ZURICH - Switzerland hopes to seal an updated free trade agreement with China in early 2026, Foreign Minister Ignazio Cassis said on Friday, following a meeting with his Chinese counterpart Wang Yi.

China is Switzerland's third-biggest trading partner after the United States and the European Union, and the need to update their existing deal - which entered into force in 2014 - has become more important after the U.S. imposed tariffs of 39% on Swiss imports in August.

"We are pleased that the discussions on modernising (our free trade agreement) are proceeding constructively, and we both hope to be able to complete this work soon," Cassis told reporters after the pair met in Bellinzona.

"We will probably not achieve this by the end of this year as we had hoped, but we are counting on the beginning of next year for a more open, fair trade based on international free trade rules,” Cassis added.

MORE PRODUCTS TO BENEFIT FROM ZERO TARIFFS

China and Switzerland signed a free trade agreement in 2013, Beijing's first such deal with an economy in continental Europe.

But some Swiss products like watches and pharmaceuticals still face significant Chinese tariffs, while China wants more Swiss investment. The original agreement also had limited provisions for services.

Efforts to refresh the deal have previously stalled amid reports of concerns about China's human rights record.

On Friday Wang said that both sides were accelerating their effort to "optimise" the free trade agreement, which he said would increase the number of products subject to zero tariffs.

"We had in-depth, pragmatic and friendly discussions, and this dialogue was strategic, constructive and forward-looking," Wang told reporters.

"Currently, both parties are stepping up efforts to optimise the free trade agreement, and more products will benefit from zero tariffs, greatly benefiting businesses and consumers in both countries."