NEW DELHI: China and Switzerland have finalized negotiations on an updated free trade agreement that will significantly reduce tariffs on Swiss exports to the Chinese market. Under the revised pact, 99.8% of Switzerland’s current exports to China will be eligible for tariff-free treatment, compared with around half under the existing 2014 agreement.

The agreement was announced after Swiss President Guy Parmelin and Chinese Commerce Minister Wang Wentao concluded negotiations in Switzerland. The deal is aimed at improving market access and strengthening economic ties between the two countries at a time when global trade remains under pressure from rising tariffs and growing protectionism.

The revised agreement goes beyond tariff reductions. It expands cooperation in areas including rules of origin, trade facilitation, services, digital trade, competition, and economic and technical cooperation. Swiss investors are also expected to receive improved access to the Chinese market.

Switzerland is an important trading partner for China, with bilateral trade covering products such as pharmaceuticals, chemicals, precision instruments and watches. The two countries’ trade has grown substantially over the past decade, reaching about 51.2 billion Swiss francs in 2025.

The agreement also addresses an imbalance under the previous trade arrangement. While almost all Chinese exports to Switzerland were already largely duty-free, only about half of Swiss exports enjoyed similar treatment in China. The new agreement is intended to provide Swiss businesses with broader and more competitive access to the Chinese market.

However, the agreement is not yet in force. The text will first undergo legal review, followed by the necessary domestic approval and ratification procedures in both countries. Once implemented, the updated pact could further deepen commercial ties between China and Switzerland and provide Swiss exporters with greater opportunities in the world's second-largest economy.