The Senate approves the agreement with Mercosur.
Keystone-SDA
The Swiss Senate approved the trade agreement with Mercosur on Monday by 35 votes to seven. It also allocated CHF517 million ($630 million) to Swiss agriculture.
The treaty now returns to the House of Representatives, where it had been narrowly rejected.
The CHF517 million budget is spread over the period from 2028 to 2033. It serves as a compromise. The proposal had been rejected by the House of Representatives in June following an outcry from farmers.
The sector had demanded CHF880 million between 2028 and 2035. Its proposal was ultimately rejected. The agreement was then narrowly rejected in the final vote.
The political left played a part in this failure. It voted against the agreement after seeing all its proposals to combat deforestation and forced labour rejected. These same proposals were once again rejected by the Senate on Monday.
No link to the agricultural situation
The agreement concluded last year between EFTA – of which Switzerland is a member – and the South American bloc Mercosur is expected to yield savings of CHF150 million a year in customs duties. Swiss exports will benefit from favourable tariffs.
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In return, Switzerland must import South American quotas. More meat and wine from Argentina, Brazil, Uruguay and Paraguay will find their way onto Swiss soil. This is causing farmers to fear for their livelihoods and environmentalists to worry about the climate.
For Economics Minister Guy Parmelin, the difficulties currently facing the agricultural sector are not linked to the trade agreement with Mercosur – an agreement which, incidentally, benefits agricultural exports, he says. He also assures that the deal will not lead to an increase in trade resulting from deforestation.
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Translated from French, reviewed by an English Department journalist.
