Commodities

Switzerland is one of the most important locations for the international raw material industry. Local companies cover a wide range of commodities and business activities and make an important contribution to employment and economic performance in Switzerland.

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.

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.

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.

In light of this background, the Federal Council has taken appropriate measures: It expects companies based in Switzerland, wherever they operate, to respect human rights and to comply with the OECD Guidelines for Multinational Enterprises. In 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.