Swiss Parliament Backs Mercosur Trade Deal with Financial Aid for Farmers
Swiss Parliamentary Approval and Implications of the Mercosur Trade Deal
Background and Parliamentary Proceedings
ZURICH, Sept 16 (Reuters) - Switzerland's lower house of parliament on Wednesday approved a trade agreement with the South American bloc Mercosur days after the upper house had given its backing to the corresponding bill, which also contains financial support for Swiss farmers.
Initial Rejection and Subsequent Approval
The lower house initially rejected the Mercosur deal in June, but approved it after lawmakers included financial aid for farmers worth 517 million Swiss francs ($631 million) over six years to cushion the effects of the agreement.
Impact on Swiss Agriculture
Farming is a sensitive policy area in Switzerland and the trade accord is likely to be put to a referendum under the country's system of direct democracy.
Details of the EFTA-Mercosur Agreement
Member States and Voting Results
The deal between member states of the European Free Trade Association, or EFTA, and the core Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay passed the lower house with 118 votes in favour and 66 against. There were 10 abstentions.
Switzerland's Role in EFTA
Switzerland is the biggest economy in EFTA, which also includes Norway, Iceland and Liechtenstein.
($1 = 0.8188 Swiss francs)
(Writing by Dave GrahamEditing by John Revill and Ludwig Burger)
