China-Switzerland Free Trade Agreement

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Background

Swiss Federal Councillor Johann Schneider-Ammann and Chinese Minister of Commerce Gao Hucheng, July 6th 2013 © Embassy of Switzerland in China

A comprehensive bilateral Free Trade Agreement (FTA) between Switzerland and the People’s Republic of China was signed by Federal Councillor Johann N. Schneider-Ammann and the Chinese Minister of Commerce Gao Hucheng on July 6^th 2013. A bilateral Agreement on Labour and Employment was signed simultaneously by Federal Councillor Johann N. Schneider-Ammann and the Chinese Minister of Human Resources and Social Security Yin Weimin.

Following initial preparatory talks in November 2007, joint workshops in collaboration with the private sector in 2009 and a Joint Feasibility Study in 2010, the negotiations were officially launched in 2011. The Agreement was then negotiated in nine rounds and various intersessional meetings from April 2011 to May 2013. After the signature of a Memorandum of Understanding on Concluding the Negotiations during the official visit of Premier Li Keqiang to Switzerland in May 2013 and the notification of the completion of the internal ratification procedures on April 29^th 2014, the FTA entered into force on July 1^st 2014 and the Agreement on Labour and Employment on June 9^th 2014.

Benefits

The FTA improves mutual market access for goods and services, enhances legal security for the protection of intellectual property rights and bilateral economic relations in general. For the vast majority of bilateral trade, the FTA dismantles tariffs fully or partially, immediately or depending on transition periods, after 5, 10, 12 or in specific cases 15 years. In the area of technical barriers, sanitary and phytosanitary measures, sector-specific cooperation agreements aim at reducing non-tariff barriers to trade. For trade in services, more precisely defined rules compared to the GATS of the WTO apply, e.g. for approval processes, as well as improved market access commitments for various services. Regarding intellectual property, the level of protection in selected areas was improved compared to the multilateral standards of the WTO, including in the area of enforcement. The Agreement also establishes an institutional framework under a Joint Committee for cooperation between the relevant authorities for monitoring the implementation of the Agreement, further develop the Agreement and for resolving specific issues (consultation process, dispute settlement). Furthermore, the FTA covers rules of origin, customs procedures and trade facilitation, trade remedies, investment protection, transparency in government procurement, trade-related environmental and labour issues, economic and technical cooperation.