Swiss voters on first week of March backed free trade deal signed with Indonesia, controversy surrounding the importation of Indonesian palm oil and its sustainability fuelled concern in Switzerland which trigger public vote on the agreement, the result about 51.7% of the vote, with 51% turnout.

Under the deal, tariffs will gradually remove from almost all Switzerland’s biggest exports to Indonesia, and Swiss will abolish duties on Indonesian industrial products. The deal contains exceptions for agricultural products, notably to protect Switzerland’s sunflower and rapeseed oil production.

Palm oil importer must meets certain environmental and social standards, also customs duties will not be removed but instead reduced by between 20% and 40%, on a volume limited to 12,500 tonnes per year.

In 2020, Swiss exports to Indonesia amounted to just 498 million Swiss francs (US$540 million).