Swiss approve Indonesia no cost trade deal
08 March, 2021
Swiss voters on Sunday (Mar 7) narrowly backed a free of charge trade package signed with Indonesia, checking a great potential market with the world's fourth virtually all populous country.
Controversy surrounding the importation of Indonesian palm essential oil and its sustainability fuelled a sufficient amount of concern in Switzerland to trigger a good consumer vote on the contract.
But the package scraped through the general public approval test with 51.7 % of the vote, on a 51 per cent turnout.
Supporters voiced relief at the effect but said they would have to be more sensitive to environmental problems in any future votes on trade agreements.
Beneath the deal, tariffs will be slowly but surely removed from almost all of Switzerland's biggest exports to Indonesia, as the Swiss will abolish duties on Indonesian commercial products.
Anyone importing Indonesian palm essential oil have to prove that it meets certain environmental and community standards.
The agreement was signed in 2018 and approved by the Swiss parliament in 2019, but opponents were especially critical of Bern's proceed to reduce palm oil import duties and secured a public vote on the deal.
Palm oil is an integral ingredient in a variety of products from meals to cosmetics, nonetheless it is definitely controversial.
Environmentalists say it again drives deforestation, with huge swathes of rainforest logged in recent decades to create way for plantations.
BEARS, TIGERS AND ORANGUTANS
The offer contains exceptions for agricultural products, notably to safeguard Switzerland's sunflower and rapeseed oil production.
For palm oil, customs duties will never be removed but instead lowered by between 20 and 40 per cent, on a volume limited by 12,500 tonnes each year.
Campaign posters backing the deal showed a Swiss bear hugging an Indonesian tiger to symbolise the partnership, while those against showed a great orangutan and baby clinging to a good tree trunk, surrounded by flames.
The agreement aims to improve ties with Indonesia, which despite its population is merely Switzerland's 44th biggest economic partner and 16th biggest export market in Asia.
In 2020, Swiss exports to Indonesia amounted to simply just 498 million Swiss francs (US$540 million).
Switzerland can be an export-led market, drawing almost 1 / 2 its national money from abroad.
Indonesia is an evergrowing economy with an extremely affluent middle class, offering considerable prospect of Swiss firms.
Switzerland's government urged a yes vote and President Dude Parmelin had insisted that without the arrangement Swiss companies could have been at a disadvantage, noting that europe is negotiating a deal with Jakarta.
RETHINK ON FUTURE DEALS
Swissmem, the national association representing the engineering market, said the offer would "considerably simplicity Swiss companies' usage of this promising market".
It was the first time that Swiss voters have directly had their say on a free of charge trade agreement.
Organic and natural winegrower Willy Cretegny, who spearheaded the campaign for a vote, told broadcaster RTS he had not been disappointed by the defeat because "the debate on the principle of free trade" was now wide open.
Green lawmaker Leonore Porchet explained her party would campaign hard against another deal in the pipeline, with South America's Mercosur trade bloc.
Lawmaker Fabio Regazzi, who exactly headed a cross-get together yes campaign, said the tight final result was sobering.
In potential, pro-trade deal moves would need to "become more sensitive" to environmental issues and working hard conditions, he told ATS news agency.
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