While within the European Union the restrictions on trade have been lifted as much as possible, with the aim of achieving a single market, other countries are able to impose rules on the importers. Norway and Switzerland are two countries that impose import restriction within the international frameworks. We looked into the regulations of these countries and the import restrictions that apply to the import of fruit and vegetables.
Switzerland and Norway are both members of the EFTA, the European Free Trade Association. The EFTA is an organization that comprises Switzerland, Norway, Liechtenstein and Iceland, to improve trade. The free trade zone was established in 1960, as a counterpart to the EU. With the exception of Switzerland, the member states have access to the internal EU market through an agreement. The EFTA also has free trade agreements with various countries all over the world.
Online auction import quotas
Norway uses a quota system. Every year, a reduction on the tariffs comes up for auction for a number of products. Norwegian importers can sign up for this online auction. Products auctioned in this manner are: strawberries, apples, pears, iceberg lettuce, early potatoes and cabbage.
During the Norwegian season, the tariffs for the imported products, despite the auction, are nearly at the same level as for non-auctioned products. For products that aren’t grown in Norway, the government has a more liberal policy. Then the tariff is zero. Incidentally, all of the restrictions only apply to developed countries. Norway makes an exception for all countries identified by the UN as least developed countries. There are no restrictions for these countries.
Weekly quotas
Switzerland uses a similar system with quotas to protect the domestic growers. Import of products that are also grown in the Alpine country, is only allowed by importers with a licence. During the season, the Ministry determines every week what amount of volume is allowed to be imported of the products. This is to prevent the competition during the harvesting season from becoming too fierce.
For products that aren’t grown in Switzerland, such as garlic, asparagus, nuts and tropical fruit, there are no restrictions on volumes. For citrus with leaf though, strict phytosanitary requirements apply. Around 300 Swiss importers are responsible for the import of fruit and vegetables. Depending on the market situations, the quotas allowed by the ministry every week, are used. Unused quotas expire. The biggest players in the Swiss market are retail chains Migros and Coop, together accounting for about half of the sales in fruit and vegetables. These companies also have the biggest quotas, but they also trade large volumes of other importers.