China - Swiss Free-trade Area Expected Economic Effect And Countermeasures Research

China-Switzerland FTA is one of the six FTA which were in the negotiation stage ofChina, belongs to the typical North and South type of free trade area. China’s participating inthe construction of China-Switzerland FTA is to promote China’s FTA building strategyaccording to “the People’s Republic of China’s national economic and social development12th Five-Year Plan”. The two nations have already experienced6round negotiations sinceJan.2011, both two parties have fully exchanged their ideas in the area of tax cut mode,service trade, rules of origin, intellectual property, dispute settlement mechanism，etc. andachieved a series of consensus, the negotiations have made great progress. The finalestablishment of China-Switzerland FTA can be expected soon.This thesis starts from the economic cooperation basis between two nations，and thenanalyze the two nations’ trade structure、investment environment and trade policy throughcontrastive study, find out the proper area and the way for both countries to cooperate. On thisbasis, by using the theoretical model like the FTA Partial Equilibrium Analysis，GeneralEquilibrium Analysis to analyze the expected economic effects and the cost-benefit outcome.Finally according to the results of above analysis, this thesis provides policy suggestions tomake both countries obtain a win-win situation.Through detailed study and investigation, it is found that, the recent trade and economicsituation between China and Switzerland has laid a good economic foundation for theconstruction of the free trade area. Meanwhile, the strong complementarities of the twocountries’ economic structure can also contribute to the free trade area’s win-win situation. But,despite the win-win impact of China-Switzerland FTA for both countries, China will shouldermore cost than Switzerland. Therefore, China should strive for more benefits through thesetting up of FTA regulations to balance the cost-benefit outcome.