Switzerland and China sign protocol to upgrade free trade agreement

Signing in Beijing

President Xi Jinping met Swiss President Guy Parmelin in Beijing as the two countries signed the protocol on 30 October 2026, RTHK reported. The Local Switzerland said the signing took place at the Great Hall of the People. The two countries first announced the deal in August.

The protocol grants 99.8% of Swiss exports duty-free access to China over the next 10 years, up from around half of shipments previously, RTHK reported. Le News put the current duty-free share at 53.8%. Negotiations began in 2024 and ended after five rounds, swissinfo reported.

Watches, pharmaceuticals and precision instruments can go to China fully duty-free, the Straits Times reported. Duties will be eliminated on all Swiss watch imports, of which only 1% were previously tariff-free, though producers will still pay China's luxury consumption tax, RTHK reported. Swiss cheese and coffee will also see duties removed, bringing them in line with chocolate and wine, which were already tariff-free.

Bern estimates Swiss exporters could save around CHF 244 million a year. Roughly three-quarters of the new exemptions take effect as soon as the agreement enters into force, Le News reported.

Swiss goods exports to China were CHF 15.2 billion in 2025, and imports were about CHF 18.3 billion, according to the Swiss economics ministry. Two-way trade excluding gold and valuables was around CHF 33.5 billion. Swissinfo reported China is Switzerland's third-largest trading partner after the EU and the US.

The update also covers rules of origin, trade facilitation, trade in services, digital trade, competition, and economic and technical cooperation, the EAER said. It widens Swiss access to Chinese manufacturing-related services, aircraft maintenance and maritime transport, RTHK reported. Swiss investors gain improved access to the Chinese market, according to swissinfo.

Swiss concessions

In exchange, the protocol removes tariffs on 97.3% of Chinese agricultural exports to Switzerland, up from 80.1%, RTHK reported. Chinese imports into Switzerland are already almost entirely duty-free, swissinfo reported. The Straits Times reported the original free trade agreement, in force since 2014, exempted almost all Chinese sales to Switzerland but only about half of Swiss exports to China.

Labour and environmental clauses

Le News reported, citing the economics ministry, that China had accepted International Labour Organisation fundamental rights provisions in a free trade agreement for the first time. The government said the two countries agreed to implement ILO conventions and uphold fundamental labour rights. The Straits Times reported the Swiss statement said China agreed for the first time in an FTA to include a reference to the Universal Declaration of Human Rights.

Le News said the environmental chapter is unusually extensive, with commitments on cleaner energy and the circular economy.

Approval in Bern

Parliament must still approve the deal. Earlier committee discussions were broadly favourable, though labour rights and environmental safeguards proved contentious, Le News reported.

The Straits Times reported the accord offers Switzerland relief as its export-oriented economy faces continued risks from US trade policy. Washington imposed a 39% levy on Swiss goods in August 2025, at the time the steepest among developed nations. RTHK reported that observers see the Swiss deal as a potential litmus test for Beijing's approach to other European economies.