Swiss Chinese Free Trade Agreement

The EU is now China`s largest trading partner and would certainly be more ambitious than Switzerland in its relations with China. However, one of the decisive lessons of the US-China trade war and the ceasefire reached under the recent Phase 1 agreement is that China has sufficient capacity to withstand external pressures if the other side`s demands do not match the steps it wants to take in both directions. The agreement between China and Switzerland is much broader than the Phase 1 agreement, and it is reciprocal, but it confirms this pattern. However, it goes without saying that the EU will have its own defensive concerns and red lines in all negotiations with China, in sectors ranging from agriculture to steel to many types of labour-intensive products (such as clothing). Based on this review of the CSFTA, we conclude that negotiations for a free trade agreement between China and the EU would be laborious to say the least. While the potential welfare gains from developing trade relations between these two giant economies are far greater than those of an existing EU trade deal, much more will need to change before the terms of a China-EU deal become truly favorable. China`s concessions under the CSFTFT were even more limited than for trade in goods. The service plan of the Sino-Swiss agreement largely reflects the service plan of China`s protocol of accession to the WTO (where China has made significant commitments to the well-established WTO members). The CSFTA makes only slight additional concessions. Given that the Swiss have major offensives on services, especially financial services, their inability to make more concessions to China is an indication of China`s reluctance to further open up its services sector. Services are also an important offensive interest of the EU. While the EU faces a large trade deficit with China, it has a surplus in services. Update: Swiss-China Free Trade Agreement: Direct transport Chinese President Xi Jinping is currently in Europe to promote his distinctive Belt and Road business project.

No stopovers are planned in Switzerland. This is useless, as the two countries have had close economic relations for some time. But exactly 20 years ago, the friendship became furious. China`s concessions under the CSFTFT on financial and insurance services – another important interest of Switzerland and the EU – are weak. In the insurance sector, there is no additional concession to China`s accession protocol, although the provision of activities authorized by Chinese subsidiaries by Swiss companies is more concrete. . . .