Swiss exports to China set for near-total tariff removal under new deal

As many as 99.8% of current Swiss exports could eventually enter China without customs duties. Switzerland and China concluded negotiations on Thursday, August 20, 2026, to expand their existing free trade agreement, opening a new phase in one of Switzerland’s most important commercial relationships.

Federal President and Economics Minister Guy Parmelin and China’s Minister of Commerce Wang Wentao completed the talks in Bern, according to the Federal Department of Economic Affairs, Education and Research, known by its German abbreviation EAER. The agreement still requires formal signing, which the two sides expect to complete before the end of 2026.

The tariff change will take effect through phase out periods rather than immediately. Even so, it represents a substantial shift for Swiss companies. Under the agreement currently in force, only slightly more than half of Swiss exports to China qualify for duty free entry. The revised text would extend that treatment to virtually the entire current export flow.

China ranks as Switzerland’s third most important trading partner, behind the European Union and the United States. For manufacturers and exporters across the Swiss economy, the deal could reduce border costs and make pricing more predictable in the Chinese market.

The agreement would move Switzerland from partial tariff relief to almost complete coverage. The 2014 free trade agreement already gave Swiss companies preferential access to China, but its tariff concessions left a significant share of exports subject to customs duties.

The updated arrangement targets that gap. Once the agreed phase out periods expire, 99.8% of current Swiss exports should enter China duty free. The EAER described the result as meeting Switzerland’s objectives in the negotiations. The source does not specify the length of each phase out period or identify the product categories that will remain outside the 99.8% figure.

That distinction matters for businesses planning investment, contracts and supply chains. A tariff reduction can improve the final price of a Swiss product, but the commercial effect depends on the schedule, rules of origin and the costs of complying with customs procedures. The negotiated text also covers rules of origin and trade facilitation, areas that can determine whether companies actually capture the benefit of lower duties.

Chinese imports into Switzerland are already almost entirely duty free. The revised agreement therefore primarily expands concessions for Swiss goods entering China, creating a more balanced framework for market access between the two countries.

Swiss investors are set to gain improved access to the Chinese market alongside exporters. The negotiated package goes beyond customs duties and includes provisions intended to secure market access for Swiss investors operating in China.

The EAER also listed trade in services, digital trade, competition, and economic and technical cooperation among the areas covered by the optimisation. These provisions reflect the changing shape of Swiss business ties with China. Goods remain central to the relationship, but companies increasingly depend on services, data, digital transactions and local commercial partnerships.

The agreement could matter particularly to firms that combine Swiss research, engineering or finance with production and sales in China. Its practical value will depend on the final legal text, implementation rules and the experience of companies using the new provisions. The announcement does not provide sector specific commitments or quantify the expected increase in investment.

Negotiations began in 2024 and concluded after five rounds. The process updated a pact that has governed bilateral trade since 2014, giving the two governments a framework to address newer areas of commerce while widening tariff preferences for Swiss exports.

Labour rights and environmental provisions will receive stronger treatment in the expanded agreement. The EAER said the text strengthens both areas, adding social and environmental obligations to a deal primarily discussed in terms of tariffs and market access.

The announcement does not set out the precise wording, enforcement mechanisms or reporting requirements. Those details will become important when the agreement is signed and submitted to the relevant Swiss procedures. They will also shape how companies interpret their responsibilities across supply chains linking Switzerland and China.

The inclusion of labour and environmental provisions places the agreement within a wider debate over the conditions attached to international trade. Swiss exporters will want clear rules that can be applied in practice. Policymakers and civil society groups will examine whether the commitments create effective oversight and meaningful avenues for addressing concerns.

The same text also covers competition, rules of origin and economic cooperation. Together, these chapters will determine how the tariff gains work on the ground. Lower duties can remove a direct cost, while transparent origin rules and workable standards can affect whether smaller Swiss companies have the capacity to use the agreement.

The next milestone is the agreement’s signature before the end of 2026. The conclusion of negotiations gives Swiss exporters a clear direction, but it does not yet put the new tariff schedules into force. The final text, signing process and phase out timetable will determine when companies can claim the promised benefits.

For Switzerland, the agreement reinforces a commercial relationship with its third largest trading partner while preserving a bilateral route outside the European Union’s trade policy. Swiss companies will still need to meet Chinese import requirements, document product origin and assess demand, currency exposure and regulatory conditions.

The agreement’s impact will also vary by business. Firms already selling into China may gain from lower duties and improved procedures. Companies in services, digital commerce or investment may look to the new market access provisions. Smaller exporters could benefit from simpler trade facilitation, although they may need support to navigate the detailed rules.

Switzerland and China launched the negotiations in 2024, following the free trade agreement that has been in place since 2014. With the talks now concluded in Bern, attention shifts from diplomatic agreement to legal implementation and commercial uptake.