A woman wearing a facemask as a preventive measure against the COVID-19 coronavirus casts an envelope containing her ballot during a vote by correspondence during a day of national referendum and local election on March 7, 2021 in Lausanne. Two other votes are also being held, one is on the free trade agreement struck between Switzerland and Indonesia, the other vote is on a government plan to introduce a federally recognised electronic identity, that could be used for ordering goods and services online.
(PHOTO / AFP)
ZURICH – Swiss voters narrowly approved a free trade agreement with Indonesia in a binding referendum on Sunday, with lower tariffs on palm oil imports the main issue in the national debate.
The vote was carried with a 51.7-48.3 percent margin, provisional official results showed, a closer result that opinion polls had suggested.
The vote was carried with a 51.7-48.3 percent margin, provisional official results showed, a closer result that opinion polls had suggested
Switzerland signed the pact in 2018 together with the other European Free Trade Association members Iceland, Norway and Liechtenstein.
Parliament ratified the deal in 2019, but the “Stop Palm Oil” movement – backed by the Greens as well as environmentalist and anti-globalisation NGOs – called a referendum under Switzerland’s system of direct democracy.
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Under the FTA, both parties would gradually reduce or abolish import duties on industrial products. For palm oil, Switzerland will reduce tariffs by about 20 percent -40 percent for up to 12,500 tonnes per year, but only if sustainability standards are met.
Indonesia is the world’s top producer of palm oil, which is used in cosmetics, food products and biofuels. Palm oil has faced scrutiny from green activists and consumers, who hold it responsible for forest loss, fires and worker exploitation.
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The government recommended the FTA, saying it would give Switzerland’s export-oriented economy better access to growth market Indonesia, while promoting more sustainable palm oil production as only certified oil could enjoy tariff reductions.
But the committee that organized the referendum said the deal would boost demand for cheap palm oil, destroying tropical forests and hitting Swiss rapeseed and sunflower oil production.
