GENERAL AGREEMENT ON TARIFS AND TRADE

Transcription

1 GENERAL AGREEMENT ON TARIFS AND TRADE RESTRICTED L/4/Add February 9 Limited Distribution Original: French STATE 'TRADING ENTERPRISES Notifications Pursuant to Article XVII:4(a in Reply to the New Questionnaire Contained in Document L/4'' SWITZERLAND I. Enumeration of Statetrading enterprises The bodies and commodities listed below can be said to come under Article XVII of the General Agreement:. Federal Wheat Administration 2. Swiss Cooperative Society for Fodder Grain and Feedingstuffs 3. BUTÏRA, Swiss Butter Supply Board 4, Federal Alcohol Administration 5. The Agricultural Division of the Department for Public Economy Bread grain (in part, bread flour Bread grain (in part, fodder grain and feedingstuffs, oils and fats Butter Alcohol (ethyl alcohol, alcohol of a strength of more than 5 per cent by volume Seed potatoes II, Reason and purpose for introducing and maintaining Statetrading enterprises The Statetrading enterprises were established and maintained in order to promote the general objectives of the Swiss policy in the field of agriculture and supplies: these objectives have already been outlined in documents COM.II/2/Rev.l and CM.II/9. "T?he alphabetical list of governments to the present document, notifications appears in the Appendix

2 L/4/Add.29 Page 2 The activities of these bodies do not go beyond what is strictly necessary. They often only imply control of imports through import permits issued without quantitative restrictions, fees or equalization taxes at the frontier and the exercise of supervision over storage and orderly marketing. Moreover, these operations are generally carried out by private enterprises which in fact constitute the Statetrading bodies. As Switzerland is primarily an importer as regards farm products, its Statetrading deals exclusively with imports. There is no Statetrading in nonfarm products. The situation is as follows for the various commodities: Bread wheat Under Article 23(2 of the Federal Constitution the Confederation is required to promote wheat cultivation in the country and to buy good quality wheat suitable for milling at a price permitting economic cultivation. The Confederation should also keep wheat reserves in order to maintain adequate national supplies. The Confederation also supervises the trade in and the prices of wheat, bread flour and bread. The provisions relating to these constitutional articles are to be found in the Federal Law on National Wheat Supplies (wheat law of 2 March 959, as well as in the relevant regulations and decrees. The Federal Wheat Administration (Board buys homeproduced bread whaat and sells it to millers. The Board may import wheat for the purpose of building up or replenishing reserves. It has a monopoly of bread flour imports which it only exercises, however, when necessary for the purpose of regulating price formation. The Board may also issue permits to industries for the importation of flour for technical purposes, for the preparation of products intended for export, as well as for the importation of hard wheat meal for the preparation of macaroni, spaghetti and similar products. Furthermore, the Swiss Cooperative Society for Fodder Grain and Feeding* stuffs is the only body authorized to import foreign wheat in the sense that it issues import permits without quantitative restrictions to dealers and millers. The Society acquires at the frontier the goods bought by the importers and sells it back to them after having levied a fixed price supplement proportionate to the amount of feed products obtained from the bread wheat in the course of milling operations.

3 L/I4/Add.29 Page 3 Fodder grain and feedingstuffs The Swiss Cooperative Society for Fodder Grain and Feedingstuffs was instituted by the Federal Decree of December 952. The Society is a public institution which includes all importers of fodder grain, feedingstuffs and of products from which feedstuffs can be derived, and also by importers of straw and hay. The Society's main task is to levy price supplements on wheat, feedingstuffs, products from which feedingstuffs can be obtained, and also on straw and hay. It is the only body authorized to import these products. Within the framework of a global quota fixed in accordance with current needs, it issues import permits to private importers. In particular cases, it may import goods directly. Its cooperation is also sought in the utilization of homeproduced potato surpluses, its members being liable to take over these surpluses if required to do so. Finally, the Society must help to build up reserve stocks for national economic defence. The price supplements levied on imports of feedingstuffs serve to reduce domestic livestock production, as livestock must be adjusted to the feed production of individual holdings and of the country as a whole. Fats, oils, oil seeds and dried milk The Federal Assembly Decree on milk, dairy products and edible fats (milk decree of 29 September 953 provides for taxes on imports of dried milk, fats and edible oils, including raw materials and semifinished products used in the preparation of such oils and fats. The proceeds of these taxes are designed to reduce the prices of homeproduced dairy products and edible fats and to widen their markets. For purposes of control, importation of these commodities comes under the sole competence of the Swiss Cooperative Society for Fodder Grain and Feedingstuffs which issues to private importers the necessary import permits without quantitative restrictions. The Society acquires at the frontier the goods bought by the importers and sells them back to them after levying a price supplement. Btttter The Federal Assembly Decree on milk, dairy products and edible fats (milk decree of 29 September 953, based on the agricultural law of 3 October 95, established the Swiss Butter Supply Board (BUTYRA for ensuring regular butter supplies throughout the country and to widen the market for the product. The Board includes bodies and firms normally engaged in the wholesale trade in butter.

4 L/4/Add;29 Page 4 BUTYRA sees to it that the price paid to the milk producer corresponds to that fixed by the Federal Council. BUTYRA holds the import monopoly and levies a tax on imported butter, and the proceeds of the tax are used to reduce the price of homeproduced butter. Moreover, it must take over such homeproduced butter as cannot find a buyer in a free market. Alcohol The alcohol monopoly of the Confederation was primarily introduced for public health reasons. This monopoly is based on Article 32(2 of the Federal Constitution giving the Confederation the sole right to legislate in this field. This legislation is designed to reduce the consumption and thus the importation and production of brandy. Pursuant to this Article, the Federal Assembly promulgated the Federal Law on Alcohol of 2 June 932, revised in 949. The Law aims primarily at reducing alcohol consumption by encouraging the cultivation of table fruits and the nonale;oholic utilization of raw materials. The Confederation has the exclusive right of preparing, importing and processing distilled beverages. The Federal Alcohol Administration operates this monopoly. Seed potatoes In order to ensure adequate direct supplies and to control the choice of varieties, and also in order to combat the main potato diseases, the importation of seed potatoes is subject to licensing. The more important acts in this field are the Agricultural Law of 3 October 95 and. the Alcohol Law of 2 June 932, as amended on 25 October 949. The Agricultural Division takes appropriate measures in the field of imports. It does hot import seed potatoes itself but it issues permits for this purpose. Ill. Description of the functioning of the Statetrading enterprises The scope of theso enterprises covers merely the domestic marketing of home product3 or importation, but not exports.

5 L/4/Add.29 Page 5 Bread wheat While imports are subject to licensing, permits are issued without quantitative restrictions by the Swiss Cooperative Society for Fodder Grain and Feedingstuffs. As Switzerland has acceded to the International Wheat Agreement, at least 8 per cent of its imports of wheat and wheat flour must be obtained from exporters parties to that Agreement. Moreover, the acquisition of an import permit is subject to certain conditions, relating in particular to the compulsory emergency reserve stocks intended to ensure domestic supplies. The Federal Wheat Administration procures homeproduced wheat and sells it to the mills at a price corresponding to the cost price for foreign wheat of the same quality. Millers are required to take over, in proportion to the quantity of wheat processed by them, homeproduced wheat bought by the Confederation, as well as foreign wheat from the Administration's stockpiles. The price supplements are levied in order to tax feed products derived from wheat in the same manner as if they had been imported as such. The supplements are fixed by the Federal Council, account being taken of those feed products normally derived from wheat in the course of processing. The prices paid to home producers are fixed each year by the federal Council and are based on average production costs. The losses supported by the wheat administration as a result of its selling homeproduoed wheat to mills at the world prices are met by the Federal Treasury. As a general rule, no longterm contracts are entered into for imports of bread wheat. Fodder grain and feedingstuffs The Swiss Cooperative Society for Fodder Grain and Feedingstuffs grants its members individual quotas for the importation of feedingstuffs within the framework of the global quota established by the Federal Council. Individual quotas are reviewed from time to time. Importers are practically free to import feedingstuffs from any suppliers they choose. At the frontier, the Society takes over the goods bought by the importers and sells it back to them after levying a fixed price supplement. Imports of loss than 2 kgs. (gross weight do not come under the Society's monopoly. The Federal Council fixes the price supplements to be levied. The Society hands over the proceeds of this levy to the Federal Treasury; this revenue serves to finance measures to encourage cultivation of the land in the country and to widen markets for farm produce.

6 L/l4/AdcU29 Page Members of the Society are required to take over goods directly imported by the latter; in recent years, the Society has accounted for around 5 per cent of the global import quota. Importers are required to conform to the Federal provisions relating to reserve stocks intended to ensure domestic supplies and to the taking over of potato surpluses. No influence is exercised on free price formation. No longterm contracts are entered into. Fats, oils, oil seeds and dried milk As explained under II, the Swiss Cooperative Society for Fodder Grain and Feedingstuffs has the exclusive right of importation only for purposes of control. It does not import goods itself but issues import permits without quantitative restrictions, the only requirement being that the goods shall be sold to the Society at the frontier and then taken back after payment of a fixed price supplement. Importers are also required to observe the provisions relating to reserve stocks. The Federal Council fixes the price supplements subject to subsequent approval by Parliament, account being taken of prices ruling in world markets, of prices and sales possibilities for dairy products of domestic origin and for edible fats, as well as of the cost of living. No longterm contracts are entered into. Batter BOTYBA imports foreign butter only to the extent that home production does not meet current requirements for the various qualities in demand. BOTYJRA takes over, at prices fixed in accordance with the basic price for milk, good quality butter which has not been sold in the free market and arranges for its disposal with the help of credits granted for this purpose. EOTYRA. levies on imported butter a tax which is equal to the difference between the cost price (including overhead expenses of imported butter and the wholesale price of homeproduced butter. The Federal Council fixes the wholesale price of'homeproduced butter in accordance with the basic price for milk and the financial resources available for bringing down the price of homeproduced butter. HTÏRA does not enter into longterm contracts.

7 L/l4/Add.29 Page Alcohol Although it has an Import monopoly, the Federal Alcohol Administration does not import directly all quantities of brandy, but merely alcohol with a high alcoholic content. The import volume is determined in accordance with the' requirements of the home market. The Administration issues import permits, without quantitative restrictions, for brandy with an alcoholic content of more than 5 per cent by volume. Brandies, liqueurs and so forth of a strength of less than 5 per cent of alcohol by volume may be imported without permits. In both cases, however, a monopoly duty (fixed by the Federal Council is levied. The Alcohol Administration does not itself produce alcohol; it grants manufacture concessions to private persons. Alcohol proper (also called proofspirit is manufactured by industrial distilleries within quota limits. A concession must also be obtained by persons wishing to distil brandy, whether in a professional capacity or for their own use as home distillers. Professional distillers must apply for a permit for each distilling operation. Industrial distilleries may sell alcohol only to the Alcohol Administration, while brandy producers are allowed to place their goods directly in the home market after paying statutory taxes. The prices for alcohol delivered to or sold by the Administration, are fixed by the Federal Council. A fiscal tax is included in the selling price of distilled beverages and of alcohol destined for the manufacture of pharmaceutical products, perfumery and toilet preparations, while alcohol intended for industrial uses is sold on the basis of the price of the imported product. The Alcohol Administration does not enter into longterm contracts. Imports, exports and domestic production See Annex. Reasons why no foreign trade has t*>*p BJâSl * the.products çoncarpa^^ None. Additional information None.

8 I/4/Add,29 Page 8 Annex IMPORTS. EXPORTS AND SWISS PRODUCTION OF PRODUCTS COVERED BY STATE TRADING Imports Exports Tariff Item No. Commodities Volume in metric tons Value in frs. Volume In metric tons Value in frs. Swiss production in metric tons a 2 a Wheat, undenatured Rye, undenatured , ,999 8, ,2 9,49 3, :,» 9.3; 2,92'.9] 958: s 32,39 ' :! 959: x } 334,3 x ' _ b Wheat, denatured ,984,82 94,823 5,8 8,832 24,258 8,92 * 2,9 2 h a 4 Rye, denatured Oats Barley ,84 33,424 3,,98 223,5 8,58 229, ,52 38,54 2,9 32,54 3,854 49,89 4,3 _ 23 _ ' 9 :». ; _ 95: 59,4 958: 45,2 959: 3,9 Other grains ,95 22,8 2,9 3,54 5,58,532 m m " " ' Intended for food

9 L/4/Md.29 Page Rice, unworked ,83 9j339 8,552,53 3,,9 2 Rice, husked ,33 5,85 3,2,4 4,83 3, » Maize ,44,9 8,95 2,992 22,38 9, ,2 3,2 3,8 8 Kidney beans , 3,,9 2,32 2,2 2, Peas ,259 3,43 3,3 Other leguminous vegetables 95 8, 958, ,5 3,98 2,825 2,382 3,899 3,245 3, » 95: 2 958: 2 959: 2 A Other cereal products , tee numbers } X b,.2 b, I 3, 4, Cereal flours, maize, leguminous vegetables } n.a. Bice flour n.a.

10 L/I4/Add.29 Page ex 8 Flour of wheat, rye and spelt in containers of 5 kgs. or less ' n.a* 9 Dried milk ,29 2,338,3 4,83 3,98 3,39 5,24 5,49 5,99 2,59 2,299 2, 2, 3, 5,2 ex 2 Feed bread o o o n.a. 45 a Seed potatoes ,2 34,28 28,429,24,3 9, , ,2 3,2 5,4 Cocoa husks, cocoa cakes n.a» 2 and 4 Olive oil ,542,22,54 5,44 3,2 4, ~ 3, 3 a and 5 Other edible oils ,884,5 3,85 2,49 24,83 9,44,9, ,3 2,38,54 n.a. 93 a Fresh butter , ,43 29,25,99, , 3,8 33,

11 L/4/Add.29 Page 94 Melted or salted butter Oleomargarine 9a 9b ex 2 24 ex 2Ua 2b Margarine, butter substitutes, edible fat Cocoa fat Animal blood ,35 3,4 2, ,589 Oil seeds and oleaginous fruit 95, , ,43 Straw Peat litter for animals Hay ,5 98,58 93,9 25,43 23,2 23,98 22,45 23,348 2,82 5,2 4,5 4,8 4,344 3,8, ,542 98,8 8,38,22,89,43 3, 2,89 3,3 3,3 3, 2, l ,3,92 2, appro*, it approx. ti n.a. n«a. n,a» n»a. 5, 9, 9, 3, 4, 2,,,, 3,492, 4,82, 3,554,

12 L/I4/Add.29 Page 2 23 Oil cakes and oil cake flour; locust beans ,32 9,9 9,8,99 5,59 5,8 2 3, ,535 3,5 3, 5, 24. Malt groats, malt waste and other residues 25 Bran ^ ,432 2,3 32,43,492 9,94 25,9 3,3 4,5 8,8,54 4,45 5, \ 3 49 n.a. 8,2^,45O:T< 8, i '' 2la Flour for animal consumption, denatured ,9 4,49 23,l 5,9 9,8 4,848 2lbl b2 Milling waste for the consumption of livestock 95? , ,3^ 45,2^ 45,4 U ex 22 Canary seed, vetch, leguminous vegetables for feeds 95? , , n.a. n.a. n.a. ex 9 ' Manioc ^ at * " 'Prom homeproduced and imported wheat

13 L/4/Md.29 Page 3 25 Pure alcohol, proofspirit, wine spirit ,8^ 8,22^( 28,5 ; 5,3 5,8,4 i 2 Î2 ' 95/5:,x 9,49 ; 2a,b Brandies, 2a, b rum,' liqueurs I9,3i 2,49< 22,92 x; 9,3,3, J 44 9l ] 95/58: } j 5,94 ; 958/59:i,49 ; T hl/ per cent 2 tons

14 L/4/Md.29 Page 4 APPENDIX STAIBTRADING ENTEKPRISES Notifications received from governments and reproduced in addenda to L/4:... " 4 & Corr.l... " " " " 8... " 5... " 2 Italy Add.28 Japan " & Corr. Luxemburg... Add.2 Malaya, Federation of... n Netherlands». " 22 New Zealand. " 3 Norway... " Rhodesia & Nyasaland, Federation of.. " 4 Sweden. " Switzerland " 29 Turkey. " 9 Union of South Africa.., " United Kingdom. " 3 United States «2