trade
Swiss exporters poised for major tariff breakthrough in China
Switzerland and China have concluded negotiations on a revised trade agreement that would eventually remove tariffs on 99. 8% of current Swiss exports to China, creating a significant opportunity for Swiss exporters.
99.8% of current Swiss exports to China would eventually qualify for duty free access under a revised trade agreement concluded by Bern and Beijing. Guy Parmelin, Switzerland’s economy minister, and Wang Wentao, China’s commerce minister, announced the conclusion of negotiations in Bern on Thursday, marking the biggest tariff expansion since the original agreement entered into force in 2014.
The Swiss government estimates that the deal could reduce customs costs for Swiss exporters by around CHF 244 million a year. Roughly three quarters of the new exemptions would apply as soon as the agreement takes effect. The countries expect to sign the final agreement formally this year, subject to approval by the Swiss Parliament.
The package gives Swiss companies a wider route into China’s large consumer and industrial market at a time when American tariffs and geopolitical uncertainty are altering global trade flows. It also updates a deal that left major gaps for important Swiss products.
For exporters in watchmaking, pharmaceuticals, food production and specialty manufacturing, the expected change is practical. Lower border costs can improve margins, reduce prices for Chinese buyers or support investment in distribution and service networks. The agreement’s benefits will arrive at different speeds, however, with some sensitive products facing long transition periods.
The Deal Closes Long Standing Gaps
The current agreement leaves 46.2% of Swiss goods exports outside duty free treatment, while the revised text would close almost all of that gap. Switzerland became the first European country to conclude a free trade agreement with China, and the accord has helped deepen economic ties with Switzerland’s third largest trading partner since 2014.
Its tariff coverage, however, remained uneven. Only 53.8% of Swiss goods exports currently enter China without customs duties. Switzerland has already removed tariffs on imports of industrial goods from China, creating an imbalance that Swiss negotiators sought to address during two years of talks.
Swiss watches received limited tariff concessions under the existing framework. Pharmaceutical products benefited only partially, while cheese and coffee continued to face barriers. The revised agreement extends concessions across those categories, potentially giving companies in several Swiss regions more predictable access to Chinese customers.
The value of the change will depend on how firms use it. Large exporters may pass savings through supply chains or expand local sales operations. Smaller producers, particularly in food and luxury goods, could gain from lower landed costs but will still face Chinese regulations, certification requirements and competition from established domestic and international suppliers. Tariff relief opens the door. It does not remove the commercial work behind it.