China trade accord with Swiss bucks wider trend towards protectionism
SPY•China and Switzerland are due to sign an upgraded trade accord that will give 99.8% of Swiss exports duty-free access to China, up from just over half previously. The deal follows Switzerland’s agreement with the United States to cut tariffs from 39% to 15%.
1. Expanded market access
Chinese President Xi Jinping and Swiss President Guy Parmelin are due to sign the upgraded trade accord in Beijing on Friday. The agreement gives 99.8% of Swiss exports duty-free access to China, compared with just over half under the previous terms.
2. Trade and diplomacy
Three Western diplomats saw the deal as an effort by China to project a more internationalist image and burnish its free-trade credentials. US officials sought to discuss the accord with Swiss counterparts, two people familiar with the matter said; Switzerland’s government said no specific concerns had been raised.
3. Swiss industry response
Swiss industry representatives welcomed the agreement. Tecnopinz owner Nicola Tettamanti expects the company’s demand from China to rise, and said customers such as watchmakers and robotics firms could also benefit.
