China and Switzerland have a new tariff-scrapping trade deal. How will the EU react?
The move, seen by analysts as a signal to the EU, will eventually double duty-free coverage included in 12-year-old free-trade agreement
China and Switzerland have concluded negotiations on the scrapping of tariffs on 99.8 per cent of Swiss exports, with analysts saying the deal carries more symbolic than economic weight amid growing trade tensions between China and the European Union.
Wang said in a statement that the new FTA would create new opportunities for bilateral economic cooperation.
“In the current international environment filled with uncertainty, this also demonstrates the clear stance of both sides in choosing certainty and supporting free trade,” Wang said.
For Beijing, the upgrade was a way to show that “close economic integration with China remains possible and attractive” for European countries, said Simona Grano, senior lecturer in Chinese Studies at the University of Zurich.
The timing was also “convenient from Beijing’s perspective”, said Noah Barkin, senior adviser at Rhodium Group. “It sends a signal to the EU at a time of heightened trade tensions that reduced barriers are possible.”