   
  
G/SCM/N/372/CHE  
 
11 March  2022 
(22-2221) Page: 1/24 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE  
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
SWITZERLAND  
The following communication, dated 28 February 2022 and received  on 3 March  2022, is being 
circulated at the request of the  delegation of Switzerland.  
 
_______________  
 
 
  G/SCM/N/372/CHE  
 
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  Contents  
1   REGIONAL POLICY  ................................ ................................ ................................ ...... 3 
2   ENVIRONMENTAL POLICIES  ................................ ................................ ........................  4 
2.1   CO2-TAX REFUND TO SPECIFIC INDUSTRY SECTORS  ................................ .......................  4 
3   FORESTRY  ................................ ................................ ................................ ...................  6 
4   ENERGY POLICY  ................................ ................................ ................................ ..........  7 
4.1   GRANTS FOR  RENEWABLE ENERGY INVESTMENTS  ................................ ..........................  7 
4.2   GRANTS FOR GEOTHERMAL EXPLORATION  ................................ ................................ ..... 8 
4.3   MARKET PREMIUM FOR LARGE HYDRO POWER PLANTS  ................................ ....................  9 
5   PETROLEUM TAX REFUNDS  ................................ ................................ ........................  10 
6   AGRICULTURE  ................................ ................................ ................................ ...........  12 
6.1   AGRICULTURAL POLICY 2014 – 2021 ................................ ................................ ............ 12 
6.2   DAIRY PRODUCTS  ................................ ................................ ................................ ......13 
6.3   BOVINE MEAT  ................................ ................................ ................................ ............ 14 
6.4   WOOL  ................................ ................................ ................................ ....................... 15 
6.5   EGGS  ................................ ................................ ................................ ........................ 15 
6.6   TOBACCO  ................................ ................................ ................................ .................. 16 
6.7   PROTEIN  ................................ ................................ ................................ ..................  17 
6.8   OILSEEDS  ................................ ................................ ................................ ................. 18 
6.9   SUGAR BEET  ................................ ................................ ................................ .............. 19 
6.10   SEEDS  ................................ ................................ ................................ ..................... 20 
6.11   FRUIT  ................................ ................................ ................................ ...................... 21 
6.12   WINE  ................................ ................................ ................................ ...................... 22 
6.13   CEREALS  ................................ ................................ ................................ ................. 23 
  G/SCM/N/372/CHE  
 
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  1  REGIONAL POLICY  
1. Title of the programme  
 
Tax relief on the basis of the Federal Law on Regional Policy (since 1 January 2008).  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
Create or maintain jobs in clearly defined, structurally weak areas. These areas show a low level of 
structural, economic and social development and are mostly located in rural areas covering 10% of 
the Swiss population. They shall be enabled to engage in value -added activities with the ult imate 
objective to reduce regional disparities. Since 1 July 2016, spatial planning considerations are taken 
into account in addition to structural weakness.  
 
4. Background and authority  
 
Legal basis:  
 
- Art. 12 of the Federal law of 6 October 2006 on regional policy (status as of 
1 January  2008) . 
- Ordinance of 3 June 2016 on the Granting of Tax Relief within the Scope of Regional 
Policy (status as of 1 July 2016, replaces the Ordinance of 28 November 2007 on the 
Granting of Tax Relief within the Scope of Regional Policy) . 
- Ordinance of the EAER of 3 June 2016 on the Determination of the Municipalities Falling 
Within the Areas of Application for Tax Relief (status as of 1 July 2016, Replaces the 
Ordinance of 28 November 2007 on the Determination of the Areas  of Application for Tax 
Relief) . 
- Ordinance of the EAER of 3 June 2016 on the Granting of Tax Relief within the Scope of 
Regional Policy (status as of 1 July 2016) . 
Authority:  
 
State Secretariat for Economic Affairs SECO / Federal Department of Economic Affairs, Education 
and Research EAER.  
 
5. Form of the subsidy  
 
Partial or full tax relief granted in application of the federal law of 6 October 2006 on regional 
policy for a maximum duration of ten years. Since 1 July 2016, the tax relief is granted  as an 
absolute amount (instead of a percentage).  
 
6. How the subsidy is granted and to whom  
 
Tax reliefs are granted to industrial  companies. The project has to create or maintain jobs in clearly 
defined, structurally weak areas (areas of application).  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
The overall volume of foregone tax on the basis of the Federal law of 6 October 2006 on regional 
policy amounts to approximately CHF 44 million pe r year (average 2008 – 2018). The overall volume 
of foregone tax on the basis of decisions issued after the 1 July 2016 amounts to approximately G/SCM/N/372/CHE  
 
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  CHF 0.8 million per year (average 2016 - 2018). According to general tax law, figures are available 
only after 3 years . 
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
The Federal law on regional policy of 6 October 2006 is not limited in time.  
 
The tax reliefs are granted for a maximum duration of ten years.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
In the period 2008 to 2021, 148 projects were granted tax relief, i.e. 10.6 projects per year on 
average . 
 
2  ENVIRONMENTAL POLICIES  
2.1  CO2-TAX REFUND TO SPECIFIC INDUSTRY SECTORS  
1. Title of the programm e 
 
Refund of the CO2 levy (Art. 31 and Art. 32 a of Federal Act on the Reduction of CO2 Emissions (CO2 
Act) of 23 December 2011 (status as of 1 January 2020).  
 
2. Period covered  
 
2015 - 2020. 
 
3. General goal and/or purpose of the subsidy  
 
The refund of the CO2 levy aims to avoid an undesirable disadvantage of the competi tiveness of 
companies that are exposed to international competition.  
 
4. Background and authority  
 
Background : 
 
The CO2 levy on heating and process fuels was introduced in January 2008 at an initial rate of CHF 
12 per tonne of CO2. It was increased to CHF 36 per tonne CO2 in January 2010, to CHF 60 per 
tonne of CO2 in January 2014, to CHF 84 per tonne of CO2 in January 2016 and to CHF 96 per tonne 
CO2 in January 2018. The CO2 Act sets a maximu m of the levy at CHF 120 per tonne of CO2  
 
The CO2 Act allows for exemptions (refund of the levy) from the CO2 levy for energy intensive 
industries either by participation in the Emissions Trading Scheme (ETS) or by commitments to 
emission reductions (nonE TS). Furthermore, since the beginning of 2018, operators of fossil fuel -
based combined heat and power plants (CHP plants) can be exempted from the CO2 levy on fossil 
fuels they use for electricity production . 
 
- ETS: Introduced in 2008, enlarged and aligned with the EU -ETS for the period 2013 -
2020. Large, greenhouse gas -intensive companies are required to participate in ETS, 
while medium -sized companies may voluntarily participate. The companies participating 
in the ETS are exempted from the CO2 levy. CO2 lev y exemptions of mandatory ETS 
companies are not included in levy refunds listed below . 
- nonETS: Companies of certain sectors that are particularly affected by the CO2 levy, 
may apply for exemption from the CO2 levy, provided the company commits to emission 
reductions in return. The eligible sectors of the economy are referred to in Annex 7 of 
the CO2 Ordinance. For further information see : G/SCM/N/372/CHE  
 
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  www.bafu.admin.ch/bafu/en/home/topics/climate/info -specialists/climate -policy/co2 -
levy/exemption -from-the-co2-levy-for-companies.html  
- CHP plants: Companies that operate CHP plants can be refunded the CO2 levy on fossil 
combustible fuels that were used for electricity production. However, while 60% of the 
refund is granted without further obligations, the remaining 40% is refunded subject to 
investments of this amount in measures to increase energy efficiency. For further 
information see:  
www.bafu.admin.ch/bafu/en/home/topics/climate/info -specialists/climate -policy/co2 -
levy/exemption -from-the-co2-levy-for-companies.html  → Exemption from the CO2 levy 
for CHP plants . 
 
Legal basis:  
 
- Federal Act on the Reduction of CO2 Emissions (CO2 Act) of 23 December 2011 (status 
as of 1 January 20 20): 
https://www.admin.ch/opc/en/classified -compilation/20091310/index.html . 
- Ordinance for the Reduction of CO2 Emissions CO2 Ordinance) of 30 November 2012 
(status as of 1 November 20 20): 
https://www.admin.ch/opc/en/classified -compilation/20120090/index.html . 
Authority:  
 
• Federal Office for the Environment FOEN / Federal Department of the Environment, 
Transp ort, Energy and Communications DETEC . 
• Swiss Custom Administration SCA / Federal Department of Finance FDF . 
5. Form of the subsidy  
 
Refund of CO2 levy . 
 
6. How the subsidy is granted and to whom  
 
nonETS: The refund of the CO2 levy is granted only to companies covering an activity referred to in 
Annex 7 of the CO2 Ordinance. Eligible companies have to commit to reducing greenhouse gas 
emissions on the basis of a fixed emissions reduction target. Sma ll companies also have the 
possibility to set a target solely based on effective emissions reductions measures. If a company 
fails to fulfil its target, a sanction of CHF 125 for each excess tonne CO2eq emitted has to be paid 
and an emission reduction cert ificate for each excess tonne has to be surrendered.  
 
CHP plants: The refund of the CO2 levy is granted only to companies that operate plants with a rated 
thermal input of 0.5 to 20 MW. When a company does not fulfil its investment requirement on time, 
the FOEN will order the company to pay back 40 percent of the refunded CO2 levy on fossil 
combustible fuels that were used for electricity production.  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgetized annual 
amount of the subsidy  
 
The CO2 levy that was refunded by the Swiss Customs Administration to exempted companies 
(without mandatory EHS) was 97 CHF million in 2015 (1.618 mio t CO2 * 60 CHF / t CO2), 139 CHF 
million in 2016 (1.655 mio t CO2 * 84 CHF / t CO2), CHF 141  million in 2017 (1.674 mio t CO2 * 84 
CHF / t CO2), CHF 158 million in 2018 (1.649 mio t CO2 * 96 CHF / t CO2). CHF 163 million in 2019 G/SCM/N/372/CHE  
 
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  (1.695 mio t CO2 * 96 CHF / t CO2) and CHF 157 million in 2020 (1.638 mio t CO2 * 96 CHF / t 
CO2). Data on the amount o f refunds in 2021is not yet available.  
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
In 2021, the Swiss people rejected the proposed reform of the Federal Act of 23 December 2011 on 
the Reduction of Greenhouse Gas Emissions (CO2 Act). Even if the total revision of the CO2 Act was 
rejected by the people in the referendum vote on 13 June 202 1, nonETS companies will remain 
exempt from the CO2 levy (reduction commitment). The legal basis for this is a partial revision of 
the CO2 Act based on the initiative parliamentary 21.477 "Extensions of the reduction targets in the 
current CO2 Act ", which is to enter into force retroactively on 1 January 2022 and regulate the 
reduction obligation until the end of 2024 . 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Statistical data indicating trade effects is not available.  
 
3  FORESTRY  
1. Title of the subsidy programme  
 
New system of fiscal equalization and division of tasks (NFE) between the federal government and 
the cantons.  
 
2. Period covered  
 
2019 - 2020. 
 
3. Policy objective and/or purpose of the subsidy.  
 
Compensation to forest owners for services rendered to the public . Subsidies are paid in accordance 
with the Federal Act on Forests (ForA). The principles of this financing system are indicated in 
Art. 35 ForA.  
 
4. Background and authority for the subsidy  
 
Federal Act on Forests (1991) [SR 921].  
https://www.fedlex.admin.ch/eli/cc/1992/2521_2521_2521/en  
 
Federal Ordinance on Forests [SR 921.01].  
https://www.fedlex.admin.ch/eli/cc/1992/2538_2538_2538/en  
 
5. Form of the subsidy  
 
Since 2008 the new system of fiscal equalization and division of tasks (NFE) is in force. This system 
also concerns the assistance in the field of forestry. Assistance is allocated in the form of indemnities 
and financial assistance.  
 
6. How the subsidy is granted and to whom  
 
The federal government and the cantons mainly provide comprehensive subsidies that favour the 
categories Protection For est, Forest Biodiversity and Forest Management. Generally, the 
contributions from the cantons are as least as high as those from the federal government. However, 
the cantons vary greatly in the requirements they have for their forests and what kinds of for est 
they have. These differences mean that the cantons also vary greatly in how they distribute their 
contributions across the categories. With the NFE the federal government introduced four -year long 
programme agreements between the federal government and  the cantons. The subsidies paid by 
the federal government and the cantons are managed by the cantons to achieve the common defined 
goals within the programme. The programme forest for the period 2020 -2024 includes the 
sub-programmes protection forest, for est biodiversity and forest management.  
 G/SCM/N/372/CHE  
 
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  7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
In 2019, the Confederation was engaged in programs amounting to CHF 160.3  million; in 2020, it 
was CHF 152.2 million.  The components of the federal contributions are: programme forest with the 
sub-programmes forest protection, forest biodiversity, forest management as well as protection 
against natural hazards, i nvestment forest credits  and div erse. 
 
Budget item  Account 2019  
(CHF million)  Account 2020  
(CHF million)  
Protection Forests  73.1 71.4 
Forest Biodiversity  20.0 19.9 
Forest Management  19.4 21.3 
Natural Hazards Protection  37.5 32.9 
Various Components  9.4 5.9 
Forestry Investment Loans  0.9 1.0 
Total  160.3*  152.2*  
*) Figures are rounded, rounding differences are possible.  
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
Starting 2008, four -year programmes (2008 -2011; 2012 -2015; 2016-2019) were introduced. The 
current period is exceptionally a five -year period (2020 -2024).  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
The effect of the assistance programme on trade is negligible, if not non -existen t. 
 
4  ENERGY POLICY  
4.1  GRANTS FOR RENEWABLE ENERGY INVESTMENTS  
1. Title of the subsidy programme  
 
Investment grants for photovoltaic, hydropower and biomass plants (Energy Act; SR 730.0 ). 
 
2. Period covered  
 
2017 - 2020. 
 
3. Policy objective and/or purpose of the subsidy  
 
Investment grants are an instrument that was developed by the Confederation for t he purpose of 
encouraging renewable energy production.  
 
4. Background and authority for the subsidy  
 
Legal Basis: Articles 25 to 27 of the Energy Act, dated 30 September 2016 ( SR 730.0 ). 
 
Authority: Swiss Federal Office of Energy ( www.bfe.admin.ch ). 
Implementing Agency of grants for photovoltaic systems: Pronovo ( www.pronovo.ch ). 
 
5. Form of the subsidy  
 
The grants are investment subsidies that cover a limited part of the investment costs of eligible 
projects:  
 
- Photovoltaic systems: max. 30 % of the investment costs.  
- Large hydro power plants: max. 35% of eligible investment costs for new plants and  
substantial extensions, max. 20% for substantial refurbishment, max. 40% for new G/SCM/N/372/CHE  
 
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  plants and substantial extensions with thanks to storage increase production of at least 
10 GWh.  
- Small hydro power plants: max. 60% of eligible investment costs for substant ial 
enlargement, max. 40% for substantial refurbishment.  
- Biomass plants: max. 20% of eligible investment costs.  
6. How the subsidy is granted and to whom  
 
The grants are provided to operators of new or significantly expanded or upgraded plants upon 
request an d subject to available funds.  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
Total amount of the subsidy  
 
Photovoltaic systems:  
2017: 100 Mio CHF  
2018: 200 Mio CHF  
2019: 300 Mio CHF  
2020: 380 Mio CHF  
 
Hydropower plants:  
2017: 0 Mio CHF (grants introduced on 1.01.2018)  
2018: 15 Mio CHF  
2019: 170 Mio CHF  
2020: 15 Mio CHF  
 
Biomass plants:  
2017: 0 Mio CHF (grants introduced on 1.01.2018)  
2018: 2 Mio CHF  
2019: 0 Mio CHF  
2020: 10 Mio CHF  
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
The grant scheme is limited in time and expires at the end of 2030.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
The programme has no or very limited effects on trade. Statistical data assessing such trade effects 
is not available.  
 
4.2  GRANTS FOR GEOTHERMAL EXPLORATION  
1. Title of the subsidy programme  
 
Investment grants for geothermal exploration (Energy Act; SR 730.0 ). 
 
2. Period covered  
 
2018 - 2020. 
 G/SCM/N/372/CHE  
 
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  3. Policy objective and/or purpose of the subsidy  
 
Increase electricity production from renewable energy sources to reach the goals defined in the 
Swiss Energy Act. Financial contributions for geothermal exploration activities that result in proving 
the presence of a geothermal reservoir suitable for power production . 
 
4. Background and authorit y for the subsidy  
 
Legal Basis: Article 33 of the Energy Act, dated 30 September 2016 (Energy Act; SR 730.0 ), and 
entered into force on 1 January 2018 . 
 
Authority: Swiss Federal Office of Energy ( www.bfe.admin.ch ) 
 
5. Form of the subsidy  
 
Investment grants are defined as a given percentage of the eligible investments. Eligible costs are 
costs associated with finding and assessing a geothermal resource for subsequent power production, 
including prospecting expenditures, and expenditures related to construction and reclamation of well 
pads; drilling, completions, logging and testing of wells; well stimulation an d subsurface monitoring . 
 
6. How the subsidy is granted and to whom  
 
Contributions may firstly be granted for surface prospecting activities with the goal of defining 
surface locations of wells and their paths to subsurface target points.  
 
Second, and after p rospecting activities have been successfully completed, contributions may be 
granted for drilling wells and associated activities that prove that a targeted potential reservoir exists 
and is suitable for power generation.  
 
The investment grants may amount to at most 60% of the eligible cost and are subject to availability 
of funds.  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
Total amount of the subsidy:  
 
2018: 0 Mio CHF  
2019: 75 Mio CHF 
2020: 25 Mio CHF  
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
The grant scheme was introduced on 1 January 2018. It is limited in time and expires at the end of 
2030.  
 
9. Statistical data enabling the effects of the subsi dy on trade to be assessed  
 
The programme has no or very limited effects on trade. Statistical data assessing such trade effects 
is not available.  
 
4.3  MARKET PREMIUM FOR LARGE HYDRO POWER PLANTS  
1. Title of the subsidy programme  
 
Market premium for electricity from large hydropower plants (Energy Act ; SR 730.0 ). 
 
2. Period covered  
 
2018 – 2020. 
 G/SCM/N/372/CHE  
 
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  3. Policy objective and/or purpose of the subsidy.  
 
The Market Premium is gr anted for electricity from hydropower plants of more than 10 MW, which 
is sold at a market price below its production cost. This scheme covers economic losses incurred by 
operators in order to promote the continuous production of electricity from renewable  energy 
sources.  
 
4. Background and authority for the subsidy   
 
Background: Since 2008, numerous hydropower operators have been unable to produce adequate 
returns on capital that led to a curtailment in maintenance and new investment.  
 
Legal Basis: Energy Act, dated 30 September 2016 and entered into force on 1 January 2018 
(Energy  Act; SR 730.0 ), Article 88 (f) of the Ordinance on the Promotion of Energy ( SR 730.03 ). 
 
Authority: Swiss Federal Office of Energy . 
 
5. Form of the subsidy  
 
Hydro power plants that sell electricity below production costs at the wholesale market are entitled 
to apply for a market premium of maximal 1 Swiss cent/kWh. Sales to captive customers, to w hich 
costs can be fully passed on, are excluded from this support scheme (Art. 31 Energy Act).  
 
In order to calculate the profitability of a hydro power plant the Swiss Federal Office of Energy 
(SFOE) published a guideline on allowable costs of generation  and a detailed application form 
together with other implementation documents.  
 
6. How the subsidy is granted and to whom  
 
The potential beneficiary must fill in a detailed application form by May 31. The Swiss Federal Office 
examines all the applications with a commissioned external inspection body and decides on the 
amount of the subsidy granted.  
 
The beneficiaries are those who carry the losses, i.e. the plant operator, the plant owner(s), or 
contractually obligated off -takers (retailers).  
 
7. Unit amount of the subsidy or, where this is not possible, total amount or budgeted annual 
amount of the subsidy  
 
The price premium is capped at maximum 1 Swiss cent/kWh for loss -making power sales if 
applications do not exceed available funds; otherwise, the price premium per kWh will be lower.  
 
Total amount of the subsidy:  
2018: 100 Mio CHF  
2019: 65 Mio CHF  
2020: 85 Mio CHF  
 
8. Duration of the subsidy and/or any other deadline connected with the subsidy  
 
The duration of the instrument lasts from 2018 to 2022 . Each year, potential beneficiaries need to 
apply for the premium until May 31 based on their financial statements of the previous financial 
year. 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Statistical data permitting a n assessment of the trade effects is not available.  
 
5  PETROLEUM TAX REFUNDS  
1. Title of the subsidy programme  
 
Mineral oil tax refund for specific intended use . G/SCM/N/372/CHE  
 
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  2. Period covered by the notification  
 
2019-2020. 
 
3. Policy objective and/or purpose of the subsidy  
 
Tax relief for mineral oil tax is granted based on the following objectives among others:  
 
- In the areas of agriculture and forestry, natural stone quarrying and commercial fishing, 
the objective is to reduce production costs for these sectors .  
- The licensed transport companies must provide legally regulated services that are in the 
public interest. This is why they are exempted from fiscal levies.  
- Regarding winter tourism, the objective is to improve the framework conditions by the 
refunds to opera tors of slope maintenance vehicles.  
4. Background and authority for the subsidy  
 
Mineral oil tax is a special consumption tax, which since 1997 has been levied by the Swiss 
Confederation on petroleum, other mineral oils, natural gas, their processed products and fuel. In 
addition to mineral oil tax, a mineral oil surtax is also levied on fuel.  
 
Goods may, depending on their use, be subject to differing tax rates. On the one hand, the tax tariff 
in Annex 1 to the Mineral Oil Tax Act (SR 641.61) makes the distinction between goods which are 
used as fuels and goods which are used in other  applications. On the other hand, the tariff of the 
tax reductions in the Annex to the Federal Department of Finance (FDF) Ordinance on Tax Reductions 
for Mineral Oil Tax (SR 641.612) contains reduced tax rates for certain uses.  
 
The Federal Office for Cu stoms and Border Security is responsible for the enforcement of mineral oil 
tax legislation and thereby the granting of tax relief.  
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc. ) 
 
Tax relief which is granted in the form of refunds of the di fference between the normal and reduced 
tax rate.  
 
6. To whom and how the subsidy is provided  
 
If fuels (petrol, diesel, natural gas, etc.) are used for one of the tax -privileged purposes listed below, 
after they have been consumed, the refund of the differen ce between the normal and reduced tax 
rate can be claimed.  
 
- Journeys of public transport companies;  
- Operation of slope maintenance vehicles;  
- Agriculture and Forestry;  
- Natural stone quarrying;  
- Commercial fisheries;  
- Certain stationary applications (among others powering of stationary electricity 
generation installations).  G/SCM/N/372/CHE  
 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
Tax relief amounting to CHF 163.0 million in  2019 and CHF 160.2 million in 2020 was granted by 
the Federal Office for Customs and Border Security.  
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement . 
 
With the exception of the refund of the mineral oil tax to natural stone quarrying (since 2007) and 
to operators of slope maintenance vehicles (since 2016), tax relief has been in existence since 
mineral oil tax was introduced in 1997. It is not limited in time.  
  
9. Statistical data permitting an assessment of the trade effects of the subsidy.  
 
Statistical data permitting an assessment of the trade effects is not available.  
 
6  AGRICULTURE  
6.1  AGRICULTURAL POLICY 2014 – 2021  
1. Title of the subsidy programme  
 
Agricultural policy 2014 – 2021 (AP 14 -21) – direct payments  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
The policy objective aims at:  
 
- the reliable provision of the population with foodstuffs  
- the conservation of natural resources and the upkeep of the countryside  
- decentralised population settlement of the country  
4. Background and authority  
 
a) Federal Law on Agriculture of 29 April 1998 (SR 910.1)  
b) Federal Ordinance of 23 October 2013 concerning direct payments (SR 910.13 direct 
payments ordinance)  
 
5. Form of the subsidy  
 
The new direct payment system comprises seven categories of payments, each targeted to a specific 
policy objective, with a total of 2 4 measures (20 20). The payments are distributed in the form of 
grants.  
 
6. How the subsidy is granted and to whom  
 
Payments are granted to agricultural producers.  
 G/SCM/N/372/CHE  
 
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  7. Amount of the subsidy per head  
General Summary of expenditure under the direct payment scheme1 
 2019 
(mio. CHF)  2020 
(mio. CHF)  
Payments for ensuring food security  1,077.3  1,076.8  
Farmland payments  526.0  524.0  
Payments for production systems  487.4  492.2  
Biodiversity payments  415.8  424.8  
Payments for landscape quality  145.6  146.3  
Resource efficiency payments  58.4 67.5 
Transitional payments  104.1  79.7 
 
8. Duration of the subsidy  
 
Payments will be in place until a new Agricultural Policy comes into force . 
 
6.2  DAIRY PRODUCTS  
1. Title of the subsidy programme  
 
Three types of supplements are in place: supplement for milk converted into cheese, supplement 
for non -silage feed and supplement for marketed milk.  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the supplement for milk converted into cheese is to encourage milk farmers to give 
added -value to the milk. Similarly, the supplement for marketed milk is to increase the added value 
by encouraging the milk supply to the food industry. The purpose of the supplement for non -silage 
feed is to encourage the use of grass as a more ecological and more expensive fodder in milk 
production.  
 
4. Background and authority  
 
Federal Act on Agriculture dated 29 April 1998 (RS 910.1), Article 38,Article 39  and Article 40 . 
 
5. Form of the subsidy  
 
Allowances  (grants) . 
 
6. How the subsidy is granted and to whom  
 
Supplements per kilo milk converted into cheese, per kilo milk of cows fed without silage and per 
kilo marketed milk . 
 
7. Amount of the subsidy per head  
 
Supplement for milk converted into cheese:  
2019: 197 '840'798 mio. CHF for a total of 1 '884'198'076 kilo of milk.  
2020: 192.2 mio. CHF for a total of 1 '830'039'076 kilo of milk.  
 
Supplement for non -silage feed:  
2019: 31.4 mio. CHF for a total of 1 '048'099'300 kilo of milk.  
2020: 30 '3 mio. CHF for a total of 1 '011'504'567 kilo of milk  
 
1 For a more detailed overview please consult the DS:1 notification of Switzerland in the WTO 
Agricultural Committee.  G/SCM/N/372/CHE  
 
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  Supplement for marketed milk  
2019: 149.5 mio. CHF for a total of 3 '322'004'689 kilo of milk  
2020: 149.4 mio. CHF for a total of 3 '320'139'044 kilo of milk  
 
8. Duration of the subsidy  
 
The supplements for milk converted into cheese and for non -silage feed  have been in force since 
1999, the supplement for marketed milk since2019 . 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Year Total production of milk, in tons  
2019 3'322'004 
2020 3'320'139 
6.3  BOVINE MEAT  
1. Title of the subsidy programme  
 
Contributions for the storage of veal meat . 
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the subsidy is to promote the storage of domestic veal meat. In 2020, an additional 
purpose of the subsidy was to limit the economic consequences in the bovine and veal meat sector 
resulting from the closure of the restaurants due to the COVID -19 pandemic.  
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
Federal Ordinance of 26 November 2003 concerning the meat market (SR 916.341: Meat ordinance).  
 
5. Form of the subsidy  
 
Contributions (grants) . 
 
6. How the subsidy is granted and to whom  
 
The Confederation can finance measures to facilitate the storage of domestic veal meat.  
 
7. Amount of the subsidy per unit  
 
Year Per unit (CHF per kg)  
2019 5.0 
2020 5.4 
 
8. Duration of the subsidy  
 
The subsidy has been  in place since 2003 . 
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade of veal meat (in tons)  
Year Production  Imports  Exports  
2019 20'839 514 2 
2020 19'886 580 2 G/SCM/N/372/CHE  
 
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  6.4  WOOL  
1. Title of the subsidy programme  
 
Purchase of domestic wool and projects including the use of wool ( "wool projects "). 
 
2. Period covered  
 
2019 - 2020. 
 
3. General goal and/or purpose of the subsidy  
 
There are at present some 340,000 heads of sheep, the majority of which are in mountain areas. 
The subsidy enables the Swiss wool industry to purchase domestic wool, while at the same time 
guaranteeing a contribution to producers to their production costs.  The contributions for wool 
projects enable the industry to develop processes for wool treatment and to promote wool products. . 
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy  
 
2019/20: The Confederation makes an annual contribution of approx. CHF 0.8 million for the 
professional treatment of domestic sheep wool and for wool projects.  
 
6. How the subsidy is granted and to whom  
 
2019/20: The subsidy is granted by the Confederation to recognized self -help organisations of sheep 
owners and wool processors. The contribution is based on the weight of transformed wool and based 
on project costs.  
 
7. Amount of the subsidy per unit  
 
Year Total (millions of CHF)  Per unit (CHF per kg)  
2019 0.59 (for the treatment of domestic sheep wool)  2.00 
2019 0.30 (for wool projects)   
2020 0.58 (for the treatment of domestic sheep wool)  2.00 
2020 0.18 (for wool projects)   
8. Duration of the subsidy  
The subsidy for the purchase of domestic wool was introduced in 1962. It is provided in two 
instalments  per year. Contributions for projects were introduced in 2003.  
 
9. Statistical d ata enabling the effects of the subsidy on trade to be assessed  
Production a nd trade of wool (in tons)  
Year Production  Imports  Exports  
2019 * 545 542 
2020 * 574 518 
*Number of total production of wool not collected . 
 
6.5  EGGS  
1. Title of the subsidy programme  
 
Contributions for the disposal of eggs  
 G/SCM/N/372/CHE  
 
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  2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the subsidy is to promote the disposal of domestic eggs in periods of over -production.  
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
Federal Ordinance of 26 Nov ember 2003 concerning the egg market (SR 916.371: Egg ordinance).  
 
5. Form of the subsidy  
 
Contributions (grants).  
 
6. How the subsidy is granted and to whom  
 
The Confederation can finance measures to facilitate the disposal of domestic eggs (cracking eggs 
and price reductions).  
 
7. Amount of the subsidy  
 
Year Total amount (millions of CHF)  
2019 1.9 
2020 2.0 
 
8. Duration of the subsidy  
 
Payments are usually made on a monthly basis during a calendar year.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Production, trade and consumption of eggs in shell (millions of eggs)  
Year Production  Imports  Consumption  
2019 1000 411 1'231 
2020 1064 439 1'281 
 
Exports are negligible.  
 
6.6  TOBACCO  
1. Title of the subsidy programme  
 
Tobacco production support . 
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
Help maintain tobacco production in traditional producing areas . 
 
4. Background and authority  
 
Federal law on tobacco taxation (RS 641.31) . 
 
Ordinance fixing producer prices and prices to manufacturers for local tobacco (RS 916.116.4) . G/SCM/N/372/CHE  
 
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  5. Form of the subsidy  
 
Payment to tobacco producers.  
 
6. How the subsidy is granted and to whom  
 
Production subsidy in favour of tobacco growers and for raw tobacco leaves processing.  The subsidies 
come from a fund constituted by a tax on cigarettes sold in Switzerland. The fund pays the difference 
between producer prices (to a maximum of the target prices set by the government for each quality) 
and the tobacc o price set by the government for the manufacturers . 
 
7. Amount of the subsidy  
 
Year Total amount (millions of CHF)  
2019 14.2 
2020 14.0 
 
8. Duration of the subsidy  
 
The subsidy has been  paid since 1984, now on the basis of the o ordinance of 18 December 1996 
fixing producer prices and prices to manufacturers for local tobacco.  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Year Production ('000 t)  Imports* ('000 t)  Consumption ('000 t)  
2019 1.1 22.7 22.4 
2020 1 19.00 18.7 
*Tariff heading 2401.1010/2010/3010 and 2403.9100/9940 - Tobacco (raw, waste, reconstituted)  
 
6.7  PROTEIN  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of protein.  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
Growing premiums for protein are one of the measures designed to safeguard producer income and 
support local production.  
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy  
 
Payment to the producer (grant).  
 
6. How the subsidy is granted and to whom  
 
Crop bonuses proportionate to the area under cultivation are allocated to domestic producers of 
high-protein peas and field beans. The bonuses are allocated annually in the Confederation budget.  
 G/SCM/N/372/CHE  
 
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  7. Amount of the subsidy  
 
Support measures   Millions of CHF  
  2019 2020 
Payment to the producer (1 '000 CHF per hectare)  Field beans and high-protein peas  5.3 5.2 
 
8. Duration of the subsidy  
 
The subsidy was paid on the basis of the ordinance of 23 October 2013 (RS 910.17).  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production, trade and consumption  
Field beans, high -protein peas  
Year* Production  
(thousands of tons)  Imports  
(thousands of tons)  Consumption  
(thousands of tons)  
2019  18.8  9.1  27.9 
2020  15.6  5.5  21.1 
* Exports are insignificant  
Tariff heading – 0713.1011/1091/5012/5091  
 
6.8  OILSEEDS  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of oilseeds.  
 
2. Period covered  
 
2019-2020.  
 
3. General goal and/or purpose of the subsidy  
 
The measures taken to promote arable farming are aimed at keeping a minimum area for the 
production of oil -seeds both for biological reasons linked to the need for a certain crop diversification 
and for reasons of maintaining domestic supply . 
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy  
 
Payment to the producer (grant).  
 
6. How the subsidy is granted and to whom  
 
The following subsidies are granted for rapeseed, sunflower seed, soybeans, oilseed flax, poppy, 
oilseed pumpkin and safflower: crop bonuses proportionate to the area under cultivation are 
allocated to domestic producers.  
 
7. Annual amount of the subsidy  
 
Support measures   Millions of CHF  
  2019 2020 
Payment to the producer (700 CHF 
per hectare except soyabeans)  
Payment to the producer (1 '000 
CHF per hectare for soybeans only)  Rapeseed, sunflower 
seed, oilseed pumpkin, 
oilseed flax,  poppy, 
safflower, soybeans  21.5 22.1 
 G/SCM/N/372/CHE  
 
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  8. Duration of the subsidy  
 
A support of oil production was introduced in 1951. The subsidy was paid on the basis of the 
ordinance of 23 October 2013 (RS 910.17).  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
The subsidy has made it possible to keep a minimum area under oil -seed production. Domestic 
production is equivalent to 20 -25% of Swiss average consumption of vegetable oils and fats.  
Production and trade (in tons)  
Year  Production  Import  Oil exports  
2019 Rapeseed  67'800 6'990 306 
Soybeans  5'350 12'500 85 
Sunflower seeds  17'700 4'800 188 
2020 Rapeseed  88'000 7'600 412 
Soybeans  5'250 10'650 208 
Sunflower seeds  12'300 5'500 308 
 
6.9  SUGAR BEET  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of sugar beet for sugar production.  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
In order to guarantee domestic supply, a subsidy to promote the production of sugar beet was 
introduced in 2008 and fully replaced the allowance to the sugar factories in 2009.  
 
4. Background and authority  
 
Art. 54 of the Federal Law on Agricultural of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy  
 
Payment to the producer (grant).  
 
6. How the subsidy is granted and to whom  
 
Crop bonuses are proportionate to the area under cultivation. They are allocated to domestic 
producers of sugar beet, which are used to produce sugar. To receive the grant, producers must 
have a written contract with a sugar processing factory.  
 
7. Amount of the subsidy per unit  
 
Year Support measures  Total (Millions of CHF)  CHF per hectare  
2019 Payment to the producer (grant)  33.6 2,100 
2020 Payment to the producer (grant)  36.8 2,100 
8. Duration of the subsidy  
 
The legislation funding subsidy for production of sugar was introduced in 1957. The subsidy was 
paid on the basis of the ordinance of 7 December 1998 for 2013 and of 23 October 2013 for 2014 
(RS 910.17).  
 G/SCM/N/372/CHE  
 
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  9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade of sugar (in tons)  
Year Production  Imports2 Exports3 
2019 239,000  71,200  4,100  
2020 226,000  83,800  4,300  
 
6.10  SEEDS  
1. Title of the subsidy programme  
 
Bonuses to promote the growing of plants seeds.  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
The seeds culture of food and feed crops must be maintained under the Swiss production conditions 
to ensure domestic supply.  
 
4. Background and authority  
 
Federal Law on Agriculture of 29 April 1998 (SR 910.1).   
 
5. Form of the subsidy  
 
Payment to the producer (grant).  
 
6. How the subsidy is granted and to whom  
 
The following subsidies are granted fo r production of seeds for potato, corn, d grass and leguminous 
plants. Crop bonuses proportionate to the area under cultivation are allocated to domestic producers . 
 
7. Amount of the subsidy  
 
Support measures   Millions of CHF  
  2019 2020 
Payment to the producer (1,000 CHF per hectare)  Seed production (grass, leguminous)  0.4 0.5 
Payment to the producer (700 CHF per hectare)  Seed production (potato, corn)  1.1 1.1 
 
8. Duration of the subsidy  
 
The subsidy was paid on the basis of the ordinance of 23 October 2013 (RS 910.17).  
 
9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade (in thousands of tons)  
Year  Production  Imports  Exports  
2019 Seed potatoes1 20.6 4.01 1.9 
Seed corn2 0.5 1.2 0.02 
Seed grass3 0.01 9.6 1.7 
2020 Seed potatoes  22.7 6.4 0.23 
Seed corn  0.39 1.3 0.02 
Seed grass  0.087  9.5 1.5 
1 Custom tariff heading: 0701.1010/1090  
2 Custom tariff heading: 1005.1000  
3 Custom tariff heading:  1209.21/22/23/24/25/29/30  
 
2 Customs tariff headings: 1701.12/91/99.  
3 Id. G/SCM/N/372/CHE  
 
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  6.11  FRUIT  
1. Title of the subsidy programme  
 
Promotion of domestic production.  
 
2. Period covered  
 
2019-2020. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the subsidy is to offer products at a competitive price within the scope of the 
promotion of rural development . Other measures in this sector are aimed at preventing a collapse 
in the prices of domestic products.  
 
4. Background and authority  
 
Federal Law on Agric ulture of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy  
 
The subsidies are granted according to a) and b)  
 
a) Subsidies to promote the utilization of surpluses. These are primarily intended for 
manufacturers of concentrated fruit juice to cover the additional costs resulting from the 
takeover of surpluses.  
b) In addition, subsidies are paid to manufacturers in order to create  competitive conditions 
to purchase Swiss fruit for processing. The subsidies are fixed sums per unit, which are 
determined accord ing to market conditions.  
6. How the subsidy is granted and to whom  
 
See replies to Question 5.  
 
7. Amount of the subsidy  
Total amount (in millions of CHF)  
Year Total  
2019 3.3 
2020 3.1 
 
Amount per unit  
 
The amounts per unit for the measures mentioned cannot be shown because they vary too widely 
with conditions and with the market situation.  
 
8. Duration of the subsidy  
 
For the measures during the period covered by the notification, see the replies to Question 5.  
 G/SCM/N/372/CHE  
 
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  9. Statistical data enabling the effects of the subsidy on trade to be assessed  
Production and trade  (thousands of tons)  
Year Production  Imports  
 Total4 of which apples  Chapter 08  Heading 
0808/0809  
2019 190 138 560 63 
2020 196 141 603 67 
 
The quantities of fruit exported (Chapter 08) correspond to:  
 
2019: 6992 tons 
2020: 4245 tons 
 
6.12  WINE  
1. Title of the subsidy programme  
 
Measure for the downgrading of AOC wines to table wine.  
 
2. Period covered  
 
2020. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the subsidy is to limit the economic consequences in the wine sector resulting from 
the closure of the restaurants due to the COVID -19 pandemic. An exceptional aid is granted to 
companies that declassify wines of controlled designat ion of origin (AOC wines) from the 2019 and 
previous years into table wine . 
 
4. Background and authority  
 
The measure is defined in the Ordinance of the 20 of May 2020 concerning the exceptional 
financial aid for the downgrading of wines with a controlled des ignation of origin into table wine in 
association with the coronavirus ( ordinance COVID -19 downgrading of wines;  SR: 916.141 ). 
 
5. Form of the subsidy  
 
Contributions to companies  
 
6. How the subsidy is granted and to whom  
 
The subsidies are granted in the form of contributions to companies that meet the requirements 
and conditions defined in Articles 3 and 4 of the ordinance Covid -19 downgrading of wines.  
 
7. Amount of the  subsidy  
 
The total amount of the subsidy is CHF 9.8 million.  
 
Amount per unit:  
The average amount is 165 CHF per hectolitre of downgraded AOC wine.  
 
8. Duration of the subsidy  
 
The subsidy was exceptional and in force only for 2020 . 
 
4 Apples, pears, quinces, cherries, plums and prunes, apricots, peaches and berries.  G/SCM/N/372/CHE  
 
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  9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Production and trade (in hl)  
Year Production  Imports1 
 white  red white  red 
2019 497,531 481,914 397,588 1,156,915 
2020 413,144 421,091 392,644 1,199,550 
1 Custom tariff heading: 2204.21, 2204.22 and 2204.29 . 
 
6.13  CEREALS  
1. Title of the subsidy programme  
 
Supplement for cereals . 
 
2. Period covered  
 
2019 - 2020. 
 
3. General goal and/or purpose of the subsidy  
 
The purpose of the supplement for cereals is to increase the added value by encouraging cereal 
producers to supply the raw material for the food industry.  
 
4. Background and authority  
 
Art. 55 of the Federal Law on Agricultural of 29 April 1998 (SR 910.1).  
 
5. Form of the subsidy  
 
Payment to the producer (grant).  
 
6. How the subsidy is granted and to whom  
 
In accordance with Art. 55 of the Agriculture Act in conjunction with Art. 4 of the Ordinance on 
Contributions to Special Crops (SR 910.17), the cereal supplement is paid for areas used to grow 
wheat, spelt, rye, starch, einkorn, barley, oats, triticale, rice, millet, sorghum and mixtures of these 
cereals  
 
7. Amount of the subsidy per unit  
 
Year Support measures  Total (Millions of 
CHF) CHF per hectare  
2019 Payment to the producer (grant)  15.6 128 
2020 Payment to the producer (grant)  15.7 129 
 
8. Duration of the subsidy  
 
The legislation funding subsidy for grains was introduced in 2019 . 
 G/SCM/N/372/CHE  
 
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  9. Statistical data enabling the effects of the subsidy on trade to be assessed  
 
Production and trade of grains ( thousands of tons ) 
Year Production  Imports5 Exports6 
2019 472.9  761.8  7.3 
2020 501.0  730.8  5.4 
 
 
 
__________  
 
5 Customs tariff heading: 10  
6 Id. 10  