Highly visible FTA leads to wave of 2-way trade

Sonja Wollkopf Walt, CEO of Greater Zurich Area AG, said the free trade agreement also goes far beyond dismantling tariffs by fostering collaboration in fields including science, technology, research, education and culture.

Indicators from last year show the first positive effects, Walt said. The value of Swiss machinery exported to China rose 9.1 percent in the first 10 months, to 2.3 billion Swiss francs ($2.6 billion) - strong growth compared with other sectors.

Overall exports from Swiss companies to China rose 11.2 percent to 7.5 billion Swiss francs in the same period, and imports from China to Switzerland rose 7.7 percent to 10 billion Swiss francs, official figures show.

Despite the great opportunities the free trade agreement presents for both countries, challenges still exist. Walt said one possible problem is that Switzerland's increased exports of professional mechanicals, watches, medicines and chemical products to China will put pressure on those industries in China - and vice versa for labor-intensive products from China.

"However, the transitional agreements of the China-Switzerland free trade agreement on sensitive areas will provide space for Chinese and Swiss companies to adapt to market competition," she said.

Xu Jinghu, China's ambassador to Switzerland, said earlier that the agreement started to have an impact on bilateral trade relations even before it came into effect.

The agreement will not only help improve China-Switzerland relations but will establish a model of collaboration that could encourage better relations with other European countries, Xu said.

Ties between China and Switzerland - political, economic and cultural - are now better than ever, and both sides are searching for new areas of cooperation, particularly in science and finance, she said.

More than 30 Swiss secondary schools have started teaching Chinese. Last year, more than 800,000 Chinese tourists visited Switzerland, while about 80,000 Swiss visited China, Xu said.

Walt, the CEO in Zurich, said the China-Switzerland free trade agreement is highly significant for her country because of the complementary nature of their economies. The agreement offers many advantages for Swiss and Chinese multinationals, as well as small and medium-sized enterprises, she said.

cecily.liu@chinadaily.com.cn