Switzerland, China agree to eliminate nearly all tariffs on Swiss exports

Switzerland and China concluded negotiations Thursday on an upgraded free trade agreement that will grant 99.8% of Swiss exports tariff-free entry into the Chinese market, a major expansion of the 2014 deal under which only just over half of Swiss exports were duty-free.swissinfo+1

Federal President and Minister for Economic Affairs Guy Parmelin and Chinese Commerce Minister Wang Wentao announced the conclusion of negotiations at a meeting in Bern, according to the Swiss Federal Department of Economic Affairs, Education and Research.swissinfo

What the Deal Covers

Beyond tariff elimination, the upgraded agreement covers rules of origin, trade facilitation, trade in services, digital trade, competition, and economic and technical cooperation. It also secures better access to the Chinese market for Swiss investors and strengthens provisions on environmental issues and labor rights.investing+2

Chinese imports into Switzerland are already almost entirely duty-free under the existing 2014 agreement, which was Beijing's first free trade deal with a continental European economy. The tariff-free treatment for Swiss exports will be phased in over transition periods.english.aawsat+1

Strategic Context

The deal comes as China seeks to strengthen economic ties in Europe amid its ongoing rivalry with the United States for global influence, according to Bloomberg. China is Switzerland's third most important trading partner after the European Union and the United States, with bilateral trade amounting to 46 billion Swiss francs ($57.6 billion) so far in 2026, according to Reuters. Trade between the two countries grew from 31.7 billion francs in 2015 to 51.2 billion francs last year.bloomberg+2

Path Forward

Negotiations on the upgrade began in 2024 and were concluded after five rounds. A formal signing is expected before the end of this year, following completion of a legal review, after which domestic approval processes in each country will take place.english.aawsat+1

Switzerland was one of the first European countries to sign a free trade agreement with China when the original deal took effect in 2014, giving Swiss exporters an early-mover advantage in what has since become the world's second-largest economy. Key Swiss exports to China include chemicals, pharmaceuticals, precision instruments, and watches.cryptobriefing+1