Commodities
Switzerland is one of the most important locations for the international raw material industry. Companies cover a broad range of commodities and business activities and strengthen employment as well as the country’s economic performance.
Commodities – a pillar of the Swiss economy
Natural resources form the foundation of our societies’ well-being: they enable us to feed ourselves, get around, stay warm, and produce the goods we consume. Although lacking commercially exploitable natural resources of its own, Switzerland is a key player in this sector. Trading companies based in Switzerland, some of which have been in operation for centuries, handle the trade of agricultural commodities as well as fuels and minerals. It is estimated that more than half of the world’s palm oil, coffee, iron, and copper are traded by companies in Switzerland. In addition, significant quantities of gold pass through our country, where this metal is refined, processed by watchmakers, and stored by banks.
Switzerland's important position in the commodities trade is based on a long tradition in the sector and favorable economic conditions that offer attractive prospects for companies in all sectors. These include stable political, economic and legal institutions, internationally competitive corporate taxation and forward-looking, innovation-friendly regulation. Other advantages include the availability of a highly skilled workforce, an excellent quality of life, an efficient and stable financial system, and a high concentration of leading companies in freight forwarding, trade finance, inspection and testing of goods. Last but not least, the growing importance of commodities since the beginning of the century has meant that commodity-related companies, whether in trading or extraction, have become heavyweights in the Swiss economy.
Enhancing framework conditions in global competition
In view of the importance of the sector for domestic and foreign policy, the Federal Department of Foreign Affairs (FDFA), the Federal Department of Finance (FDF) and the Federal Department of Economic Affairs, Education and Research (EAER) coordinate Switzerland's commodities policy within the framework of the Interdepartmental Platform on Commodities. This platform aims to strengthen (1) competitiveness and innovation, (2) integrity and sustainability, and (3) the analytical framework, dialogue and coordination between the various interest groups. Switzerland faces strong international competition in the raw materials sector, particularly from Singapore, the United Arab Emirates (especially Dubai), China (especially Hong Kong), the United States, the United Kingdom, India and the Netherlands. Compared to Switzerland, the emerging locations have positioned themselves as particularly attractive in terms of taxation and regulatory costs. With this in mind, Switzerland is called upon not only to maintain its favorable framework conditions, but also to strengthen them in a targeted manner.
Swiss standards for a responsible commodities sector
The importance of the sector also brings with it a growing responsibility for Switzerland with regard to the human rights and environmental situation in raw materials exporting countries, the fight against corruption and the demand for fair, transparent and traceable supply chains. These challenges also pose potential reputational risks for Switzerland, particularly if the behavior of companies based in Switzerland conflicts with the positions advocated and supported by the Federal Council in the areas of development policy, peace promotion, human rights, and social and environmental standards.
Against this backdrop, the Federal Council has taken corresponding measures: it expects companies domiciled in Switzerland, regardless of where they operate, to act sustainably and to comply with the OECD Guidelines for Multinational Enterprises on responsible business conductIn addition to key documents underpinning these principles, such as the National Action Plan for the Implementation of the UN Guiding Principles on Business and Human Rights (NAP), the Federal Council has also published the first guidelines on human rights due diligence specifically for companies from the commodity trading sector.
Further information
Index
Press releases
Commodities: continued growth in the number of businesses, but more mixed trends in employment
25.08.2023
Related topics
Corporate Sustainability CSR
Corporate sustainability encompasses the impact of business activities on society and the environment. It is regarded as a contribution to sustainable development.
OECD Guidelines on Responsible Business Conduct
The OECD Guidelines recommend that multinational enterprises act responsibly worldwide. They cover areas such as human and labour rights, the environment, the prevention of corruption and consumer interests. The Guidelines provide guidance on risk-based due diligence for enterprises and their supply chains. Practical guides support implementation.
National Contact Point for Responsible Business Conduct
The National Contact Point promotes awareness of the OECD Guidelines for Responsible Business Conduct among interested parties. It answers questions about the Guidelines and acts as an out-of-court mediation body.
Contact
Foreign Economic Affairs Directorate
Bilateral Economic Relations
Holzikofenweg 36
3003 Bern