Policy brief: Switzerland-based private sustainability standards and WTO law

There are substantial sectoral differences in the number and design of Switzerland-based private sustainability standards. Their level of exposure to World Trade Organization (WTO) scrutiny also greatly differs depending on whether and to which extent the standards exhibit a nexus with state measures that restrict foreign competition in the Swiss market.

Trade law concerns arise in the sectors of agriculture and cosmetics: the majority of Switzerland-based private sustainability standards in place exclude foreign products from certification. Their trade-restrictive effect is amplified as major retailers source key product lines from certified products. In cases where the discriminating private behaviour is related to state measures, the government’s responsibility cannot be excluded under WTO rules.