The government has decided to ban the use, production, purchase and stockpiling of cluster bombs under an international convention agreed three years ago.
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The cabinet is also proposing an amendment to the law on war materials, including a ban on the direct and indirect funding of outlawed munitions, according to a foreign ministry statement on Monday.
Parliament is to discuss the issues at a later date.
Campaigners have accused 16 Swiss companies, including the two big banks UBS and Credit Suisse, of financing cluster bombs and parts despite the entry into force of an international treaty.
However the two banks last week rejected the allegations saying a process of withdrawing from investments is underway.
The Convention on Cluster Munitions has been signed by more than 100 countries so far, while nearly 60 others, including Germany, France and Britain, have ratified it.
The Swiss armed forces will have to destroy artillery ammunition within eight years if Switzerland signs the accord that came into force last August.
The foreign ministry says Switzerland spends about SFr16 million ($19.1 million) annually on humanitarian projects for mine clearing, notably in Laos.
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Convention calls time on cluster bombs
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The treaty, adopted in Dublin in 2008, has been signed by 107 countries but only ratified by 37 states so far. The Swiss state-owned arms manufacturer Ruag has produced cluster bombs in the past using components built in the country or imported from Israel. Switzerland has an inventory of around 200,000 munitions. National legislation to…
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According to a new report, 16 Swiss companies are among 166 leading financial institutions worldwide that are funding cluster bomb and parts manufacturing, despite the entry into force of an international treaty banning such munitions in 2010. Globally, financial institutions from 15 countries are channelling more than $39 billion (SFr34.2 billion) into eight bomb and…
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