Export Knowhow

Leveraging Free Trade Agreements – Achieving More in Exports

Nov 21, 2025

Free trade agreements (FTAs) guarantee Swiss and Liechtenstein companies privileged access to international markets thanks to reduced tariffs and further trade facilitation. Nevertheless, many companies are not fully exploiting the potential of such agreements. This article explains the benefits of FTAs and the requirements that must be met in order to benefit from them.

As of November 2025

In addition to agreements with the EU and within EFTA, FTAs in 45 other countries offer Swiss and Liechtenstein companies reliable, predictable and preferential conditions for cross-border trade (as of December 2025, see map). They promote access to foreign markets, lower trade barriers and facilitate planning security in the export business. The free trade network covers markets in Europe, Asia, North and South America and Southern Africa.

What Free Trade Agreements Can Do for Day-to-Day Exports

Tariff reductions are the best-known benefit of FTAs. However, they require active engagement, in particular proof of the preferential origin of the goods. Many other benefits apply automatically as soon as a company engages in trade with a partner country.

Those who are familiar with the content of an FTA can leverage these opportunities, such as simplified customs procedures, improved conditions in the services sector, access to public tenders, better protection of intellectual property, and the elimination of non-tariff barriers. The provisions also improve legal certainty and transparency for Swiss and Liechtenstein companies in foreign markets. Agreements can be viewed by region on the website of the State Secretariat for Economic Affairs (SECO).

Tariff Savings Through Free Trade Agreements and Untapped Potential

Significant tariff savings can be achieved thanks to Switzerland’s existing FTAs. In its latest FTA Monitor for 2023, SECO does not report export savings for all target destinations. However, for the 49 listed countries – excluding China, for example – the savings amount to CHF 1.4 billion.

At the same time, the analysis of FTAs utilization shows that many companies are not yet fully exploiting the potential of these agreements, for various reasons. For exports, the expected utilization rate in 2023 is between 48.1% (Morocco) and 75.8% (Japan).

Who is Already Benefiting and Who Can Follow Suit

Many exporting companies in Switzerland are strategically harnessing the benefits of FTAs, particularly in sectors with high price sensitivity such as mechanical engineering and medtech. These companies have put the necessary structures in place, possess the requisite knowledge about proof of origin, and have adapted their processes accordingly.

By contrast, other less export-oriented companies often lack practical know-how or suitable processes for applying them correctly. Fortunately, getting started can be easier than expected. The crucial factor is to determine on a case-by-case basis whether the effort is proportionate to the potential customs savings.

Which Conditions Must Be Met to Enjoy Customs Benefits?

Several conditions must be met if a company is to benefit from customs exemption or reduction in the destination country under an FTA. Detailed information and FAQs on the most popular partner countries can be found in our FTA dossier. Briefly summarized, the following points are relevant:

  • Goods covered by the relevant FTA
    Each FTA lists the products eligible for preferential treatment.
  • Territorial requirements (including direct shipping)
    The FTA may also stipulate down territorial requirements regarding transport. For example, goods exported from Switzerland must in principle be delivered directly to the EU and cannot, for instance, first enter free circulation in the USA and then come into the EU.
  • Compliance with the no-drawback rule
    No non-preferential materials for which customs duties have been repaid or never levied may be used during production, for example in processing. Some agreements provide for exceptions.
  • Originating product referred to in the FTA
    Each FTA defines the conditions that a product must meet in order to be considered as an originating product. This is specified in substantive provisions and lists. Typically, a certain value criterion and/or jump in tariff classification must be met. For example, goods imported from the USA and re-exported to the EU unchanged or with only minimal processing in Switzerland cannot be considered originating products. Some FTAs allow materials that have already been proven to originate in another contracting state to be take into account when calculating the threshold for the required degree of processing (cumulation).
  • Submission of valid proof of origin
    The FTAs determine which proofs of origin may be used to substantiate certificates of origin. For example, goods shipped to Japan without a valid proof of origin do not qualify for preferential tariff treatment, even if they are originating goods.

Information on the requirements for originating products, the necessary certificates of origin and the current preferential tariff rates (based on customs tariff numbers) can be found in our free customs database.

Why It’s Worth Taking a Look at the FTA and Where to Find Support

FTAs offer Swiss companies tangible benefits, ranging from customs savings to simpler customs processes and better market access. Those who understand FTAs and use them in a targeted way can strengthen their competitiveness.

Switzerland Global Enterprise supports companies in using FTAs correctly and efficiently, with advice on rules of origin, customs processes and international supply chains.

Individual consultation

If you have any questions or require further information, please contact the ExportHelp team of Switzerland Global Enterprise at exporthelp@s-ge.com or phone 0844 811 812.

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