ARCHIVED - RPP 2006-2007
Department of Foreign Affairs and International Trade

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4.1 Summary of Plans and Priorities for 2006-2009

4.1.1 Planning Cycle and Strategic Outcomes

This part of the report deals exclusively with the department's international trade component.

4.1.1.1 Strategic Outcome

The department collaborates extensively with partners inside and outside government to foster coherence of Canada's commercial policies and programs in order to enhance the prosperity of Canadians. Strategic outcome and program activities in relation to international trade are identified in the table below.

Strategic Outcome: Canada's international commercial interests are advanced, both in Canada and abroad, in collaboration with Canadian business and other stakeholders.

Program Activities:

Trade Policy and Negotiations, which analyzes, negotiates, advocates and represents Canada's international economic and commercial interests in Canada and abroad, in consultation with stakeholders.

World Markets/Commercial Relations, which integrates Canada's economic, trade, investment, and science and technology interests at regional and bilateral levels, and manages bilateral commercial interests.

International Business Development, which manages and delivers international business services to Canadians.

Promotion of Foreign Direct Investment and S&T Cooperation, which attracts and retains foreign direct investment (FDI) in Canada, expands Canadian investment abroad and fosters international science and technology collaboration.

The department's Corporate Services and Human Resources functions also support this strategic outcome.

4.1.1.2 Alignment with Government of Canada Priorities

The department's priorities are in keeping with the April 2006 Speech from the Throne, which noted:

• the importance of building "stronger multilateral and bilateral relationships, starting with Canada's relationship with the United States, our best friend and largest trading partner;" and
• the government's intention to "work with our friends and allies around the world to promote democracy, human rights and freer trade."

The department's strategic outcome and program activities align with Government of Canada outcomes identified in Canada's Performance, an annual report to Parliament on the federal government's performance, prepared by Treasury Board. Of particular relevance is that document's outcome, A Prosperous Canada through Global Commerce.

4.1.1.3 How International Trade Plans

At the corporate level, the business planning process is initiated at a fall retreat held by Executive Committee, at which members agree on a clear set of priorities and strategic objectives. These are articulated in a broadcast message and set of instructions to all members of the department's management at Headquarters and missions abroad. The country strategies prepared by the department's foreign affairs component provide the overall context in which the trade component's commercial programs operate abroad.

Program managers at Headquarters and abroad are provided with a business planning framework featuring specific performance measurement indicators on which to base their business plans. The plans identify resource use, the economic context within their respective territories, related activities and expected results. These plans form the basis of a dialogue with partner departments on policy and program priorities and resource requirements.

Over the past three years, Internet-based templates have been used for business plans, which has brought a degree of efficiency previously unknown and provided a better means of comparing plans across various markets. The department ensures coherence and completeness of all business plans, as well as a correlation with overall departmental priorities and key results.

The department is increasing its collaboration with other departments to develop credible performance indicators, primarily through use of the department's electronic client relationship management system known as TRIO and through a linkage of TRIO with the Virtual Trade Commissioner (VTC) web platform. TRIO provides integrated solutions to trade officers in order to improve the processing, delivery and tracking of interactions with clients. The system generates performance indicators such as average turnaround time on service requests, volume of services delivered and number of business leads generated.

The department uses its approved plans and strategies as the basic material for its Report on Plans and Priorities. This report, which is a compilation and explanation of the department's annual business plans, is an official element in the Estimates process. Like its counterpart, the Departmental Performance Report, this document is tabled in Parliament and is made available to all Canadians and others with an interest in Canada's trade policy.

4.1.2 Planning Context: Challenges and Risks

The complexity and volatility of the international environment in which the department operates poses a number of challenges and risks-both strategic and operational-that must be identified and considered in its annual planning cycle.

4.1.2.1 Challenges

The challenges facing the department include:

• a global environment dominated by security and economic concerns;
• the difficulty in making sufficient progress in the Doha Round of trade negotiations and a consequent resurgence of protectionism;
• the continuing importance to Canada's prosperity of integration within the North American economic space and access to American markets;
• concern over declining market share in the United States;
• the accelerating emergence of new economic powers, new competition and new markets;
• a continuing shift in business models toward global value chains;
• the increasing dependency on technological alliances to achieve innovation and productivity growth;
• the continuing fierce global competition for foreign direct investment;
• threats to market access due to the multiplicity of free trade agreements between our competitors and key markets;
• the department's aging workforce and the shortage of qualified employees in key occupational groups, which has prompted the department to adopt new strategies to address its future human resources needs; and
• the finite, and in some cases, reduced, financial and human resources with which to carry out departmental activities (e.g. the department's contribution to the Treasury Board-funded Government On-Line (GOL) initiative, which ended on March 31, 2006). To sustain the department's various GOL initiatives-the Virtual Trade Commissioner, TRIO, InfoExport and the Doing Business with Canada websites-alternative funding will have to be found within its own budget.

4.1.2.2 Risks

The department identifies and closely monitors risks associated with its mandate on an ongoing basis. This work is based on the Treasury Board framework (http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/RiskManagement/rmf-cgr01-1-eng.asp#An%20Integrated%20Risk), which helps departments identify, manage and communicate risk from an organization-wide perspective.

Currently, the department has a large number of risk mitigation strategies in place for certain programs and overall operations. However, more work needs to be done in this area, given that some elements of the department still use informal methods of risk assessment and management. As its policy and program capacity is strengthened, the department continues to make progress in improving its assessment, management and communication of risks.

At present, the main strategic risks for the department are as follows:

• The federal government faces increased pressure to protect certain industries from the impact of international trade and to assist others in the event of an economic slowdown, while remaining committed to greater liberalization of trade and investment rules.
• The federal government has faced ongoing pressure to resolve the outstanding dispute with the United States over softwood lumber without undermining Canada's broader trade interests with that country. This dispute was resolved by a bilateral agreement, which was finalized in August 2006.
• Canada needs to address American security concerns that might create border delays or closures, which in turn could have severely adverse effects on commerce between the two countries.

4.1.2.3 Other Environmental Factors

Major Publications of Relevance to International Trade

Over the past year, a number of publications have addressed the future direction of Canadian economic policy, as follows:

• The Evolving Role of Governments in a 21st Century Economy, a report by the Public Policy Forum on its interviews and roundtables with over 100 Canadian business and civil society leaders, government officials and representatives of non-profit organizations (January 2006) (http://www.ppforum.ca/common/assets/reports/en/report_evolving_role_of_government.pdf);
• Should Canada pursue more Free Trade Agreements?, comments to the House of Commons Subcommittee on International Trade, Trade Disputes and Investment by Danielle Goldfarb of the C.D. Howe Institute (April 2005) (http://www.cdhowe.org/pdf/verbatim_3.pdf); and
• From Bronze to Gold: A Blueprint for Canadian Leadership in a Transforming World - Ideas and Recommendations of the Canadian Council of Chief Executives (February 2006) (
  (http://www.ceocouncil.ca/publications/pdf
  /adb96bc91c7726f2452e047292499900/
  From_Bronze_to__Gold_February_21_2006.pdf).

Major Horizontal Files Involving the Department

In addition to the many trade policy files that regularly involve a range of other government departments, the department is involved in the following specific horizontal files:

• It has the lead on, and responsibility for, the Enhanced Representation Initiative (http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/eri-ireu/description-eng.asp). A partnership of seven federal departments and agencies, the ERI provides a coordinated and integrated approach to managing and advancing Canada's advocacy, business development (trade and investment), and science and technology interests in the United States. This is done in collaboration with ERI partners and in consultation with other federal departments, the provinces, territories and other stakeholders. ERI oversees 22 consulates general, consulates and trade offices. Thirteen honorary consuls have been appointed to date to represent Canada in places where there is currently no official Canadian representation.
• In April 2006, the International Business Development Agreement (IBDA) between the federal government (specifically, this department as well as Industry Canada and the Atlantic Canada Opportunities Agency) and the four Atlantic provinces was renewed for five years at a cost of $10 million. First established in 1994, the agreement helps established exporters in Atlantic Canada expand their activities into new and more diversified markets and assists the region's new exporters in getting started. More details are available at http://www.pm.gc.ca/eng/media.asp? category=1&id=1138. Since 1994, 32 percent of companies that participated in an IBDA-sponsored trade activity for the first time have since begun exporting internationally, 42 percent of companies reported an increase in the volume of their exports and 29 percent started exporting to new markets as a result of IBDA activity. A total of 179 projects have been approved and more than 1,500 companies have participated in them.
• The Canadian Biotechnology Strategy (http://www.tbs-sct.gc.ca/rma/eppi-ibdrp/hrdb-rhbd/cbs-scb/description-eng.asp) is the federal strategy to position Canada as a responsible world leader in biotechnology. The department is involved in its delivery and elaboration for the purpose of improving market access for Canadian biotechnology products, managing related trade agreements and supporting Canadian biotech business and research organizations.

4.1.3 Plans and Priorities

4.1.3.1 The Five Strategic Priorities of the International Trade Component of the Department

The department is currently developing a global commerce strategy for engagement in priority markets, which encompasses trade policy, export development, investment flows, science and technology linkages and commercialization of Canadian technologies. This strategy will reflect the following priorities that apply to all the department's operations, with varying emphasis on each priority depending on specific market conditions abroad and the functional nature of work at Headquarters and regional offices:

• Increasing Canadian awareness of the challenges and opportunities presented by global commerce: It is apparent that a significant number of Canadian companies have yet to engage in international commerce, an activity that could greatly enhance their productivity and competitiveness. The department therefore will place increased emphasis on raising awareness among Canadians of the challenges and opportunities in the global marketplace through targeted engagement with various stakeholders such as industry sector associations, municipalities, provinces, regional development agencies and ethno-cultural groups. In this way, it will encourage greater Canadian participation in global commerce, to the long-term benefit of the Canadian economy. Looking abroad, the department will place particular emphasis on investment, innovation and value-added production in order to highlight Canadian capabilities beyond the traditional sectors for which Canada is better known. It will follow up in a more targeted manner on leads identified during trade missions to generate new business activity or help bring about collaborative research projects in areas of strategic interest to Canada.
  
  Through the website of the Canadian Trade Commissioner Service, the department will continue to offer free access to sectoral market studies and country-specific reports to help Canadian companies identify foreign business opportunities and learn more about target markets.
• Strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements: The United States, in every respect, continues to be Canada's most important economic partner. Canada will continue to give the highest priority to the enhancement of this bilateral relationship. In addition, Canada will continue to work trilaterally with the United States and Mexico, particularly with respect to the North American Free Trade Agreement and the Security and Prosperity Partnership, to enhance the global competitiveness of North America through the improved flow of goods, services and capital within the continental market.
  
  Although the Doha Development Agenda negotiations have been suspended without a resumption date, the department will continue to build on the valuable ongoing work of the WTO and will also work with other WTO members and the Director-General of the WTO to pursue multilateral trade negotiations, particularly the resumption of the Doha Development round, with the goal of reaching an ambitious outcome that meets Canadian objectives. These objectives include levelling the playing field for the agri-food sector, increasing market access for goods and services providers, strengthening trade rules, facilitating trade by cutting the red tape at the border and helping developing countries better integrate into the global trading system. In determining the parameters of future negotiations, the department will continue considering the wide-ranging commercial interests of Canadian carriers, gateways and communities.
  
  However, in order to maintain momentum in securing enhanced access to global markets, the department will step up efforts to conclude free trade agreement negotiations with South Korea and will actively pursue negotiations with other key markets. It will also pursue negotiations toward foreign investment protection and promotion agreements (FIPAs) with China, India and Peru and negotiations of bilateral air agreements to expand international passenger and cargo rights for Canadian carriers.
  
  Finally, the department will effectively manage the domestic regulatory and legislative framework for which it is responsible (i.e. the Export and Import Permits Act [EIPA]). The EIPA is a trade instrument that controls the import and export of goods in support of Canada's economic, security and foreign policy interests. Specific initiatives in 2006-07 include the proposed addition of controls for exports to Belarus due to severely flawed elections and abuse of human rights, as well as the addition of controls related to the negotiated softwood lumber settlement.
• Assisting Canadian business in competing successfully for global opportunities: While the department recognizes the prime importance of protecting and advancing Canada's economic and business interests with the United States in order to advance Canada's global economic agenda, it also is aware that Canadian firms will have to engage and compete more energetically in other strategic markets in Asia and Latin America, among others. A key step is to determine how these dynamic markets can offer opportunity and growth potential to Canadian business. Once the analysis is complete, the department will determine how potential business partners in these rising economic powers can serve as strategic links to global value chains, a fairly recent phenomenon, which has radically changed the way in which international firms do business. The department will also take stock of lessons learned by competitor nations to understand which aspects of commercial relationships can result in stronger and more enduring business-to-business ties.
  
  The department is currently in the process of reassessing its business development priorities and strategies, as well as its technology and investment policies, programs and expenditures to identify where it should realign its efforts to maximize private-sector participation in key markets. To meet the needs of Canadian business, the department will continue to realign its international business programs, reallocating some resources to outward investment in support of new business models, and more assertively supporting global academic, public- and private-sector activities in science and technology. It will develop a more coherent policy to promote innovation and will continue its efforts to brand Canada internationally as a centre of innovation.
  
  The department will also identify ways under trade and investment policy-market access rules and investment-promotion agreements, for example-to advance Canadian interests in emerging markets. In such markets, for example China and India, the International Science and Technology Partnerships Program (ISTPP) will prove to be a valuable tool. The department will continue to upgrade and expand its various Internet-based platforms to guarantee seamless, cost-efficient and timely service delivery. In particular, it will ensure closer integration with the Internet platforms of partners, including Agriculture and Agri-Food Canada, Export Development Canada, Canadian Heritage, Industry Canada and the Canadian Commercial Corporation in order to provide integrated services across government to support international business development.
  
  In order to facilitate and enhance competitiveness, it is essential that the Canadian business community has access to diversified and frequent international routes and route connections, also reaching domestic points, as well as to international air cargo facilities. As indicated above, the department, in collaboration with Transport Canada, will strive to improve the diversity and capacity of international transportation options to satisfy the requirements of the business community and those of the travelling public. This will require keeping in sight the varying interests of the different segments of the Canadian air transport industry, particularly those of airports offering their services to Canadian and foreign carriers, Canadian carriers offering, at varying degrees, connecting domestic and international flights, or those particularly connecting with foreign carriers at Canadian gateways, under commercial partnerships.
  
  The ultimate goal of all these efforts is to ensure a greater degree of international connectivity for the business community, resulting in Canadian companies that are armed with all the necessary information and tools to help them develop a readiness and capacity to enable them to engage and succeed in global commerce.
• Promoting Canada as a globally competitive location and partner for investment, innovation and value-added production: Foreign direct investment plays a major role in Canada's economic growth. It brings capital to the Canadian economy, introduces leading-edge technologies, assists human capital formation, stimulates domestic competition, transfers new management expertise and provides preferential access to international markets.
  
  In collaboration with other federal departments and other levels of government, the department works to enhance understanding of Canada's investment interests, advocates policy changes to improve the domestic investment climate, enhances the relevance of messages in the main Government of Canada website designed for foreign business people (http://www.investincanada.gc.ca/Director.aspx?lang=en), and undertakes initiatives to attract and expand targeted foreign direct investment to Canada. In this way, the department fosters two-way investments that help link Canadian industry to global value chains and international markets.
  
  Through its missions abroad, the department will place particular emphasis on investment, innovation and value-added production in order to showcase Canadian capabilities beyond the traditional sectors for which Canada is better known. It will follow up in a more targeted manner on leads identified during trade missions to generate new business activity or help bring about collaborative research projects in areas of strategic interest to Canada.
  
  The department has a mandate to support all aspects of international commerce, including international S&T. It plays a strategic leadership role by fully integrating S&T into its international business development services and by managing effective international partnerships to support Canada's innovation capacity. The department's activities in this regard include promoting more effective technology acquisition, global partnering and commercialization of Canadian knowledge and technology.
  
  The department will enhance its coordination of international S&T by working with federal and provincial partners to establish international collaborations. It will support the Canadian S&T community by providing an appropriate network through which companies can access the world's best facilities, equipment, talent, knowledge and cost-sharing mechanisms. Such access will improve the quality and speed of Canadian research activities and the potential for timely commercialization. These investment and S&T initiatives complement the department's strategy on emerging markets.
  
  Through the Enhanced Representation Initiative, the department will build strong and effective science and technology partnerships with key Canadian S&T-based organizations and their American counterparts to promote innovation and commercialization.
• A department that is recognized as modern and agile: In 2006-2007, the department will finalize its modern comptrollership action plan. Once the plan is completed, the department will have the required capacity to implement the key elements of the Management Accountability Framework set by Treasury Board Secretariat.
  
  In human resources management, the department is striving to align departmental priorities and expected results with individual performance agreements with managers. The department has made progress in the employment equity representation of women and visible minorities and maintained the level of Aboriginal representation. In 2006-2007, the department will need to do more work in the executive ranks, where the designated groups are currently underrepresented.
  
  The department will continue to reinforce training in official languages for employees at missions abroad. The department is committed to building a continuous learning organization. A recently implemented Performance

4.1.4 Planned Spending: Financial and Human Resource

4.1.4.1 Financial Resource Utilization

Financial Resources ($ millions)
Year	2006-2007	2007-2008	2008-2009
Total Planned Spending	414.5	546.0	518.5

The department's budget is allocated through Main and Supplementary Estimates approved by Parliament. Given the timing of this year's federal election, funding was provided in an exceptional manner–-through Main Estimates as well as by means of a Governor General Special Warrant (the established instrument for obtaining funds when Parliament is dissolved for the purposes of a general election).

As indicated in the table above, planned spending for International Trade for 2006-2007 will be $414.5 million, a decrease from the amount allocated in the 2005-2006 Main Estimates. This decrease is due to:

• budget cuts associated with phase 2 of the $1 billion government-wide expenditure review initiative, in keeping with the 2005 Budget; and
• the budgetary and non-budgetary allocations to Export Development Canada.

The decrease in costs will be offset by increases resulting from:

• higher costs related to severance and maternity leave payments for Canada-based and locally engaged staff as well as increased salaries, as per collective agreements ($3.6 million); and
• increased funding for softwood lumber litigation ($14 million).

The department has two voted appropriations (related to operating expenditures and grants and contributions) and four statutory authorities. For 2006-2007, the department's budget will be allocated as follows: roughly 38 percent for operating expenditures and 3 percent for grants and contributions.

Human resources expenditures, excluding $19 million related to employee benefits plans, account for approximately 48 percent of the department's budget. In general, human resources expenditures are funded through voted appropriations. However, employee benefit plans are statutory payments.

A detailed breakdown of the department's planned spending can be found in Part III, section 3.1.4. The financial resources are distributed across the four program activities as follows:

• $51.7 million-Trade Policy and Negotiations;
• $41.1 million-World Markets/Commercial Relations;
• $309.5 million-International Business Development (includes budgetary and non-budgetary amounts for Export Development Canada); and
• $12.2 million-Promotion of Foreign Direct Investment and S&T Cooperation.

The planned spending figures for the program activities total $414.5 million and include the Expenditure Management Committee cut of $700,000. It should be noted that the government's Expenditure Management Review cuts of five percent in 2005-2006 were applied to all operational budgets, which affected travel and general operations. No specific initiatives or programs were targeted.

The department will contribute more than $10 million in grants and contributions this year, mainly through international business development, promotion of foreign direct investment and S&T cooperation program activities. Key grants and contribution programs include the Program for Export Market Development-Trade Associations, the International Science and Technology Partnerships Program, Going Global and the Community Investment Support Program.

4.1.4.2 Human Resource Utilization

Human Resources (FTEs)
Year	2006-2007	2007-2008	2008-2009
Full Time Equivalents	1,369	1,369	1,369

The department remains committed to building a bilingual, culturally diverse and innovative workforce that fully reflects Canadian society as a whole. At the same time, the department is working to create more productive and innovative relations with employee unions and associations. The department is also working to address the gap in resources in a number of its key occupational groups.

FTEs refers to full-time equivalents, the human resources required to sustain an average level of employment over 12 months, based on a 37.5-hour work week. The above table indicates the approximate number of FTEs the department used last year. The human resources (FTEs) are distributed as follows across the four program activities:

• 369-Trade Policy and Negotiations;
• 512-World Markets/Commercial Relations;
• 417-International Business Development; and
• 71-Promotion of Foreign Direct Investment and S&T Cooperation.

The success of any organization depends entirely on its employees. This is especially true for this department, which requires a unique blend of highly skilled people. The department is continuing to modernize its human resources management. Several significant change initiatives are still under way-some in keeping with government-wide legislative change (e.g. implementation of the Public Service Modernization Act) and others related to the department's transformation agenda and management priorities, including implementation of the Performance Management Program and restructuring of the Foreign Service.

4.1.5 Performance Monitoring

In 2005-2006, the department increased the collection of significant data, and identified and applied more stringent and informative performance indicators. During 2006-2007, the department will develop an integrated performance information system related to resources, internal processes, service delivery and economic data. It expects to implement the system in 2007-2008. In addition, the department monitors and measures performance with the following set of performance indicators (see the table below) for strategic outcomes, priorities and key results taken from the department's business planning framework. This framework provides the basis for strengthening results-based management and for setting objectives related to the Performance Management Program and performance management agreements for the executive cadre. The backbone for this framework will be provided by the data collection and transaction-focused architecture of the VTC-TRIO service pipeline. The TRIO system will also be the source for much of the quantitative data.

The department will continue to undertake a series of targeted audits and evaluations throughout its operations to provide senior management with performance information (see Part IV, section 4.3, table 4.10 for more details).

Specific performance indicators in the following table relate to each of the department's policy and management priorities. These indicators will be used to assess the department's performance in relation to the plans identified in this report, which will be discussed in full in the 2006-2007 Departmental Performance Report.

1. Increasing Canadian awareness of the challenges and opportunities presented by global commerce
Planned outcomes:	As demonstrated by:
Specific strategies are developed by Canadian business clients to respond to the challenges and opportunities of global commerce	Number of specific business client strategies developed to meet the challenges and opportunities of global commerce
Domestic buy-in to advance Canadian commerce interests is enhanced	Level of consensus among domestic stakeholders in support of Canada's global commerce strategy
Utilization of government programs and services to help Canadians succeed in the global economy is increased	Number of client services delivered Number of communications/outreach events across Canada Degree of participation in communications/outreach events
2. Strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements
Planned outcomes:	As demonstrated by:
Canadian trade and investment interests are advanced through appropriate rules-based initiative	Level of progress in advancing negotiations on agreements and cooperative arrangements (e.g. bilateral, regional and multilateral trade and investment negotiations, issue-specific accords and cooperation agreements) Improvements vis-à-vis the scope of rights and obligations achieved through negotiations Extent to which Canadian partnerships are enhanced through collaborative and cooperation initiatives for specific issues and sectors Effective domestic implementation of negotiated agreements
Market access for Canadian goods, services, technologies and investment is maintained and improved	Level of progress in maintaining and improving Canada's market access interests within a rules-based system
Trade and investment disputes are managed effectively	Level of progress in effectively managing trade and investment disputes, including through consultations and the use of formal dispute settlement procedures, as well as targeted advocacy efforts
Domestic regulatory and legislative framework under the responsibility of the Minister for International Trade is managed effectively	Effective implementation of negotiated market access and retaining agreed-upon levels of domestic market openness Delivery of effective export controls to promote a safer and secure economy and improve market access
3. Assisting Canadian business in competing successfully for global opportunities
Planned outcomes:	As demonstrated by:
Canadian business is positioned effectively to grow through global commerce	Increase in the value and market share of exports and Canadian direct investment abroad Level and growth of sales of foreign affiliates of Canadian firms in relation to Canadian exports Number of new exporters active in foreign markets Number of exporters expanding their activities to new foreign markets
Business opportunities and intelligence are generated to match Canadian capabilities with specific foreign business needs	Value, volume and quality of business leads identified and disseminated to business clients
Delivery of client services (e.g. timely and high-quality market information, key contacts, business advice and referrals to support sound, informed international business decisions) is optimized	Percentage of, and degree to which, clients are satisfied with timeliness and quality of services, products and events Increase in volume, consistency and quality of client services delivered
4. Promoting Canada as a globally competitive location and partner for investment, innovation and value-added production
Planned outcomes:	As demonstrated by:
New and expanded investments in Canada are made by international businesses	Increase in number and value of foreign investments in Canada to which the department contributed
Foreign investors and innovators have increased knowledge of, and interest in, Canadian capabilities and advantages	Number and quality of investment prospects identified and disseminated to provinces/territories Number of events and other proactive initiatives in which Canadian capabilities were highlighted Improved perceptions of Canadian capabilities and advantages by foreign investors and "influencers" Improved international competitiveness as evidenced by ranking in international benchmarking studies
S&T partnering opportunities and intelligence are generated to match Canadian and foreign S&T needs and capabilities	Number, nature and scope of S&T partnering opportunities identified and realized between Canada and S&T priority partner countries
Enhanced international R&D collaborations and commercializations are made, involving Canadian researchers and business partners	Number and scope of S&T partnerships achieved through established mechanisms and initiatives
5. A department that is recognized as modern and agile
Planned outcomes:	As demonstrated by:
Capacity to deliver services to clients through initiatives focusing on service quality, efficiency and other dimensions of modern management is improved Programs and services that respond effectively to the needs of the Canadian business community are enhanced	Client satisfaction ratings reflecting the quality, timeliness, relevance and utility of services provided Perceptions of employees on the quality, utility and relevance of training programs Level of adherence to service standard for response time Level of use of innovative tools to manage client service requests and volume of self-service by clients

4.2 International Trade Program Activities by Strategic Outcome

This section provides detailed information about the department's commerce-related strategic outcome, the four program activities and one supporting activity identified in its Program Activity Architecture.

4.2.1 Strategic Outcome: Canada's international commercial interests are advanced, both in Canada and abroad, in collaboration with Canadian business and other stakeholders

The following four program activities and one supporting activity contribute to this strategic outcome.

4.2.1.1 Program Activity: Trade Policy and Negotiations

4.2.1.1.1 Description of the Program Activity and Related Planning Context

Program Activity: analyzing, negotiating, advocating and representing Canada's international trade and economic interests in Canada and abroad, in consultation with stakeholders.

In carrying out this activity, the department:

• negotiates trade agreements with other countries and monitors their implementation, manages disputes and consults stakeholders on the substance of these agreements;
• prepares economic analyses in support of policy development; and
• evaluates Canada's performance in international trade (see http://www.international.gc.ca/eet/menu-en.asp). This evaluation is provided in two departmental publications, State of Trade and Trade Policy Research. State of Trade reviews and analyzes key developments concerning Canada's international trade and investment as well as other aspects of global commerce that had an impact on Canada over the preceding year. Canada's performance is checked against that of traditional partners and competitors such as the United States, the EU and Japan as well as emerging global powers such as Brazil, Russia, Brazil, and China. Trade Policy Research, an annual compendium of policyrelated analysis and research, covers work done inside and outside the federal government on issues directly related to the department's policy objectives. The views expressed are those of the authors. Volumes in this series have been adopted in international trade and business courses in several Canadian and American universities.

The program activity effects change both directly and indirectly through:

• policy development, supported by analysis and research;
• consultation and engagement with domestic and international partners;
• advocacy and negotiation;
• dispute management and resolution; and
• implementation and enforcement of legal obligations under the Export and Import Permits Act.

The direct clients of this program activity are exporters, importers, producers and investors in goods and services industries who benefit from new access opportunities, better and cheaper supplies, and fairer and more predictable operating environments. Its indirect clients are all Canadians who benefit from a greater variety of goods and services and a stronger economy nurtured by an open, rules-based trade and investment regime. Such a regime fosters innovation and employment opportunities through market opening, good regulatory practices and other tools that take into account overriding social, environmental and economic priorities.

Planning Context:

The following factors affect the trade policy and negotiations functions of the department:

• As a relatively small, developed economy, Canada relies more than most on international commerce for the exchange of investment, technology, people and ideas. The effective management of Canada's commercial relationship with the United States is a key priority, given that it accounts for over three-quarters of Canada's goods and services exports. An important challenge will be to finalize the details of the new agreement between Canada and the United States on trade in softwood lumber.
• There is the possibility that Canada's economy could be adversely affected by new documentation requirements under the United States government's Western Hemisphere Travel Initiative (http://geo.international.gc.ca/can-am/main/right_nav/whti-en.asp), particularly if appropriate measures, technology and infrastructure are not in place by the deadline.
• At the same time, Canada is pursuing multilateral agreements, as well as a range of bilateral and regional trade initiatives, including negotiations of free trade agreements with South Korea, Central America, the European Free Trade Association and Singapore; broader trade initiatives with Japan and the European Union; and a hemispheric agreement, the Free Trade Area of the Americas (FTAA)-although this 34-country negotiation has been stalled for over two years.
• The emergence of new economic superpowers-chief among them Brazil, Russia, India and China-and the trend toward further subdivision of production networks (i.e. regional or global supply chains)-have increased the complexity of the international trading environment. The former has brought development issues into the mainstream of trade policy. The latter has resulted in a trade policy agenda that increasingly focuses on sensitive and complex areas of domestic policy (i.e. labour mobility, subsidies and support programs, domestic regulation, agricultural marketing boards that are unique to Canada, investment restrictions, intellectual property rights and sub-national trade barriers) as opposed to eliminating barriers to trade at the border.
• Following multilateral liberalization under the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization as well as continental liberalization through the Canada-United States FTA and NAFTA, most opportunities to reduce trade barriers and ease trade restrictions have been explored. The result has been increasing difficulty in forging an international consensus for further liberalization in multilateral or regional forums, as reflected in the recent difficulties in advancing the WTO Doha Development Agenda and the FTAA negotiations. This, in turn, has contributed to an increase in bilateral FTA negotiations on the part of virtually all major trading nations. While these can complement the WTO, the initiatives of other countries-particularly the United States- also present significant competitive challenges for Canadian firms and foreign firms operating in Canada, which are at risk of becoming less competitive in key third-country markets and experiencing relative erosion of their preferred access to the American market.
• At the same time, domestic sensitivities have contributed to the fact that Canada is the only significant trading nation that has not concluded an FTA in more than five years, despite many ongoing initiatives. Faced with these complexities, it is important to forge a more strategic approach to trade policy.
• The intent is to use the mechanisms most suited to the particular needs of the business community and to the stage of development and economic potential of the partner country.
• The challenge is to manage a full and diversified approach to trade policy. It is one that is very demanding in terms of resources, but necessary if Canada is to maintain its status as a premier trading nation.

4.2.1.1.2 Plans and Priorities for the Trade Policy and Negotiations Program Activity

The department will contribute mainly to the following key priority under this program activity:

• strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements.

The strategic priority for this program activity is supported by multiple one- to three-year outcomes. The department will advance the achievement of these outcomes by undertaking the following specific actions, listed below.

Strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements

• The department will finalize the new agreement between Canada and the United States on trade in softwood lumber. In April 2006, Canada reached this historic agreement, ending the longstanding dispute over trade in softwood lumber and providing a fair and durable resolution that reflects Canada's objectives and interests (http://www.dfait-maeci.gc.ca/eicb/softwood/basic-terms-en.asp). It will ensure stable and predictable access to the American market, repayment to Canadian producers of at least $4 billion in duties collected by the United States and flexibility for the provinces involved in recognition of varying operating conditions across Canada. This agreement will help build a stronger bilateral trade relationship, while setting a positive tone that will allow Canada and the United States to collaborate in making North America more globally competitive. The two countries are currently working to finalize the agreement.
• The department will continue to advance and defend Canadian interests pursuant to Canada's rights and obligations under international trade agreements.
• With respect to the American government's Western Hemisphere Travel Initiative, Canada is committed to working with the United States to identify and assess the best options for alternative identification documents to be used for crossing the border between the two countries. The emphasis will be on a system that is low in cost, convenient and based on common standards.
• The department will provide advice on matters related to Canada-United States and Canada-Mexico trade relations, such as compliance with international obligations and operation of Canada's export permits regime. This will include providing advice and analysis on trade risks and implications of American security measures.
• It will continue using NAFTA and other instruments such as the Security and Prosperity Partnership to ensure the continued prosperity of Canadians. For example, as agreed to by the NAFTA Commission at its March 2006 meeting, work will continue to identify sectors and the specific work that could be undertaken within these sectors to remove existing trade impediments.
• The department will build on the ongoing work of the WTO (including working with others to resume the Doha Development Agenda negotiations) as well as pursuing, on a more aggressive basis, bilateral free trade negotiations to improve market access and rules for Canadian investors and exporters.
• The department will make progress on the accession of Russia and other key emerging economies into the WTO on terms that establish multilateral rules and open markets for Canadian exporters and investors.
• Pursuant to the 2005 Canada-Japan Economic Framework, the department will complete a joint study with the Government of Japan to identify steps to further enhance commercial relations.
• The department will explore opportunities for entering into new free trade agreement negotiations with partners in the hemisphere and elsewhere.
• The department will make progress on ongoing free trade agreement negotiations with South Korea, the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), the Central America Four (El Salvador, Guatemala, Honduras, Nicaragua) and Singapore.
• The department will ensure that development and implementation of international rules governing intellectual property, information and communications technologies as well as cultural industries reflect Canadian priorities and benefit Canadians.
• It will advance Canada's interests through effective advocacy in dispute settlement proceedings related to the EU moratorium on approval of Canadian biotech products and the EU ban on Canadian beef.
• The department will pursue negotiations of Foreign Investment Promotion and Protection Agreements with priority countries (in particular China, India and Peru) in support of Canadian investment abroad.
• The department will conclude bilateral air negotiations to expand the number of passenger and cargo routes and increase the frequency of flights.
• It will ensure that the UNESCO convention on cultural diversity does not conflict with Canadian obligations under trade agreements.
• It will coordinate Canadian initiatives to resolve trade barriers with the EU.
• It will manage export controls on strategic goods so that Canada's security obligations are met without unduly restricting Canadian business.
• The department will introduce controls on softwood lumber exports in accordance with the newly agreed softwood lumber agreement.

4.2.1.1.3 Planned Spending: Financial and Human Resources Utilization (see Part IV, section 4.3, table 4.1)

Financial Resources ($ millions)
Year	2006-2007	2007-2008	2008-2009
Total Planned Spending	51.7	60.7	45.7

Human Resources (FTEs)
Year	2006-2007	2007-2008	2008-2009
Full Time Equivalents	369	369	369

4.2.1.1.4 Performance Monitoring

Strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements
Planned outcomes:	As demonstrated by:
Canadian trade and investment interests are advanced through appropriate rules-based initiatives	Level of progress in advancing negotiations on agreements and cooperative arrangements (e.g. bilateral, regional and multilateral trade and investment negotiations, issue-specific accords and cooperation agreements) Improvements vis-à-vis the scope of rights and obligations achieved through negotiations Extent to which Canadian partnerships are enhanced through collaborative and cooperation initiatives for specific issues and sectors Effective domestic implementation of negotiated agreements
Market access for Canadian goods, services, technologies and investment is maintained and improved	Level of progress in maintaining and improving Canada's market access interests within a rules-based system
Trade and investment disputes are managed effectively	Level of progress in effectively managing trade and investment disputes, including through consultations and the use of formal dispute settlement procedures, as well as targeted advocacy efforts
Domestic regulatory and legislative framework under the responsibility of the Minister for International Trade is managed effectively	Effective implementation of negotiated market access and retaining agreed-upon levels of domestic market openness Delivery of effective export controls to promote a safer and secure economy and improve market access

4.2.1.2 Program Activity: World Markets/Commercial Relations

4.2.1.2.1 Description of the Program Activity and Related Planning Context

Program Activity: integrating Canada's economic, trade, investment and science and technology interests at the regional and bilateral levels and managing commercial relations.

In carrying out this activity, the department delivers core services, including strategic opportunities identification, at missions abroad. This requires ongoing collaboration with partners inside and outside government. Strategies encompassing all aspects of international commerce are being developed for a core group of priority markets, including the United States, Mexico, China, India, Brazil, Russia, Japan, South Korea, the Association of Southeast Asian Nations (ASEAN), the Gulf Cooperation Council and the EU. This program activity and the changing nature of global business- increasing regional focus, regional and global supply chains and emphasis on two-way trade and investment-reflect a new outlook for the department's operations abroad.

Planning Context: The following factors affect the world markets functions of the department:

• Global commerce underpins wealth creation and prosperity in the Canadian economy, from production to trade in goods and services, through investment, to innovation and other drivers of global economic development. Global commerce is about trade in value-added goods and services, and about meeting growing demands for knowledge, investment, technology and increasingly customized products. It reaches deep inside borders to such an extent that neither business nor governments can any longer distinguish between "domestic" and "international."
• International commerce in the 21st century is about the codification of knowledge and the disaggregation of manufacturing, distribution and other productive activities among the various links of supply or value chains. Commerce strategies are intended to help Canadian companies react to these changes by providing increased market intelligence on supply chain projects and a clearer focus on priority sectors in key markets.

Past successes do not guarantee Canada's future success in the global economy. There is no room for complacency in an ever tougher, more competitive world with more active players and sophisticated and changing business models. The challenges to Canada's competitiveness are steadily increasing. Canada must either get ahead of the curve, with an economy that can quickly adapt to the global challenges and a business sector that "thinks globally" and pursues opportunities worldwide, or it risks a deterioration in its economic prospects, performance and prosperity.

4.2.1.2.2 Plans and Priorities for the World Markets/Commercial Relations Program Activity

The department will contribute to the following key priorities under this program activity:

• increasing Canadian awareness of the challenges and opportunities presented by global commerce;
• assisting Canadian business in competing successfully for global opportunities; and
• reinforcing the department's organizational effectiveness through continuous improvement in policies, programs and partnerships and in the skills, knowledge and dedication of its employees.

Each of the strategic priorities for this program activity is supported by one or more one- to three-year outcomes. The department will advance the achievement of these outcomes by undertaking the following specific actions, listed below by strategic priority.

Increasing Canadian awareness of the challenges and opportunities presented by global commerce

• The department will continue to communicate business opportunities in the North American, Asian and European markets to Canadian companies, especially new exporters.
• The department will increase awareness of the commercial opportunities in the Caribbean and Latin America by using Miami as a gateway.
• It will promote the benefits of the FTA with Chile and trade with the Andean Community and Mercosur, South America's largest trade grouping.
• The department will implement regional action plans in Latin America and promote sectoral team solutions for Latin American markets.
• It will partner with the Canada-Arab Business Council to attract Canadian companies to markets in the Middle East and North Africa.
• The department will enhance Canadian awareness of growing trade and investment opportunities in the emerging markets of Kazakhstan, Russia and Ukraine in key priority sectors.
• It will disseminate timely market intelligence to Canadian companies to enable them to compete effectively for high-value-added contracts in strategic sectors (e.g. as partners in the global supply chain for the Airbus A350).
• Once free trade negotiations with South Korea are concluded, the department will mount a major awareness program to quickly capitalize on new opportunities in this important market.
• The department will promote the benefits of FIPAs to Canadian companies that may be considering expansion of their operations to foreign markets, particularly to take advantage of participation in global supply chains.
• In the May 2006 federal budget, the government committed $591 million over the next eight years for investments in the Pacific Gateway Initiative. Canada's international trade moves through gateways, which include major land border crossings and ports where transportation networks converge to connect centres of economic activity. Given the growth in Asia-Pacific markets such as China and India, this investment will improve the flow of goods and help open up new market opportunities for Canadian business.
• Budget 2006 also included funding for infrastructure improvements at the Windsor-Detroit gateway, which is critically important to Canada-United States trade, as well as at other border crossings, including Windsor, Sarnia and Fort Erie in Ontario and St. Stephen in New Brunswick.

Assisting Canadian business in competing successfully for global opportunities

• It will develop multi-year, whole-of-government commerce strategies for certain priority markets (the United States, Mexico, China, India, Brazil, Russia, Japan, South Korea, ASEAN, the Gulf Cooperation Council and the EU).
• It will plan, promote and implement trade and commercial missions to priority markets in support of the commerce strategies noted above.
• The department will implement the United States Commerce Strategy to coordinate the showcasing of Canadian capabilities, identify opportunities and facilitate business-to-business partnering with focused intelligence and analysis in key high technology sectors.
• It will cooperate with Mexican counterparts on Canada-Mexico Partnership commitments on competitiveness to promote opportunities for Canadian-Mexican business partnership and enhance the competitiveness of industry in both countries.
• It will enhance the commercialization of Canadian technology in niche sectors through targeted partnering initiatives in the United States and the identification of investment and venture capital for fledgling Canadian technology companies, while identifying domestic impediments to such investments.

A department that is recognized as modern and agile

• It will expand commercial relations with Japan by finalizing a Memorandum of Understanding to open defence procurement to Canadian exporters and by capitalizing on the successful conclusion of the Canada-Japan joint study initiative.
• The department will enhance commercial relations with China through expanded trade representation and better market intelligence to serve the Canadian business community. It will also pursue an "Approved Destination Status" to facilitate visits to Canada by Chinese tour groups.
• It will address the needs of high-growth, high-potential firms along the global supply chain continuum.
• The department will intensify strategic showcasing to foreign buyers of Canadian services, technology and equipment through increased Canadian visibility at premier global sectoral shows in Canada and abroad by leveraging private, provincial and federal resources.
• The department will strengthen private-sector engagement in India through a CEO summit and infrastructure forum.
• It will work with partners in other departments to increase private-sector awareness of, and access to, market opportunities in sub-Saharan Africa that are currently being seized by competitors.
• The department will identify tools such as a double taxation agreement with Libya to help Canadian companies do business in the Middle East and North Africa.

4.2.1.2.3 Planned Spending: Financial and Human Resources Utilization (see Part IV, section 4.3, table 4.1)

Financial Resources ($ millions)
Year	2006-2007	2007-2008	2008-2009
Total Planned Spending	41.2	50.7	50.7

Human Resources (FTEs)
Year	2006-2007	2007-2008	2008-2009
Full Time Equivalents	512	512	512

4.2.1.2.4 Performance Monitoring

Increasing Canadian awareness of the challenges and opportunities presented by global commerce
Planned outcomes:	As demonstrated by:
Specific strategies are developed by Canadian business clients to respond to the challenges and opportunities of global commerce	Number of specific business client strategies developed to meet the challenges and opportunities of global commerce
Domestic buy-in to advance Canadian commerce interests is enhanced	Level of consensus among domestic stakeholders in support of Canada's global commerce strategy
Utilization of government programs and services to help Canadians succeed in the global economy is increased	Number of client services delivered Number of communications/outreach events across Canada Degree of participation in communications/outreach events
Assisting Canadian business in competing successfully for global opportunities
Planned outcomes:	As demonstrated by:
Canadian business is positioned effectively to grow through global commerce	Increase in the value and market share of exports and Canadian direct investment abroad Level and growth of sales of foreign affiliates of Canadian firms in relation to Canadian exports Number of new exporters active in foreign markets Number of exporters expanding their activities to new foreign markets
A department that is recognized as modern and agile
Planned outcomes:	As demonstrated by:
Capacity to deliver services to clients through initiatives focusing on service quality, efficiency and other dimensions of modern management is improved Programs and services that respond effectively to the needs of the Canadian business community are enhanced	Client satisfaction ratings reflecting the quality, relevance and utility of services provided Perceptions of employees on the quality, utility and relevance of training programs Level of adherence to service standard for response time Level of use of innovative tools to manage client service requests and volume of self-service by clients

4.2.1.3 Program Activity: International Business Development

4.2.1.3.1 Description of the Program Activity and Related Planning Context

Program Activity: managing and delivering international business development services to Canadians.

In carrying out this activity, the department helps position Canadian firms to take full advantage of global business opportunities, thereby contributing directly to prosperity and job creation through the following programs and services:

• The Canadian Trade Commissioner Service, through its 12 regional offices across Canada and 142 locations abroad, provides front-line support to over 16,000 companies each year.
• The Virtual Trade Commissioner, a highly acclaimed and evolving Internet tool, provides market reports, country information, email notification of leads and access to the services of trade commissioners and partners. It is increasingly tied to TRIO, the TCS's electronic client relationship management tool.
• The International Business Opportunities Centre provides sourcing and matching services by disseminating business leads, identified by trade commissioners abroad, to Canadian companies.
• The Program for Export Market Development (PEMD) for Trade Associations assists national trade associations in representing their member companies in international promotion of their products and services.
• The department hosts the support unit for Team Canada Inc.
• It supports the Small and Medium-sized Enterprises (SMEs) Advisory Board on International Trade, the only official advisory body on international business development issues of concern to SMEs. The board is made up of 18 private-sector individuals appointed by the Minister, representing various industry sectors and provinces. It normally meets with the Minister twice a year.
• The department offers guidance on utilization of the Canada Account trade finance facility, which is administered on behalf of the government by Export Development Canada.
• And, it provides policy advice to the Minister on Export Development Canada and the Canadian Commercial Corporation.

The department also helps Canadian companies access procurement and investment opportunities financed by international financial institutions such as the World Bank and the Asian Development Bank and by bilateral and multilateral development and relief agencies. In addition, the Market Research Centre provides market information to Canadian business clients across a range of sectors and markets. Roughly 100 market reports and another 100 country sector profiles are produced each year.

Planning Context: The following factors affect the international business development functions of the department:

• Canada's business community looks to the department to be the champion of its interests at home and internationally, but they still need assistance in building contact networks and addressing regulatory and other business barriers. Small to medium-sized businesses have fewer options than larger firms for acquiring strategic information or managing risk and place their emphasis on a somewhat different set of services (e.g. business intelligence).
• To meet these needs, it is important to provide Canadian businesses with a suite of knowledge-based services to support decision making on global market opportunities. Business needs knowledge and risk management tools to expand successfully in global markets. Knowledge includes leads on new and emerging opportunities and key contacts in the local marketplace and an understanding of the context, whether commercial, regulatory, social or political. These are key factors even in a familiar market such as the United States. Risk management ranges from well-established contextual risks (e.g. exchange rate movements) to commercial risks (e.g. cargo insurance and provision for nonpayment or default) to broader risks such as governmental regulatory action (e.g. tariff changes, expropriations and discriminatory standards).
• This suite of knowledge and risk management services is completed by advocacy initiatives on behalf of Canadian companies with foreign governments and businesses in support of their international strategies.
• These collective services to business are regularly assessed in Canada, as they are in most competitor countries, with a view to delivering better results in expanding Canadians' global business success. In a country as trade dependent as Canada, ensuring a level playing field with competitors calls for continued and expanded support for business, while ensuring maximum value-added service delivery and demonstrating efficient and effective allocation of resources.

4.2.1.3.2 Plans and Priorities for the International Business Development Program Activity

The department will contribute to the following key priorities under this program activity:

• increasing Canadian awareness of the challenges and opportunities presented by global commerce;
• assisting Canadian business in competing successfully for regional and global opportunities; and
• reinforcing the department's organizational effectiveness through continuous improvement in policies, programs and partnerships and in the skills, knowledge and dedication of its employees.

Each of the strategic priorities for this program activity is supported by one or more one- to three-year outcomes. The department will advance the achievement of these outcomes by undertaking the following specific actions, listed below by strategic priority.

Increasing Canadian awareness of the challenges and opportunities presented by global commerce

• The department will develop and deliver (primarily through Internet platforms mandated by the Government On-Line program such as InfoExport, the Virtual Trade Commissioner and the Doing Business with Canada websites) industry sector overviews in close collaboration with domestic partners and trade commissioners at missions. It will also develop sector strategies, reflecting a comprehensive approach to regional and global markets that advance Canada's commercial interests, collect market information and intelligence and develop key contacts through traditional means as well as through use of Internet-based electronic matchmaking tools.

Assisting Canadian business in competing successfully for global opportunities

• The department will provide support to trade offices abroad-including information, administrative, personnel and budget support-to enable effective delivery of programs to Canadian clients.
• It will gather market knowledge of Canadian sectoral capabilities and enlarge the business contact base through outcalls and outreach activities in Canada and through VTC-TRIO platform.
• It will lead development and implementation of a whole-of-government international business development approach in regional and global markets through innovative, single-service window mechanisms, in collaboration with other departments and agencies such as the eCRM (e-client relationship management system) partnership.
• In April 2006, the federal government and the Atlantic provinces renewed their International Business Development Agreement (see Part IV, section 4.1.2.3 for more information).

A department that is recognized as modern and agile

• The department will enhance the knowledge and skills of Trade Commissioner Service employees and partners so that they can better meet the evolving needs of clients in foreign markets.
• It will complete phase 2 of the Global Learning Initiative to provide mission commercial staff and partner clients with the skills, knowledge and motivation necessary to be strategic and proactive in the delivery of value-added services to Canadian clients.
• It will continue to reinforce the TCS core values in line with the commitment to values and ethics in government.
• It will continue to build information products based on linkages to other departments, making use of the increasing integration of their content into the VTC platform.
• The department will improve organizational effectiveness. For example, it will continue to implement the National Quality Institute Progressive Excellence Program (PEP), with the goal of achieving PEP Level III.

4.2.1.3.3 Planned Spending: Financial and Human Resources Utilization (see, Part IV, section 4.3, table 4.1)

Financial Resources ($ millions)
Year	2006-2007	2007-2008	2008-2009
Total Planned Spending	309.5	418.8	405.8

Human Resources (FTEs)
Year	2006-2007	2007-2008	2008-2009
Full Time Equivalents	417	417	417

4.2.1.3.4 Performance Monitoring

Increasing Canadian awareness of the challenges and opportunities presented by global commerce
Planned outcomes:	As demonstrated by:
Utilization of government programs and services to help Canadians succeed in the global economy is increased	Number of client services delivered Number of communications/outreach events across Canada Degree of participation in communications/outreach events
Assisting Canadian business in competing successfully for global opportunities
Planned outcomes:	As demonstrated by:
Business opportunities and intelligence are generated by matching Canadian capabilities with specific foreign business needs	Value, volume and quality of business leads identified and disseminated to business clients
Delivery of client services (e.g. timely and high-quality market information, key contacts, business advice and referrals to support sound, informed international business decisions) is optimized	Percentage of, and degree to which, clients are satisfied with timeliness and quality of services, products and events Increase in volume, consistency and quality of client services delivered
A department that is recognized as modern and agile
Planned outcomes:	As demonstrated by:
Programs and services that respond effectively to the needs of the Canadian business community are enhanced Capacity to deliver services to clients through initiatives focusing on service quality, efficiency and other dimensions of modern management is improved	Level of adherence to service standard for response time Level of use of innovative tools to manage client service requests and volume of self-service by clients Client satisfaction ratings reflecting the quality, timeliness, relevance and utility of services provided Perceptions of employees on the quality, utility and relevance of training programs

4.2.1.4 Program Activity: Promotion of Foreign Direct Investment and S&T Cooperation

4.2.1.4.1 Description of the Program Activity and Related Planning Context

Program Activity: Attracting and retaining foreign direct investment in Canada, expanding investment abroad and fostering international science and technology collaboration.

In carrying out this activity, the department attracts foreign direct investment in Canada, develops outward investment policy and promotes international science and technology cooperation. This activity contributes to Canada's economic competitiveness and prosperity.

FDI is a key factor in economic growth and productivity performance. Studies have shown that FDI provides much more than financial capital. It stimulates innovation, assists human capital formation, contributes to productivity-enhancing investment in machinery and equipment, strengthens international trade integration, helps create a more competitive business environment, generates positive productivity spillovers for local firms and enhances enterprise development. FDI is important to sustaining and improving Canada's standard of living.

To attract major investors in priority sectors of Canada's economy, the department works closely with economic departments at all levels of government to:

• develop Canada's strategies and approaches in attracting inward investment;
• exercise federal leadership in coordinating the efforts of investment promotion partners in all levels of government and increasing their capacity to attract investment;
• assess Canada's investment performance in the global context and outline the major policy challenges that must be addressed to improve Canada's competitiveness as an investment location;
• develop and implement the national investment marketing strategy, including products, tools and participation at signature events to deliver key investment messages and showcase Canada as the business location of choice to the international business community; and
• identify foreign firms with a high propensity to invest, engage partners in preparing compelling value propositions and provide key account management services, including calls on prospective investors and support to incoming missions.

In order to foster international science and technology cooperation, the department maintains a network of dedicated S&T counsellors and trade commissioners based in key markets of opportunity for science, innovation and technology collaboration.

• promote an integrated, market-results approach to international commercialization of Canada's research and technology across government in collaboration with the private sector and academia;
• foster international collaboration in and commercialization of R&D;
• identify world-leading research to be incorporated into the development of innovative processes, goods and services in Canada; and
• position Canada as a valued international innovation partner.

Planning Context: The following factors affect the investment and S&T cooperation functions of the department:

FDI has increased dramatically around the world over the past 20 years, and the competition for global investments is intensifying. Emerging markets are becoming increasingly successful in attracting traditional forms of investments based on low-cost production. Canada, like other industrialized nations, is positioning itself in the higher-value sectors in which it has a clear competitive advantage (e.g. knowledge-based industries, energy and natural resources) as well as in service industries, which require close proximity to clients.

• However, given the keen global competition for investment, Canada's ability to attract strategic, knowledge-intensive FDI increasingly depends on its ability to create a more competitive investment climate than its key competitors, the United States and the European Union. The department's challenge is to advance a domestic policy agenda aimed at streamlining Canada's regulatory regime, offering a competitive tax environment, securing access to the American market, removing or easing sector-specific foreign investment restrictions and ensuring an adequate supply of skilled workers.
• Science and technology are directly linked to Canada's prosperity in the 21st-century economy, and knowledge has become a commodity. There are many players in Canada involved in innovation and S&T and most of them are active on the international front. It is the combined efforts of governments (federal, provincial and municipal), industry, universities and colleges,and other research institutions that drive R&D in Canada and connect it to the country's national growth and wealth creation agenda. The international dimension is critical: Canadian innovators must be able to quickly translate new knowledge into commercial success and access the global marketplace to grow and expand.
• In addition to the United States, the EU, and Japan, countries such as Brazil, India and China are becoming important players in innovation. All are competitors but could also be good partners. One of the challenges is to ensure a balanced approach between the established S&T markets, which are currently delivering results, and the emerging economies, where longer-term benefits are expected.

4.2.1.4.2 Plans and Priorities for the Promotion of Foreign Direct Investment and S&T Cooperation Program Activity

The department will contribute to the following key priorities under this program activity:

• strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements;
• assisting Canadian business in competing successfully for global opportunities;
• promoting Canada as a globally competitive location and partner for investment, innovation and value-added production; and
• reinforcing the department's organizational effectiveness through continuous improvement in policies, programs and partnerships and in the skills, knowledge and dedication of its employees.

Each of the strategic priorities for this program activity is supported by one or more one- to three-year outcomes. The department will advance the achievement of these outcomes by undertaking the following specific actions, listed below by strategic priority.

Strengthening secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements

• The department will develop and manage key international S&T commercialization relationships through collaborative frameworks and agreements that actively seek bilateral complementarities (Brazil, India and China).

Assisting Canadian business in competing successfully for global opportunities

• The department will facilitate the expansion of Canadian affiliates of foreign firms.
• By attracting FDI, it will improve Canadian firms' access to regional or global distribution chains.
• It will develop new approaches to facilitate two-way investment.
• The department will develop effective science and technology networks in key areas by connecting SMEs, science-based departments and agencies, universities and research institutions with counterparts abroad.
• It will implement and manage the International Science and Technology Partnerships Program (ISTPP) to maximize cooperative efforts with key technology partners.
• It will facilitate improved commercialization outcomes in foreign markets.

Promoting Canada as a globally competitive location and partner for investment, innovation and value-added production

• The department will develop and implement a proactive investment strategy that addresses national objectives by identifying and targeting investment opportunities in priority sectors and major markets.
• It will provide greater direction to missions abroad regarding which companies to target as well as how to track prospecting activities and measure results achieved.
• It will continue to strengthen investment partnerships with other federal departments and the provincial and territorial governments to deliver a strategic, streamlined and effective approach to attracting foreign direct investment to Canada.
• It will continue to enhance the ability of Canadian communities to attract FDI and help them become more effective in dealing with foreign investors.
• It will collaborate with provincial/territorial partners to identify federal/provincial policies that impede FDI in Canada and will develop action plans to address these impediments strategically.
• It will take a leadership role amongst partners in promoting Canada as a globally competitive location and partner for investment, innovation and value-added production, with increased emphasis on communicating Canada's competitive advantages in priority sectors.
• It will build strong and effective science and technology partnerships with key Canadian S&T stakeholders.
• It will organize signature S&T events and activities and coordinate Canada's participation in key S&T world conferences.
• It will promote foreign technology-based investments in Canada and facilitate access to foreign sources of venture capital.
• It will gather and provide S&T insights to contribute to the development of Canada's domestic innovation policy.

A department that is recognized as modern and agile

• The department will provide investment promotion training and capacity building throughout its operations and amongst investment partners to improve Canada's ability to attract FDI.
• It will develop and enhance international S&T-related tools and training opportunities for its S&T counsellors and trade commissioners.

4.2.1.4.3 Planned Spending: Financial and Human Resources Utilization (see, Part IV, section 4.3, table 4.1)

Financial Resources ($ millions)
Year	2006-2007	2007-2008	2008-2009
Total Planned Spending	12.2	14.1	14.1

Human Resources (FTEs)
Year	2006-2007	2007-2008	2008-2009
Full Time Equivalents	71	71	71

4.2.1.4.4 Performance Monitoring

Assisting Canadian business in competing successfully for global opportunities
Planned outcomes:	As demonstrated by:
Canadian business is positioned effectively to grow through global commerce	Increase in the value and market share of exports and Canadian direct investment abroad Level and growth of sales of foreign affiliates of Canadian firms in relation to Canadian exports Number of new exporters active in foreign markets Number of exporters expanding their activities to new foreign markets
Business opportunities and intelligence are generated to match Canadian capabilities with specific foreign business needs	Value, volume and quality of business leads identified and disseminated to business clients
Delivery of client services (e.g. timely and high-quality market information, key contacts, business advice and referrals to support sound, informed international business decisions) is optimized	Percentage of, and degree to which, clients are satisfied with timeliness and quality of services, products and events Increase in volume, consistency and quality of client services delivered
Promoting Canada as a globally competitive location and partner for investment, innovation and value-added
Planned outcomes:	As demonstrated by:
New and expanded investments in Canada are made by international businesses Foreign investors and innovators have increased knowledge of, and interest in, Canadian capabilities and advantages	Increase in the number and value of foreign investments in Canada to which the department contributed Number and quality of investment prospects identified and disseminated to the provinces and territories Number of events and other proactive initiatives in which Canadian capabilities are showcased Improved perceptions of Canadian capabilities and advantages by foreign investors and influencers Improved international competitiveness, as evidenced by ranking in international benchmarking studies
S&T partnering opportunities and intelligence are generated to match Canadian and foreign S&T needs and capabilities	Number, nature and scope of S&T partnering opportunities identified and realized between Canada and S&T priority partner countries
Enhanced international R&D collaborations and commercializations involving Canadian researchers and business partners	Number and scope of S&T partnerships achieved through established mechanisms and initiatives
A department that is recognized as modern and agile
Planned outcomes:	As demonstrated by:
Capacity to deliver services to clients through initiatives focusing on service quality, efficiency and other dimensions of modern management is improved	Client satisfaction ratings reflecting the quality, timeliness, relevance and utility of services provided Perceptions of employees on the quality, utility and relevance of training programs
Programs and services that respond effectively to the needs of the Canadian business community are enhanced	Level of adherence to service standard for response time Level of use of innovative tools to manage client service requests and volume of self-service by clients

4.2.1.5 Supporting Activity: Strategic Policy and Planning

4.2.1.5.1 Description of the Supporting Activity and Related Planning Context

Supporting Activity: integrating aspects of the department's mandate regarding trade, commerce and investment in order to provide expert advice to the Minister and Deputy Minister on policy development in relation to overall Government of Canada priorities, while incorporating the functions of liaison and consultation with partners inside and outside government.

One of the core functions of the Strategic Policy and Planning supporting activity is to ensure a comprehensive integration of the various program activities across the department.

The Bureau of the Chief Economist, which is contained within this activity, provides the department with the necessary economic research capacity and analytical support for our various program activities. It is also the focal point for all statistical support on trade, commerce and investment.

4.2.1.5.2 Plans and Priorities for the Strategic Policy and Planning Supporting Activity

The department will contribute to the following key priorities under this supporting activity:

• increasing Canadian awareness of the challenges and opportunities presented by global commerce; and
• reinforcing the department's organizational effectiveness through continuous improvement in policies, programs and partnerships and in the skills, knowledge and dedication of its employees.

Each of the strategic priorities for this program activity is supported by one or more one- to three-year outcomes. The department will advance the achievement of these outcomes by undertaking the following specific actions, listed below by strategic priority.

Increasing Canadian awareness of the challenges and opportunities presented by global commerce

• The department will develop outreach and consultation programs with the provinces and territories as well as with civil society.
• It will consult key domestic stakeholders, including national and sub-national levels of government, the service industry and civil society, using a range of consultative mechanisms, including meetings of C-Trade (the official body that allows for provincial input during negotiation of international trade agreements) and the joint working group with the Federation of Canadian Municipalities, other ad hoc meetings and online surveys.

A department that is recognized as modern and agile

• The department will lead interdepartmental policy coordination on key international commerce issues.
• It will sustain public and stakeholder networks as well as federal/provincial/territorial and municipal collaboration and exchange business information and intelligence to strengthen the department's strategic capacity in policy and business development.

4.2.1.5.3 Planned Spending: Financial and Human Resources Utilization

This information is integrated within the Program Activities of the International Trade Component of the department.

4.2.1.5.4 Performance Monitoring

Increasing Canadian awareness of the challenges and opportunities presented by global commerce
Planned outcomes:	As demonstrated by:
Domestic buy-in to advance Canadian commerce interests is enhanced	Level of consensus among domestic stakeholders in support of Canada's global commerce strategy
A department that is recognized as modern and agile
Planned outcomes:	As demonstrated by:
Capacity to deliver services to clients through initiatives focusing on service quality, efficiency and other dimensions of modern management is improved	Client satisfaction ratings reflecting the quality, timeliness, relevance and utility of services provided Perceptions of employees on the quality, utility and relevance of training programs

4.3 Financial and Other Tables

List of Tables

4.1 Table: Planned Spending and Full Time Equivalents (FTEs)

4.2 Table: Resources by Program Activity

4.3 Table: Voted and Statutory Items Listed in the Main Estimates

4.4 Table: Services Received Without Charge

4.5 Table: Summary of Capital Spending by Program Activity

4.6 Table: Source of Respendable and Non-Respendable Revenue

4.7 Table: Resource Requirement by Branch or Sector

4.8 Table: Horizontal Initiatives

4.9 Table: Sustainable Development Strategies

4.10 Table: Internal Audits and Evaluations

Table 4.1: Planned Spending, Personnel and Full Time Equivalents (FTEs) for International Trade
	Forecast Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Trade Policy and Negotiations	45.8	51.7	60.7	45.7
World Markets / Commercial Relations	0.0	41.2	50.7	50.7
International Business Development*	82.1	103.6	75.9	75.9
Promotion of Foreign Direct Investment and S&T Cooperation	11.3	10.6	12.5	12.5
Bilateral Relations	54.2	0.0	0.0	0.0
Budgetary Main Estimates (gross)	193.4	207.0	199.8	184.8
International Business Development*	653.0	209.0	346.0	333.0
Non-Budgetary Main Estimates (gross)	653.0	209.0	346.0	333.0
Less: Respendable Revenue	3.1	3.1	3.1	3.1
Total Main Estimates**	843.3	412.9	542.7	514.7
Adjustments
Financial assistance to softwood lumber industry associations to help offset legal costs incurred in the softwood lumber trade dispute with the U.S.	18.3	0.0	0.0	0.0
Funding for litigation costs related to the softwood lumber trade dispute with the U.S.	12.9	0.0	0.0	0.0
Funding to be provided to eligible recipients for research and development costs related to new business technologies (International Science and Technology Partnerships Program)	0.2	2.3	3.3	3.8
Initiatives to support the implementation of a common electronic infrastructure and multi-channel service delivery strategy (Government On-Line)	1.0	0.0	0.0	0.0
Severance and maternity forecast	0.4	0.0	0.0	0.0
Collective bargaining agreements	3.3	0.0	0.0	0.0
Expenditure Review Committee - procurement savings	(0.2)	(0.7)	0.0	0.0
Expenditure Review Committee	(1.4)	0.0	0.0	0.0
2005 Federal Budget	4.0	0.0	0.0	0.0
Total Adjustments	38.5	1.6	3.3	3.8
Total Planned Spending***	881.8	414.5	546.0	518.5
Less: Non-Respendable revenue	18.2	16.8	16.7	16.7
Plus: Cost of services received without charge	14.0	15.1	15.3	15.1
Net Cost of Department	877.6	412.8	544.6	516.9
Personnel - Full Time Equivalents (FTEs)	1,316	1,369	1,369	1,369
*Note:International Business Development includes budgetary and non-budgetary statutory payments to Export Development Canada (EDC) in the amount of 2005-2006 $18.9M, 2006-2007 $18.3M, 2007-2008 $17.5M and 2008-2009 $17.5M budgetary. And 2005-2006 $653M, 2006-2007 $209M, 2007-2008 $346M, and 2008-2009 $333M. These amounts are for Canada account coverage and not available for any operational use by the department. **Note: The allocation of the corporate services to the program activities will differ from the Main Estimates since the method of allocation has been revised. For the Main Estimates, the budgetary and non-budgetary portion of EDC was included in the calculation of the percentages by program activity. The methodology has been changed to exclude EDC since DFAIT does not provide services to EDC. ***Note: Due to rounding, figures may not add to totals shown.

Table 4.2: Resources by Program Activity
2006-2007
	Budgetary							Non- Budgetary	Total Main Estimates	Adjustments (planned spending not in Main Estimates)-	Total Planned Spending
Program Activity	Operating	Capital	Grants	Contributions and Other Transfer Payments	Gross	Respend- able Revenue	Net	Loans, Investments and Advances
Trade Policy and Negotiations	51.1	0.6	0.0	0.0	51.7	0.0	51.7	0.0	51.7	0.0	51.7
World Markets / Commercial Relations	41.1	0.0	0.0	0.0	41.1	0.0	41.1	0.0	41.1	0.0	41.1
International Business Development	96.5	0.8	2.0	4.3	103.6	3.1	100.5	209.0	309.5	0.0	309.5
Promotion of Foreign Direct Investment and S&T Cooperation	6.0	0.0	0.0	4.5	10.5	0.0	10.5	0.0	10.5	1.6	12.2
Total	194.7	1.4	2.0	8.8	206.9	3.1	203.8	209.0	412.8	1.6	414.5
Note: Due to rounding, figures may not add to totals shown. Note: The $309.5M includes EDC amounts of $18.3M budgetary and $209.0M non-budgetary.

Table 4.3: Voted and Statutory Items Listed in the Main Estimates ($ millions)
Vote or Statutory Item	Truncated Vote or Statutory Wording	2006-2007 Main Estimates	2005-2006 Main Estimates
15	Operating expenditures	156.0	141.4
20	Grants and contributions	10.9	10.9
(S)	Minister of International Trade salary and motor car allowance	0.1	0.1
(S)	Contributions to employee benefit plans	18.6	18.9
(S)	Payments to Export Development Canada for the purpose of facilitating and developing trade between Canada and other countries under the terms of the Export Development Act (Budgetary)	18.3	18.9
(S)	Payments to Export Development Canada for the purpose of facilitating and developing trade between Canada and other countries under the terms of the Export Development Act (Non-Budgetary)	209.0	653.0
	Total Department	412.9	843.2
Note: Due to rounding, figures may not add to totals shown.

Table 4.4: Services Received Without Charge ($ millions)
2006-2007	Total
Accommodation provided by Public Works and Government Services Canada (PWGSC)	7.1
Contributions covering the employer's share of employees' insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat (TBS) (excluding revolving funds)	7.3
Workers' compensation coverage provided by Human Resources and Skills Development Canada (HRSDC)	0.1
Salary and associated expenditures of legal services provided by the Department of Justice Canada (JUS)	0.6
Other
Total 2006–2007 Services Received Without Charge	15.1
Note: Due to rounding, figures may not add to totals shown.

Table 4.5: Summary of Capital Spending by Program Activity ($ millions)
Program Activity	Forecast Spending 2005-2006	Planned Spending 2006-2007	Planned Spending 2007-2008	Planned Spending 2008-2009
Trade Policy and Negotiations	0.5	0.6	0.6	0.6
World Markets / Commercial Relations	0.0	0.0	0.0	0.0
International Business Development	0.8	0.8	0.8	0.8
Promotion of Foreign Direct Investment and S&T Cooperation	0.0	0.0	0.0	0.0
Total	1.3	1.4	1.4	1.4
Due to rounding, figures may not add to totals shown. Explanatory notes: Planned spending is spending that a department may commit to in the future but has not necessarily committed to now, and for which it has some form of approval (Cabinet, TB submission). Typically, these amounts are found in the "adjustments" row in the Estimates and out-year columns of the RPP Planned Spending table. Forecast spending is spending that the department is committed to, or intends to pursue. Typically, the inclusion of Supplementary Estimates amounts in the forecast column in the RPP for the current fiscal year falls into this category. Clearly the two overlap, since forecast spending constitutes part of planned spending. The difference between the two is the degree of certainty.

Table 4.6: Source of Respendable and Non-Respendable Revenue ($ millions)
Respendable Revenue	Forecast Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008	Planned Revenue 2008-2009
International Business Development
Trade fairs and trade / investment technology missions	3.1	3.1	3.1	3.1
Non-Respendable Revenue	Forecast Revenue 2005-2006	Planned Revenue 2006-2007	Planned Revenue 2007-2008	Planned Revenue 2008-2009
Trade Policy and Negotiations
Import and export permit fees	8.0	8.0	8.0	8.0
International Business Development
Contributions repaid under the Program for Export Market Development	3.4	2.0	1.9	1.9
Strategic Policy, Communications and Corporate Planning
Employee rent shares	5.8	5.8	5.8	5.8
Adjustment to previous years' expenditures	1.0	1.0	1.0	1.0
	6.8	6.8	6.8	6.8
Total Non-Respendable Revenue	18.2	16.8	16.7	16.7
Total Respendable and Non-Respendable Revenue	21.3	19.9	19.8	19.8
Note: Due to rounding, figures may not add to totals shown.

Table 4.7: Resource Requirement by Branch ($ millions)
Program Activity
Branch	Trade Policy and Negotiations	World Markets / Commercial Relations	International Business Development	Promotion of Foreign Direct Investment and S&T Technology	Total Planned Spending
Minister's and Deputy Minister's Offices	1.0	1.0	1.8	0.2	3.8
Trade Policy and Negotiations	48.6	0.0	0.0	0.0	48.6
World Markets	0.0	37.9	0.0	0.0	37.9
Business Development and Chief Trade Commissioner	0.0	0.0	46.4	0.0	46.4
Investment, Science and Technology	0.0	0.0	0.0	11.5	11.5
Communications, Strategic Policy and Business Planning	2.1	2.5	34.0	0.5	39.1
Export Development Canada	0.0	0.0	227.3	0.0	227.3
Total	51.7	41.2	309.5	12.2	414.5

Table 4.8: Horizontal Initiative
Name of Horizontal Initiative: Team Canada Inc (TCI)
Name of Lead Departments: DFAIT, Agriculture and Agri-Food Canada, Canadian Heritage, Industry Canada and Natural Resources Canada (executive members) plus other federal departments and agencies.
Start Date:1997
End Date: Ongoing
Total Federal Funding Allocation: The initiative had an annual budget of $1.3 million. Federal partner members of TCI contribute $50,000 each per year, with the aforementioned executive members contributing $150,000 each. Other partners contribute a range of products and services that address the various needs of Canadian exporters.
Description of the Initiative: TTeam Canada Inc is a network of federal departments and agencies working with the provinces and territories and other partners to help Canadian businesses succeed in world markets. TCI's purpose is to provide the Canadian business community with single-window access to fully integrated Government of Canada services with a view to enhancing exporter capability and preparedness in international market development. Government of Canada priorities that are addressed by TCI include: Raising the stature of Canada in the world; Assisting Canada's progress as a knowledge economy in a global context; Cooperating with other levels of government; Improving the competitiveness and productivity of Canadian business; and Supporting the growth of Aboriginal businesses.
Shared Outcome(s): According to the Common Performance Measurement Framework developed by TCI, common or shared outcomes (immediate and intermediate) are as follows: Immediate Outcomes: Client satisfaction maintained or improved Increased engagement of target groups with TCI services Improved access to export support products and services across all regions of Canada Intermediate Outcomes: Increased knowledge by client firms of the mechanics of exporting Increased client awareness of business opportunities abroad Increased involvement of service delivery partners Expenditures totalling $1.3 million in 2006-2007 will support the above shared outcomes. Due to the nature of the outcomes (i.e. diverse activities by multiple partners collectively contribute to a given outcome), it is impossible to allocate specific funding amounts to each. The annual report of Team Canada Inc for the year ending March 31, 2005, can be ordered by calling 1 888 811-1119.
Governance structure(s): A Management Board (currently chaired by International Trade) is responsible for planning, directing, managing and implementing this horizontal program. Day-to-day operations of TCI are managed by the TCI Directorate (consisting of five full-time staff), which is accountable to the host department (currently DFAIT) management structure. The TCI Directorate is responsible for directing and managing TCI Directorate human and financial resources, and implementing TCI's annual action plan. The Management Board consists of a Director General level official (or equivalent) from each TCI federal member organization. There is also an Executive Committee, which consists of the five DG-level Management Board representatives from the five core members of TCI (i.e. Agriculture and Agri-Food Canada, Canadian Heritage, DFAIT, Industry Canada, and Natural Resources Canada). Each TCI partner provides specific products and services depending upon its mandate, which could focus on a particular function (e.g. export insurance), industry sector (e.g. natural resources) or geographic area (e.g. Alberta).

Federal Partners Involved	Name of Program	Total Allocation	Planned Spending 2006-2007	Expected Results for 2006-2007
All 16 of TCI's members contribute to all programs, and contributions are pooled.	Online Export Portal	$450,000	$450,000	See outcomes listed above; all of these activities contribute to the achievement of these outcomes.
	1-888 Export Information Service	$350,000	$350,000
	Information products	$230,000	$230,000
	Regional trade networks	$270,000	$270,000
Total		$1,300,000	$1,300,000
Note: Due to rounding, figures may not add to totals shown. Contact Information: Michael Calvert, Director, Team Canada Inc Tel.: (613) 952-7396 Email: calvert.michael@exportsource.ca

Table 4.9: Sustainable Development Strategy 1. How does your department / agency plan to incorporate SD principles and values into your mission, vision, policy and day-to-day operations? Development of ongoing training and opportunities for workshops and dialogue on SD issues at all working levels within International Trade builds a foundation for incorporating SD principles and values into day-to-day operations. Participation in the Interdepartmental Network on Sustainable Development Strategies (INSDS) by departmental officials up to and including the Assistant Deputy Minister that informs International Trade Canada of broader government-wide SD initiatives and objectives, to which we can align. Establishment of an International Trade Canada SDS Steering Committee as the primary mechanism for internalizing SD commitments on trade and commerce and overseeing the more thorough integration of measurable outcomes of trade and related targets in the departmental business planning and reporting cycle. SDS considerations are also built into departmental RPP and DPR processes. Agenda 2006 can be found at http://www.international.gc.ca/trade/sd-dd//sd-dd/menu-en.asp

2. What goals, objectives and targets from your most recent SDS will you be focusing on this coming year? How will you measure your success? International Trade specific goals, objectives and targets from Agenda 2006 that will be the focus of the remaining months of 2006 are listed below. Goal 1: Ensure greater integration of sustainable development in departmental policies, programs and operations. Objective 2: Greater policy integration and increased support for SD across DFAIT. Target: Name an SD champion at the Assistant Deputy Minister or Deputy Minister level, and an SD advocate for each bureau. Objective 3: Improved internal communications on SD. Target: Develop communication products promoting Canadian sector SD capabilities to foreign buyers. Goal 2: Ensure better integration of sustainable development considerations in our multilateral, regional and bilateral relations. Objective 2: Improved integration of environmental considerations in trade promotion and financing. Target: Support the development and marketing of innovative pollution-reducing technologies. Goal 4: Implement the two departments' priority commitments related to the World Summit on Sustainable Development: Johannesburg 2002. Objective 4: In accordance with the Doha Declaration, capacity building and structural reform within the World Trade Organization (WTO) for developing countries to reap the long-term benefits that ambitious trade liberalization can generate. Target: Continue efforts to find appropriate solutions as a priority to outstanding implementation-related issues regarding the mandates Ministers gave in paragraph 12 of the WTO Doha Ministerial Declaration and the Doha Decision on Implementation-Related Issues and Concerns. This specifically includes issues where ministers provide a specific negotiating mandate (as cited in paragraph 12 (a) of the Doha Ministerial Declaration). In addition, these efforts will also include all outstanding implementation issues under paragraph 12(b) of the Declaration, including on issues related to the extension of the protection of geographical indications provided for in Article 23 of the TRIPS Agreement to products other than wines and spirits and those related to the relationship between the TRIPS Agreement and the Convention on Biological Diversity. Success in meeting SDS commitments is measured in the following ways. Annual progress in achieving the targets in Agenda 2006 is summarized in the 2004-2005 and 2005-2006 Departmental Performance Reports. For more substantive annual reporting, see Progress Reports 2004-2005 and 2005-2006 on the departmental website at http://www.dfaitmaeci. gc.ca/sustain/SustainDev/overview-en.asp. These reports are submitted to the Commissioner for the Environment and Sustainable Development (CESD). Analysis of the progress in relation to the outcomes is currently underway. Finally, in preparation for the next SDS, International Trade has established an SDS Steering Committee to discuss ways in which divisions can monitor and measure SDS commitment outcomes.

3. Identify any Sustainable Development tools, such as Strategic Environmental Assessments or Environmental Management Systems, that will be applied over the next year. International Trade anticipates applying the following SD tools over the next year: Voluntary Approaches: Promotion of Corporate Social Responsibility (CSR) voluntary codes of conduct to Canadian stakeholders. Information and Awareness: National Contact Point for the implementation of the OECD Guidelines on Corporate Social Responsibility for Multinational Enterprises involving promotional activities with stakeholders and the public. Command and Control: Strategic Environmental Assessments of policy, plan and program proposals in line with the Cabinet Directive, including trade and investment agreements and Memoranda to Cabinet.

Table 4.10: Internal Audits and Evaluations
International Trade Audit Plans for 2005-2007 - Modified for input into the 2006-2007 Report on Plans and Priorities
Financial Audits1
Project	Description / Objective	2005-2006	2006-2007	Time Frame
Audit of Accounts Payable and Accrued Liabilities Assurance Engagement	To determine the extent to which Accounts Payable and Accrued Liabilities are being accounted for in accordance with generally accepted accounting principles (GAAP) and that internal controls are in place and working effectively.	X		4th Quarter
Audit of Financial Functions at Missions Abroad and HQ Assurance Engagement	To determine the extent to which the department has sufficient financial expertise at missions and HQ. The audit will include an examination of the position qualifications, recruiting methods and training program.		X	2nd Quarter
Audit of Accounts Payable and Accrued Liabilities Assurance Engagement	To determine the extent to which Accounts Payable and Accrued Liabilities are being accounted for in accordance with generally accepted accounting principles (GAAP) and that internal controls are in place and working effectively.	X		4th Quarter
Audit of Financial Functions at Missions Abroad and HQ Assurance Engagement	To determine the extent to which the department has sufficient financial expertise at missions and HQ. The audit will include an examination of the position qualifications, recruiting methods and training program.		X	2nd Quarter
Audit of Foreign Operations and International Banking Assurance Engagement	To determine the extent to which the Foreign Operations and International Banking Division: exercises controls on the disbursement of funds to missions; assesses financial risk at missions and prepares risk mitigation strategies; provides proactive advisory services; and identifies financial management training requirements.		X	3rd – 4th Quarter
Audit of Recoverable / Payables Assurance Engagement	To determine the extent to which the handling of other government department (OGD) transactions at missions is accurate and consistent, as well as how these amounts are recovered/paid through HQ from/to our partner departments.		X	1st Quarter
Follow-up of Assurance Audits Assurance Engagement	To determine the extent to which recommendations resulting from six financial audits performed over the past several years have been implemented. The six audits were: Cashier's Office; Accountable Advances; Accounts Receivable; Specified Purpose Accounts; Capital Assets; and Prepaid Expenses.	X		3rd Quarter
1Once International Trade's financial management accountabilities have been defined, their inclusion in the scope of the above audits will be determined. Results and recommendations will be communicated to the department.
Information Management Audit
Project	Description / Objective	2005-2006	2006-2007	Time Frame
Audit of Network "Content" SecurityAssurance Engagement	The broad objective of this audit is to provide assurance of the integrity of the information on the internal computer networks. More specifically, the audit will: assess the existence and effectiveness of security controls; ensure compliance with government requirements; ensure that no protected information is exposed or compromised; and identify and promote best security practices.		X	3rd – 4th Quarter
Grants and Contributions Program Audits
Project	Description / Objective	2005-2006	2006-2007	Time Frame
Technical Assistance to Developing Countries in Trade Negotiations	To provide assurance on the proper management and administration of departmental grants and contributions. Assurance engagement.	X		3rd – 4th Quarter
Assistance to Softwood Lumber Industry Association			X	TBD
Recipient Audits
Project	Description / Objective	2005-2006	2006-2007	Time Frame
Community Investment Services Program		X		1st – 4th Quarter
			X	1st – 4th Quarter
Forest Products Association of Canada		X		3rd Quarter
Going Global - Science and Technology	To determine the extent of recipient's compliance with the terms and conditions of the agreement and ensure that financial reports appropriately account for the use of funds while demonstrating that funds were used for the intended purpose and that value has been received.	X		1st – 4th Quarter
	Assurance engagements.		X	1st – 4th Quarter
Mission Inspections
Project	Description / Objective	2005-2006	2006-2007	Time Frame
Mission Inspections Consulting Engagements	To provide management with an assessment of mission operations and management controls. These engagements provide advice to missions, examine compliance with policies and regulations, and examine methods to enhance performance. Over the course of several mission inspections, work will be conducted that targets, on a risk basis, particular horizontal processes, subjects, issues and questions. The results of the inspections will be accumulated and analyzed to enable the development of statements of assurance on the selected horizontal topics.			Preparation fieldwork reporting
Inspection Tours	Accra, Athens, Barcelona, London, Madrid	X		1st -2nd Quarter
	Bandar Seri Begawan, Bangkok, Jakarta, Abu Dhabi, Dubai	X		3rd Quarter
	Riga, Tallinn, Vilnius	X		4th Quarter
	Bucharest, Tel Aviv, Ramallah, Tunisia, Tripoli	X		4th Quarter
	Seoul, Taipei, Colombo	X		4th Quarter
	Kuwait, Riyadh, Kuala Lumpur		X	1st Quarter
	Washington, Wash-OAS, Philadelphia		X	1st Quarter
	Moscow, St. Petersburg, Almaty		X	2nd Quarter
	Brasilia, São Paulo, Rio de Janeiro, Belo Horizonte, Buffalo		X	3rd Quarter
	Dakar, Yaoundé, Geneva		X	3rd Quarter
	Helsinki, Warsaw, Prague, Bratislava		X	4th Quarter
	Havana, Port of Spain, Bogotá		X	4th Quarter

International Trade Evaluations Planned for 2006-2007
Name of Evaluation	Description	2005-2006	2006-2007	Start Date	End Date
Canadian Foreign Service Institute (CFSI)	This analysis provides an in-depth review of the CFSI after 15 years of operation: its relevance, cost-effectiveness and results achieved. Recommendations will aim to guide management in revitalizing the mandate of the Institute to meet the challenges of a new international environment.	X		August 2005	May 2006
Country Studies	Development and validation of a methodology for country studies. In support of the "whole of government" approach, the country studies will be comprehensive reviews of our involvement with the selected countries from both a Headquarters and a field perspective. They will aim to show how our various programs contribute to reaching our goals.		X	May 2006	January 2007
	The Evaluation Division will pilot test the methodology and tools developed by completing a country study in a country where the planning process has been in place.		X	January 2007	July 2007
Dispute Management	The evaluation will examine the relevance and effectiveness of the Canada-U.S. Agreement, as well as lessons learned. Theme selected: wheat.		X	May 2006	October 2006
Enhanced Representation Initiative (ERI)-USA	This evaluation will look at the design and quality of the implementation and assess the effectiveness of the ERI as a horizontal initiative.	X		July 2005	May 2006
Hub and Spoke	This review will assess the effectiveness of the existing delivery models in different regions and identify the factors that facilitate and impede the success of the Hub and Spoke approach (i.e. relations between main and satellite offices).		X	September 2006	March 2007
IBD Germany	Evaluation of the International Business Development (IBD) trade program in Germany to assess the relevance of the delivery mechanisms and alignment of resources with International Trade and partners' priorities.	X		March 2006	September 2006
Knowledge Management	As a follow-up to the IM/IT (Information Management, Information Technology) Needs Analysis Study, this study will examine how the department acquires, organizes, stores and disseminates knowledge in order to provide recommendations on how to improve knowledge management.		X	April 2006	December 2006
Trade and Development	This policy review will examine the relevance of the policy.	X		January 2006	May 2007
Trade Regional Offices	Evaluation of the relevance of the trade regional offices and the value added that the network brings to business development activities at large.		X	September 2006	February 2007

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