China and Switzerland completed negotiations on an upgrade to their free-trade agreement in Bern on Aug. 20, with 99.8% of Swiss goods currently exported to China set to receive zero-tariff treatment. Watches, pharmaceuticals and precision instruments are among the Swiss products covered, while Swiss investors would gain more convenient access to the Chinese market. Chinese Commerce Minister Wang Wentao and Swiss President and Federal Councillor for Economic Affairs, Education and Research Guy Parmelin announced the conclusion and signed a memorandum of understanding. The upgrade negotiations began in September 2024 and ended after five rounds. The agreement expands on the FTA that took effect in 2014, under which nearly all Chinese exports to Switzerland were duty-free but only about half of Swiss exports to China received equivalent treatment. It also covers rules of origin, trade facilitation, services trade, digital trade, competition, and economic and technical cooperation. The parties plan to complete legal review, formally sign the upgraded agreement later this year and then begin domestic ratification procedures. The deal offers greater predictability to Switzerland's export-oriented economy amid global trade uncertainty and U.S. tariff pressure, while strengthening China's economic ties with Europe and its support for open trade.