On July 6, 2013, China and Switzerland signed a bilateral Free Trade Agreement aimed to reduce and ultimately cancel Customs duties on goods traded among them, starting from mid-2014. According to Swissinfo.ch in 2012 Switzerland exported goods to China valued at CHF 7.8 billion ($8.1 billion), while imports from China were valued at CHF 10.3 billion. Xinhua (i.e. the Chinese news agency), as reported by Reuters, said that bilateral trade volume between China and Switzerland reached $26.31 billion in 2012 and surged to $22.89 billions during the first five months of this year. In consideration to the above, such Agreement may represent a good opportunity for traders of both Countries, and, for this reason, we would like to summarize its main provisions as follows:

Export from Switzerland to China

For all goods currently subject to duties equal or lower than 5%, a complete cancellation will be likely effected within mid 2014. For all goods currently subject to duties above the threshold of 5%, a gradual reduction will be implemented, and the total cancellation will be achieved in a time spam ranging between 5 and 15 years.

Export from China to Switzerland

Practically all duties on industrial products (with exception of some type of albumins) will be lifted within mid-2014. For agricultural products, some types will not enjoy any reduction whatsoever, while other type will enjoy a more gradual reduction.

Currently China has signed Free Trade Agreements with 11 Countries/Regions (such as Iceland, Taiwan, Macau, and Hong Kong), while negotiations with additional 18 Countries are currently in progress.

Leave a reply