“Hidden subsidy” for wheat must end, says National Council
Published: Monday, Dec 11th 2023, 21:40
العودة إلى البث المباشر
The National Council agrees with the Federal Council that the rules of the game must change when importing common wheat for the production of starch. On Monday, it rejected a motion from the Council of States whose author wanted to maintain the current practice, which the Federal Council described as a "hidden subsidy".
Specifically, the question is how much of a certain amount of common wheat imported at a reduced tariff rate must be used for starch production. Since the beginning of 2023, the required proportion has been 75%, previously it was 55%.
The background to the change is an appeal decision made by the Federal Council in 2015. The appeal was filed by a law firm on behalf of smaller grain mills. They argued that they were competing unfairly with baking flour made from grain imported at a reduced rate of duty.
Currently, common wheat for the production of starch can be imported at a reduced tariff of 10 centimes per 100 kilograms if at least 75 percent flour is made from it and processed into starch. Bread grain imports within the tariff quota, on the other hand, are currently subject to border protection of 23 francs per 100 kilograms.
The author of the motion adopted by the Council of States, former Aargau SVP member of the Council of States Hansjörg Knecht, argued that under the new conditions, economic strength production in Switzerland was no longer possible. The customs law needed to be amended. The aim was to create a legal basis for the authorities' decades-long practice. It is about preserving jobs.
The Federal Council countered that no change to the law was necessary to ensure the supply of soft wheat flour at internationally competitive prices for the production of starch. The Customs Act provides for the possibility of reducing the customs duties for certain uses if an economic necessity is proven and there are no overriding public interests to the contrary.
Based on starch production, the proposed amendment to the law threatened to have a prejudicial effect on other goods. Such an amendment to the Customs Act would undermine the Subsidies Act. It would be a hidden subsidy, which would be unconstitutional.
The National Council rejected the motion by 93 votes to 86 with 7 abstentions, which means that it has been dealt with.
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