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Canada's Performance Report 2007-08: The Government of Canada's Contribution


4 - International Affairs

Context

For the Government of Canada, international affairs revolve around the continuous development and implementation of its foreign and defence policies, which meet international challenges and opportunities through a combination of diplomatic, development, migration, trade, and investment strategies.

The Government of Canada plays a major role on the international scene and through its strategic investments, policies, and partnerships strives to ensure the following:

  • freedom, democracy, human rights, and rule of law;
  • a secure world;
  • sustainable development through reducing poverty internationally;
  • a healthy and beneficial North American partnership; and
  • the advancement of the country's international commercial interests.

The Government of Canada's expenditures for International Affairs

In 2007–08, a total of 19 federal organizations delivered $26.9 billion in programs and services contributing to Canada's international affairs.


Table 4 — Comparison of 2007–08 planned and actual spending by the Government of Canada for the International Affairs outcome areas ($ billions)
Outcome Area Main Estimates Planned Spending* Actual Spending
A safe and secure world through international cooperation $19.2 $21.2 $20.7
Global poverty reduction through sustainable development $3.7 $3.8 $4.4
A strong and mutually beneficial North American partnership $1.7 $1.7 $1.6
A prosperous Canada through global commerce $0.9 $0.9 $0.1†
Total $25.5 $27.5 $26.9

* Planned spending is derived from departmental RPPs.

† The difference between planned and actual spending is largely attributable to a number of Canada Account transactions related to aircraft financing not going forward as a result of Canada's signing of the Aircraft Sector Understanding.

Note: Due to rounding, numbers may not sum exactly to totals.

Figure 4.1—Breakdown of actual spending in International Affairs ($26.9 billion) by outcome area for fiscal year 2007–08

Figure 4.1 Breakdown of actual spending in International Affairs ($26.9 billion) by outcome area for fiscal year 2007–08

Figure 4.1 - Text version

National Defence, the Canadian International Development Agency, and Foreign Affairs and International Trade Canada are the federal organizations with the largest expenditures for the delivery of programs and services related to the International Affairs spending area.

In 2007–08, National Defence9 spent roughly $17.5 billion to:

  • increase the capacity of the Canadian Forces to better meet the defence and security needs of the country;
  • contribute to a secure world in response to the interests and values of the federal government, the Canadian people, and the international community; and
  • conduct operations.

The Canadian International Development Agency spent approximately $3.5 billion in 2007–08 on programs and initiatives that meet the international development goals under Canada's foreign policy objectives, provide ongoing support to Canadians in international development, and promote informed action by those Canadians.

Foreign Affairs and International Trade Canada spent approximately $2.1 billion to ensure that Canada's diplomatic and commercial interests are advanced internationally and that Canadians serving in Government of Canada missions abroad are effectively served and supported by a connected network capable of responding to needs for housing, information technology, and administrative services.

A Safe and Secure World Through International Cooperation

Background

Programs and services in this outcome area are directed toward the long-term goals of creating a safer world through international cooperation and ensuring freedom, democracy, human rights, and the rule of law. To this end, the Government of Canada is working with domestic and international partners to improve global defence and security through military and police activities and peace support operations, which include the following: the promotion of human security, human rights, and refugee protection; the support of democratic development and good governance; counter-terrorism capacity building; efforts to reduce crime; efforts to combat the proliferation of weapons; disaster risk reduction and response; and the safe and secure movement of people and goods. All these measures reflect the broad engagement of Canadian civil society in international cooperation.

The Government of Canada's expenditures in the outcome area of a safe and secure world through international cooperation

The eight federal organizations listed below spent $20.7 billion in the outcome area of a safe and secure world through international cooperation in 2007–08 through their respective strategic outcomes and program activities:

  • Canadian Air Transport Security Authority
  • Canadian Security Intelligence Service
  • Citizenship and Immigration Canada
  • Foreign Affairs and International Trade Canada
  • Immigration and Refugee Board of Canada
  • National Defence
  • Public Prosecution Service of Canada
  • Royal Canadian Mounted Police

National Defence had the largest expenditures in this outcome area, spending approximately $17.5 billion in 2007–08 to strengthen the capacity of the Canadian Forces to meet defence and security commitments, to conduct operations, and to serve the interests of Canadians both domestically and abroad.

Foreign Affairs and International Trade Canada spent approximately $2 billion to advance Canadian interests internationally, ensuring that Canadians as well as the government are served abroad.

The Canadian Air Transport Security Authority spent $441 million on programs that addressed the protection of Canadian passengers and key elements of the air transportation system identified by the government as needing improvement. These programs included airport screening procedures for passengers, non-passengers, and baggage and the acquisition and use of explosive detection systems at airports.

Figure 4.2—Distribution of actual spending by federal organization in a safe and secure world through international cooperation, 2007–08

Figure 4.2 Distribution of actual spending by federal organization in a safe and secure world through international cooperation, 2007–08

Figure 4.2 - Text version

The Government of Canada's contribution to a safe and secure world through international cooperation

Improved defence and security

In 2007–08, National Defence continued to support the Government of Canada in developing and implementing the Canada First Defence Strategy, which represents a firm commitment to rebuild the Canadian Forces into a first-class, modern military capable of providing enhanced security for Canadians. Supported by predictable, long-term funding, the 20-year plan will deliver a fully integrated, flexible, multi-role, and combat-capable military through balanced investments across the four pillars upon which military capabilities are built: personnel, equipment, readiness, and infrastructure.

Building on the federal government's investment in the military over the past two years, Budget 2008 provided a commitment of long-term stable defence funding beginning in fiscal year 2011–12, raising the annual rate of increase of National Defence's budget to 2 per cent from the current 1.5 per cent. This commitment is expected to represent an additional $12 billion over 20 years.

Promotion of human rights and refugee protection

Through initiatives administered by the Canadian International Development Agency, Foreign Affairs and International Trade Canada, and the Royal Canadian Mounted Police, the Government of Canada has pledged to contribute $555 million over five years for the rebuilding and development of Haiti. The government is also contributing to the stabilization of the security situation in Haiti and the long-term goal of enhancing political and economic development by supporting the United Nations Stabilization Mission in Haiti (MINUSTAH).

Citizenship and Immigration Canada, in collaboration with its partners, works internationally to promote the Canadian vision of the benefits of managed migration, which include minimized risks for the countries of destination as well as for migrants, viable programs that address labour market issues and demographics, and economic benefits. Canada's Refugee System, led by Citizenship and Immigration Canada, provides refugee protection to thousands of people every year, both in Canada and abroad. Canada operates one of the largest refugee resettlement programs in the world. In 2007 alone, it resettled refugees of approximately 70 different nationalities. These refugees included 7,574 government-assisted refugees and 3,588 refugees supported by private sponsors in Canada.

Did you know?

By providing a contribution of $5 million to support the operations of the Special Court for Sierra Leone, Foreign Affairs and International Trade Canada has supported efforts to bring justice to the victims of the brutal decade-long armed conflict that resulted in the deaths of over 70,000 civilians.

The Special Court's work has been praised for helping to bring stability to Sierra Leone and enhancing effective governance and transparency in Africa. The Special Court has successfully prosecuted some of the worst perpetrators of war crimes and crimes against humanity and is currently trying former Liberian President Charles Taylor, who is accused of backing rebel militias to gain control of the diamond producing areas and of having masterminded unlawful killings, sexual and physical violence, forced conscription of child soldiers, and attacks on the United Nations Mission in Sierra Leone.

Source: Foreign Affairs and International Trade Canada, 2007–08

The resettlement program is complemented by the refugee protection system, which operates domestically and is for individuals who seek refugee protection upon or after their arrival in Canada. In 2007, a total of 28,523 individuals from across Canada made a claim for refugee protection. This total represents an increase of 24 per cent over the 2006 total of 22,951.

Did you know?

The Stabilization and Reconstruction Task Force (START) is Canada's key mechanism for providing timely, whole-of-government responses to international crises. In 2007–08, START funded over 200 projects to support conflict prevention, crisis response, peace and stabilization operations, and peacekeeping capacity. Of these, 96 projects targeted three priority countries (Afghanistan, Sudan, and Haiti) and four fragile states.

Source: Foreign Affairs and International Trade Canada, 2007–08

Democratic development and good governance

In 2007–08, the Government of Canada committed $349 million in funding to help rebuild a free, democratic, and peaceful Afghanistan. Through the Global Peace and Security Fund, Canada's primary vehicle for delivering peace and security initiatives, funding was provided for more training of the Afghan National Police and Army, which will allow them to take increasing responsibility for security in Kandahar and throughout the country.

Currently, Canada has more than 2,900 personnel deployed internationally to defend Canadian values and interests while contributing to international peace, security, and stability. Reservists comprise 13 per cent of National Defence's deployed strength abroad, including one in seven soldiers in Afghanistan.

Counter-terrorism capacity building

The Counter-Terrorism Capacity Building (CTCB) Program, administered by Foreign Affairs and International Trade Canada's CTCB Secretariat, provides training, funding, equipment, and technical as well as legal assistance to other states to help them develop the capacity to prevent and respond to terrorist activity.

Reducing crime

Quality federal policing is at the core of reducing crime in Canada. The Royal Canadian Mounted Police's Federal and International Operations (FIO) programs work to ensure the safety and security of Canadians and their institutions, domestically and globally, through intelligence-based prevention, detection, investigation, and law enforcement measures taken against terrorism, organized crime, and other criminal activity. In 2007–08, spending on FIO programs was $651 million. One such program under FIO is the Integrated Border Enforcement Teams program, a horizontal initiative that takes an international and integrated approach to the enhancement of border integrity and security at the Canada–U.S. border. The Royal Canadian Mounted Police is a core partner of this border enforcement initiative, which works to identify and investigate persons or organizations that pose a threat to national security or are engaged in organized crime. Other partners are the Canada Border Services Agency, the U.S. Customs and Border Protection/Office of the Border Patrol, the U.S. Bureau of Immigration and Customs Enforcement, and the U.S. Coast Guard.

Combatting the proliferation of weapons

In 2002, under Canada's leadership, the G8 launched the Global Partnership Against the Spread of Weapons and Materials of Mass Destruction. The G8 has committed to raising up to US$20 billion over 10 years to prevent terrorists, or those who harbour them, from acquiring weapons and materials of mass destruction. The Government of Canada has committed up to $1 billion over 10 years. In 2007–08, through Foreign Affairs and International Trade Canada's Global Partnership Program, the federal government continued to work to destroy chemical weapons, dismantle nuclear submarines, improve the safety of nuclear and other radio-active materials, promote the non-proliferation of biological weapons, and reintegrate former weapons scientists (who became underemployed or unemployed with the collapse of the Soviet Union) into the scientific community.

Disaster risk reduction and response

Foreign Affairs and International Trade Canada's Humanitarian Affairs and Disaster Response Group and the Canadian International Development Agency's Natural Disaster Response and NGO Relations Unit continuously monitor and assess notifications about foreign natural disasters from scientific observation centres, relief organizations, and Canada's network of embassies abroad and are responsible for coordinating responses on behalf of the government.

Performance context

To put its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the outcome area of a safe and secure world through international cooperation.


Performance Context - in the outcome area of a safe and secure world through international cooperation.
Trend Indicator Overview
Armed conflicts In 2007, there were 30 armed conflicts in 26 countries, slightly up from 29 conflicts in 25 countries in 2006. However, there has been a general decline in armed conflicts since 1996, when the number worldwide was 40.

Global Poverty Reduction Through Sustainable Development

Background

Canada is made up of diverse peoples from around the world. As such, Canadians realize that the life we enjoy here increasingly depends on helping to improve the quality of life for people in other countries. Canada's future is linked with the futures of people around the world who are struggling with the major challenges of:

  • securing democracy and human rights;
  • building effective and accountable governance;
  • improving standards of living; and
  • managing the environment in a sustainable way.

The Government of Canada's expenditures in the outcome area of global poverty reduction through sustainable development

The following three federal organizations spent $4.4 billion in the outcome area of global poverty reduction through sustainable development in 2007–08 through their respective strategic outcomes and program activities:

  • Canadian International Development Agency
  • Department of Finance Canada
  • International Development Research Centre

The Canadian International Development Agency spent approximately $3.5 billion, which represents the largest expenditure for this outcome area. The Canadian International Development Agency is chiefly responsible for Canada's aid program, which seeks to reduce poverty and support sustainable development globally.

The Department of Finance Canada spent approximately $823 million in payments to international financial institutions and in support of debt relief in poor countries.

Through science and technology and the creation of local research communities, the International Development Research Centre helps developing countries find long-term solutions to the social, economic, and environmental challenges facing them. In 2007–08, the International Development Research Centre spent approximately $155 million on this outcome area.

Figure 4.3—Distribution of actual spending by federal organization in global poverty reduction through sustainable development, 2007–08

Figure 4.3 Distribution of actual spending by federal organization in global poverty reduction through sustainable development, 2007–08

Figure 4.3 - Text version

The Government of Canada's contribution to global poverty reduction through sustainable development

Restoring capacity in countries in crisis

Canada assumes a critical role in restoring stable and secure environments in fragile states around the world. For instance, through a countrywide strategy conducted in 2007–08, the federal government endeavoured to create the conditions for long-term peace, stability, and prosperity in Sudan, including Darfur. Both humanitarian and early recovery efforts were key elements of the government's strategy for assisting and protecting civilians and promoting stability in Sudan and neighbouring countries. Results of those efforts included feeding 5.7 million Sudanese, 3 million of whom were in Darfur, through the World Food Programme (WFP), vaccinating 1.2 million children against measles and 2.4 million against polio, and distributing 4.6 million textbooks in primary schools. In Afghanistan, the WFP delivered over 219,000 metric tonnes of food aid to over 6.5 million people.

The Canadian International Development Agency's development assistance program in Haiti focusses on basic needs, access to basic services, infrastructure, social stability, and governance. In 2007–08, access to basic services, such as health and education, received the largest portion of the Agency's financial resources, though funding also went to such projects as supporting the Parliament, strengthening the judicial system, reclaiming and building community infrastructure (roads, schools, and hospitals), job creation, waste management, and sanitation.

Reconstruction and development of Afghanistan

In 2007–08, the Canadian International Development Agency's aid program in Afghanistan was delivered as part of a coordinated whole-of-government effort with Foreign Affairs and International Trade Canada, National Defence, and other departments. In response to the needs identified by the Government of Afghanistan, the country received a total Canadian disbursement of $349 million. Approximately $280 million in reconstruction and development assistance to Afghanistan came from the Canadian International Development Agency and the remaining $69 million from Foreign Affairs and International Trade Canada as part of an increasingly integrated effort that combines the resources and expertise of development specialists, diplomats, military personnel, police officers, and corrections experts.

Did you know?

The World Bank has reported that progress is being made on a number of human development fronts over the last generation. For instance, life expectancy has increased by nine years; the percentage of people living on less than $1 per day has dropped from 27.9 per cent to 19.4 per cent owing, in part, to rapid growth in Southeast Asia, China, and India; access to basic education has increased dramatically, especially for girls in Africa; and democratic governance is strengthening in all regions of the world.

Source: World Development Indicators, 2008

To fund an increased presence and focus in Afghanistan, and Kandahar in particular, the Government of Canada announced an increase of $600 million in aid, totalling $1.9 billion for the 2001–11 period, subject to changes in the complex Afghanistan environment. Also, the government intends to increase its focus on Kandahar, raising its allotment from 17 per cent to 50 per cent of the total Canadian budget for Afghanistan.

The promotion and protection of human rights is vital to strengthening the ability of civil society organizations to bring about positive change in human and institutional attitudes and behaviour. In Afghanistan, human rights abuses are pervasive. The Afghan Independent Human Rights Commission (AIHRC), with the Canadian International Development Agency's support, advocates for and raises awareness of human rights. During the past year, the AIHRC investigated over 650 claims of human rights abuses and educated thousands of people on the fundamentals of human rights, including community and religious leaders, officials and staff in government institutions, and members of the Afghan National Army and Police, through workshops, media broadcasts, and meetings. The AIHRC also distributed 153,000 copies of its human rights magazine throughout Afghanistan.

Under the Taliban, girls were forbidden to participate in formal education and only 700,000 boys received any formal education. The re-establishment of the formal school system and the reintegration of girls within it will help break the cycle of illiteracy among Afghan women. With the Canadian International Development Agency's support, over 9,062 schools have been built or reclaimed and approximately 6 million children, one-third of whom are girls, are now going to school.

In 2007, the Government of Canada pledged its support to the Afghan Ministry of Education by making the greatest single contribution to its Education Quality Improvement Project, Afghanistan's largest education program and the cornerstone of its National Education Strategic Plan. A portion of the $60 million commitment will be invested in the construction or renovation of over 50 schools and the training of over 3,000 teachers in Kandahar Province.

Improving living standards

At the 2007 G8 Summit, the Government of Canada reaffirmed its commitment to contribute $450 million (between 2006–16) to support efforts to strengthen health systems and health outcomes in Africa and $25 million to the Education for All—Fast Track Initiative to help developing countries establish sound national education plans. The government also announced an increase in annual funding from $100 million to $150 million for basic education in Africa.

In the global fight against HIV/AIDS, the government continues to concentrate its attention on four principal areas: prevention and prevention technologies, strengthening health systems, promoting women's empowerment, and promoting the rights and protection of children infected with and affected by HIV/AIDS. In addition to ongoing funding, $120 million in new resources over the next two years has been earmarked to support initiatives such as vaccine and microbicide research, implementation of country-specific strategies, and increased efforts in prevention, education, and care. The Government of Canada committed $250 million—$125 million in 2006 and $125 million in 2007—to the Global Fund to Fight AIDS, Tuberculosis and Malaria, of which approximately $150 million will be directed to Africa and $45 million to the Global Polio Eradication Initiative, half of which will benefit Africa. Also, the government plans to commit up to $230 million in support of an Advance Market Commitments project to develop a vaccine for pneumococcal disease.

Did you know?

Since 2003, the Government of Canada has cancelled $568 million of debt owed by African countries. This includes cancellation of all the debt owed by eight African countries meeting the criteria of the Highly Indebted Poor Countries Initiative. Four other African countries remain eligible to benefit from full debt cancellation from Canada.

Source: Department of Finance Canada, 2007–08

Performance context

To put its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the outcome area of global poverty reduction through sustainable development.


Performance Context - in the outcome area of global poverty reduction through sustainable development.
Trend Indicator Overview
Official development assistance (ODA) as a percentage of gross national income (GNI) In 2007, the Government of Canada contributed 0.28% of its gross national income to official development assistance, slightly down from 0.29% in 2006.

A Strong and Mutually Beneficial North American Partnership

Background

The North American continent, shared by Canada, the U.S., and Mexico, has a combined population of approximately 436 million people. Sharing a commitment to the social well-being, economic success, and safety and security of its citizens, Canada and its North American neighbours cooperate in areas such as security, defence, trade facilitation, transportation, the environment, and public health. Collaboration between the three governments helps build a common vision of a stronger, more secure, and more prosperous continent.

The Government of Canada's expenditures in the outcome area of a strong and mutually beneficial North American partnership

The six federal organizations listed below spent $1.6 billion in the outcome area of a strong and mutually beneficial North American partnership in 2007–08 through their respective strategic outcomes and program activities:

  • Canada Border Services Agency
  • Canadian Food Inspection Agency
  • Canadian Space Agency
  • International Joint Commission
  • NAFTA Secretariat, Canadian Section
  • Security Intelligence Review Committee

The Canada Border Services Agency, which is responsible for managing Canada's borders, accounts for approximately $1.4 billion of the total spending for this outcome area. Of these expenditures, approximately $662 million supported programs and services that ensure the fairness of cross-border trade, compliance with border legislation, and travel safety. Roughly $403 million of the funding was used for effective and efficient border management, which ensures the safety and security of Canadians, and the remaining $379 million contributed to the development and application of technologies to modernize border management.

Other federal organizations that contribute to this outcome area include the Canadian Space Agency, which participates in Canadian and international space exploration and space-related science initiatives, and the Canadian Food Inspection Agency, which works to protect public health by safeguarding Canadians from threats to Canada's food supply and agricultural resource base.

Figure 4.4—Distribution of actual spending by federal organization in a strong and mutually beneficial North American partnership, 2007–08

Figure 4.4 Distribution of actual spending by federal organization in a strong and mutually beneficial North American partnership, 2007–08

Figure 4.4 - Text version

The Government of Canada's contribution to a strong and mutually beneficial North American partnership

The Canada–U.S. border

An open trade system is critical to Canada's economic prosperity, considering there is roughly $2 billion each day in cross-border trade with the U.S. Equally critical is the need to protect the border and Canadians from potential threats. In Budget 2008, the federal government committed $174 million over the next two years to strengthen the infrastructure, regulations, and cooperative frameworks that ensure border security and cross-border efficiency between Canada and the U.S.

Building on an investment of approximately $10 billion in border security and law enforcement since 2000, the Government of Canada redirected $75 million (over two years) to the Canada Border Services Agency for the effective management of the Canada–U.S. border.

NEXUS

Budget 2008 committed $14 million over two years for the expansion of the NEXUS program, a joint venture to simplify border crossings, while enhancing security, for low-risk, pre-approved travellers into Canada and the U.S. The program facilitates trade, travel, and commerce, while ensuring the continued protection of Canada from external threats.

Cross-border security

In 2008, the Government of Canada invested $6 million over two years to support the provinces and territories with the introduction of enhanced driver's licences. Additionally, the government committed to developing higher-security electronic passports by 2011 and doubling the length of their validity to 10 years.

The Government of Canada is investing $15 million over two years for the establishment of a permanent facility at the Great Lakes–St. Lawrence Seaway Marine Security Operations Centre to enhance security in the region. The Operations Centre enables federal organizations to work together to collect, analyze, and share information on marine and cross-border traffic that is pertinent to the security of the region. Canadian Integrated Border Enforcement Teams have been very successful in promoting cross-border collaboration with their U.S. counterparts and will shortly be extended into other jurisdictions across the border. In addition, work is underway to finalize an agreement that will enable collaboration on maritime cross-border law enforcement. The "Shiprider" agreement will enable the joint participation of American and Canadian law enforcement authorities on vessels in shared waterways.

The Security and Prosperity Partnership of North America

Beginning in 2008, the Government of Canada is spending $29 million over two years to meet the priorities established under the Security and Prosperity Partnership of North America (SPP), a trilateral initiative between Canada, the U.S., and Mexico launched in 2005. In August 2007, at the North American Leaders' Summit in Montebello, Quebec, the following five priority areas were announced:

  • enhancing the global competitiveness of North America;
  • safe food and products;
  • sustainable energy and the environment;
  • smart and secure borders; and
  • emergency management and preparedness.

The $29 million will be allocated to the following initiatives under the SPP:

  • greater efficiency at the Canada–U.S. border through better cross-border communications systems and improved wait-time information;
  • elimination of duplicate baggage screening on connecting flights within North America;
  • increased cooperation on projects in the chemical, automotive, and transportation sectors;
  • greater protection of the North American food supply through vulnerability assessments; and
  • improved trilateral cooperation on energy research and achieving compatibility of energy standards for key consumer products.

These initiatives are aimed at addressing consumer needs, increasing business competitiveness, and enhancing North American security.

Did you know?

Roughly 18,500 commercial transport trucks cross the border at 130 ports of entry every day, largely contributing to the $2 billion in trade that flows between Canada and the U.S. in a given day.

The Canada Border Services Agency's eManifest initiative is helping to ensure that goods travel across the border securely and efficiently by requiring all carriers, importers, brokers, and freight-forwarders to submit commercial information electronically before they reach the border. The eManifest initiative allows entry of low-risk goods into Canada to meet consumer demand, while enabling Canada Border Service Agency officers to identify high-risk shipments before they arrive. While protecting Canadians from potential health, safety, and security threats, this initiative is also helping to strengthen the world's largest trading relationship.

Source: Security and Prosperity Partnership of North America, http://www.spp-psp.gc.ca

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA) has helped participating countries Canada, the U.S., and Mexico triple trade since 1993 to an estimated $1 trillion in 2008. As a result of NAFTA, consumers have an increased variety of goods and services that are less expensive, businesses have been encouraged to increase their North American investment, and millions of jobs have been created in all three countries. NAFTA and its two side agreements, the North American Agreement on Labour Cooperation (NAALC) and the North American Agreement on Environmental Cooperation (NAAEC), continue to be key to the enhancement of North America's competitive edge in the increasingly connected and fast-paced global marketplace.

Performance context

To put its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the outcome area of a strong and mutually beneficial North American partnership.


Performance Context - in the outcome area of a strong and mutually beneficial North American partnership.
Trend Indicator Overview
Merchandise trade

Merchandise imports: In 2007, Canadian merchandise imports from the U.S. totalled $270.4 billion, or 65% of all Canadian imports. This represents an increase of 2.1% from 2006. In 2007, Canadian merchandise imports from countries other than the U.S. totalled $145.4 billion, or 35% of all Canadian imports. This represents a 4.2% increase from 2006.

Merchandise exports: In 2007, Canadian merchandise exports to the U.S. totalled $355.3 billion, or 76.4% of all exports for Canada that year. This represents a decrease of 1.6% from 2006. In 2007, merchandise exports to countries other than the U.S. totalled $109.9 billion, or 23.6% of all Canadian exports. This represents a 16% increase from 2006.

A Prosperous Canada Through Global Commerce

Background

Creating new trade and investment opportunities is critical to the success of Canadian business. Canada reached its current level of prosperity, in part, as a result of international trade and investment.

Canada is currently the ninth largest merchandise trader with the ninth largest economy in the world; the country has certainly prospered from the global economy. The Government of Canada works to ensure the advancement of Canada's position, with respect to trade and investment, in the international marketplace. By expanding the market share of current trading partners, while exploring potential opportunities with new ones and capitalizing on Canada's considerable geographical and transportation advantages, the federal government is delivering the benefits of global prosperity to Canada and Canadians.

The Government of Canada's expenditures in the outcome area of a prosperous Canada through global commerce

The four federal organizations listed below spent $86.8 million in the outcome area of a prosperous Canada through global commerce in 2007–08 through their respective strategic outcomes and program activities:

  • Canada Mortgage and Housing Corporation
  • Canadian Commercial Corporation
  • Department of Finance Canada
  • Foreign Affairs and International Trade Canada

Of these four federal organizations, Foreign Affairs and International Trade Canada spent the most in this outcome area to advance Canada's commercial interests internationally, with expenditures of $43.4 million in 2007–08.

With expenditures of approximately $16 million in this outcome area, the Department of Finance Canada is building a stronger international trade and investment system that will open markets, enhance the competitiveness of domestic industries, and expand access to major foreign markets for Canadian exports and investments.

The Canadian Commercial Corporation spent roughly $15.2 million in 2007–08 to bring foreign government buyers and Canadian exporters together in defence markets and in emerging and developing country markets.

Figure 4.5—Distribution of actual spending by federal organization in a prosperous Canada through global commerce, 2007–08

Figure 4.5 Distribution of actual spending by federal organization in a prosperous Canada through global commerce, 2007–08

Figure 4.5 - Text version

The Government of Canada's contribution to a prosperous Canada through global commerce

Global Commerce Strategy

In Budget 2008, the federal government announced, through the Global Commerce Strategy, its commitment to improving Canada's competitiveness and its support of Canadian businesses pursuing opportunities in the global marketplace. To this end, the Government of Canada is:

  • augmenting Canadian commercial engagement in global value chains;
  • securing competitive terms of access to the global marketplace as well as networks for Canadia businesses;
  • increasing foreign direct investment in Canada and Canadian direct investment internationally; and establishing stronger linkages between Canada's science and technology community and global innovation networks.
Trade opportunities at home and abroad

In 2007–08, the Government of Canada initiated steps to establish trade offices in India and Mongolia. It plans to establish 10 new trade offices in China, Mexico, and Brazil to help provide Canadian companies with the tools they need to access global supply chains for the expansion of commercial activities internationally.

Moreover, expansion of the Trade Commissioner Service is underway with four new satellite offices in Canada, which brings the total to 17 across the country. The Service encourages small- and medium-sized Canadian enterprises to seek out international opportunities and helps them succeed in new markets.

The Government of Canada continued to make progress throughout the year on its international trade objectives through various multilateral, regional, and bilateral forums. Canada participated in the work on the accessions to the World Trade Organization (WTO) of ten prospective members, helping to pave the way for Ukraine and Cape Verde to become full WTO members in 2008. Implementation of commitments made by the NAFTA Free Trade Commission, which would foster a stronger, more competitive North America, was ongoing in 2007–08.

In January 2008, Canada signed free trade agreements with the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland) and with Peru, marking the first new agreements of this kind in more than six years. Negotiations with Colombia were also concluded in 2007–08. The agreements with Peru and Colombia were accompanied by labour and environmental side agreements.

Negotiations for trade opportunities with Korea, the Caribbean region, the Dominican Republic, Jordan, Singapore, and four Central American countries (El Salvador, Guatemala, Honduras, and Nicaragua) are ongoing.

Did you know?

The Government of Canada considers India to be a priority market and is delivering on commitments made to strengthen its relationship with India. In March 2007, Canada led a trade mission to India to increase two-way investment, stimulate exports, and focus on promoting Canada's world-class infrastructure capabilities, particularly in construction, architecture, design, engineering, and telecommunications. In June 2007, India and Jordan concluded negotiations on a Foreign Investment Protection and Promotion Agreement, providing added security to the legal framework for two-way investment.

In 2007, Canadian exports to India reached $1.7 billion, marking a 55 per cent increase over 2005, and Canadian imports from India reached $1.9 billion, marking a 7.4 per cent increase over 2005.

Source: Foreign Affairs and International Trade Canada, 2007–08

International air agreements

New Canadian air agreements with Jordan, Kuwait, Ireland, Iceland, New Zealand, Singapore, Mexico, Barbados, the Philippines, and Panama were concluded in 2007–08. Additionally, negotiations have been initiated for a comprehensive open skies agreement to govern air services between Canada and 27 European Union countries, including 8 countries where air service arrangements presently do not exist.

Performance context

To put its programs, expenditures, and performance in context, the Government of Canada is tracking key measures of long-term progress in the outcome area of a prosperous Canada through global commerce.


Performance Context - in the outcome area of a a prosperous Canada through global commerce.
Trend Indicator Overview
Canada's investment position

Canadian direct investment abroad: Since 1986, Canadian direct investment abroad has grown eightfold, from $64.8 billion to $530 billion in 2006.

Foreign direct investment: Since 1986, the level of foreign direct investment in Canada has increased by 367%, from $96.1 billion to $437.8 billion in 2006.