Switzerland to lower import duties to better compete on int'l markets

GEENVA, Dec. 20 (Xinhua) -- Switzerland will ease import duties on a wide range of goods so that businesses in the country can produce goods more cheaply and be more competitive on international markets, the Federal Council said in a statement on Wednesday.

The move will bring savings for businesses and shoppers worth some 900 million Swiss francs (about 913 million U.S. dollars), giving consumers a better deal in the traditional "high price island" country, the statement said.

The plan includes cutting import taxes on industrial goods, such as cars and clothing, and selected agricultural imports, such as bananas and other exotic fruit, but tariffs will remain for foodstuffs that are also grown in Switzerland.

While many businesses in Switzerland will benefit from cheaper intermediate goods and have less paperwork to complete after the tax cutting, which in turn could translate into more competitive on international markets, the measures could also reduce revenues by "several hundred million francs," the statement warned.

Swiss consumers usually have to pay between 40 and 70 percent more than those in neighboring countries for items in their shopping basket, and companies have also complained that they are charged more for the same supplies than EU competitors.

Some observers have blamed higher wages and infrastructure costs for inflated prices in Switzerland, while others point the finger at protectionist import duties and foul tactics from foreign suppliers.

Last week Swiss lawmakers brought in the so-called "Fair Price Initiative" to "declares war on general importers and foreign suppliers who abuse their power." It wants voters to support its demand to prosecute foreign suppliers who abuse higher Swiss purchasing power to charge exorbitant prices for their goods.

On Wednesday, the Federal Council said its new measures would meet the objectives of the initiative. The proposals have been sent for consultation before parliament gets to vote on the final recommendations. Enditem