Since the signing of the China - Switzerland Free Trade Agreement (FTA) ten years ago, this agreement has become the most frequently used free trade agreement by Swiss exporters outside Europe. According to the China - Switzerland Free Trade Agreement - 2023 Academic Evaluation Report (10th Anniversary Edition), since the agreement came into effect, trade and investment between Switzerland and China have witnessed significant growth and development, especially in the fields of pharmaceuticals, medical devices and information technology products.

The report was released at an expert seminar held at the Swiss Embassy in China. The report pointed out that since the initial stage of the agreements entry into force, some tariffs were immediately abolished, and most tariffs were gradually reduced in the following five to ten years, which has provided great convenience for trade between the two countries. Data shows that the overall utilization rate of the China - Switzerland FTA has increased from 58% to 71% in the past five years. In 2022, Swiss companies saved up to $220 million by using this agreement, a significant increase compared to $70 million in 2018.

The study found that although the total bilateral trade volume has continued to grow, the utilization rate of the China - Switzerland FTA by Chinese exporters has decreased, from 42.2% five years ago to 39.3% now. This decline is mainly because some key products, such as computers, smartphones and other IT products, already enjoy zero tariffs, reducing the necessity of using the FTA.

The report further breaks down the data of Swiss exports to China and finds that the total value of products enjoying zero tariffs reaches $4 billion, accounting for 25.1% of Switzerlands total exports to China. Among them, pharmaceuticals, medical devices and IT products are the main beneficiaries. In addition, the utilization rate of the FTA in other industries such as machinery and instruments has increased by more than 10%, and the utilization rate of Swiss watch exports to China is as high as 93%, showing a high level of market activity.

In the report, Professor Tu Xinquan, Dean of the China Institute for WTO Studies at the University of International Business and Economics, pointed out that as China and Switzerland announced the launch of formal FTA upgrade negotiations, new trade changes and the development of the digital economy will bring new cooperation opportunities to both sides. Professor Tu emphasized that these negotiations will still adhere to high standards to adapt to the new international trade environment and technological development.

In addition, China and Switzerland also plan to hold a new round of foreign ministers - level strategic dialogue, financial working group meetings, energy working group meetings and education policy dialogues this year, aiming to further strengthen people - to - people and economic cooperation through the FTA on the occasion of the 75th anniversary of the establishment of diplomatic relations between the two countries.

The successful application of the China - Switzerland FTA and the upcoming upgrade negotiations not only provide huge market opportunities for enterprises of the two countries, but also provide an effective cooperation model for the international trade system. Professor Tu Xinquan finally pointed out that the China - Switzerland FTA not only helps to promote bilateral trade, but also helps Chinese enterprises to improve their competitiveness and efficiency by participating in the international market, and at the same time promotes the process of domestic related reforms.