China and Switzerland Free Trade Agreement Negotiations the Main Problems
Whether it is with which country, which the regional economic groupings to start trade negotiations, we need to avoid being misled by some selfish interest groups distort the state the right policy. Particularly to prevent high-income groups in order to meet the pursuit of overseas luxury desires at the expense of the domestic market and opportunities for domestic industries. Switzerland has implemented tax incentives and strict bank secrecy, while the Swiss bilateral free trade agreements can not be created for our to facilitate capital flight.
China’s comprehensive strategy for regional free trade is expected to gain another victory, this time is widely recognized as a leading rich countries of Switzerland.
According to the last few days announced two high-level information on a bilateral free trade agreement and Sweden joint study has been completed, the two countries is expected to start early next year a free trade agreement negotiations. If he could have success in Australia and China before the free trade agreement, the Swiss will become the second after New Zealand signed a free trade agreement with China’s national and economic development nor Switzerland, New Zealand, Australia can hold a candle.
Switzerland and China, one the world’s highest trade dependence on big powers, the party was for centuries the economy is highly export-oriented countries, 95% of the raw materials, energy, and 60% of imported consumer goods, industrial products from 70 to 90 percent for export, so if the two countries signed a bilateral free trade fair and reasonable agreement is undoubtedly a win-win move, but the years of trade between the two countries have laid a good foundation for this, it has withstood the test of the global economic and financial crisis. In view of the two economies are highly complementary and overlapping structure of competition is not part of, I believe that the upcoming negotiations of free trade agreements, once signed, will not bring too much burden of adjustment between the two countries.
Given the size and growth rate of China’s economic and trade is much larger than Switzerland, it is certain that the proposed bilateral free trade agreements larger driving force of the Swiss economy. In fact, in recent years increased China’s imports from Switzerland, not only higher than the growth of total Chinese imports, but also higher than the growth of Chinese exports to Switzerland. In the raging global economic and financial crisis in 2009, China’s exports to Switzerland 26.5847 million U.S. dollars, up 32.0% drop is a decline in total exports that year (16.0%) twice; imported from Switzerland 68.9848 billion, down 6.1%, only very year decline in total imports (11.2%) more than half. The first half of this year, Sino-Swedish trade volume soared 127%, of which China imports from Switzerland increased as much as 180%.
The foreign exchange gap that had been bound out of China, the Swiss trade deficit and put on the table need not be the problem, let alone pursue the permanent neutrality, and universal respect by the international community in Switzerland, worked in the history of the new China breaking trade embargo provides a breakthrough for the Chinese companies can now provide for a broader foothold in the EU market. Switzerland was among the first to recognize and establish diplomatic relations with China, Western countries, in the last century 50’s, both with the US-led negotiations on Indo-China war and the Western camp, or break through blockade purchase Western goods, Switzerland is struggling to prove their independence for the then ability of survival and development of new China to provide a stage and windows. Today, the Swiss domestic market, though limited, and because there are more people joining the EU concerns in the foreseeable future can not join the European Union, Switzerland has signed the European Union signed an agreement on free movement of personnel, elimination of technical barriers to trade in seven The first area of bilateral agreements and the amount of interest tax, anti-tax fraud, the Schengen / Dublin agreement on the second batch of nine areas of bilateral agreements. In particular, by the end of 2008 the Swiss to become “the Schengen Agreement,” the first 27 members and three non-EU member states, based on the Swiss business community in China has created conditions for opening the EU market.
So, free trade agreement negotiations and Sweden need to pay attention problem? First, of course, is a political issue. Carry out mutual respect for national sovereignty is the premise of equality and mutual benefit of international trade. Although over the years the Swiss Government to recognize Tibet as Chinese territory, but some people some of the Swiss public support the Tibetan separatist forces. Some Swiss live to work in China for some time to understand the truth of Tibet, friends and colleagues after returning to respect the history of Tibet as Chinese territory, much longer than the history of Switzerland, the results also lost their bosses warned … … All these, and if the Swiss can not be seriously effective correction, sooner or later will be in Sweden trade and economic and even political and economic relations have significant impact on the overall situation.
In purely economic matters, China FTA negotiations with Switzerland to note that although some of the luxury import duties can and should be appropriately reduced, but the signing of free trade agreements with foreign countries can not change China’s high tariffs on luxury goods and the basic pattern of non-tariff barriers, in view of “Swiss made” known to luxury Swiss luxury goods are also popular with Chinese people’s pursuit of high-income, from January to April this year, China’s imports from Switzerland, “Jewelry, precious metals and products, imitation jewelry, Coins “category, nearly 300 million U.S. dollars,” Clocks “category more than 360 million U.S. dollars, clear and to reiterate this point, particularly important.
Whether it is with which country, which the regional economic groupings to start trade negotiations, we need to avoid being misled by some selfish interest groups distort the state the right policy. Particularly to prevent high-income groups in order to meet the pursuit of overseas luxury desires at the expense of the domestic market, the expense of domestic industry opportunities. In some areas of financial services, and in some we are ready to develop the advanced manufacturing sector, in such developed countries and Switzerland to negotiate free trade agreements may be misled by certain interest groups. We especially need to guard against.
There can not but mention that the Swiss asset management industry highly developed, has been a result of the implementation of tax incentives and strict bank secrecy regime listed in the “tax havens”, and been criticized in the Swiss bilateral free trade agreements can not for our capital created to facilitate the exodus. At this point, we advocated in recent years to strengthen fight against “tax havens” efforts of Germany, France and other European countries have common interests, is to increase their transparency in international financial markets ground to force the Swiss bank secrecy abolished, Germany, and France OECD countries also requires the inclusion of Switzerland “uncooperative” and “tax haven” black list, and to promote key EU member states to develop appropriate disciplinary measures. External pressure, the Swiss Government has announced its acceptance of OECD countries in Tax Case in providing legal assistance to the standards that wish to adopt or modify the conclusion of bilateral agreements to avoid double taxation, suspicious depositors in the provision of information and improve mutual legal assistance and so on concessions, and to the 20 Summit of the Group of London under the “gray list of tax havens” instead of black. We can borrow the international community has achieved these results raised the same time need to explore possible new management program.
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