GENEVA, Oct 5 — Switzerland looks on course Monday to hold a referendum on a trade deal with Malaysia, with opponents believing the agreement endangers tropical rainforests and lacks proper safeguards against forced labour.

Campaigners handed in 85,000 signatures at the parliament buildings in the Swiss capital Bern on Monday, public broadcaster RTS said.

To trigger a referendum under Switzerland’s direct democracy system, 50,000 valid signatures must be collected within 100 days of publication of a new law. The Swiss parliament completed its approval of the trade deal in June.

The authorities will now have to verify the signatures.

If approved, the referendum would likely go ahead in the first half of 2027.

The free trade agreement is between Malaysia and the European Free Trade Association that brings together Iceland, Liechtenstein, Norway and Switzerland, all countries outside the European Union.

The EFTA-Malaysia Economic Partnership Agreement was signed at EFTA’s ministerial meeting in Tromso, Norway, in June 2025.

Negotiations began in 2012.

The agreement comes into effect once the domestic ratification processes in the contracting states have been completed, Switzerland said when the deal was signed.

“For Malaysian palm oil, Switzerland has agreed to a market-compatible and quota-based reduction in tariffs so as not to adversely affect domestic production of vegetable oils,” authorities said at the time.

“The agreement also includes a comprehensive section on environmental protection and labour rights. Among other things, it contains specific provisions to ensure that palm oil traded under the agreement is produced sustainably.”

In Switzerland, palm oil is primarily used in processed foods, cosmetics and cleaning products.

The Alliance Against Tropical Deforestation umbrella organisation led the collection of signatures against the deal.

The agreement “plans to lower tariffs on 12,500 tonnes of palm oil, without effective measures against rainforest deforestation and forced labour”, the alliance says.

“In doing so, Switzerland is helping to accelerate the destruction of a rainforest in Malaysia that is already critically threatened, while jeopardising the rights of plantation workers and indigenous communities.

“Furthermore, this agreement risks restricting the right of farming families to freely save and exchange their seeds,” it claims.

According to EFTA figures, Switzerland exported €890 million (RM4.08 billion) of goods to Malaysia in 2025, led by pharmaceutical products, (€255 million) and machinery and mechanical appliances (€191 million).

Imports from Malaysia to Switzerland were worth €622 million, led by electrical machinery (€244 millon) and machinery and mechanical appliances (€109 million). — AFP 

 Malay Mail – Money