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WT/TPR/S/208Trade Policy Review Page 100

4.

Liechtenstein's milk output was 14,052 tonnes in 2006, up from 13,250 tonnes in 2000.  The Milk Quantity Regulation Law, adopted in 2008 has been gradually abolishing production quotas.  During the transition period, quotas will be administered by the producers' association.  While there is no timetable for the abolition of the quota, the ultimate objective of the law is to obtain self-regulation in the milk market.

(c) Sugar beet and sugar

1.

Sugar beet is cultivated by some 7,000 farmers on an area of some 18,500 hectares.  The production value of sugar beet has fluctuated between Sw F 130 and Sw F 170 million since 2001 (Table IV.1).  There are two sugar refineries, in Aarberg and Frauenfeld, producing some 200,000 tonnes of sugar annually.  The refineries are mandated by the Federal Council to produce an annual minimum quantity of sugar from Swiss sugar beet;  this minimum was set at 120,000 tonnes until 2003, and has been 150,000 tonnes since 2004.   The refineries negotiate annually with farmers' associations the necessary quantity of beet, its distribution among producers, and its price.  The refineries are required to sell their sugar and other by-products of beet at market prices.  In return, the Confederation grants the refineries financial assistance, amounting to Sw F 15 million in 2007 and 2008, with a view to ensuring a certain self-sufficiency in sugar.  In the framework of AP2011, the subsidy will be re-directed towards sugar beet producers, who will receive Sw F 850 per hectare of sugar beet production in 2008 and Sw F 1,900 in 2009.

2.

The average AVE of customs tariffs on sugar and confectionery (HS code 17) is 11.6%, with a maximum of 82.6% on glucose and glucose syrup.  In addition, Switzerland maintains a preferential duty-free tariff quota of 7,000 tonnes per year on cane sugar from least developed countries (opened in 1997 in addition to WTO commitments).12  Imports of sugar and confectionary amounted to US$308 million in 2007.

3.

The agreement with the EC on processed agricultural products, in force since 2005, establishes free trade in processed sugar-containing products.  In addition, various technical barriers to trade apply to these products;  they have been eased in trade with the EC through mutual recognition of the equivalence of the relevant legal provisions (Chapter II(4)(ii)(c)).

(d) Other crops

1.

Production of cereals and potatoes has declined slightly since 2001, reflecting a decrease in the area under cultivation for these crops (Table IV.1).  Imports of cereals (HS code 10) are subject to customs duties with AVEs averaging 18.3%, and up to 290.3%, on onions and shallots.  Products of the milling industry (HS code 11) bear an average AVE of 40.4%, while the average on oilseeds is 7.8%, with a maximum of 104.5% on rape and colza seeds.  Durum wheat, broad grains, coarse grains for human consumption, and potatoes are subject to tariff quotas;  fill rates for these products are relatively high (Table IV.4).  Imports of cereals amounted to US$265 million in 2007, while exports were US$1.4 million.  Imports of products of the milling industry amounted to US$72 million, and exports to US$5 million.  Oilseeds imports were US$193 million, while exports were US$10.5 million.  Subsidies are available to producers of oilseeds and to processing plants (Chapter III(4)(i)).

2.

The annual production value of fruits has ranged between Sw F 500 and Sw F 600 million since 2001, while the annual value of vegetables, other than cereals and potatoes, has been slightly

12 RS 632.911.

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