Swiss upper house approves Mercosur trade deal, $646M for farmers - Anadolu Ajansı

Switzerland’s Council of States, the upper house of parliament, on Monday approved a free trade agreement with the Mercosur bloc by 31 votes to seven, with three abstentions, according to Swiss news outlet 20 Minuten.

The upper house also approved 517 million Swiss francs ($646 million) in support for Swiss farmers to help offset the expected impact of the agreement on domestic agriculture.

The agreement had previously been rejected by the National Council, the lower house, during its summer session.

Opponents, including the Social Democratic Party and the Green Party, had called for additional measures to address deforestation and forced labor linked to the trade agreement.

The Council of States rejected those measures but backed the additional funding for farmers.

The Swiss Farmers’ Association had initially opposed compensation of 158 million Swiss francs ($197 million) and called for about 880 million Swiss francs ($1.1 billion) in additional support, citing concerns over the impact of duty-free imports of products, including beef and wine from South America.

The compromise approved by the upper house includes four measures aimed at maintaining the competitiveness of Swiss agriculture.

The Greens have threatened to call a referendum if the agreement is approved without additional environmental and social measures.

The National Council is expected to reconsider the Mercosur agreement as early as Sept. 23 following the Council of States’ decision.