WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/141/Add.1 
16 February 2005 
 (05-0645) 
Trade Policy Review Body 
15 and 17 December 2004 Original:  English/ 
                 anglais/                  inglés 
  
TRADE POLICY REVIEW 
SWITZERLAND AND LIECHTENSTEIN 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mrs. Puangrat Asavapisit (Thailand) 
 This document contains the advance written questions, and replies provided by Switzerland 
and Liechtenstein.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
15 et 17 décembre 2004 
 
EXAMEN DES POLITIQUES COMMERCIALES 
SUISSE ET LIECHTENSTEIN  
Compte rendu de la réunion
 
Addendum  
Présidente:  S.E. Mme Puangrat Asavapisit (Thaïlande)  
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Suisse et le Liechtenstein.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
15 y 17 de diciembre de 2004 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
SUIZA Y LIECHTENSTEIN 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra. Puangrat Asavapisit (Tailandia) 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Suiza y Liechtenstein.1 
 
                                                      
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/141/Add.1 
Page 3 
 
 
 REPLIES BY SWITZERLAND TO 
THE QUESTIONS OF MEMBERS  
  REPORT BY THE GOVERNMENT OF SWITZERLAND 
 
I. GENERAL COMMENTS 
 
Australie 
1. Question  
The report by Switzerland and Liechtenstein states that Switzerland’s policy on preferential trade 
agreements is to eradicate discrimination ag ainst Swiss exporters resulting from third party 
agreements (page 6, paras 9-10).    Can Switzerland advise the level of  discrimination against third c ountry exporters resulting from its 
own preferential trade agreements ?  
 
Réponse  
Taking into account the low MFN tariff rates applied by Switzerl and on industrial products, the 
level of discrimination against third country exporters resulting from the preferential trade Agreements concluded by Switzerland together wi th the other EFTA States is very limited. 
With regard to agricultural products, the lists of the concessions granted under preferential 
bilateral arrangements concluded in para llel to the EFTA Free Trade Agreement vary 
according to the specific interests of the parties involved. 
 
2. Question  
FTAs negotiated between EFTA and third countries (out side the EC) do not address agricultural trade, 
which are instead covered in bilateral agreemen ts.  How many separate bilateral agreements does 
Switzerland have in place covering agriculture?  What is the nature and extent of the coverage of 
agriculture products in these agreements ?  
Réponse  
At present [13 December 2004], twelve bilateral agricultural arrangements, accompanying the 
respective EFTA Free Trade Agreements, are in force. The coverage of the various bilateral 
agriculture arrangements varies. All bilateral agricultural arrangements are published and can 
be consulted on the web page of the EFTA Secretariat (www.efta.int). 
 
II. ECONOMIC ENVIRONMENT 
 
 (1) E
CONOMIC AND MACROECONOMIC POLICY DEVELOPMENTS  
  (i) E CONOMIC TRENDS  
  (ii) Foreign trade   (iii) Foreign direct investment flow 
  (iv) Macroeconomic policies 
  (v) Economic outlook and risks  (2) M
AIN AIM OF THE STRUCTURAL REFORMS : TO STRENGTHEN SWISS 
ECONOMIC GROWTH  
 
3. Question  
The report by Switzerland and Liechtenstein notes that one of the aims of the 17 measures for 
economic growth approved by the Fe deral Council is to improve productivity in agriculture (page 11, 
para 33). WT/TPR/M/141/Add.1 
Page 4  
 
Does Switzerland consider that lower tariff barriers ag ainst imports could contribute to its agricultural 
productivity goals ?  
Réponse  
Yes. Switzerland is therefore ready to reduce its border protection substantially. Therefore, the 
question about how important this reduction coul d be is an issue under negociation in the DDA. 
 
Taipeh Chine 
4. Question  
Being a country with high external competitiven ess, a balance of payments surplus and a strong 
currency, yet weak economic growth, the Swiss gove rnment has recognized the necessity of domestic 
structural reforms to strengthen productivity, and thus enhance the growth capacity of the whole 
economy. Swiss reform policy focuses on four aspect s, namely: production efficiency; labour input; 
innovation and; the impact of the State in the economy.   
With respect to these, how does the Swiss government  view the outcome of the referendum held on 
28 November on two constitutional reforms of fiscal policy? Will the intended overhaul of the system 
of financial transfers help to mitig ate the high cumulative government debt? 
Réponse  
The Swiss government views the large popular ma jority in favour of the reform of financial 
equalisation and the allocation of tasks betwee n the Confederation and the cantons (RET) as a 
big step towards a more efficient production of public goods and services. The present system of 
financial equalization is mainly based on earm arked transfers between the Federal government 
and the cantons, and therefore is combined wi th the joint production of public goods and 
services. This system leads to adverse incentives in that the cantons can increase transfers from 
the Federal government by producing more of the afore-mentioned goods and services. Cantons 
therefore often increase their own spending or debt in order to direct a higher amount of 
federal transfers into the loca l economy. The RET abolishes these adverse incentives in two 
ways: First, the new financial equalization system  will be based on a new set of indicators and 
completely separated from the production of public goods and services. Second, the provision of 
several goods and services will eith er be concentrated at the level of the central government or 
entirely decentralized to the cantons. Especially  poorer cantons will benefit from an increase in 
financial resources and greater independence, whic h will lead to public goods and services that 
are more in line with local demand and financia l capacity. Furthermore, the increase in the 
amount of freely disposable financial resources wi ll allow cantons to lower taxes or reduce debt. 
With respect to the newly centralized tasks, the Federal government also expects efficiency 
gains, which will eventually lead to lower govern ment spending in the medium and long term. 
 
The other object (the new fiscal order) accepted by the Swiss people was - contrary to its name - 
not a reform of fiscal policy. The objective of  the Constitution’s modification was the 
prolongation of the Confederation’s right to co ntinue levying its two major taxes (and therefore 
to ensure the financing of its tasks). Accordin g to the Constitution, the two major taxes at 
federal level (VAT and federal income tax, wh ich represent around 60% of the total revenue at 
federal level) could be levied only up to the e nd of 2006. With the acceptance by the Swiss people 
of the modified constitutional provision, these two major taxes can be levied up to 2020. A change in the tax rates was not subject to vote.  5. Question  
As the Swiss people have for a long time rejected membership of the EEA or the EU, has the Swiss 
government come up with any long-term policies to c ope with the effects of not participating in the 
wide-ranging reform programmes adopted by those economic cooperation organizations and also to 
ensure that Swiss domestic institutions are in accord with international norms ? 
 WT/TPR/M/141/Add.1 
Page 5 
 
 
 Réponse  
It is the goal of the Swiss government to bring the first set of bilateral agreements to full blossom in the short run and to bring the second set  into force in the medium term. As regards 
the long term prospective, the Swiss governemnt is willing to publish in this legislature, i.e. 
before end of 2007, a report which shall try to formulate an outline of possible scenarios for its 
european policy. It is clear that the realisation of any ambitious approach to Europe needs at 
the same time a window of opportunity at the exte rnal front as well as the public support at the 
internal front. 
 
III. MAIN TRACKS OF RECENT AND CURRENT STRUCTURAL REFORMS 
AND OTHER PRIORITIES OF SWITZERLAND'S ECONOMIC POLICY 
 
 (1) Domestic Policy Areas   (i) Structural reforms  Canada 6. Question  
Paragraph 39 refers to the first phase of the railway re form. It notes that "open access can also be 
granted to foreign rail services, if certain cond itions are fulfilled”. What are these conditions ? 
 
Question No 18 (rapport de la Suisse, partie 3, domai ne de politique intérieure, réformes structurelles, 
paragraphe 39) : Quelles sont l es conditions devant être réunies pour qu’une entreprise ferroviaire 
étrangère obtienne l’accès au marché en Suisse  ? 
 Réponse  Le droit d’accès au réseau peut être accordé aux entreprises ferroviaires étrangères dans le 
cadre d’accords bilatéraux. De tels droits d’ accès réciproques sont notamment prévus dans 
l’accord sur les transports terrestres entre la Suisse et l’Union européenne. 
 Pour obtenir ces droits d’accès en Suisse, les entreprises ferroviaires de l’Union européenne 
doivent disposer d’une licence ainsi que d’un certificat de sécurité démontrant qu’elles 
remplissent certaines conditions.   La licence peut être délivrée par l’Etat membre dans lequel l’entreprise ferroviaire communautaire est établie. Ce document est reco nnu par la Suisse sur base de réciprocité. Le 
certificat de sécurité, par contre, doit être ob tenu auprès des autorités suisses. Ces documents 
prouvent que l’entreprise est organisée de mani ère adéquate et que le personnel ainsi que le 
matériel roulant répondent aux exigences de sécu rité sur les tronçons utilisés. En outre, ils 
démontrent que l’entreprise dispose d’une capa cité financière ainsi que d’une couverture 
d’assurance suffisantes et qu’elle respecte les dispositions du droit du travail. 
 
Corée 7.  Question  
According to the Government’s report, despite con tinuing liberalization efforts, fixed costs tend to 
remain higher than those in other countries. As a result, the Federal Council reportedly tries to 
liberalize access to the last kilometer. 
 Why are the fixed costs higher than they are in other countries?  
 
Could Switzerland explain more about how the access to the last kilometer will be liberalized?  Please inform us how much the price of fixed li ne services will be reduced as a result of the 
liberalization. 
 WT/TPR/M/141/Add.1 
Page 6  
 
Réponse  
Fixed costs as mentioned in para 38 of the Re port of  the Swiss Government rely to the 
provision of access to telecommunications networks  (e.g. access lines). The costs for fixed access 
lines are in Switzerland above the average of the EU member states (see below). This can 
partially be attributed to the fact that unbundling of local loop has not yet been implemented in 
practice. On the other hand, in some parts of  Switzerland new offers of telephony services via 
TV cable appear on the market, leading to lo wer access prices (e.g. Cablecom, CHF 20 monthly 
fee instead of CHF 25.25 for traditional telephony access).     However, by the date of 1 December 2003, an amendment to the decree of the Federal Council 
regarding Telecommunications Services ( SR 784.101.1) has entered into force, which provides 
telecommunications operators the legal right to  demand access to unbundled local loops (full 
access, shared line acces and bitstream access) fr om dominant operators on the basis of cost 
oriented prices. If such a demand is not fulf illed, the telecommunications operators can ask the 
Federal Communications Commission (ComCom) fo r a legally binding decision. The appealing 
body with regard to such a decision is the Fed eral Court. There is currently a case for granting 
cost oriented access to local loops pending in ComCom. The question of dominance with respect 
to local loop unbundling is being treated within this case.  On November 30
th 2004, the Federal Court has partially rejected the complaints for access to 
unbundled local loops (i.e. full access and shared line access) on the ground of an insufficient 
legal basis of the amended decree of the Federal Council.  
 
In parallel, the Federal Council has included the access to unbundled local loops in its proposal 
of an amended telecommunications act. The amendment of the telecommunications act is currently examined by the Swiss parliament. Depending on the ruling of the Swiss parliament, 
access to unbundled local loops will be granted on the basis of the amended telecommunications 
act.  
Regarding the evolution of  access prices for fixed lines, no previsions of the future pricing can 
be made at this stage. However, in comparison with EU-member states, the situation in 
Switzerland is as follows:  
(Source: http://www.bakom.ch/imperia/md/conte nt/deutsch/telecomdienste/marktanalysen/ 
9e.pdf, page 80) 
 
  WT/TPR/M/141/Add.1 
Page 7 
 
 
 
16.20
15.75
13.33
11.78
13.54
13.00
19.60
14.88
18.40
17.20
15.98
14.10
13.46
13.52
13.56
16.3422.49
14.5716.50
16.02
16.3413.5613.5213.4614.6415.9817.7918.4013.0014.6411.7813.72
024681012141618202224
BD KDE L E FI R LI LN LA P F N SU K C HAug 2002
Aug 2003Residential monthly rental
EU 15 Aug 2003€, VAT include d
Source for Switzerland: OFCOM Switzerland
 
When comparing charges for a fixed line national  telephone calls between Switzerland and the 
EU member states, the situation, as a result of fierce competition, is as follows:  
(Source: http://www.bakom.ch/imperia/md/conte nt/deutsch/telecomdienste/marktanalysen/ 
9e.pdf, page 86) 
9.3
12.3
13.5
17.9
20.1
19.8
28.1
24.5
31.6
32.6
35.4
33.9
39.8
36.9
42.3
19.424.5
24.59.3
12.3
19.442.336.934.433.933.332.631.620.420.118.413.5
0.05.010.015.020.025.030.035.040.045.0
L S DK NL A B IRL EL FIN F E UK P D I CHAug 2002
Aug 2003National call charge, 3 min
EU 15 Aug 2003€ cents, VAT include d
Source for Switzerland: OFCOM Switzerland
 WT/TPR/M/141/Add.1 
Page 8  
 
Australie 
8. Question  
Australia welcomes moves by the government of Switzerland to decouple domestic support from 
production (or sales) (page 13, para 43), but notes that  some direct payments to farmers remain linked 
to factors of production, such as labour (number of farm workers) or livestock feed (eg payments for 
cattle feed on a per cow basis).   
 Given that Switzerland aims to continue agri cultural policy reforms to improve agricultural 
productivity, are input-linked payments an appropriate  mechanism to encourage farmers to respond to 
market signals ? 
 
Réponse  
The payments refered to are not direct payments  linked to the number of farm workers, but 
they are family allowances whic h are the same for any Swiss fa mily. Contributions for keeping 
roughage eating animals are allocated to gu arantee the care of Swiss grassland through 
utilisation ("lawn mower"). They  are regionally diferentiated  maximal numbers of roughage 
eating animals per hectare. These two p ayments are not input-linked payments. 
 Switzerland does not apply input-linked payments any more.  9. Question  
Switzerland’s latest domestic support notification is fo r 1998, so it is difficult to determine to what 
extent Switzerland has fulfilled the objective of “r educing production-related support” (page 13, para 
43).   In the interim, can Switzerland advise how much of the SwF 4.6 billion maximum it has spent each 
year since 1998?   
 
Réponse  
Yes. Notifications with respect to domestic s upport measures will be provided by Switzerland 
and Liechtenstein to the WTO Secretariat in th e next few weeks. They will cover the period 
from 1999 to 2001.  
10. Question  
When will Switzerland, as the WTO member with  the fourth largest AMS entitlement, submit a 
complete WTO domestic support notification for the years since 1998, given the 1999 notification is now 5 years overdue?  
Réponse  
See also response to the question 14 posed by th e US. Notifications with respect to internal 
support measures will be provided by Switzerland and Liechtenstein to th e WTO Secretariat in 
the next few days. They will cover the period from 1999 to 2001. 
 
11. Question  
According to the International Sugar Organisati on trade statistics Switzerland exported 12,673 tonnes 
of white sugar in 2003.  Australia notes that Sw itzerland does not have an entitlement to use export 
subsidies for white sugar.    Can Switzerland explain how it was able to export su ch sugar without the use of export subsidies?  
Can Switzerland explain the essential elements of its sugar policy ? 
 
Réponse  
Since many years the Swiss sugar market price is  at more or less the same level as the sugar 
market price in the European Union. Exports of Swiss sugar, therefore, can be considered as WT/TPR/M/141/Add.1 
Page 9 
 
 
 free trade goods between Switzerland and the EU. Technically the exports are carried out under 
the "outward processing" system. Imports from the EC to Switzerland in 2003 amounted to 
some 235'000 tons of which more than half is  traded under the "inward processing" system.  
Switzerland's sugar policy is based on a performance order. The Swiss sugar factory (Zuckerfabriken Aarberg-Frauenfeld) is mandate d to produce less than a 100 % of the total 
domestic sugar consumption. The sugar factor y is responsible for  the production quantity 
management. Additional imports for the domestic  market have always been necessary and the 
degree of selfsuficiency achieves some 85 to 90 %. In addition, the EBA-initiative will eventually 
lead to the total abolition of the import duti es for LDC sugar. Currently the LDCs already take 
advantage of a dutyfree quota of 7'000 tons raw cane sugar. It is not envisaged to establish a 
commercial export market for Swiss sugar.  
  (ii) Other domestic policy priorities  
EC 
12. Question  
The EC agrees with Switzerland's
 assessment of the importance of the work of the World 
Commission on the Social Dimension of Globalisation in this area (as also discussed in the EC's own TPRM in October 2004) and the importance of getting the various follow-up initiatives, in which the 
participation of all concerned parties, including in ternational organisations and the WTO is vital, off 
the ground. The active support of the public sector is of course vital in this respect, and like 
Switzerland, the EC will also engage itself in this sense. 
 In the Government report prepared by Switzerland a nd Liechtenstein (page 18) there is a reference to 
Switzerland's
 approach to trade, social development and core labour standard and the need to address 
these issues cohesively.   
 
The EC should like to know how Switzerland has used  its trade policy instruments to promote this 
objective and does it plan to do so in the future?  
Réponse  
In the long term, trade contributes to prospe rity – if and when it complies with social, 
environmental and development policy requirement s. For this reason, Switzerland is strongly 
committed to ensuring that international trade takes into account all aspects of sustainable 
development.  Switzerland’s key propositions on coherence are: 
-  Guarantee the compatibility and equivalence of WTO regulations and of international 
  environmental treaties -  Internalise external costs through the po lluter pays principle and civil liability 
-  Apply the precautionary principle 
-  Increase market transparency, particular ly through clear, accountable and non-
 discriminatory information for consumers about the quality, origin and production 
 processes of goods 
-  Observe the core labour standards of the International Labour Organisation 
-  Promote Corporate Social Responsibility  in the private sector 
-  Apply life-cycle analysis to pr oduction and consumption processes. 
 
Developing and transition countries are largel y sceptical with regard to the linking up of 
sustainable development and trade; they susp ect hidden protectionist measures by rich 
countries. It is a fact that direct access of deve loping and transition countries to the markets of 
industrialised countries is hampered, and that th ey often lack the production capacity, know-
how and resources to respect enviro nmental and social norms.  WT/TPR/M/141/Add.1 
Page 10  
 
Switzerland, therefore, contributes to capacity-building and training measures as part of its 
development and cooperation work. It assists part ner countries in complying with international 
trade agreements as well as in formulating a nd communicating their own needs. Switzerland 
also helps developing and transition count ries to create more efficient and sustainable 
production methods, and to meet social and environmental norms.  
These efforts are part of the overall commitment of Switzerland to Sustainable Development. 
The Swiss Federal Constitution makes both imp licit and explicit reference to sustainable 
development in several of its articles. Indeed, its promotion is declared a national objective and 
all legislation, programmes, strategies and proj ects are to factor in sustainable development 
considerations. Key elements of sustainable de velopment are also embraced by the foreign 
policy objectives that are rooted in the Swiss constitution.   
The Swiss sustainable developm ent strategy (SDS) of 1997 was completely overhauled in 2002 in 
the run-up to the World Summit on Sustainable  Development (WSSD). The new Strategy is 
based on the provisions of the Federal Constitution and aims to integrate the principles of sustainable development into as many policy areas as possible. It also lays down the content and 
procedural framework for Switzerland’s sustaina ble development policy over the coming years. 
In addition to conceptual guidelines, the strate gy contains a total of 22 action programs in ten 
fields, many of which also address the intern ational level and cover to a large extent the 
Johannesburg Plan of Implementation, i. e. are also related to trade policy. 
 
Reference:  Sustainable Development Strategy 2002.  Report of the Swiss Federal Council. Bern. 
(http://www.are.admin.ch/are/en/nachhaltig/strategie/index.html)  
 
Taipeh Chine 
13. Question  
Switzerland believes that, within the framework of MEAs, the use of trade-related measures that are 
both non-discriminatory and non-protectionist, is in certain circumstances the best way of ensuring 
that environmental objectives will be met.  Since no  such trade measures are included in the current 
forms of the UNFCCC and the Kyoto Protocol, what is Switzerland’s position on the issue of whether 
trade measures should be included in the post-Kyoto Protocol climate regime ? 
 
Answer 
It is correct that no specific trade measure is defined in the Kyoto Protocol to achieve the 
objective to reduce greenhouse gas emissions. Ho wever, the Kyoto Protocol sets out types of 
measures and policies that can a nd must be adopted in pursuit of the objective. It contains a 
number of areas e.g. taxation, rules and standards ( Article 2.1 of the Protocol) out of which specific trade measures can be taken. In that sense, the Kyoto Protocol gives contracting parties 
some latidue with regard to the adoption of trade-related measures. It is, therefore, not 
necessary that more concrete trade measures are included in the post-Kyoto Protocol climate 
regime. 
 
14. Question  
As indicated in Paragraph 64 on page 17, the Kyot o Protocol was ratified by Switzerland in 2003. In 
order to reach the objective of reducing consumpt ion of fossil fuel stipulated in its Law on CO
2, 
Switzerland decided to introduce a tax incentive. We  would like to know when this incentive will be 
put in place, how it will function, and what industries will benefit from it.  
Answer 
If voluntary action seems unlikely to be sufficien t to reach the reduction targets, the Federal 
Council (executive power) will introduce a tax on fossil fuels as of 2004 earliest.  WT/TPR/M/141/Add.1 
Page 11 
 
 
 The government has not yet decided to introduce a tax incentive. There are four different 
options in consultation: 1. CO2-tax on transport fuels and combustibles. 2. CO2-tax on transport fuels and combustibles, whereas 2% of the tax revenue shall be used to 
buy foreign emission permits. 
3. CO2-tax on combustibles and a "climate penny" (= voluntary action to finance measures) on 
transport fuels. 4. No tax incentive, only "climate penny" on transport fuels. 
 
The government will reach a decision until spring 2005. 
 
The tax revenue of a CO2-tax shall be redistri buted to the general population and the business 
community in proportion to their original p ayments. The proportion returned to the general 
population shall be distributed uniformly to all natural persons. The proportion returned to the 
business community shall be distributed to empl oyers via the compensation funds of the Federal 
Old Age and Survivors' Insurance Fund in prop ortion to the salaries paid to employees. 
 According to article 9 of the CO2 Law, big emi tters, groups of companies, and energy intensive 
industries are entitled to exempt themselves fr om the tax signing a legally binding reduction 
commitment.  
  (2) Foreign policy areas 
  (i) Relations between Switzerland and the EU  
Australie 
15. Question  
In the report by Switzerland and Liechtenstein, Sw itzerland foreshadows consid eration by its Federal 
Council of a report on the advantages and disadvant ages of joining the EC (page 19, para 72).  
 Has Switzerland undertaken studies on the adjustment of levels of external protection in the event that 
Switzerland was to join the EC customs union?  Please explain, in general terms, the results of these 
studies. 
 
Answer  
No. Detailed studies haven't been carried out. Ov erall, there is a clear expectation that customs 
duties on industrial goods would somewhat incre ase while such on agricultural goods would 
decrease. The government expressed this expectatio n already in an answer to a parliamentary 
simple request in 1998 (Nr. 98.1046: Increased cu stoms duties in case of EU-accession by Ch. 
Blocher): http://www.pd.admin.ch/afs/data/f/gesch/1998/f_gesch_19981046.htm. 
 
  (ii) Free-trade agreements  
Taipeh Chine 
16. Question  
The Trade Policy Review report prepared by the Swis s government states that simultaneous to the EU 
enlargement, free trade agreements with eight ne w EU members were simultaneously terminated but 
that trade relations with those countries were ma intained on the basis of the free trade agreement 
signed between the EFTA and the EU.  How will Sw itzerland deal with possible differences arising 
from commitments related to the service sector?  Will Switzerland request negotiations with the EU 
on reparations ?  
 
 WT/TPR/M/141/Add.1 
Page 12  
 
Answer  
Overall, the Free trade agreements, which Switzerl and had through EFTA with 8 of the 10 new 
EU member states until those countries became member states of EU, didn't forsee any higher degree of liberalisation for the sector of services than what is the benchmark between Switzerland and the EU itself. Therefore, there is no room for a negotiation on compensation. 
 
  (iii) EFTA/Stockholm Convention internal relations   (iv) Cooperation with deve loping and transition coutries 
 
Australie 
17. Question  
The report by Switzerland and Liechtenstein states that Switzerland has made priority commitments to 
reduce export subsidies (page 22, para 86).   Can Switzerland please advise how much has been spen t on export subsidies since 2000 and when it 
plans to submit its overdue export subsidy notification? 
 
Réponse  
See also response to question 17 posed by th e US and question 15 posed by Costa Rica 
 The notification of the agricultural export subs idies by Switzerland for 2001, 2002 and 2003 will 
be transmitted to the WTO Secretariat in the next few days. 
 
According to the last export subsidies notificati ons and those to be notified very soon, actual 
expenditures in 2003 were at 30% of the base period and 45% of the commitment level. 
 
EC 
18. Question  
Switzerland is one of the most active participants in the multilateral trading system. The EC considers 
that the WTO and multilateral liberalization is the mo st certain way for all countries to promote their 
interests, and to ensure that such  interests are promoted in an inclusive manner, reflecting the interests 
of all Members also when establishing a level “playing-field”. Noting the common interest in promoting a multilateral trade agenda, the EC should like to ask Switzerland the following. 
In paragraph 79 of the report prepared by Swit zerland and Liechtenstein there is mentioning of 
Switzerland’s arrangements with r espect to developing countries. 
 Could Switzerland please give some more detail s about the preferences granted to developing 
countries ? 
 
Answer  
In principle, all developing countries and count ries in transition are eligible for preferences 
under the Swiss Scheme, with the exception of countries and territories which have attained a high level of development. The exclusion is based on objective criteria.  GSP-benefits will not be 
granted to countries which are members of OECD or have free trade agreements with 
Switzerland.  Excluded are also countries and territories, which the Development Assistiance 
Committee (DAC) of the OECD has classified as a most advanced developing country or territory under Part II of its list of the development aid recipients. 
Agricultural products  – Switzerland grants preferences for a large number of agricultural 
products.  LDCs are exempt in most cases from an y duty in particular for tropical products. In 
2001, the Federal Council decided to gradually extend the zero duty scheme for LDCs to other 
agricultural products. As a result, on 1 January  2002 LDCs obtained an average reduction of 
30% of the normal rate of duty on all agricultura l products that previously did not benefit from 
any preferential reductions. On 1 April 2004, these rates of duty were again reduced by half so that LDCs have, thus far, benefited from prefere ntial reduction of the normal rate of between WT/TPR/M/141/Add.1 
Page 13 
 
 
 55% and 75%. In addition, the Federal Council continues to pursue his goal of introducing a 
zero duty scheme for LDCs in the medium-term. Th e Federal Parliament is expected to take a 
decision in this regard in 2006.  Industrial Products – Switzerland grants preferen ces to all industrial products liable to duty.  
The products covered by this system are admi tted duty free with the exception of textiles and 
clothing on which, however, preferential reduc tions amounting to 50% of the normal rate are 
granted. Switzerland does not apply any quotas. The LDCs benefit from exemption of duty on all industrial products.   
   (v) Customs measures 
  (vi) Rules and disciplines   (vii) Exports promotion  
IV. SWISS POSITION IN THE DOHA MULTILATERAL TRADE NEGOTIATION 
ROUND 
 
 (1) G
ENERAL APPROACH TO TRADE POLICY  
 (2) S WITZERLAND AND THE DOHA DEVELOPMENT AGENDA  
 Australie 19. Question  
The report by Switzerland and Liechtenstein states that  Switzerland’s agricultural policy reform takes 
account of non-trade-related aspects of agriculture , these being: food security, protection of the 
environment and the countryside, animal welfare,  consumer information on production methods and 
the protection of geographical indications (page 25, para 103).   
 
Could Switzerland explain how current import barriers contribute to these goals?  
Réponse: See also response on question 5 posed by New Zealand.  
Le gouvernement suisse dédommage une part de ses considérations autres que d'ordre commercial au moyen de la boîte verte, notamme nt celles qui ont trait à l'utilisation écologique 
des ressources et au bien-être animal. L'attribut ion de paiements de soutien découplés de la 
production, dont l'importance croît au fur et à mesure des réformes de la politique agricole, 
sont par ailleurs dépendantes du respect de prestations écologiques requises. Ces mesures 
dédommagent la production de biens non ma rchands que l'agriculutre produit et que le 
contribuable est disposé à payer puisqu'un articl e constitutionnel définit le rôle de la 
Confédération hélvétique en regard de la conduite de la politique agricole. 
 Toutefois, certaines considérations autres que d' ordre commercial ne peuvent pas être adressées 
par ces mesures. Il s'agit de celles qui ont trait à la production de biens marchands. En effet la 
sécurité des aliments, l'extension de l'application des dispositions liées aux indications géographiqes à tous les produits agricoles ou encore l'information des consommateurs sur les 
méthodes de production de ces biens sont des qu estions qui n'ont pas encore été réglées de façon 
adéquate au niveau international. Vu ce qui précède, la protection à la frontière demeure un 
instument adéquat pour la prise en compte de ce type de considérations autres que d'ordre 
commercial.   WT/TPR/M/141/Add.1 
Page 14  
 
REPORT BY THE SECRETARIAT 
 
SUMMARY OBSERVATIONS 
 
 (1) M
AIN ECONOMIC DEVELOPMENTS  
 (2) T RADE AND FOREIGN INVESTMENT REGIME  
 
Brésil 
20. Question  
On page 7, it is stated that Switzerland has sev eral bilateral agreements to promote market 
liberalization, including a group of agreements with  the EU, entered into force in 2002, and the free 
movement of persons is one of the issues. In a ddition, on page 22, on the WTO environment, it is 
stated that “in services, Switzerland is strongly co mmitted to improved market access, and to the non 
exclusion, a priori, of any sector or mode fro m the negotiations”. Brazil would like to know if 
Switzerland intends to improve its commitments for Mode 4, in the multilateral trade liberalization. 
 
Réponse  
Les négociations du DOHA Round détermineront la manière de progresser dans ce domaine. 
 
 (3) T RADE POLICY INSTRUMENTS  
 (4) S ECTORAL POLICIES  
 
Brésil 
21. Question  
In document WT/TPR/S/141, on page 09, it is stat ed that “telecommunications and postal services are 
two areas where significant market opening laws a nd regulations have been implemented on an MFN 
basis”. Considering Swisscom’s de facto  monopoly over certain important services (leased lines and 
local loop) and also some postal services under the state monopoly in Switzerland and Liechtenstein, how significant is the market opening?  
Réponse  
Depuis le 1er janvier 2004 le marché des colis est entièrement ouvert à la concurrence. Seuls les 
marchés des lettres domestiques et des lettres entr ant en Suisse sont encore sous monopole : le 
marché des lettres sortant de Suisse est enti èrement ouvert à la concurrence depuis le 
1er janvier 1998.  Il est prévu de réduire le mo nopole des lettres domestiques et entrant à 100g 
dès le 1er janvier 2006 : ce marché sera donc part iellement ouvert à la concurrence à cette date. 
 
Regarding telecommunications services, the ma rket opening the sector is indeed very 
significant. This can be demonstrated by the fact, that by mid 2003, 110 fixed telephony operators were officially announced and 29 public voice operators were effectively active on the 
Swiss telecommunications market place
1. Furthermore by the end of 2002, Swisscom held   only 
47.6% of the international voice telephony market, 51.1% of the long distance calls market and 67.3% market share of local calls (based on revenues)
2.  
 
Regarding the mentioned de facto monopoly ov er leased lines and local loops, the Federal 
Council has included the access to unbundled local l oops and leased lines in its proposal of an 
amended telecommunications act. The amendment of the telecommunications act is currently treated by the Swiss parliament. Depending on the ruling of the Swiss parliament, access to 
                                                     
 
1 See http://www.bakom.ch/imperia/md/content/english/telecomdienste/marketanalysis/9th.pdf, 
page 15 and 16. 
2 See http://www.bakom.ch/imperia/md/content/english/telecomdienste/marketanalysis/9th.pdf, 
page 19. WT/TPR/M/141/Add.1 
Page 15 
 
 
 unbundled local loops and leased lines will be granted on the basis of the amended 
telecommunications act. 
 
 (5) T RADE POLICY AND TRADING PARTNERS  
 
I. ECONOMIC ENVIRONMENT 
 
 (1) I NTRODUCTION  
 (2) R ECENT ECONOMIC DEVELOPMENTS  
 ( I) M ACROECONOMIC DEVELOPMENTS  
  (i) S ECTORAL DEVELOPMENTS  
  (iii) B ALANCE OF PAYMENTS  
 (3) D EVELOPMENTS IN TRADE  
  (i) Switzerland   (ii) Liechtenstein 
  (iii) Trade in services 
  (iv) Foreign direct investment  
Taipeh Chine 
22. Question  
According to the report by the Secretariat, Switzer land's outward FDI is far greater than its inward 
FDI. In view of this situation, we would like to ask Switzerland for further clarification on the 
following points:  Has Switzerland assessed the impact of this situati on on its balance of paymen ts and future industrial 
development? 
 
Réponse  
L’accroissement du volume des investissement directs – et des investissements dits de portefeuille – est une des caractéristiques principa les de la mondialisation. Les entreprises sont 
devenues plus libres dans le choix de leurs implantations. Et le secteur des services – qui dépend davantage d’une présence locale que l’i ndustrie - est devenu plus important.   
 
Les entreprises suisses sont très conscientes des op portunités offertes par la mondialisation et le 
gouvernement considère l’accroissement des inve stissements directs à l’étranger auxquelles elles 
ont procédé comme un signe de force. L’accroi ssement est pris comme indicateur que les 
entreprises suisses ont un savoir faire entrepre neurial à proposer dont il vaut la peine de 
l’appliquer dans des succursales à l’étranger é galement. Notons notamment que la prestation 
des services, une caractéristique de la Suisse, n’ est souvent pas possible sans présence locale. 
Notons également que l’actionnariat de ces soci étés suisses peut être très international. Le 
montant des FDI ne reflète donc pas nécessairem ent des facteurs macroéconomiques,  bien que 
les investissements directs participent à l’export ation de notre traditionnel excédent d’épargne. 
L’exportation de ce dernier est d’ailleurs sout enu par les avantages de la Suisse en matière de 
taux d’intérêt bas, un autre indicateur que le  secteur privé épuise bien les possibilités 
d’investissements en Suisse. Il est aussi à noter que le stock brut d’investissements directs et la fortune nette du pays à l’étranger sont du même or dre de grandeur que le PIB d’une année. Vu 
ces proportions, le seul fait de réinvestir l es rendements de capital gagnés sur les avoirs à 
l’étranger contribue à un accroissement régulier de la fortune extérieure du pays. Ne pas 
vouloir rapatrier ces rendements (inscrits dans la balance courante) est approprié dans une 
société vieillissante;  cette décision intervie nt d’ailleurs quasi auto matiquement du fait des 
différences de taux d’intérêt déjà mentionnées.   WT/TPR/M/141/Add.1 
Page 16  
 
Etant donné que le solde la balance courante est  – depuis les années septante – de plus en plus 
influencé par l’excédent de la balance des revenus  sur capital, et qu’un réinvestissement de ce 
solde à l’étranger paraît raisonnable, nous juge ons plus utile de procéder à l’analyse de la 
balance courante en excluant le solde de la balance des revenus sur capital (voir graphique 
annexé).  Dans ce cas il n’y a plus de tendance à la hausse dans le solde de la balance courante. 
Comme pour d’autres économies, cette balance est  en déficit dans les périodes de croissance 
forte et en excédant dans les périodes à croissance faible à l’intérieur du pays. Ajoutons que les périodes de croissance forte ne sont pas fo rcément les périodes les plus heureuses pour 
l’économie suisse, car l’accroissement de la productivité par tête – à la base des hausses 
salariales - n’a pas été plus élevé au co urs des années ’80 que des années ’90.   
 
L’importance de la balance des revenus sur capital dans la balance courante  
 
-100102030405060
1947 19491951 1953
1955 1957 19591961 1963
1965 1967
19691971 19731975 19771979 1981
1983 1985 19871989 1991
1993 1995
19971999 20012003Mrd. CHF
Solde de la balance des transactions courantes
Solde de la balance des transactions courantes
Solde des revenus du capital
 
 
23. Question  
Has Switzerland instituted any measures to guide an d assist outward investment? If so, please provide 
a detailed explanation of those measures. The United States and Europe remain the main recipients of Switzerland's outward investment.  Has Switzerland adopted any outward investment policy measures 
in response to the rapid development of Asian economies in recent years? 
 Réponse  For many years Switzerland has financed matchmaking activities to foster investments towards 
developing and transition countries. These activi ties are financed under the Swiss Development 
assistance (ODA) budget. Since 1997, this programme of "Investment promotion" is implemented through SOFI - Swiss Organisation for Facilitating Investments - with a yearly 
budget of CHF 4,5 mio and concerns 27 countries or regions including China, India, Indonesia 
and Vietnam for the Asia continent.   As per the SOFI website (www.sofi.ch), the project content is as follows:  SOFI was created in 1997 on the initiative of  the Swiss State Secretariat for Economic Affairs 
(seco) in cooperation with KPMG. SOFI’s role  is to promote investment projects between WT/TPR/M/141/Add.1 
Page 17 
 
 
 companies in Switzerland and OECD countries, a nd counterparts in countries with developing 
and transition economies, and to enable the tr ansfer of capital, technological expertise and 
managerial know-how through this process. SOFI  is a one-stop-shop providing companies the 
full range of services required to meet challenges, from the birth of an investment idea to the 
successful implementation of an investment project. 
 
Activities cover 1) investment promotion (eg. conferences and seminars, organisation of business 
missions, publications) 2) information gathering (eg. investment opportunities, financing sources), 3) partner search (identifying, screening and selecting partners, due diligence), 4) consulting (eg. market entry strategies, business planning and financing options). They   are 
provided free of charge to the clients for target  priority countries, unless a customised approach 
is required and then provided on a commercial basis.  Réponse  Switzerland has an Investment Risk Guarantee Agency where coverage against political risks 
for foreign investments is available. However, as  of late there was no demand for coverage. This 
is probably due to the fact that more advanteageous alternatives are available to private investors (e.g. the Multilateral Investment Gu arantee Agreement of the World Bank).  This 
instrument will be reviewed shortly to decide whether it should be continued or adapted. 
 
24. Question  
Two factors that have possibly caused Swiss manuf acturers to move their production bases overseas 
and resulted in a corresponding decline in inward fore ign investment are the high cost of Swiss labor 
and the high cost of investment brought about by commodity prices. Does Switzerland have any concrete methods and countermeasures to deal with  this situation (such as the strengthening of 
measures to attract foreign investment, and the pinpointing of key industries for such efforts)?  
 
Réponse  
According to a German Research Institute, w age costs per hour are not the highest in 
Switzerland, compared to other continental Eu ropean countries. The reason is that working 
hours in Switzerland are longer a nd non wage labor costs lower th an, for instance, in Germany. 
We also have to consider the low unemployment rate. This indicates that our labor market is 
clearing, and that the efficiency of labor justifies the high wage rate. This is of course not in all 
parts of the economy always the case. In such  cases  the government accepts the international 
division of labor which is behind de-localizations  occurring in such instances. We refrain from 
pinpointing key industries by any kind of industrial policy. The importance of measures promoting a location in Switzerland are by inte rnational standards low. As a destination for 
FDI, Switzerland is rather important, compared  to its size (rank 15), but of course not as 
important as a source of FDI. The importance of inward FDI reflects generally favorable framework conditions.  
  (v) Outlook  
 II. TRADE AND INVESTMENT REGIMES 
 
 (1) G
ENERAL FRAMEWORK  
 (2) A GENCIES INVOLVED IN TRADE POLICY IMPLEMENTATION  
 (3) T RADE POLICY OBJECTIVES  
 (4) T RADE AGREEMENTS AND ARRANGEMENTS  
  (i) WTO   (ii) R
EGIONAL AND BILATERAL AGREEMENTS  
 WT/TPR/M/141/Add.1 
Page 18  
 
Japon 
25. Question  
Concerning the EFTA of which Switzerland and Lichtenstein are both members: 
Please indicate which areas are specifically included in trade in services.  Réponse  The EFTA Convention does not exclude any services sector nor mode. 
 
26. Question  
Please indicate whether the local juridical pe rsons of Japanese enterprises in Switzerland 
are treated the same as enterprises in Switzerland. 
 
Réponse  
Yes, but some exceptions are mentioned in the GATS schedule of commitments (e.g. purchase of 
real estate). 
27. Question  
Please also indicate whether the local branches of Japanese enterprises in Switzerland are treated the 
same as enterprises in Switzerland.  
Réponse  
Yes, but some exceptions are mentioned in the GATS schedule of commitments (e.g. purchase of 
real estate). 
Research
 (p.32, paras.45 to p.33, para.48)  
28. Question  
Japan recognizes that the FP6 can assist  with joint research in private or  public research institutions of 
more than two countries in the EU. 
Please indicate whether the FP6 can assist with joint research in private or public research institutions 
of a country within the EU, Switzerland and Japan. 
Are there any support programmes for joint research  between institutions of Japan and Switzerland 
other than the FP6? If so, please indicate the specific content of the programmes, including requirements for assistance.  Réponse  There are currently no common research programs between Switzerland and Japan, but this could change in the future, namely with the si gning of a R&D cooperation agreement next year.  
 Both countries participate in the Human Frontier Science Program (HFSP). 
 
Free movement of persons
 (p.33, paras.49 to 53)  
29. Question  
Concerning the application for the “L” visa which given permission for short-term stay in 
Switzerland, it is reported that there have been some cases of refusal for the visa and discriminate 
treatment for Japanese applicants since the enforcement of the agreement on free movement of 
persons between Switzerland and the EU in June 20 02. Such cases were rare before the enforcement 
of this agreement. In this regard, Japan hopes for an improvement of the current situation. 
Regarding this point, please explain specifically  the background of the current situation. 
 
Réponse  
Switzerland has not changed its admission practi ce since the enforcement of the agreement on 
free movement of persons between Swizerland and the EU in June 2002. There are no cases of discrimination known to the federal authorities. 
 WT/TPR/M/141/Add.1 
Page 19 
 
 
 Australie 
30. Question  
The Secretariat report notes that Switzerland and th e EC reached political agreement on a second set 
of bilateral agreements in Ma y 2004 (page 29, para 28).   
Can Switzerland advise which processed agricultural products are covered by the new agreements?  
When will the agreement on processed agri cultural products enter into force? 
 
Réponse  
The entry into force is foreseen for February 1, 2005. As regards the coverage of the agreement, 
please see: http://www.bk.admin.ch/ch/f/ff/2004/5927.pdf. 
 
EC 
31. Question  
(EEA) In the report prepared by the WTO secretar iat, Point II.23 (p.27-28): In addition to the 
explanations given in Box II.1 c ould Liechtenstein and Switzerland  explain the procedures for 
establishing differences in technical regulations, in order to justify the app lication of the Market 
control and Surveillance Mechanism.  
Réponse   
In addition to the explanations given in Box II.1 concerning Liechtenstein’s Market Control and 
Surveillance Mechanism, Liechtenstein and Swit zerland are asked “to explain the procedures 
for establishing differences in technical regulations, in order to justify the application of the 
Market Control and Surveillance Mechanism”(MCSM ). 
 As explained in the text in Box II.1, the MCSM applies to professional traders for products imported from an EEA country into Liechte nstein for which Swiss and EEA technical 
regulations are different and which, therefore, co uld not be marketed “tel quel” in Switzerland. 
In practical terms, only few product groups are concerned, e.g. foodstuffs, chemicals (mainly for 
use in construction) or medicinal products.  The selection procedure for imports on which the MCSM is applied works as follows: The Liechtenstein Office for Customs Affairs and th e Swiss Customs Administration have together 
established an exhaustive list of all chapters and tariff headings (HS headings) covering 
products possibly subject to the MCSM. The Sw iss Customs Administration reports all imports 
containing products covered by this list to the Liechtenstein Office for Customs Affairs by 
sending a copy of the import declaration (95 % electronically). The information received by the 
Liechtenstein Office for Customs Affairs is then further and in much detail scrutinised 
electronically (electronic selection programme) based on a number of well defined selection 
criteria. Any product possibly falling under the MC SM is singled out resulting in a relatively 
high number of cases. For reasons of security these cases are followed up with the importers 
through the competent Liechtenstein Offices (e .g. Office of Food Inspection, Office of 
Environmental Protection). But finally, only very  few of these cases call for action, i.e. to 
ascertain that the imported product is fully consum ed in Liechtenstein, or reexported into the 
EEA or in the case of a possible full or partial u se in or export to Switzerland to guarantee that 
the product fulfills all requirements for its marketability in Switzerland 
 
Singapore 
32. Question  
In relation to government procurement, chapter 2, paragraph 36 of the WTO Secretariat report states 
that "Service providers that are in competition in liberalized sectors in par ticular geographic areas are 
exempt from the obligation to appl y public procurement rules."  Could Switzerland please elaborate? 
 WT/TPR/M/141/Add.1 
Page 20  
 
Réponse  
En relation avec les marchés publics, la phrase "les fournisseurs de services exposés à la 
concurrence sur des segments de marchés libéralisés dans des zones géographiques déterminées ne 
sont pas tenus d'appliquer les règles visant les marchés publics"  du chapitre II, paragraphe 36 du 
rapport du secrétariat de l'OMC appelle les explications suivantes: 
 
Depuis le 1
er janvier 1996, l’Accord de l’OMC sur les marchés publics est en vigueur. Il soumet 
la Confédération, les cantons et les entreprises publiques de fourniture d’eau et d’électricité, 
ainsi que celles de transport, aux règles de l’OM C concernant les appels d’offres et l’attribution 
de marchés, si le volume des travaux dépasse certaines valeurs-seuil. 
 
L’Accord entre la Suisse et l’UE sur les marchés  publics (Accord bilatéral), entré en vigueur le 
1er juin 2002, étend le champ d’application de l’Accord de l’OMC sur les marchés publics aux 
secteurs des télécommunications, du trafic ferrovi aire, aux autres entreprises fournissant de 
l’énergie, ainsi qu’aux communes et aux entreprises privées concessionnaires qui, en vertu d’un 
droit particulier ou exclusif, exercent une  activité dans les domaines cités. 
 L'Accord bilatéral prévoit en outre la possi bilité de soustraire aux règles sur les marchés 
publics les entités – uniquement de l'Accord bila téral – qui sont en concurrence avec d'autres 
entités libres d'offrir les mêmes services dans la même aire géographique à des conditions substantiellement identiques. Ainsi, l’Accord bilatéral prévoit que les marchés publics 
concernant des secteurs où la concurrence règne  manifestement ne soient pas soumis aux 
dispositions de l’Accord bilatéral, puisque la concurrence garantit qu’ils sont attribués selon des 
critères économiques. Lorsque le libre jeu de la concurrence est garanti, la Suisse et l'UE considèrent par conséquent que les marchés sero nt adjugés selon des critères économiques, ce 
qui rend superflue l'intervention de l'Etat. 
 
La Suisse et l’UE ont à cet égard entamé une procédure destinée à exclure formellement de l’Accord bilatéral le secteur des télécommunications. 
 
Thailand 
33. Question  
Switzerland, as a member of EFTA, is constantly  increasing its FTA negotiations. What criteria 
EFTA is using to select its FTA partners.  
Réponse  
Switzerland and the other EFTA States seek to conclude FTA with third countries whose 
markets are of particular economic and trade interest, in particular in order to avoid 
discrimination vis-à-vis other preferential part ners of EFTA States' export destinations.  
34. Question  
Could Switzerland explain the criteria used to gran t the work permit to third country nationals, for 
instance professional certification requirements ? 
Réponse 
The criteria used for work permits necessary for the categories of services providers seeking 
temporary entry to provide a service in Switzerland are set out in the schedule of GATS commitments.  The main criteria are in particular: 
•  annual quotas on the overall number of werk permits granted 
•  high level of qualifications WT/TPR/M/141/Add.1 
Page 21 
 
 
 • persons essential for the provision of a sp ecific service by reason of their knowledge and 
 at an advanced lever of expertise in the field of services, research equipment, techniques  or management of the enterprise 
•  years of pre-employment, and 
•  wage and employment conditions customary at the place. 
 The conditions to access the Swiss labour market - which lies outside the scope of GATS - are 
different. Switzeland applies a labour market test , giving priority to local job seekers. In 
addition, due to the bilateral agreements with  the EU and EFTA, Switzerland applies a dual 
recruitment system giving preference to EU/E FTA citizens over third country citizens.  
 The annual quota system for wo rk permits for third country  nationals are as follows: 
• 4'000 first time year-around residence permits for the duration of 1 year which in 
 principle can be extended every year 
• 5'000 short-time residence permits restricted to a period of 1 year for activities of 
 limited duration which may be extended upt to a maximum of 2 yeras. the above  mentioned number of quotas can be adjust ed anually by the Swiss Federal Council. 
  (iii) Trade disputes and consultations 
 (5) F
OREIGN INVESTMENT REGIMES  
  (i) Switzerland 
 
Japon 
Investment restrictions  (p.38, para.74)  
35. Question  
Please indicate specifically the content of the special  licensing provisions for the FDI stated in page 
38, paragraph 74 of the Secretariat Report, incl uding procedures other than the usual licensing 
provisions.  
Réponse  
The sectors named are sectors on which licensing  requirements do apply. The licences for 
activities mentioned in paragraph 74 are absolute ly usual and standard, hence no unusual types 
of licences or procedures are required. It means that no licensing is required in other sectors. 
The licenses are needed to check the profession al skills, quality and excellence of the service 
provider, chiefly aimed at adequate consumer and customer protection. 
 
Restrictions of the board of directors of a stock corporation
 (p.39, para.79)  
36. Question  
Article 708 of “Code des Obligations” in Switzerland requires that the majority of the board of 
directors of a stock corporation must be Swiss citizens with domicile in Switzerland. In establishing a stock corporation by a Japanese enterprise, it is rea lly very difficult to ensure suitable Swiss citizens 
for the majority of the board of directors. In usual cases, a Japanese enterprise selects some Swiss 
citizens for the majority of the board of directors as a matter of form. It is a burden for a Japanese 
enterprise to be obliged to pay for their salaries in  promoting investment in Switzerland. So Japan has 
requested the improvement of such requirement. In this regard, the Secretariat Report states in page 
39, paragraph 79 that a parliamentary procedure h as been launched with a view to eliminating the 
nationality requirements.  
Concerning the draft legislation that is expected to enter into force by 2007: 
Please indicate whether nationality requirements w ill be completely eliminated or partially 
deregulated. In the latter case, please indicate spec ifically the content of the deregulation. 
Please indicate how to deal with the requirement for domicile in Switzerland. WT/TPR/M/141/Add.1 
Page 22  
 
Please explain the reason why the year to enter into force is targeted at 2007. 
 
Réponse  
The restriction in question is a cornerstone of  the present legal framework relating to 
corporation law in Switzerland, which is ancho red in the Swiss Code of Obligations. In the 
context of the GATS negociations, Switzerland received some requests to relax this restriction. The Federal Council has submitted to the Parliame nt a "message" with a view to relax as much 
as possible the underlying legal provisions. Fur thermore, the Federal Council has indicated in 
the Initial GATS Offer that: "The revision of the underlying legislation has been launched. 
Possible improvement about nationality is subject to the outcome of the parliamentary 
legislative process". Switzerland is trying to acco modate requests by its trade partners to grant 
improved conditions relating to boards of directors of companies and consolidate this in GATS . 
Regarding the exact nature of the future improvem ent, the outcome is now in the hands of the 
Parliament. That said, Switzerland is well awar e that in the GATS context the nationality 
requirement has a particular focus and Switzerla nd is herself also expecting elimination of 
nationality requirements among the Membership. It is against this backgroud that Switzerland 
put the aforementionned entry in her Initial off er while the legislative procedure had just been 
launched. Regarding a possible date of entry into force, at this stage only an estimation can be 
made. The estimation cited in the question by Japan is based on the usual duration of a legislative process on such a legal provision. 
 
Brésil 
37. Question  
What is the percentage required to comply with th e nationality requirement of the board of directors 
of a stock corporation? (Chapter II (5)(i)(a); § 79; page 39) 
 
Réponse  
"The restriction in question is a cornerstone of the present legal framework relating to corporation law in Switzerland, which is ancho red in the Swiss Code of Obligations. In the 
context of the GATS negotiations, Switzerland rec eived some requests to relax this restriction. 
The Federal Council has submitted to the Parliame nt a "message" with a view to relax as much 
as possible the underlying legal provisions. Furthermore, the Federal Council has indicated in 
the Initial GATS Offer that: "The revision of the underlying legislation has been launched. Possible improvement about nationality is subject to the outcome of the parliamentary legislative process". Switzerland is trying to accommodate requests by its trade partners to 
grant improved conditions relating to boards of directors of companies and consolidate this in 
GATS . Regarding the exact nature of the future improvement, the outcome is now in the hands 
of the Parliament. That said, Switzerland is well aware that in the GATS context the nationality 
requirement has a particular focus and Switzerl and is herself also expecting elimination of 
nationality requirements among the Membership. It is against this background that Switzerland 
put the aforementioned entry in her Initial off er while the legislative procedure had just been 
launched. Regarding a possible date of entry into force, at this stage only an estimation can be 
made. The estimation cited in the question by Japan is based on the usual duration of a 
legislative process on such a legal provision." 
 
38. Question  
Is there any intention to extend the liberalizati on of the nationality requirement of the board of 
directors to others forms of business ownership, be yond the limited liability companies? (Chapter II 
(5)(i)(a); § 79; page 39)  
Réponse  
No. 
 WT/TPR/M/141/Add.1 
Page 23 
 
 
   (ii) Liechtenstein 
   (a) Non-financial sector    (b) Financial sector  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
 (1) O
VERVIEW  
 
New Zealand 
39. Question  
The Secretariat report observes that the common cu stoms tariff of Switzerland and Liechtenstein still 
consists entirely of specific duties. What is the rationale for maintaining a wholly specific tariff 
regime? Have Switzerland and Liech tenstein any plans to convert their specific tariffs to a more 
transparent ad valorem regime ?  
40. Question  
The Secretariat reports that 39% of tariff lines carry “nuisance” rates less or equal to 2% when 
converted to ad valorem equivalents.  Are there any plans for removing these tariffs? Have 
Switzerland and Liechtenstein conducted any studies in to the cost of collecting these tariffs, relative 
to any revenue gained ? 
Réponse  
Specific duties are consistent with art. II GATT . As for the conversion of specific duties and 
elimination of nuisance duties, the results of the current Doha negotiations will determine how 
progress can be achieved in this area. 
 
Australie 
41. Question  
The Secretariat report notes that substantial tax ex emptions are still granted by certain cantons in 
Switzerland to companies investing locally, and th at some of these exemptions are attributed 
exclusively to companies with no domestic sales (page 43, para 7). Could Switzerland explain the 
conditionality attached to tax exemptions by the cantons and the number and type of ‘export-only’ 
companies in receipt of such exemptions ?    Réponse  Les allégements fiscaux peuvent être accordés sur la base de l'Arrêté fédéral en faveur des zones 
économiques en redéploiement (RS 961.93), Les mo dalités d'application sont réglées par l'article 
23 alinéa 3 de la loi fédérale sur l'harmonisation  fiscale des impôts directs des cantons et des 
communes qui prévoit la possibilité d'accorder un allégement fiscal en faveur d'entreprises 
nouvellement créées qui servent l'in térêt économique des cantons. Cette disposition s'applique 
indifféremment aux entreprises suisses et étrangères.   En pratique, le pourcentage de l'exonération var ie en fonction de l'importance du projet pour 
l'économie régionale. Le principal critère d'appréc iation fixé par l'arrêté fédéral en faveur des 
zones économiques en redéploiement est la création d'emplois. Aucune condition n'est liée à 
l'exportation. L'article 3, alinéa 2 de l'ordo nnance sur l'aide en faveur des zones économiques 
en redéploiement (RS 951.931) précise que les ent reprises de services proc hes de la production 
doivent disposer d'un marché qui s'étend en dehors de la zone, c'est-à-dire de la région. Cette 
disposition s'applique uniquement aux entreprises de services proches de la production et non 
aux entreprises industrielles et a pour obj ectif d'exclure du cercle des bénéficiaires les 
entreprises de services locaux.  WT/TPR/M/141/Add.1 
Page 24  
 
Brésil 
42. Question  
§4, page 42 
What is the treatment of additional tares in Free Trade Agreements signed by Switzerland and Liechtenstein. 
Réponse  
As the additional tare is applied on duties levied , if the preferences accorded is zero duty, no 
tare can apply. If the concession given to a Free Trade Partner is a reduced duty rate, the additional tare is levied on the reduced rate. 
  (2) M
EASURES DIRECTLY AFFECTING IMPORTS  
 
Colombie 
43. Question  
a) Existe la posibilidad de un cambio en el cort o o mediano plazo hacia la tendencia mundial de 
aplicación de aranceles ad-valorem,  que permita co rregir las deficiencias en los niveles de protección 
efectiva diferentes para productos similares, el  acentuado escalonamiento arancelario en algunas 
industrias y en general, la falta de predictibilidad  y transparencia en el intercambio comercial? 
 
Réponse  See Answer to New Zealand (Question 46). 
 
44. Question  
b) El Informe de la Secretaría comenta que las deficiencias de distinta índole derivadas de la 
aplicación de aranceles específicos están siendo ana lizadas en el contexto de los esfuerzos de 
armonización de la legislación aduanera con la Unión Europea. Cuál es el alcance de dicha 
armonización? Qué avances se han dado sobre este particular? 
 
Réponse  
The Swiss customs code has been in fact to tally restructured and readapted. However, the 
legislation is not yet in force as the Parliame nt has still to approve it. The new Customs law 
takes over the main essence of the European Cu stoms Code. Especially the customs procedures 
will be the same. Minor differences are found in the tariff assessment. Ho wever, there is no 
change in system in the application of specific duties. 
 
45. Question  
c) El 99.7% de los productos están consolidados en la  OMC. Está pendiente de consolidar el petróleo 
crudo y el gas natural.  Por qué se mantienen si n consolidar estas líneas arancelarias si las 
importaciones hacen parte del régimen de franquicia arancelaria?  
Réponse  
At the moment the applied rates on these products are at 0 %. However, an internal consumption tax is levied. The results of the current Doha negotiations will determine how 
progress about consolidation can be achieved.  
46. Question  
d) Cuáles son los criterios y los requisitos para  acceder a la reducción de los aranceles de los 
productos utilizados como insumos, según se establece en una ordenanza de 1999? (párrafo 22 de la 
sección III, apartado 2, literal ii)). Se trata de una  reducción o de una eliminación de los aranceles?. 
Qué obligaciones deben cumplir los importador es a los que se le reducen los aranceles? 
 
 WT/TPR/M/141/Add.1 
Page 25 
 
 
 Réponse  
Il s’agit d'une réduction et non d’une abolition des tarifs («allégements douaniers selon l'emploi/engagement d'emploi»). Pour bénéfici er d’un tel allégement, il faut déposer un 
engagement d’emploi à la Direction générale des douanes. C'est un engagement de validité générale de la part du bénéficiaire de l'allégeme nt douanier, sans restriction de quantité, de 
durée ou de provenance de la marchandise. Le titulaire de l'engagement s'engage à utiliser la 
marchandise importée au taux de faveur pour une fin déterminée et à respecter les 
prescriptions douanières concernant les marcha ndises bénéficiant d'un allégement. Le site 
internet de l'Administration fédérale des douanes http://www.zoll.admin.ch/f/firmen/ 
import/revers/verwendungsverpflichtung.php four nit de plus amples renseignements sur les 
allégements douaniers selon l'emploi/engagement d'emploi.  Exemple: froment (blé) tendre pour 
la fabrication d’amidon (numéro du tarif 1001.9039).  
 
  (i) Registration, documentation, and customs procedures  Australie 
The Secretariat report notes that Switzerland and Li echtenstein levy only specific customs duties and 
have no specific legislation on customs valuation, but  that the use of specific duties does not avoid the 
need to assess customs value for internal taxation purposes (WT/TPR/S/141 page 43, para 9).   
 
47. Question  
What is the method of assessment of customs value for internal taxation purposes?  Does it 
correspond to the approach set down in GATT 1994 and the WTO Customs Valuation Agreement ? 
 
Réponse  
The methods of assessment of value for internal t axes is laid down in the respective Acts. (e.g. 
Article 30 of the Motor Vehicle Taxation Act of  21 June 1996) There is no direct connection to 
the WTO Customs Valuation Agreement. 
48. Question  
The Secretariat report notes that, in Switzerland,  unpacked goods and goods whose packaging does 
not provide ‘sufficient’ protection against trans port damage are liable to an ‘additional tare’ - a 
supplement in weight equal to the difference betw een gross and net weights (WT/TPR/S/141 page 43, 
para 10). Can Switzerland explain the rationale  for this customs tax on unpacked goods ? 
 
Réponse  
Goods imported to Switzerland are cleared on the basis of their gross weight (in most cases):  
this dutiable weight comprises the actual (net) we ight (the actual weight of the goods, and the 
weight of the supports and the immediate packin g materials), plus the weight of the packing 
material for protection during transport. (WT/TPR/S/141 page 43, para 10) 
In order to avoid circumventing the principle of clearing goods according of their gross weight 
and to ensure uniform application of the law an  “additonal tare” can be applied. The decision 
whether goods are sufficient protected during transp ort is made by Customs authorities, based 
on industry standards. 
The rate of additional tare is fixed individua lly for each HS heading number. The rates are 
published in the “Ordonnance sur la tare”, RS  632.13 and also available on the electronic 
Customs Tariff (www.tares.ch). WT/TPR/M/141/Add.1 
Page 26  
 
Colombie 
49. Question  
a) El documento de la Secretaría describe la ap licación de una “tara” adicional que se cobra en el 
proceso de despacho en aduana de las mercancías  importadas, cuando a juicio de las autoridades 
aduaneras las mercancías no están embaladas o su envase y embalaje no les brinda una protección 
“suficiente” durante el transporte.  
 La Enmienda de 2001 a la Ordenanza que contiene la medida de la “t ara” adicional, establece que la 
protección que brinda el embalaje es “suficiente” si satisface los requisitos aplicables al tipo de 
transporte en cuestión.  
 
En que norma se establecen cuáles son estos requisito s? Con que criterios se aplican?  Son de público 
conocimiento y de fácil aplicación? Procede recurso de apelación si el importador considera que el 
embalaje es “suficiente” y la  autoridad aduanera no?  
 Réponse  See also the reply to Australia. As mentioned in the report, the purpose of the modification of the “Ordonnance sur la tare” 
was to adapt changes in packaging and transportation methods. (e.g. road and air transports) The rates of additional tare remained unchanged.   
The decision whether goods are sufficient prot ected during transport is made by Customs 
authorities, based on industry standards. An appeal from the importer to such a decision is possible within 60 days after customs cleara nce, according to the standard appealing 
procedures. 
b) La Secretaría en su informe plantea que en gene ral los procedimientos de aduana parecen simples y 
transparentes y que en general los recursos de ap elación son escasos.  Sin embargo, se destaca que en 
Suiza el número de reclamos se ha incrementado en  los últimos cuatro años, debido a la introducción 
de un procedimiento de subasta para la asi gnación de los contingentes arancelarios.  
 
50. Question  
Pueden comentarnos las autorida des suizas cuáles fueron los resulta dos de los recursos en esta 
materia? 
 
Réponse  
L'Administration fédérale des douanes (AFD) ne tient pas de statistique spécifique par rapport 
à chaque thème spécifique (par exemple agriculture)  traité en matière de recours. Il est dès lors 
difficile de dire pour quel domaine particulier et  sur quels points précis l'instance de recours a 
tranché en faveur du recourant ou de l'AFD. Toutefois, par rapport à la question précise des cas de recours lors de la mise en vente aux enchère s des contingents, nous pouvons apporter les 
précisions suivantes:  Les recours n'ont pas été formés en relation av ec la mise au enchère elle-même, mais parce 
qu'une condition fixée pour pouvoir importer la  part de contingent enchérie n'a pas été 
respectée. En effet, pour pouvoir importer la part de contingent acquise, l'importation devait 
avoir lieu qu'après le versement du montant de l'e nchère. Or, dans les cas de recours en la 
matière, c'est ce délai qui n'a pas été respecté.  Une partie enchérie a été importée avant le 
paiement du montant de la vente avec pour conséquence une perception subséquente du taux 
hors contingent tarifaire pour ces importations anticipées. Les recours ont été formés contre 
cette perception subséquente. Tous les recourants  qui se sont opposés à cette perception ont été 
déboutés; aucun n'a obtenu gain de cause. 
 WT/TPR/M/141/Add.1 
Page 27 
 
 
   (ii) Tariffs, other duties, and taxes 
 
Japon 
Applied MFN tariffs  (p.44, paras.13 to p.51, para.29)  
51. Question  
Please indicate the following items on the average rate  of applied MFN tariffs per every year since 
1995: (i) all average rate (ii) each average rate at HS two-digit level (iii) ten items from the top of the highest average rate, including each specific rate per every year 
since 1995. 
 See the annexed tables at the end of this document. Due to the lack of electronic data available it is 
not possible to deliver datas before the year 2000.  Costa Rica 52. Question  
En la página 45, párrafo 16, del Informe de la Secr etaría se indica que el arancel de Suiza consiste 
exclusivamente de derechos arancelarios específicos,  por lo que los análisis se efectúan utilizando el 
cálculo de aranceles equivalentes ad-valorem. Se i ndica además, que entre las limitaciones del uso de 
aranceles específicos se encuentra que pueden dar se disparidades entre los niveles de protección para 
bienes similares, ya que el impacto del arancel será distinto en productos con peso diferente, incluso 
pertenecientes a una misma línea arancelaria ¿c ómo Suiza evita la discriminación entre bienes 
similares pero con distintas calidades y distintos pr ecios frente a la aplicación de aranceles específicos 
que castigan a los productores eficientes   Réponse  The Swiss tariff overall average (including preferent ial trade) is very low. Switzerland considers 
that the advantages and disadvantages of both specific and ad valorem duties are since long 
time established.  See also response to New Zealand under Trade po licies and practices by measure – overview. 
 
53. Question  
En la página 51, párrafo 29, del Informe de la Se cretaría se enumeran los países que a la fecha han 
sido graduados del Sistema Generalizado de Preferencias de Suiza.  En el marco del esquema SGP de Suiza, ¿contempla el mecanismo de graduación el retiro de preferencias a todos los sectores de un 
país, o estas preferencias pueden ser retiradas solamente con relación a determinados sectores?  
¿Cuáles son los criterios utilizados pa ra determinar la graduación?   
 
Réponse  
In principle, all developing countries and count ries in transition are eligible for preferences 
under the Swiss Scheme, with the exception of countries and territories which have attained a 
high level of development. The exclusion is based  on objective criteria. GSP-benefits will not be 
granted to countries which are members of OECD or have a free trade agreement with Switzerland. Excluded are also countries and territories which the Development Assistance 
Committee (DAC) of the OECD has classified as  a most advanced developing country or 
territory under Part II of its list of the development aid recipients. GSP-benefits are granted on 
country level not on sectorial level. 
 WT/TPR/M/141/Add.1 
Page 28  
 
Hong Kong, China 
54. Question  
We note that the customs tariff of Switzerland co mprises specific duties exclusively.  We are 
interested to know if Switzerland has any plan to  address the problems associated with specific duty 
rates (e.g. the disparate levels of protection affo rded to domestic production of similar goods.  Since 
the tariff in general is based on the weight of imported goods, its impact tends to be higher on 
relatively heavy and cheap goods than for expensive and light products within the same tariff lines).   
 
Réponse  
See Answer to New Zealand (Question 46). 
 
55. Question  
In 2004, 39% of Switzerland's tariff lines carry nuisance applied rates.  Does Switzerland have any 
plan to remove such rates for trade facilitation purpose ?  Réponse  See Answer to New Zealand (Question 46). 
 
56. Question  
(WT/TPR/S/141, P. viii, Para. 9; P. 46, Para. 19; and P. 107, Para. 48) 
We appreciate that Switzer land is maintaining generally low tari ff rates for non-agricultural products.  
In 2004, the average ad valorem equivalent of tariffs  on non-agricultural products is 2.3%.  However, 
the low average masks tari ff peaks on selected products (e.g. cert ain papers and textile products).  
Does Switzerland have any plan to reduce such tariff peaks ?  
Réponse  
The results of the current Doha negotiations will dermine how progress can be achieved in this 
area. 
 
USA 
The Secretariat Report notes in paragraph 31, page  52 that the VAT is refunded on inputs used for 
export production. 
 
57. Question  
Please confirm that there is a system in place to ensure that refunds are only made on inputs 
consumed for export production, in accordance w ith the Agreement on Subsidies and Countervailing 
Measures. 
Réponse  
VAT is a general excise tax imposed on all phases of production and distribution, as well as on imported goods, as well as on the domestic pr ovision of services and on those services supplied 
by enterprises which have their reg istered offices outside Switzerland. 
 Goods supplied abroad (export of goods) are also in principle liable for taxation. The same 
applies to services which are co nsidered to be supplied abroad. Meanwhile such operations are 
tax-exempt provided that the required proof can be  provided. That's why it can be said that 
exports are zero-rated.  The taxpayer may deduct tax in the VAT retu rn from goods purchased or imported and 
services used. By virtue of this so-called mechanis m of input tax-relief, a cumulative tax effect is 
avoided (taxed purchases and payment of tax on turnover). Therefore, the taxpayer can deduct the VAT paid on inputs used for export 
production as an input-tax in his VAT return, and as  the export is zero-rated, he doesn't have to 
pay the output tax. WT/TPR/M/141/Add.1 
Page 29 
 
 
 According to the footnote 1 of articl e 1 of the AGREEMENT ON SUBSIDIES AND 
COUNTERVAILING MEASURES shall not be deem ed to be a subsidy the exemption of an 
exported product from duties or taxes borne by  the like product when destined for domestic 
consumption, or the remission of such duties or  taxes in amounts not in excess of those which 
have accrued. The export of goods is only exempt from the amount of VAT borne by the like 
product destined for domestic consumption. Therefore, the VAT-exemption for exported goods 
is not considered as a subsidy and is not covered by this Agreement.  Australia 58. Question  
The Secretariat report notes that Switzerland increased applied tariffs on sugar in October 2002 as part 
of a reorganisation of compulsory reserve stocks (WT/TPR/S/141 page 44, para 14).   
Can Switzerland explain whether it considered opti ons other than tariff increases as part of its 
reorganisation of compulsory reserve stocks? W ill Switzerland be notifying the revised compulsory 
reserve stocks measure to the Committee on Agriculture? Will the tariff increase be temporary or 
permanent ? 
 
Réponse  
Switzerland levies Fr. 61.00 / 100 kg gross weight for sugar (duty plus fee for compulsory stock holding), which has been notified in the list LIX Switzerland – Liechtenstein. This levy is devided into two parts, the duty is a government receipt and the fee is used for the financing of 
the compulsory stocks. The compulsory stocks  of sugar were reduced and, therefore, less 
outlays were necessary for the stocks' financing. As per October 1, 2002, the part of the notified 
MFN-duty rate regarding the fee for compulsory stockholding was reduced to Fr. 14.00 / 100 kg 
gross weight and as a consequence the duty was increased accordingly. This adaption had no 
influece whatsoever on the MFN-duty rate as such . In addition, market access remained exactly 
the same, the reason why Switzerland does not en visage notifying  to change to the Committee 
on Agriculture. As a matter of fact, less expenditures are budgeted for the compulsory 
stockholding and as a consequence, another reduction of the fee and paralell increase in the duty has been introduced on October 1, 2004. There is no alternative planned with regard to the 
financing of the compulsory sugar stocks. 
 
59. Question  
The Secretariat report (WT/TPR/S/141)  states that 39% of tariffs bear non-zero rates, or ‘nuisance 
rates’, of less than 2% (WT/TPR/S/141 page 46, para 18).    What is the objective served by the continued le vying of duties at such low tariff rates?   
 
Réponse  
The applied specific duties are the outcome of th e various rounds in GATT. The results of the 
current Doha negotiations will determine how progress can be achieved in this area.  
 The Secretariat notes that Switzerland and Liechtenstein have a Generalised Scheme of 
Preferences (GSP) for developing countries and additional preferences for least developed 
countries (page 50, para 27). 
 
60. Question  
Does the GSP, and scheme of additional preferences for LDCs, contain any pr oduct exclusions or 
quota restrictions?  What is the average tariff a pplied against least developed countries in the 
agricultural sector after the reductions a nd other concessions are taken into account? 
 
 
 WT/TPR/M/141/Add.1 
Page 30  
 
Réponse 
Les préférences pour les LDCs n'excluent pas de produits et ne connaissent pas de quotas. Les 
réductions sont de 55% à 75% du tarif normal. 
61. Question  
Has Switzerland examined the possibility of accordi ng tariff and quota free access in all sectors to 
least developed countries?  What would be the impact on Switzerland’s agricultural sector arising 
from open access for least developed countries ?  
Réponse  
See answer to the question from EC (N° 18) in Part I of this document. 
 
Taipeh Chine 
62. Question  
Long-term efforts on trade liberalization on the part  of the Swiss government have resulted in the 
establishment of a system worthy of imitation.  However, according to Table III.1 in the Trade Policy 
Review report by the Secretariat, non- ad valorem  tariffs still represent an overwhelming majority of 
all tariff lines, a feature that has been frequently commented on by a number of other countries.  Does 
the Swiss government have any plans in the short-term to make adjustments in this regard?  If so, how 
will adjustments be made ?  
Réponse  
See answer to New Zealand (Question 46).  
Colombie 
63. Question  
Se indica que el arancel equivalente en términos  ad valorem –EAV, en 2004 aumentó con respecto a 
los niveles de 2000 por la baja en los precios  de importación, en particular en productos 
agropecuarios, y señala que esta es  una característica de los derechos específicos. Por tal razón, 
entendemos que los derechos arancelarios de Suiza no son fijos sino variables en el tiempo, lo cual 
estaría en contra de la nota de pie de página del artículo 4.2 del Acuerdo de Agricultura. Suiza se ha 
venido oponiendo a consolidar los aranceles en térmi nos ad valorem en la negociación agrícola. ¿Por 
que razón se opone Suiza que en esta negociación se c onsoliden los aranceles en  términos ad valorem 
lo que le permitiría estar en conf ormidad con el Acuerdo sobre la Agricultura y evitar con ello seguir 
castigando las exportaciones más eficientes de países en desarrollo?  
Réponse 
As mentioned in the para 17 page 45 of th e Secretariat report, the increase in the 2004 AVEs 
over their 2004 levels reflects to a large exte nt a downward trend in import prices. 
 On peut retourner l'argument utilisé contre les droits spécifiques sur ceux ad valorem : la 
fixation d'un taux ad valorem génère également d es fluctuations mais cette fois-ci non plus en 
terme relatif (%) mais en termes absolus (en fr./ kg). Ce qui rend ce mode de droit de douane 
moins prévisible et moins transparent. 
 
For further consideration of the AVEs issue,  please refer to the ongoing DDA negociations 
 
Brésil 
64. Question  
In page 45, the Secretariat points out that th e duty collection ratio on non-agricultural products 
amounted to 0.2% in 2002, while on agricultural imports the corresponding ratio for agricultural products was 10.2%. Please explain this difference.  
 WT/TPR/M/141/Add.1 
Page 31 
 
 
 Réponse  
As spelled out in different parts of the Trade Policy Review Report, in some sectors in the agricultural field the customs duties are higher than  in the industrial field. The results of the 
ongoing negotiation will show, if this figures can be lowered. 
 
65. Question  
According the Secretariat Report, the simple aver age MFN tariff increased from 8.9 in 2000 to 9.3% 
in 2004, while the standard deviation has also in creased (from 33.1% in 2000 to 42.5% in 2004). Is 
that consistent with the alleged objective of lowering the consumer prices, as stated in the 
Introduction of the Secretariat Report? 
 
Réponse  
Given the decrease of world prices the incidence of specific duties in relation to the value of the imported goods has slightly increased. Howe ver the specific duties were not raised and 
remained stable. 
 
66. Question  
The Secretariat Report shows that Switzerland’s tariff structure has a large number of tariff peaks in 
agricultural and non-agricultural goods, especially in  products of export interest of Brazil. Does 
Switzerland intend to simplify and harmonize its tariff structures? 
 
Réponse  
The results of the ongoing Doha negotiation will show if further progress can be achieved in this 
area.  
67. Question  
Relating to specific duties, table III.1 (page 46)  shows that 100% of the tariff lines bear non- ad 
valorem formats. Non-ad valorem tariffs are not transparent and distort trade, punishing competitive 
exporters like Brazil: is Switzerland prepared to convert all these non- ad valorem  in ad valo rem as 
required in the Annex B of the July Packag e? How long will the conversion process of non- ad 
valorem  into AVEs take? 
 Réponse  This issue will be further addressed in the Do ha-Round. Switzerland will fully comply with its 
commitments and established timeframes taken in the new round.  
   (iii) Rules of origin 
 
Costa Rica 
68. Question  
En relación con los párrafos 41, 42 y 43, tomando en cuenta las tendencias recientes que han tenido 
bloques comerciales, como la Unión Europea, en mate ria de flexibilizar el régimen de origen en el 
marco del SGP, ¿han evaluado la posibilid ad de modificar el régimen de origen? 
 
Réponse  
In the field of rules of origin, due to the close linkage of the Swiss GSP Scheme with the EU system through the possibility of establishing replacement certificates and the donor country 
cumulation possibility, Switzerland will closely fo llow the possible evolution in this field and if 
necessary, adapt it to the new circumstances. 
 WT/TPR/M/141/Add.1 
Page 32  
 
Brésil 
69. Question  
Regarding chapter III, item 40, of the WT/TPR/S/ 141 document, could Switzerland and Liechtenstein 
inform the authorities that i ssue the certificate of origin? 
 Réponse As explained in the paragraph mentioned, Cham bers of Commerce are entitled to issue non-
preferential certificates of origin. 
 
  (iv) Anti-dumping, countervailing, and safeguard measures 
 
New Zealand 
70. Question  
Page 55, paras 48 and 49 of the Secretariat repor t notes that Switzerland and Liechtenstein do not 
maintain or intend to establish any specific anti-dum ping or countervailing regulations or regulations 
on safeguards, but goes on to note that WTO ag reements can be invoked directly without any 
implementing legislation.  Para 49, however, notes that Article 7 of the Swiss Customs Law allows for any modification in tariffs including increases, “when the national interest is at stake”.  Has this 
provision ever been invoked and if so, when? Is there provision for any form of investigation to be carried out before a tariff is raised “in the nationa l interest”?  If this is not the case, how does this 
provision avoid undermining established WTO rules on trade remedies ? 
Réponse 
Since the entry into force of the WTO agreeme nts in 1994 no measures were taken based on 
Article 7 of the Swiss Customs Tariff Law (Loi fédérale du 9 octobre 1986 sur le tarif des douanes; RS 632.10). If measures were to be  taken, they would require an investigation, 
consultation and decision making process. Part of such a evaluation process would also be the 
WTO compatibility of such measures.  
  (v) Import prohibitions, licensing, and controls   
USA 
Switzerland’s 2002 Import Licensing notification G/LIC/N/3/CHE/4 stated on page 3 that “Producers of agricultural products and their ma rketing entities are al so allowed to apply for tariff quotas. The 
unused remainder of the allocations is not ad ded to quotas for a succeeding period.”   
 
71. Question  
Please clarify how the Government prevents Swis s producers of agricult ural products and their 
marketing entities form obtaining quotas and not filling them. 
Réponse  
Dans l'art. 22 alinéa 4 de la Loi fédérale sur l'agriculture du 29 avril 1998 (RS 910.1), il est stipulé qu'afin d'éviter les abus, le Conseil fédéral peut priver des importateurs du droit aux contingents tarifaires. 
 
72. Question  
On pages 4 and 5, document G/LIC/N/3/CHE/4 stated that “TQ shares are only allocated to 
individuals, businesses and organization s, irrespective of nationality or origin, that: (a) Are established 
on Swiss customs territory; (b) impo rt goods in the sector concerne d for business purposes; (c) provide 
guarantees that, where necessary,  they can meet the requirement s and undertake the commitments 
related to utilization of TQ shares.  Producers of  agricultural products and their marketing entities are 
also eligible for TQ if they meet the commitments  for the allocation of TQ (e.g. purchase of like 
products directly from other pr oducers in Switzerland).”  WT/TPR/M/141/Add.1 
Page 33 
 
 
 A)  How does the Government define “individual s, businesses and organizations … established on 
Swiss customs territory?”  
 
Réponse  
Personnes physiques et morales ainsi que co mmunautés de personnes (personnes) qui sont 
domiciliées sur le territoire douanier suisse ou y ont leur siège social. 
 
B)  Please explain the requirement that an importer must “import goods in the sector concerned for business purposes” to qualify for TQ shares.  Does this me an that the importer must be a distributor as 
well?  If so, why? 
 
Réponse  
Non, la seule condition exigée est celle de la pr ofessionalité. Une part de contingent tarifaire 
n’est attribuée qu’aux personnes qui importent à ti tre professionnel dans la branche considérée. 
Cette condition particulière requise pour l’attri bution d’une part de contingent tarifaire ne 
s’applique qu’aux légumes frais, fruits frais, lé gumes congelés, fleurs coupées, fruits à cidre et 
produits de fruits. 
 
C)  Does the requirement that “producers of agricu ltural products and their marketing entities are also 
eligible for TQ if they meet th e commitments for the allocation of TQ (e.g. purchase of like products 
directly from other producers in Switzerland) a pply to foreign firms importing into Switzerland? 
 
Réponse  
Voir question (A). L’importation de produits agr icoles requiert pour la plupart des produits un 
permis. Pour certains produits, le permis es t accordé sous la forme d’un permis général 
d’importation (PGI).  Le PGI est délivré su r demande écrite aux personnes physiques et 
morales ainsi qu’aux communautés de personn es (personnes) qui sont domiciliées sur le 
territoire douanier suisse ou y ont leur siège so cial. Cette condition, et par conséquent toute 
autre condition relative à l’attribution d’une part de contingent tarifaire, s’applique également 
aux entreprises étrangères. 
 
D)  Why does eligibility for TQ allocation depend on the “purchase of like products directly from 
other producers in Switzerland”? 
 
Réponse  
La prestation en faveur de la production suisse, la prise en charge, a une origine historique dont 
le but était de promouvoir la production suisse. 
 
EC 
73. Question  
Referring to paragraph 50 (p.56) concerning import prohibitions in the report prepared by the WTO 
secretariat, the EC should like to ask Switzerland to list the EU sanctions that Switzerland also 
implements in the area of import restrictions. 
 
Réponse  
Currently none. 
 
Colombie 
74. Question  
Han notificado las autoridades de Suiza y Liecht enstein al Comité de Medidas de Inversión 
relacionadas con el Comercio (MIC) el sistema de  compra forzosa de productos nacionales para 
determinados productos agrícolas y de requisitos de contenido local de que habla el documento de la 
Secretaría en el párrafo 60 de la sección contenida en el título de este numeral? WT/TPR/M/141/Add.1 
Page 34  
 
75. Question  
En caso negativo, existe intención de notificar dichos programas o en su lugar, de cumplir las 
disposiciones de la OMC en la materia?  
Réponse (aux deux questions) 
Internal measures such as the prise en charge  are not covered by the TRIMS obligations.  
 
76. Question  
¿Cuáles son las razones que han conducido a Suiza a prohibir las importaciones de patatas y otros 
productos agrícolas? ¿Cómo considera Suiza que esta medida es compatible con el Acuerdo de 
agricultura de la OMC? 
 
Réponse  
The prohibition applying to import of potato es and some other plants  products are defined 
according to the phytosanitary ri sk associated with a commodity along a import pathway. The 
risk is mainly determined by the phytosanitar y situation in the country of origin (presence of 
pests with quarantine status in Switzerland) and/or the probability of these pests to be associated with the commodity.   In agreement with SPS provisions, Switzerlan d follows the recommendations made by the 
Regional Plant Protection Organization EPPO (European and Mediterranean Plant Protection 
Organization). This organisation is a regional organisation recognized by the International 
Plant Protection Convention of FAO. 
  
77. Question  
Sobre la Constitución obligatoria de  existencias, párrafos 55 a 59: 
¿Cuál es la razón de mantener reservas obligator ias en determinados productos agrícolas (azúcar, 
arroz, grasas y aceites comestibles, café y distintas clases de cereales) y específicamente en café?  
Réponse  
Les raisons qui incitent la Suisse à la constituti on de stocks sont de nature essentiellement 
historiques et répondent avant tout à des exigences nationales en matière de sécurité 
alimentaire. Les stocks constitués ne peuvent pas être commercialisés. Concernant le café en 
particulier, les stocks constitués n'ont égal ement aucune utilité commerciale et répondent 
exclusivement à la notion de sécurité alimentaire. 
 
78. Question  
De la descripción que hace la Secretaría sobre las reservas obligatorias al azúcar (párrafo 58) es claro 
que las mismas son una restricción no arancelaria. ¿Cómo considera Suiza que estas reservas son compatibles con la nota de pie de página del artículo 4.2 del Acuerdo sobre la Agricultura? 
 
Réponse  
Toutes les contributions y compris les tarifs app liqués se situent en-dessous du plafond tarifaire 
notifié à l'OMC et se trouvent ainsi en conformité  aux dispositions de l'Accord sur l'agriculture. 
 
Brésil 
79. Question  
Regarding chapter III, items 52 to 54, of the docum ent WT/TPR/S/141, is there any kind of register 
required from importers of Switzerland and Liechtens tein to the prior import licensing? Which would 
be the required procedures? 
 
Réponse  There is no special register. Every year the exact allocation of quotas and the details of 
attribution (including the names of the import ers) are published by a “Tiré à part du Rapport WT/TPR/M/141/Add.1 
Page 35 
 
 
 concernant les mesures tarifai res prises durant l'année” (published on the FOA website: 
http://www.blw.admin.ch/rubriken/00116/unterseite00053/index.html?lang=fr. 
 
80. Question  
With reference to chapter III, itens 52 to 54,  of the document WT/TPR/S/141, please inform the 
licensing fees value in order to cover admini strative expenses on the processing of documents 
 
Réponse  
Licenses (Permis général dimportation, PGI) are de livered free of charge. To cover the cost for 
the administration of TQ's, a fee rang ing between Sfr. 4.- and SFr. 7.- per 
shipment/consignment is levied  (refer to anne x 7 of the General ordinance importation of agric. 
products (SR 916.01). 
 
  (vi) Local-content and local-purchase requirements  USA 81. Question  
Referring to paragraph 60, page 58 of the Secret ariat Report, please explain how the local-content 
requirements under the prise en charge  system are consistent with Switzerland’s international 
obligations under Article 3.1(b) of the ASCM.  Réponse  "Art. 3.1(b) of the ASCM applies "except as provided in the Agreement on Agriculture" and 
concerns subsidies, not import licences. Such im port licences are granted regardless of the final 
use and destination of the products covered." 
 
See also reply to question 16. 
 
Colombie 
82. Question  
¿Por que razón utiliza Suiza el sistema de " prise en charge " o sistema de compra forzosa de productos 
nacionales que exige que los comerciantes compren bienes de producción nacional a fin de poder 
importar cantidades especificadas de determinados produc tos agropecuarios, como la leche en polvo y 
las aves de corral?   
Réponse  
Please refer to the answer to the question 3 d) of the US. 
 
83. Question  
¿Cómo considera Suiza que esta obligación, por sus requi sitos en materia de contenido nacional, no es 
contraria al “Acuerdo sobre las medidas en materia de inversiones relacionadas con el comercio”, ni 
contraria a las disposiciones de los artículos III y XI del Acuerdo General, máxime cuando este 
Acuerdo no dispuso de periodos  transitorios ni excepciones para países desarrollados?  
 
Réponse  
Internal measures such as the prise en charge  are not covered by the TRIM's obligations. 
 
84. Question  
¿A cuáles líneas arancelarias del ámbito agrícola de  la OMC aplica Suiza actualmente el sistema de 
“prise en charge ”? 
 
Réponse  
Please refer to the answer to the question 17 of  Costa Rica. WT/TPR/M/141/Add.1 
Page 36  
 
  (vii) Standards and other technical requirements  
Canada 
85. Question  
§92-93 Canada supports mandatory labelli ng of food and feed based on hea lth and safety considerations.  
Beyond health and safety considerations, Canada is concerned that mandatory labelling for food and 
feed derived from biotechnology could lead to unjustified discriminati on against like products, 
particularly given the proposed amendments do not a pply to other widely used technologies such as 
mutagenesis.   Canada believes that a more appr opriate, less trade restrictive approach would be a 
voluntary, market-driven labelling scheme. 
Paragraph 93 refers to thre sholds of 2% and 3% for GMO content in various feedstuffs.  However, in 
the regulation that was notified to the SPS and TB T Committees (RS 916.307), Canada notes that the 
threshold was set at 0.9%, which Canada does not  believe to be practical.  In the absence of 
internationally agreed-upon sampling and detecti on methodologies, Canada seeks clarification on the 
thresholds and how they were set and asks whether the comments from other Committee members, 
such as those received from Canada, were taken into account in setting the thresholds.   Canada also 
seeks guidance on which testing and sampling methods will be used.  
Réponse  
Switzerland takes note of the concerns expr essed by Canada with respect to mandatory 
labelling of genetically modified food and feed . However, Switzerland does not share Canada’s 
view that health and safety considerations are the only regulatory objectives that may be pursued with labelling requirements. The main purpose of the Swiss legislation relating to 
labelling of GM products is to provide full and accurate information to consumers in order to 
allow them to make an informed choice in relatio n to the foods they purchase or consume and to 
prevent deceptive practices. Product information fo r feed is indispensable in order not to impair 
other (voluntary) food labelling schemes, such as "organic”, which do not allow the use of GM materials. In this context Switzerland does not consider that mandatory labelling of genetically 
modified food and feed constitutes an unjustified discrimination of like products.  
 
The thresholds for labelling of feed (2% or  more of compound foodstuffs for animal 
consumption; and 3% or more of the total weight  of inputs used for the production of feed) 
referred to in paragraph 93 of the report by the secretariat (WT/TPR/S/141) relate to the 
legislation currently in force. As indicated in the secretariat’s report, an amendment to this legislation has been proposed
3 and is presently being finalized. In accordance with article 4 of 
the Federal Law on Technical Barriers to Trade  (LETC; SR 946.51)4 the product requirements 
(including applicable thresholds) shall be harmon ized with the legislation of Switzerland’s most 
important trade partner, which is, in the area  of feedstuffs, the European Communities.  
 In the framework of the application for the au thorization relating to the commercialization of 
genetically modified foods the applicant is request ed to identify an adequate detection method 
and to provide respective reference material in or der to ensure subsequent  market surveillance. 
The sampling procedures applied in official feedst uff controls are laid down in appendix 9 of the 
Swiss Feedbook Ordinance (RS 916.307.1)
5. The Polymerase Chain Reaction (PCR) methods 
used by the official feedstuff control unit to determine the content of genetically modified 
organisms in a feedstuff were published and ca n be made available upon request. In order to 
take into account that the results relating to the quantification of the content of genetically 
modified organisms in a feedstuff using PCR may vary between different laboratories (due to 
                                                      
3 See WTO notifications G/TB T/N/CHE/42 ; G/SPS/N/CHE/38. 
4 http://www.admin.ch/ch/f/rs/c946_51.html. 
5 http://www.admin.ch /ch/f/rs/c916_307_1.html WT/TPR/M/141/Add.1 
Page 37 
 
 
 different performance and procedures), the offici al control unit will accept deviations of 50% 
from the mandatory threshold value6. 
 Switzerland has given due consideration to all th e comments that have been submitted by WTO 
members in the framework of the TBT and SPS no tification procedure. The delegations who 
have submitted comments will recei ve a written response indicating how their observations have 
been taken into account.   
 
Costa Rica 
86. Question  
En relación con el párrafo 62, en la página 58, ¿ex iste una norma general que guíe la preparación de 
los reglamentos técnicos?  
Réponse  
The federal Law on Technical Barriers to Trade (LETC) sets rules for the establishment of 
technical regulations. According to this law, Swi ss technical regulations have to be aligned with 
those of the major trading partners.
7 
 
87. Question  
En relación con el párrafo 75, ¿se utiliza la “d eclaración del proveedor” como instrumento de 
evaluación de la conformidad de los productos importados?  
 
Réponse  
Yes, Switzerland accepts supplier's declaration of conformity in various product sectors such as 
machinery, electrical safety / low voltage equi pment, electromagnetic compatibility, toys, 
medical devices (only for products which presen t a low risk), personal protective equipment 
(only for a limited number of products) and p ressure equipment (only for very limited number 
of products).   In this context Switzerland would like to indica te that there will be another opportunity to 
further discuss this issue at the Special work shop on “Supplier's Declaration of Conformity” 
organized by the WTO TBT Committee in March 2005. 
 
88. Question  
Párrafo 78  ¿Cómo se verifica en el mercado suizo el cumplimiento de los reglamentos técnicos a los 
productos de importación?   Réponse  The sectoral legislation sets rules for the market  surveillance. The federal authorities or the 
cantons (in many product areas) are respon sible for the market surveillance. The LETC 
provides horizontal rules for market surveillance.
8 
 
89. Question  
¿Existe un organismo que revise y recomiende la aprobación o revocación de un reglamento técnico 
propuesto por una entidad federal estatal?   
 
 
                                                     
 
6 As proposed to be fixed in appendix 10 of the Swiss feedbook Ordinance. 
7 For further details, see in particular article 4 of the LETC (RS 946.51):   
http://www.admin.ch/ch/f/rs/9/946.51.fr.pdf. 
8 See in particular articles 19 and 20 of the LETC (R S 946.51):   http://www.admin.ch/ch/f/rs/9/946.51.fr.pdf. WT/TPR/M/141/Add.1 
Page 38  
 
Réponse 
The competence for the establishment of techical re gulations for products is at the federal level 
(see procedures described in paragraph 65 and 66 of the secretariat’s report). The procedure establishing technical regulations include  extensive consultation mechanisms. 
 
90. Question  
Pagina 64, párrafos 85 y 86 ¿qué criterios se utili zan para diferenciar aquellas  importaciones que 
requieren una licencia, de aquellas que requieren autorizaciones sujetas a certificado  fitosanitario del 
país de origen?   Réponse  The three regimes applying to import of plan ts, plant products, substrates and other related 
commodities (prohibition, import license and phyto sanitary certificate) are defined according to 
the phytosanitary risk associated with a commo dity along an import pathway. The risk is 
mainly determined by the phytosanitary situat ion in the country of origin (presence of pests 
with quarantine status in Switzerland) and/or th e probability of these pests to be associated with 
the commodity. The higher the risk is, the more stringent the phytosanitary measures are. In 
this respect, Switzerland follows the recommenda tions made by the Regional Plant Protection 
Organization EPPO (European and Mediterranean Plant Protection Organization). 
 
91. Question  
Página 65, párrafo 88; ¿qué criterios específicos u tiliza la Oficina Federal Veterinaria para prohibir el 
acceso de alguna importación de productos sanitarios?  
Réponse  
Swiss import regulations are based on the Food Law  (SR 817.0)
9, the Law on Epizootic Animal 
Diseases  (SR 916.40)10, the Animal Welfare  legislation (SR 455)11 and CITES - the legislation for 
protection of endangered species12. The Ordinance of Import, Transit and Export of Animals and 
Animal products (EDAV; SR 916.443.11)13 implements the main principles of these laws.  
The criteria underlying the sanitary measures are based on risk which is itself determined by 
the sanitary situation in the country of or igin (presence of animal diseases with quarantine 
status in Switzerland) and/or the probability of these animal diseases to be associated with the 
commodity. The higher the risk is, the more stringent the sanitary measures are. In this respect, 
Switzerland follows the recommendations issued by the OIE. 
 
92. Question  
Página 66, párrafos 92 y 93,  ¿qué requisitos son necesarios para obtener la autorización para sembrar 
semillas OMGs y para autorizar el uso de OGMs en  alimentos? ¿Cuál es el sustento científico de 
dichos requisitos?  
Réponse  
According to Article 12 of the Federal Law re lating to Non-human Gene Technology (Gene 
Technology Law; GTL) the contained use, th e deliberate release of organisms into the 
environment as well as the commercialization of genetically modified organisms (including food) 
are subject to an authorization procedure. Auth orization for foodstuffs is granted only if, 
according to the current scientific knowledge  a ha zard to health can be excluded. In addition, 
the principles of Articles 6–9 GTL (protection of humans, animals, environment, biological 
diversity, production without genetically modified organisms, freedom of choice, dignity of 
                                                     
 
9 http://www.admin.ch/ch/f/rs/c817_0.html. 
10 http://www.admin.ch/ch/f/rs/c916_40.html. 
11 http://www.admin.ch /ch/f/rs/c455.html. 
12 http://www.admin.ch /ch/f/rs/c453.html. 
13 http://www.admin.ch/ch/f/rs/c916_443_11.html. WT/TPR/M/141/Add.1 
Page 39 
 
 
 living beings) must be respected. The authorizatio n procedure is based on a case-by-case safety 
assessment of the GMO product.  
 
93. Question  
Página 66, párrafos 92 y 93  ¿Cuál es el sustento ci entífico en el que se basa la obligación de etiquetar 
alimentos que contengan que cont engan organismos genéticamente modificados (GMO) en general y 
cuál es el sustento específico para etiquetar  a quellos alimentos para cons umo animal que contengan 
más de un 2% de GMO en su composición  y para etiquetar los insumos para alimentos de consumo 
humano que contengas un 3% o más de GMO del total de su peso? 
 Réponse 
The regulatory purpose underlying mandatory labeling of genetically modified food and feed is not 
food and feed safety but consumer information to pr otect consumers against deception and grant their 
freedom of choice. The requirement for mandatory la beling therefore takes acc ount of other legitimate 
factors relating to consumer concerns such as animal  welfare or the utilization of genetically modified 
feedstuff in the production of food of animal orig in. There is, consequently , no risk-based scientific 
basis underlying the labeling requirement. 
 
Hong Kong, China 94. Question  
We appreciate Switzerland's trade facilitating effo rts in harmonising her technical requirements with 
that of neighbouring countries.  We note that th e Swiss authorities expect to further harmonise the 
technical requirements for chemicals and pesticides in  2005.  We are interested to know the details of 
the harmonisation plan.  
Réponse  
In December 2000, the Swiss Parliament adopted a new law on chemicals, biocides and 
pesticides. On this basis the Swiss Government is presently elaborating the implementing ordinances that aim to harmonise the chemical  legislation with the EC Directives. The new 
Swiss Chemical law is foreseen to come into force on 1
st June 2005.14 
 
USA 
American businesses have raised several concerns  regarding a Swiss draft ordinance on Diesel 
Particulate Filters notified to the WTO in G/TB T/N/CHE/39 on March 5, 2004. The regulation would 
require vehicles to meet a maximum particle number emission level of 10 to the 11th power 
particles/km.  This new standard appears to  go well beyond established international norms. 
 95. Question  
Does Switzerland have scientific test results based on  actual usage situations that would suggest that 
this proposed standard is either necessary or realistic?  If so, please share those results. 
 
Réponse  
Switzerland takes note of the concerns raised by  the United States, but would, as expressed in 
the framework of the TBT Committee meeting of 4
th November 2004, not be able to provide a 
response before the spring 2005, due to the national decision-making procedure.  
96. Question  
Paragraph 92, page 66 of the Secretariat Report st ates that “any person handling GMOs for food use 
must take steps to prevent co-mingling of GM Os with non-GMOs; labeling of GMO-derived foods 
must assure adequate consumer information.” 
 
                                                      
 14 More details can be found under www.parchem.ch. WT/TPR/M/141/Add.1 
Page 40  
 
A)  Would adequate consumer information for la beling GMO-derived foods also include disclosing 
information on foods improved th rough non-genetic-engineering met hods of crop improvement, such 
as chemical or radiation-induced mutagenesis ? 
 
Réponse  
No. GMOs are by definition organisms whose gene tic material has been changed in vitro in a 
way that would not be possible under natura l condition through crossbreeding or natural 
recombination. Thus, chemical or radiation-indu ced mutagenesis, which causes alterations of 
the genome of the treated organism itself, but no  gene transfer from one organism to another, 
do not fall under this definition 
 
97. Question  
B)  Has Switzerland explored methods other than product labeling for providing consumer 
information, methods such as point-of-sale or Internet information sites ?  Réponse  Swiss consumers (like other European consum ers) are particularly interested in knowing 
whether the product they purchase has been produced using GM technologies. Respective 
consumer surveys have provided strong eviden ce that consumers request easily accessible 
product information when taking a purchase decision and that they would not accept 
alternative means of information. Responding to  this concern, the par liament has decided to 
continue requiring product information on gene tically modified products in the form of 
mandatory labelling.  However, according to Article 23 of the Ordinance on Foodstuffs (SR 817.02), mass caterers may provide written informatio n in a suitable form (e.g. in the menu or 
on a wall-mounted board). 
 
98. Question  
Paragraph 93, page 66 the Secretariat Report states  that “the labeling requirements for genetically 
modified organisms in food are laid down in the Ordinance on Foodstuffs, in force since 1 May 2002. GMOs must be indicated on labels unless they make up 1% or less of any ingredient in a foodstuff for 
human consumption. The current provisions ar e to be amended according to the LGG. The 
amendment is expected to enter into force on 1 Fe bruary 2005. In the case of feedstuffs, specific 
labeling requirements apply: 2% or more of compoun d foodstuffs for animal consumption; and 3% or 
more of the total weight of inputs used for the production of feed. The authorities indicate that an 
updated ordinance on feedstuffs concerning GMO is cu rrently under consultation, and that new rules 
should be applicable from 1 February 2005.  Three GM maize and one GM soybean variety have been 
authorized for use in food and feed.  However, no GMOs are used in food and feed at present.  
Switzerland does not require official approval of ma terials obtained by chemical modification of a 
chemically defined substance derived from a GMO, e.g. modified starch products. " 
 A)  In what way is Switzerland enforcing these labeling requirements ? 
 
Réponse  
Based on the principle of self control laid down in Article 23 of the Food Law (SR 817.0), the 
primary responsibility for complying with produc t labeling requirements generally lies with the 
Swiss producers or importers. Compliance is be ing ensured through border control measures 
and through market surveillan ce (random sampling and molecular analysis of products) 
implemented by the authorities. 
 
99. Question  
B)  What is the scientific basis for setting a standard  of 1% as the threshold for the labeling of foods 
with GMO contents ?   WT/TPR/M/141/Add.1 
Page 41 
 
 
 Réponse  
The regulatory purpose of requiring mandatory labelin g of genetically modified food and feed is 
not food or feed safety but consumer informat ion (to protect consumers against deception and 
grant their freedom of choice). There is, cons equently, no scientific basis underlying the 
labelling threshold. The threshold recognizes that there may be unavoidable and unintentional 
traces of GM-materials in a product.  
100. Question  
C)  On what basis does Switzerland differentiate between GMO materials and materials obtained by 
chemical modification of chemically defined substances from a GMO ? 
 
Réponse  
The differentiation between products derived from GMOs (e.g. corn starch) and products 
derived through chemical alteration of a product derived from GMOs (e.g. high fructose corn syrup obtained from corn starch) has been set to  provide a clear, restricted definition of a GMO 
product to producers and food control authorit ies. However, it is proposed to drop the 
differentiation as a part of the draft modification  of the Food Ordinance, notified to the WTO 
authorities on 28 July, 2004. 
 
Mexique 
101. Question  
El párrafo 63 (y el 83 respecto de Liechtenstein) señala que un acuerdo de reconocimiento mutuo 
entre Suiza y la UE entró en vigor el 1º de junio de 2002. Al respecto, ¿podrían Suiza explicar cuáles son los requisitos aplicables para que un país no mi embro pueda ser parte de este u otro acuerdo de 
reconocimiento mutuo, así como el procedim iento que tendría que seguirse al efecto ? 
 Réponse  L'accord de reconnaissance mutuelle en matière d'évaluation de la conformité (ARM) conclu 
entre la Suisse et la Communauté européenne est un accord bilatéral qui tient compte de la 
situation spécifique des deux parties contractan tes et qui ne donc pas être étendu à d'autres 
parties. En l'espèce, la Communauté européenne  est le principal partenaire économique de la 
Suisse et les deux parties disposent d'une législ ation technique pratiquement équivalente dans 
de nombreux secteurs de produits.    
Pour ce qui est d'éventuels autres ARM que la Su isse pourrait conclure, il ressort à juste titre 
du 3ème examen triennal du fonctionnement et de la mise en oeuvre de l'accord OTC de 
l'OMC
15, que les accords de reconnaissance mutuelle en  matière d'évaluation de la conformité 
(ARM) ne constituent qu'une approche parmi d'au tres pour faciliter l'acc eptation des résultats 
d'évaluation de la conformité. Bien qu'utiles, ces accords sont difficiles à négocier et coûteux à 
mettre en oeuvre. Pour justifier leur coût administ ratif, il est donc nécessaire de tenir compte de 
différents facteurs pertinents, à savoir nota mment le volume des échanges entre les pays 
concernés, les avantages économiques tangibles qui peuvent en découler, les ressources 
suffisantes pour la mise en oeuvre, ainsi que la compatibilité fondamentale des systèmes de 
réglementations des parties.  
102. Question  
El párrafo 64 indica que según la Ley sobre Obstáculos Técnicos al Comercio, los reglamentos 
técnicos suizos han de ser puest os en consonancia con los de sus principales interlocutores 
comerciales. Al respecto, México desea preguntar a Suiza: 
 
                                                     
 
15 Voir plus particulièrement le document G/TBT/13, paragraphe 39 WT/TPR/M/141/Add.1 
Page 42  
 
a)  ¿De qué manera esta disposición es compatible con la obligación prevista por el artículo 2.4 del 
Acuerdo sobre Obstáculos Técnicos al Comercio (AOTC) y 3 del Acuerdo sobre la aplicación de 
Medidas Sanitarias y Fitosanitarias (AMSF)?; b)  ¿Cómo se determina y justifica qué países s on los “principales” interlocutores comerciales?, y 
c)  ¿Cómo se justifica esta disposición, a la luz de lo dispuesto por los artícul os I del Acuerdo General 
sobre Aranceles Aduaneros y Comercio de 1994 (GATT por sus siglas en inglés),  2.1 y 2.2 del 
AOTC y 2.3 del AMSF? 
Réponse  
a) In case where international standards exist or  their adoption is imminent, Swiss technical 
regulations (and SPS measures) are based on these international standards. Article 4 of the 
LETC
16 only applies in the absence of an international standard. 
 b) Le critère réside dans l'importance des flux  commerciaux avec les différents pays concernés 
(volume des importations et exportations de la Suisse dans l'ensemble ou pour un secteur 
particulier). Il s'agit en effet de veiller à ce que le principe de la proportionnalité soit respecté 
entre l'importance économique du problème à rég ler et les efforts d'harmonisation. La 
compatibilité des prescriptions doit êt re recherchée par rapport  aux prescriptions 
déterminantes d'un point de vue économique.  c) The principle laid down in Article 4 of the LETC is an instrument autonomously applied by 
Switzerland, which fa cilitates trade for all the trade partners by minimizing national divergences in 
technical regulations.  
 
103. Question  
El párrafo 66 indica que en muchas esferas los canton es siguen encargándose de la aplicación y la 
vigilancia de los mercados, aún y cuando no elabor an reglamentos técnicos a nivel federal. En este 
sentido, ¿podría Suiza explicar qué reglas y pro cedimientos siguen los cantones para llegar a cabo 
dichas actividades ?  
Réponse  
La structure politique de la Suisse en tant qu' état fédéral prévoit un partage de compétences 
entre les  cantons et la Confédération. Il est do nc fréquent que des dispositions légales fédérales 
confèrent des compétences - nota mment en matière de surveill ance du marché - aux cantons. 
Dans de tels cas, les cantons ne font donc qu'appliquer des règles fédérales. Chaque canton 
édicte des réglementations de mise en oeuvre qui sont compatibles avec les prescriptions 
fédérales. Afin d'assurer une application uniforme des dispositions fédérales, il arrive que les 
cantons concluent entre eux des accords intercant onaux dans certains secteurs (ceci est le cas 
par exemple dans le domaine d es produits de construction). 
 
104. Question  
Por lo que se refiere a lo indicado en el párrafo 69, ¿podría Suiza indicar: 
 a)  el porcentaje de reglamentos técnicos que se encuentra armonizado con las normas 
internacionales relevantes?, y 
b) si existe algún procedimiento para justificar  las desviaciones de los reglamentos técnicos 
respecto de las normas internacionales aplicables y dónde puede ser consultada la información 
derivada del mismo?  Réponse  a) La Suisse participe activement aux travaux de normalisation internatio naux (ISO, CEI, UIT) 
et reprend systématiquement les normes internationales relevantes.  
                                                     
 
16 Voir LETC: http://www.admin. ch/ch/f/rs/9/946.51.fr.pdf. WT/TPR/M/141/Add.1 
Page 43 
 
 
 b) La loi sur les entraves techniques au commerce (LETC)17 prévoit que des dérogations ne sont 
admissibles que dans la mesure où elles so nt rendues nécessaires par des intérêts publics 
prépondérants (notamment protection de la mo rale, de l'ordre public, de la sécurité publique, 
protection de la vie, de la santé, du milieu na turel, protection des consommateurs, etc.) et où 
elles ne constituent ni un moyen de discrimination arbitraire, ni une restriction déguisée aux 
échanges. Cette disposition est conforme à celle qui figure à l'article 2.2 de l'Accord OTC de 
l'OMC.  
 
105. Question  
Adicionalmente, el párrafo 69 indica que las auto ridades tienen previsto llevar a cabo una mayor 
armonización en el caso de los productos químicos y plaguicidas para 2005. En este sentido, ¿podría 
Suiza confirmar que tomará en cuenta las norma s internacionales aplicables para realizar dicha 
armonización, así como los comentarios que los Miembros de la OMC han formulado respecto de la iniciativa de las Comunidades Europeas denominada “REACH” (registro, evaluación y acreditación de químicos)? 
 
Réponse  
In December 2000, the Swiss Parliament adopted a new law on chemicals, biocides and pesticides. On this basis the Swiss Government is presently elaborating the according ordinances that aim to harmonise the chemical  legislation with the EC Directives. The new 
Swiss Chemical law is foreseen to come into force on 1
st June 2005.18   
 
106. Question  
Respecto de lo indicado en el párrafo 73, ¿podría  Suiza indicar cuál es el procedimiento para 
reconocer una norma extranjera o procedimiento de  evaluación de la confor midad como equivalente 
y, en su caso, cuántas normas o procedimientos de evaluación de la c onformidad han reconocido 
como tales, en los términos de lo dispuesto por el  artículo 2.7 del Acuerdo sobre Obstáculos Técnicos 
al Comercio (AOTC)? 
 
Réponse  All products to be labelled as „organic pro ducts“ must meet the minimum requirements laid 
down in the Swiss Federal Ordinance on Organ ic Farming and the Labelling of Organically 
Produced Products and Foodstuffs (sho rt: Organic Farming Ordinance (RS 910.18)
19. 
 The legal basis to import such products is the Swiss Organic Farming Ordinance, in particular 
Articles 22 to 24a and 26.   
The Federal Department of Economy (FDE) Ordinance on Organic Farming (RS 910.181)
20 lays 
down more in details the requirements of the Organic Farming Ordinance.  - Switzerland recognises the production rul es and inspection systems that exist in a 
 number of countries as being equivalent. These countries, the specifications and the  respective products are listed in Annex 4 of the FDE Ordinance on Organic Farming. 
- Products from any other country can be  brought into Switzerland and labelled as 
 organic, provided prior authorisation according to Article 24 of the Organic Farming 
 Ordinance. 
 
Detailed guidance on the equivalence or the author ization procedure can be obtained online:  
http://www.blw.admin.ch/rubriken/00141/index.html?lang=en 
                                                     
 
17 Voir article 4 alinéa 3 de la LETC: http://www.admin.ch/ch/ f/rs/9/946.51.fr.pdf. 
 18 More details can be found under http://www.parchem.ch. 
19 http://www.admin.ch/ch/f/rs/c910_18.html. 
20 http://www.admin.ch/ch/f/rs/c910_181.html. WT/TPR/M/141/Add.1 
Page 44  
 
107. Question  
¿Podrían indicar Suiza y Liechtenstein si cuenta n con alguna base de datos en dónde se encuentren 
consolidados la totalidad de las normas, reglamentos técnicos y pro cedimientos para la evaluación de 
la conformidad vigentes en sus respectivos territori os y, en su caso, en dónde puede ser consultada? 
 
Réponse  
L'ensemble de la législation suisse est publié dans un recueil systématique où l'on trouve les 
textes consolidés en allemand, français et  italien. Ils y sont classés par matière
21. En ce qui 
concerne les normes, l'Association suisse de norm alisation (SNV) et le centre d'information de 
Switec (qui est aussi le point d'information OMC)22 fournissent notamment des informations sur 
les normes et la normalisation.  
108. Question  
Finalmente, ¿podrían Suiza y Liech tenstein indicar concretamente
 de qué manera y en qué momento 
da cumplimiento a las obligaciones sobre trato especi al y diferenciado previstas por el artículo 13 del 
AOTC, al momento de elaborar sus normas, reglamen tos técnicos y procedimientos para la evaluación 
de la conformidad?  
Réponse  
Dans le cadre du processus interne d'élaboration de  la législation suisse, les autorités concernées 
consultent les services chargés de la politi que économique d'aide au développement.  
 
Par ailleurs, les Etats membres de l'OMC ont la possibilité de se prononcer sur la 
réglementation technique suisse dans le cadre de la procédure de notification. Les PED ont dès 
lors la possibilité de faire connaît re leurs attentes particulières.  
 
109. Question  
Respecto de lo indicado en el párrafo 78, ¿podría  indicar Suiza cuántas fra cciones arancelarias se 
encuentran actualmente sujetas al cumplimiento de procedimientos de  evaluación de la conformidad? 
 
Réponse  
Malheureusement, nous ne disposons d'aucune stat istique en la matière. Toutefois, le point de 
contact TBT/SPS pourra fournir à la demande des informations sur des secteurs de produits en 
particulier.  
 
110. Question  
Respecto de lo señalado en los párrafos 84 a 88 ¿podr ían Suiza y Liechtenstein explicar qué medidas 
han adoptado para otorgar trato especial y diferenc iado a los países en desarrollo Miembros, en los 
términos de lo dispuesto por el artículo 10 del AMSF?  
Réponse  
Dans le cadre du processus interne d'élaboration de  la législation suisse, les autorités concernées 
consultent les services chargés de la politi que économique d'aide au développement.  
 
Par ailleurs, les Etats membres de l'OMC ont la possibilité de se prononcer sur la 
réglementation technique suisse dans le cadre de la procédure de notification. Les PED ont dès 
lors la possibilité de faire connaît re leurs attentes particulières.  
  
 
                                                     
 
21 Voir Recueil systématique (RS): http://www.admin.ch/ch/f/rs/rs.html. 
22 Association Suisse de Normalisation , Bürglistr. 29, 8400 Winterthur, Tel. +41 52 224 54 54, Fax 
+41 52 224 54 74, info@snv.ch.  Homepage: www.snv.ch WT/TPR/M/141/Add.1 
Page 45 
 
 
 111. Question  
¿Podrían Suiza y Liechtenstein confirmar que no ex isten medidas sanitarias y fitosanitarias a nivel 
cantonal o provincial o, en caso de que la respu esta sea positiva, indicar qué medidas han adoptado 
para dar cumplimiento a lo dispuesto por el artículo 13 del AMSF respecto de las instituciones que no pertenecen a sus gobiernos centrales?  Réponse  Il n'existe pas en Suisse de normes sanita ires ou phytosanitaires au niveau cantonal. 
 
112. Question  
El párrafo 86 indica que la aplicación de los regímenes registra diferencias en razón del origen de las 
importaciones. Al respecto, México desea conocer ¿de qué manera Suiza garantiza un trato no discriminatorio en los términos de lo dispuesto por el artículo 2.3 del AMSF y cómo da cumplimiento 
a lo dispuesto por el artículo 6 del mismo ordenamiento? 
 
Réponse  
La différenciation est basée sur une analyse du risque. En cela, la Suisse suit les 
recommandations des organisations international es compétentes dans le domaine sanitaire et 
phytosanitaire (OIE, IPPC).  
 
113. Question  
Respecto de lo indicado en el párrafo 89, ¿podrían Su iza y Liechtenstein indicar cuál es el porcentaje 
de medidas sanitarias y fitosanitarias que se encuentra armonizado con las normas o guías 
internacionales relevantes, si existe algún procedim iento para justificar las desviaciones de los 
reglamentos técnicos respecto de dichas normas o guías internacionales y dónde puede ser consultada 
la información derivada del mismo? 
 
Réponse  
Comme mentionné à la question 4, la Suisse partic ipe activement aux travaux de normalisation 
internationaux et reprend systématiquement les normes internationales. Quant à la possibilité 
de dévier des réglementations et normes intern ationales, selon l'article 4 de la loi sur les 
entraves techniques au commerce (LETC), des d érogations ne sont admissibles que dans la 
mesure où elles sont rendues nécessaires par de s intérêts publics prépondérants (notamment 
protection de la morale, de l'ordre public, de la sécurité publique, protection de la vie, de la 
santé, du milieu naturel, protection des consommate urs, etc.) et où elles ne consituent ni un 
moyen de discrimination arbitraire, ni une restriction déguisée aux échanges. 
 
114. Question  
En cuanto a lo señalado por el párrafo 90, ¿podr ían indicar Suiza y Liechtenstein si cuentan con 
alguna base de datos en dónde se encuentren conso lidadas la totalidad de las medidas sanitarias y 
fitosanitarias vigentes en sus respectivos territorios y, en su caso, en dónde puede ser consultada ? 
 
Réponse  
L'ensemble de la législation suisse est publié dans un recueil systématique où l'on trouve les 
textes consolidés en allemand, français et  italien. Ils y sont classés par matière
23. En ce qui 
concerne les normes, l'Association suisse de norm alisation (SNV) et le centre d'information de 
Switec (qui est aussi le point d'information OMC)24 fournissent notamment des informations sur 
les normes et la normalisation.  
 
                                                      
23 Voir Recueil systématique (RS): http://www.admin.ch/ch/f/rs/rs.html. 
24 Association Suisse de Normalisation , Bürglistr. 29, 8400 Winterthur, Tel. +41 52 224 54 54, Fax 
+41 52 224 54 74, info@snv.ch.  Homepage: www.snv.ch. WT/TPR/M/141/Add.1 
Page 46  
 
Colombie 
115. Question  
El párrafo 73 de esta sección contiene información referida a la lista de terceros países cuya 
“legislación orgánica” se considera equivalente a la norma suiza en materia de productos orgánicos y 
por ello, tiene acceso libre al mercado.  
 
Cuáles son los requisitos para ser incluido en la lista? Cuál es la entidad encargada de estudiar las 
peticiones de equivalencia?  
Réponse  
See answer to question 114 (to Mexico).  
Thailande  
116. Question  
Document WT/TPR/S/141 page 64 paragraph 84 indicates that a majo r revision of food legislation 
was entered into force in May 2002. Could Switzerland provide the new food legislation ? 
 
Réponse  
The Swiss legislation relating to food can be obtained from the following website in French/German/Italian: http://www.admin.ch/ch/f/rs/81.html#817.  
An unofficial English translation of the main te xts is in preparation and should be available 
mid-2005. 
 
  (viii) Government procurement  Australie 
The report by Switzerland and Liechtenstein states, in a reference to the negotiations under paragraph 
31(i) of the Doha Declaration, that “one of Sw itzerland’s priorities has been to clarify the link 
between the WTO provisions and the multilateral agre ements on the environment, so as to ensure 
consistency between the two systems in the event of a dispute” (WT/TPR/G/141, para 105). 
 117. Question  
Yet Switzerland is on record in the CTE in Special Session as stating there are “no problems today” in 
the MEA/WTO relationship.
25  Instead, Switzerland is concerned about problems that “could arise in 
future”.26  On this basis, Switzerland has advocated  in the CTE SS negotiation of a mechanism27 
and/or principles28 which it argues would provide “a solution to this issue”.29 
 
If, as Switzerland agrees, there are no existing problem s in the MEA/WTO relationship, on what basis 
does Switzerland believe that such problems will arise in future?  
 
 
                                                     
 
25 Summary Record of the Tenth Meeting of the Committee on Trade and Environment in Special 
Session, 12-13 October 2004 (TN/TE/R/10 paragraph 19). 
26 Ibid. 
27 Statement by Switzerland at the Meeting of th e Special Session of the Committee on Trade and 
Environment in Special Session, 1-2May 2003 (TN/TE/W/32 paragraphs 12-14). 
28 Summary Record of the Tenth Meeting of the Committee on Trade and Environment in Special 
Session, 12-13 October 2004 (TN/TE/R/10 paragraph 19). 
29 Statement by Switzerland at the CTE Special Session on 10 October 2002 (TN/TE/W/16 
paragraph 11) and Multilateral Environmental Agreements  (MEAs): Implementation of the Doha Development 
Agenda, Submission by Switzerland (TN/TE/W/4 paragraph 16).  WT/TPR/M/141/Add.1 
Page 47 
 
 
 Réponse  
In our view, the mere fact that no conflict has yet arisen between multilateral environmental agreements (MEAs) and WTO rules, does not auto matically imply that there might be none in 
future, especially considering the increasing number of MEAs and the growing interface 
between the two sets of law. In the negotiati ons of MEAs, countries have spent a significant 
amount of time examining the trade measures to  be contained in these agreements, and in order 
to avoid potential clashes with WTO rules. Howe ver, given that both systems are dynamic and 
evolving continuously, potential conflicts might arise in the implementation and enforcement of 
these treaties. Therefore it is important to clar ifying and defining the principles governing the 
relationship between the two sets of rules before co nflicts arise. While it could be argued that 
the best and easiest solution may be to leave this difficult question to WTO dispute settlement 
mechanism, Switzerland takes the view that such  an important decision should rather be taken 
by WTO Members themselves and not through lit igation. The principles which in our view 
must be treated are mutual supportiveness, no  hierarchy between the two sets of law and the 
deference principle (all these principles have been explained in length in our submissions 
WT/CTE/W/139, WT/CTE/W/168). 
 To sum up: 1.  There is a potential of conflict between WTO and MEAs. 2.  The relationship between WTO and MEAs has not yet been entirely clarified within WTO. 3.  However, according to an approach of mutual supportiveness, de ference and no hierarchy 
between the two sets of rules, conflicts betwee n WTO and MEAs can generally be avoided.  
4.  Hence, these principles should be formalized in an interpretative decision which does neither 
add to or diminish the rights and obligations of Members, but simply clarify the texts.   
 118. Question  
Could Switzerland outline in specific terms the futu re problems in the MEA/WTO relationship within 
the terms of the mandate in paragraph 31(i) of th e Doha Declaration that they claim could arise? 
 
Réponse  
As already stated in the answer above, so far no conflict with MEAs has arisen within the WTO, 
a fact which Switzerland finds highly encouragi ng. However, due to the increasing number of 
MEAs and the growing interface of the two sets  of law as well as due to the only recent 
enforcement of MEAs, the possibilities for potent ial conflicts are increasing. This potential for 
future conflicts between the international tr ade regime as established by WTO and MEAs 
relates to the following four aspects: 1.  The consistency of trade measures under MEAs remains open to challenge; 
2.  New trade measures conflicting with WTO ru les and principles may be adopted in existing 
or new MEAs; 3.  The settlement of disputes on the same issu e may result to different results within WTO (as 
seen in the case of “Tuna 1” and “Tuna 2”) and within MEAs.  But since we are dealing with potential future problems, these problems can obviously not be 
more specified.  
119. Question  
Could Switzerland explain how, in the absence of a specific identification of these possible problems, 
Members can agree a mechanism for dealing with unforeseen and unidentified problems that may or may not arise in the future? 
 
Réponse  
As Australia rightly points out, since the problem is a potential one, we should ensure that such 
a harmonious co-existence between the two sets of  law is preserved and that everything is done WT/TPR/M/141/Add.1 
Page 48  
 
to enhance their mutual supportiveness. Ther efore, Members of th e CTE Special Session 
considered several options to clarify the relatio nship between the rules and provisions of the 
WTO system and those of MEAs which we will list again with their pros and cons. These are: 
(A)  the dispute settlement mechanism; (B) an amendment of Article XX of the GATT 1994 by introducing a reference to the environment; or (C) the adoption of an interpretative decision.  
•  Dispute Settlement Mechanism:
 In this solution, the issue is dealt with in a specific case 
by a Panel and eventually by the Appellate  Body in a dispute settlement proceeding. 
This option has the merit of being immediately applicable, with no need to negotiate any special solution. It is sometimes also stated  that, there is no need for WTO Members to 
clarify this relationship, as the Appellate Body has actually already done so in its 
decision on the Shrimp-Turtle case. In our view, however, the Shrimp-Turtle decision 
did not deal with the question of the relationship between WTO rules and MEAs; but 
clarified the conditions to be met when na tional environmental trade measures are 
taken. Besides that, there is another important drawback of this option: decisions in a dispute settlement case are specific
 and only applicable to the case at hand ; they can be 
modified in a subsequent case. They therefore don’t ensure legal security and 
predictability which we regard as basic and important features of the multilateral 
trading system. 
•  Reference to the Environment in GATT Article XX:  The second solution which could be 
envisaged is the adoption of an environmental clause which would explicitly define the relationship between WTO rules and MEAs in Article XX of GATT. Such a clause could contain the principles governing the co-existence of the two systems The major drawback of this option is that this wo uld mean modifying Articl.e XX of the GATT 
1994  and subsequent agreements. Considering the difficulties of modifying specific 
articles of GATT this is not a realistic option. 
•  An Interpretative Decision  should be agreed by WTO Members to address the issue of 
the relationship between WTO rules and specific trade obligations in MEAs.  
o The objective of the Interpretative Decision  is twofold: First, the clarification of the 
relationship between MEAs and WTO should lead to a better coherence  between the 
two systems. This should be a result of a political consensus between us, the 
Members in our function as legislative bo dies, and not left to the dispute settlement 
process of the WTO. The clarification of the relationship would also render multilateralism de facto more attractive than unilateralism. And second, it provide 
guidance for the WTO Dispute Settlement Body and
 it could serve as dispute 
prevention for existing and future MEAs. 
o An interpretative decision would contain the basic principles covering the 
relationship between the trade and environmental systems like the principles of no 
hierarchy, mutual supportiveness and deference .  
o The merits  of such a decision would be its transparency and applicability to all cases 
in the future.  Moreover, an interpretative decision neither adds to or diminishes the 
rights and obligations of Members, but simply clarifies the texts.  And last but not 
least, this approach would also underline WTO's commitment to taking environmental needs into consideration.  
 
 (3) Measures Directly Affecting Exports 
  (i) Export procedures, taxes, and controls 
 
EC 
120. Question  
In the report prepared by the WTO secretariat (p. 71) it is noted that Switzerland and Liechtenstein 
implement the economic sanctions of European Union on a case-by-case basis.  WT/TPR/M/141/Add.1 
Page 49 
 
 
 Could Switzerland provide a list of  EU sanctions that it also implements in the area of export 
restrictions ?  
Réponse  
Sanctions against Myanmar and Zimbabwe (war material and other military equipment), as 
mentioned in the report  
  (ii) Export subsidies, and duty and tax concessions 
 
Costa Rica 
121. Question  
En la página 72, párrafo 116, se indica que Suiza otorga subsidios a la exportación a varios productos 
agrícolas procesados. ¿Podría ejemplificar cuáles so n los productos a los cuales se le otorgan estos 
subsidios y cuál es el monto que se destina para este tipo de ayuda ? 
 
Réponse 
The amounts are adjusted four times a year. They can be found under the following Internet 
link: http://www.seco.admin.ch/themen/a ussenwirtschaft/warenverkehr/zollfragen/ 
index.html?lang=fr  
The compensation amounts on a raw material-sp ecific basis for incorporated products in the 
year 2000 were as follows: 
  Raw material  Compensation 
amounts1)   Expenditures in 2000 
 CHF/100 kg  Mio. CHF  
Milk, fresh (3,8 %) 28.70  78 Dairy 
Skimmed milk, fresh 15.60    
Cream, fresh (35 %) 252.10    
Whole milk powder (26 %) 347.50    
Skimmed milk powder 275.10    
Cream powder (53 %) 590.20    
Milk concentrated (9 %) 120.30    
Butter (82 %) 21.002)    
Butter (100 %) 25.612)    
Flour of wheat, rye, spelt, meslin 111.70  31 Cereals 
Eggs yolks, dried 215.152)  3 Other 
Eggs dried 156.732)    
Egg yolks, otherwise preserved 82.952)    
Eggs, otherwise preserved 43.232)    
Sugar and molasses from 10.502)    
 to     53.552)    
  Total 112  
1) Valid Oct-Dec 2000. 
2) Inward-processing, restitu tion of import duties.  
 
  (iii) Export promotion 
  (iv) Export credits, insurance and guarantees 
  (v) Other provisions 
 
Costa Rica 
122. Question  
En la página 74, párrafo 17, se indi ca que en Liechtenstein no existen “ export-processing zones ” ni 
“free ports ”, a diferencia de Suiza en donde existe cerca de 30 free ports.  ¿Qué tipo de beneficios o 
incentivos otorga el gobierno de Li echtenstein al sector exportador? WT/TPR/M/141/Add.1 
Page 50  
 
 (4) Measures Affecting Production and Trade   (i) Government subsidies and other assistance  
USA 
The Secretariat Report indicates in paragraph 129, page 74 that government assistance to businesses is 
granted at both federal and sub -federal levels in the form of, inter alia , “ad hoc support in times of 
crises.”    
123. Question  
Please explain what criteria Swiss authorities use to determine which industries warrant such support, 
under what circumstances, and what form of support is provided.   
 
Réponse (Questions Costa Rica et USA) L'arrêté fédéral en faveur des zones économique s en redéploiement (RS 951.93) permet à la 
Confédération et aux cantons d'encourager la réa lisation de projets d'entreprises industrielles 
ou d'entreprises de services proche de la production industrielle.  
Pour pouvoir bénéficier d'une aide fédérale, l'entreprise, respectivement le projet doivent 
remplir un certain nombre de conditions: 
• Il doit s'agir d'une entreprise industrielle ou d'une entreprise de service proche de la 
 production industrielle; 
• L'entreprise doit être située dans une zone en redéploiement. Ces zones sont définies 
 dans l'ordonnance sur la déterminatio n des zones économiques en redéploiement 
 (RS 951.931.1). D'une façon générale, ces zones se caractérisent par un besoin 
 particulier d'adaptation structurelle, un chômage prononcé dépassant la moyenne 
 nationale, une évolution du nombre d'emplois nettement plus défavorable qu'en  moyenne nationale.  
• Le projet doit être novateur, créateur d'une forte valeur ajoutée et permettre la création 
 de nouveaux emplois ou le maintien  à long terme des emplois existants 
 
La Confédération peut garantir des crédits d'in vestissement sous forme de cautionnement 
jusqu'à concurrence d'un tiers du coût total du projet pour une durée maximale de 8 ans, contribuer pendant maximum 5 ans au service de l'intérêt (50%, c'est-à-dire 25% confédération 
– 25 % canton) des crédits d'investissement jusqu'à concurrence d'un tiers du coût total et 
accorder des allègements fiscaux pour  une durée maximale de 10 ans.  
 
Depuis 2002, un nouvel instrument, les aides financ ières interentreprises, o ffre la possibilité de 
soutenir des institutions et des projets qui accroissent le potentiel de développement d'entreprises et favorisent l'investissement et l'in novation. Le soutien de la Confédération prend 
la forme d'une contribution forfaitaire de maximum CHF 300'000.- par projet et par année.   
Tous les instruments susmentionnés sont conditi onnés à une participation au moins équivalente 
de la part du canton.  124. Question  
If loans are provided, what are the terms and conditions ?    
Réponse  
Par l'arrêté fédéral en faveur des zones économi ques en redéploiement la Confédération peut 
uniquement cautionner des crédits d'investissement . Elle n'octroie pas de prêts. Les pertes sur 
cautionnement représentent en moyenne envi ron 5 % du montant total des cautionnements 
accordés. 
 
 WT/TPR/M/141/Add.1 
Page 51 
 
 
 125. Question  
Please provide an example where the government provided such support in the industrial sector. 
 
Réponse  
Filiale créée par un groupe européen dans une zone  bénéficiaire du canton de Vaud en vue de la 
fabrication, du développement et de la vente d'outils de découpe. Les investissements pour 
l'achat du terrain, la construction de l'usine, ainsi que l'achat des machines et équipements nécessaires à la production se sont élevés à CH F 12'600'000.-. A moyen term e ce projet devrait 
engendrer la création d'une centaine d'emplois. La  société a bénéficié d'une caution de CHF 4.2 
mio. pour une durée de 8 ans, avec une prise en charge d'intérêt sur le même montant pendant 5 
ans (soit environ CHF 500'000.- canton et conféd ération pour 5 ans) et exemption de l'impôt 
fédéral direct pendant 10 ans. Cette dernière est octroyée selon l'article 23 alinéa 3 de la loi 
fédérale sur l'harmonisation des impôts direct s des cantons et des communes qui prévoit la 
possibilité d'accorder des allégeme nts fiscaux en faveur des ent reprises indigènes ou étrangères, 
nouvellement créées, pour une durée maximale de 10 ans. 
 
Entreprise suisse créée dans une région bénéfici aire du canton de Fribourg dans le but de 
concevoir, de développer et de commercialis er des solutions d'électroniques industrielles 
(alimentation et générateurs électriques spécial isés pour les domaines industriels de haute 
technologie). Ce projet, qui prévoit un investisse ment de CHF 1'500'000.- et la création d'une 
dizaine d'emplois, bénéficie d'un cautionnement de 8 ans sur un montant de CHF 500'000.- avec 
une prise en charge d'intérêt pour une durée de 3 ans sur le même montant (soit environ CHF 
38'000.- canton et confédération pour 3 ans) et d'un allégement de l'impôt fédéral direct de 100% pour les 5 premières années et de 50% pour  les 5 années qui suivent la première période 
d'exonération.  
 
EC 126. Question  
Referring to page 77 of the report prepared by the WTO secretariat:  Could Switzerland explain the 
underlying rational for the tax advantages granted to  corporations that engage predominantly in 
business activity outside Switzerland ? 
Réponse  
The conditions are exposed in paragraph 142: admi nistration companies, according to Art. 28 
federal Tax Harmonisation Law, are companies which can only have an administrative activity in Switzerland but not a commercial activity or  a commercial activity of secondary nature (a 
commercial activity in Switzerland is therefore no t totally prohibited, but it must remain of a 
secondary nature).  The law does not contain any particular requirement about the residence of 
the shareholders (residents, not residents), so that  the regime is not ring-fenced. A tax reduction 
is only granted at the cantonal level, the fed eral direct tax and the withholding tax of 35% on 
distributed dividends being fully applicable. 
 
As a result of federalism and fiscal sovereignty in  the field of direct taxes, Swiss cantons can 
define the existence of a permanent establishment abroad differently from federal law. This 
local treatment, aimed at locating  companies carrying out an activity of administrative nature 
in the canton/municipality, takes into account the fact that administrative companies do not use 
the infrastructure of the country in the same wa y as companies that have a commercial activity 
in Switzerland, and therefore partly exempts in come presumed attributable to activities 
exercised abroad. At the federal level however, the whole profit registered in the accounts is 
taxed with no distinction between the commerci al activity exercised abroad (or of secondary 
nature in Switzerland) and the administrative activity in Switzerland. WT/TPR/M/141/Add.1 
Page 52  
 
There are no official statistics available on administ rative since they are not a particular kind of 
company at the federal level. As these companies cannot have a commercial activity, or only one 
of secondary nature, in Switzerland, they ca nnot produce/manufacture goods that can be 
exported. When intervening in a transaction be tween two foreign contractors, there is, as a 
matter of rule, no import or export of goods in or from Switzerland. 
  (ii) State-trading enterprises and exclusivity rights 
 
USA 
Table III.5 on page 79 of the Secretariat Report lists  state enterprises of Switzerland and Liechtenstein 
that have some exclusivity rights in the customs union.   
 
127. Question  
A) What annual reports must these entities file to validate that their operations are on a commercial 
basis?  If reports are filed, what Swiss or Liech tenstein government agency is the recipient ? 
 
B) If reports are filed, are they available to privat e shareholders, if any, of the listed entities, the 
public, and other WTO Members?  Are the reports revi ewed by independent auditors?  Is so, are their 
findings made public ? 
 
Réponse  
Les importations d’éthanol à plus de 80% du vo lume sont faites par la Régie fédérale des 
alcools. Les achats sont faits par appels d’o ffre, conformément aux règles du GATT. L’éthanol 
est vendu au prix de revient, conformément à la lo i. La Régie fédérale des alcools est une agence 
du Gouvernement. Ses comptes sont soumis au Gouvernement et au Parlement qui les 
approuvent. Ils sont publics. 
 
Les comptes détaillés sont révisés par le Contrô le fédéral des finances, organisme dépendant 
directement du Gouvernement et du Parlement. 
Australie 
The Secretariat report notes that the Swiss Confeder ation, through alcosuisse, a profit centre of the 
Régie fédérale des alcohols (RFA), has a monopoly over imports of ethanol with alcohol content of 
over 80% by volume.  However, imports by the private sector are possible, subject to prior 
authorisation by the RFA (WT/TPR/S/141 page 78, para 145).   
 
128. Question  
What are the authorisation criteria for imports of ethanol by the private sector?  
 
Réponse  
L’importation d’éthanol de moins de 80 % vol d’alcool est entièrement libre et n’est pas soumise au monopole.  Pour l’alcool à plus de 80 % vol, les importations  sont faites par la Régie fédérale des alcools, 
qui livre aux entreprises au prix de revient. Les entreprises privées peuvent être autorisées à 
importer directement les qualités d’éthanol qui ne fo nt pas partie de l’assortiment normal de la 
Régie fédérale des alcools. 
 
 (iii) Developments in compe tition policy and price surveillance 
 
Australie 
The Secretariat report notes that the Law on Cartels in Switzerland was amended in April 2004 (page 
81, para 154).     WT/TPR/M/141/Add.1 
Page 53 
 
 
 129. Question  
Following the amendment, does Swiss competition policy, including the Law on Cartels, apply 
equally to all sectors of the economy?  Are ther e, for instance, any sectoral exclusions from 
application?  Réponse  Cartel legislation is generally applicable to all economic sectors under the reservation of art.3 
para. 1 Lcart. This article contains no specific exclusions or exemptions but simply states in a 
general manner that cartel legislation does no t apply if by law a market regime and rules 
regarding prices are established. However, in  these areas the Competition Commission can 
exercise its advocacy role and issue recomm endations to the authorities concerned. 
 
130. Question  
The Secretariat report notes that the Federal Council of Switzerland may grant exceptions to the 
application of the Law on Cartels, on the grounds of compelling public interest, or where other 
provisions of law restricting trade take precedence  (page 82, para 159).   
 Is the entire agriculture sector excluded?  Are there parts of the agriculture sector that do not have an 
official market or price system that are not exem pt from the Law? If so, wh at products are covered by 
the Law and if all products are covered, what is the justification for this very broad exemption ? 
 Réponse  The agricultural sector falls under the Law on Cartels. The Swiss Federal Council may grant exceptions to the application of the Law on Cartels, on the grounds of compelling public 
interest. Under certain conditions measures of join t-activity organizations can be declared as 
mandatory for all the firms in that market, i. e. not only for its members. The aim of the 
regulation is to encourage joint efforts of th e agricultural enterprises to better promote and 
market their products. It solves the problem of  free riders who would benefit from a private-
sector market promotion measure but would otherw ise not apply it and would not bear its cost. 
At present, seven organizations benefit from an  extension decision of the Swiss Federal Council 
to non-members, most of these decisions support ing collective measures of joint promotion of 
agricultural products. There is no general exemptio n. Each case is examined separately by the 
Federal Council.  
EC 
131. Question  
Referring to Point III.165 on page 83 of the repo rt prepared by the WTO secretariat: Could 
Switzerland
 clarify if there are thoughts about future initiative leading towards an exchange of 
information in competition law cases and competition law enforcement.  
Réponse  
After the recent revision of the Swiss cartel le gislation, the main goal of which concerns the 
improvement of the law's deterring effect on a national level, a next step would consist in 
striving towards the possibility of more efficient actions against international cartels. It will 
have to be further examined how the current cooperation between the Swiss Competition Commission and its important foreign partners could be improved e.g. by the means of 
cooperation agreements.  
Taipeh Chine 
132. Question  
Three laws dealing with competition policy have  been amended since 2002 in order to enhance 
competition in Switzerland.  When facing abnormal pr ice increases of goods or services, how will the WT/TPR/M/141/Add.1 
Page 54  
 
Law on Cartels (LCart) and the Law on Price Surve illance (LSPr) be applied? Is there any conflict 
between the authorities of Competition Commission and the Price Inspector ?  
Réponse  
Loi fédérale sur les cartels (LCart)
 
Tout d’abord, il convient de relever qu’une au gmentation des prix n’est pas forcément le 
résultat d’une pratique anticoncurrentielle illicite.  En effet, la loi sur les cartels s’applique lo rsque les conditions suivantes sont remplies :  
Les pratiques d’entreprises ayant une position do minante sont réputées illic ites lorsque celles-ci 
abusent de leur position et entravent ainsi l’accès d’autres entreprises à la concurrence ou son 
exercice, ou désavantagent les partenaires commerciaux (art. 7 LCart.). 
 
Sont en particulier réputés illicites: 
• la discrimination de partenaires commerciaux en matière de prix ou d’autres 
• conditions commerciales; 
• le fait d’imposer des prix ou d’aut res conditions commerciales inéquitables; 
• la sous-enchère en matière de prix ou d’au tres conditions commerciales, dirigée contre 
 un concurrent déterminé.  Loi fédérale concernant la surveillance des prix (LSPr)
 
Le Surveillant des prix observe l’évolution des prix. Il empêche les augmentations de prix 
abusives et le maintien de prix abusifs. D’après ar t. 4 al. 2 LSPr, la surveillance de certains prix 
par d’autres autorités est réservée (art. 15 LSPr).  Selon l’art. 5 LSPr, le Surveillant des prix c oopère avec la Commission de la concurrence. Il 
participe aux séances de la Commi ssion de la concurrence avec voix consultative. Le Surveillant 
des prix et la Commission de la concurren ce s’informent mutuellement des décisions 
importantes qui relèvent de leurs domaines d’acti vité. Lorsqu’il s’agit d’apprécier des questions 
relatives au champ d’application à raison des p ersonnes (art. 2 LSPr), ainsi qu’à la notion de 
concurrence efficace (art. 12 LSPr), le Surveillant des prix ou l’autorité compétente consultent 
la Commission de la concurrence avan t de prendre leurs décisions.  
 
L’examen de l’abus des prix se base sur la principe de la politique de la concurrence (art. 12 LSPr). Selon l’art. 16 LSPr, la Commission de la Concurrence peut procéder à des enquêtes sur 
des accords en matière de concurrence ou des entreprises puissantes sur le marché même 
lorsque le Surveillant des prix a réduit le prix abusif ou suspendu la procédure. L'examen du 
caractère abusif des prix convenus ou de ceux d'entreprises puissantes sur le marché est réservé 
au Surveillant des prix.  
 (iv) Intellectual property rights (IPRs) 
 Canada  133. Question  
§176 
The Secretariat Report notes that “[t]he right to a tr ade mark belongs to the person who first files the 
mark”.  Canada would like to know if a trade mark registration may be declared invalid because of the 
prior use in Switzerland of a trade name wh ich is similar to the registered mark ? 
Réponse  
Comme cela a été relevé dans le rapport du Secrét ariat, l’article 5 de la loi fédérale du 28 août 
1992 sur la protection des marques et des indications de provenance (LPM; RS 232.11) stipule que le droit à la marque prend naissance par l’ enregistrement. Il convient toutefois de relever 
dans ce contexte que la procédure d’examen des demandes d’enregistrement de marque porte WT/TPR/M/141/Add.1 
Page 55 
 
 
 en Suisse uniquement sur les motifs absolus de refus (domaine public, tromperie du public, 
violation du droit en vigueur, etc.) et non pas sur les motifs relatifs (droits de tiers sur le signe 
distinctif). Il peut donc arriver qu’une marque enregistrée entre en conflit avec un nom commercial et que la décision de justice qui en rés ulte entraîne la radiation de la marque dans le 
cas où un droit prioritaire serait reconnu au no m commercial. Conforméme nt aux prescriptions 
de l’Accord sur les ADPIC et à l’article 8 de la  Convention de Paris pour la protection de la 
propriété industrielle, la Suisse se doit en effet d’assurer une protection aux noms commerciaux. 
Diverses voies de droit existent pour régler les conf lits entre ces droits concurrents, on peut citer 
à ce titre l’action en constatation prévue à l’article 52 LPM, les voies de droits prévues par la loi fédérale du 19 décembre 1986 contre la concurrence dé loyale (articles 2ss; LCD; RS 241) ou les 
actions plus spécifiques relevant de la protect ion des noms commerciaux enregistrés comme 
raison de commerce en vertu du Code des oblig ations du 30 mars 1911 (articles 944ss CO; RS 
220) ou de la protection du droit au nom en vertu du Code civil suisse du 10 décembre 1907 (article 29 CC; RS 210).  
134. Question  
§180  (Canada)  
The Secretariat Report notes that geographical indica tions (GIs) of products and services are under the 
general protection of the Law on the Protection of  Trademarks and Indications of Source (LPM). 
Could Switzerland explain what is meant by “[t]hi s law grants GIs automatic protection without any 
formal notification and registration procedures”? 
Réponse 
La protection conférée par la loi fédérale du 28 ao ût 1992 sur la protection des marques et des 
indications de provenance (article 47ss LPM; RS  232.11) assure une protection des indications 
de provenance que l’on peut qualifier d’«automati que» dans la mesure où cette protection ne 
dépend pas d’une notification ou d’un enregistrem ent auprès d’une autorité étatique. Ainsi, 
indépendamment de toute notification ou enre gistrement de l’indication de provenance en 
Suisse, toute personne ayant un intérêt juridique (ayant droit d’une indication de provenance, 
associations professionnelles ou économiques, organ isations de consommateurs) qui constaterait 
l’usage illicite d’une indication de provenance sur des produits ne provenant pas de la région ou 
du pays désigné par l’indication pourra recourir aux voies de droit civiles et pénales, ainsi qu’aux mesures à la frontière prévues aux articles 52ss de la LPM pour faire cesser l’emploi 
illicite de cette indication de provenance. 
Canada 
135. Question  
Could Switzerland describe the system of GI protect ion available to foreign producers, businesses or 
associations who seek Swiss GI protection? Is the “automatic protection” under the LPM also 
available to them ? 
 
Réponse  
Oui. La protection «automatique» des indications de provenance conférée par la loi fédérale du 
28 août 1992 sur la protection des marques et d es indications de provenance (article 47ss LPM; 
RS 232.11) est applicable à toutes les indicati ons de provenance qu’elles soient suisses ou 
étrangères et vise tous les produits et services . Toute personne ayant un intérêt juridique (ayant 
droit d’une indication de provenance, a ssociations professionnelles ou économiques, 
organisations de consommateurs), indistinctement de  sa nationalité, peut donc bénéficier de la 
protection conférée par cette loi sur le territoire suisse.  
La protection générale des indications de pr ovenance conférée par la LPM est complétée par 
des systèmes d’enregistrement spécifiques pour le s produits agricoles et les produits agricoles 
transformés, ainsi que pour les vins. Il convient  de noter que ces systèmes ne déterminent pas le WT/TPR/M/141/Add.1 
Page 56  
 
début de la protection des indications inscrites,  mais ils se contentent de constater leur 
existence; les désignations enregistrées bénéfi cient en effet avant leur inscription de la 
protection conférée par la LPM. Ces systèmes d’ enregistrement sont régis respectivement par 
l’ordonnance du 28 mai 1997 concernant la prot ection des appellations d’origine et des 
indications géographiques des produits agricol es et des produits agricoles transformés (RS 
910.12) et par l’ordonnance du 7 décembre 1998 sur la viticulture et l’importation de vin (RS 
916.140). Ces systèmes sont également ouverts au x indications géographiques étrangères dans la 
mesure où les conditions spécifiques fixées par ces règlementations sont remplies. En ce qui 
concerne, les appellations des vins, il convient de noter que la compétence relève des cantons et 
que la Confédération et plus particulièrement l’Office fédéral de l’agriculture a reçu seulement 
la tâche d’établir et de tenir un répertoire des appellations de vins protégées (ce répertoire est 
en cours d’établissement). Une fois établi, ce sera au niveau du répertoire fédéral que les 
appellations de vins étrangers qui respecteront le s conditions fixées par l’ordonnance pour leur 
inscription pourront être inscrites à la demande d’une autorité étatique d’un pays tiers.  
La loi fédérale du 19 décembre 1986 contre la concurrence déloyale (LCD; RS 241) et la loi 
fédérale du 9 octobre 1992 sur les denrées alimen taires et les objets usuels (LDAI; RS 817.0) 
peuvent également être invoquées tant par des ressortissants suisses qu’étrangers pour faire 
cesser l’emploi abusif d’indications de provena nce suisses et étrangères dans les cas entrant 
dans leur champ d’application respectif.  
 
Costa Rica 136. Question  
Por favor sírvanse explicar en detalle los resultados  del proceso de revisión de la Ley Federal de 
Derecho de Autor y Derechos Conexos, al que se hace referencia en el párrafo 173 del Informe de la 
Secretaría. 
Réponse  
Le projet de révision adapte la loi sur le dr oit d’auteur aux développements technologiques et 
reprend les normes fixées dans les traités de  l’OMPI. Il s’inspire aussi des exigences 
additionnelles formulées dans la Directive de l’Un ion européenne sur la société de l’information 
(Directive 2001/29/CE du Parlement européen et du Conseil du 22 mai 2001 sur l’harmonisation 
de certains aspects du droit d’auteur et des droits  voisins dans la société de l’information, JO L 
167 du 22.06.2001) concernant la pondération des in térêts en cause. La révision législative doit 
permettre d’équilibrer les différen ts intérêts en jeu afin que la loi améliore les conditions 
générales essentielles au développement de la société de l’information. Conformément aux 
normes internationales, la Suisse doit précise r que la mise à disposition d’oeuvres et de 
prestations par le biais de services interactifs es t un droit exclusif réservé au titulaire du droit 
d’auteur ou du droit voisin. S’il est vrai que cette nouvelle forme d’utilisation pourrait être 
couverte par les prérogatives classiques, telles qu’ elles sont ancrées dans la Convention de 
Berne du 9 septembre 1886 pour la protection des oeuvres littéraires et artistiques (révisée à 
Paris le 24 juillet 1971), le législateur suisse a préféré créer une situation juridique claire et 
conforme aux exigences internationales en fa isant figurer expressément ce droit de mise à 
disposition parmi les prérogatives réservées aux différents ayants droi t. Par ailleurs, il est prévu 
que les artistes interprètes, auxquels le législ ateur reconnaît désormais un droit moral, voient 
leur protection, limitée jusqu’à présent aux exécutions d’oeuvres, s’étendre aux prestations folkloriques. Ces deux modifications de la loi s’ imposent pour que la législation suisse régissant 
la protection des droits voisins soit en co nformité avec le WPPT. Outre ces modifications 
matérielles, qui ne font en partie que préciser la  loi en vigueur, le projet de révision prévoit un 
système de protection propre pour les mesures t echniques au moyen desquelles le titulaire de 
droits peut contrôler l’utilisation de son oeuv re ou de sa prestation. Ce nouveau système 
s’accompagne de la protection de l’information su r le régime des droits. La protection juridique 
contre le contournement de mesures techniques do it conférer une nouvelle dimension au droit 
d’auteur en ce sens que celui-ci ne porte plus  uniquement sur les biens immatériels mais WT/TPR/M/141/Add.1 
Page 57 
 
 
 s’étende désormais aussi aux moyens techniques de contrôle comme les dispositifs de 
verrouillage ou anti-copies. En transposant cette  protection dans la législation nationale, le 
législateur doit faire en sorte qu’elle n’entre pa s en conflit avec les exceptions au droit d’auteur 
et les droits à rémunération qui en découlent. Il  doit en outre éviter que la protection contre le 
contournement de mesures techniques ne rende illicites les utilisations d’oeuvres autorisées par 
la loi, dont certaines sont soumises à une rémun ération obligatoire. S’agissant de la mise en 
oeuvre de cette protection juridique, le législat eur a par ailleurs prévu des mesures protégeant 
les utilisateurs et les consommateurs contre une utilisation abusive de moyens techniques de 
contrôle par les titulaires de droits. Même s’ ils ne fournissent pas de mode d’emploi au 
législateur national pour éviter que la protectio n contre le contournement ne soit excessive par 
rapport au droit d’auteur matériel, le WCT et le WPPT prévoient suffisamment de latitude 
pour que les législateurs nationaux puissent adopt er des mesures. Le législateur suisse a exploité 
cette marge de manoeuvre en s’inspirant de la Directive sur la société de l’information 
susmentionnée. En adaptant la protection du droit d’auteur à l’évolution technologique, le législateur prévoit aussi d’accorder une grande importance aux intérêts des utilisateurs. Preuve 
en est que le projet de révision prévoit toute une série d’exceptions à la protection relatives à la 
mise à disposition d’oeuvres diffusées (art. 22a ,), aux reproductions provisoires (art. 24a), aux 
reproductions à des fins de diffusion (art. 24b ), à l’utilisation par des personnes handicapées 
(art. 24c) et aux enregistrements d’archives (art. 38a). Le projet de révision (art. 20a) prévoit 
également l’adaptation du système de rémunérati on pour la reproduction d’oeuvres à des fins 
privées. Le système de rémunération s’en trouve assoupli puisqu’il ne se limite plus aux seuls 
supports vierges, mais permet aussi de perce voir une redevance sur les appareils. Grâce à cette 
modification, le législateur prévoit d’étendre le champ d’application de la loi à des techniques de reproduction dont le droit en vigueur tenait insuffisamment compte jusqu’à présent. La nouvelle réglementation contribue en outre à réduire le travail administratif des petites et des moyennes entreprises occasionné par l’indemn isation du droit de rémunération pour les 
photocopies faites à des fins d’informat ion et de documentation internes.  
 Le projet de loi est actuellement en consultation  jusqu’à la fin de janvier 2005. Il est disponible 
sur Internet à l’adresse http://www.ige.ch/F/jurinfo/j103.shtm#1.  
 
USA 
137. Question  
With respect to paragraph 186, page 87 of the Secr etariat Report concerning patent legislative efforts 
in the area of biotechnology, what is the status of Switzerland's efforts to harmonize with the EU 
Biotechnology Directive ?  Réponse  L’avant-projet de la loi sur les brevets d’invent ion révisée a été mis en consultation externe 
jusqu’au 31 octobre 2004. Les résultats de la cons ultation sont actuellement évalués. Dans le 
premier trimestre 2005 le Conseil fédéral se pronon cera sur la suite à donner au projet sur la 
base d’un rapport sur les résultats de la consultation . Dans le cas où le Conseil fédéral décidera 
d’élaborer un message, le projet de loi révi sée sera présenté au parlement au quatrième 
trimestre 2005. Son entrée en vigueur est prévue au plus tôt pour 2007.  
 Le projet a pour objectif d’assurer une protection appropriée des inventions biotechnologiques dans la lignée de la Directive 98/44/CE du Parlement européen et du Conseil du 6 juillet 1998 relative à la protection juridique des inventions biotechnologiques.  
 
138. Question  
With respect to paragraph 189, page 88 of th e Secretariat Report, how have Switzerland and 
Liechtenstein implemented TRIPs Article 27(3)  regarding protection of plant varieties ? 
 WT/TPR/M/141/Add.1 
Page 58  
 
Réponse  
The legal basis for the protection of plant varie ties are the Federal Law on the Protection of 
Plant Varieties of March 20, 1975 (Plant Variety Law, SR. 232.16), and the Federal Ordinance on the Protection of Plant Varieties of May 11, 1977 (Plant Variety Ordinance, as last amended on 8 March 2002, SR 232.161). 
 
Switzerland has been member of the Internationa l Union for the Protection of New Varieties of 
Plants (UPOV) since July 10, 1977. It ratified the 1978 Act of the UPOV Convention on June 17, 
1981; this Act is applicable to Switzerland sinc e November 8, 1981. The Plant Variety Law is 
currently being revised in order to allow Swit zerland to ratify the 1991 Act of the UPOV 
Convention. 
 The authority responsible for the grant of titles of protection in the field of plant variety protection is the Bureau for Plant Varieties of the Federal Office of Agriculture, Federal Department (Ministry) of Economy, in Bern.  
 
139. Question  
Regarding paragraph 191, page 88 of the Secretaria t Report, how have Swit zerland and Liechtenstein 
implemented TRIPs Article 39(3) regarding prot ection of data against unfair commercial use ? 
 
Réponse  
La Suisse a mis en œuvre la protection requise par l’article 39(3) ADPIC dans sa législation dès 
l’entrée en vigueur pour elle de l’Accord ADPIC  (cf. à ce propos déjà doc IP/Q3/CHE/1, pages 
7-8). Pour ce qui est des produits thérapeutiques,  le règlement d’exécution de la Convention 
intercantonale sur le contrôle des médicaments du 25 mai 1972, tel que modifié la dernière fois 
le 25 novembre 1999, assurait la protection des informations non divulguée sous l’ancien 
système de réglementation de la mise sur le ma rché de médicaments en Suisse. La procédure 
d’autorisation à la mise sur le marché de mé dicaments ayant depuis lors été centralisée, cette 
protection a été reprise à l’article 12 de la Loi fédérale du 15 décembre 2000 sur les 
médicaments et les dispositifs médicaux (Loi su r les produits thérapeutiq ues, LPTh RS 812.21); 
cette disposition prévoit que quiconque sollicite l’autorisation de mettre sur le marché un 
médicament qui est très proche d’un médicament déjà autorisé (préparation originale) et qui est 
destiné au même emploi, ne peut se référer aux résultats des essais pharmacologiques, 
toxicologiques et cliniques du requérant précédent que si ce dernier l’y autorise par écrit ou si la 
protection de la préparation originale est échue. Il en va de même pour les autorités d’enregistrement. La protection est limitée à dix ans. Le Conseil fédéral peut également accorder une protection appropriée aux résultat s d’essais portant sur des préparations 
originales en cas de nouvelles indications, de nouveaux modes d’administration, de nouvelles 
formes galéniques ou de nouveaux dosages.  Pour ce qui est des produits phytosanitaires,  l’ordonnance sur les toxiques, du 19 septembre 
1983 (Otox, RS 813.01) prévoit la même protection en son article  17a al. 1 let. f. Il en va de 
même des articles 14 al. 2 et 15 al. 3 let. c  de l’Ordonnance sur l’homologation de produits 
phytosanitaires du 23 juin 1999 (Ordonnance su r les produits phytosanitaires, RS 916.161); 
Enfin, l’ordonnance sur la production et la mi se en circulation des aliments pour animaux, 
adoptée le 26 mai 1999 (Ordonnance sur les aliments pour animaux, RS 916.307) prévoit la protection du premier requérant selon l’art. 39, al. 3 ADPIC en son article 9 al. 2. La durée de la protection est également de 10 ans. 
 
Australie Geographical Indications 140. Question  
Can products from third countries be registered as GIs (as distinct from trademarks and/or 
certification marks) in Switzerland? Are there any such registrations?  If so, what foreign WT/TPR/M/141/Add.1 
Page 59 
 
 
 geographical indications have been registered.  Wh at conditions do foreign na tionals have to meet 
before they can register a GI in Switzerland ?    
Réponse  
Oui, il est possible de faire enregistrer en Suisse des indications géographiques de pays tiers 
pour les catégories de produits pour lesquelles un système d’enregistrement a été établi. Cela est 
le cas pour les produits agricoles, les produi ts agricoles transformés et les vins. A ce jour, 
aucune demande pour l’enregistrement d’une indication géographique étrangère n’a été 
déposée en Suisse. Il est toutefois important de relever dans ce contexte que même si aucune 
indication géographique étrangère n’est enregistrée actuellement, cela ne signifie pas que de 
telles indications ne sont pas protégées en Sui sse. La protection des indications géographiques 
en Suisse repose en effet à titre principal sur la loi fédérale du 28 août 1992 sur la protection des 
marques et des indications de provenance (article 47ss LPM; RS 232.11) qui assure une protection des indications géographiques, qu’elles soient suisses ou étrangères, indépendamment de tout enregistrement auprès d’une  autorité étatique et cela pour tous les 
produits et services. Les conditions à suivre po ur procéder à l’enregistrement d’indications 
géographiques de pays tiers pour les produits agric oles, les produits agricoles transformés et les 
vins sont les mêmes que celles fixées pour les indications géographiques suisses. Celles-ci sont 
spécifiées dans l’ordonnance du 28 mai 1997 concern ant la protection des appellations d’origine 
et des indications géographiques des produits ag ricoles et des produits agricoles transformés 
(RS 910.12) et dans l’ordonnance du 7 décembre 1998 sur la viticulture et l’importation de vin 
(RS 916.140). En ce qui concerne, les appellati ons de vins, il convient de noter que la 
compétence relève des cantons et que la Confédérati on et plus particulièrement l’Office fédéral 
de l’agriculture a reçu seulement la tâche d’établir et de tenir un répertoire des appellations de vins protégées (ce répertoire est en cours d’établisse ment). Une fois établi, ce sera au niveau du 
répertoire fédéral que les appellations de vins étrangers qui respecteront les conditions fixées 
par l’ordonnance pour leur inscription pourront  être inscrites à la demande d’une autorité 
étatique d’un pays tiers. 
 
141. Question  
Is there a central data base on which domestic and/ or foreign GIs (as distinct from trademarks and/or 
certification marks) are located?  How would a fore ign national or administration know what had been 
registered as a GI in Switzerland – where would they look to find out ? 
 
Réponse  
Comme indiqué dans la réponse à la question 25, la protection des indications géographiques en 
Suisse est basée à titre principal sur une protection sans enregistrement selon la loi fédérale du 
28 août 1992 sur la protection des marques et d es indications de provenance (article 47ss LPM; 
RS 232.11). Il n’y a donc pas de base de donné es centralisée dans laquelle figure toutes les 
indications géographiques suisses et étrangères protégées en Suisse.  
 Les informations relatives aux enregistrements des appellations d’origine et des indications 
géographiques pour les produits agricoles et les produits agricoles transformée sont disponibles 
sur le site Internet de l’Office fédéral de l’agriculture (OFAG) à l’adresse suivante: 
www.blw.admin.ch. L’OFAG procède actuellement à l’établissement du répertoire des appellations de vins. Une fois établi, les informat ions relatives aux inscriptions figurant dans ce 
répertoire devraient, elles aussi, être disponibles sur le site Internet de l’OFAG.  
142. Question  
If a foreign national wanted to challenge the registra tion of a GI (as distinct from trademarks and/or 
certification marks) in Switzerland what proce dures would they be expected to follow?   
 WT/TPR/M/141/Add.1 
Page 60  
 
Réponse  
D’après l’ordonnance du 28 mai 1997 concernant la protection des appellations d’origine et des 
indications géographiques des produits agricol es et des produits agricoles transformés (RS 
910.12), les ressortissants étrangers justifiant d’un intérêt digne de protection peuvent, dans les 
mêmes conditions que les ressortissants suisses,  faire opposition contre l’enregistrement d’une 
appellation d’origine ou d’une indication gé ographique. Les conditions pour faire une telle 
opposition sont fixées à l’article 10 de l’ordonna nce. C’est l’Office fédéral de l’agriculture qui 
statue sur ces oppositions. Sa décision en la matière pourra, le cas échéant, faire l’objet d’un 
recours devant la Commission de recours du Dé partement fédéral de l’économie (REKO); la 
décision de la REKO pourra faire, le ca s échéant, l’objet d’un recours devant le Tribunal 
fédéral (dernière instance). 
 L’ordonnance du 7 décembre 1998 sur la viticulture et l’importation de vin (RS 916.140) ne prévoit pas de procédure d’opposition pour  l’inscription des appellations de vins. La 
contestation sur la qualité d’indication de provena nce pour une appellation de vin figurant dans 
les listes des aires de productions tenues par les cantons suisses ou dans le répertoire fédéral 
pourra toutefois être invoquée dans le cadre d es procédures prévues par la loi fédérale du 28 
août 1992 sur la protection des marques et des indications de provenance (article 52ss LPM; RS 232.11). 
 
143. Question  
Does Switzerland recognize that country names can meet the definition of a GI?  If yes, what criterion 
must a country name meet before it can be r ecognized and protected as a GI?  Does Switzerland 
protect any country names as GIs?  If so, could Sw itzerland explain how that country name met the 
criterion of a GI in the TRIPs Agreement and under Swiss laws.  Réponse  Oui. Comme cela est indiqué au paragraphe 7 de la communication IP/C/W/353 du 24 juin 2002 
co-sponsorisée par la Suisse, les noms de pays qui servent à identifier un produit et qui remplissent les conditions de l’article 22.1 de l’Ac cord sur les ADPIC peuvent fort bien être des 
indications géographiques et sont protégés comme telles sur le territoire suisse. Les critères à 
remplir par un nom de pays pour être reconnu et  protégé comme indication géographique sont 
clairement définis à l’article 22.1 de l’Accord su r les ADPIC: il faut que ce soit une indication 
qui serve à identifier un produit comme étant originaire du territoire d’un pays, ou d’une région ou localité de ce territoire et que le pr oduit en question présente une qualité, réputation 
ou autre caractéristique déterminée qui peut être attribuée essentiellement à son origine géographique. Les critères fixés par cette défini tion sont à examiner dans chaque cas d’espèce 
(comme c’est le cas pour tout droit de propriété intellectuelle). D’après la loi fédérale du 28 août 
1992 sur la protection des marques et des indi cations de provenance (article 47ss LPM; RS 
232.11), la Suisse assure la protection comme indica tion géographique de tous les noms de pays 
qui, en fonction du produit pour lequel la protec tion est revendiquée, remplissent les conditions 
de l’article 22.1 de l’Accord sur les ADPIC. Dans la mesure toutefois où la protection des indications géographiques en Suisse ne repose  pas sur un système d’enregistrement (voir 
réponse à la question 25), il n’est pas possible de fournir la liste de tous les noms de pays qui 
sont considérés et protégés comme indica tion géographique sur son territoire. 
 
EC 
Concerning the registration of GIs and appellations of origin, The EC has in particular noted the 
information in the report of the WTO secretariat (page 86). 
 
144. Question  
In continuation of this report: Could Switzerland
 indicate the state of play regarding the registration of 
“Emmentaler” as protected geographic indication. 
 WT/TPR/M/141/Add.1 
Page 61 
 
 
 Réponse  
Conformément à la procédure prévue dans l’ordonnance du 28 mai 1997 concernant la 
protection des appellations d’origine et des indi cations géographiques des produits agricoles et 
des produits agricoles transformés (RS 910.12), l’ Office fédéral de l’agriculture a rendu le 10 
septembre 2004 une décision sur opposition conc luant au rejet des oppositions faites contre 
l'enregistrement de l’appellation d'origine co ntrôlée «Emmentaler». Cette décision a été 
attaquée par voie de recours devant la Commissi on de recours du Département fédéral de 
l’économie (REKO); la décision de la Commissio n est actuellement pendante. Une fois rendue, 
la décision de la REKO pourra, le cas échéa nt, faire l’objet d’un recours devant le Tribunal 
fédéral (dernière instance). 
 
145. Question  
Referring to enforcement and noting the information in the report of the WTO Secretariat (page 88):  
Could Switzerland  describe the measures available at the bor ders as regards the enforcement against 
infringements of intellectual property law. 
 
Réponse  
En Suisse, la Loi fédérale sur le droit d'auteur et les droits voisins (articles 75 à 77), la Loi fédérale sur la protection des marques et des i ndications de provenance (articles 70 à 72), la Loi 
fédérale sur la protection des designs (articles 46 à 49) et la Loi fédérale sur la protection des 
topographies de produits semi-conducteurs (article 12) en vigueur à ce jour prévoient des 
mesures d’intervention doua nières conformément aux articles 51à 60 de l’Accord sur les 
ADPIC.   Les autorités douanières agissent sur demande ainsi que ex officio. D’une part, si le titulaire 
d’un de ces droit de propriété intellectuelle est en possession d’éléments concrets laissant 
présager que l'importation ou l'exportation, ainsi qu e - dans la mesure où un droit de design est 
touché- le transit, de marchandises risque de porter atteinte à son droit en Suisse, il peut requérir par écrit auprès de l'administration d es douanes, que celle-ci refuse la mise en 
circulation de ces marchandises. Par sa collabora tion, l'Administration des douanes donne ainsi 
au requérant 10, resp. 20 jours pour obteni r des mesures provisionnelles auprès d’un tribunal 
civil. D’autre part, l'Administration des douanes est habilitée à attirer l'attention d'un titulaire 
de droit sur certaines marchandises, même sans qu e celui-ci l'ait préalablement requis, lorsqu'il 
est manifeste que leur importation, exportation ou  - dans la mesure où un droit de design est 
touché – le transit porte atteinte à un droit de  propriété intellectuelle du titulaire en Suisse. 
L’Administration des douanes fixe à la personne  avisée un délai de trois jours ouvrables pour 
lui indiquer si elle désire que les objets concernés soient retenus. Pendant ce délai, 
l'Administration des douanes est autorisée à retenir les objets suspects. Ceux-ci restent sous la 
garde de la douane trois jours au maximum, dans  la mesure où aucune demande d’intervention 
n'a été faite.  Actuellement, la Loi fédérale sur les brevets d’ invention fait l’objet d’une révision. Afin qu’à 
l’avenir les autorités douanières puissent également in tervenir en cas de contrefaçon de brevets, 
le projet de Loi prévoit d’y introduire l’outil des interventions de l’Administrations des 
douanes. Dans le cadre de la révision en co urs il est également prévu d’étendre le champ 
d’application des interventions douanières au tran sit pour l’ensemble des droits de propriété 
intellectuelle. De plus, il est prévu d’introduire dans l’ensemble des lois de propriété intellectuelle des dispositions permettant aux autorités douanières de remettre au titulaire du 
droit des échantillons ou des exemplaires de la marchandise suspecte et de détruire les 
contrefaçons découvertes dans le cadre d’une procédure simplifiée.  WT/TPR/M/141/Add.1 
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IV. TRADE POLICIES BY SECTOR 
 
 (1) I
NTRODUCTION  
 (2) A GRICULTURE  
  (i) Overview 
 
Costa Rica 
146. Question  
En el informe de la Secretaría se indica que Suiza es uno de los países de la OECD que más ayudas 
internas y subsidios a la exportación entrega al se ctor agrícola en proporción con el valor de su 
producción. De esta forma, ¿podrían indicar có mo toman en cuenta que estos mecanismos que 
distorsionan el comercio no afecten a los países en desarrollo?  
Réponse (voir aussi réponse à question 17 USA)  
According to the last export subsidies notification s and those to be notified in the next few days, 
actual expenditures in 2003 were at 30% of the base period and 45% of the commitment level. 
 According to the 2003 trade statistics of Switzerl and, developing countries and LDC's imported 
12% in value and 6% in quantities of the total exports of swiss agricultural products. Many of these products are high-priced goods such as spec iality cheeses or chocolates. Therefore, export 
subsidies granted by Switzerland can hardly be sa id to have a trade distorting effect on the 
developing countries.    
147. Question  
En los párrafos 9 y 10 del informe de la Secretaría , se habla sobre los “Pagos directos” que hace el 
gobierno de Suiza a los productores agrícolas, estos pagos son en el marco de  programas ambientales. 
Al respecto: 
a) ¿Podrían Suiza explicar con mayor detalle el  esquema de funcionamiento de cada programa 
que brinda estos pagos directos? ¿Cuánto a variado la producción desde su aplicación? 
b) ¿Considera Suiza que dichos pagos han cump lido con el objetivo ecológico del programa? 
 
Réponse 
a) The basic condition for all direct payments is an additional cross-compliance: 7% of surfaces 
to be set aside for extensive use, certain animal welfare conditions, restrictive use of pesticides, 
etc. apply.  We distinguish between general and ecological direct payments. 
• General direct payments are a compensati on for non market performances such as; 
contribution to food security, maintenance of  the ecological sustainability, landscape 
managment and decentralised settlement of the country. 
• Ecological direct payments are an incentive for special environmental and ethological 
performances.  
 b) All these measures are evaluated on a permanent basis. Most indicators show a positive trend  
(phosphore surplus, use of pesticides, ammonium  emissions, nitrate pollution and biodoversty). 
Not yet attained is the overall objective for to tal emissions and the full amount of ecological 
compensation areas in the plains. 
. 
New Zealand 
148. Question  
Given its positive experience with a liberal trad ing regime in the non-agricultural sector, New 
Zealand would welcome Switzerland’s comments o wh y it has Switzerland not yet applied a more 
liberal trade regime in the agriculture sector ? H as Switzerland considered the benefits that might WT/TPR/M/141/Add.1 
Page 63 
 
 
 accrue to domestic consumers and food processors in  the form of lower food prices and variety of 
products available if its agricultural regime we re liberalised ? What arguments has Switzerland 
considered in weighing the relative benefits of a more liberalised regime to consumers and food 
processors on the one hand, a nd to farmers on the other ? 
 Réponse  En guise de remarque liminaire, la Suisse amerai t répéter qu'elle a engagé son agriculture dans 
un processus de réformes continu dès le début des années 90. Ce processus se poursuit et un nouveau de programme de réforme est ac tuellement en cours de préparation. 
Les raisons qui ont longtemps freiné une réforme a ccélérée de l'agriculture suisse sont de nature 
historique. La précarité de l'approvisionnement et les efforts considérables qui ont été fournis 
pour l'assurer dans une Suisse relativement pauvre en ressources agricoles ont durablement marqué les esprits et perpétué jusque dans les années 80 la notion d'un taux 
d'autoapprovisionnement maximum. Depuis, comm e mentionné ci-dessus, d'importants efforts 
ont été fournis et continueront d'être fournis. A titre d'exemple, le système de contingentement 
laitier sera complètement aboli à partir de  2009. De plus le commerce de fromage sera 
également totalement libéralisé avec l'UE dès le 1e r juin 2007. Ces deux principaux éléments de 
réforme auront certainement d'importantes conséquences de restructuration et témoignent encore une fois de la volonté de réforme manifest ée par la Suisse. Autre élément de réflexion, le 
nombre d'exploitations agricoles a diminué de 27'000 (-29%) entre 1991 et 2003. Le nombre de personnes occupées dans le secteur agricole a di minué de 60'000 (-24 %) , la valeur de la 
production du secteur de 26% et le revenu net d'entreprise de 27% durant ce même laps de 
temps. En regard de la question du principe de l'urgence et du bénéfice que les consommateurs retirent d'un processus de libéralisation, nous pensons qu'il faut également tenir compte du 
contexte général et réfléchir en termes de pou voir d'achat. A ce titre et selon une publication de 
l'Union des Banques Suisses, il est intéressant de  constater que l'achat du Big Mac, produit 
universel s'il en est, "coûte" 14 minutes de temps de travail à Zürich, alors qu'il en coûte 19 
minutes à Auckland ou à Sydney. Il en va de même pour un kilo de farine, avec un nombre de minutes nécessaires de 6, 19 et 15 minutes pour les mêmes villes. 
Il est toutefois évident, même pour la Suisse, que  le principe de la transmission du signal des 
prix est un problème qui dépasse le cadre de l'agriculture proprement dite, et des réformes adéquates et multisectorielles doivent permettre d'y répondre.       
 
149. Question  
Has Switzerland considered addressing its non-trade concer ns by shifting more or all of its agriculture 
policies to ‘green box’ policies ? What is the policy justification for not doing so ? 
 Réponse  Le gouvernement suisse dédommage une part de ses considérations autres que d'ordre commercial au moyen de la boîte verte, notamme nt celles qui ont trait à l'utilisation écologique 
des ressources et au bien-être animal. L'attribut ion de paiements de soutien découplés de la 
production, dont l'importance croît au fur et à mesure des réformes de la politique agricole, 
sont par ailleurs dépendantes du respect de prestations écologiques requises. Ces mesures 
dédommagent la production de biens non ma rchands que l'agriculutre produit et que le 
contribuable est disposé à payer puisqu'un articl e constitutionnel définit le rôle de la 
Confédération hélvétique en regard de la condui te de la politique agricole. Dans ce sens, la 
réponse est oui, la Suisse a considéré la possibilité de dédommager certaines de ses 
considérations autres que d'ordre commercial au moyen des mesures de la boîte verte. 
Toutefois, certaines considérations autres que d' ordre commercial ne peuvent pas être adressées 
par ces mesures. Il s'agit de celles qui ont trait à la production de biens marchands. En effet la 
sécurité des aliments, l'extension de l'application des dispositions liées aux indications géographiqes à tous les produits agricoles ou encore l'information des consommateurs sur les WT/TPR/M/141/Add.1 
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méthodes de production de ces biens sont des qu estions qui n'ont pas encore été réglées de façon 
adéquate au niveau international.   150. Question  
According to the Secretariat’s report, the Swiss agri culture legislation has been subject of a further 
review since 2000 named AP2007. AP2007 includes the gradual elimination of milk production 
quotas.  What are the timeframes envisaged fo r the elimination of milk production quotas ? 
 
Réponse  
Le système de contingentement laitier disparaîtra le 30 avril 2009 au plus tard. Cependant, le 
législateur a prévu la possibilité d'en exempt er certains producteurs dès le 1er mai 2006.  
L'ordonnance sur l'exemption du contingentement laiti er (OECL) règle l’exem ption anticipée, c’est-à-
dire la période transitoire du 1
er mai 2006 à la suppression générali sée du contingentement le 30 avril 
2009. En effet, deux différents syst èmes d’orientation de  la production coexisteront durant ces trois 
années. Grâce à cette réglementation transitoire, l es producteurs laitiers faisant usage de l’exemption 
anticipée bénéficieront d’une réduction des frais de  production et d’une liberté entrepreneuriale 
accrue. Ils seront toutefois assujettis à certaines rest rictions durant les trois années considérées afin 
d’éviter un gonflement incontrôlé de la quantité de lait. Peuvent  être exemptés les producteurs 
membres d’une interprofession, d’une organisation de producteurs ou d’une organisation producteurs-
utilisateur. Quant à ces organisations, elles doivent remplir les exigences prévues dans l’ordonnance. 
Les restrictions ont été fixées de telle manière que  l’exemption représente une vraie chance pour tous 
les types d’organisations. Cependant, chaque producteur de lait est libre  de décider s’il veut sortir du 
contingentement ; personne ne peut y être forcé.T oute autre information utile peut être trouvée sur 
www.blw.admin.ch.  
151. Question  
Also as part of AP2007, the Secretariat’s report stat es that “in a decision that runs counter to the 
reduction in trade-distorting support, direct paym ents under AP2007 are no longer to be a degressive 
function of cultivated land and number of animals”.  While the Secretariat goes on to note that this 
will not be put into practice during 2004-07, can Switzerland outline the policy considerations behind 
this change, and, in particular, the justification for taking what New Zealand would consider to be a 
backward step ?    Réponse  Direct payments are now made regardeless of farm size and correspond to surface and number 
of cattle. There is no increase in trade distorsion , since as far as the surface is fix and the 
number of cattle per hectare is limited. The aim of  the change was to allow for easier structural 
adjustments.  
 
152. Question  
We are pleased that Switzerland has agreed to set an end date for export subsidies in the current 
negotiations as part of the July Framework text.  In that light, has Switzerland considered an early 
phase-out or at least reduction of its cu rrent high levels of export subsidies ? 
 Réponse (voir réponse US et Costa Rica sur les subventions aux exportations) 
According to the last export subsidies notification s and those to be notified in the next few days, 
actual expenditures in 2003 were at 30% of the base period and 45% of the commitment level.   Respective to the question of an early phase-out or at least reduction, please refer to oral staments in the DDA negociation. 
 
Colombie 153. Question  
En el párrafo 5 se dice que entre los objetivos de la política agrícola están "contribuir sustancialmente 
a la seguridad del suministro alimentario interno", como prioridad constituciona l, la cual se entiende WT/TPR/M/141/Add.1 
Page 65 
 
 
 en términos generales como un grado elevado de autosuficiencia (producción nacional en relación con 
el consumo nacional), de donde entendemos que se desprende la aplicación de un alto nivel de 
protección y de subvenciones, especialmente en bene ficio del sector pecuario. La formulación de la 
política agrícola en estos términos parece es tar definida a un contexto político y económico 
internacional diferente al actual. ¿Podría Suiza explicar por que consideran que la seguridad 
alimentaria no puede lograrse a partir de impor taciones de alimentos provenientes de países 
productores eficientes, a menores precios para lo s consumidores, y más acordes con la evolución 
política y económica internacional actual?   
Réponse  
In the Swiss view, and based on his historical ex perience, food security is best assured through a 
combination of imports, public and private stockholding and domestic production.  For further considerations on this issue,  please refer to the ongoing DDA negociation. 
 
154. Question  
En los párrafos 26 y 27 se informa sobre el complejo  sistema de precios "indicativos" o "umbral", se 
afirma que el sistema mantiene a los productores al  margen de las señales de precios del mercado 
mundial, lo cual afecta negativamente a los cons umidores al contribuir habitualmente a mantener 
elevados los precios. Teniendo en cuenta esta af irmación y lo anteriormente referido sobre sus 
objetivos de política,  ¿Cómo considera Suiza que la seguridad alimentaria es compatible y se puede 
lograr con precios de los productos agropecuarios muy altos a los consumidores? 
 
Réponse  
En regard du bénéfice que les consommateurs reti rent d'un processus de libéralisation dans le 
contexte de la sécurité alimentaire, il faut égal ement tenir compte du pouvoir d'achat. A ce titre 
et selon une publication de l'Union des Banque s Suisses, il est intéressant de constater que 
l'achat du Big Mac, produit universel s'il en est, "coûte", exprimé en équivalents de minutes de temps de travail, moins cher en Suisse que dans  la plupart des autres pays. Cette publication 
révèle qu'il en va de même pour d'autre produits.  155. Question  
Los párrafos 28 y 40 sobre el Plan de Compensación de Precios, se refieren a los reembolsos a la 
exportación, o mas claramente “subvenciones a la e xportación”, que se otorgan por la cuantía de las 
diferencias de precio de las materias primas utili zadas para producir productos agrícolas elaborados 
con fines de exportación, y en el caso de materi as primas que proceden principalmente de la 
importación, los reembolsos corresponden a los grav ámenes en frontera que se hayan satisfecho. 
¿Podría explicar Suiza como es esto congruente con su política de seguridad alimentaria interna, pues 
más bien parecería que esta política tiene como objetivo competir deslealmente en los mercados 
internacionales, distorsionando notablemente el me rcado mundial de productos lácteos, especialmente 
el queso, y quizá solo favorece de cierta manera la  seguridad alimentaria de los consumidores de los 
países a los que exporta con menores precios de  sus productos de exportación, inclusive de 
procesados? 
Réponse  
Switzerland's self-sufficiency of domestically pr oduced agricultural basic products only exceeds 
100 % in the milk sector. For all other raw mat erials used in agricultural processed products 
the degree of self-sufficiency lies well below 100 %.  Switzerland is the second largest per capita 
importer of agricultural products worldwide. 
As described under para 28, the Swiss price compensation scheme applies for imports and 
exports of processed agricultural products lis ted in the annex 1 to the ordinance No. SR 
632.111.722. The scheme allows for compensation of  the difference between domestic and world 
market prices for raw materials used in process ed agricultural products. Sugar, vegetable fats, WT/TPR/M/141/Add.1 
Page 66  
 
eggs and egg products are fully imported for th e processing of export products and, therefore, 
the border levies are reimbursed when the proce ssed product is exported. Derived from this 
method, the raw material in the exported proces sed product is at world market price level. 
 The price compensation scheme, ho wever, does not apply for export s of milk products, such as 
cheese.  
 2003 Switzerland imported some 31'900 tons and exported some 49'600 tons of cheese. No 
quantitative restrictions are applied for cheese im ports and the average border levies amounted 
to some Fr. 4.00 / kg gross weight. This policy al lows the Swiss consumer to take advantage of a 
large choice of products despite the high price le vel of domestic milk products. In addition, the 
bilateral agricultural agreement between Switzerl and and the EC allows free trade in cheese 
after the transition period ending 30 June 2007.  With regard to possible trade distortions resultin g from subsidized cheese exports, the following 
comparison may clarify the situation. The do mestic raw milk price for cheese production 
amounts to Fr. 55.50 / 100 kg. Roughly 12 kg of milk are used to produce 1 kg hard cheese, i.e. 
the milk price in 1 kg cheese comes to Fr. 6.70. All subsidies paid for exports of cheese amount to some Fr. 1.20 / kg cheese. The net raw milk pr ice per 1 kg cheese, therefore, reaches Fr. 5.50. 
Divided by 12, the raw milk price in exported cheese is Fr. 45.80 / 100 kg. Compared to the EC 
milk price of Fr. 47.00 or the US milk price of  Fr. 37.00 it can be deducted that no undermining 
or distortion of the world market derives from  Swiss cheese exports. On the contrary, Swiss 
cheeses all over the world are still the most ex pensive ones. The last sentence of para 40, 
therefore, is not correct.  156. Question  
De conformidad con el párrafo 121 SECO concede ayuda vinculada a las exportaciones con fines 
exclusivos como la infraestructura social, la pr otección del medio ambiente y para los proyectos que 
no son económicamente viables sin condiciones de fa vor. Seria tan gentil Suiza de informar como 
hacen que estas ayudas se otorguen de manera co nsistente con el Acuerdo sobre subvenciones y 
medidas compensatorias? Podrían informarnos como se aseguran que solo se den financiaciones para 
este tipo de exportaciones y no para otros bienes? 
 
Réponse  
Para 121 refers to tied aid, which Switzerland grants in the form of mixed financing for exports of certain goods and services from Switzerland to qualifying and selected developing countries. 
Tied aid is regulated by the Helsinki Package rules, which are part of the "Arrangement on 
Officially Supported Export Credit s"  of the OECD. These rules exclude e.g. the financing of 
commercially and financially viable projets with ti ed aid. All tied aid projects are notified to the 
OECD Secretariat.   The relationship of the Export Credit Arrang ement with the "Agreement on Subsidies and 
Countervailing Measures" (ASCM) is described in the latter's Annex 1, items j and k. As long 
as the export credits granted follow the rules of the Export Credit Arrangement, such 
provisions shall not be considered an export subsidy prohibited by the ASCM. 157. Question  
En los párrafos 129, 131, 132, 133 y 134 se indica la ayuda que el gobierno suizo a nivel federal o 
subfederal otorga ayuda a la producción. Podría Suiza explicar como esta ayuda es consistente con el 
Acuerdo sobre subvenciones y medidas compensatori as?  Como definen una zona en proceso de 
renovación económica? Existe algún programa que busque eliminar est a ayuda y hacerla consistente 
con sus compromisos internacionales en la OMC ?  WT/TPR/M/141/Add.1 
Page 67 
 
 
 Réponse  
L'arrêté fédéral en faveur des zones écono miques en redéploiement (RS 951.93) est un 
instrument de politique régionale compatible av ec l'accord de l'OMC sur les subventions et les 
mesures compensatoires.   
L'arrêté fédéral en faveur des zones économique s en redéploiement (RS 951.93) permet à la 
Confédération et aux cantons d'encourager la réa lisation de projets d'entreprises industrielles 
ou d'entreprises de services proche de la production industrielle.   La Confédération peut ainsi: 
• Garantir des crédits d'investissement sous forme de cautionnement jusqu'à concurrence 
 d'un tiers du coût total du projet pour une du rée maximale de 8 ans. Elle n'octroie pas 
 de prêts. Les pertes sur cautionnement représentent en moyenne environ 5 % du 
 montant total des cautionnements accordés. 
• Contribuer pendant maximum 5 ans au service de l'intérêt (50%, c'est-à-dire 25% 
 confédération – 25 % canton) des crédits d'investissement jusqu'à concurrence d'un  tiers du coût total, mais sur des crédits s'élevant à CHF 5 millions au maximum. Sur 
 cette base et en admettant un taux d'intérêt de 5% la ccontribution maximale des 
 pouvoirs publics (confédération + canton) par projet s'élève à CHF 625'000.-, soit  CHF 125'000.- par année.  
• Accorder des allègements fisca ux pour une durée maximale de 10 ans. Les modalités 
 d'application sont réglées par l'article 23 alin éa 3 de la loi fédérale sur l'harmonisation 
 fiscale des impôts directs des cantons et des communes qui prévoit la possibilité 
 d'accorder un allégement fiscal en faveur  d'entreprises nouvellement créées qui servent 
 l'intérêt économique des cantons. Cette disposition s'applique indifféremment aux 
 entreprises suisses et étrangères.  
• Depuis 2002, un nouvel instrument, les aid es financières interentreprises, offre la 
 possibilité de soutenir des institutions et des projets qui accroissent le potentiel de 
 développement d'entreprises et favorisent l'investissement et l'innovation. Le soutien de 
 la Confédération prend la forme d'une contribution forfaitaire de maximum CHF 
 300'000.- par projet et par année.  
Tous les instruments susmentionnés sont conditi onnés à une participation au moins équivalente 
de la part du canton.  Les zones économiques en redéploiement sont définies par: 
• un besoin particulier d'adaptation structurel le notamment par suite d'une évolution de 
 l'effectif de la population inférieure à celle  de l'ensemble du pays, d'un niveau de 
 revenus nettement plus bas que la moyenne  nationale et d'une part des activités 
 industrielles supérieure à la moyenne. 
• un chômage prononcé dépassant la moyenne nationale; 
• le nombre des emplois a évolué de manière nettement plus défavorable qu'en moyenne 
 nationale. Les zones dont le revenu dépasse nettement la  moyenne nationale oui qui, en raison d'une 
centralité élevée, disposent d'un potentiel de dé veloppement particulier ne sont pas réputées 
zones en redéploiement, même lorsqu'e lles remplissent les autres conditions. 
 
  (ii) Specific policy measures 
Costa Rica 
158. Question  
En los párrafos del 29-34, se indica que los contingentes arancelarios son atorgados por medio de un 
sistema de licencias de importación no automática.  Además, dentro de este sistema está el mecanismo WT/TPR/M/141/Add.1 
Page 68  
 
denominado “ prise en charge ”, y que se ha incrementado el uso del mecanismo “ first-come-first-
served ”. De esta manera, ¿Suiza podría brindar estadís ticas sobre el uso de cada mecanismo a partir 
del año 2000?  Por ejemplo, Costa Rica está interesada en conocer el porcentaje de uso de cada mecanismo, los productos abarcados por cada uno, el valor de las importaciones realizadas dentro de 
cada mecanismo, entre otros. 
Réponse  
Les produits, pour l’importation desquels une prise en charge  des produits suisses du même 
genre est obligatoire, sont: 
Animaux pour la boucherie;  viandes essentiellement produites sur la base de fourrages grossiers :  
Autres viandes (viande de bœuf, de veau, d’agneau, de chèvre et de cheval) 
Animaux pour la boucherie; viandes essentiellement produites sur la base de fourrages concentrées :  
Autres viandes : de porc 
Volaille : Autres viandes : de volaille, y compris volaille en conserve 
Lait et produits laitiers :  
- Poudre de lait entier 
- Beurre frais, non salé 
Pommes de terre de semenc e, de table et destinées à la transformation 
Légumes congelés 
Œufs et produits à base d’œufs (jusqu’à 2001) : 
- Œufs de consommation 
- Œufs de fabrication destin és à l’industrie alimentaire 
 
La prestation en faveur de la production suisse  est considérée également pour l’allocation de 
parts de contingent tarifaire (CT), si celle-ci se fait en fonction des parts de marché des ayants 
droit; on entend par part de marché de l’ayant droit, la proportion de la marchandise importée par ce dernier l’année précédente au taux du cont ingent (TC) et au taux hors contingent (THC) 
et de la prestation fournie l’année précédente en  faveur de la production suisse par rapport aux 
importations au TC et THC et aux prestations en  faveur de la production suisse de l’ensemble 
des ayants droit. Les CT (partiels) répartis en fonction des parts de marché des ayants droit ne figurent pas dans le tableau ci-dessus, puisque dans ce cas, la prise en charge n’est pas obligatoire pour permettre à un ayant droit d’obtenir des parts de CT.  
¾ Les CT répartis selon le principe du fur et à mesure  (first come, first served) (par 
l’autorité compétente, par exemple Office fédéral de l'agriculture, ou à la frontière)  sont les 
suivants:  
Animaux de l’espèce chevaline, vivants: 
- Chevaux d’élevage (autorité compétente) 
- Ânes, mulets et bardots (à la frontière) 
Animaux de l’espèce porcine, vivants  (autorité compétente) 
Animaux des espèces  
- ovine (autorité compétente) 
- caprine (autorité compétente) 
Semence de taureaux  (autorité compétente) 
Animaux pour la boucherie;  viande s essentiellement produites sur la base de fourrages grossiers : 
- Viande kascher d’animaux de l’es pèce bovine (autorité compétente) 
- Viande kascher d’animaux de l’espèce ovine (autorité compétente) 
- Viande halal d’animaux de l’es pèce bovine (autor ité compétente) 
- Viande halal d’animaux de l’es pèce ovine (autorité compétente) 
Lait et produits laitiers : 
- Divers produits laitiers (autorité compétente) 
- Beurre (autres matières grasse s du lait) (autorité compétente) 
Œufs et produits à base d’œufs (depuis 2002) : 
- Œufs de consommation (autorité compétente) 
- Œufs de fabrication destinés à l’indus trie alimentaire (a utorité compétente) 
Vin (rouge et blanc) (à la frontière) 
 WT/TPR/M/141/Add.1 
Page 69 
 
 
 Un aperçu du taux d’utilisation des CT (resp. CT partiels) ci-dessus se trouve dans le tiré à part 
du rapport sur les mesures tarifaires 2003 disponible  sur le site internet de l’office fédéral de 
l’agriculture suisse (http://www.blw.admin.ch/rubriken/00116/unterseite00053/ index.html?lang=fr).  
¾ Quant aux statistiques, se référer aux d ernières notifications MA:1 et MA:2 qui 
parviendront ou sont déjà parvenues au Secrétariat de l'OMC.  
 
USA 
Paragraph 18, page 98 of the Secretariat Report notes that market prices supports, output payments, 
and input payments accounted for 72% of support to  producers in 2002.  The report adds that these 
three methods “are the most distorting, because they have the greatest effects in stimulating 
production and often contribute to envi ronmental pressure; they are also the least effective in targeting 
income to farmers or in specific environmenta l benefits.”  However, the Secretariat Report 
commented in paragraph 9, page 93 that “ecol ogical production conditions were introduced as 
eligibility criteria for direct payments, and farmer s must now comply with "integrated farming" 
techniques, i.e. specified basic environmental standa rds (including on pesticide or fertilizer usage) and 
animal-friendly conditions.”  
159. Question  
Please explain the apparent contradiction of using non-environmentally friendl y subsidies to promote 
environmentally-friendly agriculture. 
 
Réponse  
"Agricultural Policies in OECD Countries: at a glance (2004)" mentions that the share of market price support, output and input paymen ts has fallen from 91% of PSE in 1986-88 to 
67% 2001-2003. This shows the process of moving to more decoupled measures in agriculture. 
 
Output and input payments are often but not al ways "non-environmentally friendly subsidies". 
They represent in the case of Switzerland less than 10% (9.23%) of PSE in 2001-2003. Market price support (calculated by OCDE) consists for Switzerland mainly of border protection. It has 
not been proved that border protection is "non -environmentally friendly". The rest of the 
support in Switzerland is decoupled from producti on. For more than 90% of Swiss support, it is 
therefore not correct to say that these are "non-e nvironmentally friendly subsidies".  There is 
also no contradiction of linking the direct p ayments to cross-compliance conditions and moving 
to decoupled measures. 
 
160. Question  
The Secretariat Report states in paragraph 19, page 98 that the last WTO notification made by 
Switzerland and Liechtenstein with respect to inte rnal support measures to agriculture covered the 
1997-98 period.   
 
Is a new notification forthcoming? 
 
Australia 
161. Question  
Switzerland’s latest domestic support notification is fo r 1998, so it is difficult to determine to what 
extent Switzerland has fulfilled the objective of “r educing production-related support” (page 13, para 
43).  
 In the interim, can Switzerland advise how much of the SwF 4.6 billion maximum it has spent each 
year since 1998?   
 WT/TPR/M/141/Add.1 
Page 70  
 
Réponse  
Yes. Notifications with respect to domestic s upport measures will be provided by Switzerland 
and Liechtenstein to the WTO Secretariat in th e next few weeks. They will cover the period 
from 1999 to 2001.  
162. Question  
The Secretariat Report notes in paragraph 149 on pa ge 80 that lack of competition in the Swiss 
economy is the significant factor in the high prices of many products and services for sale on Swiss markets.  The authorities identify “border measu res on certain products, such as agri-food goods” as 
one of three main causes for high prices (Table IV.4, pp. 95-96).   The Secretariat Report comments on paragraph 20, page 99 that Switzerland’s  highest tariffs protect agricultural goods. 
 
Given steadily falling agricultural production in Sw itzerland (Table IV.1, p. 91), has Switzerland 
considered reducing agricultural tariffs to lowe r domestic retail food prices and raise the living 
standards of its citizens?  
Réponse 
The subject of this question is under negociation in the DDA. Please refer to oral statements.  
163. Question  
Referring to paragraph 60, page 58 and paragraphs 30-34, on pages 101-104 of the Secretariat Report, 
the United States welcomes Switzerland’s reduction of its use of the “prise en charge”  system for 
allocating tariff quotas on certain agricultural goods .  However, Switzerland continues to use it to 
allocate tariff quotas for products such as poultry, da iry products, beef, pork, potatoes, and vegetables 
(fresh and frozen).  The “prise en charge”  system requires importers to purchase equivalent amounts 
in value of Swiss products to qualify for the quota.  Please explain why Switzerland does not consider the prise en charge  system to be a mixing 
requirement under Article III of the GATT. 
 
Réponse  
Functioning of the Prise en Charge (PC)  After the entry into force of the results of the Uruguay Round in Switzerland, the PC has been 
either abolished or, in certain cases, retained ( see MA:1 notifications). Where PC is retained, it 
is being handled in a manner which in no case
 constitutes, either de iure or de facto,  market 
access conditions more restrictive than those applied during the base period. The following 
principles are thus being applied, in conformity with the Agreement on Agriculture, in particular 
Art. 4 para 2 , and with the  Agreement on Import Licensing Procedures, Art. 3: 
a) No PC applies to imports at tariff ra tes outside access commitments (OQTR) 
b) No domestic purchase obligation is higher than during the base period. 
c) No product would be subject to a ratio fo r imports vs. domestic purchase which would 
 pre-empt the possibility of a full absorption by the domestic market  of the total import 
 quota for that product. E.g., if total consumption for one product is 1000 t and the 
 tariff rate quota 500 t, the obligation to purchase domestically must not exceed 1:1. 
d) No PC is being applied for products  where the volume of OQTR imports is 
 substantially higher than that of IQTR imports (because of the disincentive for IQTR  imports, thereby reducing de facto  the value of the IQTR commitment) 
e) In general, where PC is applied, IQTR impo rts are possible without the TQ rate limit 
 being applied. 
f) New entrants are eligible to import TRQ’s as a matter of general policy. 
 WT/TPR/M/141/Add.1 
Page 71 
 
 
 To summarise, the Swiss Prise en charge is a quota allocation system which: 
•  legally, constitutes an internal measure  with no infringement on WTO rights of other 
  Members nor on obligations of Switzerland under the various WTO Agreements which   may be applicable; 
•  economically, does not impose a trade restrict ion in excess of the limitations inherent 
  in any TRQ, and in no way pre-empts WTO-bound market access commitments, since 
  all quotas can be filled and origins are not affected.  
164. Question  
The Secretariat Report states in paragraph 40, pa ge 105 that for the period 1996-2000, Switzerland 
reported the second highest amount of export subsidi es in the world.  However, Switzerland has not 
notified the WTO of its agricultural export subsidies since 2000. 
 
Is a new notification forthcoming ? 
Réponse  
Yes. The notification of the agricultural expo rt subsidies by Switzerland for 2001, 2002 and 
2003 will be transmitted to the WTO Secretariat in the next few days. 
 
According to the last export subsidies notification s and those to be notified in the next few days, 
actual expenditures in 2003 were at 30% of the base period and 45% of the commitment level.  Australie 165. Question  
Under Annex B of the July Framework Package in  the Doha Round negotiations, Members agreed 
that one of the elements of the formula will be that all non- ad valorem  duties shall be converted to ad 
valorem  equivalents and bound in ad valorem  terms.   
 What are the implications for Switzerland a nd Liechtenstein of such a change to an ad valorem -based 
tariff for non-agricultural products ? 
 
Réponse  
In the framework of the Uruguay Round, Switzerl and has consolidated its industrial duties on 
both specific and ad valorem base. One importan t change on administrative level will be to 
consequently adapt the electronic procedures in the import regime.  
 The issue of a change from specific to ad valorem  duties is treated in the Doha round 
negotiations where possible impacts will have to be analyzed carefully. Much will depend on the 
approach on “nuisance duties” treatment and tariff reductions to be scheduled. 
 
166. Question  
What is the current proportion of non- ad valorem  duties to ad valorem  duties ? 
 
Réponse  
Switzerland applies specific duties only. 
167. Question  
The Secretariat report notes that all tariffs in agri culture are specific tariffs (WT/TPR/S/141, page 99, 
para 20). The report also notes the protection afforded  by specific tariffs varies with the changes in 
world prices for agriculture goods. This can mean that  specific tariffs have a counter-cyclical effect, 
raising protection at times when exporters are hard est hit by the fall in prices for their commodities. 
The fluctuating nature of the protective effect of sp ecific tariffs can also raise transparency problems 
for exporters. WT/TPR/M/141/Add.1 
Page 72  
 
How does Switzerland reconcile the dominance of its schedule by specific tariffs with its general commitment to openness, transparency and liberalisation?  
Réponse  
The generally low tariff rates show that Swit zerland has fulfilled its commitments resulting 
from the different liberalization steps from pa st rounds. The specific duties are well known to 
traders, importers and exporters and well accepted. The specific duties can be assessed easily 
and are transparent. Applied ta riffs are available electronically (www.tares.ch). Specific duties 
have generally a counter-cyclical effect. 
•  L'effet contre-cyclique est souhaité par l'agr iculture suisse pour stabiliser le prix de 
 revient à l'importation et partant les prix sur le marché indigène. 
•  On peut retourner l'argument utilisé contre l es droits spécifiques sur ceux ad valorem : 
 la fixation d'un taux ad valorem génère égalem ent des fluctuations mais cette fois-ci non 
 plus en terme relatif (%) mais en termes absolus (en fr./kg). Ce qui rend ce mode de 
 droit de douane moins prévisible et moins transparent. 
 For further considerations on this issue, they  are currently subject to negociations under the 
DDA.   
168. Question  
The Secretariat report notes that agricultural refo rms have been introduced in Switzerland under the 
‘Agricultural Policy 2007’ (page 94, paras 11 and 12).    
What sectors will continue to benefit from stat e intervention in the market place under the new 
policy?  Under the reforms, the auctioning of tariff-rate quotas  (TRQs) for meat is to be phased in from 2005.  
Could Switzerland explain how it considers that th e auctioning of tariff quotas is consistent with 
Article II of the GATT, given that it involves th e imposition of charges in addition to the in-quota 
tariff rates ?  
Réponse  
Anwer to part 1: 
There ist no state intervention any more on the level of price setting and there is no 
governement purchasing any more.   Some state intervention remains in the sectors of :  
• dairy (2003; 560 mio. CHF, mainly s upplement for milk processed into cheese, 
 contibutions for butter, skimmed milk and milk powder processing and export 
 contributions), 
• meat and eggs (2003; 25 mio. CHF, mainly for market organisation and public 
 stockholding), 
• arable crops (sugar beat, oilseeds and grain le gume, potatoes)  and fruits (2003; 154 mio. 
 CHF, mainly contribution for processing a nd utilisation, area payments, some export 
 contributions for potato products) More details can be found in the annual agricultural report under www.blw.admin.ch. 
 
Answer to part 2: 
Auctioning is one of several systems retained by  Switzerland for the implementation of market 
access commitments in the form of TRQs. It is an internal measure to allocate TRQ shares at 
bound in-quota rates. Auctioning is an alloca tion method which has a number of distinct 
advantages such as full transparency of the allocation process, equal opportunities for all 
players, be these new entrants or established bus inesses, suppliers from next door or across the WT/TPR/M/141/Add.1 
Page 73 
 
 
 world or having product available early or late  in the period under consideration. Equally, the 
system is efficient in ensuring quota fill. The a llocation process chosen is not related to import 
duties, and Article II GATT is therefore not applicable. 
 
169. Question  
The Secretariat report outlines the operation of Switzerland’s non-automatic licensing system for 
tariff quotas (page 101, para 30). The report notes that tariff quota shares are allocated on the basis of, inter alia , a prise en charge  system, traders' past imports, auctions, the first-come-first-served (FCFS) 
method, or pro-rata method.  Under the prise en charge system,  tariff quota allocations to importers 
are conditional on the purchase of si milar local products in a set proportion.  Under this system, 
imports may exceed tariff-quota quantities if importers undertake to purchase sufficient quantities of 
local goods.    Can Switzerland advise the products to which the local  content conditions are attached in regard to 
tariff quota allocation?  What would be considered a ‘sufficient’ quantity of domestic goods?  Does 
the proportion vary? 
 
Réponse  
 ¾ Les produits, pour l’importation desquels une  prise en charge des produits suisses du 
même genre est obligatoire, sont: 
Animaux pour la boucherie;  viandes essentiellement produites sur la base de fourrages grossiers : 
Autres viandes (viande de bœuf, de veau, d’agneau, de chèvre et de cheval) 
Animaux pour la boucherie; viandes essentiellement produites sur la base de fourrages concentrées : 
Autres viandes : de porc 
Volaille : Autres viandes : de volaille, y compris volaille en conserve 
Lait et produits laitiers : 
- Poudre de lait entire 
- Beurre frais, non sale 
Pommes de terre de semenc e, de table et destinées à la transformation 
Légumes congelés 
Œufs et produits à base d’œufs (jusqu’à 2001) : 
- Œufs de consummation 
- Œufs de fabrication destin és à l’industrie alimentaire 
 
¾ La prestation en faveur de la production suisse est considérée également pour 
l’allocation de parts de CT, si celle-ci se fait en  fonction des parts de marché des ayants droit; on 
entend par part de marché de l’ayant droit, la  proportion de la marchandise importée par ce 
dernier l’année précédente au TC et au THC et  de la prestation fourni e l’année précédente en 
faveur de la production suisse par rapport aux im portations au taux du contingent (TC) et au 
taux hors contingent (THC) et aux prestations en faveur de la production suisse de l’ensemble 
des ayants droit. Les CT (partiels) répartis en fonction des parts de marché des ayants droit ne figurent pas dans le tableau ci-dessus, puis que dans ce cas, la prise en charge n’est pas 
obligatoire pour permettre à un ayant droit d’obtenir des parts de CT. 
¾ Il n’existe pas de prescription sur la qua ntité de produits suisses devant être prise 
charge pour se voir attribuer une part de CT. L’allo cation de CT en fonction de la prestation en 
faveur de la production suisse se fait des trois méthodes suivantes :  1. Clef de prise en charge 
Une clef définit la proportion entre le nombre d’unités du produit suisse devant être pris en 
charge pour pouvoir importer une unité d’un produit identique.  WT/TPR/M/141/Add.1 
Page 74  
 
Exemple : poudre de lait entier . Les parts du CT sont attribuées en proportion de la marchandise 
suisse prise en charge. La prise en charge peut être ordonnée à raison d’une proportion maximale de quatre parts de marchandise suis se pour une part de produits importés. 
 2. 100 % prise en charge (basée sur une période historique) 
Exemple: Pommes de terre . Les parts de CT de plants, de pommes de terre de table et de 
pommes de terre destinées à la transformation so nt attribuées sur la base d’une prestation en 
faveur de la production suisse. La part du CT d’ un ayant droit est calculé en fonction de la part 
de sa prise en charge durant la période de référen ce à l’ensemble de la prise en charge de tous 
les ayants droits durant cette même période de référence. 
 
3. Prise en charge en combination avec d’autres critères d’allocation  
Exemple : légumes congelés . 65% des parts du CT sont attribuées en fonction des prestations en 
faveur de la production suisse de légumes frai s destinés à la transformation durant les trois 
années précédentes (quantités prouvées par un justificatif ou par un mandat de 
transformation), 35 % en fonction des importations  effectuées au taux du contingent et au taux 
hors contingent au cours des trois années pré cédentes. La part du CT d’un ayant droit est 
calculé en fonction de la part de sa prise en charge à l’ensemble de la prise en charge de tous les ayants droits, de même pour les importations  effectuées les trois années précédentes.  
 
170. Question  
Does Switzerland maintain a special import regime , including quotas for bread flour for the flour-
milling industry following the removal of the exclusive rights to import such product?  
 
Réponse  
According to para 22 of document WT/TPR/S /141 the state monopoly for bread flour was 
abolished since 1st July 2001 . This product may be imported at MFN tariff.  
171. Question  
The Secretariat report notes that the system of "indicative" or "threshold" prices ( prix-seuils ) remains 
in place (page 100, para 26).   Does Switzerland regard the prix seuils system as  a variable import levy, price band or minimum 
import pricing system?  Can Switzerland advise what products it applies to both in legislation and in 
practice?  How much trade takes place under the arrangement?  
Réponse  
The threshhold price equals to the target import price level consisting of the product's value cif 
Swiss border, the levy and fees of similar effects. The MFN-duties are adapted usually on a 
regular 3-months-basis according to the developmen t of the product prices at the Swiss border.  
The threshhold price system is applied for all tariff lines listed in the annex to the Federal 
ordinance on imports of agricultural products (SR 916.01). Some 300 tariff lines cover products for animal feeding purposes and some 200 tari ff lines cover double use products (for human 
consumption or technical purposes and animal feed ing). For the latter products only the part 
used for animal feeding purposes underlies the threshhold price system.  
The following quantities were imported within the coverage of the threshhold price system: 
Year  Quantity / t 2000 512'700 2001 566’000 
2002 709’000 
2003 819’000  WT/TPR/M/141/Add.1 
Page 75 
 
 
 Thailande 
172. Question  
Document WT/TPR/S/141 page 105 paragraph 41 stat es that Switzerland has not reported information 
on its export subsidies to the WTO for any period after 2000. Could Switzerland confirm that since 
2000 it has not provided any export subsidies to agriculture ? 
 
Réponse  
The notification of the agricultural export subs idies by Switzerland for 2001, 2002 and 2003 will 
be transmitted to the WTO Secretariat in the next few days. 
  (3) M
ANUFACTURING AND ENERGY  
  (i) Manufacturing  
Costa Rica 
173. Question  
Párrafo 54, sección (i.d): ¿Qué cambios en el me rcado de productos farmacéuticos se dieron como 
consecuencia de la implementación de la nueva ley que lo regula? 
 
Réponse La nouvelle législation sur les produits thérapeut iques a permis de centraliser les responsabilités 
relatives à la mise sur le marché des produits pharmaceutiques; désormais, la mise sur le 
marché des produits pharmaceutiques ne relève plus  de la compétence des cantons, mais de la 
Confédération.   De manière générale, cette nouvelle législation n'a pas d'impact particulier sur le marché. On 
peut toutefois citer le cas de l'article 14 alinéa 2 qui permet l'importation parallèle des produits 
pharmaceutiques qui ne sont plus protégés par un brevet.    
  (ii) Energy  
USA  
174. Question  
The Secretariat Report related in paragraph 76, pa ge 114, that Switzerland must allow any consumer 
or producer access to the nation’s electricity transmission networks.  Switzerland is in the process of consolidating transmission operations in one ope rator, Swissgrid, which we understand will start 
operations on January 1, 2005.  
A)  When will Swissgrid begin granting power transmission licenses? 
B)  Has Swissgrid developed the rules that will govern allocation of power transmission licenses?  If 
so, will those rules be made available to the public? C)  Will foreign companies be able to obta in power transmission licenses in Switzerland ? 
 
Réponse  
Swissgrid will start operation in the beginning of 2005. Timing and design for the 
implementation of the allocation mechanism is still in the planning stage. Further information 
may be obtained directly from ETRANS. Taipeh Chine 175. Question  
The CO
2 tax is the main instrument for reaching Switzerland’s Kyoto target. What impact does 
Switzerland expect this tax to have on the domestic economy and on international trade ? 
 WT/TPR/M/141/Add.1 
Page 76  
 
Réponse 
We expect a small positive impact on GDP a nd on employment. Welfare losses are most likely 
expected for energy and traffic sectors (particula rly petroleum branch, slump in sales). Welfare 
gains have to be expected for service,  technology and building sectors.   
Due to the possibility of tax exemptions (big emit ters, groups of companies, and energy intensive 
industries) no competitive disadvantage is expected. 
 
 (4) C
ONSTRUCTION  
 
Brésil  
176. Question  
Regarding the Construction sector, on page 115, Switzerland states that “certain exemptions have 
been scheduled, as well as qualification requirements reflecting access restrictions to the Swiss market. Though the exemptions are mentioned, there is no reference to any qualification requirement. 
Could Switzerland specify what kind of requirement must be fulfilled? 
 
Réponse 
Les exceptions se rapportent à certains travaux de  construction d'ouvrages de génie civil (ex 
CPC 513), les travaux d'entreprises de constructi on spécialisées (CPC 515) et des services de 
location de matériel de construction (CPC 518) .  Dans le domaine des travaux de construction 
générale (Bauhauptgewerbe),  les activités sans  engagement de la part de la Suisse concernent 
l'assemblage et la construction d'ouvrages p réfabriqués. Lors de travaux d'entreprises de 
construction spécialisées (Baunebengewerbe), il faut mentionner les travaux liés à la pose 
d'installations d'énergie, de chauffage, de distri bution d'eau, de moyens de communication et 
d'ascenseurs, selon les indications au § 81 du rapport du secrétariat consacré à l’analyse par 
secteur.   
 Pour répondre à la question du Brésil, nous pouv ons affirmer que le lancement d’une entreprise 
de construction générale n’est pas soumise à autorisation ou à d’autres exigences spécifiques 
("requirements" tels que solvabilit é, honorabilité, forme juridique, etc.). Il est pourtant exact 
que la présence d’un collaborateur avec un certain ni veau de formation est requis pour pouvoir 
exploiter une entreprise d’installation électrique . Pour des travaux sur le réseau de distribution 
d’eau et sur le réseau de téléphonie fixe, une « con cession » de la société qui construit et exploite 
le réseau est souvent nécessaire. L’octroi de ces « concessions » est motivé par des 
considérations de sécurité et ne doit pas interfér er avec la liberté économique. Le respect de ces 
deux critères par les règlements des entreprises d’infrastructures (normalement cantonaux et 
communaux) peut faire l’objet d’une examen de vant un tribunal (Tribunal fédéral en dernière 
instance). La loi sur le marché intérieur – actuellement en révision – cherche à atténuer les entraves aux échanges à l’intérieur de la Suisse qui peuvent surgir du fait de l’hétérogénéité des dispositions cantonales et communales applicables.  
 
Costa Rica 
177. Question  
Párrafo 82 ¿Qué tipo de medidas “correctivas” se han implementado en el sector de la construcción? 
 
Réponse  
Paragraphe 82 indicates four factors, which we re inhibiting competition in the construction 
sector: Standards and technical regulations, reg ulation of professional services, restrictive 
arrangements and limitations regarding the empl oyment of foreign workers. In all four areas 
corrective measures have been or are about to be implemented.  WT/TPR/M/141/Add.1 
Page 77 
 
 
 Two years ago, the Comco has found four construc tion companies in collusion on prices when 
tendering for renovation of the National Library.  To impose sanctions based on cartel law was 
not possible as under the old legislation sanc tions could only imposed when a behavior 
established to be anti-competitive was resumed. U nder the new cartel legislation, action against 
collusion will be more effective, as sanctions can be imposed on detection. Not to comply with 
legislation (e.g. cartel legislation) may also  become a reason to exclude companies from 
tendering for public contracts.   Construction products constitute one of the fe w product groups that have yet to be included 
under the bilateral MRA with the EU.  The reas on is that the progress in putting the EU-
directive in effect was slow within in the EU so that for a long time the reference framework was 
missing. Since 2000 however, a federal law on construction products and an intercantonal 
agreement in this area came into force and the inclusion of construction products in the MRA 
with the EU is planned.   
The 1995 Federal Law on the Internal Market (Cha pter III (4) (c)) was expected to establish a 
unified construction market in Switzerland, by eliminating barriers such as local residence and 
establishment requirements, and membership ob ligations in local trade associations. A 
recommendation regarding membership obligations in  several cantons was issued by the cartel 
commission. Under the revised internal market la w – the proposal was submitted to Parliament 
by the end of November 2004 – the cartel commission will not only have the possibility to issue 
recommendations but can intervene in court if ca ntons do not give suit to recommendations in 
specific cases.   With the adoption of the agreement on the free movement of persons, the conditions for 
employing persons outside the canton to which they were admitted as foreign workers have 
fundamentally changed. People falling under th e agreement on the free movement of persons 
with the EU hold similar rights as Swiss citi zens and residents do. Geographically, they are free 
to choose their workplace, within the company or by changing the employer. 
 Hong Kong, China 178. Question  
It is noted that the 1995 Federa l Law on the Internal Market di d not succeed in creating the free 
movement of labour and services across cantons, a nd high entry barriers (e.g. local residence and 
establishment requirements, and membership obligations  in local trade associations) continue to limit 
competition in regulated professions of the construction industry.  The GATS commitments of Switzerland, on the other hand, do not seem to indi cate such limitations.  Would Switzerland share 
with Members its latest regulatory regime in this sector ? 
 
Réponse 
Under the National treatment column Switzerland ha s the following horizontal limitations in its 
schedule regarding mode 4: "Unbound, exept for measures concerning the categories of natural 
persons referred to in the ma rket access column, subject to the following limitations and 
conditions: ... measures limiting professional and geographical mobility within Switzerland." 
The review of this restriction is currently under consideration. 
 
Mexique 
179. Question  
En el párrafo 81 se mencionan los compromisos de acceso a los mercados y trato nacional que Suiza 
ha consolidado en el marco de l AGCS. Sin embargo hay excepciones en ciertas actividades que 
requieren permisos o autorización  de los cantones o cuerpos locales relativos a los servicios de 
ingeniería civil, tales como los indicados respect o de los CPC 512, 513, 514-516 y 517. Al respecto, WT/TPR/M/141/Add.1 
Page 78  
 
¿podría Suiza indicar si tiene pensado iniciar el proceso de liberalización en estas actividades a corto 
plazo o si mantendrá las restricciones respecto de esa profesión como hasta ahora?  
Réponse 
Les négociations du Doha Round détermineront la manière de progresser dans ce domaine. 
 
Brésil  
180. Question  
On paragraph 206 (on page 143), it is stated that “t he establishment of all branches or subsidiaries or 
agencies of foreign banks in Switzerland requir es a license by the SFBC”. Brazil would like to know 
which objective criteria are required to obtain such a licence. 
 
Réponse 
a) Answer about subsidiaries of foreign banks in Switzerland
 
In Switzerland, a banking license is to be gr anted if the applicant entirely meets all the 
requirements laid out in Art. 3 and 3bis Banki ng Act (BA). The bank then has to constantly 
comply with those initial requirements througho ut its active existence which is regularly 
examined by the bank’s audit firm. In case of non-compliance the Swiss Federal Banking 
Comission (SFBC) will ultimately withdraw the license. The formal denial of a license application or the withdrawal of a granted license  are subject to an appeal to the Swiss Federal 
Court. A Swiss banking license is considered a “ universal” license meaning that it is not issued 
for a specialized field such as commercial, in vestment, private banking etc. However, the 
examination of the requirements (especially the initial capital) in the application process 
depends on the projected activity.  The Swiss licensing requirements consist of vario us elements qualitatively and quantitatively 
similar to those of other financial centers. 
 As a first requirement the bank to be licensed has to provide an organization able to meet the demands of the projected business. In this regard its by-laws and internal regulations have to clearly define the type and geographical limits of the planned banking activity and accordingly the internal organization for that activity. Furthermore, the bank’s responsibilities and the 
internal control procedures have to be suffi ciently described. The SFBC not only formally 
approves the by-laws and major internal regulations  on the occasion of the establishment of the 
bank but also their subsequent changes and am endments. Within the organization of the new 
bank there must be a separation between the su pervisory and policy making functions of the 
board of directors and the executive function of the management, the same person may not 
serve on both bodies, thus eliminating or undermining the position of a managing director. 
 Secondly, the new bank must have a paid-in capi tal of at least CHF 10 million. In cases where 
according to the business plan the projected ac tivity requires more funds – which is normally 
the case – the initial capital can go further up.  
Thirdly, directors and managers of the bank must  be competent and fit for the specific business 
of the new bank, i.e., their personal integrity an d professional skill as well as their experience 
must meet the demands of their new task. All license applications must include the curricula 
vitae of key personnel, extracts of the general registry of criminal records (where available), and 
references for all directors and senior manageme nt. Managers of a Swiss incorporated bank do 
not have to be Swiss residents. However, they mu st be able to exercise de facto the management 
responsibility from Switzerland.  Forthly, qualified shareholders (directly or indire ctly owning or controlling 10% or more of the 
share capital or the voting rights of a bank and persons who are in a position to substantially 
influence a bank in any other manner) are subject to the same “fit and proper” requirements as WT/TPR/M/141/Add.1 
Page 79 
 
 
 directors and managers. The qualified sharehold ers and the banks have a legal duty to report 
the relevant shareholdings and their changes to the SFBC. The SFBC is entitled to enforce the 
“fit and proper” requirement by suspending the voting rights of non-complying shareholders up to revoking the banking license in severe cases. Apart from this qualitative requirement the 
banking legislation applies no quantitat ive limitation on ownership in banks. 
 
Additional requirements for a foreign controlled new bank are stated in Art. 3bis BA. A bank 
qualifies as foreign controlled if one or more fore ign nationals own a direct or indirect interest 
exceeding 50% of the share capital or the voting rights of the bank, or if they exercise a controlling interest in another manne r. The requirements basically only consist of the proof that 
the company name does not imply a Swiss ownership of the bank and an adequate supervision 
of the parent company. In the case of a foreign  bank or financial institution establishing the 
banking entity in Switzerland the SFBC thus obtains a “non objection”-declaration of the home-country supervisor and - if a financial co nglomerate or banking group owns the foreign 
bank - a declaration of the home-country author ity that supervises the conglomerate/group on a 
consolidated basis. The reciprocity requirement, whic h is also mentioned in the law, has lost its 
importance due to Switzerland’s adherence to GATS, which requires Switzerland to apply the 
most-favoured-nation-rule to all WTO-members.  To accommodate the practical needs of the ba nking license applicants the SFBC has published a 
guideline for license applications (http://www.eb k.admin.ch). The guideline contains various 
information and a list regarding the mandatory  documentation including, among other things, 
draft instrument of incorporation, draft of by-l aws and internal regulations, specific additional 
information regarding the organization (chart, pr ocedures, internal controls, outsourcing, IT-
structure etc.), business plan (with projections for first three financial years), specific information and documentation regarding owners  (i.e. qualified shareholders) and source of 
initial capital, specific informatio n regarding directors and managers. 
 Once the Secretariat has received the application along with the necessary documentation from 
the applicant, it will prior to bringing a prop osal for approval before the Commission carry out 
a thorough examination of the licensing requirements. The Secretariat thus provides a certain filtering function. In other words, no incomple te or insufficient license application will be 
brought before the Commission. From the applic ant’s perspective the Secretariat has also a 
service function in that it accompanies the applic ant already at an early stage in the application 
procedure and is regularly willing to examine and discuss preliminary banking projects and 
draft applications. On the basis of this pro cedure an applicant receives already early in the 
process indications as to the feas ibility of his banking project. An applicant is nevertheless free 
to request a formal decision from the SFBC if th e indications from the Secretariat regarding his 
application are predominantly negative. Howev er, in the last 5 years no applicant has 
demanded such a formal decision.  b) Answer about branches of foreign banks in Switzerland
 
Foreign banks and non-banks that wish to opera te a banking branch in Switzerland require a 
license from the SFBC. Branch banking is de fined as (i) conducting banking business, 
maintaining customer accounts or generally ente ring into transactions legally binding upon a 
foreign domiciled bank, (ii) provided that th ese activities are carried out commercially by 
permanent staff in Switzerland. A foreign bank is  defined as every institution (a) organized 
under foreign law, which (b) possesses a banking license in a foreign country, or (c) uses the 
name „Bank“, „Banker“ or similar name or (d ) performs activities falling under the scope of 
the Banking Act. The Foreign Bank Ordinance (FBO) imposes the following requirements for 
the establishment of a branch by a foreign controlled bank: a) the foreign bank has to be appropriately organized and employ qualified staff and have 
 sufficient financial resources to operate a branch in Switzerland; WT/TPR/M/141/Add.1 
Page 80  
 
b) the foreign bank must be subject to adequate  supervision, which includes the branch in 
 Switzerland; c) the responsible foreign supervisory authorit ies must not object against the establishment 
 of the branch; d) the foreign regulator must confirm that th ey would immediately inform the SFBC if 
 there are concerns that the (financial) int erests of the foreign bank's creditors could be 
 seriously jeopardized; e) the foreign regulator must be able to sha re information and cooperate with the SFBC; 
f) the home-country of the foreign institution should give reciprocal treatment to Swiss 
 banks (This criterion is not examined if the home-country is a WTO member); 
g) the management of the branch must be fit and proper and the branch adequately 
 organized; h) the branch must meet the criteria to register as a branch in the Swiss Commercial 
 (Companies) Register. 
 
If the foreign bank is part of a financial cong lomerate or banking group the SFBC may require 
that the home-country regulator supervises the entire conglomerate  or group on a consolidated 
basis. Unlike affiliates, branches of foreign ba nks are exempted from complying with capital 
and large exposure rules. However the SFBC m ay require compliance with these rules if the 
home-country of the foreign bank does not grant similar relief and if no international agreement exists. The branch may establish it s annual and interim financial statements 
according the home-country’s requirements , provided that these requirements satisfy 
international accounting standard s. The accounts may be published in English notwithstanding 
the fact that English is not an official language in Switzerland. Closing of a branch requires authorization by the SFBC.  
c) Answer about agencies of foreign banks’ subsidiaries or branches
 
The SFBC will grant the Swiss subsidiary or branch of a foreign bank a license to open an agency, if: a) the home-country of the foreign institution should give reciprocal treatment to Swiss 
 banks (this criterion is not examined if the home-country is a WTO member); b) The name of the foreign bank’s Swiss subsidiary  or branch and of the agency  shall in 
 no way indicate or suggest that the bank is Swiss controlled; and 
c) The agency possesses a regulation that precisely defines its business activities and 
 provides for an adequate orgnaisation.  d) Answer about reprensentative offices of foreign banks in Switzerland
 
All activities of a foreign branch which do not qualify to be branch activities but are carried out 
commercially by permanent staff employed in Swit zerland are considered to be activities of a 
representative office. In particular, such activiti es include forwarding of customer orders to the 
foreign bank and undertaking marketing and public relations activities. The operation of a representative office requires authorization by the SFBC. The SFBC authorizes a foreign bank 
to open a representative office, if 
a) the bank is subject to adequate supervision; 
b) the foreign supervisory authorities raise no objection against the establishment of the 
 representative office; c) the home-country of the foreign bank grants reciprocal treatment to Swiss banks (This 
 criterion is not examined if the home-country is a WTO member), and 
d) the persons charged with the management of the representative office are fit and 
 proper. 
 
Representative offices are subject to only fe w regulatory requirements. In substance, 
representative offices only have to send their annual report describing their activities to the WT/TPR/M/141/Add.1 
Page 81 
 
 
 SFBC within four month after year-end. The fo reign bank has to report the closing of its 
representative office in Switzerland to the SFBC. 
 
 (5) T ELECOMMUNICATIONS  
 
Canada  
§90 
181. Question  
The Secretariat Report notes that the Swiss Conf ederation remains the majority shareholder of 
Swisscom, with 62.7 % of the capital since April 2002.  As noted in the Secretariat Report, conflict 
can thus arise between the competition objectives contained in the Swiss legislation and their 
enforcement where they may be perceived as detr imental to the incumbent.  Furthermore, the 
privileges associated with public ownership can have anti-competitive effects. Does Switzerland 
foresee any major reduction in its shareholding of Swisscom ?  Réponse   
As stated in Art. 6 of the Law regarding the or ganization of the telecommunications Operator of 
the Swiss Confederation (SR 748.11), the Swiss Conf ederation is legally obliged to control the 
majority of shares of Swisscom. Legal change s of this situation are not foreseen. However, 
Swisscom is currently buying back shares of its shareholders. This will result in reducing the 
shareholder involvement of the Swiss Confederation at the next Annual General Meeting on 
April 26
th 2005, reducing the current ownership of 62.7% of shares to a lower level, but still 
above 50%. (see: http://www.swisscom.co m/GHQ/content/Investor_Relations/ 
Aktionaersinformationen/Besitzstruktur/Besitzstruktur.htm?lang=en). 
 
182. Question  
§91-92 and 108-109 
Canada notes that, despite the new competitive legisl ative environment, including an obligation to 
unbundle the local loop, Swisscom still has a de facto  monopoly and, as noted in the Secretariat 
Report, it has raised concerns regarding the sustai nability of competition in the Swiss market. Canada 
also notes that the Federal Communications Co mmission (ComCom) announced in February, 2004, 
that it considered the Telecommunications Law ( LTC) to constitute a sufficient legal basis to 
unbundle the local loop. 
 Could Switzerland please address its plans in relation to local loop ? Has ComCom determined whether Swisscom enjoys a dominant position ?  183. Question  
§96 
Canada is pleased to note that, under the revised Act on Cartels, the Competition Commission is now 
empowered to impose direct sanctions for first- time infringements and that under other competition 
regimes, an undertaking that has a dominant positi on and abuses its market power may now be fined 
directly.  Could Switzerland please explain the process and conditions under which a dominant 
supplier may be fined because of anti-competitive pr actice under the revised Act on Cartels or other 
competition regimes ?  
184. Question  
§106 The Secretariat Report notes that, although th ere is no legal monopoly, Swisscom holds a de facto  
monopoly in some parts of the leased line market and that this has obvious negative consequences on Swisscom’s competitors who are, in practice, forced to rely on these lines especially in the last mile. 
 WT/TPR/M/141/Add.1 
Page 82  
 
Does Switzerland foresee any improvement to competition in its leased line market ? 
Could Switzerland provide an update regarding the leased line question that is being debated in 
Parliament ?  
Réponse aux trois questions posées par le Canada  
By the date of 1 december 2003, an amendment of  the decree of the Federal Council regarding 
Telecommunications Services (SR 784.101.1)  has entered into force, which provides 
telecommunications operators the legal right, to  demand access to unbundled local loops (full 
access, shared line acces and bitstream access) fr om dominant operators on the basis of cost 
oriented prices. If such a demand is not fulf illed, the telecommunications operators can ask the 
Federal Communications Commission (ComCom) for a legally binding decision (see also the 
answer to the question raised by Korea in this section). The appealing body with regard to such 
a decision is the Federal Court. There is curren tly a case for granting cost oriented access to 
local loops pending in ComCom. The question of dominance with respect to local loop 
unbundling is being treated within this case. 
 
On November 30
th 2004, the Federal Court has partially rejected the complaints for access to 
unbundled local loops (i.e. full access and shared line access) on the ground of an insufficient 
legal basis of the amended decree of the Federal Council.     In parallel, the Federal Council has included the access to unbundled local loops in its proposal 
of an amended telecommunications act. The amendment of the telecommunications act is 
currently treated by the Swiss parliament. Depending on the ruling of the Swiss parliament, access to unbundled local loops will be granted on the basis of the amended telecommunications 
act. 
 
Costa Rica 185. Question  
Además de los sectores postales, de telecomunicaciones y ferrocarriles, ¿en qué otros sectores se están 
llevando a cabo procesos de privatización ?  
Réponse  
The only sector where privatisation has recently take n place is in the highly regulated sector of 
air traffic control.   Hong Kong, China 186. Question  
Switzerland and Liechtenstein’s liberalization effort s in opening their telecommunications and postal 
markets on an MFN basis are commendable.  We however note that in the telecom sector, a number of important shortcomings persist in the area of competition safeguards which may not fit in with the 
spirit of Switzerland's WTO commitments.  The lack  of enforcement power to prevent the dominant 
supplier, Swisscom, from engaging in any anti-competitiv e practice in “any” relevant market is one of 
such problems.  Despite the step taken by the aut horities to revise relevant competition laws to impose 
direct sanctions, the crux of the problem seems to be the state-ownership of the dominant supplier.  To 
tally with its very liberal telecommunication commitments, does Switzerland have in mind any concrete plan to improve the situation ?  
Réponse  
As stated in Art. 6 of the Law regarding the or ganization of the telecommunications Operator of 
the Swiss Confederation (SR 748.11), the Swiss Conf ederation is legally obliged to control the 
majority of shares of Swisscom. Legal change s of this situation are not foreseen. However, 
Swisscom is currently buying back shares of its shareholders. This will result in reducing the 
shareholder involvement of the Swiss Confederation at the next Annual General Meeting on WT/TPR/M/141/Add.1 
Page 83 
 
 
 April 26th 2005, reducing the current ownership of 62.7% of shares to a lower level, but still 
above 50%. (see: http://www.swisscom.co m/GHQ/content/Investor_Relations/ 
Aktionaersinformationen/Besitzstruktur/Besitzstruktur.htm?lang=en)    Regarding legal amendments of the framework of telecommunications regulation, see answers 
to questions raised by Canada under this section.   
 
Corée 
187. Question  
§90 According to the Secretariat’s report, the Swis s Confederation remains by law the majority 
shareholder of Swisscom, with 62.7% of its capital si nce April 2002. It is  reported that such public 
ownership can have anti-competitive effects.  
 
Could Switzerland please inform us of its plans, if any, to promote market competition in that area? 
 Réponse   
For the answer, please refer to the response given to the question raised by Hong Kong China in 
this section. 
 
188. Question  
§96 
The Secretariat reports that under the revised Ac t on Cartels, the Competition Commission is now 
empowered to impose direct sanctions for first-time infringements.  
Is it also applicable to the telecommunication market? 
Could Switzerland explain how direct sanc tions are applied in a given market? 
 
Réponse   
With regards to the first part of the question, please refer to the response given to the questions 
raised by Canada under th is section. Furthermore, 
• Le régime de sanctions directes se limite aux comportements les plus dommageables 
 pour l'économie, à savoir des accords horizo ntaux portant sur les prix, les quantités ou 
 la répartition géographique, des accords v erticaux ainsi que des abus de position 
 dominante, cela indépendamment du march é sur lequel le comportement dommageable 
 se produit. Les sanctions directes s'app liquent donc aussi au secteur de la 
 télécommunication. 
• La sanction est calculée en fonction de la du rée et de la gravité de la pratique illicite en 
 question. Le montant maximal de la sanction  ne peut en aucun cas être supérieur à 10% 
 du chiffre d'affaire réalisé en Suisse par l'entreprise au cours des trois derniers 
 exercices.   La compétence de prononcer les sanctions directes incombe à la Commission de la concurrence. 
Ces décisions, rendues sur proposition de son se crétariat (organe d'instruction), peuvent faire 
l'objet d'un recours auprès de la Commission de recours pour les questions de concurrence, qui 
est une instance judiciaire. 
 
189. Question  
§102 
According to the Secretariat, market dominan ce is examined by the Competition Commission on a 
case-by-case basis as part of its interconnection procedures.  
 WT/TPR/M/141/Add.1 
Page 84  
 
Could Switzerland explain in more detail how market dominance is examined? What kind of criteria 
or indexes are used for the examination ?  
Is the examination of market dominance a pplied only to interconnection procedures ? 
 
Réponse  
Selon l'art. 4 al. 2 LCart, on entend par entrepri se dominante sur le marché, une ou plusieurs 
entreprises qui sont à même, en matière d'offre ou de demande, de se comporter de manière 
essentiellement indépendante par rapport aux autres participants au marché (concurrents, 
fournisseurs ou acheteurs). L'existence d'une po sition dominante résulte de la combinaison de 
plusieurs facteurs qui, considérés séparément,  pourraient ne pas être nécessairement 
concluants, mais qui associés à d'autres, entraî nent cette position. Peuvent notamment entrer 
dans l'analyse de la domina nce les facteurs suivants: 
•  analyse de la structure du marché (part de  marché de l'entreprise, présence et puissance 
 de concurrents, contre-pouvoir des partenai res commerciaux, l'état de croissance ou de 
 stagnation du marché, le niveau de la concurrence potentielle, etc. 
•  facteurs liés à la structure de l'entreprise 
•  la dépendance économique d'une entreprise par rapport à une autre 
•  les critères de comportement et d'efficacité 
•  les barrières à l'accès. 
 L'abus d'une position dominante est illicite sel on le droit suisse et cela indépendamment du 
marché considéré. 
 
190. Question  
§113 The Secretariat reports that the Liechtenstein Government has limited the maximum number of 
mobile telephone service suppliers to four , but three companies are in operation. 
 
Why are there only three companies in operation?   
 
Taipeh Chine  191. Question  
Switzerland mentions that other fixed line oper ators could only resell existing products. Do 
Switzerland’s regulations mandate that dominant fixe d line operators provide their services to other 
operators at a wholesale rate?  If “yes”, do relate d regulations specify pricing principles for the 
wholesale rate?  
Réponse  
With regard to the first part of the question, pl ease refer to the response given to the questions 
raised by Canada under th is section. Furthermore, 
 The pricing principle applied to wholesale acces s to unbundled local loop and leased lines is the 
principle of long run incremental costs (LRIC) as defined in art. 45 of the decree of the Federal 
Council regarding Telecommunications Services ( SR 784.101.1).     
 
 (6) P
OSTAL SERVICES  
 (7) O VERLAND TRANSPORT  
 WT/TPR/M/141/Add.1 
Page 85 
 
 
 Canada 
192. Question  
§122 
The second sentence of paragraph 5 reads, "It also es tablished access to the Swiss rail network for all 
companies, against payment ." Please explain what this means. 
 
Réponse  
Conformément à l’article 28, chiffre 1 de l’acco rd sur les transports terrestres entre la Suisse et 
la Communauté européenne et à l’article 9 b, chiffre 1 de la Loi fédérale sur les chemins de fer 
(RS 742.101), l’entreprise bénéficiant de l’a ccès au réseau doit payer au gestionnaire de 
l’infrastructure ferroviaire une redevance pour l’utilisation des lignes de ce dernier.  Cette redevance s’applique de manière non discri minatoire aux entreprises suisses et étrangères 
et constitue le prix à payer en contrepartie des services fournis par le gestionnaire de 
l’infrastructure. Elle est composée d’un prix de  base, qui doit couvrir au moins les coûts 
marginaux standards (notamment consommation d’énergie, entretien lié aux prestations, parts 
du personnel affecté à la circulation des trains), ainsi que d’une contribution de couverture pour certains types de trafic.  
Les modalités de l’accès au réseau et de la rede vance sont réglées dans une convention entre les 
entreprises concernées. 
 
 (8) A
IR TRANSPORT  
 
Mexique 193. Question  
En el párrafo 1 se menciona que los compromisos de Suiza en el AGCS sobre transporte aéreo son 
muy limitados. México tiene interés en conocer las razones por las cuáles el acceso al mercado en el 
sub-sector de servicios de reparación y mantenimie nto de aeronaves, se encuentra tan restringido en 
los denominados modos 2 y 4 de suministro 
 
Réponse 
La législation suisse concernant la réparation et l'entretien des aéronefs est plus souple que ce 
qui ressort de la seule lecture des engagements de  la Suisse dans ce secteur. Cette soupless a été 
reflètée dans l'offre intitiale que la Suisse a soumise le 9 avril 2003 ("None" au lieu de 
"Unbound" pour le mode 2 et suppression de la mention "Commercial presence in Switzerland 
required" pour le mode 4). Une validation sui sse est exigée concernant la qualification pour 
certaines activités spécifiques.  
 (9) T
OURISM  
 Canada 194. Question  
 
§161 With reference to Switzerland, the report notes that the " clause du besoin " has been abandoned, 
with a grace period of ten years. It notes that "at the end of the transition period, the location and 
operation of restaurants should eventually be market-determined." Please explain what happens 
during the transition period, if the clause du besoin  has already been abandoned. 
 Réponse  The federal provision (clause du besoin) provided the cantons with the possibility to enforce an 
economic needs test for hotels a nd restaurants at cantonal level. In 2004 the federal legal basis WT/TPR/M/141/Add.1 
Page 86  
 
was amended in order to withdraw the provision but cantons enjoy a grace period of 10 years. 
This means that they have 10 years to eliminat e the corresponding economic needs test in their 
cantons. During this period cantons will one by  one implement this elimination, which means 
that once this restriction has been abrogated in th eir cantons, location and operation of hotels 
and restaurants will be market driven. Some cant ons have already eliminated this clause. In 
these cases, market forces prevail.  
195. Question  
§164 The report states that with respect to Liechtenstein , its tourism legislation has subsequently been 
revised. Grateful information on new legislation. Alternatively, a web link will be welcome.  
Réponse 
www.tourismus.li   
 
Australie 196. Question  
The Secretariat report notes the foreshadowed review of legislation on specific requirements of tourist 
guide services (WT/TPR/S/141, page 132, para 161).   We seek clarification of what the review will c over and the likely changes to these requirements. 
 
Réponse 
The review of legislation on specific requireme nts of tourist guide services will concentrate on 
the compatibility of the Swiss legislation with the regulations and laws in the European Community. Under the revised internal market law – submitted to the Parliament by the end of 
November 04 - measures limiting professional and geographical mobility within Switzerland 
will be lifted.  Mexique 197. Question  
El párrafo 161 indica que, desde este año, se ha supr imido , con un período de gracia de 10 años, la 
denominada “clause du besoin”  que regulaba la concesión de li cencias en los cantones para el 
suministro de servicios de restauración. Al resp ecto, ¿podría Suiza confirmar si con esta medida se 
suprimen también las denominadas pruebas de n ecesidad económica para la obtención de licencias 
para restaurantes y el requisito de r esidencia del titular de la licencia? 
 Réponse 
For the answer to this question please refer to the re sponse to question raised by Australia under this 
section.   (10) P
ROFESSIONAL SERVICES  
 
Costa Rica 198. Question  
¿Cuáles son los requisitos que deben cumplir los ex tranjeros para ejercer una profesión en Suiza y 
Liechtenstein que no deben cumplir los nacionales?  Réponse There are no nationality requirements for busine ss services, except for doctors and veterinary 
surgeons as indicated in the Swiss schedule. Other limitations in subsectors pertaining to 
business services, where Switzerlad has taken commitments, are listed in the schedule of 
commitments. 
 WT/TPR/M/141/Add.1 
Page 87 
 
 
   (i) Legal services 
 
Mexique 199. Question  
En el cantón de St. Gallen se solicita el requisito de nacionalidad suiza para iniciar el ejercicio 
profesional en servicios jurídicos. ¿Existe la inte nción de este cantón por eliminar este requisito a 
corto plazo?  
Réponse 
St. Gallen has lifted its nationality requirements. Th is has been taken into account in the initial 
offer submitted by Switzerland on the 9 April 2003.  
  (ii) Accounting and auditing services  
Mexique 
200. Question  
En esta sección se describen requisitos sumamente variados para poder pres tar los servicios de 
contabilidad, auditoria y teneduría de libros, según el cantón del que se trate (vgr. párrafo 178). Al 
respecto, ¿podría Suiza informar si existe la intenc ión de uniformar los requis itos para la prestación de 
este servicio en los diversos cantones y sub- cantones, de manera que se permitan mayores 
oportunidades para los profesionistas de terceros países? 
 
Réponse 
Le texte du secrétariat de l’OMC décrit aux §177 à  §184 de manière exhaustive les conditions 
d’accès au marché dans le doma ine des services de comptabilité et de révision. Toutes ces 
dispositions sont valables sur l’ensemble du territoire. D’après nos enquêtes, seulement les deux 
cantons mentionnés dans le §178 connaissent en  sus encore des dispositions cantonales 
spécifiques. Dans le cas de ces deux cantons, la loi sur le marché intérieur est applicable, loi dont 
peuvent se prémunir les personnes avec établisseme nt en Suisse. Cette loi n'a toutefois pas 
l'intention d'harmoniser les dispositions cantonales.  Elle permet toutefois, d'invoquer cette loi, 
si les règlementations cantonales représentent des obstacles non-justifiés.  
 
201. Question  
En el caso de Liechtenstein, el párrafo 186 indica qu e el otorgamiento de permisos y los requisitos 
para ejercer la profesión de auditor son más flexib les. Sobre el particular, ¿podría Liechtenstein 
indicar qué requisitos solicita para el ejercicio de las profesiones de contabilidad y teneduría de 
libros? 
 
 (11) F
INANCIAL SERVICES  
 
Costa Rica 202. Question  
¿Tiene Suiza alguna fecha definida para el es tablecimiento de la Fe deral Financial Market 
Supervisory Authority (FINMA) ?  
 
Réponse 
On November 24, 2004, the Swiss Federal Counc il has mandated the Federal Department of 
Finance to draft a message (which will consist of  a draft financial market supervisory act and 
corresponding explanations) concerning FINMA. Th e message is expected to be ready by the 
end of 2005. The law will then have to pass th rough the legislative process and, after approval 
by parliament, the establishment of FINMA will ta ke place. This is not likely to occur before 
2007. WT/TPR/M/141/Add.1 
Page 88  
 
Most recent information is available (in French and German) under 
http://www.efd.admin.ch/f/dok/medien/me dienmitteilungen/2004/11/finmag.htm.  
 
203. Question  
¿Cuáles son los principales cambios que estaría realizando Suiza bajo la Monetary Laudering Law 
(LBA)? 
 
Réponse  
The system to combat money laundering in Swit zerland is a comprehensive body composed of 
preventive components belonging to administra tive law and repressive components contained in 
the criminal law. Switzerland is an active memb er of the Financial Action Task Force on Money 
Laundering (FATF), which  revised its 40 Re commendations in June 2003. These revised 
recommendations constitute new international st andards on combating money laundering and 
the financing of terrorism. Swiss legislation al ready complies to a large extent with these new 
revised standards. A few modifications will no netheless have to be made, including some 
modification of the Money Laundering Act. To  this end, the Federal Council mandated the 
Federal Department of Finance at the end of October 2003 to appoint an interdepartmental working group to examine the adaptation needs and draft adequate proposals. The Finance Department has planed to initiate a public consul tation on such proposals at the beginning of 
2005. 
 
204. Question  
¿Podría indicar Suiza en qué estado se encuentran  los cambios que se están realizando a la Law on 
Mutual Funds y para cuándo entrarían en vigencia?  
Réponse 
The total revision of the Investment Funds Act aims  at the extension of its scope in order to 
cover all forms of collective investment schemes (i ntroduction of Swiss "Société d'investissement 
à capital variable (SICAV)", "Société d'investi ssement à capital fixe (SICAF)" and "Limited 
Partnership (LLP)", bringing investment foundati ons within the scope of the law). The revision 
also aims at the extension of the circle of existi ng investment funds for in stitutional investors to 
include additional "qualified investors" ("High Net Worth Individuals"). 
 
A consultation procedure (means that the draft la w is forwarded for consultation to the cantons, 
parties and associations and to other groups with  a particular interest in the subject) has taken 
place between January and May 2004. The message to parliament is currently being drafted. 
The date of entry into force of the revised act is not yet known, but it is considered that the 
earliest date possible would be the beginning of 2007. 
 
  (i) Banking services 
 
Canada 
205. Question  
§206 
Paragraph 206 states that market access to foreign ba nks in Switzerland is subject to a reciprocity test, 
except in cases covered by in ternational obligations. 
 Could Switzerland explain the rationale  of applying a reciprocity test? 
 
Could Switzerland indicate if there have been cases where the Swiss Federal Banking Commission (SFBC) did not issue a licence to a foreign ba nk requesting access to the national market on the 
grounds of the reciprocity requirements?  WT/TPR/M/141/Add.1 
Page 89 
 
 
 Réponse 
Il faut tout d’abord souligner que depuis 1995 la  condition de réciprocité n’est pas examinée par 
l’autorité suisse de surveillance, dans les nombre ux cas où le pays de domicile de la banque 
étrangère et des personnes dominant celle-ci est membre de l’OMC. Ainsi, l’exigence de 
réciprocité a perdu de son importance et rest e applicable uniquement aux banques dont les 
actionnaires majoritaires sont origin aires de pays non membres de l’OMC. 
 Il faut ensuite relever que déjà  avant 1995 la condition de réciprocité était appliquée de façon 
souple. Ainsi, l’autorité suisse de surveillance n’ exigeait pas que l’activité bancaire soit possible 
pour les banques suisses dans le pays étranger sous les mêmes formes qu’en Suisse pour les 
banques étrangères. Il suffisait qu’il existe une po ssibilité effective d’un point de vue politique, 
juridique et économique que des instituts bancaires suisses puissent s’y établir et y être actifs. Il était notamment admissible que les banques su isses puissent ouvrir uniquement une succursale 
ou doivent avoir une certaine taille. Par contre, l’ex igence de réciprocité aurait fait défaut si la 
réglementation étrangère avait prévu le refus d’ ouverture de succursale aux banques suisses sur 
la seule base d’une disposition discriminatoire, d’une clause de besoin ou d’un pouvoir 
purement discrétionnaire de l’autorité  de surveillance étrangère.  
 Les décisions de refus d’autorisation à l’é gard de banques étrangères sont principalement 
justifiées par l’absence d’organisation adéquate  ou le manque de compétences du personnel au 
regard des activités bancaires envisagées en Sui sse. Il n’y a pas eu ces dernières années de 
décision formelle refusant l’autorisation à une banque étrangère sur la seule base de la 
condition de réciprocité. Il se peut toutefois qu’une banque étrangère provenant d’un pays qui n’aurait pas rempli la condition de réciprocité ait renoncé à déposer une requête formelle d’autorisation suite à un préavis négatif informel du secrétariat de l’autorité suisse de surveillance. 
 
206. Question  
Paragraph 208 indicates that foreign stock exchanges must be subject to “appropriate supervision” in 
order to be authorized to operate in Switzerland.  Paragraph 208 also states that foreign securities 
dealers wanting to open a Swiss branch need to demonstrate sufficient organization and resources in 
order to receive the SFBC authorization. Could Switzerland provide more details regarding these 
requirements ? 
 
Réponse 
a) "appropriate
 supervision"/ Foreign Stock Exchanges in Switzerland  
Il faut tout d’abord relever que la pratique actue lle de l’autorité suisse de surveillance est de 
reconnaître les bourses étrangères regroupées au sein de la World Federation of Exchanges 
et/ou au sein de la Federation of European Stoc k Exchanges, sans qu’un examen particulier soit 
nécessaire.  En ce qui concerne les autres bourses, la Co mmission fédérale des banques a octroyé les 
autorisations sans examiner de façon approfondie si la surveillance effectuée par les autorités 
étrangères était appropriée. Il s’agissait en effe t dans tous les cas d’autorités de surveillance 
connues de la Commission. Elle s’est donc contentée d’une confirmation des autorités 
étrangères selon laquelle elles ne formulent aucune  objection à l’activité transfrontalière de la 
bourse étrangère, elles informeront la Commission fédérale des banques si elles constatent des 
infractions à la loi ou d’autres irrégularités co mmises par des négociants suisses et elles sont en 
mesure de lui fournir l’assistance administrative requise. 
 b) "appropriate supervision" / Foreign Securities Dealers in Switzerland
 
La Commission fédérale des banques autorise un négociant étranger de valeurs mobilières à 
ouvrir une succursale en Suisse lorsque certa ines conditions sont remplies ayant trait au WT/TPR/M/141/Add.1 
Page 90  
 
négociant étranger lui-même, à la surveillance dont il fait l’objet dans son pays d’origine et à la 
succursale en Suisse.  Tout d’abord, le négociant étranger doit disp oser d’une organisation adéquate, de ressources 
financières suffisantes et du personnel qualifié nécessaire pour exploiter une succursale en 
Suisse. Il doit également être soumis dans son pays d’origine à une surveillance appropriée qui 
englobe la succursale. La Commission fédérale des banques évalue ces questions à l’aune des 
standards internationaux, notamment ceux fixés par le Comité de Bâle, par IOSCO ou, en 
matière de lutte contre le blanchiment, par le  GAFI (FATF). En pratique, l’examen de la 
Commission fédérale des banques sur l’adéquation  de la surveillance étrangère est faite de 
manière succincte, lorsque le négociant provient d’un pays dont l’autorité de surveillance est 
déjà connue de la Commission.  Finalement, certaines exigences relatives à la succ ursale en Suisse doivent être remplies. La 
succursale doit être organisée en fonction de son activité et disposer d'un règlement définissant 
exactement son champ d'activité et prévoyant une organisation administrative correspondant à 
cette activité. Il s'agit notamment de prévoir la séparation efficace des fonctions entre le négoce, 
la gestion de fortune et l'exécution des transact ions. Il s'agit également d'instituer une révision 
interne et externe. Enfin, les collaborateurs resp onsables de la direction de la succursale doivent 
présenter toutes garanties d'une activité irrépr ochable, c'est-à-dire non seulement être 
professionnellement compétents, mais encore se  comporter de manière adéquate dans les 
affaires.  
Hong Kong, China 
207. Question  
It is noted that the establishment of branches or  subsidiaries or agencies of foreign banks in 
Switzerland requires a licence by the Swiss Federal Banking Commission (SFBC), and once 
established, they enjoy the same status as Swiss banks.  It is however provided under Switzerland’s 
GATS commitments that there are some national treatme nt limitations for foreign suppliers.  In this 
connection, would Switzerland confirm if national tr eatment is accorded to foreign suppliers in 
banking services?  Réponse La Liste des engagements spécifiques GATS de la  Suisse en matière de services financiers doit 
être confirmée dans son contenu. Il faut tout efois relever que les restrictions au traitement 
national y mentionnées sont très limitées. Il s’ agit essentiellement des exigences concernant le 
nom des filiales et succursales de  banques étrangères. Celui-ci ne doit pas permettre de conclure 
au caractère suisse de l’établi ssement ni laisser présumer un tel ca ractère. Le but de cette règle 
est d’éviter que des clients soient induits en  erreur sur l’origine d’une banque et, notamment, 
sur l’identité de l’autorité de surveillance qui  procède à la surveillance consolidée du groupe 
dont fait partie la filiale ou succursale étrang ère. En pratique, les filiales de banques étrangères 
reprennent le nom de la maison mère, en y in cluant le terme « (Suisse) » entre parenthèses. 
 
Australie 
208. Question  
The Secretariat report notes that bank secrecy re mains an important aspect of the Swiss banking 
system (WT/TPR/S/141, page 142, para 203).  Bank secrecy laws create distortions in trade and investment patterns and undermine the transparency, fairness, neutrality and broad social acceptance 
of tax systems.   
Does Switzerland plan to reconsider the OECD’s proposal to lift bank secrecy for all tax purposes.  If not, will this affect Switzerland’s ability to effectivel y participate in exchange of information between 
governments in relation to all tax matters.  WT/TPR/M/141/Add.1 
Page 91 
 
 
 Réponse 
Banking secrecy often gives rise to a variety of misunderstandings and criticisms that require 
some clarification.  Financial privacy is not and has never been  absolute. Whenever major public or private 
interests demand it, the bank secrecy would be lifted according to Art. 47 par. 4 of the Swiss 
Banking Law. This is of importance not only regarding domestic criminal procedures but also 
(accessory) mutual legal assistance in criminal matters. Substantial requests for legal assistance 
provided, banks can be obliged by Swiss authorit ies to hand out documents for evidence, to give 
information, to release objects or values etc.   
Swiss legislation to prevent the criminal misuse of its financial institutions is very developped 
and corresponds the FATF standards. It is re gularly revised when this has been necessary. 
Switzerland co-operates effectively with oth er countries in the fight against organised crime, 
and financial privacy can be lifted within the scope  of judicial or administrative assistance for 
cases of corruption, money-laundering and tax fraud.  
 
With respect to tax offences, it has to be no ted that procedures for tax fraud can lift bank 
secrecy and allow corresponding acts of mutual legal assistance. The double taxation 
agreements with the US and Germany do allow ad ministrative assistance for tax fraud, which 
can also lead to the lifting of bank secrecy. Swit zerland is in the process of negotiating similar 
agreements with other countries. 
 
New legislation has considerably restricted the Scope of banking secrecy over the years, because 
Switzerland is well aware of the risk that fina ncial privacy may be abused in the context of 
criminal activities. Switzerland has not only intr oduced strong measures aimed at preventing 
the unlawful use of its financial center; Switzerland has also s upported several initiatives to 
strenghten international standards and to improve the efficiency of international co-operation 
to fight financial crimes.  It is maybe also woth to mention that cooperation  must be effective, which means that a country 
must be in a position to find records and info rmation usefull to th requesting country. As 
Switzerland observes strong “know your cust omer” rules, information furnished by 
Switzerland relates to beneficial owners. In  the past years, the press related cases of 
international legal assisance procedures, conc erning many countries, where Switzerland had 
been in a position to correctli fullfill the le gal assistance requests, while other countries 
(OECD/UE countries) could not in the same conditions. 
 
Some words can also be said concerning the OE CD work more specifically. Switzerland agreed 
to the CFA 2000 Report on improving access to bank information for tax purposes. 
Furthermore, Switzerland agreed to improve bilat erally its exchange of information concerning 
holding companies accoring to the 2004 Progress Report on harmful tax practices. As a matter 
of rule, Switzerland is in favor of international cooperation in tax matters, under certain conditions, and is having now negotiations with  OECD member countries on this matter. Its 
seems however that the OECD, or at least a cert ain number of high tax jurisdictions through 
the OECD, are trying by means of the “threat” of an extensive exchange of information, to close 
down exit-options for capital,  because capital is mobile.  
 The view of Switzerland is indeed much more to try to increase the tax compliance of the own 
taxpayers. The obvious point is that many citize ns in high-tax countries do not accept their tax 
system as fair. Taxpayers perceive their relations hip with the state not only as a relationship of 
coercion, but also as one of exchange. A taxpayer is  more willing to pay his taxes if the relation 
between the tax paid and the government services and goods provided are found to be equitable. Admittedly, small federal countries have been gi ven this sort of priviledge because, as a WT/TPR/M/141/Add.1 
Page 92  
 
consequence of direct democracy, there is a “merg er” between citizens and local governments. 
Against this background, other alternatives than  information exchange for tax purposes would 
be more successful and should be considered thoroughly. Our proven system of levying 
withholding taxes combined with moderate tax levels and an exchange for information for 
serious tax offesnses is one such alternative.  
 
EC 
209. Question  
In the report prepared by the WTO secretariat, the EC has noted (pag e 144) that the supervision of the 
financial sector is presently under review:  
 
Could Switzerland
 provide details on its legislation agains t money laundering and in particular on the 
state of play in the implementations of the FA TF conclusions as regards a) the qualification of 
smuggling as precursor for money laundering and b) the reduction of the minimum penalty threshold 
from maximal one year imprisonment to  maximal six months imprisonment. 
 
Réponse 
The Swiss legislation against money laundering and the financing of terrorism is generally 
recognized to be largely compliant with the rev ised FATF recommendations and fulfils highest 
international standards.  Still, some modifications remain to be made fo r the full implementation of the revised FATF 
recommendations. Amendments will be made not only to the Anti Money Laundering Act but 
also to the Swiss Penal Code and the Stock Corporation Law. The amendments refer, among 
other things, to the definition of the predicat e offences to money laundering, the extension of 
the scope of application of the anti money laund ering legislation to certain types of not directly 
finance related professions and to transparen cy provisions concerning the owners of bearer 
shares. Further, some amendments will be made to the anti money laundering legislation based 
on the practical experiences acquired during the first years of its implementation.   An interdepartmental working group is currentl y drawing up a draft message to parliament 
including recommendations concerning the legal amendments to be made. A consultation 
procedure on this draft is expected to be opened by the beginning of 2005.  
 
Please note that in 2005, Switzerland will also undergo a mutual evaluation by the FATF. 
 
Mexique 
210. Question  
México tiene interés de que se eliminen las rest ricciones comprendidas no sólo en las operaciones que 
se indican en el párrafo B.3 del “Entendimiento”, sino la totalidad de las actividades de servicios 
bancarios y demás servicios financieros. ¿Considera Suiza la posibilidad de eliminarlas en el corto 
plazo?  
Réponse 
Les négociations du Doha round détermineront la manière de progresser dans ce domaine. 
 Taipeh Chine 211. Question  
The minimum fully paid-in share capital for a bank in Switzerland is Sw F 10 million. Please could Switzerland indicate if there are any additional paid-in capital requirements over and above the 
minimum.  
Réponse 
Le capital minimum de CHF 10 millions est un mi nimum légal absolu qui doit être respecté par 
la banque en tout temps. Dès lors, lors de l’ou verture d’une banque et au vu des inévitables WT/TPR/M/141/Add.1 
Page 93 
 
 
 pertes qu’engendre le lancement d’une telle en treprise, la Commission fédérale des banques 
(CFB) a pour pratique d’exiger un capital supérieur au minimum de CHF 10 millions. Le capital demandé dépendra de la nature et de l’importance des activités projetées. Il sera toutefois rarement en-dessous de CHF 15 millions, même si l’activité proj etée est simple (comme 
par exemple en cas de gestion de fortune). 
 
212. Question  
As indicated in the report, natural persons or lega l entities holding at least 10% of the capital or voting 
rights, or which otherwise significantly influence th e activity of a bank (qualified participation), must 
guarantee that their influence will not adversely affect the bank’s activity. Please could Switzerland 
explain how this requirement is enforced in practice ?  
Réponse 
Les personnes physiques ou morales qui détie nnent dans une banque, directement ou 
indirectement, au moins 10 pour cent du capital ou des droits de vote, ou qui de toute autre 
manière peuvent exercer une infl uence notable sur la gestion de la banque (participation 
qualifiée), doivent donner la garantie que leur influence n’est pas susceptible d’être exercée au 
détriment d’une gestion prudente et saine de la banque.  
Ainsi, les demandes d’autorisation pour l’ouv erture de nouvelles banques doivent contenir 
certaines indications sur ces personnes, notamment  : a. pour les personnes physiques: des informations  sur la nationalité, sur le domicile, sur les  
participations qualifiées détenues dans d’aut res entités et sur d’éventuelles procédures 
judiciaires et administratives pendantes, ainsi qu’un curriculum vitae signé, des références et un 
extrait du casier judiciaire;  
b. pour les sociétés: les statuts, un extrait du Registre du commerce ou une attestation analogue, une description des activités, de la situation financière et, le cas échéant, de la 
structure du groupe ainsi que des informations sur d’éventuelles procédures judiciaires et administratives, pendantes ou terminées 
 
213. Question  
According to paragraphs 206 and 214, the establishm ent of all branches, subsidiaries or agencies of 
foreign banks in Switzerland/Liechtenstein re quires a licence by the SFBC/FSA. We would 
appreciate having a detailed description of the substa ntive and procedural requirements for obtaining 
approval from SFBC/FSA. 
 
Réponse 
a) Answer about subsidiaries of foreign banks in Switzerland
 
In Switzerland, a banking license is to be gr anted if the applicant entirely meets all the 
requirements laid out in Art. 3 and 3bis Banki ng Act (BA). The bank then has to constantly 
comply with those initial requirements througho ut its active existence which is regularly 
examined by the bank’s audit firm. In case  of non-compliance the SFBC will ultimately 
withdraw the license. The formal denial of a license application or the withdrawal of a granted license are subject to an appeal to the Swi ss Federal Court. A Swiss banking license is 
considered a “universal” license meaning that it is  not issued for a specialized field such as 
commercial, investment, private banking etc. However, the examination of the requirements 
(especially the initial capital) in the applic ation process depends on the projected activity. 
 The Swiss licensing requirements consist of vario us elements qualitatively and quantitatively 
similar to those of other financial centers.  As a first requirement the bank to be licensed has to provide an organization able to meet the 
demands of the projected business. In this regard its by-laws and internal regulations have to WT/TPR/M/141/Add.1 
Page 94  
 
clearly define the type and geographical limits of the planned banking activity and accordingly 
the internal organization for that activity. Furthermore, the bank’s responsibilities and the 
internal control procedures have to be suffi ciently described. The SFBC not only formally 
approves the by laws and major internal regulatio ns on the occasion of the establishment of the 
bank but also their subsequent changes and am endments. Within the organization of the new 
bank there must be a separation between the su pervisory and policy making functions of the 
board of directors and the executive function of the management, the same person may not serve on both bodies, thus eliminating or undermining the position of a managing director.  Secondly, the new bank must have a paid-in capi tal of at least CHF 10 million. In cases where 
according to the business plan the projected ac tivity requires more funds – which is normally 
the case – the initial capital can go further up.  Thirdly, directors and managers of the bank must  be competent and fit for the specific business 
of the new bank, i.e., their personal integrity an d professional skill as well as their experience 
must meet the demands of their new task. All license applications must include the curricula 
vitae of key personnel, extracts of the general registry of criminal records (where available), and 
references for all directors and senior manageme nt. Managers of a Swiss incorporated bank do 
not have to be Swiss residents. However, they mu st be able to exercise de facto the management 
responsibility from Switzerland.  
Forthly, qualified shareholders (directly or indire ctly owning or controlling 10% or more of the 
share capital or the voting rights of a bank and persons who are in a position to substantially 
influence a bank in any other manner) are subject to the same “fit and proper” requirements as 
directors and managers. The qualified sharehold ers and the banks have a legal duty to report 
the relevant shareholdings and their changes to the SFBC. The SFBC is entitled to enforce the 
“fit and proper” requirement by suspending the voting rights of non complying shareholders up 
to revoking the banking license in severe cases. Apart from this qualitative requirement the 
banking legislation applies no quantitat ive limitation on ownership in banks. 
 Additional requirements for a foreign controlled new bank are stated in Art. 3bis BA. A bank 
qualifies as foreign controlled if one or more fore ign nationals own a direct or indirect interest 
exceeding 50% of the share capital or the voting rights of the bank, or if they exercise a 
controlling interest in another manne r. The requirements basically only consist of the proof that 
the company name does not imply a Swiss ownership of the bank and an adequate supervision of the parent company. In the case of a foreign  bank or financial institution establishing the 
banking entity in Switzerland the SFBC thus obtains a “non objection”-declaration of the 
home-country supervisor and - if a financial co nglomerate or banking group owns the foreign 
bank - a declaration of the home-country author ity that supervises the conglomerate/group on a 
consolidated basis. The reciprocity requirement, whic h is also mentioned in the law, has lost its 
importance due to Switzerland’s adherence to GATS which requires Switzerland to apply the 
most-favoured-nation-rule to all WTO-members.  
To accommodate the practical needs of the ba nking license applicants the SFBC has published a 
guideline for license applications (http://www.eb k.admin.ch). The guideline contains various 
information and a list regarding the mandatory  documentation including, among other things, 
draft instrument of incorporation, draft of by-l aws and internal regulations, specific additional 
information regarding the organization (chart, pr ocedures, internal controls, outsourcing, IT-
structure etc.), business plan (with projections for first three financial years), specific 
information and documentation regarding owners  (i.e. qualified shareholders) and source of 
initial capital, specific informatio n regarding directors and managers. 
 Once the Secretariat has received the application along with the necessary documentation from 
the applicant, it will prior to bringing a prop osal for approval before the Commission carry out WT/TPR/M/141/Add.1 
Page 95 
 
 
 a thorough examination of the licensing requirements. The Secretariat thus provides a certain 
filtering function. In other words, no incomple te or insufficient license application will be 
brought before the Commission. From the applic ant’s perspective the Secretariat has also a 
service function in that it accompanies the applic ant already at an early stage in the application 
procedure and is regularly willing to examine and discuss preliminary banking projects and 
draft applications. On the basis of this pro cedure an applicant receives already early in the 
process indications as to the feas ibility of his banking project. An applicant is nevertheless free 
to request a formal decision from the SFBC if th e indications from the Secretariat regarding his 
application are predominantly negative. Howev er, in the last 5 years no applicant has 
demanded such a formal decision. 
 
b) Answer about branches of foreign banks in Switzerland  
Foreign banks and non-banks that wish to opera te a banking branch in Switzerland require a 
license from the SFBC. Branch banking is de fined as (i) conducting banking business, 
maintaining customer accounts or generally ente ring into transactions legally binding upon a 
foreign domiciled bank, (ii) provided that th ese activities are carried out commercially by 
permanent staff in Switzerland. A foreign bank is  defined as every institution (a) organized 
under foreign law which (b) possesses a banking license in a foreign country, or (c) uses the 
name „Bank“, „Banker“ or similar name or (d ) performs activities falling under the scope of 
the Banking Act. The Foreign Bank Ordinance (FBO) imposes the following requirements for 
the establishment of a branch by a foreign controlled bank: 
a) the foreign bank has to be appropriately organized and employ qualified staff and have 
 sufficient financial resources to operate a branch in Switzerland; b) the foreign bank must be subject to adequate  supervision, which includes the branch in 
 Switzerland; c) the responsible foreign supervisory authorit ies must not object against the establishment 
 of the branch; 
d) the foreign regulator must confirm that th ey would immediately inform the SFBC if 
 there are concerns that the (financial) int erests of the foreign bank's creditors could be 
 seriously jeopardized; e) the foreign regulator must be able to sha re information and cooperate with the SFBC; 
f) the home-country of the foreign institution should give reciprocal treatment to Swiss 
 banks (This criterion is not examined if the home-country is a WTO member); 
g) the management of the branch must be fit and proper and the branch adequately 
 organized; h) the branch must meet the criteria to register as a branch in the Swiss Commercial 
 (Companies) Register. 
 
If the foreign bank is part of a financial cong lomerate or banking group the SFBC may require 
that the home-country regulator supervises the entire conglomerate  or group on a consolidated 
basis. Unlike affiliates, branches of foreign ba nks are exempted from complying with capital 
and large exposure rules. However the SFBC m ay require compliance with these rules if the 
home country of the foreign bank does not grant similar relief and if no international agreement 
exists. The branch may establish its annual and interim financial statements according the 
home-country’s requirements, provided that these requirements satisfy international accounting standards. The accounts may be publishe d in English notwithstanding the fact that 
English is not an official language in Switzerl and. Closing of a branch requires authorization by 
the SFBC. 
 WT/TPR/M/141/Add.1 
Page 96  
 
c) Answer about agencies of foreign banks’ subsidiaries or branches
 
The SFBC will grant the Swiss subsidiary or branch of a foreign bank a license to open an agency, if: a) the home-country of the foreign institution should give reciprocal treatment to Swiss 
 banks (this criterion is not examined if the home-country is a WTO member); 
b) The name of the foreign bank’s Swiss subsidiary  or branch and of the agency shall in no 
 way indicate or suggest that the bank is Swiss controlled; and c) The agency possesses a regulation that precisely defines its business activities and 
 provides for an adequate orgnaisation.  
d) Answer about reprensentative offices of foreign banks in Switzerland
 
All activities of a foreign branch, which do not qua lify to be branch activities but are carried out 
commercially by permanent staff employed in Swit zerland are considered to be activities of a 
representative office. In particular, such activiti es include forwarding of customer orders to the 
foreign bank and undertaking marketing and public relations activities. The operation of a 
representative office requires authorization by the SFBC. The SFBC authorizes a foreign bank 
to open a representative office, if a) the bank is subject to adequate supervision; 
b) the foreign supervisory authorities raise no objection against the establishment of the 
 representative office; c) the home-country of the foreign bank grants reciprocal treatment to Swiss banks (This 
 criterion is not examined if the home-country is a WTO member), and 
d) the persons charged with the management of the representative office are fit and 
 proper.  Representative offices are subject to only fe w regulatory requirements. In substance, 
representative offices only have to send their annual report describing their activities to the 
SFBC within four month after year-end. The fo reign bank has to report the closing of its 
representative office in Switzerland to the SFBC. 
 
  (ii) Insurance services  Canada 214. Question  
Paragraph 224 states that there is a public monopol y on fire and natural damage insurance on 
buildings in most Switzerland cantons.  Could Swit zerland provide the rationa le behind the existence 
of a state monopoly for these property and casualty insurances? 
 
Réponse 
La comparaison entre les cantons où un systèm e de monopole existe et les cantons avec un 
système privé, permet certaines conclusions: Le  système de monopole, combiné avec l'obligation 
de s'assurer, permet de rationaliser les commissions et frais administratifs. Les 19 
établissements cantonaux d'assurance immobilière (ECA) dépensent en moyenne 6 centimes par 
1'000 francs de capital assuré (ct/ francs CA) po ur ces deux postes, chez les assureurs privés ce  
rapport s'élève à 33ct/1000 francs CA.  Par le fait que la couverture géographique est clairement déterminée et attribuée à une seule 
entreprise, les ECA peuvent se considérer comme des entreprises verticalement intégrées actives 
dans l'assurance et la prévention. En termes éco nomiques, il s'agit de délimiter très précisément 
une externalité et de l'attribuer à un seul acteur économique, qui sera alors incité à en réduire les effets. L'institution qui retire un bénéfice matériel direct d'une meilleure prévention est aussi chargée de son organisation et de son financemen t. De fait, les ECA sont  actifs dans un large 
éventail d'activités de prévention : ils interv iennent dans l'aménagement du territoire pour 
empêcher que des bâtiments soient construits  dans des zones soumises à un danger accru WT/TPR/M/141/Add.1 
Page 97 
 
 
 d'éléments naturels; ils collaborent à l'élaboration des normes de construction; et finalement ils 
sont très actifs dans la formation, la coordina tion et le financement des pompiers. Le taux de 
sinistre, par conséquent, est sensiblement plus faible dans les cantons avec un monopole, ce qui 
réduit d'autant les coûts des ECA. L'ECA peut  alors répercuter ces avantages sur l'assuré, qui 
bénéficie d'une prime moyenne de 40 % plus faible que celle payée aux assureurs privés. 
Les ECA ne sont donc pas de simples sociétés d' assurance. Ils constituent un système qui n'est 
en mesure d'accomplir judicieusement et efficaceme nt sa tâche de droit public pour le bien-être 
de la population que dans le contexte du triang le " prévention des dommages, lutte contre les 
dommages, liquidation des dommages ".  
Hong Kong, China 
215. Question  
It is noted that, as a general rule, cross-border supply of insurance services is not possible in 
Switzerland.  However, Switzerland’s relevant co mmitment on mode 1 seems to have permitted such 
services and the only market access limitation is r estricted to the underwriting of aircraft liability 
insurance. Would Switzerland please clarify its regime with respect to the cross-border supply of 
insurance services ?  
Réponse 
Switzerland’s commitments on insurance services  are in accordance with the « Understanding 
on Commitments in Financial Services » and subj ect to limitations and conditions as contained 
in Part I (horizontal commitments) and as listed in Part II (sector-specific commitments, 
7. Financial Services). Therefore, besides transact ions as indicated in pa ragraph B.3 and B.4 of 
the « Understanding on Commitments in Financ ial Services » cross-border supply of insurance 
services is unbound.  Under the « Understanding  on Commitments in Financial Services », 
mode 1 is to be allowed for MAT insurance and reinsurance. For the insurance of other risks a 
Swiss license is required.  
Mexique 
216. Question  
¿Prevé Suiza eliminar la restricción relativa a la pr esencia comercial para la suscripción de seguros de 
responsabilidad civil por aeronaves? 
 
Réponse 
Les négociations du Doha round détermineront la manière de progresser dans ce domaine. 
 
Thailande 
217. Question  
In connection with public health insurance, Tha iland would like to know whether the Swiss citizens 
can reimburse their expenses arising from consumi ng private hospital services within the country? If 
so, how much can they reimburse, and under what conditions? Also, if such expenses arise outside 
Switzerland, are such reimbursement and conditi ons still the same as in the case of within 
Switzerland? If not, what is the difference? 
 
Réponse   
All persons domiciled in Switzerland regardless of whether or not they are Swiss citizens must 
hold insurance for medical and pharmaceutical care. The services covered include hospitals, 
private or public, as far as they fulfilled mi nimum hospital standards and are planned at 
cantonal level. In the event of treatment in a ho spital or semi-hospital establishment, the insurer 
only covers the costs up to the tariffs applicable in the insured person's canton of residence. The 
compulsory healthcare insuran ce covers treatments provided abroad in emergency cases only. 
'Emergency' means that the insured person living abroad temporarily is in need of medical WT/TPR/M/141/Add.1 
Page 98  
 
treatment and that repatriation (to Switzerland)  would not be appropriate.  There is no 
emergency if the insured person travels abroad with the aim of seeking treatment. The services provided in this context are covered up to twice the amount that would have been paid if the 
treatment had taken place in Switzerland.    
 WT/TPR/M/141/Add.1 
Page 99 
 
 
 RESPONSES PROVIDED BY LIECHTENSTEIN  
TO ADVANCE WRITTEN QUESTIONS  
 
 
AUSTRALIA  
 
Financial services 
 
The Secretariat report notes that Liechtenstein, al ong with Andorra, Liberia, the Marshall Islands and 
Monaco, remain on the OECD’s list of uncoopera tive tax havens (WT/TPR/S/141, page 146 para 
220).   
Does Liechtenstein plan to commit to the OECD’s standards in the future. 
Answer: 
Liechtenstein was always committed to a cooperative approach provided it is em bedded in principles 
of a level playing field, equal treatment and a trans parent proceeding.  Liechtenstein, as a non-OECD 
member hopes that an agreement with the OECD on th e way to proceed can be found soon.  To list 
Liechtenstein as uncooperative tax haven – a list th at does not correspond to serious objective criteria 
– is not justified.  Liechtenstein has shown more t han once that it is open for cooperation also in the 
field of taxation.  It is to be mentioned in th is context that an Agreement on savings taxation that 
profits a majority of OECD member  countries has just been signed. 
Foreign Investment 
The Secretariat report notes that Liechtenstein app ears to have onerous residency requirements for 
non-EC natural persons seeking to establish a legal entit y (at least 10 years’ previous residency) or to 
acquire real estate for housing or business purposes (WT/TPR/S/141, page 41, para 90).   
We seek clarification as to why the residency requirements are so onerous. 
 
Answer: 
See answers to questions raised by Canada  BRAZIL  
III - INVESTMENTS 
3. What does “social housing” mean? (Chapter II (5)(ii)(a); § 90; page 40) 
 
Answer: 
The term  « social housing » in the law on the ac quisition of real estate is very vague and in practice 
no permission has ever been granted on the basis of  this formulation. If  a charity-foundation would 
ask for a permission to acquire real estate, a pe rmission could be issued for “social housing” 
reasons. 
 CANADA  Part II.  Trade and Investment Regimes, 5) Forei gn Investment Regimes, ii) Liechtenstein, a) Non-
financial sector  
Paragraph 13 states that “under the Liechtenste in Law concerning Trade, establishment of a 
commercial entity by a natural person is subject to  prior residence during 12 years for citizens of non-
EEA member states”. WT/TPR/M/141/Add.1 
Page 100  
 
1. What is the rationale for this 12-year r esidence requirement? Does Liechtenstein plan to 
reduce or eliminate this residence requirement?  
Answer: 
This requirement has to be looked at in the context of a country’s policy to preserve its national 
identity. This requirement aims at  ensuring  good knowledge on the state internal procedures  and on 
the traditions of  Liechtenstein and its inhabitant s. Liechtenstein makes a tremendous effort to 
integrate its immigrant population, currently composed of 88 nationalities. The desire of 
Liechtenstein to preserve its national identity ha s to be further assessed against the following 
background. By the end of this year Liechtenstein  will have a resident population of approximately 
34’500. More than 35 per cent of the resident popula tion are non-nationals. By the end of 2004  the 
number of jobs will reach  30’000. Therefore about 45 per cent of the total work force commute daily 
from the region to Liechtenstein. Only one job out of three is occupied by a Liechtenstein national. 
Liechtenstein consists of eleven municipaliti es which spread over only 14 square kilometres of 
settlement and business zone land. The residence requirem ent is important to ensure the integration of 
the immigrant population and a balanced developmen t of the economy and the geographic situation. 
At present the question of eliminating this re sidence requirement is not on the agenda of the 
Liechtenstein Government.  
2. Paragraph 13 also indicates that “in a ll cases, the individual must possess sector-specific 
government-recognized professional qualifications”. 
3. Could Liechtenstein please explain the process by which individuals ar e required to provide 
evidence of “sector-specific government-recognized professional qualifications”? Is information on 
this requirement publicly available?  
Answers to 2. and 3.: 
Article 9 of the Law on Trade and Commerce (LGBl.  1970/21) stipulates the need of the professional 
knowledge in general terms. The Regulation on the Law on Trade and Commerce (LGBl. 1974/63) 
puts into concrete terms the professional knowledge by referring to the Swiss register on professions, 
as in practice  the Liechtenstein vocational resp. pr ofessional training is completely integrated into 
the Swiss vocational training system. Th is register is publicly available under 
http://195.65.5.97/berufsb i/verzeich/d/index.htm.  
 
Paragraph 19 states that “non-residents, includi ng Liechtenstein nationals living abroad, are not 
permitted to purchase real estate”.  4. Could Liechtenstein please explain the rationale for this restriction? 
 Answer: Liechtenstein with an area of 160 squa re kilometres is the sixth smallest State of the world. Out of this 
only 14 square kilometres is available for settlemen t and business purposes. Liechtenstein consists of 
eleven municipalities. The capital Vaduz, the second la rgest municipality has “only” 5’005 residents. 
In the largest municipality live 5’639 persons. For the Government and the Liechtenstein population 
it is of great importance and a clear policy to p reserve the rural character of the country and not to 
develop into a city state. The objective of the ac t on acquiring real estate in Liechtenstein is to 
preserve land and property for the use of their owners  and future generations in order to guarantee a 
wide and socially acceptable dispersal of the prop erty.  As prices for land and property are already 
very high, further pressure on the demand side w ould make it even more difficult, if not impossible, 
for the resident population to acquire property. Thus, an authorization for the acquisition of real 
estate is granted only if an actual or proven requi rement for living or business purposes is given, this 
indifferently for nationals and non-nationals. The exclusion of non-residents (including Liechtenstein nationals living abroad) to acquire real estate in Liechtenstein  and the requirement of a certain 
period of residence in Liechtenstein are two measures in support of these policy goals.  
 
 WT/TPR/M/141/Add.1 
Page 101 
 
 
 Part IV. Trade Policies by Sect or, (9) Tourism, Paragraph 164:  
 
15. The report states that with respect to Liechte nstein, its tourism legisl ation has subsequently 
been revised. Grateful information on new legisla tion. Alternatively, a web link will be welcome.  
 
Answer: 
Due to an inaccurate formulation the Liechtenstein  Constitutional Court abrogated an article in the 
law on tourism, which defined the amount of the yearl y duty, tourism related corporations had to pay. 
Subsequently the government set up a new regulation. With this regulation the state will take over a part of the personnel and administrative costs of the 
Liechtenstein Tourism Board up to the amount of  CHF 800’000 in the year 2004 and CHF 700’000 in 
the year 2005. It is the aim to reduce the state’ s share by increasing the degree of self financing. 
Therefore the Liechtenstein Tourism Board will be oblig ed to finance its costs in future by acting as a 
private sector enterprise. Another change became necessary in the system of obligatory registration of overnight stays by the 
police. Since its introduction in 1971 the enforcement  of this registration duty proved to be to 
cumbersome. Neither were the respec tive forms filled in correctly nor were they handed over to the 
police in time. Therefore a new pro cedure was created  and the police were set in charge by directive 
to enforce it. The changes in the law on tourism came into eff ect 12 November 2004. The Liechtenstein Toursim Act 
can be found in the Liechtenstein Law Gazette und er the number No 166/2000. The Liechtenstein Law 
Gazette is publicly available under www.gesetze.li. 
 
COSTA RICA  (3) Medidas que afectan directamente a las exportaciones 
 
1. En la página 74, párrafo 127, se i ndica que en Liechtenstein no existen “ export-processing 
zones ” ni “ free ports ”, a diferencia de Suiza en donde existe cerca de 30 free ports.  ¿Qué tipo de 
beneficios o incentivos otorga el gobierno  de Liechtenstein al sector exportador? 
 
Anwer: 
The Liechtenstein Government does not provide any assistance to exporters. 
 
(10) Servicios Profesionales 
 
2. ¿Cuáles son los requisitos que  deben cumplir los extranjeros para ejercer una profesión en 
Suiza y Liechtenstein que no deben cumplir los nacionales? 
 
Answer: 
The conditions and requirements under which non-nati onals have access to pr ofessional services in 
Liechtenstein are explained on the pages 135, 1 38 and 140 of the Report by the Secretariat 
(WT/TPR/S/141) (English version) . 
 
EUROPEAN COMMUNITIES 
 
Financial services  
Referring to page 146, Point IV.220, of the report prepared by the WTO secretariat:  
Could Liechtenstein
 comment on the likely effects of the Savings Taxation Agreement with the 
European Union that has been signed on 7 December 2004? 
 WT/TPR/M/141/Add.1 
Page 102  
 
Answer: 
This Agreement has just been signed on 7
th December 2004.  As it is a complex agreement, it is 
difficult to assess its effects at this stage.  What can be said is that the increase in the number of 
clients of financial service operators in Liechtenstein  has clearly diminished in the last years.  
Financial centers outside Europe seem to profit from  stricter rules and might do so more after the 
entry into force of the regulations on savings taxati on in Europe.  The Liechtenstein authorities are, in 
any case, confident, that the Agreement on Savi ngs Taxation will fulfill th e aim of avoiding the 
circumvention of the EU savings taxation ru les by shifting capital to Liechtenstein. 
The European Economic Area (EEA) 
In the report prepared by the WTO secretariat, Poin t II.23 (p.27-28): In addition to the explanations 
given in Box II.1 could Liechtenstein and Switzerland  explain the procedures for establishing 
differences in technical regulations, in order to ju stify the application of the Market control and 
Surveillance Mechanism. 
Answer: 
As explained in the text in Box II.1, the MCSM  applies to professional traders for products imported 
from an EEA country into Liechtenstein for which Swiss and EEA technical regulations are different 
and which, therefore, could not be marketed “tel que l” in Switzerland. In practical terms, only few 
product groups are concerned, e.g. foodstuffs, chemic als (mainly for use in construction) or medicinal 
products. The selection procedure for imports on which the MCSM is applied works as follows: The 
Liechtenstein Office for Customs Affairs and th e Swiss Customs Administration have together 
established an exhaustive list of all chapters and ta riff headings (HS heading s) covering products 
possibly subject to the MCSM. The Swiss Customs Administration reports all imports containing products covered by this list to the Liechtenstein Office for Customs Affairs by sending a copy of the 
import declaration (95 % electronically). The info rmation received by the Liechtenstein Office for 
Customs Affairs is then further and in much de tail scrutinised electronically (electronic selection 
programme) based on a number of well defined sel ection criteria. Any product possibly falling under 
the MCSM is singled out resulting in a relatively high number of cases. For reasons of security these 
cases are followed up with the importers through the competent Liechtenstein Offices (e.g. Office of 
Food Inspection, Office of Environmental Protectio n). But finally, only very few of these cases call for 
action, i.e. to ascertain that the imported product is  fully consumed in Liech tenstein, or reexported 
into the EEA or in the case of a possible full or  partial use in or export to Switzerland to guarantee 
that the product fulfills all requirements  for its marketability in Switzerland. 
In the Government report prepared by Switzerland and Liechtenstein further information is given 
concerning Liechtenstein's assessment
 of the linkage between ec onomic life and the harmonious 
relationship between employers and employees (page 34).  Does Liechtenstein
 feel that the mutually reinforcing economic and social policies domestically have 
also had an impact on its external and trade policies? 
Answer: 
Liechtenstein is not aware of any im pact on its external and trade policies. WT/TPR/M/141/Add.1 
Page 103 
 
 
 JAPAN 
 Report by Liechtenstein (WT/TPR/G/141)  
II. TRADE AND ECONOMIC POLICY ENVIRONMENT Liberalization of electricity and gas sectors
 (p.29, para.3) 
  The Report by Liechtenstein states in page 29, pa ragraph 3 that first liberalization steps towards 
privatization of the electricity and gas sectors have been approved by the Parliament. 
Please indicate an outline of liberalization steps towards privatization of the electricity and gas 
sectors. 
 
Answer:  In accordance with the respective EU-Directives, Liechtenstein has enacted in 2002 respectively 2003 
two acts to implement the liberalisation of the elec tricity and gas market (Liechtenstein Law Gazette 
No 144/2002 (Act on the electricity market) and Liechtenstein Law Gazette No 218/2003 (Act on the gas market)). In a first step the electricity ma rket has been liberalized in 2002 for industries and large consumers, 
whose annual energy consumption exceeds 3 GWh. In  2005 in a second step, the electricity market 
will be liberalized for all consumers. According to the electricity market act, a regulatory authority 
supervises electricity prices, effective competiti on and the efficient functioning of the market.  
By 2003, Liechtenstein has liberalized 35% of the natural gas market; since that time, consumers of 
more than 10 GWh per year can profit from the li beralization. By 2007, the gas market will be 
liberalized for all consumers. The Liechtenstein Government  has designated a regulatory authority 
as the body responsible for the supervision of the natural gas market and, for ensuring non-
discrimination, effective competition and the efficient functioning of the market. 
 KOREA  (page 123, para. 113) 
 
The Secretariat reports that the Liechtenstein Government has limited the maximum number of mobile telephone service suppliers to four , but three companies are in operation. 
Why are there only three companies in operation?   
 
Answer: 
Owing to limited availability of frequency resour ces, the Liechtenstein Government has limited the 
maximum number of mobile telephone service suppliers to four. As of today four companies are in 
operation: Swisscom Mobile AG, Orange (Liechtenste in) AG, Tele2 AG and mobilcom (Liechtenstein) 
AG. Due to the geographic situation and the size of the country people living in Liechtenstein also buy 
mobile telephone services directly in Austria and Switzerland. 
 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  (p.143, paragraph 206; p.145, paragraph 214) 
 6.  According to paragraphs 206 and 214, the est ablishment of all bran ches, subsidiaries or 
agencies of foreign banks in Switzerland/Liechtenstein requires a licence by the SFBC/FSA. We would appreciate having a detailed description of the substantive and procedural requirements for 
obtaining approval from SFBC/FSA. 
  WT/TPR/M/141/Add.1 
Page 104  
 
Answer: 
The licensing requirements and the required licensi ng documentation are listed below. A formal 
licence application has to be filed. After all the necessary documentation has been submitted to the 
FSA, every aspect of these requirements is examined in detail and is discussed in following meetings 
with the respective management of the applying bank. 
 
Requirements to obtain a license for the taking up and pursuit  of banking activities in the Principality of Liechtenstein 
Law / Art. Title Requirements 
BA 18 Legal Form and Company Domicile • public company limited by shares. In justified cases the Government may 
admit exceptions 
• the domicile and the principal administrative office shall be situated in 
Liechtenstein 
BA 24 Share Capital • the share capital of a bank shall amount to at least ten million Swiss 
Francs, that of a finance company to at least two million Swiss francs; 
• share capital shall be fully paid up; 
• the shareholders holding a qualified interest (10% and more) shall meet the 
requirements necessary to guarantee a solid and prudent management of the bank or finance company 
BA 19 Guarantee of Impeccable Business Operation • the persons entrusted with the administration and business management of 
a bank shall at all times guarantee impeccable business operation both from a professional and a personal point of view. 
BO 29 Capabilities and Skills • the persons intended to serve as members of the board of directors, head of 
the internal audit authority, and members of the management board shall 
be sufficiently qualified for the tasks to be assigned to them on account of their training or former career. 
• the persons intended for such offices shall be able to fulfil their tasks 
within the bank or finance company in an impeccable way, even in 
consideration of their other duties and their places of residence. 
BO 30 Reputation • the persons intended for such offices shall enjoy a good reputation as 
business persons. 
BA 20 Incompatibility, Close Relations • the persons entrusted with the administration and business management of 
a bank or finance company may not be members of the Government, the Financial Services Authority or the Banking Commission 
• orderly supervision over banks or finance companies may not be 
obstructed by legal or administrative provisions of a non-member state or by difficulties in their application to which natural or legal persons are subject who or which are closely related to the bank or finance company 
BA 21 Business Area • the statutes and by-laws shall precisely define the factual and geographical 
business area of the bank or finance company. 
• Non-banking businesses shall be expressly mentioned in the statutes. 
• The statutes and by-laws require the consent of the Financial Services 
Authority in order to be valid. 
BA 22 Organization • Banks and finance companies shall be organized in accordance with their 
business areas. 
• banks require a board of directors, which is in charge of the direction of the 
management, supervision and control, 
• a management board, which consists of at least two members who perform 
their activities on joint responsibility and who may not simultaneously be 
members of the board of directors, and  
• internal auditors, who report directly to the board of directors (exceptions 
Art. 33 BO); 
• the distribution of functions between the board of directors and the 
management board shall guarantee a proper supervision of the management; 
BO 27e Data processing abroad • Outsourcing of data processing to a foreign country is only admissible if all 
legal requirements are fulfilled (see BO 27e) 
BO 31 Statutes and Business Regulation • the contents of the statutes shall be subject to Art. 279 of the Persons and 
Companies Act  
• they shall contain also and in particular a clear description of the objective 
and geographic areas of business regularly covered by the activities of the bank 
• the business regulations shall determine the organization as well as the 
principles of the business activities and the financial conduct of the bank;  
• the business regulations shall contain in particular the tasks and spheres of 
competence of the board of directors, the management board, and the internal audit authority; regulations on competencies and provisions on the limitation 
of risks in respect of the most important areas of business; provisions on 
transactions by corporate bodies and personnel 
 (cont'd) WT/TPR/M/141/Add.1 
Page 105 
 
 
 Law / Art. Title Requirements 
BO 32 Board of Directors • the board of directors shall consist of at least three member 
BA 23 Tasks of the Board of Directors • the board of directors shall be in charge of the direction of the 
management, supervision and control of the bank or finance company 
• determination of the organization and to give the required instructions 
• determination of the details of the accounting system, of financial control 
and financial planning, if and as far as this is required by the type and scope of the business activities 
• appointment and dismissal of the persons entrusted with the management 
and representation; 
• supervision of the persons entrusted with the management, also with 
reference to the observation of the legal provisions, statutes and bylaws, 
and the economic development of the undertaking; 
• compilation the business report and to approve the interim accounts as well 
as the preparation of the shareholders’ meeting and the implementation of 
its resolutions 
BA 25 Residence • at least one member each of the board of directors and the management 
board shall be resident in Liechtenstein and equipped with a power of attorney that suffices to represent the bank or finance company vis-à-vis 
administrative authorities and courts of law 
BA 15 Duty to Obtain a License • Banks require a license by the Government in order to commence their 
business activities 
• if a bank forms a part of a foreign group working in the financial sector, 
the group has to be subject to a consolidated supervision comparable with 
the supervision in Liechtenstein;  
• No objections by the supervising authority of the country of origin to the 
establishment of a subsidiary 
BA 17 General Prerequisites and Procedures • the Financial Services Authority shall consult the competent authorities of 
the respective member state of the European Economic Area 
BA 16 Company Names • Designations which lead to the assumption of business activities as a bank 
may be used in company names, in the designation of the business objects 
and in business advertising only for undertakings which have obtained a license as a bank. 
• Banks, finance companies and investment firms domiciled abroad may use 
their company names in Liechtenstein subject to the provisions of Para 1 
above. In the event that there is a danger of confusion, an explanatory supplement may be required 
• Banks may use the names of their parent companies in their own company 
names only if such parent company exercises a controlling influence due to 
a majority share held. 
• in the event that essential parts of the names of a foreign bank are used in 
the company name, a characteristic supplement shall be used which makes 
it clear that the company concerned is a Liechtenstein subsidiary of a certain foreign bank. 
• Banks under a controlling foreign influence may not indicate or pretend the 
existence of a Liechtenstein character in their company names 
• the company name may not be misleading, in particular it may not cause 
any false assumptions in respect of its scope of activities 
 
Necessary documentation in ord er to obtain a banking license  
(License applications have to be submitted in septuplicate.) 
Law / Art. Title Requirements 
BA 19 
BO 29/30 Guarantee for a sound management Information about the persons entrusted with the administration 
and business management of a bank as well as the head of the internal audit Job reference 
• References with respect to formation and professional career 
• Curriculum Vitae 
• Extract of the penal record 
• Domicile 
• Letters of reference 
• Information about pending civil court or administrative 
proceedings 
BA 24 Share capital Information about shareholders holding a qualified interest (10% 
and more): 
• Extract of the Register, By-laws, business regulation, business 
report, audit report etc. with regard to legal persons 
• Curriculum vitae, extract of penal record, Information about 
pending civil court or administrative proceedings with regard 
to natural persons 
BA 15 Foreign supervision Proof that the group is subject to a consolidated supervision 
comparable with the supervision in Liechtenstein; 
 (cont'd)WT/TPR/M/141/Add.1 
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Law / Art. Title Requirements 
BO 28 Application Documents Required documents with regard to the capital: 
• origin of capital 
• substantial ownership structure in respect of the share capital 
• form of payment of share capital 
Further documents: 
• explanatory statement with respect to taking up of business 
• draft of bylaws 
• draft of business regulation 
• detailed description of organization 
• description of IT-system including proof of compliance with 
Art. 27e BO 
• remuneration of personnel 
• Job description/ specification 
• proof of impeccable business activities of the members of the 
board of directors, management board and internal audit 
• Budget for first three years 
• Acceptance declaration of audit company, head of the 
respective audit, leading auditor 
• Declaration that audit company agrees with draft of bylaws, 
business regulation 
• Detailed statement of audit company with regard to projected 
organization (incl. IT-system and internal audit) 
• Marketing concept 
 
Further documents may be requested. 
BA  Law of 21 October 1992 on Banks a nd Finance Companies (Banking Act). 
BO  Ordinance Implementing the Law on Banks  and Finance Companies (Bank Ordinance). 
 
(p.144, paragraph 213) 
 
7.  The minimum required fully-paid-up capital is Sw F 10 million for banks in Liechtenstein, 
although the government deems that figure insufficie nt and requires Sw F 20 million in practice. 
Could we please have an explanation of the conditions  to which this additional requirement applies? 
 
Answer: 
In order to prevent problems which applying banks c ould face during their start-up phase, in recent 
years the Government requires Sw F 20 million. This  capital requirement is applied to every bank 
submitting an application for a banking licence in Liechtenstein. There are no exceptions. 
 
MEXICO  Answer: Mexico has raised some questi ons  in the field standards and other technical requirements and 
sanitary and phytosanitary measures not only with  regard to Switzerland but also with regard to 
Liechtenstein. Due to the customs union treaty  between Liechtenstein and Switzerland the answers 
provided by Switzerland in these fields are also valid for Liechtenstein. 
 
IV. POLÍTICAS COMERCIALES, POR SECTORES / 10) SERVICIOS PROFESIONALES / 
ii) Servicios de contabilidad y auditoría. 
 21. En el caso de Liechtenstein, el párrafo 186 indica que el otorgamiento de permisos y los 
requisitos para ejercer la profesión de auditor s on más flexibles. Sobre el particular, ¿podría 
Liechtenstein indicar qué requisitos solicita para el ejercicio de las profesiones de contabilidad y 
teneduría de libros?  WT/TPR/M/141/Add.1 
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 Answer: 
Only the auditing has to be done by a licensed person or company according to the Law of 9 
December 1992 on Auditors and Audit Companies, LLG 1993, No. 44. The exclusive provision of accountancy services is not subject to licensing requi rements according to this law, but requires a 
permit granted by the Office for Economic Affairs as described on page 40 of the report of the 
Secretariat. The professional qualifications requi red for accountancy servi ces are a commercial 
education and 3 years of practical experience or 12 years of practical experience in the area of 
accountancy and bookkeeping.   UNITED STATES OF AMERICA 
 Measures Affecting Production and Trade – State Owned Enterprises, Privatization, and State Trading
 
 9. Table III.5 on page 79 of the Secretariat Re port lists state enterprises of Switzerland and 
Liechtenstein that have some exclus ivity rights in the customs union.   
A) What annual reports must these entities file to validate that their operations are on a 
commercial basis?  If reports are filed, what Sw iss or Liechtenstein government agency is the 
recipient? B) If reports are filed, are they available to priv ate shareholders, if any, of the listed entities, the 
public, and other WTO Members?  Are the reports revi ewed by independent auditors?  Is so, are their 
findings made public? 
 
Answer: 
The annual reports as well as the reports by the auditors mentioned below can be ordered at the 
Chancellery of the Liechtenstein Government. 
• The state is the owner of the "Liechtensteinische Gasversorgung" (LGV), which is an 
independent institution under public law. The Gove rnment informs the Parliament about the annual 
business report as well as the accounting, which ne eds the approval of the Parliament. The audit is 
made by an external auditing firm by the order of the Government . The supervisory board is build up 
with 3 people which are elected by Parliament . This board especially takes an eye on the annual 
business report, the accounting as well as differen t reports and informs the Government annually.  
• The "Liechtensteinische Kraftw erke" (LKW) is an independent institution under public law as 
the "Liechtensteinische Gasversor gung". However, the supervisory board is build up with 3 and 2 
additional people, which are elected by parliame nt. Moreover the audit is made by an external 
recognised firm by the order of the supervisory boar d. The duty to inform the Government and the 
Parliament is similar to the LGV  
• The “Liechtenstein TeleNet AG” (LTN) is organi zed as a limited company and has to fulfil 
the requirements of the Liechtenstein Company Act.  The annual report as well as the report of the 
external auditing firm are being delivered to all s hareholders. A summary of the annual report can be 
found under www.ltn.li.  
• The “Liechtenstein Post AG” is organized as a limited company under the Post Act. The 
annual reports and a statement of the external auditi ng firm are being presented to the Parliament for 
approval. The annual report of the Liechtenstein Post AG is available under  www.post.li.  
• The “Liechtenstein Bus Anstalt“ (LBA) is an independent institution under public law. The 
annual reports and the statement of the external auditing firm are being presented to thePparliament 
for approval.  
• The owner of the „Gruppenwasserver sorgung Liechtensteiner Oberland“ and 
„Wasserversorgung Liechtensteiner Unterland“ (Dri nking Water) are the eleven municipalities of 
Liechtenstein. The annual report and  the report of the auditor is being delivered to the municipalities 
and the Government.  
 WT/TPR/M/141/Add.1 
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Measures Affecting Production and Trade – Intellectual Property Rights – Plant Varieties
 
 11. With respect to paragraph 189, page 88 of the Secretariat Report, how have Switzerland and 
Liechtenstein implemented TRIPs Article 27(3)  regarding protection of plant varieties? 
 
Answer : 
Liechtenstein is in the process of establishing a syst em for the protection of plant varieties which 
would enable Liechtenstein to accede to the 1991 Ac t of the UPOV Convention. Bearing in mind that 
the Swiss patent law which does not offer protection for plant varieties is applicable in Liechtenstein, 
the Liechtenstein protection system will also follow the sui generis approach. 
At present, plant varieties rights granted abroad would be recognized in Liechtenstein due to the 
TRIPS obligation to protect plant varieties. No case of alleged infringement has  been reported so far. 
It is not yet possible to obtain protection for a plant variety by a national procedure. Protection of plant varieties is virtually irrelevant in Liechtens tein since there are no economic activities in this 
regard. 
 
Measures Affecting Production and Trade – Intellectual Property Rights – Protection of Undisclosed 
Information  
 12. Regarding paragraph 191, page 88 of the Secretariat Report, how have Switzerland and 
Liechtenstein implemented TRIPs Article 39(3) regarding protection of  data against unfair 
commercial use? 
 
Answer: Protection of undisclosed information is granted by several Liechtenstein laws to cover all areas 
where this protection is required, including substant ive civil law (contract law, unfair competition law 
etc) and substantive administrative provisions (e.g . obligations of secrecy for civil servants) with 
procedural administrative provisions and criminal sanctions, in particular s anctions against criminal 
actions in the field of trade and commercial secrets and relating to the obligations of civil servants 
and certain professions (e.g. lawyers, medical personnel)  to keep information obtained in the context 
of their information secret.  
Regarding the protection of data in the field  of marketing approval for pharmaceutical or 
agricultural chemical products (in particular therapeutic goods, phytosanitary products and animal 
feeding) please refer to the answer of Switzerland.   The Swiss Federal Therapeutic Goods Act (RS 
812.21) as well as the related ordinances as well as  other cited Acts are applicable in Liechtenstein 
according to the Customs Union Treaty and a special  bilateral agreement relating to the application 
of the Swiss  legislation on therapeutic goods  in Liechtenstein (see Chapter IV, Paragraph 55). 
 
 
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