Switzerland and China concluded negotiations to upgrade their existing free trade agreement, eliminating tariffs on 99.8% of Swiss exports to China, the Swiss State Secretariat for Economic Affairs (SECO) announced on Thursday.
Under the current framework, only about half of Swiss exports enter China duty-free. The revised agreement will expand duty-free access to nearly all categories, generating annual tariff savings of approximately 244 million Swiss francs, SECO said. Chinese imports to Switzerland are already largely tariff-free.
Key sectors benefiting from phased tariff reductions include watches, pharmaceuticals, machinery and chemical products, with implementation spread over multiple years. Agricultural products such as cheese and roasted coffee will face a 10-year phase-out, while items like chocolate, baby food, wine and dried meat already enter China duty-free. Sensitive agricultural products, including fruits, vegetables and fruit juices, will see tariff cuts within existing WTO quotas, accounting for seasonal constraints.
The agreement also addresses specific Chinese interests, such as pet food, sunflower seeds and oilseeds, while aligning concessions with Swiss agricultural policy. About 80% of Chinese agricultural exports already enter Switzerland duty-free.
Environmental and labor provisions were strengthened, with a dedicated chapter on sustainable development introducing binding commitments. SECO described these as among the most ambitious environmental chapters Switzerland has negotiated and the most stringent China has accepted in any free trade deal to date. A new digital trade chapter includes provisions on bulk parcel shipments, emphasizing cooperation on product safety and enforcement.
The preamble was updated to reference the Universal Declaration of Human Rights—a first for China in a free trade agreement—alongside references to obligations under multilateral environmental accords. Additional adjustments cover rules of origin, service trade, competition and technical cooperation.
Critics questioned the enforceability of the new commitments. Thierry Theurillat, professor at the Neuchâtel School of Business, noted ongoing environmental and labor concerns in China, asking who would ensure compliance. Lionel Fatton of Webster University in Geneva highlighted the absence of progress on human rights, warning of potential backlash from civil society.
Swiss political parties including the Greens and Social Democrats signaled reservations, with the Greens threatening a referendum. The legal text will now be finalized ahead of a planned signing in 2026, followed by parliamentary approval processes in both countries.
Switzerland and China established their original free trade agreement in 2014. Negotiations to upgrade the pact began in 2024 and concluded after five rounds. China ranks as Switzerland’s third-largest trading partner, with bilateral goods trade totaling 33.5 billion francs in 2023—Swiss exports to China amounted to 15.2 billion francs, while imports reached 18.3 billion francs.
