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, Stracchino, Crescenza, Robiola, Italico 8.- bound IT. (25.-, 40.-, 50,-) 98 b - other 20.- not bound 99 a Hard cheese: - Grana (Parmesan, Lodigiano and Reggiano) 8.- bound IT (this item also covers: (50.-) Asiago, Bitto, Brà, Cacio-Cavallo, Canestrato, Fontina, Montasio, Pecorino, Provolone) 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, Gorgonzola, Roquefort 25.- GATT* 12 - - Brie, Camembert, Crescenza, Italico, Mascarpone, Mozzarella, Pont-1'Evêque, Reblochon, Ricotta Romana, Robiola, Stracchino 30.- GATT 14 other 50.- not bound - hard or medium-hard cheese: 20 - - blue-veined cheese 40.- n n 22 - - Caciocavallo, Canestrato (Pecorino Siciliano), Fontina de la Vallée d'Aoste, Grana, Pecorino (Pecorino Romano, 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.