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(Chinese Premier Li Keqiang (R) meets with Johann Schneider-Ammann, Swiss Federal Councilor and head of the Swiss Federal Department of Economic Affairs, in Beijing, capital of China, July 6, 2013)

China's Commerce Minister Gao Hucheng and the Swiss Federal Councilor and head of the Swiss Federal Department of Economic Affairs Johann Schneider-Ammann signed a free trade agreement (FTA) between China and Switzerland in Beijing, July 6. This is the first free trade agreement signed between China and a country in continental Europe.

In a press conference after the signing ceremony, both sides said the signing of the FTA is another milestone in the development of economic and trade cooperation between the two countries. The agreement made a predictable institutional framework for future economic and trade exchanges between the two countries. It will bring long-term and positive impact of economic development for both sides.

Gao said, the China-Switzerland FTA is a comprehensive, high-leveled and mutually beneficial agreement.

First of all, the agreement has a high zero tariff rate. Once the FTA takes effect, Switzerland will immediately implement zero tariff to 99.7 percent of Chinese exports, and China to 84.2 percent of Swiss exports. If some tax reduction products are added, the tax reduction ratio of Swiss products is 99.99 percent, and 96.5 percent of Chinese products. This greatly exceeds  general FTA level of 90 percent of tax reduction.

Second, the agreement provides docking and cooperation platform for two countries industry.

Third, the agreement involves many new rules on environment, labor and employment cooperation, intellectual property rights, government procurement information exchange, competition and so on.

Schneider said, after nine rounds of negotiates of more than two years, both sides reached an agreement of overall balance, and it will inject new vitality to the economic and trade relations between the two countries. For Switzerland, based on the existing law, the FTA will better protect Swiss companies entering the emerging Chinese market.

Gao said, China-Switzerland FTA reflects the determination and confidence of China to continually expand opening up, and China will use this as an opportunity to speed up the strategy of free trade. He hoped that both sides will work hard, complete their respective domestic program and promote the agreement to come into effect as soon as possible, so that businesses and people of both countries can be benefited early.

China is Switzerland's largest trading partner in Asia, while Switzerland is China's eighth largest trading partner in Europe. In 2012, China-Switzerland bilateral trade volume was $26.31 billion, and it reached $22.89 billion in the first five months of the year, up 114.2 percent from a year earlier. By May of this year, Switzerland has totally invested more than $5.2 billion in China.