A new free trade agreement was signed by the governments of China and Switzerland today. This new partnership between the two countries are said to enhance the Swiss economy's growth, said officials and businessmen in Switzerland.

The neutral European country is among the few countries to sign a free trade agreement with the Asian tiger economy. "As one of the first Western countries to sign a free-trade agreement with China, we think this could help many Swiss companies make further inroads into the country,"  said the head of Switzerland's Department of Economics Johann Schneider-Amman. The agreement was signed in Beijing.

The agreement is said to benefit the European country more than its Asian counterpart, said analysts. It stipulated that Swiss products entering the Chinese market gain lax tax and duties, including pharmaceuticals, machine tools, and the most famous Swiss imports - watches.

Switzerland's largest export markets are Germany, Italy, United States, and now China.