Switzerland Moves Towards FTAs with China and Others in Asia Pacific

[ABS News Service/04.11.2026]

Geneva – While some prefer to erect new walls,” Switzerland wants “to build bridges between countries, markets and people,” its President said yesterday, amid mounting headwinds in the global trading system, which is rapidly fragmenting due to the rise of unilateral actions.

Speaking to foreign correspondents in Switzerland and Liechtenstein in Berne, the Swiss capital, Swiss President Guy Parmelin said his country wants “to maintain dialogue despite political differences.”

Insisting that his administration is “not naïve,” Mr. Parmelin asserted that Berne is “aware of the risks and the different interests, and we will defend the values of international law.”

Emphasizing Switzerland’s neutralist stance, the President maintained that “we are convinced that cooperation is better than confrontation, and common rules are better than the law of the jungle.”

“This is why we remain committed to open, fair and rules-based global trade,” he said.

Switzerland is working to conclude free trade agreements while pursuing several new trade and investment initiatives outside the World Trade Organization.

However, Mr. Parmelin said Berne remains committed to the WTO, notwithstanding the headwinds it currently faces.

Against this backdrop, the question is how Switzerland intends to reconcile its position with German Chancellor Friedrich Merz’s calls for large-scale free trade agreements with the Pacific region, on the one hand, and President Trump’s pursuit of fair and reciprocal trade policies, on the other.

Mr. Parmelin said “it is absolutely necessary that the WTO rules must be respected.”

In the same breath, he said “we regret that it is not the case actually,” implying that countries are failing to implement the rules.

“That’s why we try to find special rules, which can be respected by small and medium countries,” the President said.

The Swiss presidency operates on a rotating basis, with the Federal Council, Switzerland’s executive body, rotating the presidency annually among its members. The arrangement is intended to prevent any single individual from wielding excessive power or influence, thereby promoting stability and balance within the government.

Mr. Parmelin, who heads the trade and economy division, is expected to complete his term by the end of this year.

Recently, he met several heads of state to pursue free trade agreements, including President Trump, with a view to concluding a joint agreement.

Switzerland, he said, is also engaged with a group of middle-income countries in an investment initiative called the “Future of Investment and Trade Partnership” (FIT-P). The initiative aims to develop “concrete solutions to current and future challenges in trade and investment,” through a work programme focusing on four areas: supply chain resilience, digital trade, new trade technologies, and strengthening the rules-based trading system, a senior advisor to President Parmelin said.

The FIT-P comprises Switzerland, Brunei, Chile, Costa Rica, Fiji, Iceland, Liechtenstein, Malaysia, Morocco, New Zealand, Norway, Panama, Paraguay, Peru, the Republic of Korea, Rwanda, Singapore, the United Arab Emirates, Thailand and Uruguay.

Switzerland also coordinates the Friends of the System group at the WTO, which is proponent of the WTO reform agenda.

Asked about the group’s role in WTO reform discussions, Mr, Parmelin said the WTO rules are strong, although the Appellate Body remains dysfunctional.

He cited the trade dispute Switzerland launched against the United States in 2018 over Section 232 tariffs on steel and aluminum. In that dispute, the panel sided with Berne, finding that Washington had violated several trade provisions.

Mr. Parmelin said the United States chose to appeal the panel ruling, effectively voiding the findings because of the dysfunctional Appellate Body.

“We can’t have the second step if you win against the US,” he said, indicating that the AB remains paralyzed.

“I think it's not good for all the world, for US, for European Union, for all other countries and it's why small and medium-sized country try to respect the rules-based system of the WTO,” he said.

The Swiss President said some 85 percent to 86 percent of international trade is still conducted under WTO rules.

However, “it is not a good solution,” he said.

Trade Deal with China

President Parmelin referred to his country’s recent free trade agreement with China, including his meeting with Chinese President Xi Jinping.

Signed on October 30, the new Protocol Enhancing the Free Trade Agreement seeks to make “joint commitments to high-standard opening up in goods, services and investment and further upgrade rules in relevant fields, such as rules of origin, trade facilitation, technical barriers to trade, digital trade, competition, and trade and sustainable development, on the basis of the original FTA,” according to a press release issued by China.

Further, the two countries claimed that “the enhancement of China-Switzerland FTA will further deepen bilateral economic and trade cooperation, and provide stronger institutional guarantees for the liberalization and facilitation of bilateral trade and investment, demonstrating the two sides’ clear position in support of free trade, open cooperation and the rules-based multilateral trading system amid current uncertain international environment.”

The two sides launched the FTA enhancement negotiations in 2024 and announced the conclusion in August 2026 after five rounds of negotiations.

Following the signing of the enhancement Protocol, the two sides “will complete their respective domestic legal ratification procedures and jointly promote its early entry into force, so as to benefit the enterprises and people of the two countries as early as possible.”

A Swiss official working with President Parmelin told WTD that the enhanced free trade agreement with China will cover 99.5 percent of bilateral trade between the two countries.

Switzerland has already abolished tariffs on all industrial products, with some safeguards on agricultural products, the Swiss official said.