Swissmem: Modernized Switzerland–China Free Trade Agreement

Fewer Tariff Barriers for the Swiss Tech Industry Free Trade Agreement with China

2026-11-06 Source: Press release Celine Hummel | Translated by AI 3 min Reading Time

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Swissmem welcomes the signing of the modernized free trade agreement between Switzerland and China. It is intended to remove tariff barriers for the Swiss tech industry—particularly for machinery and precision products. The updated agreement also includes additional provisions on labor rights and environmental protection.

Switzerland and China signed the modernized Free Trade Agreement (FTA) in Beijing. Swissmem President Martin Hirzel attended the signing ceremony. According to Swissmem, the modernization represents an important step for the Swiss tech industry: While the agreement, which has been in place since 2014, offers tariff advantages, barriers remain—particularly for high-tech products. Removing these barriers improves access to an important market and, according to the association, reduces the competitive disadvantage compared to rivals from countries with more comprehensive free trade agreements, such as Singapore or South Korea.

For the Swiss tech industry, China is not just a market, but also a barometer of its own competitiveness: Anyone who wants to succeed in China must be able to keep pace with Chinese companies in terms of speed, scale, and technology. We will not beat China by following Chinese formulas, but by combining our own strengths in quality and innovation with greater speed, customer focus, and a service-oriented approach.

Martin Hirzel, President of Swissmem

Tariff Elimination for Machinery and Precision Products

According to Swissmem, once the modernized agreement takes effect, 99.8 percent of Swiss exports will be able to enter China duty-free in the medium term, compared with 53.6 percent today. Machinery and precision instruments, in particular, are expected to benefit from this. According to the association, the remaining tariff barriers have a significant impact on the Swiss tech industry: the 5 percent of tariff lines not yet exempt from duties account for 14 percent of its exports to China. In addition to tariff reductions, the modernized agreement provides for revised rules of origin, trade facilitation, and improved conditions for investment. This is intended to improve the conditions for Swiss companies to compete in the challenging Chinese market. According to Swissmem, exporting SMEs in particular stand to benefit from this.

Regulations on Labor Rights and Environmental Protection

The agreement also includes additional commitments in the area of sustainability: According to Swissmem, China has committed—for the first time in an FTA—to respecting fundamental labor rights, including the prohibition of forced and child labor. According to the association, the environmental provisions go further than those in previous Chinese trade agreements and include the implementation of the Paris Climate Agreement. In addition, there are provisions on responsible business conduct based on the UN Guiding Principles on Business and Human Rights. Expert panels can review disputes related to the environment and labor and issue recommendations.

Swissmem Calls for Swift Ratification

China is an important economic hub and a major market for Swiss products and services. Reliable market access makes it easier for Swiss companies to participate in the country’s economic and technological development. The modernized free trade agreement is intended to improve this access. It is important, however, to take a measured approach to capitalizing on these opportunities: Competition is intense, and according to Swissmem, the competitive conditions are not always equal. The protection of knowledge and technology therefore remains important. As part of a broad free trade network, the agreement can open up additional sales opportunities and help reduce one-sided dependencies. Swissmem also welcomes the additional provisions on labor rights and environmental protection and advocates for swift ratification.

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