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Good news for Ningbo textile & clothing industry
- Details
- Category: Ningbo Business
- Published: Tuesday, 16 July 2013 16:28
Chinese Ministry of Commerce and the Swiss Federal Council have formally signed the Sino-Swiss free trade agreement, which covers traditional areas such as trade, services, finance, and intellectual property rights. According to the agreement, the proportion of zero tariff goods between the two countries will exceed 95%, which is definitely a piece of good news for Ningbo enterprises that export textiles to Switzerland.
Since the beginning of this year, Ningbo’s export trade to Switzerland has maintained the good momentum. 1007 batches of exports to Switzerland were received by Ningbo Inspection and Quarantine Bureau in the first half of this year, with a total value of $40.51 million, up by 16.42% and 128% respectively.
According to reports, the Sino-Swiss free trade agreement is a comprehensive, high-standard and mutually beneficial agreement, as its tax reduction surpasses the average 90% of the general free trade agreements. In terms of industry, the textile & clothing industry will benefit the most. Prior to the signing of the agreement, China enjoyed the Swiss generalized system of tariff preferences for developing countries, while some industries were not covered, including textiles, clothing, and certain chemical products, furniture, toys and sporting goods. After the implementation of the Sino-Swiss free trade agreement, all the Swiss exports to China receive zero tariffs.
Clothing, shoes and home appliances are among the major Ningbo exports to Switzerland. Textile exports account for important shares of the exports, With the Sino-Swiss free trade agreement, zero tariffs become a reality, and Ningbo textile products, which account for important shares of all the exports to Switzerland, are expected to increase volume and expand market share.
The Sino-Swiss free trade agreement will not only help expand trade links between enterprises in Ningbo and their counterparts in Switzerland, but also create conditions for Ningbo enterprises to further open up the EU market by taking advantage of Switzerland’s position as a traditional trade route and a “crossroad” of Europe.
