AFP, Basel :
Switzerland has one-upped its European Union neighbours with a free trade deal with China that its politicians and business sector say is crucial to boosting ties with the world’s second-largest economy.
The free trade agreement (FTA), in force since Tuesday, is China’s first with a mainland European country and was sealed in 2013 after two years of talks.
“We look to the huge Chinese market, but on the other side, China will find in Switzerland partners on a top technology level and a top innovation level,” said Economy Minister Johann Schneider-Ammann, as he marked the start of the FTA with Chinese officials in Basel.
The deal will cut red tape and tariffs on Swiss farm and industrial exports to China, giving them access to the country’s 1.4 billion increasingly wealthy consumers.
China already imports mainly Swiss machinery, pharmaceuticals, chemicals and watches, and experts expect the FTA to benefit the small- and medium-sized technology and engineering businesses that form the bedrock of Switzerland’s economy.
In turn, Chinese manufacturers will get duty-free access to Switzerland, where their primary products will be cheaper for factories to use.
“Customs duty savings can provide a decisive edge compared to competitors from countries who have no agreement with China,” said Swiss customs service chief Rudolf Dietrich.
Business experts say the deal could pave the way to making Switzerland a centre for Chinese companies in Europe as they increase their international investments.
The accord also bolsters intellectual property protection for Swiss goods-a persistent concern for Western firms in China.
“Experience has shown that FTAs give an extra push to trade growth,” Jan Atteslander, head of international affairs at Swiss business federation Economiesuisse, told AFP.
