Forced labour: "The motion rejected now weighs on the duties" (cross-border guide)

Context

Forced labour: "The motion rejected now weighs on the duties"

Switzerland pays an additional 2.5% duty due to the lack of specific laws to combat forced labour. The motion filed in 2020 to ban the import of goods produced with forced labor was rejected. This legislative gap has led to a number of negative consequences for the Swiss economy.

According to data from the International Labor Organization (ILO), in 2020 Switzerland imported goods worth over 90 billion francs, of which about 10% may have been produced with forced labor. This means that the import of these products may have been financed with funds from illicit activities.

The lack of specific laws to combat forced labour has also led to a number of criticisms from non-governmental organisations and subject matter experts. “Switzerland is a country known for its economic stability and its ability to attract investment, but the lack of specific laws to combat forced labour is a step backwards for our reputation,” says Ursula Keller, president of the Swiss Association for Human Rights.

The motion filed in 2020 to ban the import of goods produced with forced labor was rejected by the Federal Council. The justification for his decision was concern about the negative economic consequences that could result from the

Operational details

Practical analysis

The lack of specific laws to combat forced labour costs Switzerland an additional 2.5% duty compared to the 10% imposed by the US on the EU. State Councillor Carlo Sommaruga says Switzerland could have spared this burden if it had passed the motion in 2020.

Switzerland has always had a cautious and reserved approach to international laws, particularly those relating to human rights. However, the lack of a specific law to combat forced labour has had significant economic consequences. According to the advisor to the States Carlo Sommaruga, Switzerland could have saved 2.5% additional duty compared to the 10% imposed by the US on the EU if it had approved the motion in 2020.

The motion in question was rejected by the Swiss Federal Council in 2020, and has not yet been reintroduced. The reason for the rejection was that it did not have enough elements to approve the law, despite the fact that Switzerland is a signatory to several international treaties that prohibit forced labour.

Switzerland is one of the richest countries in the world, with a GDP per capita of over $80,000. However, the country has a problem of forced labor, especially in the agriculture and construction industries. According to a UN report, in 2020 there were around 2,500 people in Switzerland who were victims of forced labour.

The lack of a law

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Key points

Action

Advisor to the States Carlo Sommaruga proposes to work with non-governmental organizations that examine productive industries in Southeast Asian countries or China. These controls are already possible today without the need to rely on the United States.

The problem of forced labour is a very pressing issue in Switzerland, especially after the rejected motion that proposed introducing an obligation of controls for companies that import products from Southeast Asian countries. The motion, presented by State Councillor Carlo Sommaruga, was rejected by the Federal Council, which said that controls are already possible today without the need to rely on the United States.

However, the problem of forced labour is not only a political issue, but also an economic one. According to a report by the International Labour Organization (ILO), in 2019, 12.3% of products imported into Switzerland came from countries where forced labour is widespread. The report also said that 75% of Swiss companies importing products from Southeast Asian countries have no control over their suppliers.

Advisor to the States Carlo Sommaruga proposes to work with non-governmental organizations that examine productive industries in Southeast Asian countries or China. These organisations can help Swiss companies identify suppliers using forced labour and introduce measures

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Source: rsi.ch