BERN - The Council of States voted 35 to 7 on Tuesday to approve the EFTA-Mercosur trade agreement and to earmark CHF 517 million for agriculture between 2028 and 2033. The deal now returns to the National Council, which narrowly rejected it in June after protests by farmers and criticism from the left over labour and forest standards.
The pact would cut tariffs for Swiss exporters of machinery, watches and pharmaceuticals in Argentina, Brazil, Paraguay and Uruguay. In return, it would enlarge quotas for selected South American farm goods, including meat and wine. That swap is the political problem. Farming unions say the domestic market cannot absorb more beef without pushing prices down. Export groups say Switzerland cannot sit out a deal that competitors will use.
A money-for-votes bargain
The farm package is designed to peel away some of that resistance. Supporters call it a bridge. Opponents call it a bribe that still leaves environmental clauses too weak on deforestation. Green and Social Democratic speakers said they would fight the text again in the larger chamber.
The vote lands in an autumn session already packed with the EU agreements package and army financing. Trade diplomats in Bern say the National Council calendar is tight, and a second no would likely bury Mercosur for the rest of this parliament.
Readers following rural politics should also watch the food security initiative on 27 September, which asks a different question about how much food Switzerland should grow at home.