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Ministers' Message

The Honourable Peter Van Loan Minister for International Trade	The Honourable Lawrence Cannon Minister of Foreign Affairs

It is our distinct pleasure to present the 2009-2010 Departmental Performance Report of Foreign Affairs and International Trade Canada (DFAIT). The following pages describe a wide range of substantive accomplishments, all of which reflect DFAIT’s core business: its policy making, policy coordination, and related foreign affairs and international commerce programs; its international commercial, consular and passport services for Canadians; and its management of Canada’s international platform.

Economic recovery is, without a doubt, our government’s top priority and the single most important issue facing Canadians today. DFAIT has made a considerable contribution in this area in 2009-2010. We worked to prepare for the G-20 Summit in Toronto, which addressed key global issues including the importance of fiscal consolidation and fighting protectionism. The department delivered the Canada-United States Agreement on Government Procurement, in response to the “Buy American” provisions in the American stimulus legislation, and advanced Canada’s free trade agenda, in particular through the launch of negotiations with the European Union.

While global economic recovery was the defining issue of 2009-2010, our government is also committed to international stability and to creating a safer, more secure world. In Afghanistan, the department is coordinating Canada’s efforts on a range of issues, including security, governance and regional cooperation. DFAIT’s efforts have also positioned Canada as a global leader in responding to the devastating earthquake in Haiti in January 2010 and in helping our hemispheric partner rebuild for the future.

Canada is also placing an increased emphasis on its Arctic sovereignty, and DFAIT has been integral to the government’s efforts in this area.

In carrying out its mandate, DFAIT is finding new and better ways to support Canadians around the world. This includes opening new trade offices in key markets and establishing an Emergency Watch and Response Centre to coordinate the government services that help Canadians during emergencies abroad.

In an increasingly complex global environment, meeting Canada’s global priorities requires a modern, agile and cost-effective foreign and trade ministry, we we are proud to say that DFAIT is delivering.

To find out more about the department’s achievements in 2009-2010 and to learn more about the department, we invite you to consult the DFAIT website.¹

Executive Summary

DFAIT is among the most complex departments in the Government of Canada, responsible for the conduct of Canada’s international affairs, including global trade and commerce. The scope of its mandate and the complexity of its activities, which are reflected throughout this report, require two representatives in the federal Cabinet and two Parliamentary secretaries, as well as a minister of state, two deputy ministers and an associate deputy minister. DFAIT is the leader across government in shaping Canada’s positions on global issues and responses to international events, managing bilateral and multilateral relationships, and delivering international programs. This work allows Canada to advance its economic and political interests, to be more engaged in the international community, and to assist Canadians working, living and travelling abroad.

The department manages Canada’s network abroad (173 missions,² 140 points of service worldwide and 18 regional offices), enabling the work outside Canada of 30 partners.³ Canada’s global footprint, including interim operations, is as follows: Africa and the Middle East: 36 missions and 30 points of service; Asia Pacific: 36 and 35; Europe: 44 and 36; Latin America and the Caribbean: 28 and 18; and North America, including Mexico: 34 and 21. In 2009-2010, the department (including Passport Canada) had more than 13,000 active employees.

What follows is a summary of DFAIT’s highest-level results for 2009-2010, as they pertain to the three strategic outcomes. The results below also link to DFAIT’s four priorities for the year, as identified in its 2009-2010 Report on Plans and Priorities (RPP): (1)greater economic opportunity for Canada, with a focus on growing/emerging markets; (2) United States and the hemisphere; (3) Afghanistan, including in the context of neighbouring countries; and (4) transforming the department. In addition, the following results include other key achievements related to DFAIT’s ongoing work (e.g. its response to critical international events such as the earthquake in Haiti, and improvements made to its commercial, consular and passport services).

1. Canada's International Agenda

Seizing Global Economic Opportunities to Ensure Canada’s Growth and Prosperity: The global economic downturn and the ongoing fragile recovery have underscored the need to boost Canadian engagement in global value chains; secure competitive access to global markets and networks for Canadian businesses; increase foreign direct investment in Canada and Canadian direct investment around the world; and forge stronger linkages between Canada’s science and technology (S&T) community and global innovation networks. This is the purpose of the government’s Global Commerce Strategy, which achieved the following results in 2009-2010:

• launch of negotiations toward a comprehensive economic and trade agreement with the European Union, and of free trade agreement negotiations with Ukraine, as well as continued talks with the Caribbean Community (CARICOM), Republic of Korea, the Central America Four (El Salvador, Guatemala, Honduras and Nicaragua) and the Dominican Republic, and exploratory meetings with Morocco and Turkey;
• implementation of free trade agreements with Iceland, Switzerland, Liechtenstein and Norway (the European Free Trade Association) and Peru, and efforts toward bringing concluded agreements with Colombia, Jordan and Panama into force;
• launch of a Joint Study with India to explore the parameters of a possible comprehensive economic partnership agreement;
• foreign investment promotion and protection agreements were signed with Jordan, the Czech Republic, the Slovak Republic, Latvia and Romania, while negotiations were successfully concluded with Kuwait, Bahrain, Madagascar and Hungary, and talks continued with China, India, Mongolia, Poland, Indonesia, Vietnam, Tunisia and Tanzania; and
• air transport agreements were signed with the European Union, Japan, South Africa, Cuba, Morocco, Ethiopia, Tunisia and El Salvador.
• Continuing the expansion of Canada’s presence in key emerging markets, DFAIT opened six new trade offices in China⁴ and opened new missions in Ahmedabad, India and in Porto Alegre, Brazil. The department established a network of Canadian trade and policy officials in Association of Southeast Asian Nations (ASEAN) countries to enhance trade and better coordinate Canadian positions on ASEAN regional issues.
• While DFAIT pursued an ambitious agenda of bilateral and regional trade agreements, negotiations under the Doha Round of the World Trade Organization remained a priority for Canada.
• DFAIT generated support for the G‑20 Framework for Strong, Sustainable, and Balanced Growth, including fiscal consolidation targets, plus international acceptance of financial sector regulatory reform through the G-20.
• The Investment Cooperation (INC) program of the Canadian International Development Agency (CIDA) was transferred to DFAIT in January 2010. INC will support private sector engagement in developing countries to foster sustained economic growth and the reduction of poverty.
• Canada and the United States concluded the Canada-U.S. Agreement on Government Procurement, allowing Canadian companies to participate in U.S. infrastructure projects financed under the American Recovery and Reinvestment Act.
• Activities under DFAIT’s International Science and Technology Partnerships Program resulted in six new research and development (R&D) initiatives with China, worth $6.9 million, and four new R&D initiatives with India, worth $6.7 million.

Preparing for Canada’s International Year: The eyes of the world were particularly drawn to Canada in 2010, as this country hosted several major events, including the Vancouver 2010 Winter Games, the G‑8 and G‑20 summits, and the G‑8 Foreign Ministers’ Meeting. These events presented extraordinary opportunities for Canada not only to provide leadership on key global issues, but also to showcase the country to the world.

• DFAIT undertook intensive planning and coordination in preparation for the G‑8 and G‑20 summits, set the agenda for Canada’s G‑8 and G-20 presidencies, and hosted the G‑8 Foreign Ministers’ Meeting.
• During the Vancouver 2010 Winter Games, DFAIT undertook comprehensive investor outreach, which included the campaign on “2010 Reasons to Do Business in Canada.”

Deepening Relations with the United States and the Americas: Canada’s relationship with its closest neighbour, the United States, is vital and productive. The two countries have the world’s largest trading relationship, along with a history of cooperation in defending the continent and supporting freedom, democracy and human rights around the world. In the larger neighbourhood of the Americas, Canada has increased its engagement to advance a wide range of common interests.

• Building on a major investment in issue analysis and policy development, DFAIT helped reposition Canada’s relationship with the United States to encompass a more strategic, whole-of-government agenda. Sustained engagement between the two countries’ leaders and senior Cabinet ministers included a visit to Washington, D.C., by the Prime Minister as well as 35 ministerial visits to the United States. Important achievements included an agreement pertaining to the “Buy American” provisions of the U.S. stimulus legislation, the launch of a Canada-U.S. Clean Energy Dialogue and negotiations to amend the Great Lakes Water Quality Agreement, establishment of a twice-yearly ministerial dialogue on border management, cooperation in restructuring of the automotive sector, and an unprecedented level of civil and military cooperation and coordination in and on Afghanistan. Haiti’s reconstruction was another important area of bilateral cooperation. DFAIT played a leading role in support of Canada’s participation in the G‑20 meeting in Pittsburgh (September 2009) and the Nuclear Security Summit in Washington, D.C. (April 2010).
• Following the imposition of visa requirements for Mexicans travelling to Canada, Canada undertook sustained high-level engagement with Mexico. In addition, bilateral consultations with Mexico increased cooperation related to police training and capacity building, justice sector reform, and counter-narcotics programs and information sharing.
• DFAIT’s contribution of more than $7 million increased the capacity of states in the Americas to combat transnational crime. The department established the Anti-Crime Capacity Building Program to strengthen regional cooperation in the Americas in the fight against crime, particularly the illicit drug trade, corruption and human trafficking.
• DFAIT established regional policy centres focused on peace and security (in Panama City) and democratic governance (in Lima, Peru).
• DFAIT’s Global Peace and Security Fund delivered $42.8 million in programming in the Americas, including $14.9 million in Haiti; $5 million in Colombia (including legal support for 500 victims of conflict), and $1 million in Guatemala, including efforts to enhance cooperation between security and justice agencies.

Leading Canada’s Response to the Earthquake in Haiti: The department marshaled its resources to lead the whole-of-government response to the Haiti earthquake, while continuing to deliver on its priorities and commitments around the world.

• Within hours of the January 2010 earthquake, DFAIT initiated a coordinated whole-of-government response, which would endure for several weeks, ensuring that Canada responded to the urgent needs of Canadians in distress and deployed critically needed humanitarian assistance to support the people of Haiti. Throughout the emergency response, DFAIT ensured close coordination among the multiple federal departments and agencies, and with the Government of Haiti, and ensured collaboration with the Canadian provinces and territories, the private sector, Canadian and international non-governmental and international organizations, and other donors.
• Canada played a leadership role in coordinating an effective international response to the crisis by hosting the Ministerial Preparatory Conference in Montreal to establish a clear and common international vision for early recovery and longer-term reconstruction in Haiti.
• In collaboration with CIDA and the Department of Finance, DFAIT worked to ensure a leadership role for Canada in Haiti’s recovery and reconstruction by co-chairing the UN International Donors’ Conference Towards a New Future for Haiti in March 2010.

Providing Whole-of-Government Coordination of Canada’s Afghan Mission: Canada is in Afghanistan as part of a NATO-led effort operating under the authority of the United Nations.

• DFAIT supported Canada’s continued leadership in addressing issues related to Afghan security, governance and regional cooperation through participation in the London Conference on Afghanistan in January 2010.
• DFAIT provided whole-of-government leadership and coordination of Canada’s Afghan mission. A significant achievement was the launch at the G‑8 Foreign Ministers’ Meeting in Gatineau, Quebec, of the G‑8 Afghanistan-Pakistan Border Region Prosperity Initiative. DFAIT facilitated the Dubai Process as the primary mechanism for Afghanistan-Pakistan border management and supported the U.S.-led focus on the Afghanistan-Pakistan border (the Holbrooke plan). The department also supported implementation of initiatives under the Stabilization and Reconstruction Task Force (START), Counter-Terrorism Capacity Building Program and Afghanistan Counter Narcotics Program aligned with DFAIT-led priorities of promoting rule of law, good governance, border management and reconciliation.

Asserting Canada’s Role as an Arctic Nation: The Arctic is fundamental to Canada's national identity and represents tremendous potential for Canada's future. In part as a result of climate change and the search for new resources, the geopolitical significance of the region and the implications for Canada have never been greater.

• The Ministers of Foreign Affairs and Indian Affairs and Northern Development released the government’s Northern Strategy.⁵
• DFAIT finalized the Arctic Foreign Policy, the international dimension of the government’s Northern Strategy, to develop a more strategic approach to international Arctic policy issues.
• Canada hosted a meeting of the foreign ministers of the Arctic Ocean coastal states and established the Canadian International Centre for the Arctic Region.⁶
• Canada and the United States agreed to collaborate on a survey of the Arctic continental shelf and to discuss the maritime boundary in the Beaufort Sea.

Contributing to Global Efforts on Counterterrorism and Non-Proliferation: Complex problems such as international terrorism require solutions that harness expertise in diplomacy, intelligence, security and law enforcement, customs and immigration, transportation, justice and finance.

• DFAIT announced a multi-year contribution of $180 million to fund new projects under Canada’s Global Partnership Program, which works to prevent terrorists’ acquisition of weapons and materials of mass destruction. It also announced the geographic expansion of the Global Partnership Program to extend beyond the former Soviet Union.
• At their March 2010 meeting, the G‑8 foreign ministers issued a Statement on Nuclear Non-Proliferation, Disarmament and Peaceful Uses of Nuclear Energy, a contribution to the May 2010 Review Conference of the Parties to the Treaty on the Non-Proliferation of Nuclear Weapons.⁷
• The department led the whole-of-government preparation for Canada’s participation at the April 2010 Nuclear Security Summit in Washington. It also ensured Canadian leadership on nuclear non-proliferation issues in multilateral forums such as the United Nations, successfully advocating a fourth round of UN Security Council sanctions to address Iran’s nuclear program.

Ensuring Canada’s Active Participation in the UN: The United Nations is central to Canadian foreign policy. It provides an invaluable forum at which countries can resolve differences and pursue shared objectives.

• DFAIT continued to campaign actively for a non-permanent seat for Canada on the UN Security Council for 2011-2012, while developing options for Canada’s Security Council agenda in the event that Canada wins the October 2010 vote.
• DFAIT continued to represent Canada’s interests at the UN, including leading a resolution on the human rights situation in Iran for the seventh year in a row. The resolution was adopted by the General Assembly in November 2009 by the highest margin ever.

2. International Services for Canadians

Improving DFAIT’s Commercial, Consular and Passport Services for Canadians: Based on client feedback and other performance indicators, DFAIT continuously takes steps to upgrade and improve these services.

Commercial services: There was rising demand for trade commissioner services throughout 2009-2010. A total of 37,748 individual services were delivered to clients, which represents an increase of 14% over the previous year, and the number of Canada clients served reached 13,252, an 11% increase. To better support Canadian businesses, DFAIT opened new missions and increased staff in key emerging markets, while adding one new regional office in Canada.

According to an econometric analysis conducted by DFAIT’s Office of the Chief Economist, in collaboration with a leading academic in the trade economics field, the Trade Commissioner Service (TCS) has a consistently positive impact on the performance of Canadian exporters. Exporters that receive trade commissioner services have an average export value 18% higher than comparable exporters who do not receive services. The study showed that every dollar spent on TCS services results in $27 in increased exports. TCS assistance also plays a strong role in helping firms to diversify into new markets and to introduce new products in export markets. On average, TCS clients export to more than 35% more markets with over 15% more products than non-clients.

DFAIT referred 258 potential foreign investors to its domestic partners—primarily provinces, territories and municipalities—and assisted in arranging 155 exploratory company visits to Canada. DFAIT’s investment network facilitated 106 foreign greenfield and expansion investments in Canada, compared to 97 reported the previous year, despite a 10% decrease in worldwide investment in 2009.

Consular: DFAIT reorganized consular activities to better meet evolving emergency management needs, established a robust contingency planning function, and created the first of three planned regional consular and emergency support offices staffed with experienced management consular officers. Planning is well advanced to establish the new Emergency Watch and Response Centre at DFAIT headquarters, which will improve whole-of-government coordination and management of all forms of emergencies abroad.

Following the January earthquake in Haiti, consular staff and other DFAIT employees worked on a 24/7 basis, handling over 49,500 calls to the department’s Emergency Operations Centre and evacuating some 4,620 Canadians. An additional 1,500 Canadians were assisted in more than 18 other emergencies abroad, including earthquakes in Chile and Sumatra, mudslides in Peru, and the capsizing of the tall ship SV Concordia off the coast of Brazil, which was carrying Canadian students.

Passport: Passport Canada simplified the passport renewal process, increased passport printing capacity, expanded the number of points of service, instituted ongoing monitoring and tracking to forecast demand fluctuations, and developed a contingency plan to increase operational capacity and respond more effectively to spikes in demand. Issuance of the e-passport, embedded with an electronic chip, began as a pilot project in 2009. Work is progressing with respect to broader availability by 2012.

Passport Canada won the 2009 Institute of Public Administration of Canada/Deloitte Public Sector Leadership Award gold medal for its response to the surge in passport demand in 2007-2008.

3. Canada's International Platform

DFAIT must ensure that it can keep pace with a rapidly changing world as well as with the evolving needs of Canadians. To this end, it continues to undergo modernization throughout its operations.

• In 2009-2010, the Government of Canada officially opened seven new missions abroad, closed six missions, and opened one regional office in Canada. In addition, interim operations were initiated for five other missions and a regional service centre (Thames Valley, London, United Kingdom). The regional service centre in London serves missions in Europe, the Middle East and Africa, as part of the department’s new service delivery model to streamline common services and provide better support to Canadian missions abroad. Significant progress was made to establish a regional service centre in the United States as well.
• DFAIT met its objectives of ensuring a high level of satisfaction among clients of its common services.⁸ Results from an online client satisfaction survey showed a satisfaction rate of 75% overall. A revised Memorandum of Understanding (MOU) on Operations and Support at Missions was signed by 22 federal departments and agencies and one co-locator.
• Management of locally engaged staff abroad was strengthened by a review of local terms and conditions as well as by establishment of a new formula for annual salary adjustments.
• Significant efforts were undertaken to strengthen security at missions abroad.

Transformation and the New Business Model: In line with the efforts of many of Canada’s international allies and partners, DFAIT has been undergoing a transformation aimed at creating a more modern, integrated and flexible foreign and trade ministry, focused on its core mandate. The transformation is driving a renewed focus on services to Canadians, including consular assistance and emergency management, as well as increased flexibility to meet government priorities. Missions have actively engaged in the transformation.

After an in-depth review in 2009-2010 of its business model, DFAIT is moving forward with the implementation in 2010-2011 of a New Business Model that sets out new ways of doing business, modernizes operations and focuses on core business priorities.

Once fully implemented, these changes are expected to result in a strengthened network abroad, greater capacity for responding to emerging issues and unforeseen events, a more productive relationship with DFAIT’s federal partners, reduced overhead and a better match between the needs and assets of missions.

As an indicator of success to date with transformation, DFAIT has delivered the results outlined in this document while holding spending growth to one percent, demonstrating the increased flexibility in departmental operations.

Financial Resources: DFAIT’s total actual spending for 2009-2010 was $13,594.9 million, including $11,078 million pursuant to the Canada Account managed by Export Development Canada (EDC).^{9 10} DFAIT’s net spending for 2009-2010 amounted to $2,516.9 million, as explained further below.

Financial Resources ($ millions)

2009-2010	Planned Spending	Total Authorities	Actual Spending
Foreign Affairs and International Trade	2,322.5	2,775.8	2,516.9
Export Development Canada (Canada Account)	-119.5	19,414.9	11,078.0
Total for DFAIT	2,203.0	22,190.7	13,594.9

DFAIT’s net departmental spending was within the total authorities granted by Parliament and actual spending figures have been measured against funding from both Main and Supplementary Estimates (Total Authorities). In 2009-2010, key initiatives contributing to the variance between DFAIT’s planned spending and total authorities included:

• $139.6 million in new funding to address increases in the assessed costs of Canada’s membership in international organizations, including assessments for new UN peacekeeping missions;
• $32.6 million in new funding for additional representation at Canada’s missions abroad and regional offices in Canada;
• $31.1 million for hosting of the G‑8 and G‑20 summits; and
• $13.4 million for departmental efforts supporting Canada’s initial response to the earthquake in Haiti.

Approximately 49% ($1,233 million) of DFAIT’s actual spending related to Canadian diplomacy and advocacy activities in support of Canada’s International Agenda. This included $521.8 million in assessed contributions to cover Canada’s membership in international organizations such as the UN, UN peacekeeping missions and the World Health Organization. It also included expenditures for key international programs, such as the Global Peace and Security Fund ($127.1 million) and the Global Partnership Program ($130.1 million).

Twelve percent ($301.9 million) of actual spending provided international services (consular, passport and commercial) to Canadians, including over $55 million to deliver the government’s Global Commerce Strategy and over $23 million for the new Consular Services and Emergency Management Branch.

Approximately 35% ($888.5 million) of actual spending relates to the international platform activities to support DFAIT and its 30 partners at Canada’s missions abroad. This amount included $210 million for headquarters-based programs, principally property and information management and technology services, and $449 million in operating costs at missions abroad.

The remaining 4% ($93.5 million) was spent on internal services.

DFAIT’s spending increased by an average of 7% a year from 2006-2007 to 2008-2009, (excluding exceptional one-time spending in 2006-2007). However, the growth in departmental expenditures has slowed to the point that 2009-2010 expenditures were only 1% higher than the 2008-2009 level.

According to the Treasury Board of Canada Secretariat (TBS) report entitled Canada’s Performance, DFAIT’s actual spending over the last three years represents approximately 1% of the total spending of the Government of Canada. DFAIT’s actual spending represents less than 9% of the government’s spending on international affairs (see Canada’s Performance Reports).¹¹

Conclusion

The accomplishments described in this executive summary are by no means all of the results achieved by DFAIT in 2009-2010, and many more are discussed in the pages that follow. Overall, DFAIT met its numerous and varied commitments identified in the year’s Report on Plans and Priorities, within the context of a very challenging financial environment. Meanwhile, DFAIT continues its transformation initiative, making fundamental changes to the way it operates. This initiative is expected to have a positive impact on all DFAIT activities and outputs.

The rest of this report presents information in strict accordance with the guidelines set by TBS (i.e. most of the material is in table format). Section 1 provides an overview of the department: its roles and responsibilities, Program Activity Architecture (PAA), performance summary tables, environmental scan and risk analysis, and expenditure profile.

Section 2 is organized according to the PAA (i.e. by strategic outcome and corresponding program activities). Each subsection begins by describing the program activity under discussion and its benefits for Canadians. This is followed by two tables (the program activity’s planned and actual resources, both human and financial, and a summary of performance for the year). There is then a brief analysis of the year’s performance and a performance highlights table that links back to commitments made in the 2009-2010 Report on Plans and Priorities. Each subsection ends with an explanation of lessons learned over the year.

Section 3 contains financial highlights, financial statements, and a list of tables that can be found on the TBS website. Finally, Section 4 provides information on how to contact DFAIT and its portfolio organizations.

Section 1: Departmental Overview

1.1. Raison d’être and Responsibilities

This Departmental Performance Report provides Canadians with information on DFAIT’s achievements in 2009-2010.

DFAIT’s specific areas of responsibility include international peace and security, global trade and commerce, diplomatic and consular relations, administration of the Foreign Service and Canada’s network of missions abroad, and development of international law and its application to Canada. DFAIT promotes Canada’s interests and the security and prosperity of Canadians, and advances the Canadian values of democracy, human rights, the rule of law and environmental stewardship. The department’s founding legislation is the Department of Foreign Affairs and International Trade Act, RSC 1985, c. E-22, which lists its legislated responsibilities (see Our Mandate).¹²

The department provides ongoing benefits to Canadians as follows:

• It ensures that the Government of Canada speaks and acts in a unified and cohesive manner with respect to the formulation and implementation of foreign and trade policies and programs, by leading a government-wide approach to these efforts, including response to crises. Working with partner departments, DFAIT is the principal source of information, intelligence and advice for the Government of Canada on international issues, conditions and trends.
• It concentrates its human and financial resources on its core business (i.e. peace and security, trade and investment, international law and human rights) in order to advance Canada’s global agenda related to these issues as effectively as possible, while making full use of its diplomatic and geographic expertise worldwide.
• It generates international opportunities for Canadian business by promoting international trade and commerce through initiatives such as negotiation of agreements to open and/or expand markets, facilitation of two-way trade and investment, and encouragement of innovation by means of international partnerships for science and technology commercialization.
• It provides Canadians with international commercial, consular and passport services as well as timely and practical information on international issues and travel.
• It manages Canada’s network of 173 missions worldwide (i.e. the Government of Canada’s international platform) from a government-wide perspective, thereby enabling not just its own global operations but also those of its partners operating at missions abroad. Canada’s missions abroad integrate and coordinate the government’s international activities.
• Mission activities include advocating Canadian policies and perspectives internationally; building and maintaining relationships to raise Canada’s profile and advocate Canadian objectives; interpreting economic, social and political trends and information in terms of what they mean to Canada and Canadians; managing Canada’s international business development, including promotion of exports, attraction of investment and positioning of Canada as a dynamic innovation partner; providing consular and passport services; and supplying infrastructure and services to enable the international operations of federal and other partners working at missions abroad.
• It serves the foreign diplomatic community accredited to Canada and fulfills protocol duties for all outgoing state visits by the Governor General, the Prime Minister and DFAIT portfolio ministers as well as for incoming official visits by foreign dignitaries (heads of state and heads of government). At present, there are over 8,000 foreign representatives and accredited members of their families in Canada.

1.2. Performance Summary

DFAIT’s Program Activity Architecture clearly identifies the department’s strategic direction by listing its complementary strategic outcomes (i.e. the long-term, enduring benefits to Canadians that the department strives to achieve). DFAIT has three strategic outcomes. First, Canada’s International Agenda refers to the practice of Canadian advocacy and diplomacy. Second, International Services for Canadians denotes DFAIT’s commercial, consular and passport services to Canadians. Third, Canada’s International Platform refers to the department’s management of missions abroad, on behalf of the Government of Canada. Together, the strategic outcomes reflect the department’s leadership role in formulating, coordinating and carrying out the federal government’s foreign and trade policies and programs. The department’s strategic outcomes provide the foundation for all its activities.

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

• In carrying out International Policy Advice and Integration, the department provides strategic direction, intelligence and advice on foreign policy and economic issues; researches and analyzes foreign and trade policy issues, drawing on input from across the department as well as from federal partners; develops policies and programs to address those issues; and ensures coherence, integration and coordination of foreign and trade policies and programs across government.
• In undertaking Diplomacy and Advocacy, DFAIT engages Canadian stakeholders and partners as well as foreign governments and international players; raises awareness and understanding of Canada’s policies, interests and values as they pertain to the government’s international agenda; and delivers programs on Canada’s behalf to address specific international issues.
• In relation to International Commerce, the department works to expand the participation of Canadian business in world markets and to increase the interaction of Canadian entrepreneurs with global business partners, and promotes Canada as a competitive location and partner for investment, innovation and value-added production.
• With respect to Consular Services, DFAIT supplies Canadians with information and advice on safe travel to foreign countries, and provides guidance and support in cases of personal difficulty or during times of crisis.
• Passport Canada—a special operating agency—focuses on management and delivery of passport services. It is responsible for the issuance, revocation, refusal, recovery and use of Canadian passports.
• With respect to Canada’s International Platform: Support at Headquarters, the department manages and delivers common services to federal and other partners with representation at Canada’s missions abroad.
• With regard to Canada’s International Platform: Support at Missions Abroad, DFAIT ensures that common services are in place at missions and coordinates them on site to support the international operations of the entire Government of Canada as well as the operations of federal and other partners with representation at the missions.

Finally, Internal Services are activities that make possible all of the department’s operations. Without Internal Services, the department could not carry out its mandated functions or advance its strategic outcomes. Because Internal Services are included in the department’s Program Activity Architecture, they have been presented as a separate program activity since the 2008-2009 Departmental Performance Report. Treasury Board of Canada Secretariat divides Internal Services into three broad categories: governance and management support, resource management services, and asset management.

Strategic Outcome 1: Canada’s International Agenda	Strategic Outcome 2: International Services for Canadians	Strategic Outcome 3: Canada’s International Platform
The international agenda is shaped to Canada’s benefit and advantage in accordance with Canadian interests and values.	Canadians are satisfied with commercial, consular and passport services.	The Department of Foreign Affairs and International Trade maintains a mission network of infrastructure and services to enable the Government of Canada to achieve its international priorities.
Program Activity 1: International Policy Advice and Integration	Program Activity 3: International Commerce	Program Activity 6: Canada’s International Platform: Support at Headquarters
Program Activity 2: Diplomacy and Advocacy	Program Activity 4: Consular Affairs	Program Activity 7: Canada’s International Platform: Support at Missions Abroad
	Program Activity 5: Passport Canada
Program Activity: Internal Services

1.3. Summary of Performance

The summary presents financial and human resources information for the period covered by this report. It also provides a breakdown of spending by program activity and shows how each program activity aligns with overall Government of Canada outcomes. The table below presents the planned and actual figures.

1.3.1 Total Financial and Human Resources Table

2009-2010 Financial Resources ($ millions)			2009-2010 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
2,203.0	22,190.7	13,594.9	13,624	12,986	-638

The number of total actual FTEs (12,986) is distributed among the program activities as follows: International Policy Advice and Integration 6%, Diplomacy and Advocacy 12%, International Commerce 10%, Consular Affairs 4%, Passport Canada 20%, Canada’s International Platform: Support at Headquarters 7%, Canada’s International Platform: Support at Missions Abroad 32% and Internal Services 9%.¹³ The International Platform: Support at Missions Abroad program activity includes the majority of locally engaged staff (LES), including all LES dedicated to delivering the programs of partner departments.

The 5% variance observed between the actual (12,986) and planned FTEs (13,624) anticipated in the department’s Report on Plans and Priorities is attributable to a number of factors, including a reduced level of new DFAIT and partner department overseas positions; and staffing delays at headquarters.

1.3.2 Performance Summary Table

Strategic Outcome 1: Canada’s International Agenda

Performance Indicators14	Target	2009-2010 Performance
Percentage of international partners and institutions that recognize and support key Canadian positions	75%	Based on achievements in multilateral forums and agreements with international partners in the priority areas, the target was met. A summary of key accomplishments by strategic outcome is provided in the Executive Summary.

Program Activity	2008-2009 Actual Spending ($ millions)	2009-2010 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
International Policy Advice and Integration	150.3	117.6	120.3	177.3	156.8	A Safe and Secure World through International Cooperation
Diplomacy and Advocacy	1098.2	923.5	991.9	1,225.1	1,076.2	A Safe and Secure World through International Cooperation
Total Strategic Outcome 1	1248.5	1041,1	1112.2	1402.4	1232.9

Strategic Outcome 2: International Services for Canadians

Performance Indicators	Target	Performance
Percentage of clients who were satisfied with consular, passport and commerce services provided by the department	70%	Surveys had the following satisfaction rates: consular: 92% commerce: 66% passport: N/A A summary of key accomplishments by strategic outcome is provided in the Executive Summary.

Program Activity	2008-2009 Actual Spending ($ millions)	2009-2010 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
International Commerce						A Prosperous Canada through Global Commerce
DFAIT component	258.6	207.3	207.8	225.8	232.3
EDC component	693.7	-119.5	-119.5	19,414.9	11,078.0
Consular Affairs	49.9	37.1	54.5	61.5	55.4	A Safe and Secure World through International Cooperation
Passport Canada	44.8	34.1	34.1	62.3	14.2	A Safe and Secure World through International Cooperation
Total Strategic Outcome 2	1047.0	159.0	176.9	19,764.5	11,379.9

Strategic Outcome 3: Canada’s International Platform

Performance Indicator	Target	Performance
Percentage of clients who responded favourably to common services they received	75%	In an online survey of DFAIT and partner Canada-based and locally engaged staff abroad, conducted in winter 2010, 75% expressed satisfaction with the common services provided by DFAIT. A summary of key accomplishments by strategic outcome is provided in the Executive Summary.

Program Activity	2008-2009 Actual Spending ($ millions)	2009-2010 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Canada’s International Platform: Support at Headquarters	317.6	304.1	349.8	379.5	370.0	A Safe and Secure World through International Cooperation/A Prosperous Canada through Global Commerce
Canada’s International Platform: Support at Missions Abroad	580.2	449.6	449.6	541.4	518.5	A Safe and Secure World through International Cooperation/A Prosperous Canada through Global Commerce
Total Strategic Outcome 3	897.8	753.7	799.4	951.6	877.6

Internal Services (support all strategic outcomes and program activities)¹⁵

Performance Indicator	Target	Performance
See Section 2.4	See Section 2.4	See Section 2.4

Program Activity	2008-2009 Actual Spending ($ millions)	2009-2010 ($ millions)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	0	88.5	114.5	102.9	93.5	NA

1.3.3 Contribution of Priorities to Strategic Outcomes

2009-2010 Priorities	Type	Status (Note: 2009-2010 RPP plans for meeting the priority are in italics)16	Linkages to Strategic Outcome(s) (SOs)
1) Greater economic opportunity for Canada, with a focus on growing/ emerging markets	Previously committed to	Met all Contribute to economic recovery and opportunity by implementing the Global Commerce Strategy (GCS) and boosting Canadian commercial engagement in the world: DFAIT continued to implement the GCS to increase Canadian access to global markets for trade, investment and innovation. To support Canadian businesses that wish to invest responsibly in developing countries, DFAIT launched the Investment Cooperation Program (INC), replacing the Canadian International Development Agency’s Industrial Cooperation program. Advance bilateral negotiations on trade liberalization and market access with key states, with a new attention to Asia, and finalize implementation of free trade agreements (FTAs) with the European Free Trade Association, Peru, Colombia and Jordan: Implemented FTAs with the European Free Trade Association and Peru, and worked toward bringing concluded agreements with Colombia, Jordan and Panama into force. Launched FTA negotiations with Ukraine and continued FTA talks with the Caribbean Community (CARICOM), the Republic of Korea, the Central America Four (El Salvador, Guatemala, Honduras and Nicaragua) and the Dominican Republic, and held exploratory meetings with Morocco and Turkey. Launched a Joint Study with India to explore the parameters of a possible comprehensive economic partnership agreement. The department also concluded an arrangement with China to mitigate import restrictions on Canadian agricultural exports. Develop the Canada-European Union (EU) economic partnership: DFAIT launched negotiations toward a comprehensive economic and trade agreement (CETA) with the EU and held two rounds of negotiations. Focus on air services as well as foreign investment promotion and protection agreement (FIPA) negotiations: Foreign investment promotion and protection agreements were signed with Jordan, the Czech Republic, the Slovak Republic, Latvia and Romania, while negotiations were successfully concluded with Kuwait, Bahrain, Madagascar and Hungary, and talks continued with China, India, Mongolia, Poland, Indonesia, Vietnam, Tunisia and Tanzania. Air transport agreements were signed with the European Union, Japan, South Africa, Cuba, Morocco, Ethiopia, Tunisia, and El Salvador. Deliver programming for the 2010 Winter Games: During the Olympics, DFAIT undertook intensive public diplomacy and investor outreach, including business round tables and the campaign “2010 Reasons to Do Business in Canada.” Advance Canadian interests in the Doha Round of the World Trade Organization: DFAIT continued to represent Canada’s interests in the Doha Round and prepared strategies to manage anticipated discussions at the G‑8 and G‑20 summits regarding these negotiations. Prepare for the 2010 G‑8 Summit: DFAIT undertook intensive planning and coordination in preparation for the G‑8 and G‑20 summits, set the agenda for Canada’s G‑8 and G-20 presidencies, and hosted the G‑8 Foreign Ministers’ Meeting in Gatineau, Quebec. Advance Canada’s interests in the G-20: The department generated support for the Framework for Strong, Sustainable, and Balanced Growth, including fiscal consolidation targets, plus international acceptance of financial sector regulatory reform, through the G-20 Sherpa negotiations.	SO 1 This priority contributed to shaping the international agenda by advancing Canada’s trade and economic interests, particularly with regard to market access, cooperative international agreements and arrangements, and two-way direct investment between Canada and priority countries worldwide. Areas for improvement included an enhanced leveraging of external trade policy expertise to assist in the development of innovative policy ideas in various areas of international trade policy (universities/ academies; think tanks, research institutes); and the building of domestic capacity in investment attraction as a counterweight to the worldwide slowdown in trade and investment.
2) United States and the hemisphere (the Americas)	Previously committed to	Met all Implement a comprehensive strategy for Canada-United States relations on such issues as the global economy and trade relations, peace and security, the border, energy and climate change, Afghanistan and the Arctic: Building on a major investment in issue analysis and related policy development prompted by the 2008 presidential election in the United States and aimed at establishing the most productive possible relationship for Canada with the incoming administration, DFAIT was successful in reorienting the bilateral relationship to encompass a more strategic and forward-looking whole-of-government agenda led by the Prime Minister and with the full engagement of Ministers. Sustained engagement between leaders and at the ministerial level helped to advance the common agenda and to defend and advance Canadian interests. Over the course of 2009-2010, DFAIT supported a bilateral visit to Washington by the Prime Minister as well as 35 ministerial visits. Among important achievements during the period were the successful conclusion of negotiations toward the Canada-U.S. Agreement on Government Procurement, which was related to the “Buy American” provisions of the U.S. stimulus legislation; the launch of a Canada-U.S. Clean Energy Dialogue and the launch of negotiations to amend the Great Lakes Water Quality Agreement; the establishment of a twice-yearly ministerial dialogue on border management, cooperation in the restructuring of the automotive sector; and an unprecedented level of civil and military cooperation in and on Afghanistan. Haiti reconstruction was another important area of cooperation between the two countries. DFAIT also played a leading role in support of the Prime Minister’s participation in two important summits hosted by President Obama: the G‑20 meeting in Pittsburgh in September 2009 and the Nuclear Security Summit in Washington in April 2010. Strengthen relations with Mexico and elsewhere in the hemisphere through implementation of bilateral and multilateral programs and policies that promote greater prosperity (FTAs, air agreements, S&T accords): See information on FTAs and other agreements under the first operational priority above. The department advanced relations with Brazil, where Canada opened a new office to forge greater economic relations, and re-established the Joint Economic and Trade Council consultations after a 10-year hiatus, with a mandate to facilitate trade and promote investment opportunities. DFAIT also hosted consultations with a 25-member delegation of Brazilian deputy and assistant deputy ministers and held a major policy conference engaging high-level Canadian and Brazilian officials. At the Summit of the Americas, the Prime Minister announced a temporary increase of $5 billion in callable capital to the Inter-American Development Bank in an effort to fuel economic recovery in the region. Long-term linkages were expanded through new student mobility agreements and 500 new scholarships for study and research. Enhance security (policing and judicial capacity building): Bilateral consultations with Mexico increased cooperation related to police training and capacity building, justice sector reform, and counter-narcotics programs and information sharing. Similar assistance was provided to other countries in the region through the new Anti-Crime Capacity Building Fund which distributed more than $7 million to enhance the capacity of governments in the Americas to combat transnational crime. Regional collaboration and whole-of-government approaches were strengthened through sharing of best practices with the launch of the Regional Office for Peace and Security in Panama. Promote democratic practices (accountable and transparent governance, respect for human rights and the rule of law): Canada facilitated greater regional collaboration and strengthened whole-of-government policies and best practices in the area of democracy through the launch of the Andean Unit for Democratic Governance. Canada played a pivotal role in the Organization of American States (OAS) mediation mission resulting from the coup d’état in Honduras as well as the subsequent contributions to the Truth and Reconciliation Commission. Canada also led on the Cuba and Summit resolutions at the OAS General Assembly and promoted the OAS Democratic Charter, particularly in the context of freedom of speech in Venezuela and corporate social responsibility. A new scholarship initiative for Haiti was launched as a result of the earthquake to provide continuing academic studies to Haitian students.	SO 1 and SO 2 This priority contributed to advancing Canada’s international agenda by managing Canada’s interests and relationship with its most important economic and military ally, as well as with its important partners in the Americas, including through multilateral forums such as the Organization of American States. This priority also contributed to international services for Canadians through the opening of a new trade office in Brazil. The recession highlighted the powerful role of the domestic lobby in U.S. foreign policy. Canada must be effective in engaging and influencing decision makers and opinion leaders in the United States.
3) Afghanistan, including in the context of neighbouring countries	Previously committed to	Met all Implement an integrated approach to the Afghanistan policy priorities for which the department is responsible: Afghanistan-Pakistan border management, the Afghan National Police, justice and corrections in Kandahar province, and support for Afghan-led reconciliation; implement all diplomatic aspects of the Afghan mission; develop an integrated regional approach, including with Pakistan, and develop an integrated strategy for the transition of Canada’s mission in Afghanistan until 2011: DFAIT provided whole-of-government leadership and coordination of Canada’s Afghan mission. A significant achievement was the launch at the G‑8 Foreign Ministers’ Meeting in Gatineau of the Afghanistan-Pakistan Border Region Prosperity Initiative, in collaboration with the two countries’ governments, the World Bank and the Asian Development Bank. Canada facilitated the Dubai Process as the prime mechanism for Afghanistan-Pakistan border management. The department also supported implementation of initiatives by the Stabilization and Reconstruction Task Force (START) and the Counter-Terrorism Capacity Building Program aligned with DFAIT-led priorities of promoting rule of law, good governance, border management and reconciliation.	SO 1 This priority advances Canada’s international agenda by promoting peace, democracy and security in a historically volatile region. It includes significant cooperation and coordination with bilateral partners, multilateral forums like the G-8 and security organizations such as NATO.
Management Priority
4) Transforming the department	Previously committed to	Mostly met The department is making clear progress on the six themes of its Transformation Agenda: DFAIT aligned with government priorities: The department continued to align with overall government priorities and increased its flexibility to respond to new and emerging priorities. This included responding to complex emergencies such as the earthquake in Haiti and supporting the Prime Minister as host of the G‑20 and G‑8 summits in June 2010. Strengthen the international platform: DFAIT continued to implement a significant shift in departmental resources from its Ottawa headquarters to its missions abroad to strengthen its value added in the field. A new Memorandum of Understanding on Operations and Support at Missions was approved by all of DFAIT’s partners with operations abroad. DFAIT has opened five regional offices since 2008, and has established four regional policy and program centres. Improve services to Canadians: DFAIT reorganized consular activities to better meet evolving emergency management needs, established a robust contingency planning function, created the first of three planned regional consular and emergency support offices staffed with experienced management consular officers, designed a training program for all staff involved in emergency management, supported the renewal of the Management Consular Officer stream, and increased training for consular staff on how to deal with complex issues and events abroad. Passport Canada simplified the passport renewal process, increased passport printing capacity, expanded the number of points of service, instituted ongoing monitoring and tracking to forecast demand fluctuations, and developed a contingency plan to increase operational capacity and respond more effectively to spikes in demand. The Trade Commissioner Service (TCS) prepared 230 market sector reports to provide Canadian businesses with up-to-date insight into international market opportunities. Expansion of the TCS domestic footprint (28 new FTEs and six satellite offices) made an important contribution to departmental performance. Focus on core business: The department is focused on its core mandate of trade and investment, international peace and security, international law and human rights, and geographic expertise. DFAIT strengthened its policy capacity through various measures, including adoption of an open policy-development model and extensive e-collaboration on policy issues. Strengthen accountability: DFAIT continued implementation of the CFO Model17 to strengthen financial administration and strengthened oversight and accountability by reporting on evaluation and mission inspection recommendations to the Departmental Evaluation Committee and Departmental Audit Committee. Renew human resources: DFAIT renewed its human resources through ongoing officer recruitment, drawing on a pool of qualified candidates from the 2008 post-secondary collective recruitment exercise.18 To increase the foreign-language capacity of DFAIT staff posted abroad, the Canadian Foreign Service Institute reinvested in related training. To strengthen the integrity of human resources data, DFAIT established a “super user” network to ensure effective communication across the HR function. A human resources mapping project was initiated, which will result in simplifying and improving HR processes.	Links to all SOs The ongoing departmental transformation into a modern, integrated ministry for the 21st century affects virtually every aspect of the department’s operations and policies. The Transformation Agenda is the mechanism by which the department seeks to modernize and improve policy and program capacity, improve services to Canadians and strengthen the international platform.

1.4 Working Context and Risk Analysis

DFAIT’s global operations include work in places and circumstances that can be highly complex, dangerous and difficult. At the same time, its work can be affected by domestic developments. Therefore, DFAIT must exercise clear leadership and maintain a highly flexible organization, not only to be able to deliver results on a day-to-day basis, but also to be able to respond quickly and effectively to new events and issues as they arise.

Risk management is a critical component of DFAIT corporate and business planning and performance management. Risk refers to the effect of uncertainty on objectives. It is the expression of the likelihood and impact of an event with the potential to affect the achievement of an organization’s objectives. DFAIT’s Corporate Risk Profile was updated in 2009-2010, and an Integrated Risk Management Policy has been drafted. Once finalized, it will be applied to all departmental activities and operations.

DFAIT addresses possible exposure to risks by identifying key potential events or circumstances and estimating the likelihood and impact on departmental strategic outcomes. Using risk analysis, the department develops mitigation strategies aimed at addressing potential challenges and seizing possible opportunities. What follows is a summary of the key factors and strategic risks affecting DFAIT’s operations, along with the corresponding mitigation strategies.

Highly volatile economic and political conditions at home and abroad: While Canada’s economic and fiscal position has remained relatively positive compared with many other countries, Canada continues to be affected by volatility in world stock markets; global discussions on adjustments to fiscal architecture, including a proposed bank tax; protectionism prompted by domestic concerns about unemployment; and the need for constrained public spending following government stimulus. The department demonstrated considerable capacity to manage these risks, for example in its success in negotiating an agreement with the United States on the “Buy American” provisions of the U.S. stimulus legislation, and its ability to rapidly expand summit preparations following the September 2009 announcement that Canada would host the G-20 Summit in addition to the G-8 Summit in June 2010.

Challenges in providing services to Canadian citizens abroad and protection of Government of Canada personnel, interests and assets: In the past year, the most significant unforeseen international event that affected Canadians and their interests has been the earthquake in Haiti. Canada’s response, coordinated by DFAIT, was partly based on lessons learned from the 2004 Asian tsunami, which resulted in greater use of START (Stabilization and Reconstruction Task Force), increased interdepartmental consultation on Canada’s emergency response abroad, and expanded capacity at DFAIT to handle such events.

Challenges related to external and internal communications: Technological changes and organizational dispersion can affect DFAIT communications. However, the department made major progress in 2009-2010 to address these issues, through measures such as consolidation of all mission websites onto one platform (Interwoven) and greater use of new technologies (e.g. video-conferencing, webinars and e-networking).

Competition for resources to support departmental priorities and change management: In 2009-2010, DFAIT continued to adjust to government-wide fiscal restraint, amidst intense pressure on resources associated with Canada’s hosting of the Olympics, G‑8 Foreign Ministers’ Meeting and G‑20 within the span of one year. It is worth noting that DFAIT carries out an extremely diverse mandate and set of activities using only 1% of total government spending.

Existing and evolving challenges with human resources, financial and information management systems for decision making and reporting: DFAIT’s global operations put extensive demands on a host of technological applications. In 2009-2010, the department completed renewal of its classified information system (SIGNET-C5) to enhance productivity and security. To improve management and sharing of information, DFAIT opened a secondary data centre, which will ensure the reliability of information management and technology services for the department and its partners at missions abroad. In addition, the department tripled the capacity for remote access to information technology services and increased the number of applications available with the service. DFAIT also supports the standardization of human resources (HR) systems throughout the Government of Canada. The department implemented two pay modules in 2010 and is actively involved in the Human Resources Management System common configuration project aligned with Government of Canada priorities.

Erosion of human and knowledge capital: As a knowledge-based organization that needs highly skilled employees, DFAIT continues to face severe competition in attracting and retaining personnel in key shortage areas. In 2009-2010 the department increased its foreign-language capacity of staff posted abroad. In addition, it established a “super user” function to ensure its data integrity.

Over the course of the last year, an Integrated Risk Management Policy has been developed to strengthen the management of risk across the department, specify accountabilities for key risk management activities, and ensure that the workplace has the capacities and tools to be innovative. The department’s Corporate Risk Profile (CRP) has been updated based on comprehensive input from all bureaus and branches and has been approved by senior management. At the same time, risks and mitigation strategies have been embedded in the 2010-2011 Integrated Corporate Business Plan. The top six risks described in the CRP have been linked to DFAIT’s strategic outcomes and Program Activity Architecture. Five of the six risks link to all three of the department’s strategic outcomes, while the first risk listed above applies primarily to Strategic Outcomes 1 and 2. (See the 2010-2011 Report on Plans and Priorities for more detailed information.)¹⁹

1.5 Expenditure Profile

DFAIT’s total actual spending for 2009-2010 amounted to $13,594.9 million, including $11,078 million pertaining to the Export Development Canada (EDC) Canada Account. The department’s net actual spending amounted to $2,516.9 million in 2009-2010, against total authorities of $2,775.8 million.

1.5.1 Departmental Spending Graph

[D]

DFAIT’s actual spending increased by an average of 7% each year between 2006-2007 and 2008-2009, excluding the 2006-2007 exceptional one-time authorities and spending related to the Softwood Lumber Products Export Charge Act, (2006) ($502 million) and debt forgiveness for six developing countries ($126.9 million), However, growth stabilized during 2009-2010 to a 1% increase over 2008-2009.

Typically, there is some variance between planned spending in the RPP and actual spending each year due to unforeseen initiatives that are funded through Supplementary Estimates. For 2009-2010, the main difference between DFAIT’s spending and total authorities can be explained by factors such as:²⁰

• $139.6 million in new funding to address increases in the assessed costs of Canada’s membership in international organizations, including assessments for new UN peacekeeping missions (Somalia, Central African Republic and Chad);
• $32.6 million in new funding for additional representation at Canada’s missions abroad and regional offices in Canada;
• $31.1 million for hosting of the G‑8 and G‑20 summits;
• $18.3 million for the acquisition and development of permanent staff quarters and an embassy in Afghanistan;
• $14.5 million for the acquisition of land and staff housing units in Pakistan; and
• $13.4 million to support Canada’s initial response to the January 2010 earthquake in Haiti.

DFAIT continues to face budgetary constraints, like other federal departments and agencies. It has made cumulative contributions to government-wide reallocation exercises of over $413 million since 2005-2006, including nearly $160 million in 2009-2010, thus contributing to a very challenging financial environment.

1.5.2 Canada’s Economic Action Plan—Canada Account

In the context of Canada’s Economic Action Plan, a total of $14.5 billion was committed by the governments of Canada and Ontario in support of the restructuring and renewal of the automotive industry in Canada.

In 2009-2010, a total of $13.7 billion was disbursed ($2.9 billion in support of Chrysler Canada and $10.8 billion in support of General Motors of Canada). One third of this support was provided by Ontario and two thirds by Canada, via the Canada Account.

Of the total actual spending of $11.078 billion from the Canada Account, $10,767 billion was related to stimulus measures in Canada’s Economic Action Plan and the remaining $310.9 million was for other approved transactions. The actual spending includes the recorded expense in the Canada Account that resulted from the transfer of shares to the Canada Development Investment Corporation, loans that are repayable in 2010-2011 by Chrysler Canada and General Motors of Canada, as well as professional fees and foreign exchange losses.

On July 10, 2009, the Government of Canada agreed to exchange approximately $9.753 billion of General Motors’ outstanding receivable into shares. These shares are held by the Canada Development Investment Corporation. At the exchange date, the fair value of the preferred and common shares was estimated to be $3.149 billion. An amount of $6.604 billion, representing the difference between the face value of the loans and the fair value of the equity, has been recorded as an expense in the Canada Account for 2009-2010.

1.5.3 Voted and Statutory Items Table ($ millions)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-2008	2008-2009	2009-2010
		Actual Spending	Actual Spending	Main Estimates	Actual Spending
1	Operating expenditures	1,222.0	1,361.5	1,186.5	1,374.3
5	Capital expenditures	170.9	172.9	140.0	188.3
10	Grants and contributions21	742.4	816.0	726.4	826.7
11	Passport Canada—Capital expenditures	-	10.0	10.0	9.8
13	Passport Canada—Operating expenditures	-	12.7	-	-
(S)	Contributions to employee benefit plans	74.0	82.1	74.5	95.6
(S)	Minister of Foreign Affairs: Salary and motor car allowance	0.1	0.1	0.1	0.1
(S)	Minister for International Trade and Minister for the Asia-Pacific Gateway: Salary and motor car allowance	0.1	0.1	0.1	0.1
(S)	Minister of State of Foreign Affairs (Americas): Motor car allowance	-	-	-	022
(S)	Payments to Export Development Canada (EDC) to discharge obligations incurred pursuant to section 23 of the Export Development Act(Canada Account) for the purpose of facilitating and developing trade between Canada and other countries. (S.C., 2001, c. 33)	95.4	0.6	1.0	6,573.4
(S)	Payments under the Diplomatic Service (Special) Superannuation Act (R.S. 1985, c. D-2)	0.2	0.1	0.3	0.1
(S)	Passport Office Revolving Fund (Revolving Funds Act R.S. 1985, c. R-8)	-19.4	22.1	24.1	4.3
(S)	Refund of amounts credited to revenue in previous years	0.1	0.1	-	0.1
(S)	Spending of proceeds from disposal of surplus Crown assets	2.5	2.4	-	3.2
(S)	Losses on foreign exchange	7.8	9.2	-	9.5
(S)	Losses on foreign exchange (EDC)	354.9	-	-	869.9
(S)	Administrative fees (EDC)	10.0	7.9	-	6.0
(S)	Payments under Budget Implementation Act	10.0	10.3	-	4.7
	Total Budgetary	2,671.0	2,508.1	2,162.9	9,966.1
(S)	Payments to EDC to discharge obligations incurred pursuant to section 23 of the Export Development Act (Canada Account) for the purpose of facilitating and developing trade between Canada and other countries (S.C., 2001, c. 33) (Non-Budgetary)	-588.4	685.2	-120.5	3,628.7
	Total Department	2,082.6	3,193.3	2,042.4	13,594.8
Note: Due to rounding, figures may not add to totals shown.

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¹ www.international.gc.ca/ministers-ministres/Arctic_Oslo_Centre_Arctique.aspx

² At Canada’s missions, the federal government is directly responsible for the staff, premises and assets. The missions can take the form of embassies, high commissions, embassies/high commissions (program) offices, offices of embassies/high commissions, representative offices, multilateral or permanent missions, consulates general, consulates, or consular agencies.

³ Partners are federal departments and agencies, as well as co-locators. Co-locators include Crown corporations, provincial governments and foreign governments.

⁴ These trade offices are located in China, administered in cooperation with the Canadian Commercial Corporation, and are considered points of service within the Network.

⁵ www.northernstrategy.gc.ca/index-eng.asp

⁶ www.international.gc.ca/ministers-ministres/Arctic_Oslo_Centre_Arctique.aspx

⁷ http://g8.gc.ca/ministers-meetings/foreign-ministers/g8-foreign-ministers-statement-on-nuclear-non-proliferation-disarmament-and-peaceful-uses-of-nuclear-energy

⁸ Clients are federal departments and agencies, Crown corporations, provincial governments and foreign governments.

⁹ Following a recommendation of the Comptroller General of Canada, Canada Account information is not included in the financial statements in Section 3 of this report.

¹⁰ EDC is a Crown corporation that provides financing and insurance solutions to help Canadian exporters and investors expand their international business. Under the Export Development Act, the Minister for International Trade (with the concurrence of the Minister of Finance) may authorize EDC to undertake loans from the Canada Account that go beyond its normal risk but that are deemed by the government to be in the national interest. EDC administers the Canada Account. However, because EDC is included in the department’s portfolio, DFAIT reports Canada Account transactions in its estimates. Canada Account transactions have no impact on the department’s budget, since these transactions are considered statutory items (i.e. under authorities approved by Parliament through the Export Development Act).

¹¹ www.tbs-sct.gc.ca/reports-rapports/cp-rc/index-eng.asp

¹² www.international.gc.ca/department/mandate-en.asp

¹³ The allocation of total actual FTEs is provided by program activity in Section 2 and does not necessarily reflect the location where the employees are posted (headquarters or missions).

¹⁴ The RPP listed a second indicator: “Percentage of self-evaluations reporting that Canada’s policies and interests have been advanced, either bilaterally or multilaterally.” The quality and utility of this indicator were reviewed and the indicator was subsequently removed from DFAIT’s Performance Measurement Framework.

¹⁵ Commencing in the 2009-2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by program activity between fiscal years.

¹⁶ Exceeded: More than 100% of the expected level of performance; Met all: 100% of the expected level of performance; Mostly met: 80% to 99% of the expected level of performance; Somewhat met: 60 to 79% of the expected level of performance; Not met: Less than 60% of the expected level of performance.

¹⁷ The Chief Financial Officer (CFO) model is the operational state for financial management within government that encompasses the move to increased accountability in the Federal Accountability Act and the new Financial Management Policy Suite Framework.

¹⁸ Officers include Foreign Service, Management Consular, and Commercial and Economic streams.

¹⁹ http://www.tbs-sct.gc.ca/rpp/2010-2011/inst/ext/ext00-eng.asp

²⁰ This is not an exhaustive list.

²¹ Includes assessed contributions for Canada’s membership in international organizations and non-assessed grants and contributions.

²² Minister of State of Foreign Affairs (Americas): motor car allowance expenditure was a new item this fiscal year and was in the amount of $2,070.

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