GENEVA, July 3 -- With the Free Trade Agreement (FTA) entered into force on Tuesday, China and Switzerland have established a preferential trade relationship for goods and services.

Swiss officials and experts say the FTA will foster the win-win trade and economic exchange within the two sides.

The FTA, signed in Beijing on July 6, 2013, after nine rounds of negotiations of more than two years, is the first free trade pact inked between China and a country in continental Europe.

According to the FTA, as much as 99.7 percent of Chinese exports to Switzerland will be immediately exempted from tariffs, while 84.2 percent of Swiss exports to China will eventually receive zero tariffs.

From a Swiss perspective, the FTA enables a competitive advantage compared to countries which have not a FTA with China.

Noting that the vast majority of industrial and agricultural goods exported from Switzerland to China will enjoy tariff concession, either some with immediate effect or some after a period of transition, Swiss Federal Councilor Johann Schneider-Ammann on Tuesday said, "This means that Swiss products will become considerably more competitive over the short and medium term."

"If you ask what shall be the positive effects out of it, naturally, it is trade, and trade development on both sides," he added.

He said, "Switzerland is, honestly speaking, a very tiny market. We look for the huge Chinese market, but on the other side, China will find in Switzerland partners on a top technology level and innovation level."

Meanwhile, in terms of services and the protection of intellectual property under the FTA, he said it will improve the legal certainty and therefore the ability to plan, which will cut costs for Swiss businesses and open up new opportunities.

Patrick Odier, chairman of the Swiss Bankers Association told Xinhua that the FTA is going to facilitate enormously the exchange of know-how, in first place it triggers the collaboration in all sectors of the industry.

"Switzerland will be beneficial in technique, construction and mechanics, and we will also have a strong improvement in the trade within the field of luxury goods and special products like chemistry," he noted.

In the financial and banking industry, he said the FTA will bring in the two-way avenue both are looking forward to.

Philippe Monnier, executive director of Greater Geneva Berne Area's Economic Development Agency also told Xinhua that the FTA will encourage bilateral trade and investment, by definition this will benefit both China and Switzerland.

Besides, the Chinese consumers will enjoy the benefits of more tariff-freed Swiss products into the Chinese market, he reckoned the FTA will attract more Chinese companies and investment into Switzerland to use the country's geographical and policy advantages to conduct business in Europe.

"In our view, the most important advantage is that Chinese business people will change their perception of Switzerland," Monnier said.

He stressed that Switzerland will no longer be seen as only a country of chocolate and cheese but also as an ideal country for international business, in particular for hosting international operations such as European headquarters.

He said compared to other European countries, Switzerland is more liberal and pro-business, and many global companies choose Switzerland for their European headquarters.

By taking advantages of the country's competitive taxation, outstanding in innovation, academia-industry technology transfer, he added that Chinese companies could better use Switzerland as a platform to scale up their presence in Europe.