The Swiss State Council approved the free trade agreement with the Mercosur bloc on Monday with 31 votes in favor, 7 against, and 3 abstentions. This agreement was passed after being previously rejected by the National Council, the lower house of Switzerland, during the summer session.
Financial Support for Swiss Farmers
The State Council also approved 517 million Swiss francs (equivalent to 646 million dollars) to support Swiss farmers in order to compensate for the anticipated impacts of this agreement on domestic agriculture. This action came in response to concerns about the impact of duty-free imports of agricultural products, including meat and wine, from South America.
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Addressing Criticism
Opponents of the agreement, including the Social Democratic Party and the Green Party, called for additional measures to address environmental issues and forced labor related to this agreement. However, the State Council rejected these proposals and only voted in favor of additional funding for farmers.
The Swiss Farmers' Union initially opposed compensation of 158 million Swiss francs (equivalent to 197 million dollars) and demanded funding of around 880 million Swiss francs (equivalent to 1.1 billion dollars). These requests were raised due to concerns about the impact of agricultural imports, especially meat and wine.
Implications of the Agreement
The approved agreement includes four measures aimed at maintaining the competitiveness of Swiss agriculture. At the same time, the Green Party has threatened to hold a referendum if the agreement is approved without additional environmental and social measures.
The National Council is expected to review this agreement soon, likely on September 23. The recent decision by the State Council could have significant impacts on the agricultural and trade industry in Switzerland.
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