On August 20, China and Switzerland formally announced in Bern the completion of negotiations to upgrade their free trade agreement. Chinese Commerce Minister Wang Wentao and Swiss President and Federal Councillor for Economic Affairs, Education and Research Guy Parmelin jointly announced the news and signed a memorandum of understanding. Chinese Ambassador to Switzerland Qian Minjian and Swiss Ambassador to China Jürg Burri attended the event.

According to a statement released by the Swiss government the same day, the new agreement will grant zero-tariff treatment to 99.8% of Swiss goods currently exported to China. Signature Swiss export products such as watches, pharmaceuticals, and precision instruments will be able to enter the Chinese market completely duty-free. At the same time, Swiss investors will also gain more convenient access to the Chinese market.

Under the original FTA that took effect in 2014, nearly all Chinese exports to Switzerland were duty-free, but only about half of Swiss exports to China enjoyed equivalent treatment. The new agreement also covers rules of origin and trade facilitation, services trade, digital trade, competition, and economic and technical cooperation.

Wang Wentao stated that in January 2026, President Xi Jinping sent a congratulatory message to President Parmelin, emphasizing China’s willingness to work with Switzerland to continuously expand mutually beneficial cooperation and push China-Switzerland relations to new heights. In September 2024, the two sides launched FTA upgrade negotiations, which were successfully completed after five rounds of consultations. Both sides committed to achieving higher-level two-way opening in areas including goods, services, investment, and rules.

He emphasized that this year marks the first year of China’s 15th Five-Year Plan and the 10th anniversary of the establishment of the China-Switzerland innovative strategic partnership. China’s Ministry of Commerce is willing to work with Switzerland’s Federal Department of Economic Affairs, Education and Research to implement the important consensus reached by the two countries’ leaders, complete the formal signing and implementation of the upgraded agreement as soon as possible, and promote the quality and upgrading of bilateral economic and trade relations.

Parmelin stated that China and Switzerland cooperate closely, with vibrant economic and trade relations, and that the Swiss government and business community attach great importance to economic and trade cooperation with China. The successful upgrade of the agreement is another important milestone in the development of bilateral relations, providing more stable, transparent, and predictable institutional safeguards for the long-term development of enterprises in both countries, and sending a positive signal of both sides’ commitment to open cooperation, free trade, and maintaining a rules-based international economic and trade environment.

A “Pressure-Relief Valve” for Swiss Exporters

For Switzerland, which is highly dependent on exports, this agreement undoubtedly provides relief amid a complex international trade landscape. According to Reuters, bilateral trade volume has reached 46 billion Swiss francs (approximately $57.6 billion, ~388.6 billion yuan) so far in 2026; according to Swiss customs data, trade between the two countries has grown from 31.7 billion francs in 2015 to 51.2 billion francs last year. China is an important market for Swiss chemicals, pharmaceuticals, precision instruments, and watches, and is Switzerland’s third-largest trading partner after Germany and the United States.

Following the announcement, shares of Swiss companies such as Swatch Group and Richemont rose accordingly.

Bloomberg analysis noted that amid current global trade uncertainty, particularly sustained pressure from U.S. trade policy, this new agreement with China is viewed by Switzerland as an important “pressure-relief valve.” It not only consolidates Swiss export competitiveness but also reflects China’s strategy of actively deepening economic ties with European countries while competing with the United States for global influence.

The Swiss government reached a preliminary agreement with Washington last November to cap tariffs at 15%, but doubts remain because the U.S. has been unwilling to sign a legally binding agreement. Last summer, the Trump administration initially imposed a 39% tariff on Switzerland, the highest rate among developed countries at the time, which shocked Swiss political and business circles.

Key Milestones in the Upgrade Negotiations

The China-Switzerland FTA was signed in July 2013 and took effect in July 2014, making it China’s first free trade agreement with a continental European country. Following the completion of upgrade negotiations, both sides will expedite their respective domestic procedures to formally sign the upgrade protocol at an early date.

It is reported that after completing legal review, China and Switzerland plan to formally sign the agreement later this year, followed by the initiation of their respective domestic ratification procedures.

Against the backdrop of multiple challenges facing international trade rules, the completion of China-Switzerland FTA upgrade negotiations sends a clear signal of both sides’ support for free trade and opposition to protectionism. For Switzerland, deepening institutional economic and trade arrangements with China amid persistent uncertainty in U.S.-Europe trade relations provides an important anchor of stability for its export-oriented economy.