WORLD TRADE  
ORGANIZATION  G/SCM/N/123/CHE 
12 January 2006 
 
 (06-0156) 
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 SCM Agreement  
 
SWITZERLAND 
   The following communication, 20 December 2005, is being circulated at the request of the 
Delegation of Switzerland. 
 
_______________ G/SCM/N/123/CHE 
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TABLE OF CONTENTS 
Page
 
 
 
PART ONE:  INDUSTRY............................................................................................................ .........3  
I.  ASSISTANCE FOR ZONES WHICH ARE UNDER ECONOMIC RENEWAL..............3  
II.  ASSISTANCE FOR MO UNTAIN AREAS............................................................................4  
III. ASSISTANCE FOR FOREST RY ACTIVITIES...................................................................5  
PART TWO:  AGRICULTURE......................................................................................................... ..7 
I. MILK AND DAIRY PRODUCTS...........................................................................................7  
A. BUTTER ............................................................................................................................... ........7  
B. SKIMMED MILK AND POWDER .....................................................................................................8  
C.  CHEESE FOR DOMESTIC CONSUMPTION .......................................................................................9  
D. CHEESE FOR EXPORT ...................................................................................................................9  
E. OTHER DAIRY PRODUCTS .........................................................................................................10  
II.  BREEDING AND DAIRY CATTLE ....................................................................................12  
III. HORSES ......................................................................................................................... .........13  
IV.  WOOL........................................................................................................................... ...........14  
V. EGGS ........................................................................................................................... ............15  
VI.  PROTEIN AND FIBRE PLANTS.........................................................................................16  
VII. OIL-SEEDS ...................................................................................................................... .......18  
VIII.  SUGAR BEET..................................................................................................................... ....19  
IX. POTATOES....................................................................................................................... ......21  
X. FRUIT.......................................................................................................................... ............22  
XI. PROCESSED AGRICULTURAL PRODUCTS..................................................................24  
 
 
 
   
 
    
  G/SCM/N/123/CHE 
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   PART ONE:  INDUSTRY 
 
 
I. ASSISTANCE FOR ZONES WHICH ARE UNDER ECONOMIC RENEWAL 
1. Title of the programme 
Assistance for economic areas that are economically renewed. 
 
2.  Period covered 
2003 - 2004. 
 
3.  General goal and/or purpose of the subsidy 
Support of projects of private enterprises aimed at creating and maintaining jobs in areas that 
are under economic renewal. 
 Support of institutions and projects between firms, which increase the potential of 
development of companies and promote investment  and innovation in areas that are under economic 
renewal or in zones particularly touched by the ne gative consequences of liberalization in the field of 
the infrastructures.  
4.  Background and authority 
Federal decree of 6 October 1995 (s tate on 14 August 2001; SR 951.93
1) 
Federal ordinance of 10 June 1996 (s tate on 24 November 2004; SR 951.931) 
Federal ordinance of 12 June 2002 (s tate on 2 July 2002; SR 951.931.1) 
 
5.  Form of the subsidy 
Financial assistance is allocated in the form of: 
 
(a) Tax relief on federal taxes (partial or full); 
(b) Interest subsidies on investment credits; 
(c) Guarantees for investment credits; 
(d) Subsidies for projects or institutions between companies. 
6.  How the subsidy is granted and to whom 
 Financial support is granted to manufacturing companies and to services companies with 
activities closely linked to the manufacturing process.  The amount of the investment credit taken into 
consideration for the grants is at maximum one thir d of the investment project costs (hard assets and 
start up costs).  The project has to be innovative:  the product and the manufacturing process have to 
be technologically up-to-date and give the company an increased ability to compete through a national 
and international market presence. 
 
                                                      
1 SR = Systematic Registry of Federal Law, www.bk.admin.ch  G/SCM/N/123/CHE 
Page 4  
 The interest subsidies have a ceiling of CH F 5 million for the credit for which interest 
contributions may be paid.  The maximum subs idy which may be granted (Confederation plus 
Canton) comes to CHF 625,000 (assumption of 5 per cent interest rate).  
The financial subsidies for projects or instituti ons between firms are granted in proportion of 
the importance of the project for the regional econom y.  It rises to the maximum with CHF 600,000 
(Confederation + canton) per year and project.  
 
Under the ordinance of 10 June 1996, areas considered to be under economic renewal are 
those where:  
(a) A particular need for structural adaptation exists in consequence of an evolution of 
the population lower than that of the whole country, a level of incomes definitely lower than the national average and a proportion of industrial activities higher than the average.  
(b) The average unemployment ex ceeds the national average; 
(c) The trend in the number of jobs has been markedly less favourable than the national 
average; or 
(d) There are clear indications that at least one of the above-mentioned situations will 
occur shortly, in particular that the pros pects for the most important sectors of the 
economy and for the largest firms are unfavourable. 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized 
annual amount of the subsidy 
The sum of CHF 6.2, respectively CHF 31.4 m illions in guarantees has been granted in 
2003/2004. In the same period, the sum of CHF 1.2,  respectively CHF 0.8 million has been granted in 
interest subsidies and CHF 3.1, respectively CH F 3 millions in projects or institutions between 
companies.  
8. Duration of the subsidy and/or any other deadline connected with the subsidy 
 The assistance programme remains in force for five years, until 30 June 2006. 
  The maximum duration of financial assistance in each case is eight years for guarantees, five years for interest contributions, and 10 year s for tax relief.  The subsidies for projects and 
institutions between companies are considered annually. 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
The effect of the assistance programme on tr ade is negligible, if not non-existent. 
 
II. ASSISTANCE FOR MOUNTAIN AREAS  
1. Title of the programme 
Surety and contributions to interest-servicing in mountain areas. 
 
2.  Period covered 
2003 and 2004  G/SCM/N/123/CHE 
 Page 5 
 
   
3.  General goal and/or purpose of the subsidy 
The programme is aimed at providing long a nd medium term capital loans to small and 
medium-sized establishments situated in mountain areas. 
4.  Background and authority 
This financial assistance is based on the Fe deral Law encouraging credit guarantees and on 
loan service contributions in mountain areas (SR 901.2) of 25 June 1976. These areas are defined in 
the Federal Law on investment assistance in mountain areas (SR 901.1) of 21 March 1997. 
 
5.  Form of the subsidy 
The Confederation encourages the grant of su reties by giving subsidies to the Swiss 
Guarantee Cooperative for the Arts and Crafts a nd by making interest-servicing contributions. The 
subsidy does not relate to a specific product or sector. 
6.  How the subsidy is granted and to whom 
The programme applies to sureties and interest-servicing contributions for small- and 
medium-sized enterprises which are profitable or likel y to develop, whether ex isting or to be created, 
whose activity conforms to an established developm ent programme within the meaning of the Federal 
Law on investment assistance in mountain areas (SR 901.1) of 21 March 1997. Payments are made only to establishments, which are not already suppor ted by the Confederation in some other way. 
7.  Unit amount of the subsidy or, where this  is not possible, total amount or budgetized 
annual amount of the subsidy 
The Confederation's total share of the losses on guaranteed loans was CHF 1.1 million in 
2003 and CHF 2.1 million in 2004, with federal commitments as a whole amounting to 
CHF 44.1 million at year end 2003 and CHF 39.0 million at year end 2004. 
 
The contributions to intere st servicing paid out tota lled CHF 0.4 million in 2003 and 
CHF 0.3 million in 2004.  
 
8.  Duration of the subsidy and/or any other deadline connected with the subsidy 
The assistance programme for mountain areas remains in force indefinitely. 
9.  Statistical data enabling the effects of the subsidy on trade to be assessed 
 The effect of the subsidy on trade is insignificant, if not non-existent. 
 
III. ASSISTANCE FOR FORESTRY ACTIVITIES 
 
1. Title of the programme 
Assistance for Forestry Activities 
 
2. Period covered 
2003-2004. 
 G/SCM/N/123/CHE 
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 3. General goal and/or purpose of the subsidy 
Compensation to forest owners for services rendered to the public. 
 
4. Background and authority 
Federal Law on Forests (1991) [SR 921] 
Federal Ordinance on Forests [SR 921.01] 
 
5. Form of the subsidy 
Assistance is allocated in the form of: 
• Indemnities  
• Financial assistance  
 
6. How the subsidy is granted and to whom 
In Switzerland, the policy of assisting forestry activities provides two types of assistance, both 
intended as incentives: 
• Indemnities are paid for the performance of tasks required by law (e.g. measures for 
protection against natural hazards, minimum tendi ng in protection of forests). Up to 70 per 
cent of the costs incurred by such measu res are paid by the Confederation.  
• Financial assistance is provided if the forest ow ner chooses to carry out certain measures such 
as tending and hauling, if the cost of these measures is made particularly onerous by 
restriction linked to nature protection.  In this  context, up to 50 per cent of the costs incurred 
is covered by the Confederation.  Financial aid is also offered for the improvement of 
management condition (e.g. build ing of forest roads and other structural improvement). 
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized 
annual amount of the subsidy 
The assistance has stabilised at around CHF 180 mi llion in the years before 2000.  In 2000, 
the sum of CHF 260 Mio was granted. This increase in  spending in this year is primarily due to the 
measures necessitated by hurricane Lothar.  In 20 03, the regular assistance was CHF 164 million and 
CHF 63 million due to Lothar; in 2004, the regular assistance was CHF 164 million.  The confederation plans to continuously cut assistance to  forestry down to 2/3 of the amount of 2002 by 
2006. 
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy 
This assistance is attributed on a project base.  The duration per project is normally 5 years. 
 9. Statistical data enabling the effects of the subsidy on trade to be assessed 
The effect of the assistance programme on trade is negligible, if not non-existent (e.g. mature 
trees cutting in protected forests to allow regeneration while young trees will be left in the forest where timber transport is difficult due to rugged conditions). 
  
  G/SCM/N/123/CHE 
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  PART TWO:  AGRICULTURE  
 
I. MILK AND DAIRY PRODUCTS 
 
A. BUTTER  
1. Title of the subsidy programme 
Contributions for butter. 
 
2. Period covered 
2003-2004. 
 3. General goal and/or purpose of the subsidy 
In order to be competitive on the domestic market  of all kinds of fat the commercialisation of 
certain varieties of butter is suppor ted by a subsidy per unit sold.   
 
4. Background and authority 
(a) Agriculture Law of 29 April 1998 (SR 910.1). 
(b) Two Federal ordinances of 7 December 1998 concerning measures of transition 
(SR 916.350.3: Transition ordinance milk ) and price support (SR 916.350.2: Milk 
price support ordinance). 
5. Form of the subsidy 
Subsidies consist of government-financed cont ributions for cooking butter and resolidified 
butter.  The total for these contributions amount s to CHF 93.1 million for 2003 and CHF 71.5 million 
for 2004.   
The Federal Office for Agriculture pays out all these contributions  
 6. How the subsidy is granted and to whom 
The price-reduction contributions are granted to  manufacturers (amount per unit) and are paid 
monthly.     
7. Amount of the subsidy per unit 
Butter subsidies vary as follows according to  packing (cooking butter) and utilisation (re-
solidified butter). 
(CHF per kg) 
Year Choice butter Cooking butter Re-solidified butter
1.1.2003 – 30.11.2003 
1.12.2003 – 30..2004 0 
0 1.12 – 3.16  
2.95  4.84 – 7.27 
 4.30 
1.5.2004 – 31.12.2004 0  2.74  4.06 
 
 2003: The average contribution granted is about CHF 2.65 per kg.  2004: The average contribution granted is about CHF 3.16 per kg. G/SCM/N/123/CHE 
Page 8  
  
8. Duration of the subsidy 
The contributions are not seasonally or otherwi se limited or differentiated.  However, the 
amount of the contributions will be reduced regularly  in the future.  The total amount paid concerns 
the accounting years.  9. Statistical data enabling the effects of the subsidy on trade to be assessed 
Production, trade and consumption (in tonnes)
 
 
Year Production Imports C onsumption and exports 
incorporated in processed 
products 
2003 31,489  1,751 42,151 
2004 20,859    986 42,278 
   
B. S
KIMMED MILK AND POWDER  
1. Title of the subsidy programme 
Contributions for skimmed milk and skimmed milk powder.   
 2. Period covered 
2003-2004.   
 
3. General goal and/or purpose of the subsidy 
Milk price support.   
 4. Background and authority 
(a) Agriculture Law of 29 April 1998 (SR 910.1). 
(b) Two Federal ordinances of 7 December  1998 concerning measures of transition 
(SR 916.350.3: Transition ordinance milk) a nd price support (SR 916.350.2: Milk price 
support ordinance). 
5. Form of the subsidy 
Subsidies consist of government-financed contri butions for skimmed milk and skimmed milk 
powder.  The total for this contributions amount s to CHF 25.3 million for 2003 and 28.9 million for 
2004.    
The Federal Office for Agriculture pays all these contributions.  
  G/SCM/N/123/CHE 
 Page 9 
 
  6. How the subsidy is granted and to whom 
The beneficiaries are breeders who use skimme d milk or manufacturers of special products 
such as acid casein, caseinates or milk  substitutes and are paid monthly. 
 
7. Amount of the subsidy per unit 
 Skimmed milk: 
 1.1.2003 to 30.04.2004: from CHF  0.08 to  0.115per kg. 
 1.5.2004 to 31.12.2004: from CHF 0.08 to 0.11per kg.   Skimmed milk powder:  1.1.2003 to 31.12.2004: CHF 0.88 per kg. 
 
8. Duration of the subsidy 
The contributions are not seasonally or otherwi se limited or differentiated.  However, the 
amount of the contributions will be reduced regular ly in the future due to the adopted new milk 
policy.  The total amount paid concerns the accounting year. 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed (in tonnes) 
Year Production of processed skimmed 
milk  Production of processed skimmed 
milk powder 
2003 229,184  6,626 
2004  264,597  5,904 
 C. C
HEESE FOR DOMESTIC CONSUMPTION  
1. Title of the subsidy programme 
  This Special price reduction for some soft  and semi-hard cheeses was abolished in 2002 
(01.05. 2002). 
 D. C
HEESE FOR EXPORT  
1. Title of the subsidy programme 
 Export contribution for cheese. 
 
2. Period covered 
2003-2004.  
 
3. General goal and/or purpose of the subsidy 
To enable the cheese manufacturer to pay a decen t milk price to the farmer and at the same 
time to offer his cheese at a competitive price to the reseller.   
 
4. Background and authority 
(a) Agriculture Law of 29 April 1998 (SR 910.1). G/SCM/N/123/CHE 
Page 10  
 (b) Two Federal ordinances of 7 December 1998 concerning measures of transition 
(SR 916.350.3: Transition ordinance milk ) and price support (SR 916.350.2: Milk 
price support ordinance). 
5. Form of the subsidy 
The subsidy consists of a specific contribution fo r each kilo of cheese so ld abroad.  The total 
for this contribution amounts to CHF 29.1 million for 2003 and 15.9 million for 2004.   
 
All these contributions are paid out by the Federal Office for Agriculture.   
 
6. How the subsidy is granted and to whom 
Subsidies are granted to the cheese dealers as a price reduction per kg of exported cheese.   
 
7. Amount of the subsidy per unit 
 1.1.2003 to 30.4.2003:   from CHF 0.6 to CHF 1.8 per kg. 
 1.5.2003 to 30.11.2003:   from CHF 0.45 to CHF 2.3 per kg.  1.12.2003 to 30.04.2004: from CHF  0.6 to CHF 2.3 per kg. 
 1.05.2004 to 31.12.2004: from CHF 0.6 to CHF 1.8 per kg. 
 
8. Duration of the subsidy 
 The accounting year. 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
Year 
 Total Production 
(tonnes) Of which subsidies for exports 
(tonnes) 
2003 160,165 30,409 
2004  162,397 11,530 
 
E. OTHER DAIRY PRODUCTS  
1. Title of the subsidy programme 
Export subsidy for other dairy products.   
 
2. Period covered 
2003 – 2004   
 
3. General goal and/or purpose of the subsidy 
The subsidy is aimed at safeguarding traditional e xports of other dairy products.  It is paid on 
the basis of the quantity of milk u sed to manufacture those products.   
 4. Background and authority 
(a) Agriculture Law of 29 April 1998 (SR 910.1).  G/SCM/N/123/CHE 
 Page 11 
 
  (b) Two Federal ordinances of 7 Decemb er 1998 concerning measures of transition 
(SR 916.350.3: Transition ordinance milk ) and price support (SR 916.350.2: Milk 
price support ordinance). 
5. Form of the subsidy 
Payment to exporters of other dairy products.   
 
All these contributions are paid out by the Federal Office for Agriculture.   
 
6. How the subsidy is granted and to whom 
Payment to exporters of other da iry products on the basis of the quantity of whole milk used 
to manufacture those products.  The total for this  contribution comes to CHF 34.8 million for 2003 
and 13.8 million for 2004.   
 
7. Amount of the subsidy per unit 
There is an export contribution of    
1.1.2003 to 30.4.2004:  CHF 0.31   
1.5.2004 to 31.12.2004: CHF 0.29   
per kg of milk that is used in manufacturing the following dairy products:   
 
(a) Cream. 
(b) Skimmed milk powder and milk powder. 
(c) Yoghurt, flavoured or containing added fruit, nuts or cocoa. 
(d) Other dairy products. 
8. Duration of the subsidy 
The accounting year.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
 The following figures represent the subsid ised amounts for the different products: 
 
 Product Tonnes 
Cream   1,104 
Skimmed milk powder and milk powder 19,237 
Yoghurt, flavoured or containing added fruit, nuts or 
cocoa 9,316 2003 
Other dairy products 2,094 
  (table cont'd)G/SCM/N/123/CHE 
Page 12  
  
 
 Product Tonnes 
Cream   882 
Skimmed milk powder and milk powder 14,177 
Yoghurt, flavoured or containing added fruit, nuts or 
cocoa 17,761 2004 
Other dairy products    519 
 
 
II. BREEDING AND DAIRY CATTLE 
 
1. Title of the subsidy programme 
Export subsidies.   
 
2. Period covered 
2003-2004.  
 
3. General goal and/or purpose of the subsidy 
The Federal Council takes measures to mainta in domestic production of breeding and dairy 
cattle in the mountain area. 
 
4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1). 
5. Form of the subsidy 
Contributions (grants).   
 
6. How the subsidy is granted and to whom 
Subsidies are granted in order to bring the pr ices of exported livestock into line with those 
charged in traditional export markets.  These c ontributions consist of a fixed base amount and a 
variable amount depending on the quality of the anim al;  they are paid up to a fixed maximum.     
 
7. Amount of the subsidy per head 
Total (in thousands of CHF) 
 2003 
Export subsidies  7.710 
 2004 
Export subsidies  6.330 
  G/SCM/N/123/CHE 
 Page 13 
 
  Per unit (as an average, CHF per livestock unit) 
 2003 
Export subsidies  1,430 
 2004 
Export subsidies  1,420 
 
8. Duration of the subsidy 
Export subsidies have been applied since 1954.  
 9. Statistical data enabling the effects of the subsidy on trade to be assessed 
The export bonuses have made it possible to main tain traditional exports of cattle, mainly in 
the interests of breeding in mountain areas.   
Production and exports of breeding and dairy cattle
 
 
(Head) 
Year  Stock calves up to one year 
(breeding animals) Exports of heifers, cows and 
bulls 
2003  250,000  5,394 
2004 250,0002  4,468 
 
Switzerland imported 1,975 da iry cattle in 2003/2004. 
 
III. HORSES 
1. Title of the subsidy programme 
Export subsidies.   
 2. Period covered 
2003-2004.  
 
3. General goal and/or purpose of the subsidy 
The Federal Council takes measures designed to  maintain domestic horse breeding for the 
needs of agriculture.  These measures apply to horses of all breeds born in Switzerland.   
 
4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1). 
                                                     
 
2 Estimate . G/SCM/N/123/CHE 
Page 14  
 5. Form of the subsidy 
A Federal financial export aid is paid to hor se-breeders for exports of horses of the breeds 
encouraged by the Confederation.  Total e xport subsidies in 2003 amounted to CHF 358,000 and 
CHF  305,700 in 2004.   
6. How the subsidy is granted and to whom 
 The subsidy is granted to breeders who export. 
 
7. Duration of the subsidy 
The subsidy has been in force since 1960.  
 8. Statistical data 
Numbers and Trade
3 
(Head) 
 
Year Horse numbers Imports Exports 
2003 60,000  2,988  862 
2004 60,000  2,865  925 
 
Most exports are not subsidised (subsidi es cover about  160 head per year).   
 
IV. WOOL 
1. Title of the subsidy programme 
Purchase of domestic wool.   
 
2. Period covered 
2003-2004.   
 
3. General goal and/or purpose of the subsidy 
There are at present some 420,000 head of sheep, the great majority of which are in mountain 
areas.  The subsidy enables the Swiss wool indus try to purchase domestic wool, while at the same 
time it guarantees to producers a contribution to their production costs.  4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1). 
5. Form of the subsidy 
2003: The Domestic Wool Board (CLI), a subsidia ry of the Swiss Sheep Farmers' Federation, 
purchases domestic wool from the producers.  The pri ce received by the producer comprises a Federal 
contribution fixed by the Department of Public  Economy at an amount varying with the prices 
obtained by the Board when reselling in the market.      
                                                     
 
3Enumeration is carried out in April of each year.  Horses intended for slaughter are not included.  G/SCM/N/123/CHE 
 Page 15 
 
   
 The Confederation allocates a contribution of CHF 0.6 million.  
The subsidy is in the form of price support, based on the difference between the price fixed by 
the Federal Council and the market price, and of reimbursement of the losses incurred by the CLI in 
purchasing the wool.  This reimbursement is intende d to cover the price difference mentioned and the 
variable amount granted by the CLI.   
 2004:    The Confederation makes an annual c ontribution of CHF 0.6 million for the professional 
treatment of domestic sheep wool.       6. How the subsidy is granted and to whom 
2003:  The greater part of the subsidy is granted to  the producer through the price paid by the CLI.  
The rest goes to cover the CLI deficit.  2004:   The subsidy is granted by the Confederati on to recognized self help organisations of sheep 
owners and wool transformers. The contribution is determined by kg of transformed wool.  
 
7. Amount of the subsidy per unit 
Year Total (thousands of CHF) Per unit (CHF per tonne) 
2003  0.6 1.5 
2004  0.6 1.5 
 
8. Duration of the subsidy 
The subsidy was introduced in 1962.  It is provided in two instalments per year.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
(in tonnes) 
Year Production Imports Exports 
2003  376  856  398 
2004  450  1119  437 
 
V. EGGS 
1. Title of the subsidy programme 
Contributions  
 
2. Period covered 
2003-2004.  
 
3. General goal and/or purpose of the subsidy 
The purpose of the subsidy is to promote the disposal of domestic eggs.  G/SCM/N/123/CHE 
Page 16  
  
4. Background and authority 
(a) Agriculture Law of 29 April 1998 (SR 910.1). 
(b) Federal Ordinance of 26 November  2003 concerning the egg market.
 (SR 916.371:  
Egg ordinance ). 
5. Form of the subsidy 
Contributions (grants).   
 
6. How the subsidy is granted and to whom 
It can make grants for measures designed to f acilitate the disposal of domestic eggs (crack 
eggs and price reductions).  
 
7. Amount of the subsidy 
Year Total amount (millions of CHF) 
2003 2.1 
2004 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 e ggs in shell (millions of eggs).  
 
Year Production Imports Consumption 
2003 680 412 887 
2004 632 450 887 
 
Exports are negligible.    
VI. PROTEIN AND FIBRE PLANTS 
1. Title of the subsidy programme 
Bonuses to promote the growing of  protein and fibre plants.  
 
2. Period covered 
2003-2004.  
  G/SCM/N/123/CHE 
 Page 17 
 
  3. General goal and/or purpose of the subsidy 
Growing premiums for protein and fibre plants are one of the measures designed to safeguard 
peasant income and food security.  
4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1). 
5. Form of the subsidy 
Payment to the producer (grant).   
 
6. How the subsidy is granted and to whom 
Crop bonuses proportionate to the area under culti vation 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 per unit 
In 2003 and 2004 the following amounts were paid per hectare (in CHF):   
 
  
Field beans and high-protein peas 1,500 2003 
Fibre plant 2,000 
  
Field beans and high-protein peas 1,500 2004 
Fibre plant 2,000 
 
The growing bonuses per hectare were paid in regardless of surface area.   
 
8. Duration of the subsidy 
The measure was introduced in 1951.   
 9. Statistical data enabling the effects of the subsidy on trade to be assessed 
Production, trade and consumption
 
(not allowing for fluctuations in stocks) 
 
Field beans, high-protein peas 
Year Production 
(thousands of tonnes) Imports 
(thousands of tonnes) Consumption 
(thousands of tonnes) 
2003 19 20 39 
2004 18 14 32 
 G/SCM/N/123/CHE 
Page 18  
 VII. OIL-SEEDS 
1. Title of the subsidy programme 
Bonuses to promote the growing of oilseeds and price support.   
 
2. Period covered 
2003-2004.   
 
3. General goal and/or purpose of the subsidy 
The measures taken to promote arable farmi ng are aimed at keeping a minimum area under 
oil-seeds both for biological reasons linked to the need for a certain crop diversification and for 
reasons of food security.   
 
4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1).   
 
5. Form of the subsidy 
For oilseeds, there are three different types of subsidies:   
 
(a) Payment to the producer (grant). 
(b) Payment to the oil-processing plants for human consumption (a) Payment to the oil processing plants for technical use 
6. How the subsidy is granted and to whom 
The following subsidies are granted for ra peseed, sunflower seed and soybeans:   
 
Crop bonuses proportionate to the area under cultivation are allocated to domestic producers. 
Since 2002, the performance order between the Fe deral Office of Agriculture and the sector 
organisation “swissgranum” is in force.  The sector  organisation is given a certain sum in order to 
maintain an appropriate production and processing of oilseeds.  This amount of money is administered 
independently, but in agreement with all partners 
The performance order includes the processing for food purposes and technical use.  The 
supporting level of the individual species adju sts the output to the market needs.  
 Since 2002, the allowance within the performan ce order is the limiting factor for domestic 
production and processing oilseeds.  G/SCM/N/123/CHE 
 Page 19 
 
   
7. Annual amount of the subsidy 
Support measures  Millions of CHF 
  2003 2004 
(a) Payment to the producer (1,500 per hectare) Rapeseed, 
sunflower seed 
and soybeans 35.2 35.9 
 
  
 
    
Performance order sector organisation   8.5 8.4 
Total amount Oilseeds 43.7 44.3 
 
8. Statistical data enabling the effects of the subsidy on trade to be assessed 
The subsidy has made it possible to keep a minimum area under oil-seeds.  Domestic 
production is equivalent on average to 20-25 per cent of Swiss consumption of vegetable oils and fats. 
 
Production, trade and consumption  
(in tonnes) 
Year  Production Import Oil exports
Rapeseed 45,300 6,756 251 
Soya beans 5,900 43,877 51 2003 
Sunflower seed 17,330 8,683 745 
Rapeseed 57,420 10,381 213 
Soya beans 7,220 47,528 104 2004 
Sunflower seed 13,500 10,707 1,020 
 
VIII.  SUGAR BEET 
1. Title of the subsidy programme 
Transformation mandate for sugar refineries. 
 
2. Period covered 
2003-2004.  
 
3. General goal and/or purpose of the subsidy 
 The two sugar factories are committed to produce within 120,000 to 185,000 tons of sugar 
from domestic sugar beet.  Additionally, these two factories can produce 2,000 tons of sugar G/SCM/N/123/CHE 
Page 20  
 processed from organic farming sugar beet.  In order to fulfil this mandate, they obtain a fixed 
allowance of the Federal Government. 
4. Background and authority 
Art. 54 of the Agricultural Law of 29 April 1998 (SR 910.1). 
 
5. Form of the subsidy 
Fixed allowance for the production of sugar. 
6. How the subsidy is granted and to whom 
The fixed allowance is paid to the sugar factor ies.  If, after deduction of customs duty at the 
border, the average price of sugar is outside of the fork from 35 to 45 CHF/dt, the surplus or deficit is 
taken into account for the determination of the comp ensation in the following period.  In addition the 
following conditions apply to the factories: 
(a) They contract with the producer organiza tions the quantity necessary of sugar beets 
and the criteria of distribution among various producers. 
(b) They contract with the producers’ orga nizations the price and other conditions. 
(c) They sell at market prices manufactured sugar and the by-products resulting from the 
transformation of sugar beets. 
(d) They organize the processing at reduced cost 
The payments are made against the budget of  the Confederation for the following year. 
7. Amount of the subsidy per unit 
Year Total (thousands of CHF)  CHF per 100 kg. of domestic 
refined sugar 
2003 45,000 24 
2004 45,300 20 
 
8. Duration of the subsidy 
 The subsidy is paid for a period of 4 years (1 October 2003 – 30 September 2007) 
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
Production, trade and consumption of sugar (in tonnes)  
 
Year Production Imports4 Exports5 
2003 185,372 244,350 12,817 
2004 221,803 285,491 5,273 
                                                      
4 Customs tariff headings:1701.1100/1200/9100/9900/9991/9999. 
5 Id.  G/SCM/N/123/CHE 
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  IX. POTATOES 
1. Title of the subsidy programme 
Price support.   
 
2. Period covered 
2003-2004.   
 
3. General goal and/or purpose of the subsidy 
The potato culture must be maintained to ensure food security.   
 
At the time of good climatic conditions, overs upply negatively impacts producers’ revenues.  
In this case, the subsidies are used to promote the use of potatoes for human consumption or feed.   
 
4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy 
The subsidies take the following forms:   
 
Use of potatoes: subsidies for feed purposes (fresh potatoes), storage of table potatoes, 
transformation (dehydration) into feed products, as well as with export of seed of potatoes and of 
different potato products. 
6. How the subsidy is granted and to whom 
The types of subsidies are the following:   
 
The Confederation mandates the interested orga nizations to carry out development measures 
for potatoes, which cannot be sold on the market  and grants subsidies for that purpose.  The 
Confederation takes other measures to ensure use of  the potatoes harvest.  The subsidies and the other 
measures must aim at the adaptation of the potatoes production to the market potential. 
The export subsidies are paid directly to the exporters of potato products.   
 
Year  Millions CHF CHF / tons 
1. Mandate for the use of potatoes 18.0 131 
2. Mandate for the use of seed potatoes 2.3 745 
3. Export of potato products 0.9 180 2003 
4. Seed potato exports 0.3 408 
1. Mandate for the use of potatoes 17.9 155 
2. Mandate for the use of seed potatoes 2.0 618 
3. Export of potato products 0.5 180 2004 
4. Seed potato exports 0.6 464 G/SCM/N/123/CHE 
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7. Amount of the subsidy 
Utilisation of potatoes
 
(in thousands of CHF) 
Year Total expenses 
2003 21.8 
2004 21.6 
 
Amount per unit  
(CHF per tonne) 
Year Utilization of surpluses 
2003 148 
2004 178 
 
8. Duration of the subsidy 
 Subsidies for the use of the  campaign. 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
Production, trade and consumption  
(potatoes for human consumption, seed and fodder potatoes). 
 
(in thousands of tonnes) 
Year  Harvest Imports Exports Part  of harvest intended for domestic 
human consumption 
2003 458,000 35,676 2,779 279 
2004 526,000 40,490 2,868 ca. 280 
 X. FRUIT 
1. Title of the subsidy programme 
Valorisation of domestic production.   
 
2. Period covered 
2003-2004.   
 
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/123/CHE 
 Page 23 
 
  4. Background and authority 
Agriculture Law of 29 April 1998 (SR 910.1). 
5. Form of the subsidy  
The subsidies are granted in different  ways according to their nature:  
  Subsidies to promote the utilization of su rpluses.  These are primarily intended for 
manufacturers of concentrated fruit juice to cover the additional co sts resulting from the takeover of 
surpluses.  In addition, subs idies are paid to exporters in order to  allow for exports of surplus cherries 
and certain fruit products, in particular pip-fruit  juice concentrates to traditional markets.  The 
subsidies are fixed sums per unit, which ar e determined according to market conditions. 
 6. How the subsidy is granted and to whom 
See replies to Question 5.   
 
7. Amount of the subsidy per unit 
Total amount
 (in millions of CHF) 
 
Year Total 
2003 22.1 
2004 16.8 
 
Amount per unit  
 
The amounts per unit for the other measures mentioned cannot be shown because they vary 
too widely with conditions and with the market situation.  
8. Duration of the subsidy 
For the institutionalised measures during the peri od covered by the notification, see the replies 
to Question 5.  
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
The main effect of the subsidies is intended to  preserve and ensure agricultural incomes.  As 
per capita consumption of all forms of fruit is ve ry high in Switzerland, domestic production of fruit 
covers only about half of the country's requirements, according to the year. 
 
Production and trade
 
(thousands of tonnes) 
Year Production Imports 
 Total6 Of which apples Chapter 08 Heading 0808/0809
2003 176 123 447 62.8 
2004 195 140   456.2 72.1 
                                                      
6 Apples, pears, quinces, cherries, plums a nd prunes, apricots, peaches and berries. G/SCM/N/123/CHE 
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The quantities of fruit exported (Chapter 08) correspond to:  
 
2003:  3,265 tonnes 2004: 1,432 tonnes 
 XI. PROCESSED AGRICULTURAL PRODUCTS  
 
1. Title of the subsidy programme 
Export contributions.   
 2. Period covered 
2003-2004.   
 
3. General goal and/or purpose of the subsidy 
In order to place the Swiss foodstuffs industry on an equal footing with foreign competitors in 
respect of the cost of basic agricultural commoditi es used in the preparation of processed products, the 
Law mentioned below authorises the Government  to grant contributions on exports.   
 
4. Background and authority 
The Federal Law of 13 December 1974 on the import and export of processed agricultural 
products (SR: 362.111.72), which has been in force since 1 June 1976, and the Order of 
18 October 1995 regulating contributions to exports of processed agricultural products 
(SR: 632.111.723). 
 
5. Form of the subsidy 
The contributions are granted for the export of certain agricultural commodities (dairy 
products, egg products, cereal products, sugar and mol asses) where they are exported in the form of 
processed food products.  They are calculated on the basis of the difference between Swiss and 
foreign prices of agricultural commodities and acco rding to the quantity of agricultural commodities 
used in the manufacture of the goods exported.    
6. How the subsidy is granted and to whom 
The contributions are paid to manufacturers after export.  Requests for contributions may 
include exports made during a period of from one to twelve months.   
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized 
annual amount of the subsidy 
 The total amount of the contributions paid was: CHF 114.9 million in 2003 and CHF 114.9 
million in 2004.   Export contributions are calculated and fixed annually (and adapted periodically in the case of 
major changes in Swiss or foreign representative prices) for each of the principal agricultural 
commodities used by the foodstuffs industry on the basis of the difference between Swiss and foreign 
representative prices.  The amount per unit of processed products also depends on the quantities of 
agricultural commodities used in preparing the goods exported.  G/SCM/N/123/CHE 
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8. Duration of the subsidy and/or any other deadline connected with the subsidy 
 Export contributions have been in force since 1 June 1976.  The budget is allocated on an 
annual basis from 1 January to 31 December.  
9. Statistical data enabling the effects of the subsidy on trade to be assessed 
 Export contributions make it possible to put Swi ss firms in the same competitive situation on 
foreign markets as foreign firms as regards th e costs of purchasing the principal agricultural 
commodities.  
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