If there is a great paradox in Switzerland, it is the trade in raw materials. Indeed, Switzerland is a small country very poor in commodities. Switzerland doesn't even have a maritime outlet that would allow it to enter the international maritime trade. However, Switzerland is one of the most important commodities trading centres in the world. It's an economic fact that high-growth countries are often the poorest in raw materials, but it's another to be able to climb to the top of the world's commodity trading rankings. Especially since it is mainly SMEs in the Lake Geneva and Ticino regions that have succeeded in establishing a solid reputation and developing cutting-edge know-how in the transactions that are indispensable for trading. How is it possible to achieve this without the necessary resources and maritime access? Critics will write that Switzerland's aggressive tax system is the reason, or that the financing provided by the big banks has made it possible to set up this dynamic trading hub.
The reality is more straightforward. Switzerland's economic policy is characterised by relatively low regulatory costs in comparison with other countries, especially for commodity trading. In fact, every regulation leads to costs for SMEs. Generally, the more regulations there are in number and detail, the fewer opportunities companies have to develop their potential. Of course, some regulations are necessary, such as for road traffic. It is therefore important to be able to differentiate between regulations that are necessary and those that stifle entrepreneurship. The basic rule is to apply an objective cost-benefit ratio.
Ultimately, unnecessary regulatory costs weaken the competitiveness of SMEs in the market. Where does Switzerland stand in relation to these regulatory costs? According to a study by the USAM published in 2019, the regulatory costs would amount to more than CHF 60 billion or about 10% of Switzerland's GDP. The study estimated this cost on the basis of 4,000 legislative texts, from all the different areas of regulation and the federal, cantonal and municipal levels. Countries comparable to Switzerland often have regulatory costs between 10 and 15% of GDP. Switzerland is therefore doing well for the time being.
The USAM notes, however, that since its first study developed with KPMG in 2010, regulatory costs have increased by more than CHF 10 billion in just 9 years. Fortunately, the situation is not yet at our disadvantage compared to other European countries. This is why the USAM is fighting to introduce a constitutional regulatory brake, similar to the well-known debt brake. With this instrument, a vote would have to be taken each time to introduce a new regulation. This is the only way to keep the costs of regulation low and to maintain a high level of competitiveness for the success of SMEs in Switzerland.
The USAM represents and defends the interests of more than 500'000 SMEs in our country. The members of the USAM are the cantonal unions of arts and crafts, the Swiss professional and industry associations as well as other organisations and institutions for the promotion of SMEs, which include 230 associations.
