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China's Minister of Commerce Wang Wentao talks with Swiss Federal Councilor Guy Parmelin, also head of the Federal Department of Economic Affairs, Education and Research via videoconference on Monday. Photo: China's Ministry of Commerce

China and Switzerland jointly announced on Monday to officially launch negotiations to upgrade their free trade agreement (FTA), according to China's Ministry of Commerce (MOFCOM) on Monday.

The remarks were made during a videoconference between China's Minister of Commerce Wang Wentao and Swiss Federal Councilor Guy Parmelin, also head of the Federal Department of Economic Affairs, Education and Research on Monday. During the talks, both sides agreed to work together to expedite discussions and reach a high-level upgraded agreement as soon as possible on the basis of mutual benefit and win-win outcomes, according to the MOFCOM on Monday.

While speaking with Parmelin, Wang noted that the China-Switzerland FTA, in effect for a decade, has positively contributed to bilateral trade growth, bringing tangible benefits to both nations' enterprises.

Upgrading the agreement will further expand bilateral trade and promote two-way investment, and also enhance economic cooperation, especially amid the current global backlash against economic globalization, Wang said. The FTA upgrade also signals both countries' joint efforts on supporting free trade and open cooperation, the minister said.

China and Switzerland signed the FTA in July 2013, making Switzerland the first country in the European continent to sign a comprehensive FTA with China. Under the FTA, which took effect in 2014, 99.7 percent of Chinese exports to Switzerland and 84.2 percent of Swiss exports to China enjoy zero tariffs, significantly boosting bilateral trade.

In January 2017, during a meeting between leaders of the two countries in Switzerland, both sides announced the launch of a joint feasibility study for the upgrade. In January this year, both sides announced the completion of the joint feasibility study and agreed to formally initiate upgrade negotiations promptly.

In 2023, trade between China and Switzerland amounted to 416.93 billion yuan ($57.34 billion), a 9 percent increase year-on-year, according to data released by China's General Administration of Customs. Major Chinese exports to Switzerland include mechanical and electrical products, and Switzerland's leading exports to China are jewelry, precious metals and related items.

Speaking at the videoconference on Monday, Parmelin said that China and Switzerland efficiently signed the win-win FTA in 2013, providing rich benefits for both sides. With rising global trade protectionism, the launch of the upgrade negotiations is significant, demonstrating both nations' commitment to building an open and regulated international economic and trade cooperation environment and sending a positive signal about deepening collaboration, the Swiss official noted. 

Parmelin said that he believed that, through joint efforts, the upgrade negotiations will succeed.