Switzerland and China conclude talks to eliminate tariffs on 99.8% of Swiss exports

Agreement reached in Bern

Switzerland and China concluded negotiations on Thursday, 20 August 2026, to modernize and expand their bilateral free trade agreement. Swiss Federal President and Minister for Economic Affairs Guy Parmelin met Chinese Commerce Minister Wang Wentao in Bern to sign a memorandum of understanding marking the conclusion of the talks. The negotiations officially began in September 2024 and concluded after five rounds of discussions. The updated pact builds upon the original 2014 agreement, which stood as Beijing's first free trade agreement with an economy in continental Europe.

Tariff relief and sector coverage

The revised agreement will eliminate customs duties on 99.8% of Swiss exports to China over multi-year transitional phase-out periods, expanding the current duty-free share from roughly half of all shipments. Chinese imports into Switzerland are already almost entirely exempt from tariffs under the 2014 agreement. According to the Federal Department of Economic Affairs, Education and Research, the elimination of remaining duties will generate potential savings of approximately 244 million Swiss francs annually for Swiss exporters. The Swiss government detailed the timeline in an official statement.

99.8% of Swiss exports to China will be completely exempt from customs duties in the medium term.

Industrial sectors benefiting from the duty-free terms include watchmaking, pharmaceuticals, chemicals, and machinery manufacturing, most of which currently receive only partial customs concessions. In agriculture, tariffs on Swiss cheese and roasted coffee will be dismantled following a 10-year transition period. Products such as chocolate, infant nutrition formulas, wine, and dried meat are already sold in China without customs duties. Sensitive Swiss agricultural items, including fresh fruits, vegetables, and juices, will see tariff reductions applied within existing World Trade Organization quota frameworks and seasonal constraints, while Chinese export interests including pet food and sunflower seeds were also accommodated.

Bilateral trade and global context

China represents Switzerland's third-largest trading partner globally, accounting for 9% of Swiss exports and ranking behind only the European Union and the United States. Trade between the two nations has expanded over the past decade, rising from 31.7 billion Swiss francs in 2015 to 51.2 billion francs in 2025. Bilateral volume reached 46 billion francs (equivalent to 57.6 billion dollars) through August 2026. The Swiss government sought upgraded market access to diversify export destinations after tariff disputes involving the United States increased the importance of secondary markets. Broader Swiss trade policy has also advanced through the European Free Trade Association, which concluded pacts with India in 2024 and Mercosur member states last year.

Scope and domestic approval roadmap

Beyond tariff reductions on physical goods, the modernized text incorporates expanded chapters on trade in services, digital commerce, competition policy, investment access, rules of origin, and economic and technical cooperation. The updated provisions also establish binding commitments regarding environmental protection and labor rights. Following completion of the formal legal review in both capitals, the pact is scheduled for signature later in 2026. The agreement will subsequently undergo domestic ratification procedures, which in Switzerland requires final approval by the Federal Parliament.