China and Switzerland agree on expanded free-trade deal removing tariffs

China and Switzerland wrapped up negotiations on an expanded free-trade agreement on August 20, aiming to eliminate tariffs on a wider range of products and deepen cooperation across sectors from e-commerce to green development. The upgraded deal marks the most significant overhaul of the bilateral trade relationship since the original agreement took effect on July 1, 2014.

Bilateral trade between the two countries hit approximately CHF 59 billion (roughly $74 billion) in 2023. Swiss exports to China alone accounted for CHF 40.6 billion of that figure. China ranks as one of Switzerland’s three largest trading partners, trailing only the EU and the US.

What’s actually in the deal

The upgraded FTA goes well beyond simple tariff reductions. The agreement expands zero-tariff treatment to additional product categories and deepens cooperation in goods, services, investment, rules of origin, trade facilitation, e-commerce, environmental standards, and broader economic collaboration.

Switzerland’s Foreign Minister Ignazio Cassis and China’s Foreign Minister Wang Yi have both positioned the enhancement as a critical measure to strengthen bilateral trade and investment during a period of considerable global market uncertainty.

How we got here

Feasibility discussions kicked off in early 2024, with formal negotiations launching in September of that year. At least four rounds of talks took place between September 2024 and March 2026, culminating in the agreement announced this week.

The original agreement was itself something of a milestone. Switzerland was one of the first European countries to sign an FTA with China, giving its exporters an early-mover advantage in a market that has since become the world’s second-largest economy.