National Council Rejects Free Trade Agreement with Mercosur Countries

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• The National Council rejected the free trade agreement between the EFTA states and the Mercosur countries by a vote of 96 to 86.
• In the National Council, the SP and the Greens, as well as part of the SVP faction, voted “no.” There were also dissenting votes from the Center faction.
• The bill now goes to the Council of States. If the Council of States approves it, the National Council will consider it a second time.
• Under the agreement, 96 percent of Swiss exports to Mercosur are to become duty-free.

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Skepticism prevails in the National Council regarding the free trade agreement between the EFTA states and the Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay. After lively debates, the Council rejected the bill on Wednesday by a vote of 96 to 86, with nine abstentions.

In the National Council, the SP and the Greens, as well as part of the SVP caucus, voted against the bill. There were also votes against the bill from the Center faction. During the detailed deliberations, both accompanying measures for farmers—a committed credit of 880 million Swiss francs over several years—and the adoption of the EU Deforestation Regulation were rejected.

The debate was at times emotional. This was triggered by amendments to the resolution on the agreement proposed by minority groups, as well as requests for additional funding—including for Swiss farmers and for the Amazon Fund to protect the rainforest and the rights of Indigenous peoples. Several parties raised the possibility of a referendum.

World trade

EU launches huge free trade zone with Mercosur states

Nearly all exports are set to become duty-free

The agreement was negotiated by the EFTA states—Switzerland, Iceland, Liechtenstein, and Norway—with the Mercosur states—Argentina, Brazil, Paraguay, and Uruguay—which have a combined population of approximately 270 million. In 2024, Swiss exports to the Mercosur countries totaled over 4 billion Swiss francs.

Under the agreement, 96 percent of Swiss exports to Mercosur are set to become duty-free. Switzerland is granting the four Mercosur countries 25 bilateral import quotas for sensitive agricultural products, including meat and wine. Most of the quotas are limited, and Switzerland can manage them autonomously.

Customs savings of approximately 155 million Swiss francs per year are expected. The bill now goes to the Council of States. If it approves the federal resolution on the Mercosur free trade agreement, the National Council will consider it a second time.