Switzerland and China agree to new trade deal reducing tariffs

Switzerland and China have concluded negotiations to optimize their free trade agreement, significantly reducing trade barriers. Under the new accord, 99.8% of current Swiss exports to China will receive tariff-free treatment, a major increase from the previous agreement which covered only about half of Swiss exports.

Key Swiss export sectors, including watches, pharmaceuticals, and precision instruments, will benefit from duty-free access to the Chinese market. The deal also provides Swiss investors with improved market access and includes strengthened provisions regarding labor rights, environmental issues, digital trade, and technical cooperation.

This agreement follows years of negotiations and aims to diversify Switzerland’s export markets, providing economic relief amid uncertainties regarding US trade policy. China remains Switzerland’s third-most important trading partner, with bilateral shipments valued at approximately 34 billion francs in 2025. The formal signing of the treaty is expected to take place later in 2026 following legal and domestic approval processes.