WORLD TRADE
ORGANIZATIONG/SCM/Q2/CHE/14
14 August 2003
(03-4240)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Replies to Questions from the UNITED STATES1 Regarding the New
and Full Notification of SWITZERLAND2
The following communication, dated 12 August 2003, has been received from the Permanent
Mission of Switzerland.
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Contributions for Butter
Q. Please explain how the per unit subsidy fo r table butter, cooking butter and re-solidified
butter is derived.
Reply
Subsidies are granted to maintain the balance between prices of butter and prices of vegetable
fats and oils.  Considering the very low prices of vegetable fats and oils on the domestic market, therewould be no sale of butter – especially for industrial purposes – without a reasonable and
differentiated subsidizing of the butterfat.
Skimmed Milk and Powder Milk
Q. In your answers to our questions on your 2001 New and Full Notification
(G/SCM/Q2/CHE/11) you projected that skim milk price support would be cut by a third
between 1998 and 2003.  Has this occurred?
Reply
Skim milk price support has indeed been more or less cut by a third as illustrated by the
following figures.
1 May 1999:  0.12 - 0.15 CHF/kg depending on the further processing or use
1 May 2003:  0.08 - 0.115 CHF/kg depending on the further processing or use
                                                     
1 G/SCM/Q2/CHE/12
2G/SCM/N/95/CHEG/SCM/Q2/CHE/14
Page 2
Calculating the reduction by the minima, namely 0.12 - 0.08 = 0.04, results exactly in one
third of the support in 1999.  By the maxima, the reduction of 0.15 - 0.115 =0.035 corresponds to
23 per cent.
Cheese for Export
Q. Can you please provide a dollar amount for total subsidies in 2002?
Reply
The total subsidies for cheese in 2002 amounted to CHF 45,264,648, resp., US$29,097,309
(exchange rate 2002:  1.55563).
Processed Agricultural Products
Q. Please provide examples of the types of processed food products that receive benefits
under this programme.
Reply
Swiss Tariff-Lines (HS 2002) of Processed products benefiting from export
contributions according to the Federal La w of 13 December 1974 on the import and
export of processed agricultural products (SR 632.111.72) and the Ordinance of
18 October 1995 regulating the contributions to exports of processed agricultural
products ( SR 632.111.723)
1704.1010 1901.1022 1905.3011
1704.1020 1901.2081 1905.3019
1704.1030 1901.2082 1905.3021 Examples of processed products:
1704.9010 1901.2083 1905.3022
1704.9020 1901.2091 1905.4010         -    Sugar confectionery
1704.9031 1901.2092 1905.4021         -    Chocolate
1704.9041 1901.2093 1905.4029         -    Dough
1704.9042 1901.2099 1905.9025         -    Biscuits
1704.9043 1901.9021 1905.9029         -    Pasta
1704.9050 1901.9022 1905.9031         -    Food preparations
1704.9060 1901.9041 1905.9032
1704.9091 1901.9042 1905.90391704.9092 1901.9043 1905.9091
1704.9093 1901.9044 1905.9092
1806.1010 1901.9045 1905.90931806.1020 1901.9046 1905.90941806.2091 1901.9047 1905.9095
1806.2092 1901.9081 2001.9020
1806.2093 1901.9082 2005.20111806.2094 1901.9089 2005.20121806.2095 1901.9091 2008.1110
1806.2096 1901.9092 2008.9998
1806.2097 1901.9093 2101.12901806.2099 1901.9094 2101.2090G/SCM/Q2/CHE/14
Page 3
Swiss Tariff-Lines (HS 2002) of Processed products benefiting from export
contributions according to the Federal La w of 13 December 1974 on the import and
export of processed agricultural products (SR 632.111.72) and the Ordinance of
18 October 1995 regulating the contributions to exports of processed agricultural
products ( SR 632.111.723)
1806.3111 1901.9095 2106.1011
1806.3119 1901.9096 2106.9081
1806.3121 1902.1100 2106.90851806.3129 1902.1900 2106.90861806.3211 1902.2000 2106.9088
1806.3212 1902.3000 2106.9091
1806.3213 1902.4010 2106.90921806.3290 1902.4090 2106.90931806.9011 1904.1010 2106.9094
1806.9019 1904.2000 2106.9095
1806.9021 1904.9099 2106.90961806.9029 1905.10101901.1011 1905.1020
1901.1012 1905.2010
1901.1013 1905.20201901.1021 1905.2030
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