The Canada-Swiss Association has a key role to play in promoting understanding between Canada and Switzerland, which in turn will lead to a greater awareness of business opportunities in our two countries.

Switzerland and Canada have much in common. Politically, our countries are federal states where the rights of minorities are respected and political differences are resolved peacefully, through democratic institutions.

Both of our countries are known for their political stability and high standard of living. In a world marred by conflict, our countries offer an inspirational model of peace and security gained through tolerance and mutual respect.

Visits between elected officials are frequent and friendly. Our countries have closely consulted on environmental and security issues as well as trade and humanitarian matters.

Our friendship is also reinforced by tourism. Canada is the third most important long-haul destination for Swiss tourists, behind the United States and Thailand. Well over 100 000 Swiss tourists visited Canada in 1996, attracted by the favourable exchange rate, the beauty of our natural scenery and ease with the language. This is a very impressive number, considering the population of your country. I like to think these pleasure trips resulted in new friends and added to the good will our people already share.

In 1995, two-way trade between Canada and Switzerland was almost $1.5 billion, with Canadian exports to Switzerland reaching $533 million. We imported about $902 million from Switzerland in 1995, a considerable increase from the 1994 level of $764 million.

Switzerland is the fifth largest direct investor in Canada among European countries and is seventh largest worldwide. According to Statistics Canada, these investments total some $3.2 billion, an increase of $800 million over the past five years.

As impressive as these numbers may seem, the reality is that there is still a vast amount of untapped potential.

The simple truth is that Canada remains a largely undiscovered market for Switzerland.

The task for you and for me is to change that. We've got a great product to sell -- Canada -- and the time has come to aggressively market that product here in Switzerland.

We know from experience that when Swiss business people are persuaded to consider Canada's advantages, they are impressed.

Companies such as Nestlé, headquartered in Toronto, ABA Inc. in St. Laurent, St. Lawrence Cement in Mount Royal, Cia-Gag in Mississauga and Sandwell Inc. in Vancouver have joined companies from other nations in choosing Canada as a good place in which to invest.

Also significant is the role played by the main financial institutions, including the three leading Swiss banks, which rank fourth in Canada in terms of assets after institutions from the United States, the United Kingdom and France.

What took all of those companies to Canada? Why, when they could have located anywhere in the world, did they choose Canada? There are numerous factors, but let me focus briefly today on five key reasons why Swiss businesses should consider investing in Canada.

Number one, Canada offers access to the world's richest market. By investing in Canada, international businesses gain tariff-free access to the United States under the terms of the Canada-U.S. Free Trade Agreement. Companies also gain access to the large and growing Mexican market through the North American Free Trade Agreement [NAFTA]. This represents unequalled access to a market of 360 million people with a total economy larger than that of the European Community.

The great majority of Canadian industry is located a just-in-time drive from the major U.S. manufacturers.

And because Canada is a land of immigrants, we are able to offer pools of experienced workers often fluent in other languages and knowledgeable of international cultures and business practices, who can provide an easy transition from Europe to North America.

The second reason to set up shop in Canada is our competitive wage rates and our educated work force.

Firms in Canada enjoy the benefits of a skilled, cost-effective labour force that has proven itself adaptable to changing times and changing technologies. Productivity is high and rising. Over the last two years, productivity in manufacturing has been the fastest growing among the G-7 nations. In the automotive assembly industry, Canadian productivity levels are 5 per cent higher than those in the United States.

Canadian wage rates are also very competitive with those of other countries, and current trends (such as wage settlements, labour attitudes to such issues as flexible working hours, and so on) are making them even more so.

Other costs associated with labour, such as employer-paid social security taxes and health care, are lower for Canadian firms than for our U.S. competitors. In fact, Chrysler Corporation has calculated that U.S. health insurance bills give production in Canada an advantage of more than $500 per car. I am told that total Canadian wage costs average less than half of German wage costs.

Canada's is also a well-educated work force. According to Organization for Economic Co-operation and Development figures, we are one of the top four countries in the world in terms of the percentage of gross domestic product [GDP] that is spent on education. And a number of very successful job training programs are in place that help to achieve a match between the needs of industry and the supply of skills.

As noted in a recent U.S. survey, 9 of the top 20 electrical engineering schools in North America are located in Canada. And the university of choice for Microsoft recruiters is the University of Waterloo in Ontario.

Third, Canada boasts strong research capabilities. Indeed, international businesses are increasingly using Canada as a base for research and development [R&D]. Canadian universities, technical colleges and scientific research organizations provide a unique pool of talent that is contributing to innovative product development and design.

Canadian companies also benefit from the most generous R&D tax incentives in the G-7. These companies have access to "centres of excellence" established within universities and to university-business consortia in areas such as robotics, computer-aided design and pharmaceutical development.

At the moment, Canada is home to research and product development facilities for international companies such as IBM, Digital Equipment, Glaxo and Amdahl.

The fourth reason I would suggest Swiss firms should consider Canada is our abundance of raw materials and our vast energy supplies.

Canada is renowned for its rich mineral reserves and productive agricultural land. These resources and the cost effectiveness of their extraction enable Canada to be a leading exporter of key commodities around the world.

Canada is also one of only two G-7 countries to be self-sufficient in oil supplies and is the only G-7 country that is a net exporter of natural gas. And prices for this gas and for electricity are very competitive.

Fifth, Canada enjoys a modern and efficient infrastructure. A 1993 report by the World Economic Forum ranked countries on several competitiveness criteria. Four of these dealt with roads, railroads, air transport and ports. Canada's average rating for these criteria was the highest amongst all G-7 nations.

But we know that infrastructure must constantly be updated. That is why Canadian telecommunications suppliers have been investing heavily to provide the latest fibre optic technology and high-speed data transmission services. The Canadian government recently invested $6 billion in a national infrastructure program in order to maintain Canada's competitive advantage in this area. This was a cost-shared program, with the three levels of government -- municipal, provincial and federal -- each contributing $2 billion.

Finally, and very important, is Canada's economic climate. We expect 1997 to bring another year of high economic growth, combined with low inflation and interest rates. This economic recovery has been led by two developments -- a reduction in government spending and an increase in exports. Our government has surpassed its own goals for deficit reduction. When we assumed office in October 1993, the federal deficit was 6 per cent of GDP. Today it is 2 per cent, and we are on track for achieving our goal of a balanced budget.

All of these advantages make Canada a wonderful place to do business.

Moreover, we have been working hard to minimize government intervention and stimulate private sector activities by, for example, privatizing many government enterprises.

Now, I know that there are a lot of Canadians in the audience who want me to talk about the quality of life in Canada. But it would be immodest to use this forum to remind people that the United Nations Human Development Report listed Canada as the number one country in the world in terms of overall quality of life. And a recent KPMG study reported that for every industry, the cost of doing business is cheaper in Canada than in the United States.

It would be inappropriate to talk about our clean, safe cities, with crime rates less than half of those of our neighbours to the south.

And it would be just plain unfair to mention that we are the second largest country, in land mass, in the world, with the lowest population density of all industrialized nations. Or that our national parks alone encompass an area larger than Italy or Japan.

Nor would I presume to talk to this audience about the sheer beauty of our landscape -- of our rugged mountains, freshwater lakes, scenic coastal areas, unique Arctic vistas or vast, unspoiled forests. It just wouldn't be right to note that many Canadian executives own second homes in picturesque lake and mountain areas, just an hour or so outside our major cities.

No, it would be wrong to mention any of those things, so I will leave them unsaid. After all, 100 000 Swiss tourists can't be wrong.

Of course, you would expect me to be biased toward my own country. So the best thing to do is encourage Swiss business people to talk with the managers of multinationals that are operating in North America. They'll tell them that their Canadian operations "put up the best numbers."

What you might want to add is that the Canadian economy is entering a new growth period, fuelled by strong exports, low inflation and increasing productivity.

If the case is made, by Canadians and by others, I have a feeling that Canada will no longer remain overlooked by our Swiss friends. And the true potential of Swiss-Canadian trade will at last be realized.

Thank you.

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