Switzerland and China renew trade pact as Parmelin flags barriers

Switzerland and China have signed an updated free trade agreement, under which China will reduce tariffs on almost all Swiss goods, Swiss President Guy Parmelin told SRF.

Parmelin said the return of protectionism had helped move the negotiations forward. He said mutual trust between the two countries was key to reaching a result quickly.

In return, Switzerland made some concessions in agriculture, including quotas permitted under World Trade Organization rules. Parmelin said Switzerland had not granted any additional quotas and that the affected products, such as nuts, did not pose a problem for Swiss farmers.

Parmelin acknowledged that China still has trade barriers. He said he had raised concerns about controls that slow trade and disadvantage Swiss businesses with Chinese Trade Minister Wang Wentao. A large Swiss business delegation also identified specific problems, he said. The updated agreement gives the two sides better ways to address them, and is intended to make Swiss investment in China easier.

The agreement also commits both countries to respect international conventions on labour rights, including those of the International Labour Organization. Mixed committees can examine whether the pact is being applied properly. In a dispute, the parties can appoint an independent panel of experts to review the facts and make recommendations.

Parmelin called the agreement’s sustainability chapter the strongest Switzerland had negotiated with another country, and said it was the first time China had agreed to such a system.