Update on the Switzerland-China Free Trade Agreement

The revision aims to correct an existing imbalance in market access: while Chinese goods already enjoy almost duty-free access to Switzerland, only about half of Swiss exports to China benefit from duty-free treatment.

Significantly more Swiss exports to be duty-free in the future

With the optimized FHA, it should be possible to eliminate customs duties on 99.8 percent of current Swiss goods exports to China in the medium term. 77.5 percent of exports should be duty-free upon entry into force of the agreement. For other products, tariff reduction periods of five to a maximum of ten years will apply. The additional potential for customs savings is estimated at around CHF 244 million.

Swiss companies in the watch, machine, pharmaceutical and chemical industries are likely to benefit the most. For watches and pharmaceuticals, as well as for machine and chemical exports, full duty-free market access is sought after the agreed transitional periods expire. Improvements were also agreed for selected agricultural products, including cheese, roasted coffee and coffee-based preparations.

Improved rules of origin and digital processes

Modernized rules of origin are also relevant for exporters. Under certain conditions, processing steps will in future also be possible in the territory of a third country. The granting of preferential treatment will no longer necessarily require direct transport between Switzerland and China. Furthermore, the conditions for electronic certificates of origin are being created and the exchange of data between customs authorities is explicitly enshrined.

The optimized agreement also includes new or expanded provisions on trade facilitation, services, investment, digital trade, competition, as well as environmental and labor standards. Clear rules for digital business models are intended to create legal certainty and facilitate the use of electronic documents and processes.

What Swiss companies should be aware of now

Negotiations are complete, but the agreement is not yet in force. The contract texts are currently being legally finalized. Signing is expected to take place in the course of 2026, followed by the domestic approval processes in Switzerland and China.

Swiss exporters should therefore follow the further implementation steps. Until the entry into force, the current provisions of the FHA Switzerland-China will continue to apply.

Sources:

EAER – Media release dated 20 August 2026

SECO Factsheet on optimizing the FHA Switzerland-China