Switzerland, China to Accelerate Trade Talks as US Tariffs Bite

(Bloomberg) — The Swiss are seeking closer collaboration on trade with China as Switzerland’s talks with the US administration continue in an attempt to lower tariff rates from a record level.

Swiss Foreign Minister Ignazio Cassis and Chinese counterpart Wang Yi agreed that the two nations will accelerate negotiations on upgrading their free-trade agreement, according to a joint statement issued on Friday.

The new treaty should expand cooperation in areas such as AI, green development, the digital economy, finance, and trade in services, negotiators agreed during the fourth meeting of an ongoing strategic dialogue, held Friday in the southern Switzerland town of Bellinzona.

The Alpine nation is under pressure to shore up relations with other trading partners, including China, as the country reels from the shock of 39% tariffs imposed on its exports to the US, one of its key allies.

While the Swiss are still hoping for a better deal with Washington, the tariffs introduced in August have quickly led to a sharp decline in exports to the US, and President Donald Trump’s trade policies have increased uncertainty about the Swiss economy.

The free trade agreement between China and Switzerland that’s been in place since 2014 contributed to an intensification of trade and the diversification of economic relations, the countries said in Friday’s declaration.

They added that an optimized agreement is “intended to make trade more predictable and sustainable, while supporting more open, inclusive, and balanced globalization.”

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