RESTRICTED
WORLD TRADE G/STR/Q1/CHE/5
16September 1996
ORGANIZATION(96-3583)
Original: English Working Party onState Trading Enterprises
REPLY TOQUESTION POSED BYNEW ZEALAND1CONCERNING
THE ARTICLE XVII NOTIFICATION OFSWITZERLAND2
Thefollowing communication, dated 9September 1996, hasbeenreceived fromthePermanent
Mission ofSwitzerland.
_______________
Question
Wewould liketoknow, inthelightoftheoutcome oftherecent Trade Policy Review of
Switzerland, whether Switzerland intends tonotify theSwiss Cheese Union (USF) asaState Trading
Enterprise falling under thedefinitions contained inArticle XVIIandtheUruguay Round Understanding.
NewZealand believes thattheUnion isnotifiable since itimplements anobligatory delivery scheme
forSwitzerland 'smaincheese varieties, itrelies onaguaranteed commission regardless oftheactual
terms ofsales anditslosses arecovered bytheConfederation 'sdairy account. Italsoadministers
export subsidies forthesecheese varieties andadministers several bilateral agreements affecting exports.
Thus, byvirtue ofitspurchases andsales, itwillhaveasignificant impact onthelevelanddirection
oftrade.
Answer
TheSwiss Cheese Union (SCU) isaprivate body withagovernmental mandate forexport
marketing ofthreecheese types (Emmental, Gruyère andSbrinz). TheSCUdetermines themarketing
principles forsubsidized exports ofthese cheeses andallocates theexport subsidy entitlements toits
members.
Thefuture oftheSCU ispresently being discussed. Subject tofuture regulatory changes
Switzerland isprepared tore-examine thequestion ofwhether theSCU should benotified under
Article XVII notification procedures. Indoing so,Switzerland willtakeintoaccount theprogress of
work concerning theIllustrative Listasmentioned intheUnderstanding ontheInterpretation of
Article XVII oftheGeneral Agreement onTariffs andTrade 1994.
1G/STR/Q1/CHE/3.
2G/STR/N/2/CHE.