WORLD TRADE
ORGANIZATIONG/SCM/N/60/CHE
31 July 2000
(00-3126)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full and Updating Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the SCM Agreement
SWITZERLAND
The following communication, dated 26 July 2000, has been received from the Permanent
Mission of Switzerland.
_______________
CONTENTS
Page
PART ONE:  INDUS TRY............................................................................................................ .........2
I. ASSISTANCE FOR ECONOMIC ZONES WHICH ARE UNDER ECONOMIC
RENEWA L........................................................................................................................ ........2
II. ASSISTANCE FOR MOUNTAIN AREAS ............................................................................3
PART TWO:  AGRICUL TURE ......................................................................................................... ..4
I. MILK AND DAIRY  PRODUCTS...........................................................................................4
(a) New Dairy Policy............................................................................................................ .....4
(b) Bu tter...................................................................................................................... ..............4
(c) Skimmed milk and powder ..................................................................................................6
(d) Cheese for domesti c consumption .......................................................................................7
(e) Cheese fo r export ........................................................................................................... ......8
(f) Other Dair y Products ........................................................................................................ ...9
II. BREEDING AND DAI RY CATTL E ....................................................................................10
III. HORSES ..................................................................................................................... .............11
IV. WOOL........................................................................................................................ ..............12
V. EGGS ......................................................................................................................... ..............13
VI. FEED GRAINS ................................................................................................................. ......14
VII. OIL-SEEDS .................................................................................................................. ...........15
VIII. SUGAR BEET................................................................................................................ .........17
IX. POTATOES.................................................................................................................... .........19
X. FRUIT........................................................................................................................ ..............20
XI. PROCESSED AGRICUL TURAL PRO DUCTS..................................................................22G/SCM/N/60/CHE
Page 2
PART ONE:  INDUSTRY
I. ASSISTANCE FOR ECONOMIC ZONES WHICH ARE UNDER ECONOMIC
RENEWAL
1. Title of the programme
Assistance for economic areas which are economically renewed.
2. Period covered
1999.
3. General goal and/or purpose of the subsidy
Support of projects of private enterprises aimed at creating and maintaining jobs in areas
which are under economic renewal.
4. Background and authority
Federal decree of 6 October 1995 (new legislation)
Federal ordinance of 10 June 1996
Federal ordinance of 30 June 1997, modified on 10 July 1998
5. Form of the subsidy
Financial assistance is allocated in the form of:
(i) Tax relief on federal taxes (partial or full)
(ii) Interest subsidies on investment credits(iii) Guarantees for investment credits
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 third of the investment project costs (hard assets and
start up costs).  The project has to be innovative: the product and the manufacturing process have tobe technologically up-to-date and give the company an increased ability to compete through a national
and international market presence.
The interest subsidies have a ceiling of Sw F 5 million for the credit for which interest
contributions may be paid.  The maximum subs idy which may be granted (Confederation plus
Canton) comes to Sw F 625,000.- (assumption of 5 per cent interest rate).
Under the ordinance of 10 June 1996, areas considered to be under economic renewal are
those where:
(a) The average unemployment over the last three years has exceeded the national average by at
least 10 per cent;G/SCM/N/60/CHE
Page 3
(b) The trend in the number of jobs has been markedly less favourable than the national average;
or
(c) There are clear indications that at least one of the above-mentioned situations will occur
shortly, in particular that the prospects for the most important sectors of the economy and for
the largest firms are unfavourable.
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized annual
amount of the subsidy
The sum of Sw F 36 million in guarantees has been granted under the new legislation in 1999.
In the same period, the sum of Sw F 1.8 million in interest subsidies has been granted.
8. Duration of the subsidy and/or any other deadline connected with the subsidy
The assistance programme remains in force for five years, until 30 June 2001.
The maximum duration of financial assistance in each case is eight years for guarantees,
five years for interest contributions, and 10 years for tax relief.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The effect of the assistance programme on trade is negligible, if not non-existent.
II. ASSISTANCE FOR MOUNTAIN AREAS
1. Title of the programme
Surety and contributions to interest servicing in mountain areas.
2. Period covered
1999.
3. General goal and/or purpose of the subsidy
The programme is aimed at providing long and medium term capital loans to small- and
medium-sized establishments situated in mountain areas.
4. Background and authority
This financial assistance is based on the Federal Law encouraging credit guarantees and on
loan service contributions in mountain areas (RS 901.2) of 25 June 1976.  These areas are defined in
the Federal Law on investment assistance in  mountain areas (RS 901.1) of 21 March 1997.
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.G/SCM/N/60/CHE
Page 4
6. How the subsidy is granted and to whom
The programme applies to sureties and intere st servicing contributions for small- and
medium-sized enterprises which are profitable or likely to develop, whether existing or to be created,
whose activity conforms to an established devel opment programme within the meaning of the Federal
Law on investment assistance in mountain areas (RS 901.1) of 21 March 1997.  Payments are madeonly to establishments which are not already supp orted 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
In 1999, the Confederation's total share of the losses on guaranteed loans was
Sw F 2.9 million, with federal commitments as a whole amounting, at year end, to Sw F 48.2 mi llion.
The contributions to interest servicing paid out in 1999 totalled Sw F 0.3 million.
8. Duration of the subsidy and/or any other deadline connected with the subsidy
The assistance programme for mountain areas remains in force indefinitely.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The effect of the subsidy on trade is insignificant, if not non-existent.
PART TWO:  AGRICULTURE
I. MILK AND DAIRY PRODUCTS
(a) New Dairy Policy
The dairy economy represents the most important branch of Swiss agriculture and is
responsible for a little more than one third of the gross value of agricultural production.  With effect
as of 1 May 1999 a completely new Dairy policy has been implemented.  It is market-oriented and
guarantees no longer any prices or quantities.  Only the milk quota system is maintained.  The ancientsystem, exhaustively described in this paper a year ago and based on a fixed milk price for the farmer
by the government is abandoned in favour of a few clearly defined subsidies for the
commercialisation of specified milk products, particularly for butter and for cheese.  The state-
dominated organisations Butyra and Swiss Cheese Union which regulated the butter import and
cheese export markets, respectively, have been dissolved.  Private initiative, know-how and self-
responsibility from the milk producer up to the sell ing company will decide in the future about their
market success.  Public regulations are limited to a certain number of financial measures mentionedbelow.  Because of the transition problems from the old to the new milk market order in 1999 the
financial input into the milk market has to be aggregated.  To get a good and correct understanding
the subsidies from January to April 1999 (old system) are included in the titles and figures below
which otherwise represent the new system since May 1999.
(b) Butter
1. Title of the subsidy programme
Contributions for butter.G/SCM/N/60/CHE
Page 5
2. Period covered
From May first 1999.  (cf.  to preliminary remarks I(a)).
3. General goal and/or purpose of the subsidy
In order to be competitive on the domestic market of all kinds of fat the commercialisation of
certain varieties of butter is supported by a subsidy per unit sold.
4. Background and authority
- Agriculture Law of 29 April 1998.
- Two Federal ordinances of 7 December 1998 concerning measures of transition and price
support.
5. Form of the subsidy
Subsidies consist of government-financed contributions for table butter, for cooking butter
and resolidified butter.  The total for these contributions amounts to Sw F 89.7 millions.
All these contributions are paid out by the Federal Office for Agriculture.
6. How the subsidy is granted and to whom
The price-reduction contributions are granted to manufacturers (amount per unit) and are paid
monthly.
7. Amount of the subsidy per unit
Butter subsidies vary as follows according to packing (cooking butter) and utilisation
(resolidified butter).
(Sw F per kg.)
Year Choice butter Cooking butter Resolidified butter
As of 1 May 1999 1.27 2.71 or 4.25 4.66 or 7.92
The average contribution granted is about Sw F 3.15 per kg.
8. Duration of the subsidy
The contributions are not seasonally or otherwise limited or differentiated.  However, the
amount of the contributions will be reduced regularly in the future due to the new milk policy.  The
total amount paid concerns the accounting year.G/SCM/N/60/CHE
Page 6
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Production, trade and consumption (in tonnes)
Year
1.1.1999-31.12.1999Production Imports Consumption and
exports incorporated in
processed products
1999 37,200 4,700 41,900
Switzerland exports virtually no fresh butter.
(c) Skimmed milk and powder
1. Title of the subsidy programme
Contributions for skimmed milk and skimmed milk powder.
2. Period covered
From May first 1999 (cf.  to preliminary remarks I(a)).
3. General goal and/or purpose of the subsidy
Milk price support.
4. Background and authority
- Agriculture Law of 29 April 1998.- Two Federal ordinances of 7 December 1998 concerning measures of transition and price
support.
5. Form of the subsidy
Subsidies consist of government-financed contributions for skimmed milk and skimmed milk
powder.  The total for this contributions amounts to Sw F 32,0 millions.
All these contributions are paid by the Federal Office for Agriculture.6. How the subsidy is granted and to whom
The beneficiaries are breeders who use skimmed 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
The contribution granted goes from Sw F -.12 to -.15 per kilo skimmed milk and Sw F 1.21 for
skimmed milk powder.G/SCM/N/60/CHE
Page 7
8. Duration of the subsidy
The contributions are not seasonally or otherwise limited or differentiated.  However, the
amount of the contributions will be reduced regularly in the future due to the adopted new milk
policy.  The total amount paid concerns the accounting year.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Year Production of processed skimmed
milkProduction of processed skimmed
milk powder
1999
from 1.5.1999100,094 12,959
(d) Cheese for domestic consumption
1. Title of the subsidy programme
Special price reduction for some soft and semi-hard cheeses.
2. Period covered
From May first 1999 (cf.  to preliminary remarks I(a)).
3. General goal and/or purpose of the subsidy
To enable the cheese manufacturer to pay a decent 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.
- Two Federal ordinances of 7 December 1998 concerning measures of transition and price
support.
5. Form of the subsidy
There are some soft and semi-hard cheeses which get a contribution per kilo when sold in
Switzerland.  The total for this contribution amounts to Sw F 19.3 Mio.
All these contributions are paid by the Federal Office for Agriculture.6. How the subsidy is granted and to whom
Subsidies are granted to the cheese manufacturers as a price reduction per kg of cheese.
7. Amount of the subsidy per unit
from Sw F 0.35 to Sw F 1.90 per Kg.
8. Duration of the subsidy
The accounting year.G/SCM/N/60/CHE
Page 8
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Year Total Production
(tonnes)Of which subsidies for domestic
consumption (tonnes)
From 1.5.1999 89,500 12,276
(e) Cheese for export
1. Title of the subsidy programme
Export contribution for cheese.
2. Period covered
From May first 1999 (cf.  to preliminary remarks I(a)).
3. General goal and/or purpose of the subsidy
To enable the cheese manufacturer to pay a decent 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.
- Two Federal ordinances of 7 December 1998 concerning measures of
transition and price support.
5. Form of the subsidy
The subsidy consist of a specific contribution for each kilo of cheese sold abroad.  The total
for this contribution amounts to Sw F 82.8 Mio.
All these contributions are paid out by the Federal Office for Agriculture.
6. How the subsidy is granted and to whom
Subsidies are granted to the cheese dealers as a price reduction per kg of exported cheese.
7. Amount of the subsidy per unit
from Sw F 1.- to Sw F 5,30 per kg.
8. Duration of the subsidy
The accounting year.G/SCM/N/60/CHE
Page 9
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Year Total Production
(tonnes)Of which subsidies for exports
(tonnes)
From 1.5.1999 89,500 26,936
(f) Other Dairy Products
1. Title of the subsidy programme
Export subsidy for other dairy products.
2. Period covered
From May first 1999 (cf.  to preliminary remarks I(a)).
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 used to manufacture those products.
4. Background and authority
- Agriculture Law of 29 April 1998.
- Two Federal ordinances of 7 December 1998 concerning measures of transition and price
support.
5. Form of the subsidy
Payment to exporters of other dairy products.All these contributions are paid out by the Federal Office for Agriculture.
6. How the subsidy is granted and to whom
Payment to exporters of other dairy products on the basis of the quantity of whole milk used
to manufacture those products.  The total for this contribution comes to Sw F 19.4 Mio.
7. Amount of the subsidy per unit
There is an export contribution of 0.40 Sw F per kg of milk that is used in manufacturing the
following dairy products:
(i) Cream.
(ii) Skimmed milk powder and milk powder.
(iii) Yoghurt.
(iv) Flavoured or containing added fruit, nuts or cocoa.
8. Duration of the subsidy
The accounting year valid for the dairy account.G/SCM/N/60/CHE
Page 10
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The following figures represent the subsidised amounts for the different products:
Product Tonnes
Cream 622
Skimmed milk powder and milk powder 6,861
Yoghurt 563
Flavoured or containing added fruit, nuts or cocoa 2,427
II. BREEDING AND DAIRY CATTLE
1. Title of the subsidy programme
Export subsidies.
2. Period covered
1999.
3. General goal and/or purpose of the subsidy
The Federal Council takes measures to maintain domestic production of breeding and dairy
cattle in the mountain area.
4. Background and authority
- Agriculture Law of 29 April 1998
5. Form of the subsidy
Contributions (grants).
6. How the subsidy is granted and to whom
Subsidies are granted in order to bring the prices of exported livestock into line with those
charged in traditional export markets.  These contributions consist of a fixed base amount and a
variable amount depending on the quality of the animal;  they are paid up to a fixed maximum.
7. Amount of the subsidy per head
  Total (in thousands of Sw F)
1999
Export subsidies 698
Per unit (as an average, Sw F per livestock unit)
1999
Export subsidies             1401G/SCM/N/60/CHE
Page 11
8. Duration of the subsidy
Export subsidies have been applied since 1954.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The export bonuses have made it possible to maintain traditional exports of cattle, mainly in
the interests of breeding in mountain areas.
Production and exports of breeding and dairy cattle
(Head)
 Year Stock calves up to one year Exports of heifers, cows and
bulls
1999 250,1498
Switzerland imports about 1000 dairy cattle annual.
III. HORSES
1. Title of the subsidy programme
Export subsidies.
2. Period covered
1999.
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 the Franches-Montagnes and Hafling breeds,
half-bred horses and mules.
4. Background and authority
- Agriculture Law of 29 April 1998.
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 export subsidies in 1999 amounted to Sw F 134,000.
6. How the subsidy is granted and to whom
The subsidy is granted to breeders who export.
                                                     
1Estimate .G/SCM/N/60/CHE
Page 12
7. Duration of the subsidy
The subsidy has been in force since 1960.
8. Statistical data
Numbers and Trade2
(Head)
Year Horse numbers Imports Exports
1999 46,000 2,803 848
Most exports are not subsidised (subsidies cover about 100 head per year).
IV. WOOL
1. Title of the subsidy programme
Purchase of domestic wool.
2. Period covered
1999.
3. General goal and/or purpose of the subsidy
There are at present some 440,000 head of sheep, the great majority of which are in mountain
areas.  The subsidy enables the Swiss wool indust ry to purchase domestic wool, while at the same
time it guarantees to producers a contribution to their production costs.
4. Background and authority
- Agriculture Law of 29 April 1998.
5. Form of the subsidy
The Domestic Wool Board (CLI), a subsidiary of the Swiss Sheep Farmers' Federation,
purchases domestic wool from the producers.  The price received by the producer comprises a Federal
contribution fixed by the Department of Public Economy at an amount varying with the prices
obtained by the Board when reselling in the market .  The Confederation reimburses CLI for any losses
resulting from its operations up to a maximum amount of Sw F 200,000 a year.
The Confederation allocates an annual contribution of Sw F 1.0 million.
The subsidy is in the form of price support, based on the difference between the price fixed by
the Federal Council and the market price, and of reimbursement of the losses incurred by the CLI in
purchasing the wool.  This reimbursement is intended to cover the price difference mentioned and the
variable amount granted by the CLI.
                                                     
2Enumeration is carried out in April of each year.  Horses intended for slaughter are not included.G/SCM/N/60/CHE
Page 13
6. How the subsidy is granted and to whom
The greater part of the subsidy is granted to the producer through the price paid by the CLI.
The rest goes to cover the CLI deficit.
7. Amount of the subsidy per unit
Year Total (thousands of Sw F) Per unit (Sw F per tonne)
1999 1,000 1,740
8. Duration of the subsidy
The subsidy was introduced in 1962.  It is provided in two instalments per year.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
(in tonnes)
Year  Production Imports Exports
1999 460 1,273 634
V. EGGS
1. Title of the subsidy programme
Price equalisation fund for eggs and egg products.
2. Period covered
1999.
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
- Agriculture Law of 29 April 1998.- Federal Order of  7 December 1998 concerning the egg market.
5. Form of the subsidy
Contributions (grants).
6. How the subsidy is granted and to whom
The price equalisation fund for eggs and egg products is financed solely from a share of the
special-purpose customs duties levied on imports of eggs and egg products.  It covers the expenses of
the bodies responsible for the collection, transport and distribution of domestic eggs intended forG/SCM/N/60/CHE
Page 14
importers required to take them (imports under the tariff quota alone).  It also can make grants for
other measures designed to facilitate the disposal of domestic eggs (crack eggs and price reductions) .
7. Amount of the subsidy
Year Total amount (millions of Sw F)
1999 6,0
8. Duration of the subsidy
Payments are made usually on a monthly basis during a calendar year.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Production, trade and consumption of eggs in shell (millions of eggs).
Year Production Imports Consumption
1999 680 388 912
Exports are negligible.
VI. FEED GRAINS
1. Title of the subsidy programme
Bonuses to promote the growing of feed grains, except maize, and seed legumes.
2. Period covered
1999.
3. General goal and/or purpose of the subsidy
Growing premiums for feed grains are one of the measures designed to safeguard peasant
income and food security.
4. Background and authority
- Agricultural Law of 29 April 1998.
5. Form of the subsidy
Payment to the producer (grant).
6. How the subsidy is granted and to whom
Crop bonuses proportionate to the area under cultivation are allocated to domestic producers
of oats, triticale, barley, einkorn, emmer, high-protein peas and field beans.
These bonuses are financed from a share of the special-purpose customs duties levied on
imported fodder.G/SCM/N/60/CHE
Page 15
The bonuses are allocated annually in the Confederation budget.
7. Amount of the subsidy per unit
In 1999 the following amounts were paid per hectare (in Sw F):
Barley, triticale, oats, einkorn and emmer 770
Field beans and high-protein peas 1,260
Fibre plant, rape seed for technical purposes 2,000
For field beans and high-protein peas, the growing bonus amounted to Sw F 1,260 per hectare
in 1999 regardless of surface area.
8. Duration of the subsidy
The measure was introduced in 1951.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Production, trade and consumption
(not allowing for fluctuations in stocks)
Barley, oats, triticale, field beans, high-protein peas
Year Production
(thousands of tonnes)Imports
(thousands of tonnes)Consumption
(thousands of tonnes)
1999 343 27 370
VII. OIL-SEEDS
1. Title of the subsidy programme
Price support.
2. Period covered
1999.The measures taken to promote arable farming 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.
3. General goal and/or purpose of the subsidy
4. Background and authority
Agriculture Law of 3 October 1951.G/SCM/N/60/CHE
Page 16
5. Form of the subsidy
The subsidy takes the form of an annual payment to the oil-processing plants (grant).
(a) Rapeseed:  the selling prices of rapeseed oil are fixed in relation to the prices of other
edible oils.  The subsidy consists of the reimbursement made by the Confederation to
the oil-processing plants for the loss re sulting from the difference between their
manufacturing price and the selling price of rapeseed oil and oilcake.
(b) Soyabeans and sunflowerseed:  the selling prices of soyabeans and sunflowerseed to
the oil-processing plants are determined in the light of the situation on the world
markets and world market prices.  The subsidy is composed of the difference, which
is borne by the Confederation, between the import price and the oil processors'delivery price.
6. How the subsidy is granted and to whom
The subsidy for oil seed growing consists of price and income support in the form of a
takeover and price guarantee for rapeseed, soyabeans and sunflowerseed.  This guarantee takes the
form of a payment to the oil processors in order to guarantee prices.
The Federal Council fixes the surface area for which it guarantees to producers that it will
purchase the oil-seeds grown.  This surface area is 21,000 hectares, with an upper limit of16,000 hectares on the figure for rapeseed growing.  The Federal Council fixes the price to the
producer taking into account production costs, yields and disposal prospects.
7. Annual amount of the subsidy
Year Rape seed
Total
(thousands of Sw F)Per tonne of seed
(in Sw F)
1999 28,700 748
Soya beans
Total
(thousands of Sw F)Per tonne
(in Sw F)
1999 6,151 810
Sunflower seed
Total
(thousands of Sw F)Per tonne
(in Sw F)
1999 1,900 383G/SCM/N/60/CHE
Page 17
8. Duration of the subsidy
On the basis of the Order of 16 June 1986 the oil processors have obtained an annual
contribution from the Confederation amounting to the deficits resulting from domestic processing of
the rapeseed harvest.  Soyabeans growing has been supported since the 1988 harvest under the same
price and takeover guarantee as that applying to the 2,000 hectare surface area originally allocated.Since 1994 the rules have also covered sunflower in respect of edible-oil production.  The Order of 24
May 1995 on oil-seeds has replaced the Orders on rapeseed, soyabeans and sunflowerseed.  The
surface area for oil-seeds has been limited to 20,000 hectares at the same time, with the maximum
rapeseed area restricted to 16,000 hectares.  On the basis of the Order of 28 May 1997 the acreage for
oil-seeds is limited to 21,000 hectares.  The acreage remains limited to 16,000 hectares.  In fact the
area of oilseeds harvested never reached 20,000 ha (1997: 18,115; 1998:19,216; 1999: 18,708).
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The subsidy has made it possible to keep a minimum area under oil-seeds.  Domestic
production is equivalent on average to 20-25 per cent of Swiss consumption of vegetable oils and fats.
Production, trade and consumption
(in tonnes)
Rape seed
Year Production of Rape seed Consumption of Rape seed oil
1999 38,376 17,694
Imports of rape seed and oil are small.  There are no exports.
(in tonnes)
Soyabeans
Year  Soyabeans production Soyabeans import Soya oil exports
1999 7,590 100,152 14,100
(in tonnes)
Sunflowerseed
Year Sunflowerseed production Sunflowerseed imports Sunflower oil exports
1999 4,962 22,980 231
VIII.  SUGAR BEET
1. Title of the subsidy programme
Transformation mandate for sugar refineries.
2. Period covered
1999G/SCM/N/60/CHE
Page 18
3. General goal and/or purpose of the subsidy
The two sugar factories are committed to produce within 120,000 to 185,000 tons of sugar
from domestic sugar beet.  To fill this mandate, they obtain a fixed allowance of the Federal
Government.
4. Background and authority
- Art.  54 of the Agricultural Law of 29 April 1998
5. Form of the subsidy
Fixed allowance for the production of sugar.
6. How the subsidy is granted and to whom
The fixed allowance is paid to the sugar factories.  If, after deduction of customs duty at the
border, the average price of sugar is outside of the fork from 35 to 45 francs/dt, the surplus or deficit
is taken into account for the determination of the compensation in the following period.  In addition
the following conditions apply to the factories:
• They contract with the producer organizations the quantity necessary of sugar beets and the
criteria of distribution among various producers.
• They contract with the producers organizations the price and other conditions.
• They sell at market prices manufactured sugar and the by-products resulting from the
transformation of sugar beets.
• They organize the processing at reduced cost
The payments are made against the budget of the Confederation for the following year.
7. Amount of the subsidy per unit
Year Total (thousands of Sw F) Francs per 100 kg.  of domestic
refined sugar
1999 45,000 25
8. Duration of the subsidy
The subsidy is paid for a period of 4 years (1st October 1999 – 30th September 2003)G/SCM/N/60/CHE
Page 19
9. Statistical data enabling the effects of the subsidy on trade to be assessed.
Production, trade and consumption of sugar (in tonnes)
Year Production Imports3Exports4
1999 176,865 136,718 347
IX. POTATOES
1. Title of the subsidy programme
Price support.
2. Period covered
1999.
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, oversupply 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
- Agricultural Law of 29 April 1998
5. Form of the subsidy
The subsidies take the following forms:
Use of potatoes: subsidies for feed purposes (fresh potatoes), storage of table potatoes,
transformation into feed potatoes, dehydration 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 organizations to carry out development measures
for potatoes which cannot be sold on the market and grants subsidies for that purpose.  The
Confederation takes other measures to ensure use of the potatoes harvest.  The subsidies and the other
measures must aim at the adaptation of the potatoes production to the market potential.
                                                     
3 Customs tariff headings:
          1701.1100/1200/9100/9900/9991/9999.
4 Id.9.G/SCM/N/60/CHE
Page 20
The export subsidies are paid directly to the exporters of potato products.
Year 1999 Millions Sw F Sw F / tons
1. Mandate for the use of potatoes
2.    Mandate for the use of seed potatoes3.    Export of potato products4.    Seed potato exports11.42
0.100.940.35185
436180256
7. Amount of the subsidy
Utilization of potatoes
(in thousands of Sw F)
Year Total expenses
1999 12,811
Amount per unit
(Sw F per tonne)
Year Utilization of surpluses
1999 187
8. Duration of the subsidy
Subsidies for the use of the 1999 campaign.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Production, trade and consumption (potatoes for human consumption, seed and fodder
potatoes)
(in thousands of tonnes)
Year Harvest Imports Exports Part of harvest intended for domestic
human consumption
1999 484 47 7 290
X. FRUIT
1. Title of the subsidy programme
Valorisation of domestic production.
2. Period covered
1999.G/SCM/N/60/CHE
Page 21
3. General goal and/or purpose of the subsidy
In order 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
- Agricultural Law of 29 April 1998.
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 costs resulting from the takeover of
surpluses.  In addition, subsidies 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.  Thesubsidies 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 Sw F)
Year Total
1999 37,9
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 institutionalized measures during the period covered by the notification, see the
replies to Question 5.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
The main effect of the subsidies is intended to preserve and ensure agricultural incomes.  As
per capita consumption of all forms of fruit is very high in Switzerland, domestic production of fruit
covers only about half of the country's requirements, according to the year.G/SCM/N/60/CHE
Page 22
Production and trade
(thousands of tonnes)
Year Production Imports
Total5Of which apples Chapter 08 Heading
0808/0809
1999 205 144 441 68
The quantities of fruit exported (Chapter 08) correspond to:
1999 4,788 tonnes
XI. PROCESSED AGRICULTURAL PRODUCTS
1. Title of the subsidy programme
Export contributions.
2. Period covered
1999.
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 commodities 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, which has been in force since 1 June 1976, and the Order of 18 October 1995 regulating
contributions to exports of processed agricultural products.
5. Form of the subsidy
The contributions are granted for the export of certain agricultural commodities (dairy
products, egg products, cereal products, sugar and molasses) where they are exported in the form of
processed food products.  They are calculated on the basis of the difference between Swiss and
foreign prices of agricultural commodities and acco rding to the quantity of agricultural commodities
used in the manufacture of the goods exported.
6. How the subsidy is granted and to whom
The contributions are paid to manufacturers after export.  Requests for contributions may
include exports made during a period of from one to twelve months.
                                                     
5 Apples, pears, quinces, cherries, plums and prunes, apricots, peaches and berries.G/SCM/N/60/CHE
Page 23
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: Sw F 130.1 millions in 1999.
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.
8. Duration of the subsidy and/or any other deadline connected with the subsidy
Export contributions have been in force since 1 June 1976.  The budget is allocated on an
annual basis from 1 January to 31 December.
9. Statistical data enabling the effects of the subsidy on trade to be assessed
Export contributions make it possible to put Swi ss firms in the same competitive situation on
foreign markets as foreign firms as regards the costs of purchasing the principal agricultural
commodities.
__________