Press conference on the entry into force of the free trade agreement between Switzerland and China
Bern, 01.07.2014 - Federal Councillor Johann N. Schneider-Ammann, Head of the Federal Department of Economic Affairs, Education and Research EAER | Entry into force of the free trade agreement between Switzerland and China
Ladies and gentlemen
On 13th May last year, following the conclusion of the negotiations on the free trade agreement with China, I said that I felt good.
I am sure you can imagine that I have an even better feeling now, on the day that the agreement comes into force.
Our economy needs access to markets for its goods and services. The Swiss domestic market alone is too small for our economy and our labour market to prosper, and this is the main consideration which shapes our foreign economic policy.
Opening up markets and improving access conditions are two of the principal objectives we actively pursue.
In recent years, free trade agreements have become an important instrument in this policy. But I would like to stress that they complement rather than compete with multilateral agreements within the framework of the WTO.
Especially following the vote on mass immigration on 9th and the uncertainties that this created in our relationship with the EU, which is by far our biggest trading partner, free trade agreements with other major economies have become all the more important for Swiss industry.
After the EU and the USA, China is our third main trading partner. Last year the volume of trade between our two countries was worth over 20 billion francs. This is a further reason for celebrating the entry into force of the comprehensive free trade agreement between Switzerland and China.
I am convinced that both sides will benefit from this agreement, as it will help to create and secure jobs in both countries.
Ladies and gentlemen, I am sure that you have been able to study the free trade agreement in the time that has elapsed since I and my counterpart, Minister of Trade Gao Hucheng, signed it almost a year ago. However, I would like to mention a few of the main points here:
The vast majority of industrial and agricultural goods exported from Switzerland will enjoy tariff concessions - some with immediate effect, some after a period of transition. This means that Swiss products will become considerably more competitive over the short and medium term. This will create added value and jobs in Switzerland. In return, Chinese industrial products will have duty-free access to the Swiss market, leading to lower prices for primary products used in our manufacturing industry.
In terms of services and the protection of intellectual property, the agreement improves the legal certainty and therefore the ability to plan, which will cut costs for Swiss businesses and open up new opportunities.
The chapter on environmental issues and the parallel agreement on labour and employment matters, which already came into force on 9th June, address the issue of sustainable development and the associated social and ecological objectives.
I am certain that China will become increasingly important to us economically over the coming years. The growing Chinese middle class has a high awareness of quality and brands, and this is an opportunity for our consumer goods industry.
Rising labour costs call for greater automation, and this provides an opportunity for our machine industry.
Rapid urbanisation places considerable demands on electricity and water supply, for example, and this provides an opportunity for our infrastructure industry.
I trust our businesses to find the right niche and to demonstrate the innovation required to convince Chinese customers. The free trade agreement is intended to give them an additional boost.
Ladies and gentlemen,
Cantonal councillor Brutschin was right in saying that the Basel Rheinhafen docks are a major gateway to the world. This is clearly demonstrated here at the Verkehrsdrehscheibe Schweiz Museum. I am delighted that today we have opened the gate to the world slightly further. For after all, many of our exports begin their journey to China right here at the Rheinhafen.
Many thanks.
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Federal Department of Economic Affairs, Education and Research
http://www.wbf.admin.ch
