Swiss lawmakers reject farm tariffs and bank liquidity reforms in heated debates
The Swiss National Council has debated two major financial proposals this week. One aimed to raise agricultural tariffs by CHF 175 million to boost domestic food security, with supporters arguing it would protect farmers and critics warning of market instability. The other sought to introduce a public liquidity backstop for major banks—but both faced strong opposition.
The tariff increase divided lawmakers, with supporters including Pius Kaufmann from the Centre Party arguing it would safeguard Swiss farmers without breaking international trade rules. Finance Minister Karin Keller-Sutter, however, questioned the timing of such tariffs. Opponents like Niklaus-Samuel Gugger of the EVP called the idea 'crazy', claiming tariffs would bring unintended economic harm. Andreas Gafner of the EDU warned that auctioning more tariff quotas could destabilise markets and push down prices for producers.
In a separate vote, the National Council rejected a plan to create a public liquidity backstop (PLB) for systemically important banks from 2027. The measure, proposed by the Finance Committee, would have saved the federal government CHF 140 million annually. But lawmakers overwhelmingly opposed it, with 142 votes against, 45 in favour, and 6 abstentions.
The debate comes as Swiss farmers' groups, like the SBV and its Agricultural Chamber, continue to resist trade deals that include import quotas. They have long demanded compensation—such as CHF 110 million per year—to offset losses from agreements that allow foreign goods like beef into the country. These groups have also rejected calls to cut agricultural spending elsewhere.
The National Council's decisions leave both agricultural tariffs and banking liquidity measures in limbo. The rejected PLB means no immediate financial relief for federal budgets. For farmers, the outcome keeps existing trade tensions alive, with no new protections or compensations in place.
Switzerland's cautious stance on tariffs and trade concessions remains unchanged for now.
