G/SCM/N/343/CHE  
 
2 July 2019 
(19-4397) Page: 1/22 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
 
SWITZERLAND  
The following communication, dated 28 June 2019, is being circulated at the request of the  
delegation of Switzerland.  
 
_______________  
 
 
  G/SCM/N/343/CHE  
 
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  Contents  
1   REGIONAL POLICY  ................................ ................................ ................................ ...... 3 
2   ENVIRONMENTAL PO LICIES  ................................ ................................ ........................  4 
2.1   CO2-TAX REFUND TO SPECIFIC INDUSTRY SECTORS  ................................ .......................  4 
3   FORESTRY  ................................ ................................ ................................ ...................  6 
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 RE FUNDS  ................................ ................................ ........................  10 
6   AGRICULTURE  ................................ ................................ ................................ ...........  12 
6.1   AGRICULTURAL POLICY 2014 – 2021 ................................ ................................ ............ 12 
6.2   DAIRY PRODUCTS  ................................ ................................ ................................ ......13 
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 BEET  ................................ ................................ ................................ .............. 19 
6.10   SEEDS  ................................ ................................ ................................ ..................... 19 
6.11   FRUIT  ................................ ................................ ................................ ...................... 20 
6.12   PROCESSED AGR ICULTURAL PRODUCTS  ................................ ................................ ......21 
  G/SCM/N/343/CHE  
 
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  1  REGIONAL POLICY  
1. Title of the programme  
 
Tax relief on the basis of the Federal Law on Regional Policy (since 1 January 2008).  
 
2. Period covered  
 
2017-2018.  
 
3. General goal and/or purpose of the subsidy  
 
Create or maintain jobs in clearly defined, structurally weak areas. Thes e 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 dis parities. Since 1 July 2016, spatial planning considerations are taken 
into account in addition to structural weakness.  
 
4. Background and authority  
 
Legal basis:  
 
• Art. 12 of the Federal law of 6 October 2006 on regional policy (status 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, replaces the Ordinance of 28 November 2007 on the 
Granting of Tax Relief within the Scope of Regional Policy) . 
• Ordinance of the EAER of 3 June 2016 on the Determination of the Municipalities Falling 
Within the Areas of Application for Tax Relief (status as of 1 July 2016, Replaces the 
Ordinance of 28 November 2007 on the Determination of the Areas of Application for Tax 
Relief) . 
• 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. How the subsidy is granted and to whom  
 
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. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the 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 27.2 million per year (average 2008 – 2015). The respective 
data for  2016 to 2018 is not yet available.  G/SCM/N/343/CHE  
 
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  8. Duration of the subsidy and/or any other deadline connected with 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.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
In the period 2008 to 2018, 132 projects were granted full or partial tax relief, i.e. 12 projects per 
year on average.  
 
2  ENVIRONMENTAL POLICI ES 
2.1  CO2-TAX REFUND TO SPECIFIC INDUSTRY SECTORS  
1. Title of the programme  
 
Refund of the CO2 levy (Art. 31 and Art. 32 (a) of Federal Act on the Reduction of CO2 Emissions 
(CO2 Act) of 23 December 2011 (status as of 1 January 2018).  
 
2. Period covered  
 
2015 - 2018.  
 
3. General goal and/or purpose  of the subsidy  
 
The refund of the CO2 levy aims to avoid an undesirable disadvantage of the competi tiveness of 
companies that are exposed to international competition.  
 
4. Background and authority  
 
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 and to CHF 96 per tonne 
CO2 in Januar y 2018. 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 commit ments to 
emission reductions (nonETS). 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. Large, greenhouse gas -intensive companies are required to participate in 
ETS, while medium -sized companies may voluntarily participate. The companies 
participating in the ET S are exempted from the CO2 levy. CO2 levy exemptions of 
mandatory ETS companies are not included in levy refunds listed below.  
• nonETS: 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:  
• www.bafu.admin.ch/bafu/en/home/topics/climate/info -specialists/climate -policy/co2 -
levy/exemption -from-the-co2-levy-for-companies.html . G/SCM/N/343/CHE  
 
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  • CHP plants: Companies that operate CHP plan ts can be refunded the CO2 levy 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:  
www.bafu.admin.ch/bafu/en/home/topics/c limate/info -specialists/climate -policy/co2 -
levy/exemption -from-the-co2-levy-for-companies.html  → Exemption from the CO2 levy 
for CHP plants . 
 
Legal basis:  
 
• Federal Act on the Reduction of CO2 Emissions (CO2 Act) of 23 December 2011 (status 
as of 1 January 2018) : 
https://www.admin.ch/opc/en/classified -compilation/20091310/index.html . 
• Ordinance for the Reduction of CO2 Emissions CO2 Ordinance) of 30 November 2012 
(status as  of 1 November 2018) : 
https://www.admin.ch/opc/en/classified -compilation/20120090/index.html . 
Authority:  
 
• Federal Office for the Environment FOEN / Federal Department of  the Environment, 
Transport, Energy and Communications DETEC . 
• Swiss Custom Administration SCA / Federal Department of Finance FDF . 
5. Form of the subsidy  
 
Refund of CO2 levy . 
 
6. How the subsidy is granted and to whom  
 
nonETS : 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 com panies 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 certificat e 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 percent of the refunded CO2 levy on fossil 
combustible fuels that were used for electricity production.  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized annual 
amount of the subsid y 
 
The CO2 levy that was refunded by the Swiss Customs Administration to exempted companies 
(without mandatory EHS) was 92 CHF million in 2015 (1.541 mi llion t CO2 * 60 CHF / t CO2), 
136 CHF million in 2016 (1.617 million t CO2 * 84 CHF / t CO2) and CHF 13 5 million in 2017 
(1.606  million t CO2 * 84 CHF / t CO2). Data on the amount of refunds in 2018 is not yet available.  
 G/SCM/N/343/CHE  
 
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  8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
The duration of the CO2 levy and of the refunds has not been specified. However, the domestic 
greenhouse gas emissions reduction targets of the CO2 act have to be renewed by 2020.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assesse d 
 
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  
 
2017 - 2018. 
 
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 subsidy  
 
Federal Act on Forests (1991) [SR 921] : 
 
https://www.admin.ch/opc/fr/classified -compilation/19910255/index.html  (in French)  
 
https://www.admin.ch/opc/en/classified -compilation/19910255/index.html  (in English)  
 
Federal Ordinance on Forests [SR 921.01] : 
 
https://www.admin.ch/opc/fr/classified -compilation/19920310/index.html  (in French)  
 
5. Form of the subsidy  
 
Since 2008 the new system of fiscal equalization and division of tasks (NFE) 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. How the subsidy is granted and to whom  
 
The federal government and the cantons mainly provide comprehensive subsidies that favour the 
categories Protection Forest programme, Forest Biodiversity programme and Forest Management 
programme. Generally , the contributions from the cantons are as high as those from the federal 
government. However, the cantons vary greatly in the requi rements 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 lon g 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 programmes. With the new period starting in 2020, 
the former 3 programmes, namely Protection Forest, Forest Biodiversity and Forest Management, 
will be merged in a single programme named Forest. The objectives and measures of the programme 
will not change.  
 G/SCM/N/343/CHE  
 
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  7. Unit amount of the subsidy or, where this is not  possible, total amount or budgeted annual 
amount of the subsidy  
 
In 2017, the Confederation was engaged in program mes amounting to CHF 161.3 million; in 2018, 
it was CHF 155.4 million. The components of the federal contributions are: forest protection, 
protection against natural hazards, forest biodiversity, forest management, investment forest credits 
and diverse.  
 
Budget item  Account 2017  
(CHF million ) Account  2018  
(CHF million ) 
Protection Forests  73.0 70.3 
Forest Management  21.0 21.2 
Forest Biodiversity  20.0 18.5 
Natural Hazards Protection  41.0 37 
Various Components  6.0 6.4 
Forestry Investment Loans  0.3 2.0 
Total  161.3  155.4  
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
Starting 2008, four -year programmes  (2008 -2011; 2012 -2015; 2016 -2019) were introduced. The 
next period is exceptionally a five -year period (2020 -2024).  
 
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.  
 
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  
 
2017 - 2018.  
 
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 subsidy  
 
Legal Basis: Articles 25 to 27 of the Energy Act, dated 30 September 2016 ( SR 730.0 ). 
 
Authority: Swiss Federal Office of Ene rgy (www.bfe.admin.ch ). 
 
Implementing Agency of grants for photovoltaic systems: Pronovo ( www.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 power plants: max. 35% of eligible investment costs for new plants and 
substantial extensions, max. 20% for substantial refurbishment.  G/SCM/N/343/CHE  
 
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  • Small 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. How the subsidy is granted and to whom  
 
The grants are provided to operat ors of new or significantly expanded or upgraded plants upon 
request and subject to available funds.  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
Annual Budget  
 
Photovoltaic systems:  
2017: 100 million CHF 
2018: 200 million CHF 
 
Hydropower plants:  
2017: 0 million CHF (grants introduced on 1.01.2018)  
2018: 40 million CHF 
 
Biomass plants:  
2017: 0 million CHF (grants introduced on 1.01.2018)  
2018: 8 million CHF 
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
The grant scheme is limited in time and expires at the end of 2030.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
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 programme  
 
Investment grants for geothermal exploration (Energy Act; SR 730.0 ). 
 
2. Period covered  
 
2018. 
 
3. Policy objective and/or purpose of the subsidy.  
 
Increase electricity production from renewable energy sources to reach the goals define d 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 subsidy  
 
Legal Basis: Article 33 of the Energy Act, dated 30 September 2016 (Energy Act; SR 730.0 ), and 
entered into force on 1 January 2018 . 
 
Authority: Swiss Federal Office of Energy ( www.bfe.admin.ch ) 
 G/SCM/N/343/CHE  
 
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  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, completions, logging and testing of wells; well stimulation and subsurface monitoring.  
 
6. How the subsidy is  granted and to whom  
 
Contributions may firstly be granted for surface prospecting activities with the goal of defining 
surface locations of wells and their paths 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.  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
Annual Budget , 2018: 40  million CHF 
 
8. Duration of the subsidy and/or any other deadline connected with 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 enabling the effects of the subsidy on trade to be assessed  
 
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  
 
2018. 
 
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  order to promote the continuous production of el ectricity from renewable energy 
sources.  
 
4. Background and authority for the subsidy   
 
Background: Since 2008, numerous hydropower operators have been unable to produce adequate 
returns on capital that led to a curtailment in maintenance and new investment.  
 
Legal Basis: Energy Act, dated 30 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 . 
 G/SCM/N/343/CHE  
 
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  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 excluded from this support scheme (Art. 31 Energy Act).  
 
In order to calculate the profitability of a hydr o power plant the Swiss Federal Office of Energy 
(SFOE) published a guideline on allowable costs of generation and a detailed application form 
together with other implementation documents.  
 
6. How the subsidy is granted and to whom  
 
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 decides on the 
amount of the subsidy granted.  
 
The beneficiaries are those who carry the losses, i.e . the plant operator, the plant owner(s), or 
contractually obligated off -takers (retailers).  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the 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.  
 
Annual budget: CHF 110 million CHF were available in 2018.  
 
8. Duration of the subsidy and/or any other deadline connected  with 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 previous financial 
year. 
 
9. Statistical data enabling the effe cts of the subsidy on trade to be assessed  
 
Statistical data permitting an assessment of the trade effects is not available.  
 
5  PETROLEUM TAX REFUND S 
1. Title of the subsidy programme  
 
Mineral oil tax refund for specific intended use . 
 
2. Period covered by the notification  
 
2017-2018.  
 
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 forestry, 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 fiscal levies.  
• Regarding winter tourism, the objecti ve is to improve the framework conditions by the 
refunds to operators of slope maintenance vehicles.  G/SCM/N/343/CHE  
 
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  4. Background and authority for the subsidy  
  
Mineral oil tax is a special consumption tax, which since 1997 has been levied by the Swiss Con -
federation 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 differing tax rates. On the one hand, the tax tari ff 
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 reductions in the Annex to the Federal Department of F inance (FDF) Ordinance on Tax Reductions 
for Mineral Oil Tax (SR 641.612) contains reduced tax rates for certain uses.  
 
The Federal Customs Administration is responsible for the enforcement of mineral oil tax legislation 
and thereby the granting of tax rel ief. 
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
 
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 g as, 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 maintena nce 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 where this is not possible, the  total amount or the annual amount 
budgeted for that subsidy . 
 
Tax relief amounting to CHF 149 million in 2017 and CHF 166.8 million in 2018 was granted by the 
Federal Customs Administration.  
  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement . 
 
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 oi l 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.  
 G/SCM/N/343/CHE  
 
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  6  AGRICULTURE  
6.1  AGRICULTURAL POLICY 201 4 – 2021  
1. Title of the subsidy programme  
 
Agricultural policy 2014 – 2021 (AP 14 -21) – direct payments  
 
2. Period covered  
 
2017-2018. 
 
3. General goal 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  
• de-centralised population settlement of the country  
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1) . 
 
Federal Ordinance of 23 October 2013 c oncerning direct payments (SR 910.13 direct payments 
ordinance) . 
 
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 23 measures (2018). The payments are distributed in the form of 
grants.  
 
6. How the subsidy is granted and to whom  
 
Payments are granted to agricultural producers.  
 
7. Amount of the subsidy per head  
General Summary of expenditure under the direct payment scheme1 
 2017  (million CHF) 2018  (million CHF) 
Payments for ensuring food security  1'085.0  1'082.3  
Farmland payments  522.3  520.9  
Payments for production systems  466.1  475.9  
Biodiversity payments  412.8  409.3  
Payments for landscape quality  145.2  145.6  
Resource efficiency payments  46.6 56.9 
Transitional payments  128.3  114.4  
 
8. Duration of the subsidy  
 
A new Agricultural Policy will be implemented in 2022.  
 
                                                
1 For a more detailed overview please consult the DS:1 notification of Switzerland in the WTO 
Agricultural Committee.  G/SCM/N/343/CHE  
 
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  6.2  DAIRY PRODUCTS  
1. Title of the subsidy programme  
 
Two types of contributions are in place: contribution for milk processed into cheese and non-silage 
allowances.  
 
2. Period covered  
 
2017-2018. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the contributions for milk processed into cheese is to encourage milk farmers to give 
added -value to the milk. The purpose of the non -silage allowance is to encourage the use of grass 
as a more ecological and more expensive fodder in milk production.  
 
4. Background and authority  
 
Federal Act on Agriculture dated 29 April 1998 (RS 910.1), Article 38 and Article 39.  
 
5. Form of the subsidy  
 
Contributions (grants) . 
 
6. How the subsidy is granted and to whom  
 
Contribution per kilo milk processed into cheese and per kilo milk of cows fed without silage.  
 
7. Amount of the subsidy per head  
 
Contribution for milk processed into cheese:  
2017: 262.6 million CHF for a total of 1 '742'452'965 kilo of milk.  
2018: 263.2 million CHF for a total of 1 '741'424'877 kilo of milk.  
 
Non-silage allowances:  
2017: 30.4 million CHF for a total of 1 '060'932'211 kilo of milk.  
2018: 29.8 million CHF for a total of 1 '033'907'254 kilo of milk  
 
8. Duration of the subsidy  
 
The programme has been in force since 1999.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Year Total production of milk, in tons  
2017 3'408'111 
2018 3'426'656 
6.3  BOVINE MEAT  
1. Title of the subsidy programme  
 
Contributions for the storage of veal meat . 
 
2. Period covered  
 
2017-2018. 
 G/SCM/N/343/CHE  
 
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  3. General goal and/or purpose of the subsidy  
 
The purpose of the subsidy is to promote the storage of domestic veal meat . 
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
 
Federal Ordinance of 26 November 2003 concerning the meat market (SR 916.341: Meat ordinance).  
 
5. Form of the subsidy  
 
Contributions (grants) . 
 
6. How the subsidy is granted and to whom  
 
The Confederation  can finance measures to facilitate the storage of domestic veal meat.  
 
7. Amount of the subsidy per unit  
 
Year Per unit (CHF per kg)  
2017 5.0 
2018 4.8 
 
8. Duration of the subsidy  
 
The subsidy is in place since 2003 . 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade of veal meat (in tons)  
Year Production  Imports  Exports  
2017 21'130 753 18 
2018 21'374 631 10 
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  
 
2017-2018. 
 
3. General goal 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  
 
Federal Law  on Agriculture of 29 April 1998 (SR 910.1).  
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  5. Form of the subsidy  
 
2017/18: The Confederation makes an annual contribution of CHF 0.8 million for the professional 
treatment of domestic sheep wool and for wool projects.  
 
6. How the subsidy is granted and to whom  
 
2017/18: The subsidy is granted by the Confederation to recognized self -help organi zations of sheep 
owners and wool processors. The contribution is based on the weight of transformed wool and based 
on project costs.  
 
7. Amount of the subsidy per unit  
 
Year Total (millions of CHF)  Per unit (CHF per kg)  
2017 0.53 (for the treatment of domestic sheep wool)  2.00 
2017 0.32 (for wool projects)   
2018 0.58 (for the treatment of domestic sheep wool)  2.00 
2018 0.37 (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 
installments per year. Contributions for projects were introduced in 2003.  
 
9. Data enabling the effects of the subsidy on trade to be assessed  
Production and trade of wool (in tons)  
Year Production  Imports  Exports  
2017 684 622 547 
2018 * 726 485 
* Official number not yet published  
 
6.5  EGGS  
1. Title of the subsidy programme  
 
Contributions for the disposal of eggs  
 
2. Period covered  
 
2017-2018. 
 
3. General goal 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  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
 
Federal Ordinance of 26 November 2003 concerning the egg market (SR 916.371: Egg ordinance).  
 
5. Form of the subsidy  
 
Contributions (grants).  
 G/SCM/N/343/CHE  
 
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  6. How the subsidy is granted and to whom  
 
The Confederation can finance measures to facilitate the disposal of domestic eggs (cracking eggs 
and price reduct ions).  
 
7. Amount of the subsidy  
 
Year Total amount (millions of CHF)  
2017 1.9 
2018 1.8 
 
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  
2017 940 418 1'004 
2018 974 408 1'055 
 
Exports are negligible.  
 
6.6  TOBACCO  
1. Title of the subsidy programme  
 
Tobacco production support . 
 
2. Period covered  
 
2017-2018. 
 
3. General goal and/or purpose of the subsidy  
 
Help maintain tobacco production in traditional producing areas . 
 
4. Background and authority  
 
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. How the subsidy is granted and to whom  
 
Production subsidy in favour of tobacco growers and 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.  
  
7. Amount of the subsidy  
 
Year Total amount (millions of CHF)  
2017 18.5 
2018 16.0 
 G/SCM/N/343/CHE  
 
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  8. Duration of the subsidy  
 
The subsidy is paid since 1984, now on the basis of the o ordinance of 18 December 1996 fixing 
producer prices and prices to manufacturers for local tobacco.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Year Production ('000 t)  Imports* ('000 t)  Consumption ('000 t)  
2017 1.1 24.8 25.9 
2018 1 25.3 26.3 
*Tariff heading 24 - Tobacco and manufactured tobacco substitutes  
 
6.7  PROTEIN  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of protein.  
 
2. Period covered  
 
2017-2018.  
 
3. General goal 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  
 
Federal Law on Agriculture 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 
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  
  2017  2018  
Payment to the producer (1 '000 CHF per hectare)  Field beans and high -protein peas  5.9 5.7 
 
8. Duration of the subsidy  
 
The subsidy was paid on the basis of the ordinance of 23 October 2013 (RS 910.17).  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production, trade and consumption  
Field beans, high -protein peas  
Year Production  
(thousands of tons)  Imports  
(thousands of tons)  Consumption  
(thousands of tons)  
2017 21 11.3 32.3 
2018 18 10.8 28.8 
 G/SCM/N/343/CHE  
 
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  6.8  OILSEEDS  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of oilseeds.  
 
2. Period covered  
 
2017-2018.  
 
3. General goal 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 for biological reasons linked t o the need for a certain crop diversification 
and for reasons of maintaining domestic supply.  
 
4. Background and authority  
 
Federal Law on Agriculture 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  
 
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 amoun t of the subsidy  
 
Support measures   Millions of CHF  
  2017  2018  
Payment to the producer (700 CHF 
per hectare except soyabeans)  
Payment to the producer (1000 
CHF per hectare for soybeans only)  Rapeseed, sunflower 
seed, oilseed pumpkin, 
oilseed flax,  poppy, 
safflower, soybeans  19.6 21.3 
 
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 23 October 2013 (RS 910.17).  
 
9. 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 -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  
2017 Rapeseed  77,600  7,400  92 
Soybeans  5,600  13,500  203 
Sunflower seeds  16,400  7,000  340 
2018 Rapeseed  77,500  4,900  48 
Soybeans  3,700  14,600  51 
Sunflower seeds  16,500  9,100  157 
 G/SCM/N/343/CHE  
 
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  6.9  SUGAR BEET  
1. Title of the subsidy programme  
 
Bonuses  to promote the growing of sugar beet for sugar production.  
 
2. Period covered  
 
2017-2018.  
 
3. General goal 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.  
 
4. Background and authority  
 
Art. 54 of the Federal Law on Agricultural 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 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. Amount of the subsidy per unit  
 
Year Support measures  Total (Millions of CHF)  CHF per hectare  
2017 Payment to the producer (grant)  33.8 1,800  
2018 Payment to the producer (grant)  33.3 1,800  
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 7 December 1998 for 2013 and of 23 October 2013 for 
2014 (RS 910.17). 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade of sugar (in tons)  
Year Production  Imports2 Exports3 
2017 266,000  87,200  2,100  
2018 218,000  72,400  2,600  
 
6.10  SEEDS  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of plants seeds.  
 
2. Period covered  
 
2017-2018.  
                                                
2 Customs tariff headings: 1701.12/91/99.  
3 Id. G/SCM/N/343/CHE  
 
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  3. General goal 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  
 
Federal Law on Agriculture 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  
 
The following subsidies are granted for production of seeds for potato, corn,  d grass and leguminous 
plants. Crop bonuses proportionate to the area under cultivation are allocated to domestic producers.   
 
7. Amount of the subsidy  
 
Support measures   Millions of CHF  
  2017  2018  
Payment to the producer (1,000 CHF per hectare)  Seed production (grass, leguminous)  0.4  
Payment to the producer (700 CHF per hectare)  Seed production (potato, corn)   1.2 
 
8. Duration of the subsidy  
 
The subsidy was paid on the basis of the ordinance of 23 October 2013 (RS 910.17).  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade (in thousands of tons)  
Year  Production  Imports  Exports  
2017 Seed potatoes1 22.2 6.7 0.7 
Seed corn2 0.5 1.4 0.4 
Seed grass3 0.1 9.3 1.3 
2018 Seed potatoes  23.4 5.2 0.22 
Seed corn 0.5 1.3 0.3 
Seed grass  0.2 8.8 1.3 
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  
 
2017-2018.  
 
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.  
 G/SCM/N/343/CHE  
 
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  4. Background and authority  
 
Federal Law on Agriculture of 29 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. How the subsidy is granted and to whom  
 
See replies to Question 5.  
 
7. Amount of the subsidy  
Total amount (in millions of CHF)  
Year Total  
2017 2.2 
2018 1.7 
 
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.  
 
8. Duration of the subsidy  
 
For the 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  
Production and trade  (thousands of tons)  
Year Production  Imports  
 Total4 of which apples  Chapter 08  Heading 
0808/0809  
2017 127 96 579 79 
2018 230 167 578 83 
The quantities of fruit exported (Chapter 08) correspond to:  
 
2017: 6038 tons  
2018:  6977 tons  
 
6.12  PROCESSED AGRICULTUR AL PRODUCTS  
1. Title of the subsidy programme  
 
Export subsidy for processed agricultural products.   
 
                                                
4 Apples, pears, quinces, cherries, plums and prunes, apricots, peaches and berries.  G/SCM/N/343/CHE  
 
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  2. Period covered  
 
2017-2018. 
 
3. General goal and/or purpose of the subsidy  
 
In order to place the Swiss food processing industry on an equal footing with foreign competitors 
with respect to the cost of basic agricultural commodities incorporated into processed produc ts, the 
law mentioned below authorises the Government to grant export subsidies.   
 
4. Background and authority  
 
The subsidy is legally based on the Federal Law of 13 December 1974 on the import and export of 
processed agricultural products (SR: 632.111.72), which has been in force since 1 June 1976, and 
the Ordinance of 22 December 2004, respectively of 23 November 2011, regulating contributions to 
exports of processed agricultural products (SR:  632.111.723).  
 
The legal basis has been abolished as per January 1st, 2019.  
 
5. Form of the subsidy  
 
The contributions are granted for the export of certain agricultural commodities (dairy products and 
cereal products) when exported in the form of processed agricultural products.  
 
6. How the subsidy is granted and to whom  
 
The contributions are paid to manu facturers upon export. Requests for contributions for exports 
from December of the preceding year until June of the current year must be submitted until 
15 August of the current year, for exports from July to November until 31 December of the current 
year.  
 
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 94.6 million in 2017 and  CHF 100.4 million in 
2018.  
 
Export contributions are calcul ated and fixed for the defined agricultural commodities (dairy and 
cereal products) used by the food industry on the basis of the difference between Swiss and external 
representative prices. The export refunds are adapted in case of considerable price fluc tuations. The 
amount granted per unit of processed agricultural products depends on the fixed exports 
contributions and on the quantities of agricultural commodities used for the preparation of goods 
exported.  
 
8. Duration of the subsidy and/or any other dead line connected with the subsidy  
 
Export subsidies for processed agricultural products have been granted since 1 June 1976. 
Implementing the 2015 ministerial decision (WT/MIN(15)/45) which terminates any export subsidy 
programme,  the law cited under point 4  above was totally revised and its export subsidies abrogated 
as of 31 December 2018 . In the case of processed agricultural products, footnote 4 to paragraph 6 
of that ministerial decision applies.  
 
9. Statistical data enabling the effects of the subsidy on t rade to be assessed  
 
Detailed, representative trade data for the respective products is not published.  
 
__________