995 3,103 60-200 400-700
1996 3,713 60-200 400-700
8. Duration ofthesubsidy
Thesubsidy hasbeeninforce since 1960.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Between 1951and1990thenumber ofhorses declined from131,000 to45,000. Themeasures
introduced should allow alimited number ofhorses tobemaintained inagriculture andshould encourage
horse-breeding forequestrian sports.
Numbers andtrade5
(Head) year Horse numbers Imports Exports
1995
199647,196
49,0002,913
2,6971,369
1,299
Most exports arenotsubsidised (subsidies cover about 100headperyear).
5Enumeration iscarried outinApril ofeach year. Horses intended forslaughter arenotincluded.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page20
IV. WOOL
1. Titleofthesubsidy programme
Purchase ofdomestic wool.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
There areatpresent some 440,000 headofsheep, thegreatmajority ofwhich areinmountain
areas. Thesubsidy enables theSwiss wool industry topurchase domestic wool, while atthesame
timeitguarantees toproducers acontribution totheirproduction costs. Itsmain purpose istoraise
theincome levelofthemountain population.
4. Background andauthority
- Federal Actof15June1962 onthesaleofcattle.
5. Form ofthesubsidy
TheDomesticWoolBoard(CLI),asubsidiaryoftheSwissSheepFarmers'Federation,purchases
domestic woolfromtheproducers. Thepricereceived bytheproducer comprises aFederal contribution
fixed bytheDepartment ofPublic Economy andanamount thatvaries withtheprices obtained by
theBoard when reselling inthemarket. TheConfederation reimburses CLIforanylosses resulting
from itsoperations uptoamaximum amount ofSwF200,000 ayear.
TheConfederation allocates anannual contribution ofSwF1.8million.
Thesubsidy isintheform ofprice support, based onthedifference between theprice fixed
bytheFederal Council andthemarket price, andofreimbursement ofthelosses incurred bytheCLI
inpurchasing thewool. Thisreimbursement isintended tocover theprice difference mentioned and
thevariable amount granted bytheCLI.
6. How thesubsidy isgranted andtowhom
Thegreater partofthesubsidy isgranted totheproducer through theprice paidbytheCLI.
Therestgoestocover theCLIdeficit.
7. Amount ofthesubsidy perunit
Year Total (thousands ofSwF) Perunit(SwFpertonne)
1995 1,620 2,617
1996 1,588 2,450G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page21
8. Duration ofthesubsidy
Thesubsidy wasintroduced in1962. Itisprovided intwoinstalments peryear.
9. Statistical dataenabling theeffects ofthesubsidy ontrade6tobeassessed
(intonnes)
Year Production Imports Exports
1995 620 7,073 761
1996 648 6,231 854
V. EGGS
1. Titleofthesubsidy programme
Price equalization fundforeggsandeggproducts.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Thepurpose ofthesubsidy istopromote thedisposal ofdomestic eggs.
4. Background andauthority
- Agriculture Actof3October 1951;
- Federal Actof21December 1960concerning goods atprotected prices andequalization
fundforeggsandeggproducts.
5. Form ofthesubsidy
Contributions (grants).
6. How thesubsidy isgranted andtowhom
Theprice equalisation fundforeggsandeggproducts isfinanced solely from ashare ofthe
special-purpose customs duties levied onimports ofeggsandeggproducts. Itcovers theexpenses
ofthebodies responsible forthecollection, transport anddistribution ofdomestic eggsintended for
importers required totakethem (imports under thetariff quota alone). Italsocontributes tothecost
ofadvertising topromote eggconsumption andcanmake grants forothermeasures designed tofacilitate
thedisposal ofdomestic eggs.
6Wool, etc.falling under Headings Nos. 5101.1100/1900, 5101.2100.2900, 5101.3000, 5105.1000/2900.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page22
7. Amount ofthesubsidy
Year Total amount (millions ofSwF)
1994 14.2
1995 14.6
1996 11.7
(nodataperunit)
8. Duration ofthesubsidy
Payments aremade onamonthly basis during acalendar year.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Production, trade andconsumption ofeggsinshell(millions ofeggs).
Year Production Imports Consumption
1994 650 469 927
1995 591 412 827
1996 654 442 933
Exports arenegligible.
VI. BOVINE MEAT
1. Titleofthesubsidy programme
Temporary measures: valorization ofbovine meat.
2. Period covered
1996.
3. General goaland/or purpose ofthesubsidy
Special measures tosupport thebeefmarket havebeentaken asaresult oftheproblems caused
byBSEinEurope.
4. Background andauthority
- Agriculture Actof3October 1951;
- Order oftheFederal Council of24January 1996: 10million (loan);
- Order oftheFederal Council of3April 1996: 10million (loan), 10million
(non-repayable);G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page23
- Order oftheFederal Council of17April 1996: 25million (non-repayable);
- Order oftheFederal Council of16September 1996: 25million (non-repayable).
5. Form ofthesubsidy
Seepoint 4.
6. How thesubsidy isgranted andtowhom
Twotypes ofmeasures havebeenintroduced inorder todealwiththecrisis:
- Market intervention (purchase andstorage) bytheSwiss Cooperative fortheSupply
ofSlaughter Cattle andMeat (CBV);
- ageneral price reduction atwholesale level (SwF3perkg.forabout fourweeks,
representing atotalexpenditure ofSwF18.6million).
7. Amount ofthesubsidy
Themeasures represent atotalamount ofSwF80million (including 20million inloans).
8. Duration ofthesubsidy
- Order of24January 1996: untiltheendof1988;
- Order of3April 1996: untildestocking ofthemeat, anticipated for1998.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Prices toproducers steadied between 30August 1996and20December 1996owing toreduced
supplies andthepressure-relieving measures taken.
Animal category 5.1.1996
SwF/kg. DW715.3.1996
SwF/kg. DW30.8.1996
SwF/kg. DW20.12.1996
SwF/kg. DW
Cows (VKA3) 4.55 4.56 2.69 2.77
Heifers (RGT3) 7.89 7.-- 6.28 6.29
Bulls (MTT3) 8.88 8.24 7.13 7.34
VII. FEED GRAINS
1. Titleofthesubsidy programme
Bonuses topromote thegrowing offeedgrains, except maize, andseedlegumes.
7Dead weight.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page24
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Growingpremiumsforfeedgrainsareoneofthemeasuresdesignedtosafeguardpeasantincome
andfoodsecurity.
4. Background andauthority
- Agriculture Actof3October 1951.
5. Form ofthesubsidy
Payment totheproducer (grant).
6. How thesubsidy isgranted andtowhom
Crop bonuses proportionate totheareaunder cultivation areallocated todomestic producers
ofoats,triticale, barley, starch andeinkorn,8high-protein peasandfieldbeans.
Thesebonusesarefinancedfromashareofthespecial-purposecustomsdutiesleviedonimported
fodder.
Thebonuses areallocated annually intheConfederation budget.
7. Amount ofthesubsidy perunit
In1995 and1996 thefollowing amounts were paidperhectare (inSwF):
Barley, triticale, oats,starch andeinkorn91995 1996
First10hectares 770 770
Over 10hectares 560 560
Forfieldbeans andhigh-protein peas, thegrowing bonus came toSwF1,260 perhectare
in1995 and1996 regardless ofsurface area.
8. Duration ofthesubsidy
Themeasure wasintroduced in1951.
8From 1996.
9Provisionally.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page25
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Production, trade andconsumption
(notallowing forfluctuations instocks)
Barley, oats,triticale, fieldbeans, high-protein peas
Year Production Imports
(thousands oftonnes)Consumption
1995 394 141 547
1996 458 77 535
VIII. OIL-SEEDS
1. Titleofthesubsidy programme
Price support.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Themeasures taken topromote arable farming areaimed atkeeping aminimum areaunder
oil-seeds bothforbiological reasons linked totheneedforacertain cropdiversification andforreasons
offoodsecurity.
4. Background andauthority
- Agriculture Actof3October 1951.
5. Form ofthesubsidy
Thesubsidy takes theform ofanannual payment totheoil-processing plants (grant).
(a) Colza: theselling prices ofcolza oilarefixed inrelation totheprices ofother edible
oils. Thesubsidy consists ofthereimbursement made bytheConfederation tothe
oil-processing plants forthelossresulting from thedifference between their
manufacturing price andtheselling price ofcolza oilandoilcake.
(b) Soya andsunflower: theselling prices ofsoyaandsunflower totheoil-processing
plants aredetermined inthelightofthesituation ontheworld markets andworld market
prices. Thesubsidy iscomposed ofthedifference, which isborne bytheConfederation,
between theimport price andtheoilprocessors 'delivery price.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page26
6. How thesubsidy isgranted andtowhom
Thesubsidy foroilseedgrowing consists ofpriceandincome support intheformofatakeover
andprice guarantee forcolza, soyaandsunflower. Thisguarantee takes theform ofapayment to
theoilprocessors inorder toguarantee prices.
TheFederal Council fixes thesurface areaforwhich itguarantees toproducers thatitwill
purchase theoil-seeds grown. This surface areais20,000 hectares, with anupper limit of
16,000 hectares onthefigure forcolza growing. TheFederal Council fixestheprice totheproducer
taking intoaccount production costs, yields anddisposal prospects.
7. Annual amount ofthesubsidy
Year Colza
Total
(thousands ofSwF)Pertonne ofseed
(inSwF)
1994
1995
199631,492
24,413
21,331907
541
481
Year Soya
Total
(thousands ofSwF)Pertonne
(inSwF)
1994
1995
19963,848
5,049
5,557812
1,029
1,171
Year Sunflower
Total
(thousands ofSwF)Pertonne
(inSwF)
1994
1995
1996200
600
2,000582
596
1,097
8. Duration ofthesubsidy
OnthebasisoftheOrder of16June1986theoilprocessors haveobtained anannual contribution
fromtheConfederationamountingtothedeficitsresultingfromdomesticprocessingofthecolzaharvest.
Soyagrowing hasbeensupported since the1988harvest under thesame price andtakeover guarantee
asthatapplying tothe2,000 hectare surface areaoriginally allocated. Since 1994theruleshavealso
covered sunflower inrespect ofedible-oil production. TheOrder of24May1995 onoil-seeds has
replaced theOrders oncolza, soyaandsunflower. Thesurface areaforoil-seeds hasbeenlimited
to20,000 hectares atthesame time, withthecolza arearestricted to16,000 hectares atmost.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Thesubsidy hasmade itpossible tokeepaminimum areaunder oil-seeds. Domestic production
isequivalent onaverage to20-25 percentofSwiss consumption ofvegetable oilsandfats.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page27
Production, trade andconsumption
(intonnes)
Year Production ofcolza seed Consumption ofcolza oil
1994
1995
199634,780
45,113
44,32118,859
17,706
19,205
Imports ofcolza seedandoilareirregular andsmall. There arenoexports.
(intonnes)
Year Soya seedproduction Soya seedimport Soya oilexports
1994
1995
19964,740
4,909
4,74587,271
94,341
95,5549,294
9,833
10,420
Year Sunflower seedproduction Sunflower seedimports Sunflower oilexports
1994
1995
1996344
1,006
1,82225,251
26,113
31,342692
147
544
IX. SUGAR BEET
1. Titleofthesubsidy programme
Price support.
2. Period covered
Mid-1995 toend1996.
3. General goaland/or purpose ofthesubsidy
Thanks totheConfederation guarantee, thesugar refineries areinaposition toprocess domestic
sugar beetevenwhen sugar prices ontheworld market areextremely low. Thismeets theneedfor
foodsecurity andtheaimofencouraging diversification ofcrops.
4. Background andauthority
- Federal Order of23June1989 concerning thedomestic sugar industry.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page28
5. Form ofthesubsidy
Thesubsidy takes theform ofparticipation inafinancial mechanism, thesugar fund. The
purpose ofthesugar fundistocover theprocessing deficits ofthesugar refineries resulting from
processing ofthedomestic sugar-beet harvest. Thisfund, which serves tocover thesugar refineries '
deficits, isfinanced byashare ofthespecial-purpose customs duties andbyConfederation financial
assistance entered intheFederal budget.
6. How thesubsidy isgranted andtowhom
Inorder toenable thesugar refineries totakeover, atprices fixed bytheFederal Council,
thebeetproduced under thecultivation contracts concluded withtheplanters, theConfederation grants
themasubsidy intheformofaguarantee against anydeficit. Thepriceofbeetcorresponds inprinciple
tothecostofproduction onproperly runfarms. Thesugar refineries mustsellthesugar refined in
Switzerland ataprice equal tothatofimported sugar, customs cleared. Thismayinvolve them in
alosswhen theworld price isverylow.
TheFederal Order concerning thedomestic sugar industry, which came intoforce on
1October 1989, willbeinforce until30September 1999. Anylosses incurred through thesaleof
domestic sugar arecovered, intheorder shown, by:
1. Ashare intheproceeds ofthecustoms dutyfixed bytheFederal Council;
2. therevenue from previous years ("positive differences");
3. sharesinprofitsfromrelatedsugar-refineryactivitiesandtheyieldfromsugarextraction;
4. financial assistance from theConfederation.
Themaximum quantity ofbeetforwhich theConfederation guarantees disposal attheprice
fixedisdetermined eachyearbytheFederal Council. Since 1996ithasbeenfixedat1,100,000 tonnes.
Thesugar refineries collect apre-determined processing margin forsugar-beet processing.
Thedeficit resulting from processing isdefined onthebasis ofthetakeover costs ofthebeet, the
processing margin andtherevenue from thesaleofsugar andsugar products.
7. Amount ofthesubsidy perunit
Year Total (thousands ofSwF) Perkg.ofdomestic refined sugar
1994 16,500 14.0
1995 16,500 12.8
1996 40,329 21.6G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page29
8. Duration ofthesubsidy
Thesubsidy isfixed foronesugar year(1October to30September). Payments areentered
intheConfederation budget forthefollowing year. Theexisting financing mechanism wasintroduced
on1July1995.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed.
Production, trade andconsumption ofsugar (intonnes)
Year Production Imports10Exports11
1994 117,577 145,338 892
1995 128,779 86,768 675
1996 187,012 147,306 254
X. POTATOES
1. Titleofthesubsidy programme
Valorization ofpotato production.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Article 32bisoftheFederal Constitution (RS101)callsforlegislation toencourage theuse
ofdomestic distillable materials -including potatoes -forfoodorfodder.
Thisprovision isdesigned interaliatoreduce theproduction andconsumption ofpotable spirits
withaviewtosafeguarding public health. Article 8oftheAlcohol Actauthorises thedistillation of
potatoes onlyifthecropcannot beusedinamore appropriate manner. Inthiscontext, therefore,
thesubsidies serve topromote theuseofpotatoes forpurposes other thanalcohol production.
4. Background andauthority
- Article 32bisoftheFederal Constitution;
- Federal Actof21June1932 onalcohol.
10Customs tariff headings:
1701.1100/1200/9100/9900/9991/9999/(1994);
1701.1100/1200/9100/9991/9999/(1995/96).
11Id.10.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page30
5. Form ofthesubsidy
Thesubsidies takethefollowing forms:
1. Saleofpotatoes atreduced prices forhuman consumption;
2. supplying thecountry withpotatoes forhuman consumption;
3. domestic potato seedlings;
4. utilization ofsurpluses: subsidies intheform ofaidfortheprocessing ofpotatoes
intoflakes orflour forfeed, foruseasfresh feedandfortheexport ofpotatoes for
human consumption andofpotato products;
5. financial assistance topotato organizations;
6. financial assistance forresearch;
7. financial assistance withadvertising topromote potato consumption.
6. How thesubsidy isgranted andtowhom
Thetypes ofsubsidies allocated arethefollowing:
1. Financial assistance bytheConfederation
TheConfederation grants subsidies andtakesothermeasures toensure theuseofpotato harvests
withoutdistillation.Thesubsidiesandothermeasuresaredesignedtomatchpotatoproductiontodisposal
possibilities. Within theauthorised credits, itallocates financial assistance inorder toencourage the
saleofpotatoesforhumanconsumptionbymeansofadvertising,information,qualitycontrolandsimilar
means. Financial assistance mayalsobeprovided tosupport research inthefields oftechnology, food
andfodder andtodisseminate know-how.
2. Price support
Forthe1996crop, theproducer prices forpotatoes forhuman consumption, thetarget prices
forpotatoes intended forthefoodindustry andtheprices ofsurplus potatoes which aretobeprocessed
intofodder products arefixed bytheFederal Council afterconsultation withinterested parties. In
fixing theprices, dueaccount willbetaken ofspecific quality requirements.
Type ofsubsidy Recipient
Transport subsidy Business houses
Subsidy toreduce theprice of
potatoes (potato salesatreduced
prices forpersons inneed). This
measure wasabolished in1995. Business houses
Subsidy toreduce theprice of
ordinary potatoes intended for
fodder. Producers, buyers
(cattle keepers)G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page31
Flat-rate allowance forthe
processing ofsurpluses Dehydration factories
Financial assistance forpotato
organizations Commission suisse dela
pomme deterre
Financial assistance forresearch Federal Agricultural
Research Stations
Financial assistance for
advertising topromote potato
consumption Commission suisse dela
pomme deterre
Thesubsidies areplanned atthebeginning ofeachpotato yearinaccordance withthecredits
granted andthesizeofthecrop. They mayvaryfrom yeartoyearandbethesubject ofspecial
instructions anddirectives.
7. Amount ofthesubsidy
Utilization ofpotatoes
(inthousands ofSwF)
Year Total expenses
1994/95 15,384
1995/96 15,623
Amount perunit
(SwFpertonne)
Year Utilization ofsurpluses
1994/95 134,68
1995/96 203,04
8. Duration ofthesubsidy
Subsidy fortheutilization year From 1September untiltheendofthe
utilization year
Subsidies forsalesatreduced prices Inautumn
Subsidies toorganizations and Single amount forthewhole year
forresearch
Subsidies foradvertising Single amount forthewhole year
Theaccounting yearrunsfrom 1Julyto30June.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page32
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Production, tradeandconsumption (potatoes forhuman consumption, seedandfodder potatoes)
(inthousands oftonnes)
Year Crop Imports12Exports Share ofcropintended fordomestic
human consumption
1994/95 634 48 8 370
1995/96 632 11 4 390
XI. FRUIT
1. Titleofthesubsidy programme
Valorization ofdomestic production.
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Article 32bisoftheFederal Constitution callsforlegislation toaimatreducing theproduction
andconsumption ofpotable spirits andpromoting theproduction ofdessert fruitinorder tosafeguard
public health. Asaresult ofthemeasures adopted tothatend,Swiss percapita consumption offresh
fruitisamong thehighest inEurope.
Other measures inthissector areaimed atpreventing acollapse intheprices ofdomestic
products.
4. Background andauthority
- Article 32bisoftheFederal Constitution;
- Federal Actof21June1932 concerning alcohol;
- Agriculture Actof3October 1951.
5. Form ofthesubsidy
Thesubsidies aregranted indifferent ways according totheirnature:
12Imports arecalculated fortheperiod from 1January to31December (1995 and1996); seetariff quota
No.14innotification MA:2 totheWTO.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page33
1. Contributions tothecostsofquality control andofpromoting fruitconsumption. The
contributions arepaidtothetradeorganizations inthesector. They areeither flat-rate
orproportional totheorganizations 'financial participation;
2. Subsidiestopromotetheutilizationofsurpluseswithoutdistillation.Theseareprimarily
intended formanufacturers ofconcentrated fruitjuiceandcover theadditional costs
resulting fromthetakeover ofsurpluses. Inaddition, subsidies arepaidtoexporters
inorder tosafeguard exports ofcherries andcertain fruitproducts, inparticular pip-fruit
juiceconcentrates totraditional markets. Thegranting ofthesesubsidies isconditional
onadherence totheminimum prices fixed bytheFederal Council forciderfruit. The
subsidies arefixedsumsperunitwhich aredetermined according tomarket conditions;
3. Contributions toextension costs inthefieldoffruitgrowing aimed atrationalizing
cultivation andimproving fruitquality. Theyaregranted tocantons which themselves
provide assistance forthispurpose;
4. Contributions totherenewal ofapricot cultivation andreduction ofthepriceofapricots
intended forindustrial processing. Contributions arepaid totheproducers.
Contributions forcultivation renewal havebeenincluded intheaction planwhich started
in1995andwhich islimited to1998. They consist offixed sums perhectare andper
tonne.
6. How thesubsidy isgranted andtowhom
Seereplies toQuestion 5.
7. Amount ofthesubsidy perunit
Total amount (inthousands ofSwF)
Year Total Points 1to2 Point 3 Point 413
1994/95 38,816 36,826 1,163 827
1995/96 23,413 21,553 1,095 765
1996/971438,165 34,595 1,365 2,205
Amount perunit
Thecontribution forreducing theprice ofapricots intended forindustrial processing came
to54centimes perkg.ofprocessed apricots for1995 and1996.
Thecontribution forrenewal ofapricot cultivation varies fromSwF3to6.50persquare metre.
Theparametersdeterminingthesubsidyaretheslopeoftheplot,itslayoutandtheenvironmentalcharges
accepted bytheproducer.
Theamounts perunitfortheother measures mentioned cannot beshown because theyvary
toowidely withconditions andwiththemarket situation.
13The1994, 1995 and1996 calendar years.
14Budget.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page34
8. Duration ofthesubsidy
Fortheinstitutionalized measures during theperiod covered bythenotification, seethereplies
toQuestion 5.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Themain effect ofthesubsidies istoensure, toagreat extent, thatthepip-fruit cropcanbe
puttonon-alcoholic use.Aspercapita consumption ofallforms offruitisveryhighinSwitzerland,
domestic production offruitcovers onlyabout halfofthecountry 'srequirements, according tothe
year.
Production andtrade
(thousands oftonnes)
Year Production
Total15Imports
Ofwhich apples Chapter 08 Heading 0808/0809
1994 423 288 473 81
1995 376 199 456 72
1996 n.a. n.a. 441 70
Thequantities offruitexported (Chapter 08)came to:
1994 2,946 tonnes
1995 2,066 tonnes
1996 2,557 tonnes
XII. WINE, GRAPE JUICE, DESSERT GRAPES
1. Titleofthesubsidy programme
Thefollowing measures havebeentaken inorder topromote vinegrowing:
1. Maintenance ofquality byverification ofthegrape harvest;
2. non-alcoholic useofgrapes (dessert grapes).
2. Period covered
1995-1996.
3. General goaland/or purpose ofthesubsidy
Themeasures inpoint1aredesigned topromote thedisposal ofthegrape harvest. Thesubsidies
forthenon-alcoholic useofgrapes areintended topromote thedisposal ofpartoftheharvest andcertain
types ofgrapes (Chasselas andAmericano from theTessin).
15Apples, pears, quinces, cherries, plums andprunes, apricots, peaches, walnuts, kiwifruitandberries.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page35
4. Background andauthority
- Agriculture Actof3October 1951;
- Federal Order of22June1979 instituting measures infavour ofviticulture;
- Wine Statute of23December 1971.
5. Form ofthesubsidy
Contributions (grants).
6. How thesubsidy isgranted andtowhom
Themeasures topromote theprocessing ofgrape juiceandtheindustrial useofsurplus wine
havebeenabandoned since 1990. Subsidies forvineyard renewal wereabolished attheendof1992.
Financing ofthevinegrowing promotion measures isprovided outofthevineyard fund. Thisfund
isfinanced byashare ofthespecial-purpose customs duties levied ongrape juiceandwineimported
incasks.
Thefinancial assistance forharvest verification ispaidtothecantons asadministrative
compensation fortaking responsibility forcarrying outtheverification. Thisassistance covers between
60and80percentofexpenditure bythecantons.
Subsidies forthenon-alcoholic useofgrapes aregranted todessert-grape traders oncondition
thattheypaythefixed prices totheproducer. These subsidies must ultimately bepassed ontothe
consumer.
7. Amount ofthesubsidy byunit
Amount ofthesubsidy (inthousands ofSwF)
Year Verification ofharvest Dessert grapes
1994 1,712 1,421
1995 1,531 1,850
1996 1,113 1,791
Unitamount:
Non-alcoholic useofgrapes (dessert grapes): between SwF1.00and2.40perkg.
8. Duration ofthesubsidy
Thesubsidy forgrape-harvest verification ispaideachyearafterpresentation ofthecantons '
accounts, inaccordance withtherelevant legalbasis. Asregards thesaleofdessert grapes, thesubsidy
wasconsiderably increased in1984. Contributions arepaidintheautumn ofeachyearafterthesales
season, which laststhree tofiveweeks depending onmaturation conditions.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page36
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Production, Trade andConsumption16
Wine
(inthousands ofhectolitres)
Year Production Imports Exports Consumption
1993/94
1994/95
1995/961,154
1,188
1,1811,653
1,711
1,85813
13
93,052
2,957
2,921
Grape Juice
(inthousands ofhectolitres)
Year Production Imports Exports Consumption
1993/94
1994/95
1995/962.8
0.5
0.6103
98
970.5
0.3
0.7111
105
96
Dessert Grapes
(inthousands ofhectolitres)
Year Production Imports Exports Consumption
1993/94
1994/95
1995/960.5
0.7
0.740.4
40.2
37.1-
-
-40.9
40.9
37.8
XIII. PROCESSED AGRICULTURAL PRODUCTS
1. Titleofthesubsidy programme
Export contributions.
2. Period covered
Theperiod covered bythenotification is1995 and1996.
3. General goaland/or purpose ofthesubsidy
Inorder toplace theSwiss foodstuffs industry onanequal footing withforeign competitors
inrespect ofthecostofagricultural commodities usedinthepreparation ofprocessed products, the
Actmentioned below authorises Switzerland togrant contributions onexports.
16Figures based onthewine-growing yearextending from 1Julyto30June.G/SCM/N/16/CHE
G/SCM/N/25/CHE
Page37
4. Background andauthority
TheFederal Actof13December 1974 ontheimport andexport ofprocessed agricultural
products, which hasbeeninforce since 1June1976, andtheOrder of18October 1995 regulating
contributions toexports ofprocessed agricultural products.
5. Form ofthesubsidy
Thecontributions aregranted fortheexport ofcertain agricultural commodities (dairy products,
eggproducts, cereal products, sugar andmolasses) where theyareexported intheformofprocessed
foodproducts. They arecalculated onthebasis ofthedifference between Swiss andforeign prices
ofagricultural commodities andaccording tothequantity ofagricultural commodities usedinthe
manufacture ofthegoods exported.
6. How thesubsidy isgranted andtowhom
Thecontributionsarepaidtomanufacturersafterexport.Requestsforcontributionsmayinclude
exports made during aperiod offrom onetotwelve months.
7. Unitamount ofthesubsidy or,where thisisnotpossible, totalamount orbudgetized annual
amount ofthesubsidy
Thetotalamount ofthecontributions paidwas:
1995 (millions ofSwF) 1996 (millions ofSwF)
142.3 133/5
Amount perunit:
Export contributions arecalculated andfixed periodically (normally every three months) for
eachoftheprincipal agricultural commodities usedbythefoodstuffs industry onthebasis ofthe
difference between Swiss andforeign representative prices. Theamount perunitofprocessed products
alsodepends onthequantities ofagricultural commodities usedinpreparing thegoods exported.
8. Duration ofthesubsidy and/or anyother deadline connected withthesubsidy
Export contributions havebeeninforcesince1June1976. Thebudget isallocated onanannual
basis from 1January to31December.
9. Statistical dataenabling theeffects ofthesubsidy ontrade tobeassessed
Export contributions make itpossible toputSwiss firms inthesame competitive situation on
foreignmarketsasforeignfirmsasregardsthecostsofpurchasingtheprincipalagriculturalcommodities.