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Corporate Update

Swiss-China FTA To Improve Market Access For Swiss Machinery Exports

• By  Textile Excellence
• October 31, 2026

Switzerland and China have signed a modernised free trade agreement (FTA) that will progressively remove tariff barriers on Swiss exports, with machinery and precision instruments among the key beneficiaries.

Swissmem, the Swiss technology industry association, has welcomed the agreement, saying it will improve access to the Chinese market and help Swiss manufacturers compete with suppliers from countries such as Singapore and South Korea.

When the agreement comes into force, 99.8% of Swiss exports will eventually enter China duty-free, compared with 53.6% under the existing agreement, which has been in force since 2014. The remaining 5% of tariff lines currently subject to duties account for 14% of the Swiss technology industry's exports to China.

The modernised FTA also updates rules of origin, simplifies trade procedures and improves investment conditions. Export-oriented small and medium-sized enterprises (SMEs) are expected to benefit.

Beyond tariff reductions, the agreement introduces stronger labour and environmental commitments. China has agreed to respect fundamental labour rights, including prohibitions on forced and child labour. Environmental provisions include commitments linked to the Paris Agreement, while responsible business conduct is addressed through references to the UN Guiding Principles on Business and Human Rights.

Swissmem Chairman Martin Hirzel said the agreement would strengthen market access, but cautioned that Swiss companies would still face intense competition in China. He stressed the need to combine quality and innovation with speed, customer proximity and service excellence.

The agreement must now be ratified by the Swiss Parliament. A public vote may ultimately follow.

Swissmem Chairman Martin Hirzel said the agreement would strengthen market access, but cautioned that Swiss companies would still face intense competition in China. He stressed the need to combine quality and innovation with speed, customer proximity and service excellence. The agreement must now be ratified by the Swiss Parliament. A public vote may ultimately follow.