G/SCM/N/401/CHE  
17 July 2023 
(23-4859) Page: 1/23 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF  
THE GATT 1994 AND ARTI CLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
SWITZERLAND  
The following communication, dated  14 July 2023, is being circulated at the request of the  delegation 
of Switzerland.  
 
_______________  
 
 
  G/SCM/N/401/CHE  
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  Contents  
1  REGIONAL POLICY  ................................ ................................ ................................ ....... 3 
2  ENVIRONMENTAL POLICIES  ................................ ................................ .........................  4 
CO2-TAX REFUND TO SPECIFIC INDUSTRY SECTORS  ................................ ..............................  4 
3  FORESTRY  ................................ ................................ ................................ ....................  5 
4  ENERGY POLICY  ................................ ................................ ................................ ...........  7 
4.1  GRANTS FOR RENEWABLE ENERGY INVESTMENTS  ................................ ...........................  7 
4.2  GRANTS FOR GEOTHERMAL EXPLORATION  ................................ ................................ ...... 8 
4.3  MARKET PREMIUM FOR LARGE HYDRO POWER PLANTS  ................................ .....................  9 
5  PETROLEUM TAX REFUNDS  ................................ ................................ .........................  10 
6  AGRICULTURE  ................................ ................................ ................................ ............  11 
6.1  AGRICULTURAL POLICY  2014–2021 ................................ ................................ ..............  11 
6.2  DAIRY PRODUCTS  ................................ ................................ ................................ ...... 12 
6.3  BOVINE MEAT  ................................ ................................ ................................ ............  13 
6.4  WOOL  ................................ ................................ ................................ .......................  14 
6.5  EGGS  ................................ ................................ ................................ ........................  15 
6.6  TOBACCO  ................................ ................................ ................................ ..................  16 
6.7  PROTEIN  ................................ ................................ ................................ ...................  17 
6.8  OILSEEDS  ................................ ................................ ................................ .................  18 
6.9  SUGAR BE ET ................................ ................................ ................................ ..............  19 
6.10  SEEDS  ................................ ................................ ................................ .....................  20 
6.11  FRUIT  ................................ ................................ ................................ ......................  21 
6.12  CEREALS  ................................ ................................ ................................ .................  22 
 
  G/SCM/N/401/CHE  
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  1  REGIONAL POLICY  
1. Title of the subsidy programme  
Tax relief on the basis of  the Federal Law on Regional Policy (since 1 January  2008).  
2. Period covered  by the notifica tion 
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
Create or maintain jobs in clearly defined, structurally weak areas . These areas show a low level of 
structural, economic and social development and are mostly located in rural areas covering 10 % of 
the Swiss population . They shall be enabled to engage in value -added activities with the ultimate 
objective to reduce regional disparities . Since 1 July 2016, spatial planning considerations are taken 
into account in addition to structural weakness.  
4. Background and authority  for the subsidy  
Legal basis:  
- Art. 12 of the Federal law of 6 October  2006 on regional policy (statu s as of 
1 January  2008)  
- Ordinance of 3 June 2016 on the Granting of Tax Relief within the  Scope of Regional Policy 
(status  as of 1 July 2016) 
- Ordinance of the EAER of 3 June 2016 on the Determination of the Municipalities Falling 
Within the Areas of A pplication for Tax Relief (status  as of 1 July 2016) 
- Ordinance of the EAER of 3 June 2016 on the Granting of Tax Relief within the  Scope of 
Regional Policy (status  as of 1 July 2016) 
Authority:  
State Secretariat for Economic Affairs SECO / Federal Department of  Economic Affairs, Education 
and Research EAER.  
5. Form of the subsidy  
Partial or full tax relief granted in application of the federal law of 6 October  2006 on regional policy 
for a maximum duration of ten years . Since 1 July 2016, the tax relief is granted as an absolute 
amount (instead of a percentage).  
6. To whom and h ow the subsidy is provided  
Tax reliefs are granted to industrial  companies . The project has to create or maintain jobs in clearly 
defined, structurally weak areas (areas of application).  
7. Subsidy  per unit, or in cases  where this is not possible, the total amount or the annual amount 
budgeted for that  subsidy  
The overall volume of foregone tax on the basis of the Federal law of 6 October  2006 on regional 
policy amounts to approximately CHF 37 million  per year (average 2008 –2019). The overall volume 
of foregone tax on the basis of decisions issued after the 1 July 2016 amounts to approximately 
CHF 4 million  per year (average 2016 -2019). According to general tax law, figures are available only 
after 3 years.  
8. Duration of the subsidy  
The Federal law on regional policy of 6 October  2006 is not limited in time . 
The tax reliefs are granted for a maximum duration of ten years.  G/SCM/N/401/CHE  
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  9. Statistical data permitting an assessment of the trade effects of the subsidy  
In the period 2008 to 2021, 160 projects were granted tax relief, i.e. 10.6 projects per year on 
average.  
2  ENVIRONMENTAL POLICIES  
CO2-TAX REFUND TO SPECIFIC INDUSTRY SECTORS  
1. Title of the  subsidy  programme  
Refund of the CO2 levy (Art. 31 and Art. 32 a of Federal Act on the Reduction of CO2 Emissions 
(CO2 Act) of 2 3 December  2011 (status as of 1 January  2020).  
2. Period covered  by the notification  
2015–2022. 
3. Policy objective and/or purpose of the subsidy  
The refund of the CO2 levy aims to avoid an undesirable disadvantage of the compet itiveness of 
companies that are exposed to international competition . 
4. Background and authority  for the subsidy  
Background : 
The CO2 levy on heating and process fuels was introduced in January  2008 at an initial rate of 
CHF 12 per tonne of CO2 . It was increased to CHF 36 per tonne CO2 in January  2010, to CHF 60 per 
tonne of CO2 in January  2014, to CHF 84 per tonne of CO2 in January  2016, to CHF 96 per tonne 
CO2 in January  2018 and to CHF 120 per tonne CO2 in January  2022. The CO2 Act sets a maximum 
of the levy at CHF 120 per tonne of CO2 . 
The CO2 Act allows for exemptions (refund of the levy) from the CO2 levy for energy intensive 
industries either by participation in the Emissions Trading Scheme (ETS) or by commitments to 
emission reductions ( reduction obligation ). Furthermore, since the beginning of 2018, operators of 
fossil fuel -based combined heat and power plants (CHP plants) can  be exempted from the CO2 levy 
on fossil fuels they use for electricity production.  
- ETS: Introduced in 2008, enlarged and aligned with the EU -ETS for the period 2013 -2020 
and further developed for the trading period from 2021 . Large, greenhouse gas -intensive 
companies are required to participate in ETS, while medium -sized companies may 
voluntarily participate . The companies participating in the ETS are exempted from the CO 2 
levy. CO2 levy exemptions of mandatory ETS companies are not included in levy refunds 
listed below.  
- Reduction obligation : Companies of certain sectors that are particularly affected by the 
CO2 levy, may apply for exemption from the CO2 levy, provided the  company commits to 
emission reductions in return . The eligible sectors of the economy are referred to in 
Annex  7 of the CO2 Ordinance . For further information see:  
https://www.bafu.admin.ch/bafu/en/home/topics/climate/info -specialists/reduction -mea
sures/co2 -levy/exemption.html  
- CHP plants : Companies that operate CHP plants can be refunded the CO2 le vy on fossil 
combustible fuels that were used for electricity production . However, while 60 % of the 
refund is granted without further obligations, the remaining 40 % is refunded subject to 
investments of this amount in measures to increase energy efficiency . For further 
information see:  
https://www.bafu.admin.ch/bafu/en/home/topics/climate/info -specialists/reduction -mea
sures/co2 -levy/e xemption.html  → Exemption from the CO2 levy for CHP plants  G/SCM/N/401/CHE  
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  Legal basis : 
- Federal Act on the Reduction of CO2 Emissions (CO2 Act) of 2 3 December  2011 (status 
as of 1 January  2022).  https://www.fedlex.admin.ch  → 641.71  
- Ordinance for the Reduction of CO2 Emissions CO2 Ordinance) of 3 0 November  2012 
(status as of 1 5 February  2023). https://www.fedlex.admin.ch  → 641.711  
Authority : 
- Federal Office for the Environment FOEN / Federal Department of the Environment, 
Transport, Energy and Communications DETEC  
- Federal Office for Customs and Bord er Security / Federal Department of Finance FDF  
5. Form of the subsidy  
Refund of CO2 levy . 
6. To whom and h ow the subsidy is provided  
Reduction obligation : The refund of the CO2 levy is granted only to companies covering an activity 
referred to in Annex 7 of the CO2 Ordinance . Eligible companies have to commit to reducing 
greenhouse gas emissions on the basis of a fixed emissions reduction target . Small companies also 
have the possibility to set a target solely based on effective emissions reductions measures . If a 
company fails to fulfil its target, a sanction of CHF 125 for each excess tonne CO2eq emitted has to 
be paid and an emission reduction certificate  or, from 2022, an emission allowance  for each excess 
tonne has to be surrendered.  
CHP plants : The refund of  the CO2 levy is granted only to companies that operate plants with a rated 
thermal input of 0.5 to 20 MW . When a company does not fulfil its investment requirement on time, 
the FOEN will order the company to pay back 40 % of the refunded CO2 levy on fossil combustible 
fuels that were used for electricity production.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
The CO2 levy that was refunded by the  Federal Office for Customs and Border Security  to exempted 
companies (without mandatory EHS) was 97 CHF  million  in 2015 (1.618 mio t CO2 * 60 CHF / t  
CO2), 139 CHF  million  in 2016 (1.655 mio t CO2 * 84 CHF / t CO2), CHF 141 million  in 2017 
(1.674  mio t CO 2 * 84 CHF / t CO2), CHF 158 million  in 2018 (1.649 mio t CO2 * 96 CHF / t CO2) . 
CHF 163 million  in 2019 (1.695 mio t CO2 * 96 CHF / t CO2) , CHF 157 million  in 2020 (1.638 mio 
t CO2 * 96 CHF / t CO2)  and 153  million  in 2021 (1.591 mio t CO2 * 96 CHF / t CO 2). Data on the 
amount of refunds in 202 2 is not yet available.  
8. Duration of the subsidy  
Even if the total revision of the CO 2 Act was rejected by the people in the referendum vote on 
13 June 2021, companies with a reduction obligation will remain exempt fr om the CO 2 levy. The 
legal basis for this was created in the CO 2 Act, which regulate the reduction obligation until the end 
of 2024.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Statistical data indicating trade effects is not available.  
3  FORESTRY  
1. Title of the subsidy programme  
New system of fiscal equalization and division of tasks (NFE) between the federal government and 
the cantons.  
2. Period covered  by the notification  
2021–2022. G/SCM/N/401/CHE  
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  3. Policy objective and/or purpose of the subsidy  
Compensation to forest owners for services rendered to the public . Subsidies are paid in accordance 
with the Federal Act on Forests (ForA) . The principles of this financing system are indicated in 
Art. 35 ForA.  
4. Background and authority for the subs idy 
Federal Act on Forests (1991) [SR 921].  
https://www.fedlex.admin.ch/eli/cc/1992/2521_2521_2521/en  
Federal Ordinance on Forests [SR 921.01].  
https://www.fedlex.admin.ch/eli/cc/1992/2538_2538_2538/en  
5. Form of the subsidy  
Since 2008 the new system of fiscal equalization and division of tasks (NF E) is in force . This system 
also concerns the assistance in the field of forestry . Assistance is allocated in the form of indemnities 
and financial assistance.  
6. To whom and h ow the subsidy is provided  
The federal government and the cantons mainly provide co mprehensive subsidies that favour the 
categories Protection Forest, Forest Biodiversity and Forest Management . Generally the contributions 
from the cantons are as least as high as those from the federal government . However, the cantons 
vary greatly in the requirements they have for their forests and what kinds of forest they have . 
These differences mean that the cantons also vary greatly in how they distribute their contributions 
across the categories . With the NFE the federal government introduced four -year long programme 
agreements between the federal government and the cantons . The subsidies paid by the federal 
government and the cantons are managed by the cantons to achieve the common defined goals 
within the programme . The programme f orest for the period 2020 -2024 includes the 
sub-programmes protection forest, forest biodiversity and forest management.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
In 20 21, the Confederation was engaged in programs amounting to CHF 181.7 million; i n 202 2, it 
was CHF 182.7 million. T he components of the federal contributions are : programme forest with the 
sub-programmes forest protection, forest biodiversity, forest management as well as protection 
against natural hazards, investment forest credits and diverse.  
Budget item  Account 20 21 
(CHF  million ) Account 202 23 
(CHF  million ) 
Protection Forests  87.9 86.6 
Forest Biodiversity  24.4 23.0 
Forest Management  25.9 28.7 
Natural Hazards Protection  37.4 37.3 
Various Components  6.1 5.1 
Forestry Investment Loans  0.0 2.0 
Total  181.71, 2 182.71, 2 
1 Figures are rounded, rounding differences are possible.  
2 On behalf of the Parliament, the performance -related contributions for the programme forest were 
temporarily increased by CHF 25 million  annually for the years 2021 -2024 (implementation of motion 20.3745, 
Ensuring the sustainable care and use of the fores t). 
3 Estimation, the final values will be available by end of August 2023 . G/SCM/N/401/CHE  
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  8. Duration of the subsidy  
Starting 2008, four -year programmes (2008 -2011; 2012-2015; 2016-2019) were introduced . The 
current period is exceptionally a five -year period (2020 -2024).  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
The effect of the assistance programme on trade is negligible, if not non -existent.  
4  ENERGY POLICY  
4.1  GRANTS FOR RENEWABLE ENERGY INVESTMENTS  
1. Title of the subsidy programme  
Investment grants for photovoltaic, hydropower and biomass plants (Energy Act; SR 730.0 ). 
2. Period covered  by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
Investment grants are an instrument that was developed by the Confederation for the purpose of 
encouraging renewable energy production.  
4. Background and authority for the subsid y 
Legal Basis : Articles  25 to 27 of the Energy Act, dated 3 0 September  2016 (SR 730.0 ) 
Authority : Swiss Federal Office of Energy (bfe.admin.ch)  
Implementing A gency of grants for photovoltaic systems : Pronovo (pronovo.ch)  
5. Form of the subsidy  
The grants are investment subsidies that cover a limited part of the investment costs of eligible 
projects:  
• Photovoltaic systems : max. 30 % of the investment costs.  
• Large hyd ro power plants : max. 35 % of eligible investment costs for new plants and 
substantial extensions, max. 20 % for substantial refurbishment, max. 40 % for new plants 
and substantial extensions with thanks to storage increase production of at least 10 GWh.  
• Small hydro power plants : max. 60 % of eligible investment costs for substantial 
enlargement, max. 40 % for substantial refurbishment.  
• Biomass plants : max. 20 % of eligible investment costs.  
6. To whom and h ow the subsidy is provided  
The grants are provided to opera tors of new or significantly expanded or upgraded plants upon 
request and subject to available funds.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Total amount of the subsidy : 
Photovoltaic systems:  
2021: 370 Mio CHF  
2022: 270 Mio CHF  G/SCM/N/401/CHE  
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  Hydropower plants:  
2021: 45 Mio CHF  
2022: 0 Mio CHF  
Biomass plants:  
2021: 0 Mio CHF  
2022: 0,5 Mio CHF  
8. Duration of the subsidy  
The grant scheme is limited in time and expires at the end of 2030.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
The programme has no or very limited effects on trade . Statistical data assessing such trade effects 
is not available.  
4.2  GRANTS FOR GEOTHERMAL EXPLORATION  
1. Title of the subsidy prog ramme  
Investment grants for geothermal exploration (Energy Act; SR 730.0 ). 
2. Period covered  by the notification  
2021–2022. 
3. Policy objective and/or purpose of the subsidy  
Increase electricity production from renewable energy sources to reach the goals defined in the 
Swiss Energy Act . Financial contributions for geothermal exploration activities that result in proving 
the presence of a  geothermal reservoir suitable for power production.  
4. Background and authority for the subsid y 
Legal Basis : Article 33 of the Energy Act, dated 3 0 September  2016 (Energy Act; SR 730.0 ), and 
entered into force on 1 January  2018. 
Authority : Swiss Federal Office of Energy (bfe.admin.ch)  
5. Form of the subsidy  
Investment grants are defined as a given percentage of the eligible investments . Eligible costs are 
costs associated with finding and assessing a geothermal resource for subsequent power production, 
including prospecting expenditures, and expenditures related to construction and reclamation of well 
pads; drilling, completi ons, logging and testing of wells ; well stimulation and subsurface monitoring.  
6. To whom and h ow the subsidy is provided  
Contributions may firstly be granted for surface prospecting activities with the goal of defining 
surface locations of wells and their pa ths to subsurface target points.  
Second, and after prospecting activities have been successfully completed, contributions may be 
granted for drilling wells and associated activities that prove that a targeted potential reservoir exists 
and is suitable for power generation.  
The investment grants may amount to at most 60 % of the eligible cost and are subject to availability 
of funds.  G/SCM/N/401/CHE  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Total amount of the subsidy : 
2021: 0 Mio CHF  
2022: 6 Mio CHF  
8. Duration of the subsidy  
The grant scheme was introduced on 1 . January  2018. It is limited in time and expires at the end of 
2030.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
The programme has no or very limited effects on trade . Statistical data assessing such trade effects 
is not available.  
4.3  MARKET PREMIUM FOR LARGE HYDRO POWER PLANTS  
1. Title of the subsidy programme  
Market premium for electricity from large hydropower plants (Energy Act; SR 730.0 ). 
2. Period covered  by the notification  
2021–2022. 
3. Policy objective and/or purpose of the subsidy  
The Market Premium is granted for electricity from hydropower plants of more than 10 MW, which 
is sold at a market price below its production cost . This scheme covers economic losses incurred by 
operators in o rder to promote the continuous production of electricity from renewable energy 
sources.  
4. Background and authority for the subsid y 
Background : Since 2008, numerous hydropower operators have been unable to produce adequate 
returns on capital that led to a cur tailment in maintenance and new investment.  
Legal Basis : Energy Act, dated 3 0 September  2016 and entered into force on 1 January  2018 
(Energy Act; SR 730.0 ), Article 88 f of the Ordinance on the promotion of energy ( SR 730.03 ). 
Authority : Swiss Federal Office of Energy  
5. Form of the subsidy  
Hydro power plants that sell electricity below production costs at the wholesale market are entitled 
to apply for a market premium of maximal 1 Swiss cent/kWh . Sales to captive customers, to which 
costs can be fully passed on, are exclude d from this support scheme (Art. 31 Energy Act).  
In order to calculate the profitability of a hydro power plant the Swiss Federal Office of Energy 
(SFOE) published a guideline on allowable costs of generation and a detailed application form 
together with o ther implementation documents.  
6. To whom and h ow the subsidy is provided  
The potential beneficiary must fill in a detailed application form by May 31. The Swiss Federal Office 
examines all the applications with a commissioned external inspection body and dec ides on the 
amount of the subsidy granted.  G/SCM/N/401/CHE  
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  The beneficiaries are those who carry the losses, i.e. the plant operator, the plant owner(s), or 
contractually obligated off takers (retailers).  
7. Subsidy per unit, or in cases where this is not possible, the total  amount or the annual amount 
budgeted for that subsidy  
The price premium is capped at maximum 1 Swiss cent/kWh for loss -making power sales if 
applications do not exceed available funds ; otherwise, the price premium per kWh will be lower.  
Total amount of the subsidy : 
2021: 155 Mio CHF  
2022: 26 Mio CHF  
8. Duration of the subsidy  
The duration of the instrument lasts from 2018 to 2022 . Each year, potential beneficiaries need to 
apply for the premium until May 31 based on their financial statements of the previou s financial 
year. 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Statistical data permitting an assessment of the trade effects is not available.  
5  PETROLEUM TAX REFUNDS  
1. Title of the subsidy programme  
Mineral oil tax refund for specific intended use . 
2. Period covered by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
Tax relief for mineral oil tax is granted based on the following objectives among others:  
- In the areas of agriculture and forestr y, natural stone quarrying and commercial fishing, 
the objective is to reduce production costs for these sectors.  
- The licensed transport companies must provide legally regulated services that are in the 
public interest . This is why they are exempted from f iscal levies.  
- Regarding winter tourism, the objective is to improve the framework conditions by the 
refunds to operators of slope maintenance vehicles.  
4. Background and authority for the subsidy  
Mineral oil tax is a special consumption tax, which since 1997 has been levied by the Swiss 
Confederation on petroleum, other mineral oils, natural gas, their processed products and fuel . In 
addition to mineral oil tax, a mineral oil surtax is also levied on fuel.  
Goods may, depending on their use, be subject to diffe ring tax rates . On the one hand, the tax tariff 
in Annex 1 to the Mineral Oil Tax Act (SR 641.61) makes the distinction between goods which are 
used as fuels and goods which are used in other applications . On the other hand, the tariff of the 
tax reduction s in the Annex to the Federal Department of Finance (FDF) Ordinance on Tax Reductions 
for Mineral Oil Tax (SR 641.612) contains reduced tax rates for certain uses.  
The Federal Office for Customs and Border Security is responsible for the enforcement of min eral oil 
tax legislation and thereby the granting of tax relief.  G/SCM/N/401/CHE  
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  5. Form of the subsidy  
Tax relief which is granted in the form of refunds of the difference between the normal and reduced 
tax rate.  
6. To whom and how the subsidy is provided  
If fuels (petrol, diesel, natural gas, etc.) are used for one of the tax -privileged purposes listed below, 
after they have been consumed, the refund of the difference between the normal and reduced tax 
rate can be claimed.  
- Journeys of public transport companies;  
- Operation of slope maintenance vehicles;  
- Agriculture and Forestry;  
- Natural stone quarrying;  
- Commercial fisheries;  
- Certain stationary applications (among others powering of stationary electricity generation 
installations).  
7. Subsidy per unit, or in cases wher e this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Tax relief amounting to CHF 137.4 million  in 2021 and CHF 197.4 million  in 202 2 was granted by 
the Federal Office for Customs and Border Security.  
8. Duration of the subsi dy 
With the exception of the refund of the mineral oil tax to natural stone quarrying (since 2007) and 
to operators of slope maintenance vehicles (since 2016), tax relief has been in existence since 
mineral oil tax was introduced in 1997 . It is not limited  in time.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Statistical data permitting an assessment of the trade effects is not available.  
6  AGRICULTURE  
6.1  AGRICULTURAL POL ICY 2014–2021  
1. Title of the subsidy programme  
Agricultural p olicy 2014 –2021 (AP 14 -21) – direct payments . 
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
The policy objective aims at:  
• the reliable provision of the population with foodstuffs  
• the conservation of natural resources and the upkeep of the countryside  
• decentralised population settlement of the country  
4. Background and authority  for the subsidy  
a. Federal Law on Agriculture of 2 9 April 1998 (SR 910.1)  
b. Federal Ordinance of 2 3 October  2013 concerning direct pa yments (SR 910.13 direct 
payments ordinance)  G/SCM/N/401/CHE  
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  5. Form of the subsidy  
The new direct payment system comprises seven categories of payments, each targeted to a specific 
policy objective, with a total of 24 measures (202 2). The payments are distributed in the form of 
grants.  
6. To whom and h ow the subsidy is provided  
Payments are granted to agricultural producers.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
General Summary of expenditure  under the direct payment scheme1: 
 2021 
(mio . CHF) 2022 
(mio . CHF) 
Payments for ensuring food security  1'074.7 1'074.5 
Farmland payments  526.0  522.9 
Payments for production systems  499.7 506.6 
Biodiversity payments  433.5 441.8 
Payments for landscape quality  146.4 146.8 
Resource efficiency payments  69.4 65.1 
Transitional payments  61.5 53.2 
 
8. Duration of the subsidy  
Payments will be in place until a new Agricultural Policy comes into force.  
6.2  DAIRY PRODUCTS  
1. Title of the subsidy programme  
Three types of supplements are in place : supplement for milk converted into cheese, supplement 
for non -silage feed and supplement for marketed milk.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
The purpose of the supplement for milk converted into cheese is to encourage milk farmers to give 
added -value to the milk . Similarly, the supplement for marketed milk is to increase the added value 
by encouraging the milk supply to the food industr y. The purpose of the supplement for non -silage 
feed is to encourage the use of grass as a more ecological and more expensive fodder in milk 
production.  
4. Background and authority  for the subsidy  
Federal Act on Agriculture dated 2 9 April 1998 (RS 910.1), Art icle 38,  Article 39 and Article 40.  
 
1 For a more detailed overview please consult the DS:1 notification of Switzerland in the WTO 
Agricultural Committee.  G/SCM/N/401/CHE  
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  5. Form of the subsidy  
Allowances (grants) . 
6. To whom and h ow the subsidy is provided  
Supplements per kilo milk converted into cheese, per kilo milk of cows fed without silage and per 
kilo marketed milk.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Supplement for milk converted into cheese : 
1'912'061'229 kilo of milk.  
2022: 185.2 mio . CHF for a total of 1 '851'947'950 kilo of milk.  
Supplement for non-silage feed : 
1'063'698'733 kilo of milk.  
2022: 30.9 mio . CHF for a total of 1 '030'788'900 kilo of milk  
Supplement for marketed milk : 
3'313'257'978 kilo of milk  
2022: 171.2 mio . CHF for a total of 3 '423'110'760 kilo of milk  
8. Duration of the subsidy  
The supplements for milk converted into cheese and for non -silage feed have been in force since 
1999, the supplement for marketed milk since  2019.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Year Total production of milk, in tons  
2021 3'380'715  
2022 3'325'642  
 
6.3  BOVINE MEAT  
1. Title of the subsidy programme  
Contributions for the storage of veal meat . 
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
The purpose of the subsidy is to promote the storage of domestic veal meat . 
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
Federal Ordinance of 2 6 November  2003 concerning the  meat market (SR 916.341 : Meat 
ordinance).  
5. Form of the subsidy  
Contributions (grants) . G/SCM/N/401/CHE  
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  6. To whom and h ow the subsidy is provided  
The Confederation can finance measures to facilitate the storage of domestic veal meat.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year Total amount (millions of CHF)  
2021 2.9 
2022 0 
 
8. Duration of the subsidy  
The subsidy has been in place since 2003.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Production and trade of veal meat (in tons ) 
Year Production  Imports  Exports  
2021 19'726 673 3 
2022 19'356 767 1 
 
6.4  WOOL  
1. Title of the subsidy programme  
Purchase of domestic wool and projects including the use of wool ( "wool projects "). 
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
There are at present some 340,000 heads of sheep, the majority of which are in mountain areas . 
The subsidy enables the Swiss wool industry to purchase domestic wool, while at the same time 
guaranteeing a contribution to producers to their production costs . The contributions for wool 
projects enable the industry to develop processes for wool treatment and to promote wool products . 
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
2021/22: The Confederation makes an annual contribution of approx . CHF  0.8 million  for the 
professional treatment of domestic sheep wool and for wool projects.  
6. To whom and h ow the subsidy is granted and to whom  
2021/22: The subsidy is granted by the Confederation to recognized self -help organisations of sheep 
owners and wool processors . The contribution is based on the weight of transformed  wool and based 
on project costs.  G/SCM/N/401/CHE  
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year Total (millions of CHF)  Per unit (CHF per kg)  
2021 0.58 (for the treatment  
 of domestic sheep wool)  2.00 
2021 0.30 (for wool projects)   
2022 0.60 (for the treatment  
 of domestic sheep wool)  2.00 
2022 0.2 (for wool projects)   
 
8. Duration of the subsidy  
The subsidy for the purchase of domestic wool was introduced in 1962 . It is provided in two 
instalments per year . Contributions for projects were introduced in 2003.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Production and trade of wool (in tons ) 
Year Production  Imports  Exports  
2021 * 302 641 
2022 * 551 645 
* Number of total production of wool not collected.  
6.5  EGGS  
1. Title of the subsidy programme  
Contributions for the disposal of eggs . 
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
The purpose of the subsidy is to promote the disposal of domestic eggs in periods of over -production.  
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
Federal Ordinance of 2 6 November  2003 concerning the egg market (SR 916.371 : Egg ordinance).  
5. Form of the subsidy  
Contributions (grants).  
6. To whom and h ow the subsidy is provided  
The Confederation can finance measures to facilitate the disposal of domestic eggs (cracking eggs 
and price reductions).  G/SCM/N/401/CHE  
- 16 - 
  7. Amount of the subsidy  
Year Total amount (millions of CHF)  
2021 2.0 
2022 2.0 
 
8. Duration of the subsidy  
Payments are usually made on a monthly basis during a calendar year.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Production, trade and consumption of eggs in shell (millions of eggs ) 
Year Production  Imports  Consumption  
2021 1145 411 1'295 
2022 1135 418 1'229 
 
Exports are negligible.  
6.6  TOBACCO  
1. Title of the subsidy programme  
Tobacco production suppor t. 
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
Help maintain tobacco production in traditional producing area s. 
4. Background and authority  for the subsidy  
Federal law on tobacco taxation (RS 641.31) . 
Ordinance fixing producer prices and prices to manufacturers for local tobacco (RS 916.116.4) . 
5. Form of the subsidy  
Payment to tobacco producers.  
6. To whom and h ow the subsidy is provided  
Production subsidy in favour of tobacco growers a nd for raw tobacco leaves processing . The subsidies 
come from a fund constituted by a tax on cigarettes sold in Switzerland . The fund pays the difference 
between producer prices (to a maximum of the target prices set by the government for each quality) 
and the tobacco price set by the government for the manufacturers.  G/SCM/N/401/CHE  
- 17 - 
  7. Amount of the subsidy  
Year Total amount (millions of CHF)  
2021 9.6 
2022 14.1 
 
8. Duration of the subsidy  
The subsidy has been paid since 1984, now on the basis of the ordinance of 1 8 December  1996 
fixing producer prices and prices to manufacturers for local tobacco.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Year Production ('000 t)  Imports* ('000 t)  Consumption ** ('000  t) 
2021 0.6 17.9 17.15  
2022 0.9 16.9 16.5 
* Tariff heading 2401.1010/2010/3010 and 2403.9100/9940 - Tobacco (raw, waste, reconstituted)  
** Production + imports - exports  
6.7  PROTEIN  
1. Title of the subsidy programme  
Bonuses to promote the growing of protein.  
2. Period covered  by the noti fication  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
Growing premiums for protein are one of the measures designed to safeguard producer income and 
support local production.  
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
Payment to the producer (grant).  
6. To whom and h ow the subsidy is provided  
Crop bonuses proportionate to the area under cultivation are allocated to domestic producers of 
high-protein peas and field beans . The bonuses are allocated annually in the Confederation budget.  
7. Amount of the subsidy  
Support measures   Millions of CHF  
  2021 2022 
Payment to the producer (1 '000 CHF per hectare)  Field beans and 
high-protein peas  5.2 4.4 G/SCM/N/401/CHE  
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  8. Duration of the subsidy  
The subsidy was paid on the basis of the ordinance of 2 3 October  2013 (RS 910.17).  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Production, trade and consumption  
Field beans, high -protein peas  
Year Production  
(thousands of tons)  Imports  
(thousands of tons)  Consumption*  
(thousands of tons)  
2021 11.8 13.5 25.3 
2022 15.0 16.4 31.4 
* Exports are insignificant  
Tariff heading – 0713.1011/1091/5012/5091  
6.8  OILSEEDS  
1. Title of the subsidy programme  
Bonuses to promote the growing of oilseeds.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
The measures taken to promote arable farming are aimed at keeping a minimum area for the 
production of oil -seeds both f or biological reasons linked to the need for a certain crop diversification 
and for reasons of maintaining domestic supply.  
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
Payment to the producer (grant).  
6. To whom and h ow the subsidy is provided  
The following subsidies are granted for rapeseed, sunflower seed, soybeans, oilseed flax, poppy, 
oilseed pumpkin and safflower : Crop bonuses proportionate to the area under cultivation are 
allocated  to domestic producers.  
7. Annual amount of the subsidy  
Support measures   Millions of CHF  
  2021 2022 
Payment to the producer (700 CHF per hectare except 
soybeans)  
Payment to the producer (1000 CHF per hectare for 
soybeans only)  Rapeseed, sunflower 
seed, oilseed 
pumpkin , oilseed 
flax, poppy, 
safflower, soybeans  22.9 23.9 
 G/SCM/N/401/CHE  
- 19 - 
  8. Duration of the subsidy  
A support of oil production was introduced in 1951 . The subsidy was paid on the basis of the 
ordinance of 2 3 October  2013 (RS 910.17).  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
The subsidy has made it possible to keep a minimum area under oil -seed production . Domestic 
production is equivalent to 20 -25% of Swiss average consumption of vegetable oils and fats.  
Production and trade (in tons ) 
Year  Production  Import  Oil exports  
2021 Rapeseed  77'000 4'900 186 
Soybeans  5'800 13'700 262 
Sunflower seeds  11'100 4'380 383 
2022 Rapeseed  92'000 2'500 261 
Soybeans  6'200 13'000 295 
Sunflower seeds  14'200 4'750 529 
 
6.9  SUGAR BEET  
1. Title of the subsidy programme  
Bonuses to promote the growing of sugar beet for sugar production.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
In order to guarantee domestic supply, a subsidy to promote the production of sugar beet was 
introduced in 2008 and fully replaced the allowance to the sugar factories in 2009 . In 2022, an 
additional subsidy of CHF 200 per he ctare linked to ecological production requirements was 
introduced . It will be paid until 2026.  
4. Background and authority  for the subsidy  
Art. 54 of the Federal Law on Agricultural of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
Payment to the producer (gra nt). 
6. To whom and h ow the subsidy is provided  
Crop bonuses are proportionate to the area under cultivation . They are allocated to domestic 
producers of sugar beet, which are used to produce sugar . To receive the grant, producers must 
have a written contract with a sugar processing factory.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year Support measures  Total (Millions of 
CHF)  CHF per hectare  
2021 Payment to the producer (grant)  33.7 2,100  
2022 Payment to the producer (grant)  32.7 2,100  
2022 Additional payment to the producer for 
complying with ecological production 
requirements  0.7 200 
 G/SCM/N/401/CHE  
- 20 - 
  8. Duration of the subsidy  
The legislation funding subsidy for production of sugar was introduced in 1957 . The subsidy was 
paid on the basis of the ordinance of 2 3 October  2013 (RS 910.17).  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Production and trade of sugar (in tons ) 
Year Production  Imports2 Exports3 
2021 210,000  77,500  6,500  
2022 225,000  84,500  7,700  
 
6.10  SEEDS  
1. Title of the subsidy programme  
Bonuses to promote the growing of plants seeds.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
The seeds culture of food and feed crops must be maintained under the Swiss production conditions 
to ensure domestic supply.  
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
Payment to the producer (grant).  
6. To whom and h ow the subsidy is provided  
The following subsidies are granted for production of seeds for potato, corn, grass and leguminous 
plants . Crop bonuses proportionate to the area under cultivation ar e allocated to domestic producers.  
7. Amount of the subsidy  
Support measures   Millions of CHF  
  2021 2022 
Payment to the producer (1,000 CHF per hectare)  Seed production 
(grass, 
leguminous)  0.5 0.5 
Payment to the producer (700 CHF per hectare)  Seed production 
(potato, corn)  1.1 1.2 
 
8. Duration of the subsidy  
The subsidy was paid on the basis of the ordinance of 2 3 October  2013 (RS 910.17).  
 
2 Customs tariff headings: 1701.12/91/99.  
3 Id. G/SCM/N/401/CHE  
- 21 - 
  9. Statistical data permitting an assessment of the trade effects of the subsidy  
Production and trade (in  thousand s of tons ) 
Year  Production  Imports  Exports  
2021 Seed potatoes1 20 5.7 0.44 
Seed corn2 0.44 1.8 0.4 
Seed grass3 0.01 8.65 1.6 
2022 Seed potatoes  21.5 6.7 0.03 
Seed corn  0.5 1.7 0.2 
Seed grass  0.01 9.06 1.35 
1 Custom tariff heading : 0701.1010/1090  
2 Custom tariff heading : 1005.1000  
3 Custom tariff heading : 1209.21/22/23/24/25/29/30  
6.11  FRUIT  
1. Title of the subsidy programme  
Promotion of domestic production.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objecti ve 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 produ cts. 
4. Background and authority  for the subsidy  
Federal Law on Agriculture of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
The subsidies are granted according to a) and b)  
a. 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.  
b. In addition, subsidies are paid to manufacturers in order to create  competitive conditions 
to purchase Swiss fruit for processing . The subsidies are fixed sums per unit, which are 
determined according to market conditions.  
6. To whom and h ow the subsidy is provided  
See replies to Question 5.  
7. Amount of the subsidy  
Total amount (in  million s of CHF ) 
Year Total  
2021 2.7 
2022 2.4 
 G/SCM/N/401/CHE  
- 22 - 
  8. Amount per unit  
The amounts per unit for the measures mentioned cannot be shown because they vary too widely 
with conditions and with the market situation.  
9. Duration of the subsidy  
For the measures during the period covered by the notification, see the repl ies to Question 5.  
10. Statistical data permitting an assessment of the trade effects of the subsidy  
Production and trade  
(thousands of tons)  
Year PRODUCTION  Imports  
 Total4 of which apples  Chapter 08  Heading 
0808/0809  
2021 149 113 599 67 
2022 163 120 584 63 
The quantities of fruit exported (Chapter 08) correspond to:  
2021:  2956 tons 
2022: 3311 tons 
6.12  CEREALS  
1. Title of the subsidy programme  
Supplement for cereals.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
The purpose of the supplement for cereals is to increase the added value by encouraging cereal 
producers to supply the raw material for the food industry.  
4. Background and authority  for the subsidy  
Art. 55 of the Federal Law on Agricultural of 2 9 April 1998 (SR 910.1).  
5. Form of the subsidy  
Payment to the producer (grant).  
6. To whom and h ow the subsidy is provided  
In accordance with Art. 55 of the Agriculture Act in conjunction with Art. 4 of the Ordinance on 
Contributions to Spec ial Crops (SR 910.17), the cereal supplement is paid for areas used to grow 
wheat, spelt, rye, starch, einkorn, barley, oats, triticale, rice, millet, sorghum and mixtures of these 
cereals . 
 
4 Apples, pears, quinces, cherries, plums and prunes, apricots, peaches and berries.  G/SCM/N/401/CHE  
- 23 - 
  7. Subsidy per unit, or in cases where this is not possible, the tota l amount or the annual amount 
budgeted for that subsidy  
Year Support measures  Total (Millions of 
CHF)  CHF per hectare  
2021 Payment to the producer (grant)  15.6 124 
2022 Payment to the producer (grant)  15.6 124 
 
8. Duration of the subsidy  
The legislation funding subsidy for grains was introduced in 2019.  
9. Statistical data enabling the effects of the subsidy on trade to be assessed  permitting an 
assessment of the trade effects of the subsidy  
Production and trade of grains (thousands of tons ) 
Year Production  * Imports5 Exports6 
2021 675.5  810.4  3.3 
2022 736.8  1079.6  2.9 
* Until 2020 the production included only that of common wheat . Now, under the production volume, all cereals 
are indicated that receive the cereal supplement according to Art. 4 of the Ordinance on Contributions to Special 
Crops.  
 
__________  
 
5 Customs tariff heading: 10  
6 Id. 10