Switzerland - China Free-Trade Agreement Will Greatly Disrupt Swiss Watch Sales Globally
Federal Councillor and Head of the Federal Department of Economic Affairs of Switzerland with the Chinese Minister of Commerce. Image Credit: AFPSeveral days ago something of great importance to the global luxury watch industry happened in Beijing. On July 6th, 2013 Switzerland and China signed a bilateral free-trade agreement. A historic move, it is the first agreement of its type between China and a European country, and the deal was motivated on the Swiss side by the interests of the watch industry. While potentially good for the Swiss watch industry, the move will likely have devastating effects on the global watch retail market over the next few years.China is the single largest importer of Swiss goods next to the European Union and the United States of America. Estimates put the trade value of bilateral trade between Switzerland and China at over $26 billion. About 32% of that is Swiss watches. Chinese consumers have a great fondness for European luxury goods, including, to a lar

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