On the 27th, the State Council Information Office held a press briefing on the results of the China-Switzerland Free Trade Agreement negotiations, publicly disclosing the content of the free trade agreement for the first time. Assistant Minister of Commerce Yu Jianhua said that China and Sweden are now exploring the possibility of formally signing a free trade agreement around July this year. After the completion of the free trade zone, Switzerland will implement zero tariffs on 99.7% of my country’s export products without any transition period. In addition, the tax on Swiss watches, which has attracted much attention, will be reduced by 60% within ten years.
On the 24th local time, under the witness of Premier Li Keqiang of the State Council and President of the Swiss Confederation Julius Maurer, Chinese Minister of Commerce Gao Hucheng and Swiss Federal Councilor and Economic Minister Schneider-Ammann signed the “On Ending China-Switzerland Free Trade” in Bern, Switzerland. Memorandum of Understanding for the Negotiation of the Agreement. This marks that the China-Switzerland Free Trade Agreement, which was officially launched in January 2011, has ended a “long-distance race” of nine rounds of negotiations in two and a half years and reached agreement on substantive issues.
“The China-Switzerland free trade area negotiations are the first free trade area that China has negotiated on the European continent. Previously, we concluded the free trade area negotiations with Iceland. The free trade area negotiations in Switzerland were the first in the European continent. The first one is of great significance.” Yu Jianhua pointed out.
According to reports, the China-Switzerland Free Trade Agreement is one of the highest-level and most comprehensive free trade agreements China has reached with foreign countries in recent years. First of all, it is reflected in the high proportion of zero tariffs agreed between the two parties. Secondly, the agreement involves many new rules, such as environment, labor and employment cooperation, intellectual property rights, government procurement information exchange, competition, etc.
Yu Jianhua said that Switzerland will immediately implement zero tariffs on 99.7% of China’s exports, and China will eventually implement zero tariffs on 84.2% of Switzerland’s exports. If some tax reduction products are included, the proportion of Swiss products participating in tax reductions is 99.99%, China is 96.5%.
Specifically, in terms of industrial products, Switzerland has committed to implement zero tariffs on all industrial products exported by China to Switzerland from the date of the agreement’s entry into force, including textiles for which China has greater export interests and a higher share of exports. , clothing, shoes and hats, auto parts, metal products, etc.
In terms of relatively sensitive agriculture, Switzerland has implemented zero tariffs on more than 960 types of agricultural products from China, covering more than 76% of my country’s agricultural exports to Switzerland. There are also 403 types of agricultural products that have undergone partial tax reductions.
In terms of service trade, Switzerland agreed for the first time to set time limits for the acceptance and issuance of visas, work permits, and residence permits, agreed to engage in dialogue with my country on traditional Chinese medicine cooperation, and made further decisions in the fields of tourism, translation, etc. promise.
“According to the content of the agreement, China’s benefits are quite obvious. 99.7% of Switzerland’s exports to China have agreed to implement zero tariffs, and there will be no transition period. They have agreed to implement them from the date the agreement takes effect. In addition, the rest Of the 0.3%, 0.29% is a partial tax reduction, and 0.01% is an exception.” Yu Jianhua pointed out.
At the same time, the China-Switzerland Free Trade Agreement is a mutually beneficial and win-win agreement. Our country has also made some opening-up commitments based on Switzerland’s level of competition, my country’s market conditions, and the industry’s affordability. Including: 84% of product imports to Switzerland are subject to zero tariffs, of which 67% agree to implement zero tariffs from the date of the agreement’s entry into force.
At the same time, my country has made exceptional arrangements for transitional periods in sensitive fields including machine tools, textile machinery, chemicals, and automobiles.
Regarding Swiss watches, which consumers are more concerned about, Yu Jianhua said that tariffs will be reduced by 60% within 10 years, with an initial reduction of 18% in the first year. However, he also said that tariffs are only one factor affecting watch prices, and the key is determined by market supply and demand. “In addition to tariffs, we also have import taxes, value-added taxes, and consumption taxes. These are not covered by the free trade zone. The general trend is that prices should be lowered. How much is still uncertain.”
