FTA agreements on horizon (3)

Meanwhile, insiders said negotiators from Beijing and Bern have already finished the lion's share of the FTA draft with food and agriculture still being the thorny issues on which an agreement has not been reached. Switzerland is trying to protect the sector, as it is a net importer of agricultural products.

According to de Watteville the main objective of the agreement is to promote trade and investment between both countries by eliminating or reducing tariffs on most goods, removing non-tariff barriers, improving market access for goods and services, and by intensifying economic cooperation.

"If these objectives are met, this would create favorable conditions for companies from both sides and boost two-way trade and investment," he said, adding that China and Switzerland have highly complementary economies and would therefore greatly benefit from such an agreement.

Iceland's President Grimsson has also pinned high hopes on the conclusion of the FTA.

Under the new Chinese leadership, Grimsson said the agreement could further reinforce the constructive and active economic cooperation between China and Iceland.

Grimsson said Premier Wen Jiabao's visit to Iceland last year has consolidated the bilateral relationship and the two countries will further enhance cooperation on the environmental and clean-technology fields.

He also said the two countries will boost cooperation on ice-covered areas, especially in the Himalaya and Arctic regions.

"We share many mutual interests in these areas," said Grimsson.

Together with China's new leaders, Grimsson said he would continue to push forward the reinforcement of bilateral relations and also issues of global importance.

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