GENEVA

Switzerland’s Federal Council on Wednesday adopted the dispatch on a free trade agreement between the European Free Trade Association (EFTA) states and Malaysia, a procedural step that clears the way for parliamentary debate on the deal.

In a statement, the government said the agreement would help Swiss companies diversify their export markets, strengthen legal certainty in economic relations with Malaysia and improve access for Swiss businesses operating in Southeast Asia.

It would also reduce "potential discrimination" compared with countries that already have, or are negotiating, similar agreements with Malaysia, including the EU.

Malaysia is Switzerland’s "fourth-largest trading partner" in Southeast Asia, after Singapore, Thailand and Vietnam, with bilateral trade in goods amounting to 2.3 billion Swiss francs (nearly $3 billion) in 2024, according to the Federal Council. Nearly 99.9% of current Swiss exports to Malaysia would benefit from tariff reductions under the agreement, in some cases following transition periods.

The deal largely mirrors recent EFTA free trade agreements and has a broad scope, covering industrial and agricultural goods, services, investments, public procurement, intellectual property and dispute settlement. It also includes a legally binding chapter on environmental protection and labor rights, the council said.

The free trade agreement between EFTA and Malaysia was signed in June 2025 in Tromso, Norway, and is expected to be debated by Switzerland's parliament during the spring and summer sessions of 2026.