Switzerland and China conclude talks to update free trade agreement

Switzerland and China have concluded negotiations to update the free trade agreement in force since 2014. The Federal Department of Economic Affairs, Education and Research announced this on Thursday, following a meeting in Bern between Swiss President Guy Parmelin and Chinese Trade Minister Wang Wentao.

The revised text corrects an imbalance in the current agreement. Today, nearly all Chinese imports enter Switzerland duty-free, while this applies to only about half of Swiss exports. Under the optimised agreement, 99.8% of Swiss products will be able to access the Chinese market duty-free, a significant improvement on the current situation.

The updated agreement also guarantees Swiss investors access to the Chinese market. Provisions on environmental issues and workers' rights are also being expanded and strengthened.

Signature expected by the end of 2026

The signing of the new agreement is expected within 2026, once legal reviews of the text have been completed. The respective approval procedures in the two countries will follow.

Negotiations on the update began in September 2024 and concluded after five rounds of talks, lasting around two years in total. The Federal Department of Economic Affairs notes that China is Switzerland's third-largest trading partner, after the European Union and the United States. With the revised agreement, the Confederation aims to diversify export markets for Swiss companies.

Near-complete duty-free access, if confirmed by signature and ratification, would lower a direct cost for Swiss exporters entering a market of this size. It remains to be seen whether the new environmental and labour guarantees will bring additional administrative burdens for businesses, and whether the announced ratification timeline in both countries will hold.