INTERVIEW - Economiesuisse's chief economist on the trade agreement with China: "The NGOs need to ask themselves if they want to make illusory demands"

In an interview, Rudolf Minsch, the Chief Economist of Economiesuisse, discussed the recently modernized free trade agreement between Switzerland and China. Minsch defended the deal despite concerns over China's human rights record.

He explained that the previous agreement, which had been in place since 2014, was outdated and needed updating, particularly in two key areas. Firstly, not all tariffs were at zero, leading to disputes and uneven treatment of certain goods. Secondly, modern free trade agreements now cover areas like digitalization and the protection of geographical indications, which have been improved in the new deal.

Minsch noted that the negotiations with China proceeded quickly due to the existing 2014 agreement and the existing mixed committees that address issues. The Chinese side is familiar with the concerns raised by the Swiss side, making the adaptation process smoother.

Regarding the potential backlash from the US, Minsch believed that Switzerland had communicated transparently about the modernization process and had already granted access to Chinese imports since 2024. The US is unlikely to be significantly affected, as the agreement does not favor China over the US.

The agreement aims to allow over 99% of Swiss exports to enter China duty-free, which would improve competitiveness compared to European competitors with lower production costs. However, China's non-tariff barriers, such as product safety regulations and subsidy practices, remained largely unchanged. The deal includes a revision of the product safety law to address potential issues with Chinese imports.

Minsch expressed optimism that the Swiss Parliament would support the agreement, as Switzerland has been transparent about its modernization efforts and had already permitted Chinese imports since 2024.