Preferential tariffs on sugar imports - Exemption from duty for speciality cereals from the Andes
Bern, 07.12.2007 - On 7 December, the Federal Council took the decision to reintroduce preferential tariffs on imports of white sugar from developing countries with effect from 1 January 2008. These preferential tariffs had temporarily been suspended. In addition, Switzerland will exempt from duty imports of the speciality cereals quinoa, grain amaranth and kañiwa from the Andes region. Switzerland grants preferential tariffs to developing countries under the generalised system of preferences (GSP).
The Federal Council decided to reintroduce preferential tariffs for white sugar imports from developing countries with a reduction of 22 francs within a tariff quota of 10,000 tonnes with effect from 1 January 2008. Outside this quota, a preferential tariff reduction of 7 francs will apply. Due to the restriction in terms of quantity and the lower preferential tariff outside the quota, negative impacts on the domestic sugar price can be avoided, while at the same time encouraging imports from developing countries.
At its meeting of 4 July of this year, the Federal Council suspended preferential tariffs on white sugar from 1 September 2007 to 31 December 2007. The increased production of bio-fuels and the reform of the EU sugar regime led to unstable sugar prices in Switzerland in the first half of the year. This jeopardised what is known as the double-zero solution, which envisages the same price for sugar in processed products in Switzerland and in the EU.
The ‘double-zero' solution is a significant element of Protocol 2 of the Free Trade Agreement between Switzerland the EU and is extremely important for the competitiveness of the Swiss food industry. 80 per cent of the sugar produced domestically or imported into Switzerland is needed in the production of processed goods.
In addition to the reintroduction of preferential tariffs for white sugar from developing countries, the Federal Council also decided to grant the zero-duty import of quinoa, grain amaranth and kañiwa. International trade in these specialty cereals from the Andes region should contribute to rural development in Latin America.
Address for enquiries
Hans-Peter Egler, SECO, Economic Cooperation and Development, Head of Trade Promotion, + 41 (0)31 324 08 13; +41 (0) 79 456 66 16
Publisher
Federal Department of Economic Affairs, Education and Research
http://www.wbf.admin.ch
