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You are here » Home Page
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» Switzerland announces Free Trade Deal with China
Switzerland announces Free Trade Deal with China
2013-05-30
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Switzerland and China have announced a free trade agreement between the two countries. This is the first such free trade partner deal between China and a European country. The general terms of the deal will mean 84% of Swiss exports to China will be exempt from custom duty and many exports to Switzerland of China made industrial goods such as textiles, auto parts and metal goods will be exempt from duty.
Switzerland world famous for manufacturing high quality watches will see the customs duty on this export reduced by 60% over the next 10 years. The exact terms of custom duty of Swiss watches imported into China is an 18% reduction in the first year and then a subsequent reduction of 5% each year after that. China is the third largest market for Swiss watches, with this free trade partner deal then it's sure to be a shot in the arm for watch sales over the coming years.
China combined with Hong Kong is Switzerland's number 1 trade partner in Asia and its third largest trade partner overall in the world behind the EU and the US. In 2012 bilateral trade between Switzerland and China stood at $ 26.4 Billion USD which was an overall increase of 12% from 2010 to $22.8 in Switzerland's favor which makes Switzerland one of the rare western country's with a positive trade balance with China.
Switzerland's top exports to China are watches, machinery and pharmaceuticals and chemicals, while textiles and machinery are the leading imports into Switzerland from China.
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