July 1, 1995, Switzerland's highly subsidized agricultural sector operated behind a variety of import restrictions licensing, quotas, supplementary import charges, variable levies, conditional import rules, import calendars, and the like. Prices of most agricultural imports were raised to domestic levels by variable import duties and specific non tariff requirements on importers of agricultural products. A wide variety of U.S. agricultural products, including wines, felt the effects of these barriers (Switzerland: Trade regulations..., 1996).
2. Food Retailing System. A continuing obstacle to U.S. exporters, particularly those of high value products, is the food retailing system. The retail market is dominated by two retail giants who account for nearly half of grocery sales. U.S. exporters are disadvantaged by this system because the two food chain stores emphasize their own store brand products and favor products produced in their own processing plants. They are devoted to in house brands, and following that, to international brands to which they have exclusive rights to market in Switzerland. These two retailers are also particularly resistant to allowing U.S. in store promotion programs (Switzerland: Trade regulations..., 1996).
Agricultural products are also affected by cartel practices. The marketing of many domestic farm products, and of competing imports, is controlled by cartel like organizations of producers, wholesalers, processors, and retailers. Prior to Switzerland's implementation of its Uruguay Round commitments in 1995, these organizations were involved in the implementation of non tariff import restrictions, with government support. These groups will continue to have an important role in formulating import policy (Switzerland: Trade regulations..., 1996).
3. Testing and Certification. Switzerland imposes technical standards and testing and labeli
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