Treasury Board of Canada Secretariat
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Foreign Affairs and International Trade Canada - Report


Ministers’ Message

The Honourable Ed Fast

The Honourable Ed Fast
Minister for International Trade and Minister for the Asia-Pacific Gateway

The Honourable John Baird

The Honourable John Baird
Minister of Foreign Affairs


We are pleased to present the 2012-13 Report on Plans and Priorities for Foreign Affairs and International Trade Canada (DFAIT). This report provides a summary of the department's operational priorities for the coming year with a focus on advancing the government's Global Commerce Strategy and international prosperity and security agenda in five key areas.

Expanding trade and opening new markets for Canadian businesses will remain a core priority for DFAIT. We will intensify our pursuit of new and deeper trading relationships with large, dynamic and fast-growing economies like China, India, and Brazil. We will ensure that Canada's brand is used to its greatest advantage in promoting our trade objectives, including the broadening of our trading relationships and the conclusion of trade agreements with the European Union, India and Japan. We will continue to pursue our efforts to join the Trans-Pacific Partnership at the earliest opportunity, and focus on capacity building in the Americas.

Our second priority will be to continue reinforcing an already robust Canada-U.S. relationship. We will advance trade and security objectives through the Canada-U.S. Shared Vision for Perimeter Security and Economic Competitiveness, and will continue to promote Canada as a supplier of choice for energy. We will expand our commercial engagement in the broader hemisphere while working with countries such as Mexico and Haiti to strengthen security and the rule of law.

Promoting democracy and respect for human rights, and contributing to effective global governance and international security is our third priority. We will support peaceful, democratic transitions and stabilization in the Arab world, and the launch the operations of the Office of Religious Freedom. We will continue to address international security challenges, including transnational crime and terrorism, cyber security, and the proliferation of weapons of mass destruction.

Our fourth priority will be further implementation of Canada's Arctic foreign policy. This will include working to resolve boundary issues, securing international recognition for the full extent of Canada's extended continental shelf, and strengthening the operations and policy role of the Arctic Council, which Canada will chair in 2013-15.

Finally, we will work to modernize consular services, collaborate with partner ministries to improve visa granting mechanisms, and introduce a new, more secure ePassport.

For more details on the government's international agenda and the department's work we invite all Canadians to visit the Foreign Affairs and International Trade Canada website (www.international.gc.ca/).

Section I: Organizational Overview

Raison d’être

DFAIT is responsible for the conduct of Canada's international affairs, including international trade and commerce. It advances Canada's interests internationally, shapes Canada's responses to international issues and events, manages bilateral and multilateral relationships and delivers programs worldwide. It provides commercial, consular and passport services to Canadians at home and abroad and manages Canada's global network of missions in 107 countries, which serves as the Government of Canada's international platform.

Responsibilities

The department's mandate is set out in the Department of Foreign Affairs and International Trade Act and can be summarized as follows:

  • Conduct all official diplomatic communications and negotiations between the Government of Canada and other countries and international organizations; (links to Strategic outcome [SO] 1)
  • Coordinate Canada's economic relations and promote Canadian international trade and commerce; and, (links to SO 1 / SO 2)
  • Manage Canada's diplomatic and consular missions and services abroad, including the administration of the Canadian Foreign Service. (links to SO 3)

The department advances Canada's priorities abroad by undertaking diplomacy and programming in support of international peace and security, democracy, human rights and the rule of law, and provides whole-of-government coordination in response to unanticipated events, such as international crises and natural disasters abroad.

DFAIT generates international opportunities for Canadian business by negotiating agreements to open and expand markets, facilitating two-way trade and investment, and encouraging innovation through international science and technology partnerships.

Strategic outcomes and program activity architecture

DFAIT's program activity architecture consists of three strategic outcomes, supported by seven program activities, as well as internal services, which support all program activities and strategic outcomes.

Program Activity Architecture

Organizational priorities











Risk Analysis

DFAIT is among the most complex departments in the Government of Canada, responsible for the conduct of Canada's international affairs, including global trade and commerce. It faces a particularly wide array of risks arising from uncertainties in the international, domestic and internal environment in which it operates. From natural disasters to security threats at home and abroad, DFAIT success in fulfilling its mandate largely depends on its ability to manage risks related to developments beyond its control.

Through its 2012-13 Corporate Risk Profile, DFAIT has identified four key corporate risks that could affect its ability to deliver results against the plans and priorities identified in this RPP in all three of its strategic outcomes. These risks will be actively managed by DFAIT's senior managers, who will be accountable to report quarterly to the Deputy Ministers and governance boards on their progress in reducing the department's risk exposure. These are described below.

Corporate risk 1: Emergency response: Maintaining services to Canadians abroad in the face of emergencies

DFAIT will enhance its emergency preparedness to reduce the risk that natural disasters, hostile actions or civil unrest at mission(s) could significantly disrupt departmental operations. It will reinforce its capacity to respond rapidly and efficiently to emergencies by improving consular environmental scanning and emergency response structures and further enhancing emergency management training for employees. It will work to enhance partnerships with key federal departments involved in emergency management, and reach out to Canadians abroad with better information on safe travel practices. DFAIT will actively manage this risk through its Operations Committee, supported by the assistant deputy minister (ADM) for Consular, Security and Emergency Management and relevant geographic colleagues.

Corporate risk 2: Cyber threats: Ensuring the security of electronic information

DFAIT continues to face challenges arising from the risk of cyber-attacks. A successful breach of the department's IT system could result in the leaking of sensitive information, the blocking of access to IT systems and the interruption of communications and the delivery of services to Canadians. DFAIT will work with Shared Services Canada, given their new ownership of information technology (IT) infrastructure, to mitigate this risk by developing investment plans to ensure the timely implementation of DFAIT's IT Infrastructure Renewal Project. DFAIT will also work towards providing better training in security of information to its staff, including locally engaged staff, and work to improve compliance through better enforcement. This risk will be managed through DFAIT's Operations Committee, supported by the ADM for Consular, Security and Emergency Management and the ADM, International Platform Branch.

Corporate risk 3: Personnel security: Protecting our staff

The department will work to improve the safety and security of its overseas operations to mitigate the risk that inadequate security could result in severe injury or death of Canadian personnel (including Canada-based and locally engaged employees), dependents or contractors. It will continue to conduct extensive threat and risk assessments and enhance its security infrastructure. It will provide employees with enhanced personal security training, including by working with its partner departments in Canada's network abroad. DFAIT will actively manage this risk through its Operations Committee, supported by the ADM for Consular, Security and Emergency Management and the ADM, International Platform Branch.

Corporate risk 4: Financial and human resource management: Maintaining sustainability while managing change

Maintaining financial and human-resource sustainability while implementing a significant change-management agenda over the next year will present several risks that DFAIT will actively manage through its Resource Management Committee, supported by the chief financial officer as well as the Executive Council. Improving corporate planning, the alignment of resources to priorities, and financial and human resources management has been identified as a corporate priority for 2012-13. DFAIT will strengthen financial training for all managers and employees, and closely monitor spending practices. Active communications with all employees will be crucial to ensuring a good understanding of workforce adjustment strategies and a common vision for the organization. DFAIT will also communicate actively with managers and employees to ensure clarity on their new roles and responsibilities.

Planning Summary

Financial Resources ($ millions)


Human Resources (FTEs1)





Planning Summary Table
($ millions)
Program Activity Forecast
Spending
2011-12
Planned Spending Alignment to Government of Canada Outcomes
2012-13 2013-14 2014-15
1.1 International Policy Advice and Integration 100.3 105.1 93.0 93.5 A safe and secure world
1.2 Diplomacy and Advocacy 1,150.2 1,183.0 939.4 932.5
Total SO 1 1,250.5 1,288.1 1,032.4 1,026.0  



Planning Summary Table
($ millions)
Program Activity Forecast
Spending
2011-12
Planned Spending Alignment to Government of Canada Outcomes
2012-13 2013-14 2014-15
2.1 International Commerce 173.3 172.4 167.5 168.2 A prosperous Canada
2.2 Consular Services and Emergency Management 72.3 65.7 62.9 62.9 A safe and secure world
2.3 Passport Canada 330.7 369.6 285.3 315.6
Total SO 2 576.3 607.7 515.7 546.7  



Planning Summary Table
($ millions)
Program Activity Forecast
Spending
2011-12
Planned Spending Alignment to Government of Canada Outcomes
2012-13 2013-14 2014-15
3.1 Governance, Strategic Direction and Common Service Delivery 701.9 783.1 736.7 687.0 A safe and secure world
3.2. Government of Canada Benefits 223.7 197.1 197.0 197.0
Total SO 3 925.6 980.2 933.7 884.0  

Planning Summary Table
($ millions)
Program Activity Forecast
Spending
2011-12
Planned Spending Alignment to Government of Canada Outcomes
2012-13 2013-14 2014-15
Internal Services 201.5 199.8 194.7 194.7  

Planning Summary Table
($ millions)
Program Activity Forecast
Spending
2011-12
Planned Spending Alignment to Government of Canada Outcomes
2012-13 2013-14 2014-15
Total DFAIT Planned Spending 2,953.9 3,075.8 2,676.5 2,651.4  

Explanation of changes in spending from 2011-12 forecast spending to 2012-13 planned spending

International Policy Advice and Integration: Increase is mainly due to the re-profiling of funds related to the costs of producing Canada's submission to the Commission on the Limits of the Continental Shelf ($3.6 million) and for funds related to the G-8 and G-20 summits to fulfill carbon offsetting programs ($2.2 million), offset by a decrease in statutory employee compensation ($1.2 million).

Diplomacy and Advocacy: Increase is mainly due to a transfer of funds from the Canadian International Development Agency for the Canada Fund for Local Initiatives ($18 million) and forecasted surpluses of $72 million in 2011-12, including: softwood lumber litigation costs to be returned to Treasury Board Secretariat ($16 million); International Assistance Envelope crisis pool ($10 million); and grants and contributions (Vote 10) surpluses related to the Global Partnership Program ($21.9 million) and the Global Peace and Security Fund ($7.7 million). These increases were offset by a $56.5 million reduction in the cost of assessed contributions due to currency fluctuations and the completion of mandates for some assessed contributions.

International Commerce: Slight reduction in spending is related to a $1.3 million increase in funding for the continuation of the International Science and Technology Partnerships Program, offset by a decrease of $1.5 million due to the sunset of funds for the work of an advisory panel on the International Education Strategy.

Consular Services and Emergency Management: Decrease is mainly due to the one-time $6.1 million of capital funds received in 2011-12 for the new Emergency Watch and Response Centre.

Passport Canada: Increase is mainly due to costs related to the implementation of the ePassport as well as the variations in passport application volume and associated costs.

Governance, Strategic Direction and Common Service Delivery: Increase is mainly due to $35.5 million of incremental funding for strengthening security at missions abroad; $41 million of forecasted surplus in Vote 5 capital funds in 2011-12; and $41 million increase due to the forecasted capital budget carry-forward for 2012-13. These increases were offset by a $34 million reduction related to the transfer of IM/IT infrastructure to Shared Services Canada.

Government of Canada Benefits: Reductions are largely related to a decrease in the forecasted cost of funding for pensions, insurance and social security of locally engaged staff at missions abroad ($19.4 million) as well as a decrease from currency fluctuations for foreign service allowances provided to Canada-based employees working at diplomatic missions abroad ($9.6 million).

Internal Services: No significant increases or decreases.

Contribution to the Federal Sustainable Development Strategy (FSDS)

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. The department ensures that consideration of these outcomes is an integral part of its decision-making processes. In particular, through the federal strategic environmental assessment process, any new policy, plan, or program initiative includes an analysis of its impact on attaining the FSDS goals and targets. The results of SEAs are made public when an initiative is announced, demonstrating the department's commitment to achieving FSDS goals and targets.

DFAIT contributes to Theme II: Maintaining Water Quality and Availability, as denoted by the following visual identifier.

Theme II: Maintaining Water Quality and Availability

These contributions are components of PA 1.2: Diplomacy and Advocacy, and are further explained in Section II.

For additional details on DFAIT's activities to support sustainable development please see Section II of this RPP and DFAIT's web site. For complete details, see the Federal Sustainable Development Strategy website.

Expenditure Profile

Actual spending ($ millions) Forecast
Spending
($ millions)
Planned spending ($ millions)
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
2,499.6 2,516.9 2,705.1 2,953.9 3,075.8 2,676.5 2,651.4

Over the period 2008-09 to 2014-15, actual and planned spending varies from a high of $3.1 billion in 2012-13 to a low of $2.5 billion in 2008-09. Included in the department's spending trend is Passport Canada, which in 2012-13 accounted for $67.7 million in planned expenditures and $301.9 million in respendable (or net voted) revenue. Overall, the department's spending profile is as follows: operating costs 57%; grants and contributions 33%; capital costs 8%; and LES pensions 2%.

Expenditure Profile - Spending Trend Graph

Notes:

  1. Actual spending represents the actual expenditures incurred during the respective year, as reported in the Public Accounts.
  2. Forecast spending reflects the total expected expenditures for the 2011-12 fiscal year.
  3. Planned spending reflects funds already approved through the estimates process and as presented in the Annual Reference Level Update. It also includes expected respendable revenues. Planned spending for 2012-13 also includes funding approved in the government fiscal plan, but not yet reflected in the department's reference levels.
  4. Future-oriented financial statements, which provide additional information on 2011-12 forecast spending and 2012-13 planned spending, are included in Section III.

Given DFAIT's international operations, its annual expenditures are influenced by fluctuations in foreign currencies, varying rates of foreign inflation and changes in assessed contributions related to memberships in international organizations. Since fiscal year 2008-09, DFAIT's reference levels have been increased as a result of incremental funding for significant new initiatives, such as: implementation of the Canada-U.S. Softwood Lumber Agreement; establishment of the Counter-Terrorism Capacity Building Program and the Anti-Crime Capacity Building Program; creation of the Consular Services and Emergency Management branch; transfer of the Investment Cooperation program to DFAIT from CIDA; measures to strengthen DFAIT's network abroad and security at missions; and expansion and opening of new missions in key emerging markets.

The increase in spending from 2010-11 to 2011-12 was due primarily to new program authorities for: locally engaged staff (LES) pension, insurance and social security programs; Canada's engagement in Afghanistan; and operating and capital budget carry-forward spending. The increase in planned spending from 2011-12 to 2012-13 is due primarily to new program authorities for Canada's engagement in Afghanistan and estimated operating and capital carry forward spending. The decrease in planned spending from 2012-13 to 2013-14 is mainly due to the sunsetting of funds for the Global Peace and Security Fund and the Global Partnership Program as well as a decrease in Passport Canada's planned spending, attributable to forecasted variations in passport application volumes and associated costs.

Estimates by Vote

For information on our organizational appropriations, please see the Main Estimates.