Switzerland and China have reached a milestone in the revision of their free trade agreement. According to a SECO press release dated 20 August 2026, President Guy Parmelin and Chinese Minister of Commerce Wang Wentao announced that day, at a meeting in Bern, that the negotiations on the optimisation of the free trade agreement between Switzerland and the People's Republic of China had been concluded.
It should be made clear from the outset what this announcement covers: concluded negotiations do not amount to an agreement in force. The press release describes the next steps in the process. Once the legal review of the texts has been completed, the two countries will work towards signing the agreement. The aim is to sign it by the end of 2026, followed by the required domestic approval procedures. The press release gives no date for entry into force.
A tariff imbalance the revision aims to correct
The key point for exporting companies lies in a comparison provided by SECO. Under the current agreement, almost all Chinese imports into Switzerland are exempt from customs duties, whereas this is the case for only about half of Swiss exports to China. According to the press release, the optimised agreement corrects this imbalance: 99.8% of Switzerland's current exports will be able to enter the Chinese market duty-free.
The shift from about half to 99.8% is therefore the change that emerges from the text. Two clarifications are nonetheless needed. First, this figure describes what the revised agreement provides for, not a situation already in place: it will only apply once the signature and approval stages have been completed. Second, the press release does not specify the products or sectors concerned, any tariff phase-out periods, or the amounts of customs duties at stake. It is therefore not possible, on the basis of this source alone, to estimate what the agreement would change in practice for any given company.
Beyond customs duties
The revision is not limited to tariffs. According to SECO, the optimised agreement also guarantees Swiss investors access to the Chinese market. In addition, the provisions on environmental issues and workers' rights will be expanded and strengthened.
The press release also lists other areas covered by the optimisation:
- rules of origin and trade facilitation;
- trade in services;
- digital trade;
- competition;
- economic and technical cooperation.
The specific content of these chapters is not described in the press release. SECO refers to two documents published the same day: a memorandum of understanding between the Federal Department of Economic Affairs, Education and Research and the Ministry of Commerce of the People's Republic of China on the conclusion of the negotiations, and a fact sheet on the optimisation of the agreement. These documents were not consulted for this article.
What this may mean for exporters
For Swiss companies selling in China, the announced stakes are first and foremost tariff-related. One possible reading is that exporters whose products currently enjoy no duty exemption would be the most directly affected by the announced expansion. The source does not, however, say which companies or sectors would benefit, or to what extent.
The press release also states that the revision covers rules of origin and trade facilitation, two areas that are part of exporters' day-to-day practice, but it does not specify the changes made. As for the effects on employment in Switzerland or on the prices paid by households, the press release says nothing; it would be premature to put any forward.
The context: a 2014 agreement and a leading partner
The free trade agreement between Switzerland and China dates from 2014. Negotiations on its optimisation were officially launched in September 2024 and concluded after five rounds of talks. According to SECO, Switzerland achieved its negotiating objectives. This is the Swiss side's assessment; the press release does not report that of the Chinese side.
The press release notes that China is Switzerland's third-largest trading partner, after the European Union and the United States. Again according to this text, by optimising the agreement, the Federal Council is improving and securing access to the Chinese market, thereby helping Swiss companies to diversify their export markets. The press release does not, however, provide any trade volumes or data that would make it possible to measure this weight or how it has changed over time.
It also presents the official Swiss position: it mentions no criticism and no differing interpretation, for example regarding the scope of the environmental and social provisions. Their absence from this source does not allow the conclusion that none exist.
Next steps
- completion of the legal review of the texts;
- signature of the agreement, targeted by the end of 2026;
- required domestic approval procedures;
- entry into force: no date is given in the press release.
