Trade Fenaco boss warns against concessions on agricultural tariffs
The head of the agricultural group Fenaco, Martin Keller, has warned in an interview against making concessions to the USA on agricultural tariffs. Agricultural tariffs are a "long-standing recipe for success that must not be sacrificed lightly", he told Tamedia.
19.05.2025, 01:46
SDA
The latest crises - such as the coronavirus pandemic and the outbreak of war in Ukraine - have shown that the system has proven its worth. Compared to other countries, Switzerland has not seen large price mark-ups on food and empty stores, Keller said in an interview with Tamedia on Monday.
"An important reason for this is the Swiss agricultural policy with its finely balanced customs system," said Keller. In terms of calories, the Swiss system aims for a domestic supply of 50 percent.
If agricultural tariffs were to be abandoned, this target would come under pressure. According to the Fenaco boss, the wine industry illustrates the possible consequences: Consumption of Swiss wine fell by 16 percent last year. Viticulture is not protected by tariffs, but is exposed to the world market.
Criticism of the low price war
According to Keller, the wine industry is also an example of the introduction of very cheap products from abroad. In the interview, he criticized the "actionitis of retailers", as he called the competition for the cheapest prices. Due to the surge in production costs following the outbreak of war in Ukraine, "we should have raised prices", said the head of the Landi and Volg store operator. But the opposite happened.
If the price war continues, the food industry will eventually run out of money for investment. Keller did not rule out the possibility that food processors that do not have the financial strength of Fenaco will have to close down. According to him, this would lead to foreign suppliers filling the gap and the domestic supply would be further weakened.
Economics Minister Guy Parmelin had announced that Switzerland would not make any major concessions to the USA in the area of agriculture. The USA had understood that it was very important for Switzerland to retain a certain degree of autonomy in agricultural production, Parmelin said at the beginning of May. That was a kind of insurance.
