info suisse Spring 2016
International Affairs
May 2016

Canada Swiss Bilateral Trade

(Taras Kulish)
Canada and Switzerland enjoy close bilateral relations, based upon shared values and a commitment to democracy and human rights. I lived in Switzerland for three years and came to understand that the Swiss love Canada and Canadian passions like hockey, skiing, local wine, mountains and lakes. Whatever the reasons on a human level, the result is that Canada and Switzerland enjoy a strong bilateral trade relationship.

Before living in Switzerland from 2011 to 2014, I knew some wonderful Swiss people however I was largely unaware of this important commercial relationship between the two nations. This all changed when I met Madame Roberta Santi, Canadian Ambassador to Switzerland, in Berne at the 2011 Holiday Party of the Canada-Swiss Chamber of Commerce, where she spoke passionately about the relationship.

Swiss and Canadian diplomats work within the parameters of treaties to grow their nations’ business interests. The free trade agreement (C-EFTA) between Canada and the European Free Trade Association (EFTA) countries of Iceland, Liechtenstein, Norway and Switzerland was signed in Davos on January 26, 2008. C-EFTA is a goods-only agreement emphasising tariff elimination which covers trade in industrial products, including fish, other marine products, and processed agricultural products and now includes a Canada/Swiss Bilateral Agreement on basic agriculture products.

When C-EFTA was announced, then Minister of International Trade and Minister, the Honourable Stockwell Day said, “This is Canada’s first free trade agreement with European countries. By engaging more and more European partners, we can provide Canadian exporters with greater access to a growing list of the wealthiest and most sophisticated economies in the world.

C-EFTA addresses certain key points important to Canada and Switzerland:
  • Strengthening the special bonds of friendship and co-operation among nations;
  • Establishment of a free trade area through the removal of trade barriers;
  • Enhancing the competitiveness of firms in global markets; and
  • Aiming to create new employment opportunities and improve working conditions and living standards in their respective territories. 
The elimination of barriers to trade and duty-free access to industrial products of each other’s markets boosted trade flows between Canada and Switzerland. Dr. Beat Nobs, Ambassador of Switzerland to Canada, tells Info Swiss that “2015 was another good year for our economic relationship with Canada: Bilateral trade is worth around 5 billion CHF and will shortly be boosted by two large deals: the purchase of 30 Bombardier C-Series planes by SWISS Int. Airlines and the order of 59 double-deck Bombardier trains by Swiss Federal Railways. On the investment side, I am pleased to note a strong Swiss presence in Canada with a capital stock of about 41 billion CHF (Swiss numbers!), which makes Switzerland the 5th largest investor in Canada. Swiss companies employ more than 32,000 people in Canada”.

The Embassy of Canada to Switzerland states that Swiss merchandise exports into Canada ($4.4 billion CAD in 2015) included pharmaceutical products, organic chemicals, scientific and precision instruments, machinery and equipment, as well as clocks, watches and parts.

Ambassador Jennifer MacIntyre, who succeeded Ambassador Santi tells Info Swiss: “Our businesspeople work together in a number of sectors, such as life sciences, financial technologies, ICT and agri-food.

The potential to diversify and strengthen these ties is enormous. For example, both of our countries are committed to addressing climate change and investing in clean and sustainable technologies. This is an area of high priority my team and me. Innovation is another key focus. Switzerland is ranked year after year as the most innovative country in the world, and we think the Canadian innovation ecosystem will benefit from closer partnership with Switzerland. Of course, we also continue to reach out to Swiss companies looking to expand abroad to demonstrate why choosing Canada is the best investment decision for them. Last November, representatives from nine largest Canadian cities came to Zurich to meet with potential Swiss investors. The success of the event was beyond my expectations. We are planning to organize more of such investment-attraction initiatives. As you can see, there are many exciting areas and new avenues for our bilateral cooperation.

The Honorable Chrystia Freeland, Canada’s Minister of International Trade in the new Trudeau government, tells Info Swiss: “During January’s World Economic Forum in Davos, the Prime Minister and I underscored the importance of revitalising our bilateral commercial relationship. It was a very valuable opportunity to continue highlighting Canada as an excellent place for Swiss companies to invest and do business.

On February 12, 2016 the EFTA Council Chair announced the formal exploratory process with Canada regarding a possible update of the C-ETFA will begin. The scope of the C-EFTA could expand into areas such as services, investment, and intellectual property.

The C-EFTA is important for bilateral trade since it confers a distinct competitive advantage to both Canadian and Swiss businesses to expand commercial ties across the pond. Ambassador MacIntyre says, “I am very much looking forward to develop our partnerships further in 2016.” And so are we at Info Swiss!

By Taras Kulish, B.C.L., LL.B; Senior IP Lawyer at Steinberg Title Hope & Israel LLP
SCCC Corporate Members
  • Rolex Canada Ltd.
  • Zurich Canada
  • Habib Canadian Bank  (Subsidiary of Habib Bank AG Zurich)
  • Custom Spring Corporate
  • Lette LLP
  • Swiss Business Hub
  • Roche Canada
  • Swissmar Ltd.
  • Hilti (Canada) Corporation
  • Endress + Hauser Canada Ltd
  • Switzerland Tourism
  • Adecco Employment Services Limited
  • Glencore
  • Lindt & Spruengli (Canada) Inc.