As part of its activities, the EFTA/EU Delegation is responsible for maintaining relations with states with which Switzerland, as part of its EFTA membership, is negotiating a free trade agreement or seeking to modernise an existing agreement. These are mainly countries Switzerland engages with in processes of this kind as a member of the European Free Trade Association (EFTA). Given its mandate to promote Switzerland’s foreign economic policy, the Delegation also visit countries with which Switzerland has an agreement containing a bilateral dimension.
As part of this working visit, the EFTA/EU Delegation plans to look more closely at the planned development of the free trade agreement with China, which has been in force since 1 July 2014. It particularly wishes to look at trade in goods, including an extension of tariff concessions for Swiss products. During talks with its Chinese counterparts, the Delegation also plans to explore the possibility of strengthening provisions on workers’ rights and environmental protection. The visit is an important opportunity to present Switzerland’s political sensitivities and the democratic processes relating to any ratification of a free trade agreement. At the same time, the Delegation wishes to gain a better understanding of the situation for Swiss companies operating in China and to examine the geopolitical issues linked to China’s economic policy.
In Beijing, the Delegation will therefore pay a courtesy visit to Vice President Xiao Jie and hold an official meeting with the Financial and Economic Affairs Committee of the National People’s Congress. While in Beijing, the Delegation will also meet the Vice Minister of Commerce, Wang Shouwen, who is leading the negotiations on the free trade agreement.
The other stages of the trip to Shanghai, Guangzhou and their surroundings will include visits to Swiss companies in a range of sectors, from pharmaceuticals to medium-sized industry, as well as a visit linked to the European automotive sector, which is known to be facing particular challenges in relation to China. Extensive meetings with representatives of Swiss chambers of commerce and business leaders will offer an in-depth look at the economic situation in China and its impact on Switzerland.
China is Switzerland’s third-largest trading partner, with bilateral trade worth CHF 33 billion. Switzerland was the first country in continental Europe to sign a bilateral free trade agreement with China. Since this entered into force in 2014, Swiss exports of goods to China (excluding precious metals) have risen from 8.8 billion to CHF 15.4 billion, an increase of 74 per cent (2023 figures). Imports of goods rose by 47.5 per cent over the same period, from CHF 12.1 billion to 17.9 billion.
The draft mandate for negotiating to optimise the free trade agreement was supported by the Foreign Policy Committee of the Council of States at its meeting on 20 June and by the Foreign Policy Committee of the National Council at its meeting on 27 August.
The bilateral working visit is part of efforts to resume contact between Switzerland and China at parliamentary level, following the disruption caused by the pandemic. These efforts have been ongoing since the start of the year. On 26 March, Vice President of the National People’s Congress, Xiao Jie, was received in Bern by National Council president Eric Nussbaumer. The president of the National Council Foreign Policy Committee, Laurent Wehrli, paid a brief visit to China in May of this year.
During this working visit, the EFTA/EU Delegation will be represented by its chair, National Council member Thomas Aeschi (SVP, ZG), alongside National Council members Hans-Peter Portmann (FDP, ZH) and Elisabeth Schneider-Schneiter (The Centre, BL) and Council of States member Carlo Sommaruga (SP, GE).