China And Switzerland To Discuss Feasibility Of Achieving FTA

by Ulrika Lomas, Tax-News.com, Brussels

29 January 2009

The Swiss Federal Department of Economic Affairs has announced that discussions will be launched later this year with China to examine the feasibility of a bilateral free trade agreement.

President Hans-Rudolf Merz received the Chinese Prime Minister Wen Jiabao on an official working visit on January 27 to discuss bilateral economic cooperation.

Discussions focused mainly on the economic situation against the backdrop of the current global financial crisis, but it was agreed that a Swiss-Chinese working group on the feasibility of an FTA should begin work in the second half of 2009 with the aim of deciding on the commencement of negotiations at the earliest opportunity.

A new bilateral investment protection agreement was signed during the meeting. This new agreement replaces the existing one from 1986, which is now outdated.

Swiss direct investment in China currently amounts to almost CHF5bn (USD4.6bn) placing Switzerland fifteenth on the list of China's most important investors.

Chinese direct investment in Switzerland is currently still relatively modest. It is hoped that the new investment protection agreement will encourage growth.

The working meeting with Prime Minister Wen Jiabao was the first official high-level meeting since the State visit by President Jiang Zemin in March 1999.

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