Swiss Parliament Rejects Free Trade Deal with Mercosur

The Swiss National Council has rejected the free trade agreement between the European Free Trade Association (EFTA) and the Mercosur bloc. Ninety-six members voted against the proposal, 86 in favor and nine abstained.

The agreement drew criticism primarily from the Social Democrats, the Greens and part of the conservative Swiss People's Party. Parliament also rejected accompanying measures, including multi-year support for farmers worth 880m Swiss francs ($1.11bn) and the adoption of European deforestation rules.

Debate was at times emotional, with members focusing on the potential consequences of the agreement for Swiss agriculture, protection of the Amazon rainforest and the rights of indigenous peoples. Several members also raised the possibility of a referendum.

The agreement was negotiated by the EFTA states, Switzerland, Norway, Iceland and Liechtenstein, with the Mercosur countries Argentina, Brazil, Paraguay and Uruguay. Under its terms, 96% of Swiss exports to the region would be exempt from tariffs, while Switzerland would allow limited imports of sensitive agricultural products, including meat and wine.

The proposal will still be considered by the Council of States, the other house of the Swiss parliament.

(swissinfo, lud)