Switzerland and China have agreed to expand their existing free trade agreement, paving the way for tariffs to be removed from nearly all Swiss exports to the Chinese market.
The move comes as Beijing continues to strengthen its economic relationships across Europe and deepen trade ties with Switzerland.
Nearly All Swiss Exports to Become Tariff-Free
Under the expanded agreement, 99.8% of Switzerland’s current exports to China will eventually qualify for tariff-free treatment once the agreed phase-out periods are completed.
Switzerland’s Federal Department of Economic Affairs, Education and Research announced the details on Thursday.
The updated terms represent a significant expansion of the original free trade agreement introduced in 2014. Under the current framework, only slightly more than half of Swiss exports can enter China without customs duties.
Meanwhile, imports from China into Switzerland are already almost entirely tariff-free.
Switzerland and China Conclude Trade Negotiations
Swiss Federal President and Minister for Economic Affairs Guy Parmelin concluded the negotiations in Bern with Chinese Minister of Commerce Wang Wentao.
In addition to lower tariffs, the agreement is designed to give Swiss investors improved access to the Chinese market.
The updated deal also strengthens commitments related to environmental standards and labor rights.
Digital Trade and Services Included
The expanded Switzerland-China trade agreement goes beyond traditional goods and tariffs.
It also covers several important areas, including rules of origin, trade facilitation, services, digital trade, competition, and economic and technical cooperation.
These measures are intended to make cross-border business easier while expanding economic cooperation between Switzerland and China.
Agreement Expected to Be Signed This Year
Negotiations to update the trade agreement began in 2024 and were completed after five rounds of discussions.
The final agreement is expected to be formally signed before the end of this year.
China remains one of Switzerland’s most important economic partners. It currently ranks as the country’s third-largest trading partner, behind the European Union and the United States.
