The Sino-Swiss Free Trade Agreement (SSFTA) 10 Years On: Benefits for Swiss and Chinese Exporters still have Room for Improvement

This report evaluates the impact of the Sino-Swiss Free Trade Agreement (SSFTA) through an in-depth analysis of its utilization rates and trade deficits. Part II focuses on the methodology for calculating SSFTA utilization, refined by Chinese and Swiss researchers, and presents key findings: Swiss exporters have significantly increased their use of the SSFTA, with utilization rates rising from 58% to 71% over five years, resulting in savings of USD 220 million in 2022. In contrast, Chinese exporters have seen a slight decline in utilization, from 42.2% to 39.3%, due in part to tariff-free status on major IT exports. Despite this, increased trade volumes have led to higher overall savings.
Part III explores broader dimensions of the Swiss-Sino economic relationship, including trade in services and foreign direct investment (FDI). It highlights Switzerland’s growing surplus in services trade and the potential of China’s service sector. The report also examines China’s FTA investment provisions and the role of trade in firm internationalization. The findings underscore the SSFTA’s role in fostering bilateral trade and investment, while also addressing global economic challenges such as de-globalization and climate change. The report concludes that deeper cooperation under the SSFTA framework can contribute to more open and resilient global trade.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4593483