Switzerland and China Negotiate Free Trade Agreement Update

Switzerland and China are advancing negotiations to modernize their 2014 Free Trade Agreement (FTA), with the shared objective of finalizing an upgraded framework by early 2026. Both sides recognized the FTA’s role in strengthening bilateral trade and committed to advancing negotiations pragmatically toward a higher-level agreement.

Expanding market access and economic integration

The upgrade aims to expand the range of zero-tariff goods — extending to high-tech machinery and precision manufacturing equipment that were excluded from the 2014 agreement. Enhanced provisions will also improve market access for services, support digital and e-commerce trade, and streamline customs procedures to reduce non-tariff barriers, such as technical and sanitary standards.

Intellectual property and new areas of cooperation

The revised framework will strengthen mechanisms for intellectual property protection and enforcement, responding to evolving industrial realities.

Switzerland and China also intend to deepen cooperation in artificial intelligence, green technologies, and sustainable development, aligning with their ongoing bilateral dialogues on finance, and environmental protection. A parallel labour-related agreement is under consideration, aiming to embed social and sustainability commitments within the broader trade architecture.

Implications for businesses

For companies, the FTA upgrade signals a forthcoming phase of deeper economic integration and predictable trade conditions between Switzerland and China. Expanded tariff reductions, stronger legal protections, and cooperation on digital and environmental standards are expected to enhance competitiveness and market confidence across sectors ranging from machinery and pharmaceuticals to green innovation and financial services.