Switzerland and China have finalized negotiations to upgrade their bilateral free trade agreement, addressing a longstanding asymmetry in market access. Under the current framework, nearly all Chinese imports enter Switzerland duty-free, while only about half of Swiss exports to China benefit from the same treatment. The revised deal aims to raise that share to 99.8%, effectively eliminating tariffs on Swiss goods entering the Chinese market.
The agreement also secures improved market access for Swiss investors in China and strengthens provisions on environmental standards and labor rights. Following legal review, the pact is scheduled for signing in 2026, subject to domestic ratification in both countries.
Negotiations to modernize the 2014 accord began in September 2024 and concluded after five rounds. China ranks as Switzerland’s third-largest trading partner after the EU and the U.S., and the Swiss government views the deal as a step toward diversifying export markets amid trade tensions with the U.S. The modernization process faced delays last year amid concerns over human rights in China, though talks resumed without further disruption.
The agreement follows recent trade deals by the European Free Trade Association (EFTA)—of which Switzerland is a member—including a 2024 pact with India to reduce tariffs on pharmaceuticals, machinery, watches, and optical instruments, as well as an earlier accord with Mercosur states in South America.
