Switzerland and China finalize updated free trade agreement

Switzerland and China have concluded negotiations to update their free trade agreement, aiming to significantly expand economic cooperation. Following five rounds of consultations, Swiss Federal Councillor Guy Parmelin and Chinese Commerce Minister Wang Wentao signed a memorandum of understanding in Bern.

The updated agreement focuses on increasing mutual openness in goods, services, investments, and economic exchange regulations. A major outcome is the reduction of trade barriers for Swiss exporters; while only about half of Swiss exports were previously duty-free, the new deal aims to make nearly all Swiss exports to China duty-free.

In contrast, most Chinese goods already enter Switzerland with minimal tariffs. The agreement also broadens the scope of cooperation to include digital trade and services, reflecting the growing importance of digital business models. This development is intended to provide Swiss companies with improved access to China, which remains Switzerland’s third-largest trading partner after the EU and the US.