Beijing, (TDI): China and Switzerland have officially launched negotiations to upgrade their free trade agreement (FTA), as announced by China’s Ministry of Commerce (MOFCOM) on Monday.
This decision came during a videoconference between Chinese Minister of Commerce Wang Wentao and Swiss Federal Councilor Guy Parmelin, who also heads the Federal Department of Economic Affairs, Education and Research.
During the discussions, both officials expressed their commitment to expedite talks and reach a high-level upgraded agreement focused on mutual benefits and win-win outcomes.
Wang highlighted that the existing FTA, in place for nearly a decade, has significantly bolstered bilateral trade and provided tangible benefits to enterprises in both countries.
The proposed upgrade aims to further expand bilateral trade, enhance two-way investment, and strengthen economic cooperation, particularly in light of the growing global resistance to economic globalization.
Wang noted that this move also underscores both nations’ commitment to free trade and open cooperation.
Also Read: Kyrgyzstan-China Trade Hits $11b
Signed in July 2013, the FTA marked Switzerland as the first European nation to establish a comprehensive trade agreement with China.
The agreement, effective from 2014, has allowed 99.7 percent of Chinese exports to Switzerland and 84.2 percent of Swiss exports to China to benefit from zero tariffs, thus boosting bilateral trade significantly.
The initiative to upgrade the FTA was first discussed during a leaders’ meeting in Switzerland in January 2017, leading to a joint feasibility study that was completed earlier this year, paving the way for formal negotiations.
Bilateral Trade
In 2023, trade between China and Switzerland reached 416.93 billion yuan ($57.34 billion), reflecting a 9 percent year-on-year increase, as reported by China’s General Administration of Customs.
Major Chinese exports include mechanical and electrical products, while Switzerland primarily exports jewelry, precious metals, and related items to China.
Also Read: Kyrgyzstan, China Seal $50M Deals
Parmelin emphasized the importance of the FTA, describing it as a successful win-win agreement that has benefitted both nations.
He expressed confidence that the upgrade negotiations would demonstrate their joint commitment to fostering a more open and regulated international economic and trade environment, especially amid rising global trade protectionism.
