Swiss Upper House Approves Mercosur Trade Deal with Farm Aid Package

Switzerland's upper house of parliament on Monday approved a trade agreement with the South American bloc Mercosur, attaching a financial support package for Swiss farmers and returning the measure to the lower chamber, which had rejected it in June.

The accord, signed by the Swiss economy minister in Brazil a year ago, was passed alongside aid worth 517 million Swiss francs (about $633 million) over six years to cushion its impact on the domestic farming sector. The upper house vote was 35 in favour, seven against, with three abstentions.

The deal links the member states of the European Free Trade Association — Switzerland, Norway, Iceland and Liechtenstein — with the core Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay. Switzerland is the largest economy within EFTA.

Agriculture remains a politically sensitive issue in Switzerland, and opposition to the agreement in the lower house during the summer came from both the right and the left of the political spectrum. The upper house's decision sends the matter back to the lower chamber for further consideration.