Global Media Focus | China-Switzerland Free Trade Agreement Upgrade Protocol Sends Signal on Trade Barriers

On October 30, China and Switzerland signed a protocol to upgrade the China-Switzerland Free Trade Agreement in Beijing. According to the upgraded protocol, China and Switzerland will make high-level openness commitments in the fields of goods, services and investment based on the original free trade agreement, and further upgrade rules in areas such as origin, trade facilitation, technical trade barriers, digital trade, competition, trade and sustainable development. After the upgrade protocol is signed, China and Switzerland will respectively carry out their respective domestic legal approval procedures and promote the early entry into force of the protocol.

Reuters reported that the China-Switzerland Free Trade Agreement Upgrade Protocol has resisted the trend of rising global protectionism and is in sharp contrast to the United States and Europe’s approach of erecting trade barriers. The report quoted Swiss Confederation President Parmland's statement as saying that this marks a new stage in the relationship between the two countries, and both sides are proud of the results of the negotiations.

Swiss German Radio and Television (SRF) reported that this is a signal sent in response to the increasing trade barriers. The report quoted former Swiss Ambassador to China Bernardino Regazzoni as saying that the upgraded protocol is in sharp contrast to the increasing trade restrictions of the United States and the European Union and has opened up new opportunities for Switzerland.

In addition, the report quoted Pamlan as saying that mutual trust is the key for China and Sweden to quickly achieve this positive result. The Protocol further upgrades rules in areas such as trade and sustainable development. Palmland said that this is the highest level of sustainable development chapter that Switzerland has negotiated with other countries so far.

Swiss Radio and Television (RTS) quoted the Swiss Federal Ministry of Economic Affairs as saying that the protocol upgrades the free trade agreement between the two countries that took effect in 2014, will help Swiss goods and investments enter the Chinese market, and at the same time establish a modern and complete institutional framework for economic and trade investment between the two sides.

The Swiss Mechanical and Electrical Engineering Industry Association (SWISSMEM) issued a statement on October 30, welcoming the signing of the protocol to upgrade the China-Switzerland Free Trade Agreement and supporting the early approval of the protocol in Switzerland. The statement stated that after the protocol comes into effect, the Swiss machinery and precision instrument industry will benefit most significantly. In addition to tariff reductions and exemptions, the protocol updates rules of origin, introduces trade facilitation measures, and improves investment-related conditions. These provisions jointly build a better institutional environment and help Swiss companies gain a foothold in the fiercely competitive Chinese market. Swiss export-oriented small and medium-sized enterprises will especially benefit. The statement pointed out that China is an important economic growth engine and a key market for Swiss goods and services. The upgraded protocol further consolidates stable market access channels for Swiss companies to China, and at the same time expands new market space for Switzerland, which is conducive to reducing Switzerland's unilateral dependence.