News on trade relationship between Switzerland and China

News on trade relationship between Switzerland and China

While on the European front China threats closures and tightening of import duties on EU products, in Switzerland it is been announced the signature of bilateral negotiations on of free trade, began in 2011, on 7 July is been conclused with the sign of a formal agreement that will allow a mixed regime with specific reference to the customs duties on the import – export between the two countries.

This scheme provides a total exemption from all customs duty for certain categories of goods, a reduction of the same duties for other categories, and mainteinance of duties for some types of products. This impact on customs duties will see a gradual entry into force modulated differently according to different categories, with immediate effect for several kind of goods.

Custom duties

Duties applied to the Swiss Chinese industrial products will be eliminated, while the majority of Swiss industrial products will be fully or partially exempt from Chinese taxes. As an indication, the majority of exports (about 95%) will benefit from a reduction in customs duties.

Trade defense

For the anti-dumping, subsidies and related measures are planned prior bilateral consultations. In addition, under certain conditions, the agreement allows to apply some protective measures, such a temporary suspension of certain tariff concessions. The parties must also avoid any anticompetitive behavior of the companies in their country.

Improving of intellectul property protection

On some items, Switzerland and China go beyond the agreement on Trade-Related Intellectual Property Rights WTO, increasing the duration of protection and tightening sanctions for any violations.

Facilitation of trade

For example, simplification of the procedure for the provision of certificates of origin.

Reviewclause

Durable guarantee of fair treatment in respec of its main competitors from third countries.

Switzerland is the first country in continental Europe to open up to free trade with China. The conclusion of this agreement certainly brings new scenarios extremely important when you considering the competitive advantage that Swiss companies will have on European exporters. This attenuation / exemption of customs charges, in addition to being a springboard for exports of Swiss companies, lays the foundation also for privileged economic and financial cooperation. The privileged relationship with China will allow Switzerland to play a leading role in financial activities, as well as a function of intermediation for future Chinese investment in Europe and Swiss one in China, considering the process of internationalization of the Chinese currency that seems to be now undertaken by the China.