This index compares EU/EEA/EFTA members for intra-European sourcing decisions. Scores reflect relative risk between member states from a Nordic buyer perspective.
weighted score 1.9 · seven dimensions
Intra-EU/EEA Sourcing Risk
Switzerland
Governance, labour enforcement, regulatory gap, transparency, political risk, payment risk and logistics connectivity intelligence for Switzerland as an intra-EU/EEA sourcing origin.
Governance & rule of law
1
TI CPI 82/100 (7th globally). 98th percentile Rule of Law. Direct democracy adds legitimacy. Best-in-class governance.
Labour standards enforcement
2
Core ILO conventions ratified but cantonal enforcement variation and documented posted worker compliance issues in construction and agriculture.
Regulatory enforcement gap
1
MRA covers most industrial products. Cassis de Dijon principle accepted. No material enforcement gap for key sourcing categories.
Supply chain transparency
2
Historical banking secrecy legacy. AEOI adopted since 2018 but complex corporate structures still complicate beneficial ownership identification.
Political & EU-integration risk
2
Bilateral (not single market) framework creates regulatory divergence risk. InstA failed 2021; new negotiations ongoing with uncertain outcome.
Payment & insolvency risk
1
AAA sovereign rating. Strong payment discipline. CHF safe-haven currency. Minimal counterparty risk.
Logistics & Nordic connectivity
4
Landlocked, outside EU customs union. Customs declarations at border add friction. 2-3 day road transit to Nordics plus customs delay.
Governance & Rule of Law
Governance & Rule of Law
- TI CPI 2024
- Switzerland scores 82/100 on the Transparency International Corruption Perceptions Index (2024), ranking 7th globally. Strong governance with deep democratic traditions.
- World Bank WGI
- Switzerland ranks in the 98th percentile for Rule of Law and 98th percentile for Government Effectiveness in World Bank Worldwide Governance Indicators.
- Direct democracy
- Switzerland's system of direct democracy (referenda and popular initiatives) provides strong democratic legitimacy but can create policy uncertainty on specific issues.
- Buyer implication
- Best-in-class governance. Switzerland's institutional quality matches Nordic peers. Direct democracy is a strength for long-term stability.
Labour Standards Enforcement
Labour Standards Enforcement
- ILO conventions
- Switzerland has ratified core ILO conventions. Labour enforcement is conducted through cantonal labour inspectorates and the State Secretariat for Economic Affairs (SECO).
- Posted workers
- Switzerland enforces posted worker rules through the Federal Act on Posted Workers. Tripartite commissions monitor compliance. However, enforcement capacity varies by canton.
- Enforcement gaps
- Some sectors, particularly construction and cleaning, have documented issues with posted worker compliance. Cantonal variation in enforcement intensity creates uneven coverage.
- Agricultural sector
- Agricultural workers, particularly seasonal foreign workers, face conditions that have drawn scrutiny from labour rights organisations, though regulations are improving.
- Buyer implication
- Generally strong labour enforcement but with documented gaps in posted worker compliance and cantonal variation. Slightly below Nordic reference level, warranting a score of 2.
Regulatory Enforcement Gap
Regulatory Enforcement Gap
- Bilateral agreements
- Switzerland's relationship with the EU is governed by over 120 bilateral agreements rather than EEA or single market membership. This creates a patchwork of regulatory alignment.
- Product standards
- The Mutual Recognition Agreement (MRA) covers most industrial product standards, allowing Swiss-certified products to be sold in the EU and vice versa without additional testing.
- Cassis de Dijon principle
- Switzerland unilaterally adopted the Cassis de Dijon principle in 2010, accepting products lawfully marketed in the EU/EEA for its domestic market.
- Buyer implication
- No material enforcement gap for most industrial products thanks to the MRA. However, the bilateral framework is less comprehensive than EEA membership and may evolve.
Supply Chain Transparency
Supply Chain Transparency
- Banking secrecy history
- Switzerland was historically synonymous with banking secrecy. While automatic exchange of information (AEOI/CRS) has been implemented since 2018, the legacy reputation persists.
- Beneficial ownership
- The commercial register provides company data, but Switzerland's complex corporate structures, foundations, and holding companies can complicate beneficial ownership identification.
- Counter-proposal on due diligence
- Switzerland adopted a counter-proposal to the Responsible Business Initiative (2022), requiring large companies to report on non-financial matters and conduct due diligence on conflict minerals and child labour.
- Buyer implication
- Improved but still below Nordic benchmark on transparency. AEOI adoption is positive, but historical banking opacity and complex corporate structures require enhanced due diligence.
Political & EU-Integration Risk
Political & EU-Integration Risk
- Bilateral framework
- Switzerland is neither an EU nor EEA member. Market access is governed by bilateral agreements, which are periodically renegotiated. The institutional framework agreement (InstA) was abandoned in 2021.
- New negotiations
- Switzerland and the EU resumed negotiations in 2024 on a new institutional framework to replace the bilateral patchwork. Outcome uncertain and politically sensitive in Switzerland.
- Political stability
- Extremely stable federal system with consensus-driven governance. The Federal Council represents all major parties. Direct democracy provides legitimacy but can block EU alignment.
- Buyer implication
- The bilateral relationship introduces uncertainty that EEA members do not face. Regulatory divergence risk exists if new framework negotiations fail. Direct democracy can block EU-aligned reforms.
Payment & Insolvency Risk
Payment & Insolvency Risk
- Payment culture
- Switzerland has disciplined B2B payment culture with average payment terms of approximately 30 days. Payment discipline is strong by European standards.
- Insolvency framework
- Swiss insolvency law (SchKG) provides efficient debt enforcement and bankruptcy procedures. Recovery rates are high.
- Credit risk
- Sovereign credit rating AAA (S&P) / Aaa (Moody's). One of the strongest sovereigns globally. Swiss franc is a safe-haven currency.
- Buyer implication
- Minimal payment risk. Strong financial system and AAA sovereign rating. CHF denomination may add FX cost for EUR-based buyers but reduces counterparty risk.
Logistics & Nordic Connectivity
Logistics & Nordic Connectivity
- Landlocked position
- Switzerland is landlocked in central Europe. No seaports. Major airports at Zurich and Geneva provide air freight capacity. Excellent road and rail infrastructure.
- Not EU customs territory
- Switzerland is outside the EU customs union. Goods crossing the Swiss-EU border require customs declarations, adding administrative burden and potential delays.
- Transit corridors
- Switzerland is a major north-south transit corridor (Gotthard and Lötschberg tunnels). Road freight restrictions (40-tonne limit, night driving ban) push goods to rail.
- Lead times to Nordics
- 2-3 days by road through Germany. Customs clearance at the Swiss-EU border adds 0.5-1 day. No direct Nordic shipping routes. Air freight available via Zurich.