Luncheon Hosted by the Canada-United Kingdom Chamber of Commerce

Mr. Chairman, Distinguished Guests, Ladies and gentlemen of the Canada-United Kingdom Chamber of Commerce:

As you know, I have come to Britain to take part in the Commonwealth Heads of Government Meeting. This is my first opportunity to be in the United Kingdom since the spring election in Canada. So I am not only happy to be here, I am also lucky to be here.

It is always a pleasure for me to visit London. There are very few places in the world that can match the feeling of history and modernity that can be found here. In combination, they give London her distinctive flavour. A flavour that can only be fully appreciated with repeated servings. And I must say I have had my share.

I am also pleased to be in London because as a Canadian I know I am among old and dear friends. This year, Canada and Britain celebrated a relationship that reaches back 500 years, as we marked the voyage from Bristol to Newfoundland of John Cabot aboard The Matthew.

In the time since, common history and values have made Canada and the United Kingdom strong allies and close partners. We have grown together. Worked together. And when the cause of freedom and humanity demanded it in this century, we fought and died together. Few nations enjoy the scope and ease of contact that we do -- at every level from government to business, to the arts to the millions of personal connections that link friends and family across the Atlantic.

Our shared values are clear. Look at some of the vital issues of our day.

We have been gratified and encouraged by the very active support of Prime Minister Blair's government in the Ottawa Treaty banning anti-personnel land mines.

Nations from every corner of the world will sign this historic treaty in our national capital in just two months. I don't mind telling you that when we first initiated this process in 1994, it was often lonely and frustrating.

I want to pay tribute to the memory of the Princess of Wales, who did so much to mobilize public opinion in your country and many others, in support of banning these terrible weapons. And the decision of your new government to come on board will help make this treaty a reality. I look forward to working closely with Prime Minister Blair as we work to bring the treaty into force as soon as possible and bring more countries on board.

Our shared values are also clear in the support of Canada for a lasting resolution to the issue of Northern Ireland. And we are proud to lend the services of one of our most distinguished soldiers -- John de Chastelain -- to the Decommissioning Commission.

This complex and lasting bond between our nations exists in a world that is changing -- with breathtaking speed. We are now part of a global village and a global economy.

A new economy, where knowledge and innovation are the keys to prosperity. A new world that both our nations are meeting head on. Not with fear and trepidation. But openly. With vigour. With enthusiasm. With our sleeves rolled up. In search of new opportunities and new partnerships.

At the same time, we want to build on existing partnerships. For Canada, the Trans-Atlantic connection to the United Kingdom and Europe is not an artifact of our history, it is a key to our future.

We believe that we share common cause with Britain on the issue of promoting freer trade and investment. In the Joint Declaration Prime Minister Blair and I issued, we agreed to a joint study on eliminating barriers to trade. And we agreed to promote new trade and investment links between our two countries.

The benefits of investment flow two ways -- to the recipient and the investor.

Prime Minister Blair and I also agreed that British and Canadian officials will also work to bring together prospective business alliance partners -- especially small and medium companies who may lack the resources to identify such partners.

With a view to new business opportunities in the European Union we have also signed a Canada- European Union Action Plan. And Canada is looking beyond the European Union for new sources of trade. We are close to signing trade and economic cooperation arrangements with Norway and Switzerland.

In fact, we would like to see the conclusion of a free trade agreement between Canada and the European Free Trade Area. And we are looking increasingly toward the economies of Central and Eastern Europe. My flight to London yesterday ended a five-day visit to Russia.

The fact is that the lifeblood of the Canadian economy is trade. We export more per capita than any other major industrialized nation. We are turning the NAFTA into a winner for Canada.

We have been in the lead of the drives to create free trade zones in the Americas -- North, South and Central -- and in the Asia Pacific region.

Liberalized trade -- around the world -- is our key to sustained economic growth and the jobs and opportunity that go with them. That is why I proposed in a speech to the French Senate in 1994 that the NAFTA and the EU link together in a Trans-Atlantic Free Trade Zone. It is a goal that I will continue to advocate. It makes sense for the economies and prosperity of our countries. It would be a bold step. But we are ready in Canada for bold steps. When we think of how far we have come in four years, we are ready to take on the world.

Four years ago, Canada stood on the brink of economic disaster. Our public finances were in a terrible mess. We were described as a candidate for admission to the Third World. The world had lost confidence in our economy. Canadians had lost confidence in themselves and their future.

As we speak, it is clear that a historic corner has been turned. A new optimism is emerging from coast to coast.

How was this possible? How did we do it? Some have spoken of "the Canadian miracle."

But, ladies and gentlemen, this was no miracle. It took hard work, bold decisions, a plan, and a total focus on getting the economic fundamentals right. It took a modern approach to the role of government.

When I became Prime Minister of Canada in 1993, the federal deficit stood at about 6 per cent of our Gross Domestic Product -- or $42 billion. Last week, our Minister of Finance announced that the deficit for the fiscal year just passed (1996-97) stood at just over 1 per cent of GDP -- or $8.9 billion. We are on track to eliminate it completely no later than the fiscal year 1998-99, with the first balanced budget in three decades.

Canada now enjoys the best fiscal health among the nations of the G-7. We measure our deficit in accordance with the strictest accounting principles. Most countries -- including the U.K., France and the United States -- use a different measurement, one of borrowing requirements.

Using this measurement, in 1996-97, we recorded a financial surplus -- the only G-7 country to do so. This meant that, for the first time in 27 years, it was not necessary for the Government of Canada to borrow new money to pay for programs or cover interest costs.

And this year we have already started to pay down our marketable debt.

We are proud of the work we have done restore order to our public finances. It would not have been possible without the support and sacrifice of Canadians.

But the job is not over. We must remain vigilant. We must never again allow our country to fall into the fiscal mess it was in four short years ago.

That is the commitment Canadians want. That is the commitment our government has given them.

Now Canadians are enjoying the benefits from getting our fiscal house in order. Now we can invest in the areas that will make our country stronger in the 21st Century. And our lower deficit has triggered lower interest rates which, in turn, have strengthened economic growth and boosted job creation.

Our interest rates are now at their lowest sustained levels in decades. Consumer confidence is at its highest level in more than eight years. Business confidence is at record levels. Business investment has surged.

In the second quarter of 1997, the economy grew at an annual rate of almost 5 per cent. As a result, the pace of job creation is rapidly picking up. Since the beginning of this year, 279,000 new jobs have been created, almost all in the private sector. And every region of the country has been touched by this trend.

Looking ahead, economists now say that over the next two years, Canada will have the strongest back-to-back growth of any G-7 country. Stronger than Japan. Stronger than Germany. Stronger than the United States.

The restoration of our economy has also caught the attention of international organizations who make it their business to rate national economies. The World Economic Forum now rates Canada among the five most competitive nations in the world. The Economist ranks Canada third among nearly 60 countries in having the best business climate over the next five years.

Just two weeks ago, the management consulting firm, KPMG, released an important study. It compared the costs of doing business in Canada, the United States and five European countries -- including Britain. Overall, they ranked Canada the least expensive. In fact, the cost of doing business in Canada is over 5 per cent cheaper than in the United States for the 8 manufacturing sectors compared.

The same report also listed the top twenty cities for doing business in these countries -- seventeen of them were Canadian.

In short, ladies and gentlemen, Canada is more ready than ever to do business -- with the United Kingdom and the world.

The Canada-UK commercial relationship is by every measure the most extensive Canada has in Europe. Our bilateral trade in goods and services exceeded $15.0 billion in 1996. And we have invested in each other's economies to the tune of over $30.0 billion.

Nearly 5,000 foreign firms have investments in Canada -- 650 of which are from the United Kingdom. Not to appear greedy, but we want more. We need more. Canada needs more expertise, technology and investment to maintain our prosperity. We welcome new UK firms to join those that have already chosen Canada. We welcome you to come and share in our possibilities and the returns.

Ladies and gentlemen, I conclude my remarks by issuing a challenge to the Canada-UK Chamber of Commerce. Governments can do only so much only do so much to encourage trade and investment. Prime Minister Blair and I have shown our resolve with the Joint Declaration. And our government is doing its best to make Canada attractive for trade and investment.

I challenge you to talk up what Britain has to offer Canada and what Canada has to offer Britain. My colleagues will be over here more often as we move ahead with the work program of the Joint Declaration. If they can be of assistance in getting out the good word about Canada, please invite them to your luncheons. They are great sales people. I also welcome your views on what more the Canadian and British government can do to increase business between our nations and jointly in world markets. I understand that the Canada-UK Chamber is located in the same building as our High Commission. This should boost our Team Canada effort.

There is also a small thing you can do that could have a big effect on Canada-UK relations. Canada. Hire a young Canadian as an intern. Many of our young people are eager to learn the ways of international trade and investment. Many would jump at the chance to train on-the-job here in Britain. They would bring a lot of energy and ambition to you companies. And you would learn more about the possibilities of Canada in the bargain.

I invite all of you to call up my friend Roy MacLaren at the Canadian High Commission. He will be happy to help you.

Ladies and gentlemen, the connection that was forged 500 years ago is strong and deep as we head into a new millennium. Not as New World and Old. Not as Colony and Empire. But as partners with shared values and world views.

It is as vibrant and exciting as the Canadian talents that now dominate your prestigious Booker Awards. It is as present and visible as the proud Canada House in Trafalgar Square which will reopen in May.

It owes as much to a future of common hopes and dreams for our people -- for all of humanity -- as it does to the past.

We have come a long way together. And I believe that our best days lie ahead.