RPP 2005-2006
International Trade Canada

3.1 Management Representation Statement

I submit for tabling in Parliament the 2005—2006 Report on Plans and Priorities for the Department of Foreign Affairs and International Trade (International Trade).

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of 2005—2006 Part III of the Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the reporting principles and requirements outlined in the TBS guidance;
• It is based on the department's approved accountability structure as reflected in its MRRS;
• It presents consistent, comprehensive, balanced and accurate information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved planned spending numbers from the Treasury Board Secretariat in the RPP.

Robert Fonberg
Deputy Minister for International Trade

3.2 Organizational Information

The Minister for International Trade is the Honourable James Scott Peterson, PC, MP. His responsibilities include trade and investment policy and promotion, and international science and technology. He is assisted by Mr. Mark Eyking, MP, Parliamentary Secretary (Emerging Markets).

The Minister for International Trade fulfills his responsibilities through a range of activities, including:

• development of trade and economic policy;
• active engagement with provincial, territorial, business and society stakeholders to facilitate, stimulate and sustain Canadians' involvement in developing and implementing Canada's trade agenda;
• management of bilateral, regional and multilateral trade relations;
• leadership of the Government of Canada's international business development and investment-related initiatives;
• promotion of science and technology flows with foreign countries and companies;
• management and administration of the Export and Imports Permits Act; and
• provision of financing for export transactions.

The Minister for International Trade is supported by the Deputy Minister and five Assistant Deputy Ministers. Four Assistant Deputy Ministers develop policies and initiatives to achieve the global objectives of our four main branches: trade policy, international business development, investment partnerships and world markets. The World Markets Branch manages our trade resources abroad and provides country and regional analyses to inform the work of the three other branches. The fifth Assistant Deputy Minister is responsible for our strategic policy and corporate planning and communications. It should be noted that the World Markets Branch and the Communications, Strategic Policy and Corporate Planning Branch represents the planned organizational structure of the Department since these branches are still pending Treasury Board approval.

Accountability below the Assistant Deputy Minister level is governed by our program activity architecture. The Assistant Deputy Ministers are responsible for our main program activity areas. The Directors General are responsible for the management and performance of sub-activities. The Directors General are supported by Directors who are accountable for individual programs.

3.2.1 Governance of Our Business Planning

At the corporate level, we monitor and seek input from the program managers at trade offices abroad to make sure that their goals are aligned to departmental priorities and those of the Government of Canada. To provide information for decision-making, program managers prepare an annual business plan that identifies resource use, the economic context within their respective territory, related activities and expected results. These plans form the basis of a dialogue with functional branches and partner departments on policy priorities and resource requirements. After the appropriate discussions, the information is fed into our planning cycle and used to inform our Report on Plans and Priorities and Departmental Performance Report. In 2005—2006 we will examine ways to improve our business planning even further.

3.2.2 The Office of the Inspector General

To ensure that all our programs are soundly managed, the Office of the Inspector General conducts periodic audits of our programs. These audits provide objective information with which to assess the robustness of our management and control framework. The Evaluation Division of the Department of Foreign Affairs and International Trade provides evidence-based information on the extent to which programs are achieving their stated results. The division also works with managers to develop results-based management and accountability frameworks for a number of our program areas. These frameworks help managers track and monitor progress over the life cycles of their programs.

Senior management is kept abreast of all significant emerging issues through the Audit and Evaluation Committee. The committee reviews and approves the annual audit and evaluation plan, directs the Office of the Inspector General to conduct reviews, and hears and discusses the results of recent audit reports and evaluation reports. The committee is chaired in rotation by the Deputy Minister and all Assistant Deputy Ministers. Outside observers (such as representatives of the Treasury Board Secretariat) are invited to meetings of the committee.

3.2.3 Portfolio Management

We have arm's-length relationships with three organizations that are outside our direct governance structure. Despite having a formal degree of independence, they periodically report to the Minister for International Trade. The establishment of a reporting relationship enables us to understand how the organizations contribute to the broad policy goals of the Government of Canada. Each produces its own annual plans and reports its performance through an Annual Report or a Departmental Performance Report. Information on specific commitments and results is available on their Web sites, listed in section 4.1 below.

The external organizations that report to the Minister for International Trade are:

• Canadian Commercial Corporation, a Parent Crown Corporation under Schedule III of the Financial Administration Act. It is an export sales agency that works to expand Canada's international trade.
• Export Development Canada, a Parent Crown Corporation under Schedule III of the Financial Administration Act. It is a financial institution that provides trade-related financial and insurance services to Canadian exporters and investors. Its services include the use of the Canada Account, authorized by the Minister for International Trade, which is used to support external transactions that the corporation is unable to support. The Canada Account is included in our program activity architecture.
• North American Free Trade Agreement Secretariat (Canadian Section), an agency of the Government of Canada under Schedule 1.1 of the Financial Administration Act. The secretariat helps to administer the dispute-settlement provisions of the North American Free Trade Agreement.

3.2.4 Organization Chart, 2005—2006

In our organization chart for 2005—2006, International Trade refers to the International Trade portfolio of the Department of Foreign Affairs and International Trade.

Table 1: Planned Spending and Full Time Equivalents (FTEs) ($ millions)
	Forecast Spending 2004-2005	Planned Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008
Trade and Economic Policy	43.1	45.8	45.9	45.9
Bilateral Relations	49.6	54.2	54.4	54.4
International Business Development*	66.7	82.1	78.6	77.8
Promotion of Foreign Direct Investment	12.0	11.3	11.3	11.3
Budgetary Main Estimates (Gross)	171.5	193.4	190.1	189.3
International Business Development*	0.0	653.0	740.0	328.0
Budgetary Main Estimates (Gross)	0.0	653.0	740.0	328.0
Less: Respendable Revenue	3.1	3.1	3.1	3.1
Total Main Estimates	168.4	843.3	927.0	514.2
Adjustments Supplementary Estimates:
Contributions to the provinces pursuant to the 1996-2001 Canada-US Softwood Lumber Agreement	49.8
Costs of defending Canada's interests in the softwood lumber dispute before international panels established under the World Trade Organization and the North American Free Trade Agreement	9.0
Operating budget carry forward	7.5
Initiatives to support the implementation of a common electronic infrastructure and multichannel service delivery strategy (Government On-Line)	5.1
Funding to undertake projects related to the development and application of biotechnology (Canadian Biotechnology Strategy)	0.2
Operating costs related to the management of the softwood lumber trade dispute with the US	2.9
Funding for the operating requirements of International Trade Centres and the Trade Integration Directorate, transferred from the Department of Industry due to government restructuring	0.4	0.4	0.4	0.4
Advertising Campaign Canada Export Awards	0.1
Budget Announcement:
Expenditure Review Committee		(1.4)	(2.4)	(3.8)
Expenditure Review Committee - Procurement Savings	(0.2)
2005 Federal Budget		4.0	4.0	4.0
Less: Spending authorities related to the government-wide reallocation initiative	(6.0)
Less: Spending authorities related to the Government of Canada Advertising Reserve	(0.2)
Less Funds available internally due to reduced operating requirements	(0.1)
Total Adjustments**	68.8	2.8	2.0	0.6
Total Planned Spending	237.1	846.1	929.0	514.8
Total Planned Spending	237.1	846.1	929.0	514.8
Less: Non-Respendable revenue	26.7	23.9	23.8	23.7
Plus: Cost of services without charge	14.0	15.6	15.3	15.6
Net Cost of Department	224.4	837.8	920.5	506.7
Full Time Equivalents (FTEs)	1,316.0	1,316.0	1,316.0	1,316.0
*    International Business Development includes budgetary and non-budgetary statutory payments to Export Development Canada (EDC) for the purpose of facilitating and developing trade between Canada and other countries under the terms of the Export Development Act (2005-2006 $18.98M budgetary, $653M non-budgetary; 2006-2007 $18.3M budgetary, $740M non-budgetary; 2007-2008 $17.5M budgetary, $328M non-budgetary). These payments were reflected under Export Development Canada in previous Main Estimates. **   Amounts may differ due to rounding. The Adjustments under Supplementary estimates do not include EBP of $2.2M

Table 4: Net Cost of Department for the Estimates Year ($ millions)
2005-2006
	Total
Net Planned Spending	842.3
Plus: Services received without charge
Accommodation provided by Public Works and Government Services Canada (PWGSC)	7.3
Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat (excluding revolving funds)	7.6
Workers' compensation coverage provided by Human Resources and Skills Development Canada	0.1
Salary and associated expenditures of legal services provided by Justice Canada	0.6
	15.6
Less: Non-Respendable Revenue	23.9
Net Cost of the Department	834.0
Due to rounding figures may not add to total shown

Table 6: Sources of Respendable and Non-Respendable Revenue ($ millions)
Respendable Revenue	Forecast Revenue 2004-2005	Planned Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008
International Business Development Trade fairs and trade/investment technology missions	3.1	3.1	3.1	3.1
	3.1	3.1	3.1	3.1
Total Respendable Revenue	3.1	3.1	3.1	3.1
Non-Respendable Revenue	Forecast Revenue 2004-2005	Planned Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008
Trade and Economic Policy Import and export permit fees*	16.5	15.0	15.0	15.0
	16.5	15.0	15.0	15.0
International Business Development Contributions repaid under the Program for Export Market Development	2.3	2.1	2.0	1.9
	2.3	2.1	2.0	1.9
Strategic and Business Planning Employee rent shares Adjustment to previous years' expenditures	4.9 3.0	5.8 1.0	5.8 1.0	5.8 1.0
	7.9	6.8	6.8	6.8
Total Non-Respendable Revenue	26.7	23.9	23.8	23.7
Total Respendable and Non-Respendable Revenue	29.8	27.0	26.9	26.8
Due to rounding figures may not add to totals shown.   *   Estimate only - the removal of permit requirements for certain clothing and textile products on January 1, 2005, will significantly reduce fees from permits beginning in the 2005 - 2006 fiscal year and does not allow for an accurate forecast of permit revenues.

Table 8: Details on Project Spending
Over the next three years the following project has or is expected to exceed its delegated project approval level:
2005-2006
Virtual Trade Commissioner
2006-2007
N/A
2007-2008
N/A
For further information on the above-mentioned project see http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 9: Details on Transfer Payments Programs (TPPs)
Over the next three years, Department of Foreign Affairs and International Trade (International Trade) will manage the following transfer payment program in excess of $5 million:
2005-2006
Contributions under the program for Export Market Development
2006-2007
Contributions under the program for Export Market Development
2007-2008
Contributions under the program for Export Market Development
For further information on the above-mentioned transfer payment programs see http://www.tbs-sct.gc.ca/est-pre/estime.asp.

Table 10: Horizontal Initiatives
Over the next three years, Department of Foreign Affairs and International Trade (International Trade) will be involved in the following horizontal initiative as a partner:
2005-2006
Team Canada Inc (TCI)
2006-2007
Team Canada Inc (TCI)
2007-2008
Team Canada Inc (TCI)
Further information on the above-mentioned horizontal initiative see http://www.tbs-sct.gc.ca/est-pre/estime.asp.