Geneva, hub of commodities trade finance
Geneva is also one of the global centers of world trade and international trade financing. More than 500 trading companies, including major cereals and petroleum groups, have installed their headquarters or international offices here, where they can find the highly specialized workforce they require and banks that understand their specific business and financing needs.
Geneva trading companies are mainly active in dealing with third parties, buying and selling merchandise (principally commodities) without transiting the goods through Switzerland. These firms range from highly specialized small and medium-sized family enterprises to the subsidiaries of large multinational corporations.
The operators in this field are mainly made up of :
- traders, bankers, lawyers, shippers,
- inspection services,
- fiduciaries and auditing firms.
Geneva has a leading role in world commerce due to various factors :
- central geographic position, perfectly suited for dealing in the same day with Asia, the Middle East and the American continent,
- stable political and social climate,
- economic liberalism,
- discretion,
- locally present private banks, international organizations, NGOs,
- favourable taxation policies,
- specialized know-how in commodities trading.
Historically, however, the first trading houses in cereals (André, Panchaud, Frankel, Cohen, Schilter) were established in the 1920s in the canton of Vaud. The American grain traders settled in Geneva in the 1950s. The 1960s saw the arrival of the Egyptian cotton traders. Ten years later came the petroleum traders along with representatives of the Arab countries, and then Turkey appeared with semi-finished and finished products. Foreign banks specialized in trading and subsidiaries of large American companies (Alcoa, Grace, Continental Metal Corp, Anderson & Clayton) set up business in Geneva in the 1960s. Later on, banks encouraged and financed a significant number of small start-up companies who were able to grow and develop with small amounts of initial capital.
Banks in Geneva today offer a large range of trade financing products : guarantees, loans, pre- and post-financing, “country risk coverage”, etc. They can count on a reliable international network, close relations with large storage companies, and easy access to stock markets and liquidities. Geneva now has a very highly qualified workforce in international trading and its know-how is a considerable asset.
For further information, please refer to the Geneva Trading & Shipping Association (GTSA) website.
Last update: March 2010