Half a billion to the farmers to save the agreement with Mercosur

Context

In short

• The Foreign Policy Committee of the Council of States proposes 517 million francs for Swiss farmers.
• The free trade agreement with Mercosur is at risk after the rejection by the National Council.
• The left threatens a referendum if deforestation and forced labor are not excluded.

Key facts

• What: Proposal of 517 million francs for Swiss farmers.
• When: Discussion in autumn.
• Where: Council of States.
• Who: Foreign Policy Committee of the Council of States.
• Amount: 517 million francs.

The Foreign Policy Committee of the Council of States is ready to make an important concession to Swiss farmers to save the free trade agreement with Mercosur countries. On Friday, it expressed its support for granting just over half a billion francs to Swiss producers. The agreement will now be discussed by the full chamber of the Council of States during the next session, following the rejection by the National Council last June. The left maintains the threat of a referendum.

In June, the farmers' lobby exerted its political weight to derail the agreement negotiated between the European Free Trade Association countries (Switzerland, Norway, Liechtenstein, and Iceland) and Mercosur at the National Council. An agreement born after 8 years of negotiations, seen as an important outlet for Swiss products on a market of 270 million people, but perceived as a danger by Swiss farmers and livestock breeders, who fear heavy losses due to the arrival of low-cost products with lower standards than those required of them.

Implications for Swiss Agriculture

The proposal by the Foreign Policy Committee of the Council of States to grant 517 million francs to Swiss farmers represents an attempt to balance the concerns of the agricultural sector with the economic interests linked to the free trade agreement with Mercosur. This amount, although lower than the over 800 million francs requested by the agricultural world, is significantly higher than the 158 million francs provided by the Federal Council.

The issue goes beyond Mercosur; it is about supporting the concept of an economic policy based on free trade agreements to promote our exports. The Council of States will vote in the autumn session starting on September 14, and the proposal should gather the necessary votes to send a compromise to the National Council that would turn many "no" votes from the right into "yes" votes, leaving the left in the minority.

If the Amazon rainforest and forced labor are excluded from the agreement, the referendum remains on the table, as indicated by the Social Democratic Party councilor from Solothurn, Franziska Roth. Proposals to ban the import of goods produced, wholly or partly, with forced labor and to adopt the EU's deforestation regulations were both rejected, with 9 votes to 4 and 8 votes to 4 with 1 abstention, respectively.

The final word on the free trade agreement with Mercosur countries could then be up to the people.

Operational details

Practical Analysis

The free trade agreement with Mercosur represents a significant challenge for Swiss agriculture. Swiss farmers and livestock breeders fear that the arrival of low-cost products with lower standards could jeopardize their economic sustainability. The proposal of the Foreign Policy Committee of the Council of States to grant 517 million francs to Swiss producers is an attempt to mitigate these concerns.

Comparison with the Previous Situation

Before the Committee's proposal, the Federal Council had planned only 158 million francs to support Swiss farmers. The new proposal represents a significant increase, although it does not reach the over 800 million francs requested by the agricultural world. This increase could help compensate for potential losses due to competition from imported products from Mercosur.

Possible Scenarios

If the free trade agreement with Mercosur is approved with the conditions proposed by the Committee, Swiss farmers would receive significant financial support. However, the left has threatened a referendum if deforestation and forced labor are not excluded. This could lead to a popular vote that will decide the fate of the agreement.

Implications for the Swiss Economy

The free trade agreement with Mercosur could open new opportunities for Swiss exports but also create challenges for the agricultural sector. The Foreign Policy Committee of the Council of States is seeking to find a balance between these conflicting interests by proposing financial support for Swiss farmers.

Conclusion

The proposal of the Foreign Policy Committee of the Council of States to grant 517 million francs to Swiss farmers is an important step towards safeguarding the free trade agreement with Mercosur. However, the threat of a referendum by the left and concerns about deforestation and forced labor could further complicate the situation.

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Key points

Action: What to do in Switzerland

If you are a Swiss farmer interested in the financial support proposed by the Foreign Policy Commission of the Council of States, it is important to closely follow the developments of the free trade agreement with Mercosur. The Chamber of Cantons will discuss the proposal during the autumn session starting on 14 September.

Step-by-Step Procedure

1. Be informed: Follow the news and updates on the free trade agreement with Mercosur and the proposal of the Foreign Policy Commission of the Council of States. 2. Participate: If possible, participate in discussions and votes related to the agreement. Your voice is important to influence the end result. 3. Prepare: If the agreement is approved, prepare to benefit from the proposed financial support. This could include submitting applications to access funds.

Useful Tools

For more information and support, please refer to the following tools:

• calculator: Salary/tax calculator.
• exchange: Comparator CHF/EUR (currency exchange).
• health: LAMal/sick fund.

Conclusion

The free trade agreement with Mercosur and the proposed financial support for Swiss farmers represent a complex challenge, but also an opportunity for the Swiss economy. Follow developments closely and be prepared to benefit from the opportunities that may arise.

Source: rsi.ch