WORLD TRADE WT/TPR/M/13/Add.1
10September 1996
ORGANIZATION(96-3484)
Trade Policy Review Body Original: English/French
28-29 May1996
TRADE POLICY REVIEW
SWITZERLAND
MINUTES OFMEETING
Addendum
Answers toWritten Questions
Thefollowing communication wasreceived from thedelegation ofSwitzerland, responding
toquestions submitted bythedelegations oftheEuropean Union, Japan andtheUnited States tothe
Trade Policy Review Body forthereview ofSwitzerland andtoquestions raised bythediscussants
during thereview meeting.
I. EUROPEAN UNION
Question 1
Switzerland hasaligned anumber oftechnical standards oninternational orEuropean standards
(seeLoisurlesentraves techniques aucommerce, LETC ,of1995).
Answer
During 1995, theSwiss Association forStandardization (SNV) accepted 1,661 international
standards andadopted 37Swiss standards insectors under cantonal competence where there arefew
ifanyinternationalstandards,namely,constructionmaterialsandroads.Uponrequest,theSNVprovides
thenational andinternational standards applicable bysector.
Question 2
Although thenewlawongovernment procurement onlydates from 1January 1996, isitpossible
tohave preliminary statistics onthenumber offoreign companies?
Answer
Atthisstage, wearenotinaposition toprovide statistics onthenumber offoreign companies
thathaveshown interest ingovernment procurement according totherelevant WTO Agreement. We
areintheprocess ofdeveloping statistical models tomeettherequirements oftheWTO Agreement.WT/TPR/M/13/Add.1 Trade Policy Review
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Question 3
Would itbepossible tosimplify theprocedures forpublishing government procurement
announcements, forexample, bypublishing them allinasingle official document such asthe
Feuille Officielle Suisse duCommerce ?Thisalready publishes announcements ongovernment
procurement intheConfederation itself, butinorder tohave access tothisinformation in
26cantons, itisnecessary tosubscribe to26different official journals.
Answer
Inorder tofacilitate access toallgovernment procurement subject totheWTO Agreement,
thecantons maypublish asummary oftheirinvitations totender intheFeuille Officielle Suisse du
Commerce,inaccordancewithArticleIX,para.8,oftheWTOAgreementonGovernmentProcurement.
TheConfederation encourages thispractice.
Question 4
Report bytheSecretariat, p.61.1Atpresent, imports ofbutter arethrough BUTYRA (State
monopoly) .Thismonopoly istobedismantled, what isthetime-table forthisandtheprocedure?
Answer
BUTYRA willbewound upwhen thenewlawonagriculture enters intoforce. Thereform
process isalready under wayanditisenvisaged thatthenewlawwillcome intoeffect on1January 1998
attheearliest.
Once ithasentered intoforce, remaining activities, i.e.,thedistribution ofinternal subsidies
andthegranting ofimport licences, willbetheresponsibility oftheFederal Office ofAgriculture
(OFAG). TheOffice willberesponsible formonitoring imports anddistributing theshares ofthetariff
quota toauthorized importers. Inaddition, thepurchase ofdomestic butter bytheState andthe
contributions aimed atreducing theprice ofbutter willdecrease andbeeliminated afteratransitional
period offiveyears.
II. JAPAN
Question 1
Requirements concerning participation byresidents intheactivities ofcompanies andmovement
offoreigners (Report bytheSecretariat, p.33).
Answer
Wealready replied tothisquestion attheTPRM meeting on28and29May1996.
1Allpage numbers given refer totheEnglish version ofthereport WT/TPR/S/13.Switzerland WT/TPR/M/13/Add.1
Page 3
Question 2
Government procurement (Report bytheSecretariat, p.36).
Answer
According toArticle III,para. 3,oftheWTO Agreement onGovernment Procurement, the
provisions ofparagraphs 1and2oftheArticle donotapply tomeasures affecting trade inservices
other thanlawsregarding Government procurement covered bytheWTO Agreement. Inthe"General
Notes andDerogations from theProvisions ofArticle III",which areanintegral partofAppendix I,
Switzerland restricted itscommitments regarding services under theWTO Agreement onGovernment
Procurement tothespecific initial commitments inthefinalSwiss offersubmitted within theframework
oftheGeneral Agreement onTrade inServices. Thereplies toquestion 1therefore apply tothesupply
ofservices related toGovernment procurement.
Question 3
Cantonal authority fortheapplication ofrestrictive measures onmarket access .
Answer
TheFederal Council doesnotempower Cantons totakerestrictive measures onmarket access.
TheConfederation fixes theregulatory framework ofourFederal system andtheCantons havethe
competence toimplement Federal legislation. TheConfederation monitors uniform application of
implementationmeasuresinSwitzerland.Anumberofsectorsareforthemomentwithinthecompetence
oftheCantons, forexample pharmaceuticals andconstruction materials (seepara. 53ofdocument
WT/TPR/S/13).
Question 4
Thepreferential measure benefiting local suppliers ofaudiovisual services (Report bythe
Secretariat, p.30).
Answer
InSwitzerland, broadcasters ofradio andtelevision programmes fromSwitzerland musthave
aconcession. Theapplicant mustbedomiciled inSwitzerland andbeunder Swiss control. Thismeans
that51percentofthecapital mustbeSwiss-owned. Thereasons forthisrestriction arecultural and
areduetothespecial features oftheaudiovisual sector. TheSwiss Constitution requires theState
toguarantee pluralism infreedom ofexpression andcultural diversity inaccordance withthefour
linguistic regions. TheGovernment may,however, decide nottoimpose the49percentlimitonforeign
investors ifthere isreciprocity withtheirState oforigin.
Reception andtransmission ofradio andtelevision programmes byforeign broadcasters are
freeandnotsubject toanyprior authorization. Cable networks havemade wideuseofthisfreedom
(more than50foreign programmes areavailable oncable networks inSwitzerland, including Japanese
programmes). Theonlycondition isthatthese programmes mustrespect theinternational agreements
towhich Switzerland hasacceded, inparticular theEuropean Convention onTransfrontier Television.WT/TPR/M/13/Add.1 Trade Policy Review
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Swiss broadcasters arefreetopurchase foreign programmes. Broadcasters established in
Switzerland donothavetorespect anyminimum national orEuropean quotas.
Question 5
Fiscal duties onimported carsandspare parts (Report bytheSecretariat, p.92).
Current situation:
- Fiscal customs duties areonlyimposed onimported motor vehicles andspare parts;
- fiscal customs duties arealsopayable onimports fromcountries withwhich Switzerland
hassigned multilateral orbilateral free-trade agreements (forexample, theEC);
- thenormal rateformotor vehicles under tariff heading 8703 ismade upofafiscal
element andanindustrial protection element. Thelatter iscalculated onweight and
isSwF12,14or15per100gross kg.
Situation asfrom 1January 1997:
- Thenewlawonmotor vehicle taxwillenter intoeffect on1January 1997. After that
date, thefiscal customs dutywillbereplaced bythemotor vehicle tax;
- thetaxrateis4percentofthevalue;
- themotor vehicle taxwillbepayable onbothimported motor vehicles andthose
manufactured inSwitzerland;
- theindustrial protection element (i.e.theso-called residual tax)formotor vehicles
under tariff heading 8703 willremain (SwF12,14or15per100gross kg.);
- spare parts arenottaxed. Thecurrent customs tariff willremain ineffect.
Question 6
Exhaustion ofintellectual property rights (Report bytheSecretariat, p.48).
Answer
TheJapanese delegation 'sinterpretation ofArticles 4and6oftheTRIPS agreement iscorrect.
TheReport bytheSecretariat mentions thepossibility ofbilateral agreements ontheexhaustion
ofintellectual property rights, butatthepresent stage, nonegotiations aretaking place orenvisaged.
Ifsuchnegotiationsweretotakeplace,Switzerlandwouldnaturallytakeintoaccounttherelevant
provisions oftheinternational agreements towhich ithasacceded (Article XXIV ofGATT 1994, the
WTO TRIPS Agreement).Switzerland WT/TPR/M/13/Add.1
Page 5
III. UNITED STATES
Question
Howarerevenues collected asremuneration from widespread useallocated toforeign right-holders
inworks covered bycopyright andrelated fields?
Answer
Asprovided bytheSwiss Lawoncopyright andneighbouring rights, thefollowing forms of
widespread useareremunerated:
- rental ofworks other thancomputer programmes,
- reproduction ofworks forprivate use,
- broadcasting andrebroadcasting ofphonograms andvideograms andpublic reception
orpresentation.
Claims forremuneration forwidespread useofworks mayonlybeasserted bytheapproved
collecting societies. Authorization isgranted, asageneral ruletoonecollecting society onlyforeach
category ofworks inthefieldofcopyright (SUISA, SUISSIMAGE, PROLITTERIES, SOCIETE DES
AUTEURS)andtoonesocietyforrelatedrights(SWISSPERFORM).Collectingsocietiesaresupervised
intheirconduct ofbusiness bytheSwiss Federal Institute ofIntellectual Property.2
Swiss collecting societies grantnational treatment toforeign copyright andrelated rightholders.
Inother words, national andforeign right holders areremunerated onthesame conditions. Asfar
astheuseofphonogrammes andvideogrammes isconcerned, foreign performers whodonothave
theirresidence inSwitzerland onlyhavearighttoremuneration iftheStateofwhich theyarenationals
affords acorresponding right toSwiss nationals. Thisexception isinconformity withtheRome
Convention andtheTRIPS Agreement.
Collecting societies havetodraw uptariffs anddistribution regulations fortheremunerations
theycollect. Inaccordance withthelaw,proceeds fromexploitation aredistributed inproportion to
therevenue from theindividual works andperformances. Thecollecting societies must doallthat
mayreasonably beexpected ofthem toidentify those whoareentitled. Proceeds from exploitation
aredivided between theoriginal owners ofrights andother entitled persons insuchawaythatan
equitable share fallstotheauthors andperformers. Ifthiskindofdistribution entails unreasonable
expense, collecting societies mayalsoestimate theextent ofrevenues. Inthatcase, estimates shall
bebased onverifiable andappropriate factors.
2SUISAisthecollectingsocietycompetentformusicalworks;SUISSIMAGEisthecollectingsocietycompetent
foraudiovisual works; PROLITTERIS isthecollecting society competent forliterary works; SOCIETE SUISSE
DESAUTEURS isthecollecting society competent fordramatic, dramatic-musical andaudiovisual (fiction and
documentary) works.WT/TPR/M/13/Add.1 Trade Policy Review
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Inorder toremunerate foreign copyright holders, Swiss collecting societies haveconcluded,
where possible, mutual agreements withforeign collecting societies. Remuneration agreements for
widespread useofworks withAmerican collecting societies existforaudiovisual works, fordramatic,
dramatic-musical andfiction ordocumentary works, formusical works forprivate useandforliterary
works. Agreements forrelated rights areunder negotiation. Ifremuneration agreements withnational
collecting societies donotexist, individual foreign copyright orrelated rightholders canconclude a
contract withthecompetent Swiss collecting society andasktoberemunerated directly.