Switzerland and China seal trade pact eliminating most tariffs on Swiss goods
Switzerland and China have reached a new trade agreement that removes tariffs on almost all Swiss exports to China, while granting Chinese investors broader market access.
Swiss officials confirmed on August 20 that a fresh trade treaty with China will virtually eliminate duties on Swiss exports, covering 99.8% of current shipments. Signature products like watches, pharmaceuticals and precision instruments will now enter China duty-free, while Chinese investors gain expanded access to Swiss markets. The announcement boosted Swiss equities, notably Swatch Group and Richemont, and helped the SMI index recover some earlier losses.
The pact also introduces tougher labour-rights and environmental provisions, and uniquely cites the Universal Declaration of Human Rights. Negotiations concluded a long-running update to the 2014 free-trade agreement, with formal signing slated before the end of 2026. China remains Switzerland’s third-largest trading partner after the EU and the United States.
Why it matters
The deal dramatically lowers costs for Swiss exporters and deepens economic ties with China, affecting markets and trade policy.
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