RESTRICTED GENERAL AGREEMENT ON COM.Il/9 11 August 1959 TARIFFS AND TRADE Limited Distribution

Committee II.- Expansion of Trade Original: French

FIRST ROUND OF CONSULTATIONS ON AGRICULTURAL POLICIES

SWITZERLAND

Commodity Information

Attached for the information of the Committee is the reply of the Government of Switzerland to the questionnaire in Annex B to document COM.Il/5. In trans­ mitting this reply, the Government of Switzerland has sta^Kid that it has not included in this documentation statistics on imports, exports and national production for the years 1925-29, as that period seemed too remote to be of any use for comparison with present conditions. Moreover, particularly in regard to national production as related to consumption, it would not have been possible to give figures comparable with those for more recent periods. COM.Il/9 Page 2

TRADE IN ^RICULTURAL PRODUCTS

Reply to questionnaire of Committee II (Annex B to document COM.Il/5)

A. DAIRY PRODUCTS

Tariff Measures:

Present Swiss Customs Tariff Rate of Duty Tariff (Sw.frs. per Item No. Description of Products 100 kgs. gross) Bound Rate

91 Fresh milk 10.- not bound 92 Condensed milk, sterilized 15.- »! II

19 Milk powder and edible flour for childrenL 50.-1 I! II 93 a Fresh butter 20.-2 II II 93 b Cream 140.- Il IT 94 Melted butter, salted ,n..2 II It 98 a Soft cheese: - G-orgonzola, , Crescenza, , Italico 8.- bound IT. (25.-, 40.-, 50,-) 98 b - other 20.- not bound 99 a Hard cheese: - (Parmesan, Lodigiano and Reggiano) 8.- bound IT (this item also covers: (50.-) Asiago, Bitto, Brà, Cacio-Cavallo, , , , , ) bound IT (50.-) 99 b - other, in forms 80." not bound - - in boxes 80.- ii it - - in blocks 80.- ti ii

Apart from the customs duty, a price supplement of Frs.30 is applied to milk powder.

A supplementary duty of Frs.100 per 100 kgs. gross is levied. 3 The binding is applicable only so long as a system for taking over whole domestic milk powder continues in o]ieration. COM.Il/9 Page 3

New Swiss Customs Tariff Rate of Duty Tariff (Sw.frs. per Item No. Description of Products 100 kgs. gross) Bound Rate

04 01.10 Fresh milk 10.- not bound 20 Cream 140.- ir n 04 02.10 Dried milk 50.- GATT1 20 Cream 140.- not bound 30 Other milk, preserved, concentrated or sweetened 25.- II II 2 04 03.10 Butter, fresh 20.- II 11 2 12 Butter, salted, melted, etc. II II 04 04. Cheese and curd: - soft cheese: 10 - - Danablu, , Roquefort 25.- GATT* 12 - - Brie, Camembert, Crescenza, Italico, , , Pont-1'Evêque, Reblochon, Romana, Robiola, Stracchino 30.- GATT 14 other 50.- not bound - hard or medium-hard cheese: 20 - - blue-veined cheese 40.- n n 22 - - , Canestrato (), Fontina de la Vallée d'Aoste, Grana, Pecorino (, Fiore Sardo, other Pecorino), Provolone 25.- GATT 24 Asiago, Bitto, Brà, Fontal, Montasio, Saint-Paulin (Port-Salut) 50.- GATT 3 - - Cantal 26 60.- GATT 25 other 80.- not bound 30 - Melted cheese 80,- n ii

The binding is applicable only so long as a system for taking over whole domestic milk powder continues in operation. 2 In addition to the customs duty, a price supplement of Frs.100 per 100 kgs. gross is applied to products included in these items.

Conditions for admission to the contractual rates in accordance with the note to items ex 404.10 and ex 404.22 of the Swiss Schedule. COM.n/9 Page 4

Non-tariff Hoasures

Imports of dairy products arc liberalized, with the exception of butter which comes under State-trading.

Sv/iss agricultural policy is aimed at maintaining a large farming population and facilitating national supplies by ensuring agricultural production and encouraging agriculture, while taking account of the interests of the economy as a whole. The measures provided under agricultural legislation must be applied in such a way that good-quality domestic products can command prices which, averaged over several years, cover the average production costs for agricultural undertakings which are run in a rational manner and under normal conditions.

The Swiss Government endeavours to organize domestic production so as to meet the country's requirements to the fullest extent possible, having regard to natural conditions and to the fact that production must be suited to national requirements and to outlets in both the domestic and the export market. In order to achieve a cortain balance between livestock and agricultural production, special measures are taken to encourage cultivation and bring the number of cattle into line with fodder production in each enterprise, and in the country as a whole.

The Central Butter Office (BUTYRA) is responsible for regulating the butter supply so as to meet national requirements and take up domestic butter production; it, also administers butter imports and tries to improve quality. It purchases good-quality domestic butter which cannot easily bo sold, at a price corresponding to the basic price for milk, and sees to its placing, through funds allocated for this particular purpose. Imports of butter, which may only be offooted by BUTYRA, have to be so regulated that national butter requirements aro met without any hincb.vn.ca to the marketing of Swiss-produc 1 butter. BUTYR^ is a co-operative society under public law.

The Swiss Union for the Cheese Trade is responsible for disposing of hard cheese, in Switrorland and abroad, at prices as consistent as possible with the basic milk price fixed by the Federal Council. It is a federation of organizations of milk producers, cheese producers, choose exporters and wholesalers supplying cheese to the domestic market. The Federal Council fix63 the amount of the contributions towards any losses in cheese marketing which the Confederation makes to the Central Union of Swiss Milk Producers, which guarantees the fixed price for milk to its members. The production and sale of Alpine specialities (mountain cheeses) are also encouraged.

Importers of whole milk powder are required to take domestic milk powder pro rata to the quantity imported.

Subsidies The Swiss Confederation subsidizes the disposal of cheese in Switzerland and abroad, and that of butter in Switzerland (in 1958, the BUTYRA price was reduced by between 45 and 60 centimes per kg. for table butter and by COM. II/9 Page 6 .

Sw.frs.1.90 to 3w.frs.2.80 - in special cases Sw.frs.3.55 - per kj> for cooking butter, according tc quality and place of production). On 1 November 1957, the price of milk for processing was reduced by 2 centimes per kg., which led to a sharp increase in expenditure in 1958. According to State accounts, expenditure for the disposal of dairy products has been as foliotas:

1956 1957 1958 (in millions of francs) Disposal of butter 19.3 18.1 52.9 Disposal of cheese - 8.0 39.9 Disposal of milk preserves - - 1.2

In order tc confine expenditure by the Confederation to certain limits, and adjust production, the Swiss authorities have instituted the principle that producers should bear a larger share of the losses incurred.

Of the expenditure mentioned above, the loss on the disposal of cheese abroad amounted to Sw.frs.8 million in 1957 and Sw.frs.27 million in 1958. The latter figuro includes thu cost of the general reduction in the price of milk for processing, in proportion to exports.

Price conditions for Hilk and Dairy Products

Taking into account production costs in soundly administered enterprises, as well as the conditions of production and sale of milk and dairy products, the Federal Council fixes the basic price paid to the producer for milk. Since 1 November 1957, the price has been 43 centimes per kg. Since 1 November 1958, 2 centimes have been withheld from the price paid for milk, this amount being intended to cover the producer's share in the cost of disposing of dairy products.

In 1958, the guaranteed price for top-quality butter (special butter) was from Sw.frs.9,65 to Sw.frs.9.80 per kg., according to tho place of production. It was sold to the retail trade at Sw.frs.9.83 per kg.

In 1958, cheese (Emiontal type) was taken over from the Swiss Union for the Cheese Trade at from Sw.frs.4.38 to Sw.frs.4.58 per kg., according to quality. The wholesale price was between Sw.frs.3.50 and Sw.frs.5.50 per kg. Export prices ranged between Sw.frs.3.86 and Sw.frs.5.85, according to quality.

Cannot be compared with the preceding year, as the computation covers a period of eighteen months. COM.Il/9 Page 6

Statistical Information

Cheese National Production : National % of total Year Production Imports Exports Ccnsumnticn Consumption

t t t t % 1934-/38 50,700 1,780 18,377 33,726 150 1954 54,900 2,8X 21,546 39,890 138 1955 60,300 3,529 21,131 40,334 150 1956 60,200 4,650 24,382 41,764 144 1957 63,400 5,073 24,022 40,483 157 1958 61,700 5,706 27,964 41,621 148 1954/58 60,100 4,358 23,809 40,818 147

Butter National Production National $ of total Year Production Imports Exports Consumption Consumption

t t t t % 1934/38 26,200 920 3 26,729 98 1954 28,900 2,009 1 31,405 92 1955 26,200 5,930 0 31,700 83 1956 27,100 6,119 1 33,233 82 1957 28,600 6,862 1 33,217 86 1958 30,800 295 0 33,573 92 1954/58 28,320 4,243 1 32,625 87

Milk Powder National Exports Production National (inc. $ of total Year Production Imports specialities) Consumption Consumption

t t t t % 1934/38 3,260 82 908 2,435 134 1954 7,900 1,498 3,461 5,937 133 1955 8,900 1,073 3,832 6,141 145 1956 10,800 1,956 5,179 7,577 143 1957 12,700 2,324 5,724 9,300 137 1958 13,000 2,371 5,479 9,891 131 1954/58 10,660 1,844 4,735 7,769 137

Taking into account modifications in stocks. 0QM.II/9 Page 7 B. MEAT Tariff Measures :

Present Swiss ( J 'stoms Tariff

Rate of Duty Tariff (Sw.fr. per Item No. Description of Products 100 kgs, gros;0 Bound Rate Fresh meat:

76 a - veal 45.-1 not bound b - pork 70.-1 it 11 c - other 35.-1 11 11 Preserved meat: - salted, smoked, dried bacon: 77 a ham 65,- bound IT 75.- CZ b - - other 75.- " n CZ2 1 0 - frozen meat 40,- not bound 78 - other 50.- ti 11

New Swiss Customs Tariff 02 01, Meat and edible meat offals etc.: 10 - meat of calves 40.- not bound - meat of heifers, bulls, cows and steers: 20 - - fresh, whether or not chilled 35.- GATT (fresh) 22 frozen 40.- not bound 30 - meat of sheep 4Q.- 11 11 - meat of swine: 40 - - in half-carcases per half; 5.- 11 11 42 - - other, including larded per 100 kgs. bacon 70.- 11 11 50 11 11

02 06. Meat and edible meat offals etc., salted, in brine, dried or smoked: 10 - meat and edible meat offals of animals included in Items Nos. 01 01 to 01 04 inclusive 75.- GATT (ham) 20 - other 30.- GATT 75.-

This duty is at present reduced to Prs.10. The rate of duty bound with Czechoslovakia has been denounced; it will lapse upon the entry into force of the new customs tariff. C0M.II/9 Page 8

Non-tariff Measures;

Livestock must be suited to the capacity of the meat market, taking into account that an average of 5 *o 10 per cent of consumption needs is met by imports. The Federal Council fixes indicative prices (prices paid to the producer) for the various categories and qualities of cattle for slaughter (bulls, steers, heifers and cows), calves for slaughter, swine and sheep* The indicative prices for cattle for slaughter and swine also show upward and downward variations, to take account of annual fluctuations which are considered normal.

Imports of cattle for slaughter and meat are subject to quantitative restriction. Import licences are granted when production prices exceed the upper limit of the indicative prices. VJhen prices fall below the lower limit of the indicative prices, importers are required, under certain conditions, to participate to a reasonable extent in the disposal of the surplus.

In 1958, the average indicative price (live weight) for first-quality heifers and steers was Sw.fr,3•175, with upward or downward variations of 10 centimes per le;... from that level; the i:.dic:.tivo price for covs for the sausage industry was Sw,fr,1.70 per kg., with upward or downward variations of 20 centimes. The indicative price for swine (live weight) was Sw.fr,3.35 in 1958, with upward or downward variations of 25 centimes per kg.

Statist: ical "..formation Beef and Veal

Pfotnietîon in £ Year Production Exports Imports Consumption of Consumption ~% t t t % 1933/38 9?,650 507 5,207 104,350 95 1952 90,300 271 10,571 100,600 90 1953 95,900 582 4,182 99,500 96 1954 96,900 111 5,411 102,200 95 1955 83,600 166 20,966 104,400 80 1956 90,400 104 18,104 108,400 83 1957 97,300 99 13,199 110,400 88 1952/57 92,400 222 12,072 104,250 89 Pork 1933/38 86,433 - 2,200 88,633 98 1952 92,200 - 1,700 93,900 98 1953 98,500 - 1,400 99,900 99 1954 95,300 - 5,200 100,500 95 1955 100,500 - 3,500 104,000 97 1956 109,900 - 1,800 111,700 98 1957 114,500 - 1,700 116,200 99 1952/57 101,817 - 2,550 104,367 98 Cm. 11/9 Page 9

C. BREAD CEREALS

Tariff Measures:

Present Swiss Customs Tariff

Rate of Duty Tariff (Sw.fr. per Item No. Description of Products 100 kgs. grosse Bound Rate

1 a Wheat, not denatured 3.- not bound 2 a Rye, not denatured 3.-

New Swiss Customs Tariff

10 01. Wheat and meslin: 10 - not denatured 3.- not bound 10 02. Rye: 10 - not denatured 3.- not bound

Non-tariff measures: State-trading; Subs:Ldies .

In order to encourage wheatproduction in Switzerland, the Confederation purchasesdomestic wheat Cf goad quality, suitable for milling, from the producers at prices which make cultivation worthwhile. The difference between the purchase price for domestic wheat and the re-sale price to millers, on the basis of the market value of foreign wheat, is covered by a subsidy paid by the Confederation. Price movements over the past few years have resulted in the following expenditure:

Average price paid to Difference between purchase Expenditure by Year producers for wheat price and rcr-sale price to the Confederation millers per quintal per quintal V - , in FT. Fr, (millions of francs)

1956 61.44 22,- 14.11 1957 65.05 28,44 61.1 1958 65.- 28,- 70.7

Deliveries greatly reduced as a result of damage caused by frost and germination. COM.Il/9 Page 10

Producers are entitled to a milling premium proportionate to the amount of their own wheat which they use for their household needs and their enter­ prise, as they are required to do to a certain extent. Thus, for wheat producers, home-baked bread costs approximately the same as bread purchased at the baker. For wheat grown below 800 metres altitude, the milling premium was Sw.frs.10,- per quintal in 1956 and Sw.frs.15.- per quintal in 1957 and 1958. Producers in mountain regions receive an additional premium. Payment of the milling premium cost the Confederation Sw.frs.9 million in 1956, Sw.fr.7»2 million in 195Y and Sw.frs.12.1 million in 1958.

The wheat administration holds a monopoly over imports of wheat, including hard wheat and hard-wheat meal. After the entry into force of the new wheat law, scheduled for 1 January i960, wheat merchants and commercial millers will be able to import wheat, but only when so authorized by the Swiss Co-operative Society for Cereals and Fodder. In future, wheat imports will be dealt with in the same way as fodder oereals (see Section D hereafter). The wheat administration issues to manufacturers of spaghetti, macaroni and the like import permits for hard-wheat meal up to a maximum of 10 per cent of the amount used for the manufacture of such products during the preceding calendar year.

Annual flour imports (wheat flour, bean flour, potato flour, wheat-germ flour, etc.) amounted to an average of 110 tons from 1934 to 1938, and to 530 tons from 1954 to 1958. Annual imports of hard-wheat meal amounted to 1,190 tons from 1934 to 1938 and 10 tons from 1954 to 1958. Exports of milling products are negligible.

Statistical Information:

Domestic Imports Quantities avail­ Consumption in Area of wheat production(wheat, able for domestic % of quantities Year cultivation of wheat rye) consumption available

ha t t t % 1934/38 107,000 204,000 421,100 625,100 33 1953 116,000 240,800 297,200 538,000 45 1954 121,000 297,600 300,100 597,700 50 1955 123,500 313,700 210,500 524,200 60 1956 103,000 124,800 558,600 683,400 18 1957 127,200 287,500 480,100 767,600 37 1953/57 118,100 252,900 369,300 622,200 41 CCM.II/9 Rage 11

D. FODDER CEREALS AN J 0TH3R WBSJXLS

Tariff measures:

Present Swiss Customs Tariff

Rate of Duty Tariff (Sw. frs. per Item No, Description of Products 100 legs.gross) Bound Rate

1 b Wheat, denatured -.60 not bound 2 b Rye, denatured -.60 ii ii 3 Oats -.60 bound with C2£ it ti PO 4 Barley -.60 ii ii II 5 Rice in the husk or without the husk -,6o not bound 6 Other cereals -,6o n II 7 Maize -.50 H it 12 Husked rice 4,50 bound with IT and US ex 14 Maize, polished, pounded, hulled or crushed, maize meal and flakes 4»50 not bound

New Swiss Customs Tariff 10 01.12 Wheat and meslin, denatured -.60 GATT 10 02.12 Rye, denatured -.60 not bound 10 03.01 Barley -.60 11 n 10 04.01 Oats -.60 11 11 10 05.01 Maize -.50 11 it 10 06. Rice: 10 - not processed -.60 GATT 12 - ground to remove the pericarp, whether or not polished 4.50 bound with IT and US 20 - Broken rice, denatured -.60 not bound 10 07.01 Other cereals -.60 It M

The rates of duty bound with Czechoslovakia and Poland have been denounced; they will lapse upon the entry into force of the new tariff. COM,I1/9 Page 12

Non-tariff Measures:

Variable price supplements are applied to imported fodder with a view to adapting the number of livestock to the fodder production of the enterprise and of the country, and so as to limit livestook production. These price supplements are fixed on the basis of world prices and production costs for domestic fodder; the situation regarding market outlets for livestock production is also taken into account. Receipts from the price supplements are used to pay cultivation premiums on fodder cereals, for the disposal of colza and dairy products, and for the placing of livestock reared in mountain areas.

Other Measures:

The Confederation grants cultivation premiums on fodder cereals (barley, oats and maize) in order to encourage cultivation and ensure an adequate state of preparedness in this field, The price supplements applied to imported fodder balances to some extent the cost of domestic fodder cereals.

Cultivation premium per hectare Supplement Supplement for mountain for mountain Area Basic zone I (up zone II (above Total cultivation Year cultivated premium to 1,000 m.) 1,000 m. ) premium paid ha Fr. Fr. Fr. (in millions of Francs) 1956 64,9001 230.- 60,- 110»- 15.2 1957 48,700 250.- 60.- 120.- 12.4 1958 45,200 300.- 60.- 120.- 13.6

Domestic fodder cereals are used almost entirely on the farm where they are grown and only come onto the market in very small quantities. Imports are controlled by the Swiss Co-operative Society for Cereals and Fodder, to which all fodder importers belong. It takes over the imported product at the frontier aiiA releases it to the importer after payment of the price supplement fixed by the Federal Council. Import quotas are fixed in accordance with requirements and with commercial and agricultural policy.

Statistical information: Production oats, barley, Imports Production in % Year maize Items 3,4.7 Exports Consumption of consumption t t t t % 1934/38 32,700 430,600 0 463,300 7 1953 155,400 382,700 0 538,100 29 1954 140,300 360,000 0 500,300 28 1955 133,800 382,200 0 516,000 26 1956 188,700 398,100 0 586,800 32 1957 140,600 436,900 0 577,500 24 1953/57 151,800 392,800 0 543,800 28

Extraordinary cultivation of spring fodder cereals because of the damage caused by frost to autumn bread cereals. C0M.II/9 Page 13

E. SUGAR

Tariff Measures:

Present Swi3S Customs Tariff

Rate of Duty Tariff (in Sw.frs, per Item No. Description of Products 100 kgs. gross) Bqund Rate

68 a Raw sugar (for refining in Switzerland's only refinery) 18.- not bound 68 b Crystallized sugar, glucose, etc. 22.- 11 it 69 Crushed sugar, waste sugar, refined 25.- it 11 70 Other sugar 27.- u n

New Swiss Customs Tariff

17 01. Beet sugar and cane sugar, solid: 10 - raw sugar for refining 18.- not bound 20 - crystallized sugar; sugar candy 22.- it n 30 - crushed sugar, waste sugar, refined 25.- tt H 40 - sugar in loaves, blocks, etc. 27.- It u 50 - sugar in small cubes, etc. 27.- II II

Non-tariff Measures:

The price and taking over of sugar beet are guaranteed under cultivation contracts concluded with Switzerland's only sugar refinery. The prioe for sugar beet is fixed by the Federal Council. The Confederation covers any deficit incurred by the refinery up to 50 per cent, but in recent years this safeguard has not been resorted to. Statistical Information: (in quantities of refined sugar) National Imports Exports Production in % of Year product ion IT, ems 68a - 70 Consumption quantity available t t t t % 1934/38 136,600 9,100 128,500 1,000 7 I67,400 194,600 1954 30,100 2,900 15 1955 157,500 2,800 184,800 30,: 30 16 1956 204,900 2,100 233,200 30,400 13 192,500 2,200 224,100 1957 33,800 15 1958 227,700 3,500 257,800 13 33,600 1954/58 190,000 2,700 218,900 14 31,600 COM. 11/9 Pago U

IP. VEGETABLE FATS AND OILS

Tariff jrlaasuros: See replies to the questionnaire of Committee III (annexed). Non-tariff Measures; In order to keep a minimum amount of land available for periods when, national supplies might be in difficulty, and also to encourage crop cultivation, the Federal Council fixed each year the acreage to be put under colza. The Confederation guarantees prices and disposal to the producers. The price for colza is fixed by the Federal Council. The Confederation pays any differenae between the cost of taking over, delivering and processing colza, and receipts from sales of colza products.

Area Quantity Year cultivated delivered Take -over price Contribution to losses ko. t Fr. (in millions of Frs») 1956 3,800 6,000 1.10 2.1 1957 3,900 5,000 1.20 3,2 1958 4,800 9,800 1,20 5.6 Imports of fats and oils and raw materials for fats are controlled in the same way as imports of fodder cereals (Swiss State-trading). Statistical Information National Quantity National production in Year production Importa Exports available % of quantity available t t t t % 1934/38 0 28,000 0 28,000 1953 1,700 41,400 1,500 41,600 1 1954 2,100 50,000 900 51,200 4 1955 2,500 50,200 1,900 50,800 5 1956 2,500 53,900 4,700 51,700 5 1957 2,000 59,000 1,400 59,600 3 1953/57 2,100 50,900 2,100 50,900 4 O0M.II/9 Page 15

G. FISH

Tariff Measures:

Present Swiss Customs Tariff

Rate of Duty Tariff (Sw.frs. per Item No, Description of Products 100 kga. gross) Bound Rate

Fresh or frozen fish: 87 a - fresh-water fish, other than fera and trout 2.- not bound fera 2.- 11 11 a - - trout 15.- 11 11 b - salt-water fish -.50 11 11 Fish, dried, salted, marinated, smoked, etc,: 88 - in containers weighing more than 3 kgs. 2.- bound with rr 30.- for certain preserves 89 a in containers weighing not more than 3 kgs.: salmon, sardines (pilchards), herring in tomato sauce 10.- bound with US in containers weighing not more than 3 kgs.: other 20.- bound with IT 30.- for certain preserves

New Swiss Customs Tariff

03 01. Fish, fresh, chilled or frozen: - fresh-water fish 10 trout 15.- GATT 12 - - other, whole 3.- GATT 14 - - fillets 5.- G^TT 20 - salt-water fish -.50 GATT 03 02. Fish, salted, in brine, dried or smoked, in containers of: 10 - more than 3 kgs. 2.- GATT - not more than 3 kgs,: 12 salmon 10.- bound with US 14 other 20.- not bound C0M.II/9 Page 16

Rate of Duty Tariff (Sw. frs. per Item No. Description of Products 100 kgs. gross) Bound Rate

16 04. Prepared or conserved fish: 10 - fillets nf salt-water fish, breaded -.50 not bound - other, in containers of: 20 - - more than 3 kgs. 2.- GATT - - not more than 3 kgs.: 22 - - - sardines (pilchards) and herring, in tomato sauce, salmon 10.- Bound with US and GATT 24 other 20.- GATT

Non-tariff Measures:

Up to the present time, there has been no special protection for professional fishing.

Statistical Information:

Domestic production Production . Imports Exports ; in % of quantity Year Items 87a,87a 87a^,87b, 88,89a, ,89b Available available t t t t % 1934/38 2,000 6,400 400 8,000 25 1954 1,200 10,300 400 11,100 11 1955 1,300 12,100 500 12,900 10 1956 1,600 13,400 800 14,200 11 1957 1,900 13,900 800 15,000 13 1958 1,900 12,900 600 14,200 13 1954/58 1,600 12,500 600 13,500 12