class=”sc-29f61514-0 icZBHN”>
It was never a love story. The free trade agreement with China was also strongly opposed in Switzerland. But the concerns had no chance, and the referendum was not even held: Parliament openly spoke in favor of free trade with Beijing. The agreement was signed on June 6, 2013 and came into force a little more than a year later. This was the first free trade agreement between a continental European country and China without restrictions that took into account the protection of human rights.
Switzerland benefited from this decision. And apparently even more than China. This is St. Petersburg in Beijing. This is revealed in a new study to be published on Friday by researchers from the University of St. Gallen and the University of International Business and Economics (UIBE).
The report shows that Swiss exporters are successfully using the free trade agreement, with a usage rate increasing by 13 to 71 percent over the past five years. Swiss companies achieved effective savings of $220 million in 2022, compared to $70 million in 2018. However, on the Chinese side, the usage rate dropped from an initially stable 42.2% to 39.3% during the same period. As a result, Chinese exporters and Swiss importers of Chinese goods continue to pay more than $400 million in tariffs annually.
Win watches, MEMs and chocolate
Many Swiss products, such as wristwatches, coffee and coffee machines, pastries, desserts and cheese, now reach China completely duty-free. The watch industry benefited the most, with annual savings of more than $130 million, followed by the mechanical, electrical and metal industries (MEM) with savings of more than $60 million. The agreement also benefits the chemical, textile and food sectors.
This article was first published on the paid service of handelszeitung.ch. Blick+ users have exclusive access as part of their subscription. You can find more exciting articles at www.handelszeitung.ch.
This article was first published on the paid service of handelszeitung.ch. Blick+ users have exclusive access as part of their subscription. You can find more exciting articles at www.handelszeitung.ch.
The growth winner: the Swiss chocolate industry. Swiss chocolate exports to China have increased significantly over the past decade, more than tripling annually to over 3,000 tonnes worth over 30 million francs. Thanks to the free trade agreement, two-thirds of these exports are duty-free. Swiss producers also save around $1 million a year by exporting pigs’ feet and ears to China.
Despite the already good effects, there is still potential for improvement, according to researchers. Due to shipping regulations, complex forms, limited knowledge and experience, and time delays, the estimated annual tax still due on Swiss products is approximately $200 million.
Switzerland wants to modernize agreements
Switzerland and China have been planning to further develop the agreement for some time. It appears that negotiations, which have been suspended for a long time, have now restarted. “I have the duty to conduct new negotiations. I was able to arrange an appointment with Chinese Deputy Minister of Commerce Wang Shouwen on the occasion of the G20 meeting,” said Seco State Secretary Helene Budliger-Artieda in her speech at “Handelszeitung” in September. He hopes to be able to travel to Beijing this year.
While the economy seeks to modernize, criticism of the agreement has not diminished in recent years. In addition to human rights concerns, geopolitical tensions also play a role. There is a threat of Western sanctions over its support for Russia and the Taiwan conflict. Therefore, it would not be risky for Switzerland to tie itself more closely to China economically.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
