Switzerland and China modernize free trade deal, aiming for 99.8% duty-free exports

Switzerland and China have reached a significant milestone in their economic relationship with the signing of a memorandum of understanding to modernize their existing free trade agreement. The deal, announced by the Swiss Federal Department of Economic Affairs, Education and Research, is the culmination of two years of negotiations between Bern and Beijing.

This updated agreement is poised to dramatically increase the proportion of Swiss exports to China that are exempt from customs duties. Currently, only about half of Swiss exports benefit from duty-free status under the 2014 agreement. However, the new text aims to ensure that, in the medium term, 99.8% of Swiss exports to China will be free from taxes, according to the State Secretariat for Economic Affairs (Seco).

Switzerland holds a unique position as the only European country to have such a comprehensive free trade arrangement with China. The modernization of this agreement is expected to further solidify China's role as a key trading partner for Switzerland, potentially surpassing Slovenia in trade volume by 2025, as indicated by the headline.

The enhanced free trade agreement is anticipated to provide a substantial boost to Swiss businesses looking to export goods to the vast Chinese market. By removing nearly all customs barriers, the deal aims to create more favorable conditions for Swiss companies, strengthening their competitiveness and expanding their reach.