Switzerland | Agreements
Switzerland updates arrangement with Liechtenstein about the agricultural sector
With the signing of the new agreement, the terms of the previous agreement are updated and a better calculation of the financial resources invested in Liechtenstein's farms.9/28/2020
On 25 September 2020, the Federal Council of Switzerland approved two agricultural arrangements with Liechtenstein. These arrangements govern Liechtenstein's participation in Swiss agricultural policy measures.
Switzerland and Liechtenstein form a common economic space. To allow comparable conditions of competition in agriculture, Liechtenstein participates in a large part of the measures of Swiss agricultural policy, on the basis of an arrangement concluded between the two countries in 2003. This arrangement regulates Liechtenstein's participation in the Swiss agricultural policy expenditure and revenue. As the arrangement no longer corresponds to the current reality, Switzerland and Liechtenstein have undertaken to update it.
The 2003 arrangement is renewed in substance: Liechtenstein continues to participate in most of the Swiss agricultural policy measures. The calculation of Liechtenstein's share of expenditure and revenue has, however, been changed. While in the old arrangement all the shares were calculated on the basis of a distribution key proportional to the population (lump sum calculation), it is now planned to calculate precisely, as far as possible, what share of the financial means is invested in the Liechtenstein farms. For formal reasons, Liechtenstein's participation in revenue from the auctioning of tariff quotas is regulated in an arrangement separate from that governing participation in other expenditure and revenue.
By approving the "Arrangement between Switzerland and Liechtenstein concerning the modalities of the participation of Liechtenstein in market and price support measures taken within the framework of Swiss agricultural policy" and the "Arrangement between Switzerland and Liechtenstein on the modalities of Liechtenstein's participation in the revenue from the auctioning of tariff quotas ”, the Federal Council allows the continuation of close cooperation with Liechtenstein in the field of agriculture. Once the arrangements have been signed, they will take effect retroactively to January 1, 2020.
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