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Ministers' Message

The Honourable Stockwell Day Minister for International Trade	The Honourable Lawrence Cannon Minister of Foreign Affairs

As Ministers of the Department of Foreign Affairs and International Trade (DFAIT), we are pleased to present the 2008-2009 Departmental Performance Report-a results-oriented overview of DFAIT's accomplishments over the last year.

In an interconnected world, Canada's future is highly dependent on what happens beyond our borders. From dramatic changes in geopolitical realities, to evolving issues around security, health, the environment and energy, to the ongoing pressures on Canada's business community to compete, trade and invest in a world constrained by the current economic downturn, the services DFAIT provides to Canadians, at home and abroad, are more important than ever.

In 2008-2009, DFAIT made enormous strides in its mission to serve Canadians and advance Canada's interests in the world.

Perhaps the most far-reaching challenge facing DFAIT during the year was the worldwide economic slowdown. In the face of this challenge, Canada boldly continued an aggressive strategy to open doors for Canadian businesses and investors in global markets. Under DFAIT's leadership, Canada successfully negotiated or launched a number of free trade agreements, foreign investment promotion and protection agreements, and science and technology cooperation agreements to help Canadians participate in global commerce opportunities and compete around the world. As part of ongoing efforts to implement Canada's Global Commerce Strategy, the department opened new trade offices in Brazil, China, India and Mongolia to build on commercial connections in these key markets and lay the foundation for tomorrow's jobs and prosperity.

In a volatile world, security and stability continue to be at the forefront of DFAIT's work, and Canada's ongoing participation in Afghanistan was a key priority. While serious challenges remain, Canadians can take great pride in our many military, humanitarian and diplomatic contributions to this NATO-led mission. In Africa, the department continued to support peacekeeping and peacebuilding efforts, including in Sudan, where DFAIT supported 25 projects. In the Middle East, DFAIT worked in support of peace and its assistance was directed at building the capacity of security institutions.

The department also played a leadership role in coordinating Canada's responses to economic, financial and food crises around the world, including humanitarian support and food aid in Africa, and responses to natural disasters in Burma, Haiti and China. Over the latter part of 2008-2009, DFAIT concentrated on a highly strategic, whole-of-government approach to handling these issues, starting with preparation for, and active participation in, two related G20 leaders summits.

Closer to home, the department played a central role in establishing early, constructive relationships with the incoming Obama administration. In the Americas as a whole, the department continued to advance Canada's vision for a more secure, democratic and prosperous hemisphere.

DFAIT is also leading the development of Canada's Arctic policy. As an Arctic nation and an Arctic power, Canada views the North as a central component of its past, present and future. Through our robust Arctic foreign policy we are affirming our leadership, stewardship and ownership in the region, including by opening a dedicated Canadian International Centre for the Arctic Region in Oslo, Norway, to help promote Canadian interests and influence key partners to better understand emerging issues in this critical area.

In 2008-2009, DFAIT continued to provide extensive consular services worldwide (8.5 million requests for service), while leading the Government of Canada's response to major international disasters. Meanwhile, the department expanded the scope of its consular services and emergency management, and increased the number of points of service worldwide in response to client demand.

Last fiscal year, Passport Canada met a high level of demand for travel documents, issuing more than four million passports. It also made strides to strengthen its services through greater use of state-of-the-art technology and by expanding its service network.

To support all of this work, Canada's representation abroad has increased significantly in recent years. Meanwhile, traditional diplomacy has expanded to include new methods of interaction, new and strengthened collaborations with partners and enhanced communications using new media.

This is the environment in which DFAIT operates, and it provides a great opportunity to continue putting the department's global expertise to use for the benefit of Canadians and others in the international community. There is no doubt that constant, and sometimes very sudden, change is a defining feature of the world today. But as the results described in this document clearly show, DFAIT is adapting, and adapting well, to this ever-evolving world.

We invite all Canadians to learn more about the department's work by reading this report and by exploring the department's extensive website (www.international.gc.ca/international/index.aspx?lang=eng).

Together with partners and stakeholders in Canada and abroad, DFAIT is strengthening Canada's voice in the world and providing the services that Canadians need to succeed in a challenging global environment.

Executive Summary

DFAIT is among the most complex departments in the Government of Canada, responsible for the conduct of Canada's international affairs, including global trade and commerce. The scope of its mandate and the complexity of its activities require two representatives in the federal Cabinet: Minister of Foreign Affairs Lawrence Cannon and Minister for International Trade Stockwell Day. Correspondingly, DFAIT also has two deputy ministers: Leonard J. Edwards (Foreign Affairs), and Louis Lévesque (International Trade).

DFAIT is the leader across government in shaping Canada's responses to international issues and events, managing bilateral and multilateral relationships and delivering international programs. The department supports an extensive program of activities by its ministers, as well as those of other departments, to build stronger relations with their counterparts around the world. This work allows Canada to advance its economic and political interests, to be more engaged in the international community and to assist Canadians working and living abroad.

The department manages Canada's network of missions abroad, which provides the infrastructure that enables the international work of 30 partner departments and agencies. In 2008-2009, Canada's international platform consisted of over 260 points of service worldwide, including 173 missions in 110 countries. The department had more than 10,000 employees located at headquarters in Ottawa, regional offices across Canada and missions abroad. Its activities were a blend of policy, program and services to Canadians. The variety and range of its activities in 2008-2009 are demonstrated in this report-from engaging in and concluding ground-breaking trade negotiations with various countries worldwide, to brokering a joint border management plan between Afghanistan and Pakistan, to helping to evacuate Canadians from Gaza.

The department has three strategic outcomes (i.e. Canada's International Agenda, International Services for Canadians, and Canada's International Platform).The first strategic outcome is about the practice of Canadian advocacy and diplomacy while reflecting the country's interests and values. The second outcome comprises provision of international commercial, consular and passport services to Canadians.The third refers to the department's management of missions abroad on behalf of the Government of Canada.

1. Canada's International Agenda

Pursuing economic opportunities with a focus on growing/emerging markets: Consistent with the government's overall focus on the economy, DFAIT's top priority in 2008-2009 was pursuing economic opportunities for Canadians, including development of policy responses to the economic crisis; supporting the Prime Minister's participation in G8 and G20 meetings; and sharing Canada's experiences in developing a sound and stable financial system.

DFAIT continued to implement the government's Global Commerce Strategy, pursuing an ambitious bilateral agenda to secure competitive terms of access for Canadian businesses and to attract and encourage global investment. This included tabling legislation to implement new free trade agreements (FTAs) with Peru, Colombia and the European Free Trade Association, concluding FTA negotiations with Jordan, launching FTA negotiations with Panama, announcing exploratory trade talks with India, and completing a joint economic study with the European Union to lay the foundation for the launch of negotiations on a comprehensive economic and trade agreement.

The department also worked closely with provinces, territories and municipalities as well as with American interlocutors to ensure that goods and services continued to flow freely across the Canada-United States border, notably by advocating for access for Canadian businesses affected by the «Buy American» provisions of the United States Recovery and Reinvestment Act.

With Asia Pacific economies performing well despite the economic crisis and with Asian countries increasingly critical partners in terms of trade, global financial stability, environment and health, Canada has acted to deepen economic and political contacts, notably in China and India.

Canada-United States relationship: Given the two countries' high degree of economic integration, the United States remains Canada's most important economic and security partner, with some $2 billion in goods and services crossing the border daily. The inauguration of President Obama in January 2009 created a unique opportunity for Canada to renew its engagement with the United States. His visit to Canada the next month-his first trip as president to a foreign state-reinvigorated the bilateral dialogue and set the stage for deepened discourse on economic growth and restructuring, climate change, energy security, the Arctic and international security. DFAIT planned and implemented a comprehensive strategy to engage the new administration, and provided support for some 25 visits by Canadian government ministers to the United States.

Canada's mission in Afghanistan is designed to protect the security of Canada and its allies against the threat of future terrorism. Canada is helping to lay the foundation for a strong and stable central government that can build national unity and improve the lives of the Afghan people. DFAIT worked closely with federal partners to establish benchmarks pertaining to the Government of Canada's six priorities in Afghanistan. Three of these priorities fall within the department's purview: playing a leadership role in development of the Afghan National Security Forces in Kandahar; border security and dialogue between Afghanistan and Pakistan; and political reconciliation. Regarding the first priority, the department made progress against the benchmarks established for training and mentoring of the Afghan National Army and the Afghan National Police. DFAIT disbursed over $42 million for security sector development in Afghanistan through the Global Peace and Security Fund and spent $21 million on police, corrections and justice programming. Canada also made important progress against the benchmarks established for fostering border security and dialogue between Afghanistan and Pakistan, bringing officials from those two countries together in Dubai, where they adopted a joint border management plan. Regarding benchmarks for the third priority, Canada made progress in facilitating Afghan-led efforts toward political reconciliation, including support for governance institutions. In addition, Canada's efforts contributed to adoption of NATO's political-military plan for Afghanistan.

Americas: Canada brings to the Americas a vision based on three core objectives: strengthening support for democratic governance, enhancing the prosperity of Canadians and other citizens of the Americas, and building a safe and secure hemisphere. To reinforce the Canadian values of open, democratic societies and market-based economies, DFAIT helped assert Canada's leadership role in the fifth Summit of the Americas, the Organization of American States General Assembly, and the APEC (Asia-Pacific Economic Cooperation) meeting in Peru. DFAIT's work in the Americas led to new initiatives, including the Emerging Leaders in the Americas Program (scholarships for exchanges and research) and activities related to counterterrorism and anti-crime capacity building.

Other global challenges: Canada has been a major player in encouraging international cooperation on issues related to the Arctic. In 2008-2009, DFAIT coordinated Canadian participation in the Arctic Council foreign ministers meeting, which endorsed the Tromsø Declaration that will guide the work of the Arctic Council over the next two years. At the meeting, DFAIT announced the launch of a Canadian International Centre for the Arctic Region, to be based in Oslo, Norway.

DFAIT led development of federal responses to crises related to food and natural disasters around the world, supporting regional development banks, providing humanitarian assistance after three major international disasters (Burma, Haiti, China), and disbursing $65 million for humanitarian assistance and food aid in Africa.

The department supported Canada's diplomatic efforts in the Middle East, reaffirming Canada's position on the need for a two-state solution and Israel's right to defend itself. DFAIT actively promoted Canada's campaign for a two-year term on the United Nations Security Council, and successfully led the United Nations resolution on the human rights situation in Iran. It also worked with federal partners to improve the effectiveness of the International Assistance Envelope, and supported Canada's work in fragile states, such as Haiti and Sudan. Finally, DFAIT continued to promote freedom, democracy, human rights and the rule of law through the UN and other multilateral forums in order to address critical situations and major destabilizing events in countries like Belarus, Burma, Georgia, Iran and Zimbabwe.

2. International Services for Canadians

Passport services: Passport Canada is responsible for issuing secure travel documents to Canadians, facilitating travel and contributing to international and domestic security. There were 4,375,278 passports issued in 2008-2009. Overall, 98.7 percent of completed applications were processed within service standards.

Efforts to streamline the process and improve service delivery in 2008-2009 proved successful. The proportion of applicants using the simplified renewal process grew to 40 percent, and satisfaction with overall service increased from 89 percent in 2007-2008 to 96 percent.

Passport Canada was well prepared to meet demand flowing from U.S. implementation of passport requirements for land and water entry that took effect on June 1, 2009. During the first stage of implementation of the U.S. Western Hemisphere Travel Initiative (WHTI) in the summer of 2007, the turnaround time for passport applications by mail in Canada climbed to approximately 60 days. By comparison, the turnaround time during the second stage of WHTI implementation in June 2009 was 12 days. Efficiency gains achieved through initiatives such as the simplified passport renewal process allowed for a $29 million reinvestment in internal capacity to improve service delivery. By implementing changes in postal handling and other initiatives, Passport Canada was able to offset an additional $12 million in program management costs.

Commercial services: Given the continued dramatic growth of emerging markets around the world, DFAIT established new Trade Commissioner Service (TCS) offices in China, India, Mongolia and Brazil, as well as new regional offices in Canada. These new offices will help Canadian businesses and investors seize emerging commercial opportunities in these markets and many others around the world. In 2008-2009, the department delivered over 33,000 key services to business and partner clients. This represents a 3.5 percent increase from the previous fiscal year. The department also provided services to close to 12,000 Canadian and partner clients, an increase of 2.5 percent from 2007-2008. The department has posted more than 600 market reports on the Virtual Trade Commissioner website.

The TCS network currently lists over 43,000 Canadian companies in its business contact management system, in addition to more than 6,000 active partner organizations. The economic downturn has made attraction of investment particularly challenging, but DFAIT continued to make concerted efforts on this front. The department also developed approaches for using the Vancouver 2010 Winter Games as a platform to advance Canada's commercial outreach in priority markets in Asia, Europe and North America.

Consular services: Several factors have had significant consequences for the consular program, including the changing profile of Canadian travellers, their increased travel to remote and dangerous destinations, their pursuit of business in areas of the world that involve heightened political and economic risks, and the growing impact of natural disasters worldwide.

In 2007-2008, the most recent year for which statistics are available, Canadians took close to 50 million international trips. In addition, an estimated 2.5 million Canadians live abroad. Over the last five years, demand for consular services has increased by 32 percent. In response, the Government of Canada committed to additional investments ($18 million per year), beginning in the 2008 federal Budget, to strengthen consular services.

In 2008-2009, DFAIT expanded its consular program and added three points of consular service (bringing the total to over 260) in order to support the increased number of Canadians abroad. The department established a new Consular Services and Emergency Management Branch to better prepare Canadians for travel and to assist them abroad. During the fiscal year, more than 8.5 million consular services were accessed, through phone calls, visits to the website, correspondence and departmental publications. Some 1,600 Canadians were assisted in more than 26 crises or emergencies abroad. A good deal has been done over the past year to improve consular services, and the department will continue to focus on making improvements in the coming year, particularly through greater coordination of these services at missions abroad. Nevertheless, challenges remain in a world in which personal security is an increasingly important consideration for Canadians abroad.

3. Canada's International Platform

DFAIT is mandated to provide common services for the Government of Canada's international program. Common services consist of the infrastructure, staff and services required to enable Canada's representation abroad. The International Platform Branch, established in April 2008, manages Canada's network of missions abroad. Canada's presence abroad includes 30 federal departments, agencies, Crown corporations and provincial governments, delivering a vast array of programs. As of November 2008, Canada's network abroad was made up of 7,305 Canada-based staff and locally engaged staff employed in 173 missions in 110 countries as well as in 17 regional offices across Canada.

In addition to delivering common services abroad, the International Platform Branch specializes in identifying efficiencies to produce savings that can be reinvested in other departmental programs. In 2008-2009, the International Platform Branch's contribution to the DFAIT reallocation priority was $35.4 million. In 2009-2010, the Branch's contribution will reach $53.8 million. Examples of efficiencies achieved include streamlined governance of common services; application of the common services model (a benchmarking tool for determining appropriate common service resources at missions); development and implementation of measurable service standards; development of new space standards for chanceries; development of regional services centres for the Europe, Middle East and Africa, Asia-Pacific and Americas regions; and encouragement of greater use of e-collaboration and video-conferencing.

Transformation

In keeping with the results of its 2007 strategic review, the department continued to undergo significant transformation for the purpose of reinvigorating its structure and operations, and creating a modern, integrated foreign and trade ministry. To this end, DFAIT has streamlined its governance structure, in alignment with its Program Activity Architecture; implemented multi-year integrated planning; established the Geographic Group and the International Platform Branch to ensure greater cohesion and coherence of activities; created the office of Chief Financial Officer, the Departmental Audit Committee and the position of Chief Audit Executive to enhance accountability; established a strategic human resources plan that expands foreign-language training and introduces new approaches to spousal employment abroad; and targeted commercial strategies to priority markets and sectors, in alignment with the government's Global Commerce Strategy. The department developed a plan to increase the number of staff abroad by 400, with a target date of 2011-2012. DFAIT's internal reallocation to fund the deployment abroad includes a reduction in headquarters staff over five years. Reductions made in year one (2007-2008) and year two (2008-2009) represented 160 full-time equivalents.

Financial Summary

In 2008-2009, DFAIT spent a total of $3,193.3 million. As the table below indicates, DFAIT's budget is divided into two components: Foreign Affairs and International Trade; and Export Development Canada (EDC) (the Canada Account).

Financial Resources ($ millions)
2008-2009	Planned Spending	Total Authorities	Actual Spending
Total for DFAIT	2,371.6	18,566.4	3,193.3
Export Development Canada (Canada Account)	92.4	15,988.5	693.7
Foreign Affairs and International Trade	2,279.2	2,577.9	2,499.6

EDC is a Crown corporation in DFAIT's portfolio that provides financing and insurance solutions to Canadian companies. Under the Export Development Act, the Minister for International Trade (with the concurrence of the Minister of Finance) may authorize EDC to undertake loans that go beyond its normal risk parameters but that are deemed by the government to be in the national interest. Such loans are facilitated through the Canada Account. EDC administers the Canada Account, and DFAIT is responsible for reporting accounting transactions made between the government and EDC that affect the Canada Account. These transactions have no impact on DFAIT spending, since they are separately funded through legislated statutes.

The maximum amount available from the Canada Account was increased from $13,000 million to $20,000 million (slightly over $4,000 million in spending was cumulative up to and including fiscal year 2008-2009). On the EDC line in the table above, total authorities refer to the maximum amount available in 2008-2009 from which loans and contingent liabilities could be made from the Canada Account. On the same line, actual spending refers to loans made from the Canada Account during the fiscal year, most of which were unplanned disbursements in response to the economic downturn.

With respect to the line in the table above concerning the Foreign Affairs and International Trade component, while there was a variance between planned and actual spending, the department remained within its total authorities granted by Parliament. The variance occurred because of the following unforeseen expenditures, which are not included in the planned spending figure but are included in total authorities and actual spending:

• funding to compensate for foreign currency losses ($52.9 million);
• funding for the embassy in Kabul, Afghanistan ($33.2 million);
• net voted revenues authorized by Parliament for the department to respend revenues collected during the year ($25.3 million);
• reinvestment of revenues from the sale of real property abroad ($24.1 million); and
• numerous smaller amounts, totalling about $163.2 million.

DFAIT's 2008-2009 actual spending was allocated by strategic outcome as follows:

DFAIT Spending by Strategic Outcome

About 50 percent ($1,248.5 million) of the department's actual spending ($2,499.6 million) was related to the practice of diplomacy and advocacy in support of Canadian interests and values abroad. This included $497.2 million in assessed contributions to international organizations such as the United Nations Organization, including its peacekeeping operations, and the World Health Organization. It also included $166.5 million for the Global Peace and Security Fund as well as $115.5 million for the G8 Global Partnership Program.

About 14 percent ($353.3 million) of actual spending was related to providing international services to Canadians and to Canadian business. This included over $55 million spent on the Global Commerce Strategy, $18 million toward fulfilling the mandate of the new Consular Services and Emergency Management Branch, and over $44 million (net) spent by Passport Canada.

The remaining 36 percent ($897.8 million) was spent on support for the international platform used by DFAIT and other departments and agencies. This included $187 million spent at headquarters in support of Canada's network of missions abroad, and $415 million spent at missions abroad to cover expenditures related to common services. Expenditures related to internal services amounted to over $170 million, and were allocated against the three strategic outcomes.

Like other federal departments and agencies, the department faces budgetary constraints. Since 2004, DFAIT has made cumulative contributions to government-wide reallocation exercises of over $253.0 million ($131.0 million in 2008-2009).

Excluding the 2006-2007 one-time authorities and spending, DFAIT's spending has on average increased by 7 percent year over year. This growth in spending is mainly related to an increase in funding for the following initiatives:

• the Global Peace and Security Fund;
• the G8 Global Partnership Program;
• implementation of the Global Commerce Strategy;
• work related to the Canada-United States Softwood Lumber Agreement; and
• transfers received from federal partners in support of their staff working at Canada's missions abroad.

Conclusion

In 2008-2009, DFAIT made a constructive contribution to global affairs and advanced Canadian interests internationally, as shown by the principal accomplishments noted in this summary. It strengthened commercial ties with emerging and priority markets by establishing several new free trade and other agreements with a range of countries worldwide and by increasing commercial service delivery capacity in these markets. It established constructive relations with the new United States administration, and advanced key foreign policy and commercial objectives in the priority area of the Americas. It made progress against the government's benchmarks related to Canada's contribution to the NATO mission in Afghanistan. And it made headway in modernizing and transforming the department's overall operations.

Starting with the 2008 Budget, the Government of Canada committed to further investments ($18 million per year) to strengthen delivery of consular services. DFAIT clients noted favourable overall levels of satisfaction in various feedback surveys during the fiscal year pertaining to consular, commercial and passport services rendered. With regard to Canada's international platform, DFAIT also received favourable responses from client surveys, including from its partners operating at missions abroad. The department generated financial efficiencies in delivery of passport services and in management of Canada's international platform, efficiencies that are being reinvested in other departmental programs.

Section 1: Departmental Overview

1.1. Overview Information

This Departmental Performance Report (DPR) provides Canadians with information on what the department achieved in 2008-2009 by comparing actual results with previously stated plans and priorities (see the 2008-2009 Report on Plans and Priorities, available at www.tbs-sct.gc.ca/rpp/2008-2009/inst/ext/ext01-eng.asp). At the same time, this report includes information about DFAIT's expected medium-term results and long-term results (see the section on Program Activity Architecture below).

1.1.1. Raison d'être

As the federal government's centre of expertise on foreign affairs and international trade, the department promotes Canada's interests, the security and prosperity of Canadians, and advances the Canadian values of freedom, democracy, human rights and the rule of law. This department provides ongoing benefits to Canadians by:

• leading a government-wide approach to formulating and implementing policies on foreign affairs and international trade, as well as related programs;
• concentrating on the department's core business in order to advance Canada's global agenda as it relates to the key issues of peace and security, trade and investment, and international law and human rights, while making full use of the department's geographic expertise worldwide;
• promoting international trade and commerce through initiatives such as negotiation of agreements to open and/or expand markets, facilitation of two-way trade and investment, and encouragement of innovation by means of international partnerships for science and technology commercialization;
• offering international commercial, consular and passport services as well as timely and practical information on international issues and travel, enabling Canadians to participate in the international community; and
• managing Canada's missions worldwide (the Government of Canada's international platform) from a government-wide perspective.

1.1.2. Responsibilities

The founding legislation is the Department of Foreign Affairs and International Trade Act, RSC 1985, c. E-22, which lists the department's legislated responsibilities (www.dfait-maeci.gc.ca/department/mandate-en.asp).

The Government of Canada has a formal presence in most of the world's independent states, providing over 260 points of service worldwide. Canada's network of 173 missions abroad integrates and coordinates the government's international activities. Mission activities include advocating Canadian policies and perspectives internationally; building and maintaining relationships to raise Canada's profile and help advance advocacy of Canadian objectives; interpreting local views and information in terms of what they mean to Canada and Canadians; managing Canada's international business development; providing consular and passport services; and supplying infrastructure and services to enable the international operations of federal and other partners working at missions abroad.

The department also serves the foreign diplomatic community accredited to Canada. At present, there are over 8,000 foreign representatives and accredited members of their families in Canada.

The department's regional offices in Canada provide international commercial services to Canadian businesses. These services include export strategies, foreign market intelligence, and information on trade fairs, missions and other events. In addition, Passport Canada has 33 passport-issuing offices across Canada. Passport service is also available at 141 Service Canada offices and 56 Canada Post outlets.

1.1.3. Strategic Outcomes

DFAIT's Program Activity Architecture (PAA) clearly identifies the department's strategic direction by listing its three complementary strategic outcomes (i.e. the long-term, enduring benefits to Canadians that the department strives to achieve). The first strategic outcome is about the practice of Canadian advocacy and diplomacy while reflecting the country's interests and values. The second is about the provision of international commercial, consular and passport services to Canadians. The third is about the department's management of missions abroad on behalf of the Government of Canada. Together, the strategic outcomes reflect the department's leadership role in formulating, coordinating and carrying out the federal government's foreign and trade policies and programs. The department's strategic outcomes provide the foundation for all its activities.

Cascading downward in a logical manner from the three strategic outcomes in the PAA are the department's seven supporting program activities.

In carrying out International Policy Advice and Integration, the department provides strategic direction, intelligence and advice on foreign policy and economic issues; researches and analyzes foreign and trade policy issues, drawing on input from across the department as well as from federal partners; develops policies and programs to address those issues; and ensures coherence, integration and coordination of foreign and trade policies and programs across government.

In undertaking Diplomacy and Advocacy, DFAIT engages Canadian stakeholders and partners as well as foreign governments and international players; raises awareness and understanding of Canada's policies, interests and values as they pertain to the government's international agenda; and delivers programs on Canada's behalf to address specific international issues.

In relation to International Commerce, the department works to expand the participation of Canadian business in world markets and to increase the interaction of Canadian entrepreneurs with global business partners; and promotes Canada as a competitive location and partner for investment, innovation and value-added production.

With respect to Consular Affairs, DFAIT provides Canadians with information and advice on safe travel to foreign countries; and helps Canadians abroad to handle trouble or emergencies.

Passport Canada-a special operating agency-focuses on management and delivery of passport services. It is responsible for the issuance, revocation, refusal, recovery and use of Canadian passports.

With respect to Canada's International Platform: Support at Headquarters, the department manages and delivers common services to all federal departments and partners with representation at Canada's missions abroad.

With regard to Canada's International Platform: Support at Missions Abroad, DFAIT ensures that common services are in place at missions and coordinates them on site to support the international operations of the entire Government of Canada as well as the operations of other partners with representation at the missions.

1.1.4. Program Activity Architecture

Strategic Outcome 1: Canada's International Agenda	Strategic Outcome 2: International Services for Canadians	Strategic Outcome 3: Canada's International Platform
The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.	Canadians are satisfied with commercial, consular and passport services.	The Department of Foreign Affairs and International Trade maintains a mission network of infrastructure and services to enable the Government of Canada to achieve its international priorities.
Program Activity 1: International Policy Advice and Integration	Program Activity 3: International Commerce	Program Activity 6: Canada's International Platform:Support at Headquarters
Program Activity 2: Diplomacy and Advocacy	Program Activity 4: Consular Affairs	Program Activity 7: Canada's International Platform: Support at Missions Abroad
	Program Activity 5: Passport Canada
Program Activity: Internal Services Without Internal Services, the department could not carry out its mandated functions or advance its strategic outcomes. Treasury Board of Canada Secretariat now considers Internal Services to be a program activity and divides those services into three broad categories: governance and management support; resource management services; and asset management.

1.1.5. Operating Environment and Risk Analysis

The highly volatile international environment in which the department operates means that its activities and operations are constantly affected by unpredictable global trends and events. A major objective of the department's ongoing transformation process is to ensure that it can be as flexible as possible in addressing sudden changes in its priorities as a result of external challenges.

Risks may be defined as the effect of uncertainty on the achievement of an organization's objectives and outcomes. Such uncertainty can be proactively addressed by identifying potential events and estimating their likelihood and impact. However, it should be noted that mitigation, especially in dealing with externally oriented risks, is usually more complicated to achieve, particularly in the short term. The ongoing integration of risk management, planning and performance functions at DFAIT assists in addressing such challenges.

Six of the 15 strategic risks identified by the department in its 2008-2009 Report on Plans and Priorities had a more important influence on its priorities and expected results. These six risks are economic conditions, unanticipated external policy shifts, hostile actions, international instability, catastrophic disasters and human capital.

Economic conditions and unanticipated external policy shifts: Without question, the main external factor for governments in all developed countries in 2008-2009 was posed by the global economic crisis, which has resulted in a significant reorientation in priorities and programs. The department's 2008-2009 Report on Plans and Priorities referred to rising worldwide concerns about the health of the global economy, the state of financial markets and the threat of recession. In addition, the global economic downturn has generated concerns about growing protectionism in the United States (e.g. the "Buy American" requirements of the American Recovery and Reinvestment Act of 2009) and in many other countries.

Integration and coordination of the Government of Canada response to hostile actions, international instability and catastrophic disasters affecting Canadians abroad: There continues to be concern in Canada and the international community about safety and security issues, international pandemics, the environment, international crime and terrorism, and crisis or instability in global hot spots. These issues have required integrated and coordinated responses from the Government of Canada, led by this department. In addition, more and more Canadians are travelling and living abroad, which places greater demands on the department's consular, passport and emergency management services.

Human capital: The most significant internal risk to the department's activities is related to its management of human resources. DFAIT is a knowledge-based organization, and its success depends on attracting, developing and retaining a highly skilled workforce. Of DFAIT's 10,292 ¹ staff members, 4,990 are Public Service employees, governed by the Public Service Employment Act, and 5,302 are locally engaged staff who work at Canada's missions abroad, subject to local labour laws. The Public Service employees are divided into two groups: rotational and non-rotational.

The table below summarizes the key risks that influenced the department's expected results and priorities, the main mitigation strategies, and the implications for the department's performance.

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¹ This number includes indeterminate and term employees only as of March 31, 2009.

1.1.6. Key Risks That Influenced the Department's Expected Results and Priorities in 2008-2009

Key Risks	Linkages	Mitigation Strategies	Summary of Performance
Economic conditions and unanticipated external policy shifts	Strategic Outcome (SO) 1, 2 Program Activity (PA) 1, 2, 3	Global Commerce Strategy and intelligence from missions	Launched the Global Commerce Strategy and maximized opportunities for Canada in selected markets including developing markets. Developed a whole-of-government Canada-United States engagement strategy endorsed by the Prime Minister. Directed additional resources to address Canada-EU negotiations and to negotiate a positive outcome to the negative implications on the Canadian economy of the "Buy American" requirements of the U.S. stimulus legislation. Directed a whole-of-government engagement strategy to prevent the introduction of a ban on the import of seal hunt products to the European Union.
Integration and coordination of the Government of Canada's response to hostile actions, international instability and catastrophic disasters affecting Canadians abroad	SO 1, 2, 3 PA 1, 2, 4, 5, 7	Robust consular contingency plans and warden networks Standard operating procedures to manage the response to catastrophic natural disasters; ongoing training; use of a crisis module, crisis centre roster and 24/7 Emergency Watch and Response Centre Close monitoring by mission political staff Robust security training and procedures to mitigate hostile actions	Led whole-of-government efforts to resolve kidnappings of Canadians and obtained positive resolutions to the kidnappings of Mellissa Fung, Robert Fowler, Louis Guay, Stephanie Jodoin and Julie Mulligan. Developed a whole-of-government critical incident strategy for civilians deployed in Afghanistan. Supported UN Middle East resolutions that foster peace and do not single out Israel; supported capacity building for Palestinian Authority security institutions. Led whole-of-government response to three major international natural disasters (Burma, Haiti, China) and to 10 moderate scale disasters.
Human capital	SO 1, 2, 3 and Internal Services	2008-2009 Public Service Renewal Action Plan	Developed a strategic human resources plan; hired 167 new employees, exceeding target of 150; doubled Afghanistan staffing; developed a new approach to spousal employment abroad; provided 1,001 DFAIT staff with foreign-language training

The department will continue to identify key risks and monitor the efficacy of its mitigation strategies. DFAIT will also continue to strengthen its integrated risk management function to meet evolving risk exposures and to create tangible improvements in strategic planning, service delivery, policy making, decision making and accountability. With regard to risk management practices, the department will continue to develop guidance and tools to support a balance between accountability and the web of rules and to make sure that employees are ready to take well-informed risks.

1.2. Performance Summary

1.2.1. Performance Assessment Methodology

Each year, DFAIT ensures that its annual planning and evaluation are conducted using logical and transparent processes. First, the department's governance structure is aligned with its Program Activity Architecture (PAA) to ensure logic and coherence in its operations and in its reporting to Parliament (through the Report on Plans and Priorities and the Departmental Performance Report). This process engages all senior managers. Departmental units that report directly to the deputy ministers produce the information required for the two reports, and the governance boards, which are linked to the three strategic outcomes of the department, review the RPP and DPR. In addition, the Departmental Audit Committee, made up largely of experts from outside the department, assesses the quality and credibility of the two reports.

Second, the department conducts business planning and performance reporting in alignment with its PAA.

Third, the department's governance boards review the annual business plans from across the organization. The department uses the plans to guide preparation of performance management agreements for its senior executives and, thereafter, to generate performance agreements for the rest of its staff, in accordance with its Performance Management Program. DFAIT also uses the plans to prepare its yearly RPP.

Fourth, the department assesses its success in carrying out the business plans in its annual DPR, using input from the branches that has been approved by the assistant deputy ministers and assessed against RPP commitments, and using the department's latest Management Accountability Framework (MAF) assessment by Treasury Board Secretariat (TBS) as well as the latest draft of DFAIT's Performance Measurement Framework. The Framework, based on the PAA, specifies long-term outcomes and performance measures for each level of the PAA. (The department is now in the process of finalizing its Performance Measurement Framework in collaboration with TBS.)

The MAF is a government-wide evaluation of departmental management performance, while the Performance Measurement Framework is to be used by this department to assess the performance of its program activities. This Departmental Performance Report makes use of both the latest MAF scores and the draft Framework in describing DFAIT's 2008-2009 performance. In the department's most recent MAF assessment, its ratings improved in seven of the 21 categories rated and did not decline in any area. In fact, DFAIT has doubled its overall scores in the past year alone. The department's MAF ratings over the last three years demonstrate that this organization has improved the way it serves employees, the government as a whole and Canadians. Furthermore, DFAIT's performance compares favourably with that of other departments.

With respect to the performance indicators cited in this Departmental Performance Report, readers should note:

• When the 2008-2009 RPP was being prepared, the department's Performance Measurement Framework was still in development (i.e. not completed or approved). The performance indicators noted in the RPP were identified by DFAIT managers as the most practical and credible at the time. Since then, some indicators have been modified, based on new information from branch managers or on the latest draft of the Performance Measurement Framework.
• In keeping with TBS demands for more concise reporting to Parliament, the department has had to summarize its performance indicators for this report.

This subsection presents a snapshot of DFAIT's overall performance in 2008-2009, by comparing what the department said it would do (from the year's Report on Plans and Priorities) with what it actually did. The first table below (1.2.2) identifies planned and actual resources (human and financial) for the entire department. The second table (1.2.3) provides more detail by breaking information down by program activity, noting for each the planned and actual resources, performance indicators, targets and key accomplishments of the year. It also shows how each program activity aligns with the department's three strategic outcomes as well as with Government of Canada outcomes.

1.2.2. Resource Utilization

2008-2009 Financial Resources			2008-2009 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
2,371.6	18,566.4	3,193.3	12,976	12,622	(354)
Full-time equivalents (FTEs) are different from the number of staff the department has. An FTE is equivalent to a full-time worker, and an FTE of 0.5 is equivalent to one half-time worker.

1.2.3. Performance Summary Table by Strategic Outcome

Strategic Outcome 1: Canada's International Agenda
Performance Indicators	Targets	2008-2009 Performance
Percentage of international partners and institutions that recognize and support key Canadian positions	Specific targets were under development in 2008-2009	Canadian-led United Nations declaration on the human rights situation in Iran passed at the UN General Assembly Successful launch of the Global Commerce Strategy, which included negotiation and conclusion of FTAs and FIPAs with priority countries and regions
Percentage of self-evaluations reporting that Canada's policies and interests have been advanced, either bilaterally or multilaterally		Canadian economic, financial and development interests and policies were reflected in key G20 outcome documents and statements Continued delivery of Canada's Afghan priorities through diplomacy and the delivery of international programming, including working toward the department's transition targets for 2011
2008-2009 ($ millions)
Program Activity	Main Estimates	Planned Spending 2	Total Authorities	Actual Spending	Alignment to Government of Canada Outcomes
International Policy Advice and Integration	135.2	140.0	150.8	150.3	A Safe and Secure World Through International Cooperation
Diplomacy and Advocacy	922.4	1,061.0	1,102.1	1,098.2	A Safe and Secure World Through International Cooperation
Total Strategic Outcome 1	1,057.6	1,201.0	1,252.9	1,248.5
Note: 2007-2008 comparative figures are not available due to implementation of the new Program Activity Architecture effective April 1, 2008. Please refer to the 2007-2008 DPR (www.tbs-sct.gc.ca/dpr-rmr/2007-2008/inst/ext/ext01-eng.asp#section1.3).

Strategic Outcome 2: International Services for Canadians
Performance Indicator	Targets	2008-2009 Performance
Level of satisfaction with consular, passport and commerce services provided by the department	Specific targets were under development in 2008-2009	93% of Canadians who received consular services were satisfied or very satisfied, according to surveys Client satisfaction with passport services up 7 points from the preceding year, to 96%, according to client surveys 2008-2009 client surveys for Trade Commissioner Service (TCS) scheduled for autumn 2009
2008-2009 ($ millions)
Program Activity	Main Estimates	Planned Spending 3	Total Authorities	Actual Spending	Alignment to Government of Canada Outcomes
International Commerce					A Prosperous Canada Through Global Commerce
DFAIT component	228.3	236.6	259.6	258.6
EDC component	92.4	92.4	15,988.5 4	693.7
Total International Commerce	320.7	329.0	16,248.1	952.3
Consular Affairs	37.8	42.9	53.5	49.9	A Safe and Secure World Through International Cooperation
Passport Canada	0.0	0.0	100.8	44.8	A Safe and Secure World Through International Cooperation
Total Strategic Outcome 2	358.5	371.9	16,402.4	1,047.0
Note: 2007-2008 comparative figures are not available due to implementation of the new Program Activity Architecture effective April 1, 2008. Please refer to the 2007-2008 DPR (www.tbs-sct.gc.ca/dpr-rmr/2007-2008/inst/ext/ext01-eng.asp#section1.3).

Strategic Outcome 3: Canada's International Platform
Performance Indicator	Targets	2008-2009 Performance
Level of satisfaction of clients who respond favourably to common services provided	Specific targets were under development in 2008-2009	Satisfaction with the overall quality of service delivery was assessed in a pilot client survey: 69% of the Canada-based staff (CBS) and 72% of the locally engaged staff (LES) were satisfied
2008-2009 ($ millions)
Program Activity	Main Estimates	Planned Spending 5	Total Authorities	Actual Spending	Alignment to Government of Canada Outcomes
Canada's International Platform: Support at Headquarters	259.3	265.8	328.6	317.6	A Safe and Secure World Through International Cooperation A Prosperous Canada Through Global Commerce
Canada's International Platform: Support at Missions Abroad	524.1	532.9	582.5	580.2	A Safe and Secure World Through International Cooperation A Prosperous Canada Through Global Commerce
Total Strategic Outcome 3	783.4	798.7	911.1	897.8
Note: 2007-2008 comparative figures are not available due to implementation of the new Program Activity Architecture effective April 1, 2008. Please refer to the 2007-2008 DPR (www.tbs-sct.gc.ca/dpr-rmr/2007-2008/inst/ext/ext01-eng.asp#section1.3).

In the following table (1.2.4), readers will find the department's 2008-2009 priorities presented slightly differently from the manner in which they are shown in the year's Report on Plans and Priorities. The RPP identifies the priorities related to Afghanistan, North America and the hemisphere, growing/emerging markets and DFAIT's transformation agenda as the year's key priorities (i.e. those that correspond directly to government-wide priorities, particularly those noted in the October 2007 Speech from the Throne). The other priorities in the table below were identified in the RPP as ongoing priorities (i.e. those that reflect important year-over-year work), based on the department's mandate. All priorities identified in the RPP and repeated below link to the three strategic outcomes listed in the department's Program Activity Architecture.

It should also be noted that the 2008-2009 RPP cautioned that, since unforeseen developments at home and abroad can require adjustments to the best-laid plans, the department was prepared to respond and make changes rapidly, as required. The onset of the global economic downturn in late 2008 represented such a development. As a result, this Departmental Performance Report also highlights work done to address that significant issue.

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² Excluding revenues credited to the vote.

³ Excluding revenues credited to the vote.

⁴ Total authorities include an amount of $9,715.2 million that is available from previous years for loans administered by EDC through The Canada Account.

⁵ Excluding revenues credited to the vote.

1.2.4. Contribution of Priorities to Strategic Outcomes Table

Operational Priorities	Status	Linkages and Type of Priority 6, 7
Afghanistan:	Met all expectations in terms of results Disbursed over $42 million for security sector development in Afghanistan through the Global Peace and Security Fund. Spent $21 million spent on police corrections and justice programming to promote the rule of law. Brokered a joint border management plan between Afghan and Pakistani officials. Canada was the main driver behind adoption of NATO's vision statement and political-military plan for Afghanistan. Provided monetary support and technical advice to promote women's rights in Islamic law, through the Afghan Ministry of Justice. Significantly augmented Canada's civilian presence in Kandahar, from 15 to 63 civilian personnel.	SO 1, 2, 3 PA 1, 2, 3, 4, 5 New
North America and the Hemisphere: The change in the United States administration presented a critical opportunity to reinvigorate the close bilateral relationship and to advance cooperation on key issues.	Met all expectations in terms of results Canada hosted President Obama on his first official international visit. Achieved further engagement with Mexico on bilateral regional issues, notably human rights, indigenous issues, disarmament, UN reform and environmental policy. Deepened cooperation between Canada and the United States through an agreement on joint monitoring of implementation of that country's Western Hemisphere Travel Initiative and establishment of a border facilitation working group. Actively coordinated with the United States and Mexico to advance coherent and cooperative positions at the G20, Organization of American States (OAS) and North American Leaders Summit. Canada coordinated with the United States to shape the agendas of NATO and the Organization for Security and Co-operation in Europe (OSCE) in order to make a meaningful contribution to the security of North America. Disbursed $20 million in programming to police, justice, corrections, border issues and human rights in Haiti and Colombia. Established a rapid response mechanism with the Mexican Ministry of Foreign Affairs to jointly manage complex consular cases. Coordinated successful testing of the ePassport with the United States Department of Homeland Security, enhancing border security and cooperation. Demonstrated continued leadership and focused, comprehensive engagement in the Americas to advance Canada's vision for a more secure, democratic and prosperous hemisphere. Led whole-of-government presence in the Americas through increased number of incoming and outgoing high-level visits (incoming visit of Chilean President Bachelet in June 2008, outgoing visit of Prime Minister Harper to Peru in November 2008, and 19 outgoing ministerial visits from April 2008 to March 2009) and the appointment of a Minister of State of Foreign Affairs with special responsibility for the Americas. Expanded Canada's global commerce network in the Americas, particularly in Brazil following the visit of 10 deputy ministers under the leadership of DFAIT, and in the Andean region with the signature of free trade agreements (FTAs) with Peru and Colombia, to meet increasing needs and opportunities; worked toward concrete solutions to the global economic crisis, working to temporarily increase the Inter-American Development Bank's lending capacity; and hosted the Caribbean Development Bank meeting, further strengthening ties between Canada and the Caribbean. Allocated one third of Glyn Berry Program funding to support democracy in the Americas, notably in the Andean region (including projects to support youth engagement in the democratic process in Venezuela); provided support to OAS efforts to strengthen democratic norms in the region and to the implementation of the Inter-American Democratic Charter; worked toward the creation of a Democracy Network in the Andean Region to increase Canada's diplomatic presence and capacity to address democratic challenges in the region. Increased collaboration with hemispheric partners to address crime and insecurity in the region, including through the chairmanship of the OAS Committee on Hemispheric Security, and collaboration with the Department of National Defence for the hosting of the Conference of Defence Ministers of the Americas; worked toward the creation of a Security Network in Central America to increase Canada's diplomatic presence and capacity to address security challenges in the region; worked toward the establishment of an Anti-Crime Capacity Building Program to support the capacity-building initiatives of Canada's regional partners; through the Counter-Terrorism Capacity Building Fund, allocated $4.8 million for bilateral support to the Caribbean region and Central America to enhance regional stability and security; provided continued leadership in Haiti and support to the Colombia peace process through the Stabilization and Reconstruction Task Force (START); worked with the UN regional platform in the Americas to promote disaster preparedness.	SO 1, 2 PA 1, 2, 3, 4, 5 New
Growing/emerging markets, with a focus on China and India: Canada must secure favourable terms of access to key markets as well as to the investment and innovation opportunities where Canadian commercial interests are greatest.	Met all expectations in terms of results Opened new offices with Trade Commissioner Service staff in China, India, Mongolia and Brazil to meet increasing demand from Canadian business clients. Concluded FTA negotiations with Jordan; tabled legislation to implement FTAs with the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland), Peru and Colombia; launched FTA negotiations with Panama; completed a joint study and joint report with the European Union, which led to the launch of negotiations toward a comprehensive economic and trade agreement in May 2009;8 announced exploratory talks with India and Morocco; concluded foreign investment promotion and protection agreements (FIPAs) with Kuwait and Madagascar as well as science and technology cooperation agreements with Brazil and Chile; initiated FIPA negotiations with Bahrain and Tunisia; made further progress in ongoing negotiations with China, Indonesia, Mongolia, Poland, Tanzania and Vietnam. Introduced the campaign called 2010 Reasons to Do Business in Canada to promote Canada's commercial advantages in Asia, Europe and North America, leveraging the Vancouver 2010 Winter Games. Collaborated on a whole-of-government approach to policies and positions on China. Through active engagement in the World Trade Organization (WTO), G20 and Asia-Pacific Economic Cooperation forum (APEC), the department advanced Canadian interests in growing and emerging markets for Canadian exporters, including the tracking of protectionist actions taken by other countries in the wake of the economic crisis. Two of three Canadian-supported claims were upheld against China in intellectual property cases at the WTO. Calls for proposals under the International Science and Technology Partnership Program resulted in 20 projects worth $11 million, involving researchers in Canada and China, and eight projects worth over $17 million, involving researchers in Canada and India.	SO 1, 2, 3 PA 1, 2, 3, 7 New
A safer, more secure and prosperous Canada within a strengthened North American partnership: In an increasingly global economy, Canada benefits from constructive relations with its neighbours to ensure that the continent remains economically dynamic and secure.	Met all expectations in terms of results Through the Security and Prosperity Partnership and the North American Platform Program, facilitated North American cooperation on issues ranging from emergency management to smart and secure borders, disaster risk management, and Haiti. Participated in a United States-led counterterrorism assessment, the findings of which were positive about Canada's efforts in general. Worked within the UN regional platform in the Americas to promote disaster preparedness. Defended Canada's interests by engaging the United States on bilateral issues such as the "Buy American" provisions in the U.S. economic stimulus legislation.	SO 1, 2 PA 1, 2, 3 Ongoing
Greater economic competitiveness for Canada through enhanced commercial engagement, secure market access and targeted support for Canadian business: Canada's prosperity depends on enhanced competitiveness, market access as well as identification and pursuit of economic opportunities.	Met all expectations in terms of results Concluded FTA negotiations with Jordan; tabled legislation to implement FTAs with the European Free Trade Association, Peru and Colombia. Launched FTA negotiations with Panama and negotiations for a Comprehensive Economic and Trade Agreement with the European Union (see Program Activity 3 in Section 2 for more detail on FTAs) Concluded FIPA negotiations with Kuwait and Madagascar and initiated FIPA negotiations with Bahrain and Tunisia. Partnered in a pilot project to identify public infrastructure opportunities in Central and South America, yielding one memorandum of understanding and six business leads. Undertook trade missions with Canadian business delegates and developed targeted market plans for priority markets, including Argentina, Uruguay, Chile, China, Libya, South Africa and countries of the European Union. Provided 681 referrals of potential foreign investors to domestic partners in investment attraction, such as the provinces and territories. Marketed the Asia-Pacific Gateway and Corridor to 42 of the world's largest shippers. Introduced an advertising campaign to raise the level of awareness of TCS products and services among exporters, investors and innovative companies.	SO 1, 2 PA 1, 2, 3 Ongoing
Greater international support for freedom and security, democracy, rule of law, human rights and environmental stewardship: Canadian values, and their projection abroad, are key to this country's prosperity and to global security.	Met all expectations in terms of results Through the Counter-Terrorism Capacity Building Program, provided $11 million to states to improve their ability to prevent and respond to terrorist activity. Led the UN General Assembly resolution focusing international attention on the human rights situation in Iran. Led preparation and policy development for the 2008 Francophonie Summit and the Canada-EU Summit, which were successfully delivered in Quebec City in October 2008. Canada championed the movement for improved data collection on drugs in the Inter-American Drug Abuse Control Commission and the UN Commission on Narcotic Drugs (the position adopted by both). Developed whole-of-government policy positions on global issues, including climate change, energy, food security, human rights and development, for the 2008 G8 Summit, and prepared for Canada's 2010 G8 presidency. Led Canada's policy development for the UN-endorsed Contact Group on Piracy off the Coast of Somalia, and supported Transport Canada in the International Maritime Group's Maritime Security Committee. Coordinated and delivered Canada's human rights presentation to the UN Human Rights Council, under the Universal Periodic Review. As a result of the Global Peace Operations Program, Canada was one of only three G8 members to be compliant with the 2008 G8 commitments for peace operations capacity. Through the Global Peace and Security Fund, 25 projects in Sudan were supported, with over $50 million in funding for peacebuilding and recovery.	SO 1, 2 PA 1, 2, 3, 4 Ongoing
Accountable and consistent use of the multilateral system to deliver results on global issues of concern to Canadians: Canada's membership in a range of multilateral organizations provides opportunities to advance its interests and values across a broad spectrum of issues with many members of the international community.	Met all expectations in terms of results Prepared for Canada's 2010 G8 presidency. Advanced key Canadian political and economic interests and values through participation in the Francophonie Summit, the G20 and 2008 APEC meetings. Advanced key Canadian interests and values in the Americas through participation in the OAS General Assembly, the Inter-American Development Bank and the Caribbean Development Bank. Worked closely with host Trinidad and Tobago on the logistics and substantive front to deliver a productive Summit of the Americas in April 2009. Developed and coordinated Canada's policy positions on education at almost 50 multilateral ministerial and working-level conferences (e.g. UNESCO, the Organisation for Economic Co-operation and Development [OECD], the OAS) and finalized international education agreements with Chile, Poland and Spain. Advanced Canada's climate change priorities at the UN Framework Convention on Climate Change. Represented Canada's interests in 13 ongoing disputes at the WTO. Undertook extensive lobbying to advance Canada's candidacy for a UN Security Council seat for 2011-2012, which has resulted in growing support.	SO 1, 2 PA 1, 2, 3 Ongoing
Strengthened services to Canadians, including consular, passport and global commercial activities: Engagement of Canadians in the international community depends to a large extent on these services.	Met all expectations in terms of results Established a new branch to deal exclusively with consular affairs. Developed a publication to enable Canadians planning a trip to Mexico to better understand Mexican criminal law. Enhanced the provision of assistance to some 1,600 Canadians in 26 crises or emergencies, through strengthened departmental capacity. Opened 40 new passport receiving agents. Developed and piloted the ePassport to strengthen passport services for Canadians by means of easier and more accurate data control. Opened nine new Trade Commissioner Service offices: five abroad and four in Canada. Organized six trade missions abroad involving Canadian business delegates. Enhanced Canada's import-export permits system and issued 600,000 permits, covering goods with a value of over $15 billion. Increased use of social media (podcasts, videocasts, etc.) to help Canadians looking to do business abroad.	SO 2, 3 PA 3, 4, 5, 7 Ongoing
Launch of the department's transformation process, including meeting the challenge of strengthening Canada's global mission network: This priority is in keeping with the results of the department's 2007 strategic review, the purpose of which was to reinvigorate the department's structure and operations.	Met all expectations in terms of results Streamlined governance structure, in alignment with DFAIT's Program Activity Architecture. Implemented multi-year integrated planning. Established the Geographic Group and the International Platform Branch to ensure greater cohesion and coherence of their activities. Created the Office of Chief Financial Officer, the Departmental Audit Committee (DAC) and the position of Chief Audit Executive to enhance accountability. Established a strategic human resources plan that expands foreign-language training and introduces new approaches to spousal employment abroad. Targeted commercial strategies to priority markets and sectors, in alignment with the government's Global Commerce Strategy. Developed and implemented a plan to move 400 staff abroad by 2011-2012, which included reducing FTEs at headquarters by 160 in year one (2007-2008) and year two (2008-2009).	SO 1, 2, 3
Strengthened stewardship of the department's resources (human, financial, physical and technological) and of Canada's international representation generally, reflecting alignment with Government of Canada priorities: Ensuring value for taxpayers' money and the most effective application of resources are critical factors in all departmental operations and activities.	Met all expectations in terms of results Established a corporate governance structure consisting of seven boards and committees. Departmental Audit Committee was active in its role advising Deputy Ministers. Improved targeted employee equity representation (women, Aboriginal peoples, persons with disabilities and visible minorities). Established a Chief Financial Officer position to modernize financial and procurement management, and implemented a risk-based model for international financial operations. Created a new division responsible for financial policies, internal controls and training. Developed a results-based integrated human resources plan, with the goal of renewing DFAIT's aging workforce and putting a premium on learning.	SO 3 PA 1, 6, 7 and Internal Services

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⁶ Strategic Outcomes (SO), Program Activities (PA) and Type of Priority (new or ongoing).

⁷ See Section 2 of this report for the lessons learned related to information presented in this table.

⁸ www.international.gc.ca/trade-agreements-accords-commerciaux/assets/pdfs/EU-CanadaJointStudy-en.pdf

1.2.5. Expenditure Profile

Actual spending for 2008-2009 was $3,193.3 million. Of this amount, $693.8 million represents actual spending for the Crown corporation Export Development Canada (EDC) and its Canada Account.⁹ EDC's Canada Account transactions are not considered budgetary expenditures within the context of the DFAIT budget. Therefore, the EDC amounts have been excluded from the chart below.

Total DFAIT (Excluding EDC)

The rate of 2008-2009 actual spending remained in line with the department's total authorities. Three DFAIT program activities accounted for a significant portion of expenditures, as follows:

• $1,098.3 million for Diplomacy and Advocacy;
• $580.2 million for Canada's International Platform: Support at Missions Abroad; and
• $317.6 million for Canada's International Platform: Support at Headquarters.

In the chart above, the two lines at the top of the block showing financial information for 2006-2007 represent one-time authorities and spending, which accounted for the significant increase in planned spending that year compared with the other fiscal years presented. These one-time authorities and spending were due to:

• $502.0 million for payments to meet Canada's obligations under the Softwood Lumber Products Export Charge Act, 2006;¹⁰ and
• $126.9 million for debt forgiveness for six developing countries.

Excluding the 2006-2007 one-time authorities and spending, the department's spending has on average increased by 7 percent year over year. This growth in spending is mainly related to an increase in funding for the following initiatives:

• the Global Peace and Security Fund;
• the G8 Global Partnership Program;
• implementation of the Global Commerce Strategy;
• the Canada-United States Softwood Lumber Agreement; and
• transfers received from federal partners in support of their staff working at Canada's missions abroad.

Like other federal departments and agencies, the department faces budgetary constraints. As a result of government-wide reallocation exercises that began in 2004, the department has made cumulative contributions to these reallocation exercises of over $253.0 million ($131.0 million in 2008-2009).

⁹ DFAIT is responsible for the Canada Account, which is administered by Export Development Canada, pursuant to section 23 of the Export Development Act. The Budget Implementation Act, 2009, expanded EDC's mandate for two years to include the support and development of domestic trade, in addition to its traditional mandate related to export trade. The Canada Account supports transactions that, although within the scope of EDC's authority, are considered to be outside its risk parameters. Such transactions may be conducted under the Canada Account if deemed to be in Canada's national interest by the Minister for International Trade and the Minister of Finance.

¹⁰ http://laws.justice.gc.ca/en/showdoc/cs/S-12.55/20090731/en?command=HOME&caller=SI&fragment=softwood&search_type=all-&day=31&month=7&year=2009&search_domain=cs&showall=L&statuteyear=all-&lengthannual=50&length=50

1.2.6. Voted and Statutory Items ($ millions)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-2008	2008-2009
		Actual Spending	Main Estimates	Actual Spending
1	Operating expenditures	1,222.0	1223.5	1,361.5
5	Capital expenditures	170.9	122.7	172.9
10	Grants and contributions 11	742.4	682.1	816.0
11	Passport Canada-Capital Expenditures	-	-	10.0
13	Passport Canada-Operating Expenditures	-	-	12.7
(S)	Contributions to employee benefit plans	74.0	78.4	82.1
(S)	Minister of Foreign Affairs: Salary and motor car allowance	0.1	0.1	0.1
(S)	Minister for International Trade and Minister for the Asia-Pacific Gateway: Salary and motor car allowance 12	0.1	0.1	0.1
(S)	Payments to Export Development Canada (EDC) to discharge obligations incurred pursuant to section 23 of the Export Development Act (Canada Account) for the purpose of facilitating and developing trade between Canada and other countries. (S.C., 2001, c. 33)	95.4	4.2	0.6
(S)	Payments under the Diplomatic Service (Special) Superannuation Act (R.S. 1985, c. D-2)	0.2	0.3	0.1
(S)	Passport Office Revolving Fund (Revolving Funds Act R.S. 1985, c. R-8)	(19.4)	-	22.1
(S)	Refund of amounts credited to revenue in previous years	0.1	-	0.1
(S)	Spending of proceeds from disposal of surplus Crown assets	2.5	-	2.4
(S)	Losses on foreign exchange	7.8	-	9.2
(S)	Losses on foreign exchange (EDC)	354.9	-	0.0
(S)	Administrative fees (EDC)	10.0	-	7.9
(S)	Payments under Budget Implementation Act	10.0	-	10.3
	Total Budgetary	2,671.0	2,111.4	2,508.1
(S)	Payments to EDC to discharge obligations incurred pursuant to section 23 of the Export Development Act (Canada Account) for the purpose of facilitating and developing trade between Canada and other countries (S.C., 2001, c. 33) (Non-Budgetary)	(588.4)	88.2	685.2
	Total Department	2,082.6	2,199.6	3,193.3
Due to rounding, figures may not add to totals shown.

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¹¹ Includes assessed contributions for Canada's membership in international organizations and non-assessed grants and contributions.

¹² Originally reported in 2008-2009 Main Estimates as "Minister of International Trade and Minister for the Pacific Gateway and the Vancouver Whistler Olympics-Salary and motor car allowance."

1.3. What's Ahead in Section 2

Readers should be aware that there is some deliberate inconsistency in the way program activity results, including those related to internal services, are presented in Section 2. That is because not all program activities have the same range of focus or operation. For example, "International Policy Advice and Integration" and "Diplomacy and Advocacy" have a very broad range of operations and, therefore, link to nearly all of the RPP priorities. Other program activities such as "International Commerce" and "Canada's International Platform: Support at Headquarters" have a narrower focus of operations and, as a result, correspond to only a small number of RPP priorities. To avoid repetition, to provide the information as clearly and succinctly as possible, and to ensure compliance with concise reporting requirements, the department has used slightly different formats throughout Section 2.

However, the information in Section 2 is broken down in a consistent manner. Each program activity subsection begins by explaining the operating context and the benefits generated for Canadians. Next, a table identifies planned and actual resources (human and financial). Then the program activity's performance highlights for the fiscal year are presented, followed by a summary of lessons learned during the period.

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