UPDATE 1-Swiss parliament relaxes restrictions on arms exports

(Adds comments from lawmakers, context, background) ZURICH, Dec 4 (Reuters) - The Swiss parliament on Thursday voted to relax restrictions on weapons exports in a move aimed at supporting the domestic arms industry without compromising the country's traditional neutrality.

(Adds comments from lawmakers, context, background) ZURICH, Dec 4 (Reuters) -

The Swiss parliament on Thursday voted to relax restrictions on weapons exports in a move aimed at supporting the domestic arms industry without compromising the country's traditional neutrality. In future, Swiss companies will be allowed to export arms to 25 western countries, while rules requiring consent for the re-export of Swiss weapons will be relaxed.

Currently Switzerland does not allow arms exports if the destination country is involved in an internal or international conflict, or if it seriously violates human rights. Direct export of weapons to Ukraine will remain prohibited under the changes to the legislation.

The upper house of parliament backed the changes to Switzerland's War Materials Act by 31 votes to 12, following approval by the lower house on Tuesday. The decision came after industry and politicians raised concerns about the damage caused to the Swiss arms sector which was losing orders abroad because of the restrictions.

Brigitte Haeberli-Koller, a lawmaker in the Centre party, said Switzerland needed a viable defence industry. "A domestic arms industry can only exist if it can also export, and this to countries that have a similar export control regime as our country," she said.

"Because our War Material Act has probably the most restrictive export regulations in Europe, our neighbouring countries no longer buy from us," she added. But Daniel Jositsch, a Social Democrat lawmaker, said the new regulations meant Switzerland was no longer neutral.

The ruling Federal Council will decide when the new rules become effective. The law changes could still face a referendum.

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