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Joint Feasibility Study on a China-Switzerland Free Trade Agreement

Beijing, 9th August 2010

Executive Summary

The Premier of the People's Republic of China WEN Jiabao and the Swiss President HansRudolf MERZ decided in January 2009 in Bern to conduct a Joint Swiss-Chinese Study on the feasibility of a bilateral free trade agreement. Following two successful bilateral preparatory workshops, held in April and October 2009 in Beijing and Bern respectively, the Chinese Minister of Commerce CHEN Deming and the Swiss Federal Councillor Doris Leuthard, head of the Federal Department of the Economy, instructed the Swiss-Chinese Joint Study Group to conduct the Joint Feasibility Study when they met in Geneva on 30 November 2009. This report presents the findings and conclusions of the Swiss Chinese Joint Study Group. The Group analysed the economies of China and Switzerland, relevant economic policies and bilateral trade and investment relations, including broader aspects of the economic relations between the two countries, as well as the related existing framework of bilateral institutional arrangements and legal instruments. Trade in goods and services was analysed for the economies of China and Switzerland as a whole as well as for specific sectors. Other areas related to Chinese Swiss trade and economic relations were also analysed, including intellectual property, investment, e-commerce, small and medium sized enterprises, competition, environmental policies and other fields of existing and possible future cooperation. The report addresses additional issues related to a free trade agreement, such as general and institutional provisions including dispute settlement mechanisms. The report finds that both countries' economies are complementary and competitive. Potentials for the bilateral relations between China and Switzerland and for economic growth and welfare on both sides are identified. As the world's largest developing economy, China has a strong production...