Switzerland and China have concluded negotiations on the revision of their free trade agreement. For Swiss exporters, this is a major development: in the medium term, 99.8 percent of current Swiss exports to China should be able to be imported duty-free. According to SECO, this currently applies to only 53.6 percent.
However, it is important to note: the new tariff rates are not yet in effect.
The agreement will first be legally finalized and is expected to be signed in 2026. After that, the necessary approval procedures must be completed in both countries. There is currently no concrete date for the agreement's entry into force.
The 99.8 percent will not be implemented all at once. Upon entry into force, 77.5 percent of Swiss exports should be duty-free. For additional goods, tariffs will be gradually reduced over a period of five to a maximum of ten years.
Classic Swiss export sectors are expected to benefit particularly. In watches, pharmaceuticals, machinery, precision instruments, plastics, and chemicals, duty-free trade coverage should reach virtually 100 percent following the transition periods. SECO estimates the additional possible tariff savings volume at approximately 244 million francs.
For customs clearance, however, tariff rates are not the only factor of interest. Rules of origin will also be adjusted. In future, processing steps in a third country should be possible under certain conditions. Furthermore, the previous requirement that preferential goods must be transported directly between China and Switzerland will be eliminated. Electronic certificates of origin will also be included in the new regulatory framework.
This can provide real relief, particularly for international supply chains. Nevertheless, the following continues to apply: duty-free treatment is only granted if the goods actually meet the prescribed rules of origin.