The end of the exception

The Swiss Le Temps concludes that the planned reform of agricultural subsidies makes sense even though it could deal a hard blow to local farmers: "'Disaster', 'victims' - the Swiss farmers have reacted fiercely to the compromise that is taking shape at the WTO. This is hardly surprising. ... It entails cutting subsidies for agriculture and reducing import duties. Switzerland, which belongs to the club of countries that gives its farmers most subsidies, will be directly affected. Farmers believe their incomes will go down by between 30 and 50 percent over the next ten years and that the number of people working in this sector will be halved in the same period. ... But the farmers have in fact been preparing for the end of the 'agricultural exception' for a long time now. Half of their income comes from subsidies. Certain duties make imported goods five times more expensive. Such protective measures make little economic sense and are hardly justifiable in a free economy. ... Farmers can count themselves lucky that the price increases on agricultural products will somewhat cushion the impact of the WTO measures."

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