China, Switzerland Complete FTA Upgrade Negotiations

China and Switzerland announced the successful completion of negotiations to upgrade their free trade agreement (FTA) on Thursday, a landmark deal that will expand duty-free access for nearly all Swiss exports to the Chinese market and deepen economic cooperation between the two nations. The announcement was made jointly by Swiss President Guy Parmelin and Chinese Commerce Minister Wang Wentao following a meeting in Bern, where they also signed a Memorandum of Understanding to formalize the conclusion of talks, according to Xinhua News.

A Milestone in Bilateral Relations

The upgraded agreement marks a significant milestone in the China-Switzerland economic relationship, which dates back to the original FTA signed in July 2013 and implemented in July 2014—China’s first free trade agreement with a continental European country. Negotiations for the upgrade were officially launched in September 2024 and concluded after five rounds of talks, a relatively swift timeline that underscores the strong political will on both sides.

Under the revised agreement, 99.8 percent of Switzerland’s current exports will be able to enter the Chinese market duty-free, a dramatic improvement from approximately half under the original 2014 FTA. The Swiss Federal Council stated that “Switzerland has achieved its negotiating objectives,” noting that the optimised FTA “rectifies this imbalance” in the previous agreement, under which almost all Chinese imports into Switzerland were already duty-free.

Expanding Market Access and Cooperation

The upgraded agreement extends well beyond tariff reductions, covering rules of origin and trade facilitation, trade in services, digital trade, competition, and economic and technical cooperation. The optimised FTA also ensures Swiss investors have access to the Chinese market, and provisions on environmental issues and labour rights will be expanded and strengthened in the revised agreement.

In a notable development, China agreed for the first time in an FTA to include a reference to the Universal Declaration of Human Rights, as reported by The Straits Times. China also committed to stricter rules on labour rights and environmental issues in a revised sustainability chapter of the deal.

Leaders’ Statements

Speaking at the announcement, Wang Wentao emphasized the broader significance of the agreement. “Amid the current international environment full of uncertainties, this demonstrates the two sides’ clear commitment to choosing certainty and supporting free trade,” he said, as reported by Global Times. The Chinese commerce minister noted that both sides committed to achieving “higher-standard two-way opening in goods, services, investment, rules and other areas,” which will create new opportunities for bilateral economic and trade cooperation.

Parmelin echoed these sentiments, describing the successful upgrade as “another important milestone in the development of bilateral relations.” He said the agreement will provide “more stable, transparent and predictable institutional guarantees for the long-term development of enterprises of both countries” and sends “a positive signal that the two sides are advancing open cooperation, free trade, and the maintenance of a rules-based international economic and trade environment.”

Trade Relationship at a Glance

China is Switzerland’s third most important trade partner after the European Union and the United States. Bilateral trade has grown substantially over the past decade, expanding from 31.7 billion Swiss francs in 2015 to 51.2 billion francs in 2025, according to figures cited by Reuters via Global Banking and Finance Review. Bilateral trade amounted to approximately 46 billion Swiss francs ($57.6 billion) so far in 2026.

Signature Swiss exports to China include watches, pharmaceuticals, precision instruments, chemicals, jewelry and precious metals—sectors that stand to benefit significantly from the expanded duty-free access. Major Chinese exports to Switzerland include mechanical and electrical products.

The news of the completed negotiations lifted Swiss stocks, including watchmakers Swatch Group and Richemont SA, according to Anadolu Agency.

Strategic Significance Amid Global Trade Tensions

The FTA upgrade carries significant strategic weight, arriving against a backdrop of global trade uncertainties and rising protectionism. Switzerland has faced significant pressure from US tariff policy, with the Trump administration initially imposing a 39 percent levy on Swiss goods—at the time the steepest among developed nations—before later capping it at 15 percent through a preliminary agreement.

The completion of the upgrade negotiations demonstrates both countries’ commitment to free trade and open cooperation at a time when the rules-based international trading order faces unprecedented challenges. For Switzerland, the agreement provides some relief from the continued risks the export-oriented economy faces from US trade policy and strengthens its competitive position relative to EU competitors in the Chinese market.

For China, the deal aligns with its broader strategy of deepening economic ties with Europe amid ongoing US-China tensions. The swift completion of negotiations—approximately two years from launch to conclusion—signals strong political will on both sides to move forward with economic integration.

The upgrade also comes at a symbolic moment: 2026 marks the start of China’s 15th Five-Year Plan and the 10th anniversary of the China-Switzerland innovative strategic partnership. The fourth round of FTA enhancement negotiations was held in Switzerland from March 2-5, 2026, making positive progress on issues including trade in goods, trade in services, investment, rules of origin, trade facilitation, e-commerce, environment, and economic and technical cooperation, according to the MOFCOM FTA Network.

What’s Next

Following the completion of the legal review of the texts, the two sides will work towards signing the agreement, with the aim of formalizing it by the end of 2026. After signing, the agreement will undergo domestic approval procedures in both countries before entering into force.

The upgraded China-Switzerland FTA represents a significant step forward in bilateral economic relations and serves as a powerful example of two nations choosing cooperation and open markets over protectionism in an increasingly uncertain global trade environment. As both sides work toward final signature and implementation, the agreement’s success will be measured not only in tariff reductions but in the depth of economic integration it enables between two of the world’s most dynamic economies.