Ankara: Switzerland's Council of States, the upper house of parliament, has approved a free trade agreement with the Mercosur bloc by a significant margin of 31 votes to seven, with three members abstaining from the vote.

According to Anadolu Agency, the upper house also sanctioned 517 million Swiss francs ($646 million) to support Swiss farmers in mitigating the potential impact of the trade agreement on the country's agricultural sector. This decision comes after the National Council, the lower house of parliament, had previously rejected the agreement during its summer session.

Opposition parties, including the Social Democratic Party and the Green Party, had raised concerns about deforestation and forced labor associated with the trade deal, calling for additional measures to address these issues. However, the Council of States dismissed these proposed measures, opting instead to approve the additional funding for farmers.

The Swiss Farmers' Association had initially been against the proposed compensation of 158 million Swiss francs ($197 million), advocating instead for approximately 880 million Swiss francs ($1.1 billion) in support due to worries about the impact of duty-free imports of products such as beef and wine from South America. The compromise reached by the upper house incorporates four measures designed to maintain the competitiveness of Swiss agriculture.

Despite the approval, the Greens have indicated their intention to call for a referendum if the agreement moves forward without the inclusion of further environmental and social measures. The National Council is set to revisit the Mercosur agreement as soon as September 23, following the upper house's decision.