Parmelin and Xi sign modernised Swiss-China free trade agreement in Beijing

Signing in Beijing

Swiss Federal President Guy Parmelin and Chinese President Xi Jinping signed the modernised free trade agreement in Beijing on Friday, 30 October 2026. The text upgrades the accord that has applied between the two countries since 2014, and according to the Federal Department of Economic Affairs it is meant to improve access to the Chinese market for Swiss goods and investment. Two accompanying agreements were signed the same day, one on labour and employment cooperation and one on research and development. Parmelin is travelling with a high-level delegation from business and academia that includes two leading SVP members, Thomas Aeschi and Magdalena Martullo-Blocher, along with executives from companies such as ABB, Nestlé, Novartis and UBS. Parmelin said the two countries had responded to the expectations of their companies and other stakeholders, and he added:

“We can be proud of the negotiation result.”

The Federal Department of Economic Affairs, Education and Research said the revised agreement now offers both sides a modern framework for trade and investment. It also argued that the speed of the talks strengthens the rules-based multilateral trading system centred on the World Trade Organization.

Tariff relief and remaining exceptions

The government had said in August, when the negotiations ended, that 99.8% of current Swiss exports to China could be exempt from customs duties. Under the 2014 agreement about half of Swiss exports were still taxed, while nearly all Chinese products imported into Switzerland were exempt. Switzerland should save about 244 million francs as a result. Three quarters of the exemptions are to apply as soon as the modernised agreement enters into force, but the text must first pass through Parliament. Swiss watches will still face China's luxury goods tax, which applies to 95.5% of the value of Swiss watch exports to China.

Current Swiss exports exempt under modernised deal99.8%

Swiss watch exports subject to Chinese luxury tax95.5%

Current Swiss exports exempt under modernised deal

99.8 %

Swiss watch exports subject to Chinese luxury tax

95.5 %

Data from the article text

Swissmem, the umbrella body of the Swiss machinery industry, welcomed the signature and urged the Federal Chambers to ratify the agreement quickly. The association said it removes important customs barriers for the Swiss tech industry, particularly for machinery and precision products.

Sustainability chapter and investment rules

The revised agreement adds a legally binding chapter on trade and sustainable development, which strengthens rules on environmental protection and workers' rights. The Confederation describes this as a first in a free trade agreement concluded by China. On the investment side, the text aims to give Swiss companies operating in China national treatment. Raphael Zumsteg-Yuan, president of the Swiss Chamber of Commerce in China, explained the principle in an interview with La Matinale:

“The keyword is national treatment, so no discrimination against Swiss companies.”

The agreement still needs parliamentary approval in Switzerland before these provisions take effect.

Milestones and the rest of the visit

Diplomatic relations between the two countries began in 1950, when Switzerland was among the first Western countries to establish them with communist China. The 2014 free trade agreement made Switzerland the first European country to conclude one with China, and in 2016 both sides agreed an innovative strategic partnership.

Parmelin's visit continues until Saturday, 31 October. He is scheduled to meet Commerce Minister Wang Wentao, Labour and Social Affairs Minister Wang Xiaoping, Education Minister Huai Jinpeng and Science Minister Yin Hejun. A 9th Swiss-Chinese Economic Forum is also planned. Parmelin raised the international security situation during the visit and stressed the link between security and stability in Europe and East Asia. The most recent round of human rights talks was held in Bern on 19 and 20 October. Parmelin is set to leave the Federal Council at the end of this year.