WORLD TRADE
ORGANIZATIONG/SCM/N/95/CHE
10 April 2003
(03-1963)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the SCM Agreement
SWITZERLAND
The following communication, dated 3 April 2003, has been received from the Permanent
Mission of Switzerland.
_______________G/SCM/N/95/CHE
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TABLE OF CONTENTS
Page
PART ONE:  INDUS TRY............................................................................................................ .........3
I. ASSISTANCE FOR ZONES WHICH ARE  UNDER ECONOMIC  RENEWAL..............3
II. ASSISTANCE FOR MOUNTAIN AREAS ............................................................................4
III. ASSISTANCE FOR FORE STRY ACTIV ITIES...................................................................5
PART TWO:  AGRICUL TURE ......................................................................................................... ..7
I. MILK AND DAIRY  PRODUCTS...........................................................................................7
A. B UTTER ............................................................................................................................... ........7
B. S KIMMED MILK AND POWDER .....................................................................................................8
C. C HEESE FOR DOMESTIC CONSUMPTION .......................................................................................9
D. C HEESE FOR EXPORT .................................................................................................................10
E. O THER DAIRY PRODUCTS .........................................................................................................11
II. BREEDING AND DAI RY CA TTLE ....................................................................................13
III. HORSES ..................................................................................................................... .............14
IV. WOOL........................................................................................................................ ..............15
V. EGGS ......................................................................................................................... ..............16
VI. FEED GRAINS ................................................................................................................. ......18
VII. OIL-SEEDS .................................................................................................................. ...........19
VIII. SUGAR BEET................................................................................................................ .........21
IX. POTATOES.................................................................................................................... .........22
X. FRUIT........................................................................................................................ ..............24
XI. PROCESSED AGRICU LTURAL PRO DUCTS..................................................................25G/SCM/N/95/CHE
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PART ONE:  INDUSTRY
I. ASSISTANCE FOR ZONES WHICH ARE UNDER ECONOMIC RENEWAL
1. Title of the programme
Assistance for economic areas that are economically renewed.
2. Period covered
2001 - 2002.
3. General goal and/or purpose of the subsidy
Support of projects of private enterprises aimed at creating and maintaining jobs in areas that
are under economic renewal.
Support of institutions and projects between firms, which increase the potential of
development of companies and promote investment  and innovation in areas that are under economic
renewal or in zones particularly touched by the negative consequences of liberalization in the field of
the infrastructures.
4. Background and authority
Federal decree of 6 October 1995 (state on 14 August 2001; SR 951.931).
Federal ordinance of 10 June 1996 (state on 11 December 2001; SR 951.931)
Federal ordinance of 12 June 2002 (state on 2 July 2002; SR 951.931.1)
5. Form of the subsidy
Financial assistance is allocated in the form of:
(a) Tax relief on federal taxes (partial or full);
(b) Interest subsidies on investment credits;
(c) Guarantees for investment credits;
(d) Subsidies for projects or institutions between companies.
6. How the subsidy is granted and to whom
Financial support is granted to manufacturing companies and to services companies with
activities closely linked to the manufacturing process.  The amount of the investment credit taken into
consideration for the grants is at maximum one third of the investment project costs (hard assets and
start up costs).  The project has to be innovative: the product and the manufacturing process have to
be technologically up-to-date and give the company an increased ability to compete through a national
and international market presence.
                                                     
1 SR = Systematic Registry of Federal Law, www.bk.admin.chG/SCM/N/95/CHE
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The interest subsidies have a ceiling of CHF 5 million for the credit for which interest
contributions may be paid.  The maximum subs idy which may be granted (Confederation plus
Canton) comes to CHF 625,000 (assumption of 5 per cent interest rate).
The financial subsidies for projects or institutions between firms are granted in proportion of
the importance of the project for the regional ec onomy.  It rises to the maximum with CHF 600,000
(Confederation + canton) per year and project.
Under the ordinance of 10 June 1996, areas considered to be under economic renewal are
those where:
(e) A particular need for structural adaptation exists in consequence of an evolution of
the population lower than that of the whole country, a level of incomes definitelylower than the national average and a proportion of industrial activities higher than
the average.
(f) The average unemployment exceeds the national average;
(g) The trend in the number of jobs has been markedly less favourable than the national
average; or
(h) There are clear indications that at least one of the above-mentioned situations will
occur shortly, in particular that the prospects for the most important sectors of the
economy and for the largest firms are unfavourable.
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized
annual amount of the subsidy
The sum of CHF 32.3, respectively CHF 26.2 million in guarantees has been granted in
2001/2002.  In the same period, the sum of CHF 2.3, respectively CHF 2.0 million has been granted in
interest subsidies and CHF 972,000, respectively CHF 1.9 million in projects or institutions between
companies.
8. Duration of the subsidy and/or any ot her deadline connected with the subsidy
The assistance programme remains in force for five years, until 30 June 2006.
The maximum duration of financial assistance in each case is eight years for guarantees,
five years for interest contributions, and 10 years for tax relief.  The subsidies for projects andinstitutions between companies are considered annually.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
The effect of the assistance programme on trade is negligible, if not non-existent.
II. ASSISTANCE FOR MOUNTAIN AREAS
1. Title of the programme
Surety and contributions to interest servicing in mountain areas.G/SCM/N/95/CHE
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2. Period covered
2001 and 2002.
3. General goal and/or purpose of the subsidy
The programme is aimed at providing long and medium term capital loans to small and
medium-sized establishments situated in mountain areas.
4. Background and authority
This financial assistance is based on the Federal Law encouraging credit guarantees and on
loan service contributions in mountain areas (SR 901.2) of 25 June 1976.  These areas are defined in
the Federal Law on investment assistance in  mountain areas (SR 901.1) of 21 March 1997.
5. Form of the subsidy
The Confederation encourages the grant of sureties by giving subsidies to the Swiss
Guarantee Cooperative for the Arts and Crafts and by making interest-servicing contributions.  The
subsidy does not relate to a specific product or sector.
6. How the subsidy is granted and to whom
The programme applies to sureties and intere st servicing contributions for small- and
medium-sized enterprises which are profitable or likely to develop, whether existing or to be created,
whose activity conforms to an established devel opment programme within the meaning of the Federal
Law on investment assistance in mountain areas (SR 901.1) of 21 March 1997.  Payments are made
only to establishments, which are not already s upported by the Confederation in some other way.
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized
annual amount of the subsidy
The Confederation's total share of the losses on guaranteed loans was CHF 1.9 million in
2001 and CHF 2.5 million in 2002, with federal commitments as a whole amounting toCHF 45.4 million at year end 2001 and CHF 42.5 million at year end 2002.
The contributions to interest servicing paid  out totalled CHF 0.3 million in 2001 and
CHF 0.4 million in 2002.
8. Duration of the subsidy and/or any ot her deadline connected with the subsidy
The assistance programme for mountain areas remains in force indefinitely.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The effect of the subsidy on trade is insignificant, if not non-existent.
III. ASSISTANCE FOR FORESTRY ACTIVITIES
1. Title of the programme
Assistance for Forestry ActivitiesG/SCM/N/95/CHE
Page 6
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
Compensation to forest owners for services rendered to the public.
4. Background and authority
Federal Law on Forests (1991) [SR 921]
Federal Ordinance on Forests [SR 921.01]
5. Form of the subsidy
Assistance is allocated in the form of:
• Indemnities
• Financial assistance
6. How the subsidy is granted and to whom
In Switzerland, the policy of assisting forestry activities provides two types of assistance, both
intended as incentives:
• Indemnities are paid for the performance of tasks required by law (e.g. measures for
protection against natural hazards, minimum tending in protection of forests). Up to
70 per cent of the costs incurred by such measures are paid by the Confederation.
• Financial assistance is provided if the forest owner chooses to carry out certain measures
such as tending and hauling, if the cost of these measures is made particularly onerous byrestriction linked to nature protection.  In this context, up to 50 per cent of the costs
incurred is covered by the Confederation.  Financial aid is also offered for the
improvement of management condition (e.g. building of forest roads and other structural
improvement).
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized
annual amount of the subsidy
The assistance has stabilised at around CHF 180 million in the last few years.  In 2000, the
sum of CHF 260 Mio was granted.  This increase in spending in this year is primarily due to themeasures necessitated by hurricane Lothar.  In 2001, the regular assistance was CHF 136 million and
CHF 101 million due to hurricane Lothar; in 2002, the regular assistance was CHF 166 million and
CHF 58 million due to Lothar.  Starting from 2003, the confederation plans to continuously cut
assistance to forestry down to 2/3 of the amount of 2002 by 2006.
8. Duration of the subsidy and/or any ot her deadline connected with the subsidy
This assistance is attributed on a project base.  The duration per project is normally 5 years.G/SCM/N/95/CHE
Page 7
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
The effect of the assistance programme on trade is negligible, if not non-existent (e.g. mature
trees cutting in protected forests to allow regeneration while young trees will be left in the forest
where timber transport is difficult due to rugged conditions).
PART TWO:  AGRICULTURE
I. MILK AND DAIRY PRODUCTS
A. BUTTER
1. Title of the subsidy programme
Contributions for butter.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
In order to be competitive on the domestic market of all kinds of fat the commercialisation of
certain varieties of butter is supported by a subsidy per unit sold.
4. Background and authority
(a) Agriculture Law of 29 April 1998 (SR 910.1).
(b) Two Federal ordinances of 7 December 1998 concerning measures of transition
(SR 916.350.3: Transition ordinance milk) and price support (SR 916.350.2: Milk
price support ordinance).
5. Form of the subsidy
Subsidies consist of government-financed cont ributions for table butter, for cooking butter
and re-solidified butter.  The total for these contributions amounts to CHF 104.3 million for 2001 and
CHF 92.9 million for 2002.
The Federal Office for Agriculture pays out all these contributions.
6. How the subsidy is granted and to whom
The price-reduction contributions are granted to manufacturers (amount per unit) and are paid
monthly.
7. Amount of the subsidy per unit
Butter subsidies vary as follows according to packing (cooking butter) and utilisation (re-
solidified butter).G/SCM/N/95/CHE
Page 8
(CHF per kg)
Year Choice butter Cooking butter Re-solidified butter
1.1.2001 – 30.4.2001
1.5.2001 – 30.4.20021.27
00.71 – 2.25
1.75 – 3.294.66 – 7.92
3.49 – 5.92
1.5.2002 – 31.12.2002 0 1.12 – 3.16  4.84 – 7.27
2001: The average contribution granted is about CHF 2.67 per kg.
2002: The average contribution granted is about CHF 2.61 per kg.
8. Duration of the subsidy
The contributions are not seasonally or otherwise limited or differentiated.  However, the
amount of the contributions will be reduced regularly in the future.  The total amount paid concerns
the accounting years.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Production, trade and consumption (in tonnes)
Year Production Imports Consumption and exports
incorporated in processed
products
2001 34,024 5,529 40,651
2002 31,543 1,982 43,519
B. SKIMMED MILK AND POWDER
1. Title of the subsidy programme
Contributions for skimmed milk and skimmed milk powder.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
Milk price support.
4. Background and authority
(a) Agriculture Law of 29 April 1998 (SR 910.1).
(b) Two Federal ordinances of 7 December 1998 concerning measures of transition
(SR 916.350.3: Transition ordinance milk) and price support (SR 916.350.2: Milk
price support ordinance).G/SCM/N/95/CHE
Page 9
5. Form of the subsidy
Subsidies consist of government-financed contributions for skimmed milk and skimmed milk
powder.  The total for this contributions amounts to CHF 35.0 million for 2001 and 38.9 million for
2002.
The Federal Office for Agriculture pays all these contributions.
6. How the subsidy is granted and to whom
The beneficiaries are breeders who use skimmed milk or manufacturers of special products
such as acid casein, caseinates or milk substitutes and are paid monthly.
7. Amount of the subsidy per unit
Skimmed milk:
1.1.2001 to 30.4.2001: from CHF 0.12 to 0.15 per kg.
1.5.2001 to 30.4.2002: from CHF 0.12 to 0.14 per kg.
1.5.2002 to 31.12.2002: from CHF 0.08 to 0.115 per kg.
Skimmed milk powder:
1.1.2001 to 30.4.2002: CHF 1.00 per kg.
1.5.2002 to 31.12.2002: CHF 0.88 per kg.
8. Duration of the subsidy
The contributions are not seasonally or otherwise limited or differentiated.  However, the
amount of the contributions will be reduced regularly in the future due to the adopted new milk
policy.  The total amount paid concerns the accounting year.
9. Statistical data enabling the effects of th e subsidy on trade to be assessed (in tonnes)
Year Production of processed skimmed
milkProduction of processed skimmed
milk powder
2001 152,950 6,600
2002 216,628 6,755
C. CHEESE FOR DOMESTIC CONSUMPTION
1. Title of the subsidy programme
Special price reduction for some soft and semi-hard cheeses.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
To enable the cheese manufacturer to pay a decent milk price to the farmer and at the same
time to offer his cheese at a competitive price to the reseller.G/SCM/N/95/CHE
Page 10
4. Background and authority
(a) Agriculture Law of 29 April 1998 (SR 910.1).
(b) Two Federal ordinances of 7 December 1998 concerning measures of transition
(SR 916.350.3: Transition ordinance milk) and price support (SR 916.350.2: Milk
price support ordinance).
5. Form of the subsidy
There are some soft and semi-hard cheeses, which get a contribution per kilo when sold in
Switzerland.  The total for this contribution amounts to CHF 8.6 million  for 2001 and 1.4 million for
2002.
All these contributions are paid by the Federal Office for Agriculture.
6. How the subsidy is granted and to whom
Subsidies are granted to the cheese manufacturers as a price reduction per kg of cheese.
7. Amount of the subsidy per unit
1.1.2001 to 30.4.2001: from CHF 0.7 to CHF 1.5 per kg.
1.5.2001 to 30.4.2002: CHF 0.5per kg.
From 1.5.2002: CHF 0.0 per kg.
8. Duration of the subsidy
The accounting year.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Year Total Production
(tonnes)Of which subsidies for domestic
consumption (tonnes)
2001 172,218 11,763
2002 160,403 2,809
D. CHEESE FOR EXPORT
1. Title of the subsidy programme
Export contribution for cheese.
2. Period covered
2001-2002.G/SCM/N/95/CHE
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3. General goal and/or purpose of the subsidy
To enable the cheese manufacturer to pay a decent milk price to the farmer and at the same
time to offer his cheese at a competitive price to the reseller.
4. Background and authority
(a) Agriculture Law of 29 April 1998 (SR 910.1).
(b) Two Federal ordinances of 7 December 1998 concerning measures of transition
(SR 916.350.3: Transition ordinance milk) and price support (SR 916.350.2: Milk
price support ordinance).
5. Form of the subsidy
The subsidy consists of a specific contribution for each kilo of cheese sold abroad.  The total
for this contribution amounts to CHF 94.8 million for 2001 and 45.3 million for 2002.
All these contributions are paid out by the Federal Office for Agriculture.
6. How the subsidy is granted and to whom
Subsidies are granted to the cheese dealers as a price reduction per kg of exported cheese.
7. Amount of the subsidy per unit
1.1.2001 to 30.6.2001: from CHF 0.3 to CHF 5.30per kg.
1.7.2001 to 30.4.2002: from CHF 0.6 to CHF 2.80per kg.
1.5.2002 to 31.12.2002: from CHF 0.60 to CHF 1.80 per kg.
8. Duration of the subsidy
The accounting year.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Year Total Production
(tonnes)Of which subsidies for exports
(tonnes)
2001 172,218 45,176
2002 160,403 35,100
E. OTHER DAIRY PRODUCTS
1. Title of the subsidy programme
Export subsidy for other dairy products.
2. Period covered
2001 - 2002G/SCM/N/95/CHE
Page 12
3. General goal and/or purpose of the subsidy
The subsidy is aimed at safeguarding traditional exports of other dairy products.  It is paid on
the basis of the quantity of milk used to manufacture those products.
4. Background and authority
(a) Agriculture Law of 29 April 1998 (SR 910.1).
(b) Two Federal ordinances of 7 December 1998 concerning measures of transition
(SR 916.350.3: Transition ordinance milk) and price support (SR 916.350.2: Milk
price support ordinance).
5. Form of the subsidy
Payment to exporters of other dairy products.
All these contributions are paid out by the Federal Office for Agriculture.
6. How the subsidy is granted and to whom
Payment to exporters of other dairy products on the basis of the quantity of whole milk used
to manufacture those products.  The total for this contribution comes to CHF 9.9 million for 2001 and
31.3 million for 2002.
7. Amount of the subsidy per unit
There is an export contribution of
1.1.2001 to 30.4.2001: CHF 0.40
1.5.2001 to 30.4.2002: CHF 0.381.5.2002 to 31.12.2002: CHF 0.31
per kg of milk that is used in manufacturing the following dairy products:
(a) Cream.
(b) Skimmed milk powder and milk powder.
(c) Yoghurt, flavoured or containing added fruit, nuts or cocoa.
(d) Other dairy products.
8. Duration of the subsidy
The accounting year.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
The following figures represent the subsidised amounts for the different products:G/SCM/N/95/CHE
Page 13
Product Tonnes
Cream 996
Skimmed milk powder and milk powder 2,739
Yoghurt, flavoured or containing added fruit, nuts or
cocoa4,279 2001
Other dairy products 981
Cream 777
Skimmed milk powder and milk powder 15,906
Yoghurt, flavoured or containing added fruit, nuts or
cocoa3,762 2002
Other dairy products 2,601
II. BREEDING AND DAIRY CATTLE
1. Title of the subsidy programme
Export subsidies.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
The Federal Council takes measures to maintain domestic production of breeding and dairy
cattle in the mountain area.
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
Contributions (grants).
6. How the subsidy is granted and to whom
Subsidies are granted in order to bring the prices of exported livestock into line with those
charged in traditional export markets.  These contributions consist of a fixed base amount and a
variable amount depending on the quality of the animal;  they are paid up to a fixed maximum.G/SCM/N/95/CHE
Page 14
7. Amount of the subsidy per head
  Total (in thousands of CHF)
2001
Export subsidies 0.010
2002
Export subsidies 2.560
Per unit (as an average, CHF per livestock unit)
2001
Export subsidies 1,200
2002
Export subsidies 1,450
8. Duration of the subsidy
Export subsidies have been applied since 1954.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
The export bonuses have made it possible to maintain traditional exports of cattle, mainly in
the interests of breeding in mountain areas.
10. Production and exports of breeding and dairy cattle
(Head)
Year Stock calves up to one year
(breeding animals)Exports of heifers, cows and
bulls
2001 250,000 8
2002 250,00022,038
Switzerland imported 185 dairy cattle in 2001/2002
III. HORSES
1. Title of the subsidy programme
Export subsidies.
2. Period covered
2001-2002.
                                                     
2Estimate .G/SCM/N/95/CHE
Page 15
3. General goal and/or purpose of the subsidy
The Federal Council takes measures designed to maintain domestic horse breeding for the
needs of agriculture.  These measures apply to horses of all breeds born in Switzerland.
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
A Federal financial export aid is paid to horse-breeders for exports of horses of the breeds
encouraged by the Confederation.  Total export subsidies in 2001 amounted to CHF 219,300 and
CHF 220,700 in 2002.
6. How the subsidy is granted and to whom
The subsidy is granted to breeders who export.
7. Duration of the subsidy
The subsidy has been in force since 1960.
8. Statistical data
Numbers and Trade3
(Head)
Year Horse numbers Imports Exports
2001 50,000 2,912 822
2002 50,000 2,959 824
Most exports are not subsidised (subsidies cover about  160 head per year).
IV. WOOL
1. Title of the subsidy programme
Purchase of domestic wool.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
There are at present some 440,000 head of sheep, the great majority of which are in mountain
areas.  The subsidy enables the Swiss wool indust ry to purchase domestic wool, while at the same
time it guarantees to producers a contribution to their production costs.
                                                     
3Enumeration is carried out in April of each year.  Horses intended for slaughter are not included.G/SCM/N/95/CHE
Page 16
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
The Domestic Wool Board (CLI), a subsidiary of the Swiss Sheep Farmers' Federation,
purchases domestic wool from the producers.  The price received by the producer comprises a Federal
contribution fixed by the Department of Public Economy at an amount varying with the pricesobtained by the Board when reselling in the market.  The Confederation reimburses CLI for any losses
resulting from its operations up to a maximum amount of CHF 200,000 a year.
The Confederation allocates an annual contribution of CHF 0.8 million.
The subsidy is in the form of price support, based on the difference between the price fixed by
the Federal Council and the market price, and of reimbursement of the losses incurred by the CLI inpurchasing the wool.  This reimbursement is intended to cover the price difference mentioned and the
variable amount granted by the CLI.
6. How the subsidy is granted and to whom
The greater part of the subsidy is granted to the producer through the price paid by the CLI.
The rest goes to cover the CLI deficit.
7. Amount of the subsidy per unit
Year Total (thousands of CH F) Per unit (CHF per tonne)
2001 0.8 2.0
2002 0.8 2.0
8. Duration of the subsidy
The subsidy was introduced in 1962.  It is provided in two instalments per year.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
(in tonnes)
Year Production Imports Exports
2001 450 920 481
2002 420 759 541
V. EGGS
1. Title of the subsidy programme
Price equalisation fund for eggs and egg products.G/SCM/N/95/CHE
Page 17
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
The purpose of the subsidy is to promote the disposal of domestic eggs.
4. Background and authority
(a) Agriculture Law of 29 April 1998 (SR 910.1).
(b) Federal Ordinance of 7 December 1998 concerning the egg market.  (SR 916.371:
Egg ordinance ).
5. Form of the subsidy
Contributions (grants).
6. How the subsidy is granted and to whom
The price equalisation fund for eggs and egg products is financed solely from a share of the
special-purpose customs duties levied on imports of eggs and egg products.  It covers the expenses of
the bodies responsible for the collection, transport and distribution of domestic eggs intended for
importers required to take them (imports under the tariff quota alone).  It also can make grants forother measures designed to facilitate the disposal of domestic eggs (crack eggs and price reductions).
No more collecting and sorting contributions were paid as from 2002.
7. Amount of the subsidy
Year Total amount (millions of CHF)
2001 3.3
2002 0
8. Duration of the subsidy
Payments are made usually on a monthly basis during a calendar year.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Production, trade and consumption of eggs in shell (millions of eggs).
Year Production Imports Consumption
2001 680 422 898
2002 680 425 898
Exports are negligible.G/SCM/N/95/CHE
Page 18
VI. FEED GRAINS
1. Title of the subsidy programme
Bonuses to promote the growing of feed grains, except maize, and seed legumes.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
Growing premiums for feed grains are one of the measures designed to safeguard peasant
income and food security.
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
Payment to the producer (grant).
6. How the subsidy is granted and to whom
Crop bonuses proportionate to the area under cultivation are allocated to domestic producers
of oats, triticale, barley, einkorn, emmer, high-protein peas and field beans.
The bonuses are allocated annually in the Confederation budget.
7. Amount of the subsidy per unit
In 2001 and 2002 the following amounts were paid per hectare (in CHF):
Barley, triticale, oats, einkorn and emmer 0
Field beans and high-protein peas 1,2602001
Fibre plant 2,000
Barley, triticale, oats, einkorn and emmer 0
Field beans and high-protein peas 1,5002002
Fibre plant 2,000
The growing bonuses per hectare were paid in 2000 regardless of surface area.
8. Duration of the subsidy
The measure was introduced in 1951.G/SCM/N/95/CHE
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9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Production, trade and consumption
(not allowing for fluctuations in stocks)
Barley, oats, triticale, field beans, high-protein peas
Year Production
(thousands of tonnes)Imports
(thousands of tonnes)Consumption
(thousands of tonnes)
2001 348 109 457
2002 375 126 501
VII. OIL-SEEDS
1. Title of the subsidy programme
Bonuses to promote the growing of oilseeds and price support.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
The measures taken to promote arable farming are aimed at keeping a minimum area under
oil-seeds both for biological reasons linked to the need for a certain crop diversification and for
reasons of food security.
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
For oilseeds, there are three different types of subsidies:
(a) Payment to the producer (grant).
(b) Payment to the oil-processing plants for human consumption
(c) Payment to the oil processing plants for technical use
6. How the subsidy is granted and to whom
The following subsidies are granted for rapeseed, sunflowerseed and soybeans.
(a) Crop bonuses proportionate to the area under cultivation are allocated to domestic
producers.G/SCM/N/95/CHE
Page 20
For the year 2001
(b) Payment to the oil processors plants for human consumption.  The amount per tonne
(seeds or beans) is equal to the difference between the import duties for oilseeds
depending on the two types of processing (Crushing with or without “Extraction”).
The amount is fluctuating during the year because of the threshold price system for
oilseed meals.  It varies from 60 to 90 CHF per tonne.
(c) Payment to the oil processing plants for technical use.  The current amount per tonne
was fixed at 200 CHF per tonne.
(b) and (c) are payments to the oil processors in order to increase prices to the producers for
domestic crops.
For the year 2002
Since 2002, the performance order between the Federal Office of Agriculture and the sector
organisation “swissgranum” is in force.  The sector organisation is given a certain sum in
order to maintain an appropriate production and processing of oilseeds.  This amount of
money is administered independently, but in agreement with all partners
The performance order includes the processing for food purposes and technical use.  The
supporting level of the individual species adjusts the output to the market needs.
In 2001, neither the area nor the quantities of the eligible oilseeds were restricted.
Since 2002, the allowance within the performance order is the limiting factor for domestic
production and processing oilseeds.
7. Annual amount of the subsidy
Support measures Millions of CHF
2001 2002
(a) Payment to the producer (1,500 per hectare) Rapeseed,
sunflower seed
and soyabeans27.2 32.2
Rapeseed
Sunflower seed(b) Payment to the oil-processing plants for human
consumption
Soya beans
(c) Payment to the oil processing plants for technical
useRapeseed4.8
Performance order sector organisation 8.5
Total amount Oilseeds 32 40.7
8. Statistical data enabling the effects of  the subsidy on trade to be assessed
The subsidy has made it possible to keep a minimum area under oil-seeds.  Domestic
production is equivalent on average to 20-25 per cent of Swiss consumption of vegetable oils and fats.G/SCM/N/95/CHE
Page 21
Production, trade and consumption
(in tonnes)
Year Production Import Oil exports
Rapeseed 39,400 6,321 127
Soya beans 1,200 53,855 137 2001
Sunflower seed 11,700 7791 478
Rapeseed 47,600 - 369
Soya beans 4,500 42,398 119 2002
Sunflower seed 15,500 8,202 594
VIII.  SUGAR BEET
1. Title of the subsidy programme
Transformation mandate for sugar refineries.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
The two sugar factories are committed to produce within 120,000 to 185,000 tons of sugar
from domestic sugar beet.  Additionally, these two factories can produce 2,000 tons of sugarprocessed from organic farming sugar beet.  In order to fulfil this mandate, they obtain a fixed
allowance of the Federal Government.
4. Background and authority
Art. 54 of the Agricultural Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
Fixed allowance for the production of sugar.
6. How the subsidy is granted and to whom
The fixed allowance is paid to the sugar factories.  If, after deduction of customs duty at the
border, the average price of sugar is outside of the fork from 35 to 45 CHF/dt, the surplus or deficit is
taken into account for the determination of the co mpensation in the following period.  In addition the
following conditions apply to the factories:
(a) They contract with the producer organizations the quantity necessary of sugar beets
and the criteria of distribution among various producers.
(b) They contract with the producers’ organizations the price and other conditions.G/SCM/N/95/CHE
Page 22
(c) They sell at market prices manufactured sugar and the by-products resulting from the
transformation of sugar beets.
(d) They organize the processing at reduced cost
The payments are made against the budget of the Confederation for the following year.
7. Amount of the subsidy per unit
Year Total (thousands of CHF) CHF per 100 kg. of domestic
refined sugar
2001 45,000 27
2002 45,000 20
8. Duration of the subsidy
The subsidy is paid for a period of 4 years (1 October 1999 – 30 September 2003)
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Production, trade and consumption of sugar (in tonnes)
Year Production Imports4Exports5
2001 163,578 168,9927 7,888
2002 221,865 207,051 2,533
IX. POTATOES
1. Title of the subsidy programme
Price support.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
The potato culture must be maintained to ensure food security.
At the time of good climatic conditions, oversupply negatively impacts producers’ revenues.
In this case, the subsidies are used to promote the use of potatoes for human consumption or feed.
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
                                                     
4 Customs tariff headings:1701.1100/1200/9100/9900/9991/9999.
5 Id.G/SCM/N/95/CHE
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5. Form of the subsidy
The subsidies take the following forms:
Use of potatoes: subsidies for feed purposes (fresh potatoes), storage of table potatoes,
transformation (dehydration) into feed products, as well as with export of seed of potatoes and ofdifferent potato products.
6. How the subsidy is granted and to whom
The types of subsidies are the following:
The Confederation mandates the interested organizations to carry out development measures
for potatoes, which cannot be sold on the market and grants subsidies for that purpose.  TheConfederation takes other measures to ensure use of the potatoes harvest.  The subsidies and the other
measures must aim at the adaptation of the potatoes production to the market potential.
The export subsidies are paid directly to the exporters of potato products.
Year Millions CHF CHF / tons
1. Mandate for the use of potatoes 18.0 191
2. Mandate for the use of seed potatoes 1.8 407
3. Export of potato products 1.0 1802001
4. Seed potato exports 0.8 597
1. Mandate for the use of potatoes 18.0 170
2. Mandate for the use of seed potatoes 1.8 416
3. Export of potato products 1.0 1802002
4. Seed potato exports 0.8 525
7. Amount of the subsidy
Utilisation of potatoes
(in thousands of CHF)
Year Total expenses
2001 21.6
2002 21.6
Amount per unit
(CHF per tonne)
Year Utilization of surpluses
2001 204
2000 184G/SCM/N/95/CHE
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8. Duration of the subsidy
Subsidies for the use of the 2000 campaign.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Production, trade and consumption
(potatoes for human consumption, seed and fodder potatoes).
(in thousands of tonnes)
Year Harvest Imports Exports Part of harvest intended for domestic
human consumption
2001 518,000 22,996 1,545 303
2002 527,100 26,710 1,560 310
X. FRUIT
1. Title of the subsidy programme
Valorisation of domestic production.
2. Period covered
2001-2002.
3. General goal and/or purpose of the subsidy
The purpose of the subsidy is to offer products at a competitive price within the scope of the
promotion of rural development.  Other measures in this sector are aimed at preventing a collapse in
the prices of domestic products.
4. Background and authority
Agriculture Law of 29 April 1998 (SR 910.1).
5. Form of the subsidy
The subsidies are granted in different ways according to their nature:
Subsidies to promote the utilization of surpluses.  These are primarily intended for
manufacturers of concentrated fruit juice to cover the additional costs resulting from the takeover of
surpluses.  In addition, subsidies are paid to exporters in order to allow for exports of surplus cherries
and certain fruit products, in particular pip-fruit juice concentrates to traditional markets.  The
subsidies are fixed sums per unit, which are determined according to market conditions.
6. How the subsidy is granted and to whom
See replies to Question 5.G/SCM/N/95/CHE
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7. Amount of the subsidy per unit
Total amount (in millions of CHF)
Year Total
2001 16.8
2002 16.8
Amount per unit
The amounts per unit for the other measures mentioned cannot be shown because they vary
too widely with conditions and with the market situation.
8. Duration of the subsidy
For the institutionalised measures during the period covered by the notification, see the replies
to Question 5.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
The main effect of the subsidies is intended to preserve and ensure agricultural incomes.  As
per capita consumption of all forms of fruit is very high in Switzerland, domestic production of fruit
covers only about half of the country's requirements, according to the year.
Production and trade
(thousands of tonnes)
Year Production Imports
Total6Of which apples Chapter 08 Heading 0808/0809
2001 164 124 451 67
2002 195 149 442 69
The quantities of fruit exported (Chapter 08) correspond to:
2001: 3,708 tonnes
2002: 2,182 tonnes
XI. PROCESSED AGRICULTURAL PRODUCTS
1. Title of the subsidy programme
Export contributions.
2. Period covered
2001-2002.
                                                     
6 Apples, pears, quinces, cherries, plums and prunes, apricots, peaches and berries.G/SCM/N/95/CHE
Page 26
3. General goal and/or purpose of the subsidy
In order to place the Swiss foodstuffs industry on an equal footing with foreign competitors in
respect of the cost of basic agricultural commodities used in the preparation of processed products, the
Law mentioned below authorises the Government to grant contributions on exports.
4. Background and authority
The Federal Law of 13 December 1974 on the import and export of processed agricultural
products (SR: 362.111.72), which has been in force since 1 June 1976, and the Order of
18 October 1995 regulating contributions to exports of processed agricultural products
(SR: 632.111.723).
5. Form of the subsidy
The contributions are granted for the export of certain agricultural commodities (dairy
products, egg products, cereal products, sugar and molasses) where they are exported in the form of
processed food products.  They are calculated on the basis of the difference between Swiss and
foreign prices of agricultural commodities and acco rding to the quantity of agricultural commodities
used in the manufacture of the goods exported.
6. How the subsidy is granted and to whom
The contributions are paid to manufacturers after export.  Requests for contributions may
include exports made during a period of from one to twelve months.
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized
annual amount of the subsidy
The total amount of the contributions paid was: CHF 98.6 million in 2001 and
CHF 114.9 million in 20002.
Export contributions are calculated and fixed annually (and adapted periodically in the case of
major changes in Swiss or foreign representative prices) for each of the principal agricultural
commodities used by the foodstuffs industry on the basis of the difference between Swiss and foreign
representative prices.  The amount per unit of processed products also depends on the quantities of
agricultural commodities used in preparing the goods exported.
8. Duration of the subsidy and/or any ot her deadline connected with the subsidy
Export contributions have been in force since 1 June 1976.  The budget is allocated on an
annual basis from 1 January to 31 December.
9. Statistical data enabling the effects of  the subsidy on trade to be assessed
Export contributions make it possible to put Swi ss firms in the same competitive situation on
foreign markets as foreign firms as regards the costs of purchasing the principal agriculturalcommodities.
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