WORLD TRADE  
ORGANIZATION  G/SCM/N/186/CHE 
25 June 2009 
 (09-3108) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
SWITZERLAND 
  
 The following notification, dated 15 June 2009, is being circulated at the request of the 
Delegation of Switzerland.    
_______________ 
 G/SCM/N/186/CHE 
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  TABLE OF CONTENTS 
 
  Page
 
 
PART ONE:  INDUSTRY............................................................................................................ .........3  
I. ASSISTANCE FOR ZONES WHICH ARE UNDER ECONOMIC RENEWAL..............3  
II. ASSISTANCE FOR MOUNTAIN AND RURAL AREAS ...................................................4  
III. ASSISTANCE FOR FOREST RY ACTIVITIES...................................................................5  
PART TWO:  AGRICULTURE......................................................................................................... ..7 
I. MILK AND DAIRY PRODUCTS...........................................................................................7  
A. BUTTER ............................................................................................................................... ........7  
B. SKIMMED MILK AND POWDER ....................................................................................................8  
C. CHEESE FOR DOMESTIC CONSUMPTION ......................................................................................9  
D. CHEESE FOR EXPORT ..................................................................................................................9  
E. OTHER DAIRY PRODUCTS .........................................................................................................10  
II. BREEDING AND DAIRY CATTLE ....................................................................................12  
III. HORSES ......................................................................................................................... .........13  
IV. WOOL........................................................................................................................... ...........14  
V. EGGS ........................................................................................................................... ............15  
VI. PROTEIN AND FIBRE PLANTS.........................................................................................16  
VII. OIL-SEEDS ...................................................................................................................... .......17  
VIII.  SUGAR BEET..................................................................................................................... ....18  
IX. POTATOES....................................................................................................................... ......19  
X. FRUIT.......................................................................................................................... ............21  
XI. PROCESSED AGRICULTURAL PRODUCTS..................................................................23  
 
 
     
 
    
  G/SCM/N/186/CHE 
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  PART ONE:  INDUSTRY 
I. ASSISTANCE FOR ZONES WHICH ARE UNDER ECONOMIC RENEWAL 
1. Title of the programme  
  Assistance for economic areas that are under economic renewal (until 31 December 2007).   
 Tax relief in application of the New Regional Policy (since 1 January 2008).   
 2. Period covered
 
  2007-2008.   
 
3. General goal and/or purpose of the subsidy
 
  Support of projects of private enterprises aimed at creating and maintaining jobs in areas that are under economic renewal.   
 
4. Background and authority
 
  Until 31.12.2007
 
 Federal law of 6 October 1995 (sta te on 7 November 2006;  SR 951.931).   
 Federal ordinance of 10 June 1996 (sta te on 7 November 2006;  SR 951.931).   
 Federal ordinance of 12 June 2002 (sta te on 2 July 2002;  SR 951.931.1).   
  Since 01.01.2008
 
 Art. 12 of the Federal law on regional policy of 6 October 2006 (state on 1 January 2008).   
 Ordinance of 28 November 2007 about tax relief in application of regional policy (state on 
1 January 2008).   
 Ordinance of 28 November 2007 on developm ent areas (state on 1 January 2008).   
 5. Form of the subsidy
 
  Until 31.12. 2007
 
 
 Financial assistance is allocated in the form of:    a) Tax reliefs on federal taxes (partial or full);    b) Guarantees for investment credits;    c) Subsidies for projects or institutions between companies. 
 
 Since 01.01.2008
 
  Only federal tax reliefs are granted.    6. How the subsidy is granted and to whom
 
 
 Financial support is granted to manufacturing companies and to services companies with activities closely linked to the manufacturing process.  The amount of the investment credit taken into 
consideration for the grants is at maximum one thir d of the investment project costs (hard assets and 
start up costs).  The project has to be innovative:  the product and the manufacturing process have to 
                                                     
 
1 SR = Systematic Registry of Fe deral Law, www.bk.admin.ch.   G/SCM/N/186/CHE 
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  be technologically up-to-date and give the company an increased ability to compete through a national 
and international market presence.     The financial subsidies for projects or institu tions between firms are granted in proportion of 
the importance of the project for the regional econom y.  It rises to the maximum with CHF 600,000 
(Confederation + Canton) per year and project.   
  Areas considered to be under ec onomic renewal are those where:   
  (a) A particular need for structural adaptati on exists in consequence of an evolution of 
the population lower than that of the whole country, a level of incomes definitely 
lower than the national average and a proportion of industrial activities higher than the average;   
 (b) The average unemployment ex ceeds the national average;   
 (c) The trend in the number of jobs has be en markedly less favourable than the national 
average;  or 
 (d) There are clear indications that at leas t one of the situations  mentioned above will 
occur shortly, in particular that the pros pects for the most important sectors of the 
economy and for the largest firms are unfavourable.   
 7. Unit amount of the subsidy or, where this is  not possible, total amount or budgetized annual 
amount of the subsidy  
  The Confederation's total share of the losses on guaranteed loans was CHF 1.2 million 
in 2007 and CHF 2.5 million in 2008, with federal commitments as a whole amounting to CHF 54.5 million at year end 2007 and CHF 45.4 million at year end 2008.   
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy
 
  The assistance programme for development areas remains in force indefinitely.   
  The maximum duration of financial assistance was eight years for guarantees and 10 years for 
tax relief.  The subsidies for projects and institutio ns between companies are considered annually.   
  Since 1 January 2008 there are only tax reliefs granted for a maximum of 10 years.    9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
 The effect of the assistance programme on tr ade is negligible, if not non-existent.   
 
II. ASSISTANCE FOR MOUNTAIN AND RURAL AREAS 
1. Title of the programme  
 
 Surety and contributions to interest- servicing in mountain and rural areas.   
 2. Period covered
 
  2007 and 2008.    G/SCM/N/186/CHE 
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  3. General goal and/or purpose of the subsidy  
  The programme is aimed at providing long and medium term capita l loans to small and 
medium-sized establishments situated in mountain and rural areas.    
4. Background and authority
 
  This financial assistance is based on the Fe deral Law encouraging credit guarantees and on 
loan service contributions in mountain and rural areas (SR 901.2) of 25 June 1976.  These areas are defined in the Federal ordinance of 28 November 2007 concerning regional policy (SR 901.021).   
 
5. Form of the subsidy
 
  The Confederation encourages the grant of sureties by giving subsidies to the Swiss 
Guarantee Cooperative for the Arts and Crafts and by making interest-servicing contributions.  The 
subsidy does not relate to a specific product or sector.   
 6. How the subsidy is granted and to whom
 
  The programme applies to sureties and interest-servicing contributions for small- and medium-sized enterprises which are profitable or likely to develop, whether exis ting or to be created.  
Payments are made only to establishments, which ar e not already supported by the Confederation in 
some other way.    7. Unit amount of the subsidy or, where this is  not possible, total amount or budgetized annual 
amount of the subsidy  
 
 The Confederation's total share of the losses on guaranteed loans was CHF 0.3 million 
in 2007 and CHF 0.5 million in 2008, with federal commitments as a whole amounting to CHF 26.1 million at year end 2007 and CHF 20.4 million at year end 2008.     The contributions to interest servicing paid out totalled CHF 0.2 million in 2007 and 
CHF 0.2 million in 2008.    
 8. Duration of the subsidy and/or any other deadline connected with the subsidy
 
  The assistance programme for mountain and rura l areas remains in force indefinitely.   
 
9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
  The effect of the subsidy on trade is insignificant, if not non-existent.    
III. ASSISTANCE FOR FORESTRY ACTIVITIES 
1. Title of the programme
 
  Assistance for Forestry Activities (until 2007).    Reorganisation of Financial Equalisation (NFA, from 2008).   
 
2. Period covered
 
  2007-2008.    G/SCM/N/186/CHE 
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  3. General goal and/or purpose of the subsidy
 
  Compensation to forest owners for services rendered to the public.    4. Background and authority
 
 
 Federal Law on Forests (1991) [SR 921].    Federal Ordinance on Forests [SR 921.01].    5. Form of the subsidy
 
 
 Assistance was allocated until 2007 in the form of Indemnities and Financial assistance within 
individual projects.  In 2008 an important change  has taken place with the reorganization of the 
financial adjustment and the division of respons ibilities between the Confederation and the cantons, 
called Reorganisation of Fi nancial Equalisation (NFA).  The new system also concerns the assistance 
in the field of forestry.   
 6. How the subsidy is granted and to whom
 
  Until 2007 the policy of assisting forestry activities was provided within individual projects with two types of assistance, both intended as incentives:   
 
• Indemnities were paid for the performance of  tasks required by law (e.g. measures for 
protection against natural hazards, minimum te nding in protection of forests).  Up to 
70 per cent of the costs incurred by such meas ures were paid by the Confederation.   
 
• Financial assistance was provided if the forest owner chose to carry out certain measures such 
as tending and hauling, if the cost of these measures were made particularly onerous by 
restriction linked to nature protection.  In this  context, up to 50 per cent of the costs incurred 
was covered by the Confederation.  Financial aid was also offered for the improvement of 
management condition (e.g . building of forest roads and other structural improvement).   
  In 2008 the Reorganisation of Financial Equalisation (NFA) was introduced by the 
Confederation.  On the implementation level indi vidual decisions on projects are to be replaced by 
four year long programs and flat rate budgets (2008- 2011) that are granted by the Confederation after 
cantonal proposals have been submitted.    7. Unit amount of the subsidy or, where this is  not possible, total amount or budgetized annual 
amount of the subsidy  
 
 In 2007, the assistance in the field of fo restry was CHF 149 million.  In 2008 the 
Confederation and the cantons have agreed to pr ograms which engages the Confederation on average 
with CHF 132 million a year (provisional amount).    
8. Duration of the subsidy and/or any other deadline connected with the subsidy
 
  The assistance until 2007 was attributed on a project base.  The duration per project was normally 5 years.  Starting 2008 four year long programs (2008-2011) replace the individual projects.    G/SCM/N/186/CHE 
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  9. Statistical data enabling the effect s of the subsidy on trade to be assessed  
 
The effect of the assistance programme on trade is negligible, if not non-existent (payments 
for environmental services like the maintenance of protection forests [e.g. mature trees cutting in 
protected forests to allow regeneration while youn g trees will be left in the forest where timber 
transport is difficult due to rugged conditi ons] or conservation of biodiversity).   
 
PART TWO:  AGRICULTURE 
I. MILK AND DAIRY PRODUCTS 
A. BUTTER  
1. Title of the subsidy programme  
  Contributions for butter.    2. Period covered
 
 
 2007-2008.    3. General goal and/or purpose of the subsidy
 
  In order to be competitive on the domestic mark et of all kinds of fat the commercialisation of 
certain varieties of butter is suppor ted by a subsidy per unit sold.   
 4. Background and authority
 
  a) Federal Law On Agriculture of 29 April 1998 (SR 910.1).   
 b) Federal ordinance of 7 December 1998 concerning measures of price support 
(SR 916.350.2:  Milk price support ordinance).   
 5. Form of the subsidy
 
  Subsidies consist of government-financed c ontributions for cooking butter and resolidified 
butter.  The total for these contributions amount s to CHF 28.9 million for 2007 and CHF 20.5 million 
for 2008.    6. How the subsidy is granted and to whom
 
 
The price-reduction contributions are granted to  manufacturers (amount per unit) and are paid 
monthly.     The Federal Office for Agriculture pays all these contributions.   G/SCM/N/186/CHE 
Page 8  
 
  7. Amount of the subsidy per unit
 
  Butter subsidies vary as follows according to packing (cooking butter) and utilisation (re-
solidified butter).    (CHF per kg) 
Year Choice butter Cooking butter Re-solidified 
butter 
01.01.2007 – 31.12.2007 -.-- 0.40 – 0.80 1.73 
01.01.2008 – 31.12.2008 -.-- 0.20 – 0.60 1.49 
  2007:  The average contribution granted is about CHF 0.91 per kg.    2008:  The average contribution granted is about CHF 0.63 per kg.   
 
8. Duration of the subsidy
 
  The contributions are not seasonally or otherwi se limited or differentiated.  The total amount 
paid concerns the accounting years.  Due to the ne w milk policy these contributions will be abolished 
from 1 January 2009 on.   
 9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Production, trade and consumption  
(in tonnes) 
 
Year Production Imports Consumption and exports 
incorporated in processed products 
2007 36'953 6'877 43'830 
2008 45'763 242 46'005 
 B. S
KIMMED MILK AND POWDER  
1. Title of the subsidy programme  
  Contributions for skimmed milk and skimmed milk powder.    2. Period covered
 
 
 2007-2008.    3. General goal and/or purpose of the subsidy
 
  Milk price support.   
 
4. Background and authority
 
  (a) Federal Law On Agriculture 29 April 1998 (SR 910.1).    (b) Federal ordinances of 7 December 1998 concerning measures of price support 
(SR 916.350.2:  Milk price support ordinance).    G/SCM/N/186/CHE 
 Page 9 
 
 
  5. Form of the subsidy  
  Subsidies consist of government-financed cont ributions for skimmed milk and skimmed milk 
powder.  The total for contributions amounts to CHF 30.1 million for 2007 and CHF 22.9 million 
for 2008.   
 
 The Federal Office for Agriculture pays all these contributions.    6. How the subsidy is granted and to whom
 
 
 The beneficiaries are breeders who use skimme d milk or manufacturers of special products 
such as acid casein, caseinates or milk substitutes and are paid monthly.   
 7. Amount of the subsidy per unit
 
 
 Skimmed milk:   
 01.01.2007 – 31.12.2007:  CHF 0.06 per kg.  01.01.2008 – 31.12.2008:  from CHF 0.06 to 0.04 per kg.     Skimmed milk powder:    01.01.2007 – 31.12.2007:  CHF 0.61 per kg.   
01.01.2008 – 31.12.2008:  CHF 0.61 per kg.   
 8. Duration of the subsidy
 
  The contributions are not seasonally or otherwi se limited or differentiated.  The total amount 
paid concerns the accounting year.  These contri butions are abolished from 1 January 2009 on.   
 9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Total production of processed skimmed milk and powder  
(in tonnes) 
 
Year Production of processed 
skimmed milk Production of processed skimmed 
milk powder 
2007 983'554 24'854 
2008 1'114'070 27'509 
 C. C
HEESE FOR DOMESTIC CONSUMPTION  
1. Title of the subsidy programme  
  This Special price reduction for some soft  and semi-hard cheeses was abolished in 2002 
(01.05.2002).    
D. C
HEESE FOR EXPORT  
1. Title of the subsidy programme  
  Export contribution for cheese.   G/SCM/N/186/CHE 
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  2. Period covered
 
  2007-2008.    3. General goal and/or purpose of the subsidy
 
 
 To enable the cheese manufacturer to pay a d ecent milk price to the farmer and at the same 
time to offer his cheese at a competitive price to the reseller.    4. Background and authority
 
 
 Agriculture Law of 29 April 1998 (SR 910.1).    Federal ordinances of 7 December 1998 concer ning measures of price support (SR 916.350.2:  
Milk price support ordinance).    
5. Form of the subsidy
 
  The subsidy consists of a specific contribution for each kilo of cheese so ld abroad.  The total 
for this contribution amounts to CHF 5.9 million for 2007 and CHF 5.3 million for 2008.     All these contributions are paid by th e Federal Office for Agriculture.   
 
6. How the subsidy is granted and to whom
 
  Subsidies are granted to the cheese traders as a price reduction per kg of exported cheese.   
 
7. Amount of the subsidy per unit
 
  01.01.2007 – 31.12.2007:  from CHF 0.40 to 0.70 per kg.    01.01.2008 – 31.12.2008:  from CHF 0.40 to 0.70 per kg.    8. Duration of the subsidy
 
 
 The accounting year.  These contributions w ill be abolished from 1 January 2009 on.   
 9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Total production and subsidised amounts  
(in tonnes) 
 
Year Total Production Of which subsidised for exports
2007 176'280 8'898 
2008 179'338 10'065 
 
E. OTHER DAIRY PRODUCTS  
1. Title of the subsidy programme  
  Export subsidy for other dairy products.    G/SCM/N/186/CHE 
 Page 11 
 
 
  2. Period covered  
  2007-2008.    3. General goal and/or purpose of the subsidy
 
 
 The subsidy is aimed at safeguarding traditional exports of other dairy products.  It is paid on 
the basis of the quantity of milk u sed to manufacture those products.   
 4. Background and authority
 
 
 (a) Agriculture Law of 29 April 1998 (SR 910.1).    (b) Federal ordinances of 7 December 1998 concerning measures of price support 
(SR 916.350.2:  Milk price support ordinance).   
 
5. Form of the subsidy
 
  Payment to exporters of other dairy products.   
 All these contributions are paid by th e Federal Office for Agriculture.   
 6. How the subsidy is granted and to whom
 
 
 Payment to exporters of other dairy products on the basis of the quantity of whole milk used 
to manufacture those products.  The total for this  contribution comes to CHF 6.9 million for 2007 and 
CHF 1.2 million for 2008.    
7. Amount of the subsidy per unit
 
  There is an export contribution of:    01.01.2007 – 31.12.2007:  CHF 0.16 per kg.    01.01.2008 – 31.12.2008:  CHF 0.11 per kg.    
 Per kg of milk that is used in manufacturing the following dairy products:   
 (a) Cream.    (b) Skimmed milk powder and milk powder.    (c) Yoghurt, flavoured or containing added fruit, nuts or cocoa.    (d) Other dairy products.   
 
8. Duration of the subsidy
 
  The accounting year.  These contri butions will be abolished from 1
 January 2009 on.   
 9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
 The following figures represent the subsidi sed amounts for the different products:   
 
 Product Tonnes 
Cream 2'294 
Skimmed milk powder and milk powder 4'837 
Yoghurt, flavoured or containing added fruit, nuts or 
cocoa 5'636 2007 
Other dairy products 497 G/SCM/N/186/CHE 
Page 12  
 
   
 Product Tonnes 
Cream 988 
Skimmed milk powder and milk powder 0 
Yoghurt, flavoured or containing added fruit, nuts or 
cocoa 6'814 2008 
Other dairy products 204 
 
II. BREEDING AND DAIRY CATTLE 
1. Title of the subsidy programme  
 
 Export subsidies.    2. Period covered
 
 
 2007-2008.   
 3. General goal and/or purpose of the subsidy
 
  The Federal Council takes measures to mainta in domestic production of breeding and dairy 
cattle in the mountain area.   
 
4. Background and authority
 
  Federal Law On Agriculture of 29 April 1998 (SR 910.1).    
5. Form of the subsidy
 
  Contributions (grants).    6. How the subsidy is granted and to whom
 
 
 Subsidies are granted in order to bring the pr ices of exported livestock into line with those 
charged in traditional export markets.  These c ontributions consist of a fixed base amount and a 
variable amount depending on the quality of the an imal;  they are paid up to a fixed maximum.   
 7. Amount of the subsidy per head
 
 
Total (in thousands of CHF) 
 2007 
Export subsidies 5'000 
 2008 
Export subsidies 5'000 
 
Per unit (as an average, CHF per livestock unit) 
 2007 
Export subsidies 1'100 
 2008 
Export subsidies 1'140 
  G/SCM/N/186/CHE 
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  8. Duration of the subsidy  
  Export subsidies have been applied since 1954.    9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
 The export bonuses have made it possible to main tain traditional exports of cattle, mainly in 
the interest of breeding in mountain areas.    
Production and exports of breeding and dairy cattle 
 
  (Head) 
Year Stock calves up to one year 
(breeding animals) Exports of heifers, cows  
and bulls 
2007 250'0002 4'477 
2008 250'0002 4'341 
 
 Switzerland imported 2'240 da iry cattle in 2007/2008.   
 
III. HORSES 
1. Title of the subsidy programme  
  Export subsidies.   
 
2. Period covered
 
  2007-2008.    
3. General goal and/or purpose of the subsidy
 
  The Federal Council takes measures designed to maintain domestic horse breeding for the 
needs of agriculture.  These measures apply to horses of all breeds born in Switzerland.   
 
4. Background and authority
 
  Agriculture Law of 29 April 1998 (SR 910.1).    5. Form of the subsidy
 
 
 A Federal financial export aid is paid to horse-breeders for exports of horses of the breeds 
encouraged by the Confederation.  Total e xport subsidies in 2007 amounted to CHF 550'000 and 
CHF 500'000 in 2008.    6. How the subsidy is granted and to whom
 
 
 The subsidy is granted to breeders who export.    7. Duration of the subsidy
 
  The subsidy has been in force since 1960.   G/SCM/N/186/CHE 
Page 14  
 
  8. Statistical data
 
 
Numbers and Trade2 
  (Head) 
Year Horse numbers Imports Exports 
2007 60'000 2'902 1'970 
2008 60'000 3'074 1'518 
 
 Most exports are not subsidised (subsid ies cover about 160 head per year).   
 
IV. WOOL 
1. Title of the subsidy programme  
 
 Purchase of domestic wool.    2. Period covered
 
 
 2007-2008.   
 3. General goal and/or purpose of the subsidy
 
  There are at present some 450,000 head of sheep , the great majority of which are in mountain 
areas.  The subsidy enables the Swiss wool indus try to purchase domestic wool, while at the same 
time it guarantees to producers a contribu tion to their production costs.   
 4. Background and authority
 
  Agriculture Law of 29 April 1998 (SR 910.1).   
 
5. Form of the subsidy
 
  2007/2008:  The Confederation makes an annu al contribution of CHF 0.6 million for the 
professional treatment of domestic sheep wool.   
 
6. How the subsidy is granted and to whom
 
  2007/2008:  The subsidy is granted by the Confed eration to recognized self help organisations 
of sheep owners and wool processors.  The contributio n is determined by kg of transformed wool.   
 
7. Amount of the subsidy per unit
 
 
Year Total 
(thousands of CHF) Per unit 
(CHF per tonne) 
2007 0.6 0.95 
2008 0.6 0.90 
 8. Duration of the subsidy
 
 
 The subsidy was introduced in 1962.  It is provided in two instalments per year.   
                                                      
2 Enumeration is carried out in April of each year.  Horses intended for slaugh ter are not included.    G/SCM/N/186/CHE 
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  9. Statistical data enabling the effect s of the subsidy on trade to be assessed  
 
Production and trade of wool 
(in tonnes) 
 
Year Production Imports Exports 
2007 652 925 590 
2008 650 982 535 
 
V. EGGS 
1. Title of the subsidy programme  
  Contributions.    2. Period covered
 
 
 2007-2008.    3. General goal and/or purpose of the subsidy
 
 
 The purpose of the subsidy is to promote the disposal of domestic eggs.   
 4. Background and authority
 
  Federal Law On Agriculture of 29 April 1998 (SR 910.1).   
 Federal Ordinance of 26 November 2003 c oncerning the egg market (SR 916.371:  
Egg ordinance).    5. Form of the subsidy
 
  Contributions (grants).   
 
6. How the subsidy is granted and to whom
 
  It can make grants for measures designed to facilitate the disposal of domestic eggs (crack eggs and price reductions).   
 
7. Amount of the subsidy
 
 
Year Total amount 
(millions of CHF) 
2007 1.7 
2008 1.5 
 8. Duration of the subsidy
 
  Payments are made usually on a monthly basis during a calendar year.   G/SCM/N/186/CHE 
Page 16  
 
  9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Production, trade and consumption of eggs in shell  
(millions of eggs) 
 
Year Production Imports Consumption 
2007 669 516 897 
2008 686 517 921 
 
 Exports are negligible.    
VI. PROTEIN AND FIBRE PLANTS 
1. Title of the subsidy programme
 
  Bonuses to promote the growing of  protein and fibre plants.   
 2. Period covered
 
 
 2007-2008.    3. General goal and/or purpose of the subsidy
 
  Growing premiums for protein and fibre plants  are one of the measures designed to safeguard 
producer income and food security.   
 4. Background and authority
 
  Agriculture Law of 29 April 1998 (SR 910.1).   
 
5. Form of the subsidy
 
  Payment to the producer (grant).    
6. How the subsidy is granted and to whom
 
  Crop bonuses proportionate to the area under cu ltivation are allocated to domestic producers 
of high-protein peas and field beans.     The bonuses are allocated annually in the Confederation budget.   
 
7. Amount of the subsidy per unit
 
  In 2007 and 2008 the following amounts were paid per hectare (in CHF):    
Field beans and high-protein peas 1'500 
2007 Fibre plant 2'000 
Field beans and high-protein peas 1'500 2008 Fibre plant 2'000 
 
 The growing bonuses per hectare were paid in regardless of surface area.    G/SCM/N/186/CHE 
 Page 17 
 
 
  8. Duration of the subsidy  
  The measure was introduced in 1951.    9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Production, trade and consumption 
(not allowing for fluctuations in stocks) 
 
Field beans, high-protein peas 
Year Production 
(thousands of tonnes) Imports 
(thousands of tonnes) Consumption 
(thousands of tonnes) 
2007 19 7 26 
2008 18 15 33 
 
VII. OIL-SEEDS 
1. Title of the subsidy programme  
  Bonuses to promote the growing of oilseeds and price support.   
 
2. Period covered
 
  2007-2008.    
3. General goal and/or purpose of the subsidy
 
  The measures taken to promote arable farm ing are aimed at keeping a minimum area under 
oil-seeds both for biological reasons linked to the need for a certain crop diversification and for 
reasons of food security.    
4. Background and authority
 
  Federal Law On Agriculture of 29 April 1998 (SR 910.1).    5. Form of the subsidy
 
 
 For oilseeds, there are three different types of subsidies:    (a) Payment to the producer (grant).    (b) Payment to the oil-processing plants for human consumption.    (c) Payment to the oil processing plants for technical use.    
6. How the subsidy is granted and to whom
 
  The following subsidies are granted for rapeseed, sunflower seed and soybeans:   
  Crop bonuses proportionate to the area under cultivation are allocated to domestic producers.   
 
 Since 2002, the performance contract between the Federal Office of Agriculture and the 
sector organisation "swissgranum" is in force.  The sector organisation is given a certain sum in order 
to maintain an appropriate pr oduction and processing of oilseeds.  This amount of money is 
administered independently, but in agreement with all partners.   G/SCM/N/186/CHE 
Page 18  
 
   The performance contract includes the processi ng for food purposes and technical use.  The 
support level for individual crops is adjusted to the market needs.     Since 2002, the allowance with in the performance contract is the limiting factor for domestic 
production and processing oilseeds.   
 
7. Annual amount of the subsidy
 
 
 Millions of CHF Support measures  2007 2008 
(a) Payment to the producer (1'500 CHF per 
hectare) Rapeseed, 
sunflower seed 
and soybeans 38.9 38.6 
(b+c) Performance contract sector organisation   4.2 4.3 
Total amount Oilseeds 43.1 42.9 
 
8. Statistical data enabling the effect s of the subsidy on trade to be assessed  
  The subsidy has made it possible to keep  a minimum area under oil-seed.  Domestic 
production is equivalent to 20-25 per cent of Swiss av erage consumption of vegetable oils and fats.   
 
Production and trade 
(in tonnes) 
 
Year  Production Import Oil exports 
Rapeseed 61'000 14'247 495 
Soya beans 2'584 38'149 140 2007 
Sunflower seed 13'000 14'372 1'580 
Rapeseed 58'800 11'444 1'184 
Soya beans 3'012 30'911 302 2008 
Sunflower seed 12'300 11'588 1'654 
 
VIII.  SUGAR BEET 
1. Title of the subsidy programme  
 
 Bonuses to promote the growing of sugar beet a nd transformation mandate for sugar factories.   
 2. Period covered
 
  2007-2008.   
 
3. General goal and/or purpose of the subsidy
 
  The two sugar factories are committed to produce at least 150'000 tons of sugar from domestic sugar beet.  In order to fulfil this manda te, they obtain a fixed allowance of the Federal 
Government.  In order to guarantee food security a subsidy to promote the growing of sugar beet was 
introduced in 2008 and will fully replace in 2009 the a llowance to the sugar factories.  The aim of this 
subsidy is to keep a minimum area of sugar beet  in the country to guarantee food security.    G/SCM/N/186/CHE 
 Page 19 
 
 
  4. Background and authority  
  Art. 54 of the Federal Law On Agricultural of 29 April 1998 (SR 910.1).    5. Form of the subsidy
 
 
 Fixed allowance for the production of sugar in  2007 and 2008.  Payment to the producer 
(grant) in 2008.    6. How the subsidy is granted and to whom
 
 
 The fixed allowance is paid in January by the Confederation, i.e. just after completion of the 
harvest and the processing in the sugar factories.  Crop bonuses are proportionate to the area under cultivation.  They are allocated to domestic producers of sugar beet which are used to produce sugar. 
To receive the grant, producers must have a written contract with a sugar factory.   
 
7. Amount of the subsidy per unit
 
 
Year Support measures Total (thousands 
of CHF) CHF per 100 kg. of 
domestic refined sugar
2007 Allowance to the sugar factories 
Payment to the producer (grant) Total 26'000 
0 
26'000 10.36 
0 
10.36 
2008 Allowance to the sugar factories 
Payment to the producer (grant) 
Total 15'000 
16'751 
31'751 5.97 
6.67 
12.64 
 8. Duration of the subsidy
 
 
 The fixed allowance to the sugar factori es was paid until the sugar year 2008.   
 9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Production and trade of sugar  
(in tonnes) 
 
Year Production Imports3 Exports4 
2007 250'857 305'501 2'319 
2008 251'238 232'389 3'546 
 
IX. POTATOES 
1. Title of the subsidy programme  
 
 Price support.   
                                                      
3 Customs tariff headings:  1701.1100/1200/9100/9900/9991/9999.   
4 Id.   G/SCM/N/186/CHE 
Page 20  
 
  2. Period covered
 
  2007-2008.    3. General goal and/or purpose of the subsidy
 
 
 The potato culture must be maintained to ensure food security.     At the time of good climatic conditions, overs upply negatively impacts producers' revenues.  
In this case, the subsidies are used to promote the use of potatoes for human consumption or feed.   
 
4. Background and authority
 
  Agriculture Law of 29 April 1998 (SR 910.1).    
5. Form of the subsidy
 
  The subsidies take the following forms:     Use of potatoes:  subsidies for feed purpo ses (fresh potatoes), storage of table potatoes, 
transformation (dehydration) into feed products, as well as with export of seed of potatoes and of 
different potato products.   
 6. How the subsidy is granted and to whom
 
  The types of subsidies are the following:   
 
 The Confederation mandates the interested or ganizations to carry out development measures 
for potatoes, which cannot be sold on the market  and grants subsidies for that purpose.  The 
Confederation takes other measures to ensure full use of the potato harvest.  The subsidies and the 
other measures must aim at the adaptation of th e potatoes production to the market potential.   
 
Subsidies allocated for potatoes 
 
Year  Millions CHF CHF / tons 
1. Mandate for the use of potatoes 
(according to the budget) 17.5 370 
2. Mandate for the use of seed potatoes 1.5 568 
3. Export of potato products 0.4 180 2007 
4. Seed potato exports 0.8 458 
1. Mandate for the use of potatoes 
(according to the budget) 6.2 221 
2. Mandate for the use of seed potatoes 1.9 731 
3. Export of potato products 0.6 180 2008 
4. Seed potato exports 0.4 537 
  G/SCM/N/186/CHE 
 Page 21 
 
 
  7. Amount of the subsidy  
 
Utilisation of potatoes 
(in thousands of CHF) 
 
Year Total expenses 
2007 10.6 
2008 9.1 
 
Amount per unit 
(CHF per tonne) 
 
Year Utilization of surpluses 
2007 197 
2008 262 
 
8. Duration of the subsidy  
  Subsidies for the use of the campaign.   
 
9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
Production, trade and consumption 
(Potatoes for human consumptio n, seed and fodder potatoes) 
 
  (in thousands of tonnes) 
Year Harvest Imports Exports Part of harvest intended for 
domestic human consumption 
2007 489'800 56'942 5'354 290 
2008 408'300 40'149 5'303 340 
 X. FRUIT 
1. Title of the subsidy programme
 
  Valorisation of domestic production.    2. Period covered
 
 
 2007-2008.    3. General goal and/or purpose of the subsidy
 
 
 The purpose of the subsidy is to offer products at a competitive price within the scope of the 
promotion of rural development.  Other measures in this sector are aimed at preventing a collapse in 
the prices of domestic products.    4. Background and authority
 
 
 Federal Law on Agriculture of 29 April 1998 (SR 910.1).   G/SCM/N/186/CHE 
Page 22  
 
  5. Form of the subsidy
 
  The subsidies are granted in different  ways according to their nature:   
  Subsidies to promote the utilization of surpluses.  These are primarily intended for 
manufacturers of concentrated fruit juice to cover the additional co sts resulting from the takeover of 
surpluses.  In addition, subs idies are paid to exporters in order to  allow for exports of surplus cherries 
and certain fruit products, in particular pip-fruit  juice concentrates to traditional markets.  The 
subsidies are fixed sums per unit, which are determined according to market conditions.   
 
6. How the subsidy is granted and to whom
 
  See replies to Question 5.    7. Amount of the subsidy per unit
 
 
Total amount 
(in millions of CHF) 
 
Year Total 
2007 4.0 
2008 16.1 
 
Amount per unit  
 
The amounts per unit for the other measures mentioned cannot be shown because they vary 
too widely with conditions and with the market situation.    
8. Duration of the subsidy
 
  For the measures during the period covered by the notification, see the replies to Question 5.   
 9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
 
The main effect of the subsidies is intended to  preserve and ensure agricultural incomes.  As 
per capita consumption of all forms of fruit is ve ry high in Switzerland, domestic production of fruit 
covers only about half of the country's requirements, according to the year.    
Production and trade 
(thousands of tonnes) 
 
Production Imports 
Year Total5 Of which apples Chapter 08 Heading 
0808/0809 
2007 211 155 456 55 
2008 175 136 476 63 
 
                                                      
5 Apples, pears, quinces, cherries, plums and prunes, apricots, peaches and berries.    G/SCM/N/186/CHE 
 Page 23 
 
 
   The quantities of fruit exported (Chapter 08) correspond to:   
  2007:  5'467 tonnes.    2008:  4'976 tonnes.    XI. PROCESSED AGRICULTURAL PRODUCTS  
1. Title of the subsidy programme
 
  Export contributions.    
2. Period covered
 
  2007-2008.    3. General goal and/or purpose of the subsidy
 
 
 In order to place the Swiss foodstuffs industry on an equal footing with foreign competitors in 
respect of the cost of basic agricultural commoditi es used in the preparation of processed products, the 
Law mentioned below authorises the Government  to grant contributions on exports.   
 4. Background and authority
 
 
 The Federal Law of 13 December 1974 on the import and export of processed ,agricultural 
products (SR:  362.111.72), which has been in force since 1 June 1976, and the Ordinance of 
22 December 2004 regulating contributions to  exports of processed agricultural products 
(SR: 632.111.723).   
 
5. Form of the subsidy  
  The contributions are granted for the expor t of certain agricultural commodities (dairy 
products, egg products, cereal products, sugar and mol asses) where they are exported in the form of 
processed agricultural products.  These contributions  are calculated on the basis of the difference 
between Swiss and foreign prices of agricultura l commodities and accordi ng to the quantity of 
agricultural commodities used in the manufacture of the goods exported.   
 6. How the subsidy is granted and to whom
 
 
 The contributions are paid to manufacturers after export.  Requests for contributions may 
include exports made during a period of from one to twelve months.   
 7. Unit amount of the subsidy or, where this is  not possible, total amount or budgetized annual 
amount of the subsidy  
 
 The total amount of the contributions  paid was: CHF 79.2 million in 2007 and 
CHF 75.0 million in 2008.     Export contributions are calculated and fixed annually (and adapted periodically in the case of 
major changes in Swiss or foreign representative prices) for each of the principal agricultural 
commodities used by the foodstuffs industry on the basis of the difference between Swiss and foreign 
representative prices.  The amount per unit of processed products also depends on the quantities of agricultural commodities used in preparing the goods exported.    G/SCM/N/186/CHE 
Page 24  
 
  8. Duration of the subsidy and/or any other deadline connected with the subsidy
 
  Export contributions have been in force since 1 June 1976.  The budget is allocated on an annual basis from 1 January to 31 December.    
9. Statistical data enabling the effect s of the subsidy on trade to be assessed
 
  Export contributions make it possible to put Swi ss firms in the same competitive situation on 
foreign markets as foreign firms as regards the co sts of purchasing domestically a certain quantity of 
the principal agricultural commodities.   
 
  
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