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|The Honourable Peter Van Loan
Minister for International Trade
|The Honourable Lawrence Cannon
Minister of Foreign Affairs
We are proud to present the Report on Plans and Priorities 2010-2011 for Foreign Affairs and International Trade Canada (DFAIT). This report demonstrates how DFAIT advances Canada's global agenda, with a determination to help strengthen Canada's economic prosperity, to ensure the security of Canadians and their interests, and to reflect our democratic values and to offer, in Canada and through our missions abroad, the most effective possible services to Canadians. In addition we are committed to modernize the department and align its operations to cope with emerging demands and changing global realities.
In the past year, DFAIT responded assertively to the issue at the top of the international agenda—the worldwide recession. Through efforts, such as the launch or negotiation of agreements on free trade, investment, and science and technology, DFAIT continued its implementation of the government's Global Commerce Strategy, which aims to help Canadians take full advantage of global commercial opportunities. The department also supported Canada's participation in Afghanistan, established constructive relationships with the new United States administration, advanced our engagement in the Americas, led development of Canada's Arctic policy, and began intense preparations for Canada's hosting of the G8 and G20 summits in 2010.
The G8 and G20 summits present unique opportunities to demonstrate Canadian leadership on the global stage. By building pragmatic and results-based agendas, Canada will demonstrate the effectiveness of each forum in addressing pressing global issues. The Muskoka G8 Summit will focus on international peace and security and development, where Canada will champion a signature initiative on Maternal and Under 5 Child Health. The Toronto G20 Summit will focus on core economic and financial issues, with a view to advancing and implementing key G20 commitments, including the Framework for Strong, Sustainable and Balanced Growth.
Also, over the next year, DFAIT will continue Canada's campaign for a UN Security Council seat for 2011-2012.
Given the government's commitment to ensuring that Canada continues to emerge strongly from the global recession, DFAIT will seek greater international economic opportunities for Canadian business, in keeping with the government's Global Commerce Strategy, particularly in relation to growing and emerging markets. For instance, DFAIT will work to advance Canada's negotiations with the European Union toward the Comprehensive Economic and Trade Agreement, while pursuing progress in the World Trade Organization's Doha Round and advancing bilateral accords with selected partners on trade, investment, and science and technology. The department will showcase Canada as a destination of choice for foreign investment and Canadian firms as attractive partners, including in the commercialization of innovation.
In Canada's own neighbourhood, DFAIT will continue close collaboration with the Obama administration on key issues, such as the global economy, Afghanistan, Haiti, energy and climate change. DFAIT will build on the agreement, reached in February 2010, which will enable Canadian companies to participate in United States infrastructure projects financed under the American Recovery and Reinvestment Act. The department will deepen Canada's engagement in the Americas and showcase Canada as a reliable supporter of democratic rule, a preferred trading partner as well as a key actor in addressing security threats.
With regard to Canada's involvement in the North Atlantic Treaty Organization (NATO)-led Afghan mission, the department will continue to support Canada's whole-of-government engagement and coordination with international allies and partners to strengthen governance, to promote peace, and to improve security in Afghanistan. DFAIT will lead the development of an integrated strategy for the 2011 transition of Canada's mission in Afghanistan.
In 2010-2011, DFAIT will work to advance Canada's Arctic Foreign Policy. The department will continue to assert leadership with respect to Canadian sovereignty and advance collaboration with Arctic partners on issues such as the environment, development and governance.
Finally, DFAIT will further implement its transformation agenda to modernize its operations, through efforts that include enhancing Canada's international platform; strengthening security at missions abroad; as well as improving its accountability; its management of human and financial resources; and its commercial, consular and passport services for Canadians. All of these efforts will enhance the department's ability to deliver top quality policy advice and support to the government.
To learn more about all of DFAIT's plans for 2010-2011, we encourage all Canadians to read this report and to explore the department's comprehensive Internet presence at international.gc.ca. We are confident that 2010-2011 will be another year of tangible achievements that provide real benefits to all Canadians.
What DFAIT Does: 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. DFAIT shapes Canada's responses to international issues and events, manages bilateral and multilateral relationships, and delivers programs worldwide. DFAIT advances Canada's interests globally, enables Canadians to be more engaged internationally, and provides services and assistance to Canadians abroad. Its activities include the delivery of policies, programs and services to Canadians.
DFAIT also manages Canada's network, which provides the infrastructure and services abroad that enable its own work and that of its 31 partners operating abroad.1 As of January 2010, the Government of Canada's network comprised more than 300 points of service in 168 countries, including 173 missions abroad and 17 regional offices across Canada.2 Within the network, consular services are provided at over 250 points of service and commercial services are provided at 150 trade offices. As of the end of 2009, the department had just over 10,000 active employees in Canada and abroad.
DFAIT has three strategic outcomes: Canada's International Agenda, International Services for Canadians, and Canada's International Platform. The first outcome is about the practice of Canadian advocacy and diplomacy, reflecting the country's interests and values. The second outcome comprises provision of international commercial, consular and passport services to Canadians. The third refers to DFAIT's management of missions abroad on behalf of the Government of Canada.
DFAIT's Strategic Direction Going Forward: What follows is a brief explanation of how the department's five 2010-2011 priorities reflect evolving global realities, challenges and opportunities, along with a summary of the main plans for each priority.
1This includes 31 federal departments and agencies, Crown corporations, provincial governments, other national governments and non-governmental organizations.
2At 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.
Canada's success in building a sustainable recovery and long-term competitive strength is fundamentally linked to its engagement with the global setting. It is for that reason that the pursuit of economic opportunity remains DFAIT's leading priority. With its world-class financial and banking system, its potential to become an energy superpower, its highly skilled labour force, and its competitive corporate tax rates, Canada is well positioned to succeed in world markets and to attract foreign investment. However, there are international developments that could adversely affect Canada, such as the uneven and potentially fragile economic recovery of Canada's major trading partners, persistent global financial imbalances, the slower-than-expected pace in concluding the World Trade Organization's Doha Round, and the threat of protectionism in many countries. In this context, there is a premium on the effective promotion and advocacy of Canada's economic interests. In support of the government's national competitiveness strategy (Advantage Canada) and Economic Action Plan, DFAIT will undertake the following initiatives:
Through its new Integrative Trade Model initiative, DFAIT's trade commissioners will offer integrated and innovative solutions to clients, based on their needs and in line with government priorities, by leveraging the combined value of DFAIT's commerce network and by strengthening the network's capacity in key sectors.
DFAIT will make an accelerated push to pursue economic opportunities in priority markets identified in the government's Global Commerce Strategy. With a continuing focus on emerging markets, the department will bring to full operation the new Canadian trade offices in India, China and Brazil.
DFAIT will continue negotiation of the Comprehensive Economic and Trade Agreement with the European Union, and seek to advance or conclude free trade agreements with other partners (e.g. Korea, the 15 Caribbean nations that make up CARICOM, the Dominican Republic, and Central American nations).
DFAIT will work to brand Canada as a destination of choice for investment and to promote commercial partnerships between Canadian and international firms related to commercialization of innovation.
DFAIT will pursue foreign investment promotion and protection agreements as well as science and technology partnership agreements with key countries.
DFAIT will work with its portfolio partners, Export Development Canada (EDC) and the Canadian Commercial Corporation, to ensure Canadian firms have access to competitive and innovative financial products in order to sustain their success.3
The G20 summit being hosted in Canada provides an invaluable opportunity to address issues such as financial reform, protectionism and other issues, as well as an occasion to showcase Canada as a business partner of advantage.
The United States remains Canada's most important economic and security partner, with some $2 billion in goods and services crossing the border daily. Canada's security and prosperity are inextricably linked to effective management of the relationship with the United States on a range of bilateral, regional and global economic issues. The most significant plans are as follows:
The department will continue to work through Canada's network of missions in the United States to further assist Canadian clients in accessing global value chains.
DFAIT will continue collaboration with the United States, using a risk-based approach, to build a secure border that facilitates commerce and travel.
The department will also build on the agreement, reached in February 2010, which will enable Canadian companies to participate in United States infrastructure projects financed under the American Recovery and Reinvestment Act.
Canada's engagement in the Americas is predicated on a whole-of-government approach that advances the key themes of democratic governance, prosperity and security in the region. The department will continue to position Canada as a reliable supporter of democratic rule, a preferred trading partner and a key actor in addressing regional security threats. Key plans related to DFAIT's activities in the Americas include the following actions:
DFAIT will broaden cooperation with key partners and work to increase the capacity of regional institutions, like the Organization of American States (OAS), in areas such as combating crime, conflict prevention and peace operations.
DFAIT will deepen Canada's involvement in international efforts to help Haiti recover and rebuild, following the January 2010 earthquake. Canada has already shown leadership in hosting the Ministerial Preparatory Conference of the Group of Friends of Haiti, which was held in Montreal in late January 2010.
The NATO-led mission remains Canada's priority. Afghanistan's stability and development is fundamental to regional stability and to Canada's own security. An international consensus on the way forward, led by President Obama's new strategy announced in late 2009 and the conclusions of the London Conference of January 2010, commits all sides to greater progress. The most significant plans are as follows:
Over the coming year, Canada will continue to work toward an Afghanistan that is democratic, self-sufficient and stable. One objective will be to create a more secure Kandahar that is better governed and supported by a more capable national government that can deliver basic services to its citizens.
DFAIT will lead development and implementation of an integrated strategy for the 2011 transition of Canada's mission in Afghanistan. This will emphasize analysis of the civilian role beyond 2011, development and diplomatic efforts to help increase the security capacity of Afghan National Security Forces, and strengthening of governance and respect for human rights.
In relation to neighbouring countries, DFAIT will work to strengthen international engagement on Pakistan, through the multilateral Friends of Democratic Pakistan process as well as with key allies and regional players, including China, Japan, South Korea, Australia, and India.
The emergence of a multi-polar world has fundamentally challenged the capacity of conventional global governance to deal with issues of global impact. The urgent need to address challenges arising from the worldwide recession, such as the reform of global financial architecture, as well as horizontal issues such as climate change have, in part, accounted for the rising interest in, and influence of, the G20. In hosting the G8 and G20, Canada will have a unique opportunity to exert influence in the search for innovative solutions to an array of global challenges. Key plans include the following:
The department will provide intensive support for Canada's hosting of the G8 and G20 summits in June, 2010, not only in ensuring efficient organization and logistics but in shaping meaningful, innovative outcomes across a range of issues.
Canada will use its G8 chairmanship to support development objectives such as maternal and child health in the developing world, and to build consensus on shared challenges in peace and security.
DFAIT will continue Canada's campaign for a seat on the UN Security Council for 2011-2012.
Overall, DFAIT will continue its efforts to ensure that Canada's values and interests are reflected in multilateral forums, including those of the UN, the G8 and G20, La Francophonie, and NATO as well as regional organizations. DFAIT delivers results related to its priorities through diplomacy and advocacy, bilaterally and multilaterally. Canada's efforts to improve human rights, democratic governance, and corporate social responsibility around the world serve to protect Canadians and their interests at home and abroad.
With regard to the Arctic, a region of growing global interest in terms of commerce, resources and transportation, DFAIT will continue to develop and promote Canada's Arctic Foreign Policy — the international dimension of the Government of Canada's Northern Strategy. The department will work bilaterally with other Arctic partners, within the Arctic Council, with the five Arctic coastal states and in other multilateral forums to assert Canada's Arctic sovereignty and to promote collaboration on issues of environment, economic and social development, and governance.
The rapidly changing nature of the international environment has required the department to undertake comprehensive actions to modernize all aspects of its operations. DFAIT must ensure that it is as agile and responsive as possible in order to be able to address the risks and to take advantage of the opportunities generated by new global realities. It is against this backdrop that a comprehensive transformation agenda to modernize the department was launched in 2008, an effort that will continue in 2010-2011.
DFAIT will continue improvements to its governance structure, to its delivery of commercial, consular, and passport services, and to its management of Canada's mission network on behalf of the entire government.
In line with its Integrated Trade Model initiative, DFAIT will create trade commissioner positions within up to 10 national industry associations across Canada to begin development of global strategies for key sectors. This initiative reflects DFAIT's commitment to deepen its partnership with the private sector in helping to increase the global competitiveness of Canadian businesses.
DFAIT will continue its ambitious reallocation of its human resources abroad, which began in 2007-2008. By 2011-2012, a total of 400 positions will have been moved to missions in priority countries and emerging markets as well as to regional offices across Canada. At the same time, the number of headquarters positions will be reduced by 400.
This shift will include reallocation of some positions to DFAIT's Regional Services Centre for Europe, the Middle East, and Africa, which was launched in fall 2009 for the purpose of improving operational agility and client service. Over the planning period, DFAIT will design and implement two more of these centres, for the Americas and the United States respectively.
In renewing its business model, DFAIT will aim for greater economy and effectiveness, while strengthening its policy and program delivery capacity. Finally, it will make ongoing improvements to its human resources and financial management, and increase its accountability.
Other Important Ongoing Work: Some other important initiatives over the planning period involve the delivery of critical services to Canadians, as follows:
The department will continue to advance Canada's interests in the area of non-proliferation of weapons and materials of mass destruction. It will work with the UN Security Council and like-minded partners to address Iran's nuclear program and contribute to the success of the Nuclear Security Summit by laying groundwork at the G8 Foreign Ministers' Meeting and at the Non-Proliferation Treaty Review Conference.
To strengthen its consular and emergency response in Canada and abroad, DFAIT will establish an Emergency Watch and Response Centre. The centre will address all hazards outside Canada (e.g. those related to security, consular issues, pandemics and natural disasters).
Passport Canada will further strengthen the integrity and security of Canadian travel documents by continuing to work toward implementation of the ePassport, which incorporates a computer chip, and through improved means of verifying the identity of passport applicants.
The Indispensable Role of the Missions: Canada's missions abroad — which perform varying combinations of political, bilateral, multilateral, trade-related, and consular work — are an indispensable element in DFAIT's efforts to carry out its core business. The missions are also an invaluable source of information for the Government of Canada in relation to Canada's contribution to the policy-setting agenda of the international community. They provide Canada with a formal global presence: 173 missions in 107 countries (37 in Africa and the Middle East, 37 in Asia-Pacific, 45 in Europe, 26 in Latin America and the Caribbean, and 28 in North America). DFAIT regularly assesses its mission network and makes adjustments, as required (i.e. openings, closings and resource reallocations), to ensure full alignment with government and departmental priorities and to enable the most effective response to changing circumstances. Canada's missions abroad integrate and coordinate the government's international activities.
DFAIT's overall focus throughout the planning period with respect to the missions will be to emphasize the network's role as a platform for horizontal alignment and policy development. For instance, it will develop a department-wide emergency management training program that will first be offered to key players, such as heads of missions and management-consular officers of the Foreign Service. And, it will provide increasingly consistent, strategic support in managing consular cases and directing other services to Canadians abroad, while strengthening engagement with missions and international partners in the management of complex situations.
Financial Summary: In fiscal year (FY) 2010-2011, DFAIT is planning to spend $3,212 million. As indicated in the table below, DFAIT's budget is made up of the foreign affairs and international trade component as well as the Export Development Canada component (the Canada Account). For the foreign affairs and international trade component, the total planned spending is relatively stable throughout the planning period. However, there are variances that are largely the result of specific initiatives not being funded equally over the three fiscal years, as follows: funding for the 2010 G8 and G20 summits ($78 million in FY 2010-2011 only); initial funding related to Haiti ($17.3 million in FY 2010-2011 only); and funding related to Afghanistan ($32 million in FY 2010-2011 only).
EDC (Canada Account) is a Crown corporation in DFAIT's portfolio that provides financing and insurance solutions to Canadian firms. Under the Export Development Act, the Minister for International Trade (with the concurrence of the Minister of Finance) may authorize EDC (Canada Account) to undertake transactions that go beyond its normal risk parameters but are deemed by the government to be in the national interest. Such transactions are facilitated through the Canada Account. While EDC administers the Canada Account, DFAIT is responsible for it. However, Canada Account transactions have no impact on DFAIT's departmental spending, since they are separately funded through statutory authorities.
|Export Development Canada (Canada Account)||167||(211)||(206)|
|Total for DFAIT||3,212||2,708||2,645|
Broken down by strategic outcome (as per the Program Activity Architecture or PAA), DFAIT's planned spending in FY 2010-2011 will be as follows: Strategic Outcome 1 (Canada's International Agenda): $1,430 million–44 percent of total planned spending; Strategic Outcome 2 (International Services to Canadians): $806 million–25 percent; Strategic Outcome 3 (Canada's International Platform): $888 million–28 percent; and Internal Services: $88 million–3 percent.
The department is planning to spend about 44 percent ($1,430 million) of its total budget to support the first strategic outcome. This includes $617 million in assessed contributions to international organizations, such as the United Nations Organization, the United Nations Peacekeeping Organizations, and the World Health Organization. It also includes $175 million for the Global Peace and Security Fund, $108 million for the Global Partnership Program, and $31 million for the Anti-Crime Capacity Building Program.
About 25 percent ($806 million) of DFAIT's budget is intended to support the second strategic outcome. This includes EDC (Canada Account) loans ($167 million), over $49 million for the Global Commerce Strategy, $33 million for the new Consular Services and Emergency Management Branch, and over $321 million for Passport Canada operational expenditures.
The remaining 28 percent ($888 million) of DFAIT's total planned spending supports Canada's international platform, which is used by DFAIT and 31 partners that operate at missions abroad. This includes $213 million at DFAIT headquarters in support of Canada's network of missions abroad, and $376 million at missions abroad for common services.
Planned expenditures of the department's Internal Services will amount to over $88 million, allocated against all three strategic outcomes.4
Like other federal departments and agencies, DFAIT faces budgetary constraints. It has made—and will continue to make—cumulative contributions to government-wide reallocation exercises of over $195 million in FY 2010-2011, as well as more than $214 million on an ongoing annual basis, starting in FY 2011-2012.
For FY 2010-2011 to FY 2012-2013, the department's total spending will correspond to existing reference levels, plus funding for items approved after finalization of its 2010-2011 Main Estimates submission. Given that the department operates worldwide, its annual expenditures are influenced by fluctuations in foreign currencies, varying rates of foreign inflation, and changes in assessed contributions related to Canada's memberships in international organizations.
Performance Management: DFAIT's regular and ongoing assessment of its program and management performance is linked to its Management Resources and Results Structure (MRRS), which identifies its governance structure, as well as to its three strategic outcomes, Program Activity Architecture, and Performance Measurement Framework. The department's governance structure includes four boards that oversee the work pertaining to each strategic outcome as well as to Internal Services. These boards, made up of relevant assistant deputy ministers and directors general, report to Executive Council as well as to the transformation and resource management committees.
The Performance Measurement Framework shows how DFAIT's financial and human resources link to its expected results, and identifies the relevant positions accountable for those results. DFAIT's performance indicators are associated with the framework, the performance agreements of its staff, and its annual Management Accountability Framework (MAF) assessment conducted by Treasury Board of Canada Secretariat (TBS). The MAF is structured around 10 key elements that collectively define management and establish expectations for good management of a department. DFAIT will update its MRRS-PAA for 2011-2012.
In keeping with TBS requirements, only a few of the full range of DFAIT's performance indicators are mentioned here. At the strategic-outcome and program-activity levels of the Performance Measurement Framework, the department generally uses indicators associated with client feedback or an assessment of social and economic impact. At other levels of the framework, DFAIT uses different types of effectiveness and efficiency indicators, as well as the results of regularly scheduled risk-based audits and evaluations (see more detail about results-based management in the Internal Services subsection of Section 2). Through its transformation agenda, DFAIT seeks to reinforce a business culture of continuous innovation and improvement, in part by strengthening its performance management.
Ahead in Section 1: Section 1 explains DFAIT's raison d'être and responsibilities, its strategic outcomes and Program Activity Architecture, planning summary, risk analysis, and expenditure profile.
4As per requirements of Treasury Board of Canada Secretariat, DFAIT is reporting on Internal Services as Program Activity 8. The other seven program activities align with one of the strategic outcomes (i.e. International Policy Advice and Integration, and Diplomacy and Advocacy with the first strategic outcome; International Commerce, Consular Affairs, and Passport Canada with the second strategic outcome; and Canada's International Platform: Support at Headquarters, and Canada's International Platform: Support at Missions Abroad with the third strategic outcome.
This Report on Plans and Priorities (RPP)provides Canadians with information on what DFAIT expects to achieve over a three-year planning period, beginning in 2010-2011.
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).
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, and 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 mission 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 help advance advocacy of 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.
DFAIT's Program Activity Architecture clearly identifies the department's strategic direction by listing its three complementary strategic outcomes (i.e. the long-term, enduring benefits to Canadians that the department strives to achieve). The first strategic outcome is about the practice of Canadian advocacy and diplomacy while reflecting the country's interests and values. The second is about the provision of international commercial, consular, and passport services to Canadians. The third concerns 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 Affairs, DFAIT provides Canadians with information and advice on safe travel to foreign countries; and helps Canadians abroad to handle trouble or emergencies.
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:
|Program Activity 6:
Canada's International Platform: Support at Headquarters
|Program Activity 2:
Diplomacy and Advocacy
|Program Activity 4:
|Program Activity 7:
Canada's International Platform: Support at Missions Abroad
|Program Activity 5:
|Program Activity: Internal Services|
The planning summary presents financial and human resources information for the three-year planning period covered by this report. It also provides a breakdown of planned spending by program activity, and shows how each program activity aligns with overall Government of Canada outcomes.
|Full-time equivalents (FTEs) are different from the number of staff the department has. One FTE is equivalent to one full-time worker, and an FTE of 0.5 is equivalent to one half-time worker.|
The above figures project a decline in financial resources, which is attributable to variations in the future-year forecasts of EDC's Canada Account activity and to the incremental planned expenditures occurring only in FY 2010-2011 for the hosting of the G8 and G20 summits in 2010. Adjusting for these factors, the department's remaining budget and levels of planned spending will remain relatively stable over the planning period. The projected growth in human resources (FTEs) results from Passport Canada's plan to increase its workforce in order to meet an anticipated demand for passport services.
|Percentage of international partners and institutions that recognize and support key Canadian positions||Obtain baseline information.|
|Program Activity||Forecast Spending
|Alignment to Government of Canada Outcomes|
|International Policy Advice and Integration||166.9||215.4||128.1||125.3||A Safe and Secure World Through International Cooperation|
|Diplomacy and Advocacy||1,222.6||1,214.9||1,154.0||1,152.0||A Safe and Secure World Through International Cooperation|
|Total Strategic Outcome 1||1,389.5||1,430.2||1,282.1||1,277.3|
|Percentage of clients who were satisfied with consular, passport, and commerce services provided by the department||70%|
|Program Activity||Forecast Spending
|Alignment to Government of Canada Outcomes|
|International Commerce||DFAIT component||224.4||248.5||248.0||247.3||A Prosperous Canada through Global Commerce|
|EDC (Canada Account) component||9,301.0||167.0||(211.1)||(205.5)|
|Total International Commerce||9,525.4||415.5||36.9||41.8|
|Consular Affairs||61.0||69.6||58.2||58.2||A Safe and Secure World through International Cooperation|
|Passport Canada||348.9||321.0||362.5||347.4||A Safe and Secure World through International Cooperation|
|Percentage of clients who responded favourably to common services they received||75%|
|Program Activity||Forecast Spending
|Alignment to Government of Canada Outcomes|
|Canada's International Platform: Support at Headquarters||383.4||356.1||354.6||309.3||A Safe and Secure World through International Cooperation/A Prosperous Canada through Global Commerce|
|Canada's International Platform: Support at Missions Abroad||526.0||531.9||537.7||541.7||A Safe and Secure World through International Cooperation/A Prosperous Canada through Global Commerce|
|Total Strategic Outcome 3||909.4||888.1||892.4||851.1|
|Program Activity||Forecast Spending
|Alignment to Government of Canada Outcomes|
This table lists the department's priorities, shows their linkage to the PAA and identifies the most significant plans related to each of them.
|Operational Priorities||Type||Links to Strategic Outcomes||Description|
|Greater economic opportunity for Canada, with a focus on growing/emerging markets||Ongoing||Strategic Outcome (SO) 1,2 Program Activity (PA) 1,2,3||
Why this is a priority: In uncertain and challenging economic times, continued trade liberalization and increasing access to new and traditional markets are fundamental to protecting and advancing Canada's prosperity. Canada must secure favourable terms of access to key markets as well as to the investment and innovation opportunities where Canadian commercial interests are greatest.
Plans for meeting the priority: DFAIT will contribute to economic recovery and opportunity by continuing to implement the Global Commerce Strategy to boost Canadian commercial engagement in the world, with a focus on growing and emerging markets. DFAIT will seek to advance negotiations toward the Comprehensive Economic and Trade Agreement (CETA) with the European Union. The department will also advance Canada's trade and investment liberalization and market access interests bilaterally and in multilateral forums such as Asia-Pacific Economic Cooperation) (APEC), and the G8/G20 as well as by seeking a successful conclusion to the Doha Round. The department will continue to showcase Canada's advantages as a destination for foreign direct investment through a global visibility campaign, expanded global R&D partnerships, and promote commercialization of innovation. It will also promote Canada's Asia-Pacific Gateway and Corridor Initiative.
|United States and the Americas||Ongoing||SO 1
Why this is a priority: The United States is Canada's most important economic and security partner (see Canada-U.S. Relations). Management of the shared border to promote economic recovery and to enhance competitiveness is a key element of the bilateral relationship. The shared border must ensure security while facilitating the flow of goods, people and commerce. The 2009 change in the United States administration has presented a critical opportunity to reinvigorate the close relationship and to advance cooperation on key issues such as security cooperation, trade liberalization and energy. This priority involves strategic engagement with Mexico and other countries of the hemisphere with which Canada shares interests and concerns and where, as emerging economies, they present Canada with new opportunities.
Plans for meeting the priority: DFAIT will build on its engagement with the United States, focusing on competitiveness, the global economy, trade, investment and innovation relations, peace and security, Afghanistan, Haiti, counterterrorism, security issues at the border, trans-boundary water management, energy and climate change, and the Arctic. The department will promote and protect Canada's trade, investment and innovation interests in North America (e.g. by advocating on behalf of Canadian exporters on the “Buy American” issue).The department will increase Canada's whole-of-government engagement with Mexico, focusing on Canadian competitiveness, security, human rights and hemispheric interests.
DFAIT will deepen its whole-of-government engagement in the Americas by building on synergies and concentrating efforts for greater impact. DFAIT will lead Canada's efforts in Haiti and ensure that the Americas are included on the agendas of multilateral forums, such as the G8 and G20, and figure prominently in Canada's relationship with the United States and Mexico. Furthermore, DFAIT will assert Canadian leadership as the host of the 2011 Inter-American Development Bank meeting and will pursue greater trade liberalization, particularly with CARICOM, including the Dominican Republic and Central America, while continuing to advocate for improved market access for Canadian companies in the Brazilian market. DFAIT will continue to assert Canada's leadership role in regional forums, particularly the Organization of American States (OAS), and in areas such as corporate social responsibility and human capital development. It will also ensure a coherent Canadian response to crises in the hemisphere.
|Afghanistan, including in the context of neighbouring countries||Ongoing||SO 1,2,3
Why this is a priority: Canada is in Afghanistan at the request of that country's government and in accordance with UN resolutions authorizing a NATO-led multinational security force. Canada's ultimate aim is to leave Afghanistan to Afghans in a country that is better governed, more peaceful, more secure and less likely to be a source of regional and global instability.
Plans for meeting the priority: DFAIT will take the lead in developing and implementing an integrated strategy for the 2011 transition of Canada's mission in Afghanistan, with a focus on development and diplomatic efforts that will, among other things, help develop the security capacity of the Afghan National Security Forces and strengthen governance and respect for human rights.
In the meantime, the department will continue to support Canada's whole-of-government engagement in Afghanistan and coordination with international allies and partners. This will include pressing for progress on the three Afghanistan 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.
|Asserting Canadian leadership in emerging global governance||New||SO 1,2
Why this is a priority: In an uncertain multi-polar world, Canada must play a lead role in emerging global governance. DFAIT will leverage high-profile events such as the G8/G20 to develop innovative international responses to global challenges in the areas of economic recovery, financial reform, peace and security, development, energy and climate change.
Plans for meeting the priority: In addition to raising Canada's visibility at the UN Security Council, Canada will prepare and negotiate Canadian policy priorities with international partners as President of the G8 and as host of both the G8 and G20 summits in 2010. This work will showcase Canada as a dynamic partner and a global policy leader on economic, environmental, development, as well as security-related issues such as nuclear security and the threats posed by fragile states and counterterrorism. This priority includes positioning Canada as a leading Arctic nation, working with other Arctic states and the Arctic Council.
|Management Priority||Type||Links to Strategic Outcomes||Description|
|Transforming the department||Ongoing||SO 1,2,3||
Why this is a priority: This priority is in keeping with the results of DFAIT's 2007 strategic review, the purpose of which was to reinvigorate the department's structure and operations. The transformation process will create a modern, integrated 21st-century foreign and trade ministry, flexible in responding to future needs while focused on its core mandate. It will ensure the right people are in the right places serving Canadians and making a difference in the world, and will be able to generate continuous innovation and new thinking.
Plans for meeting the priority: DFAIT's ambitious organizational renewal involves ensuring closer alignment with government priorities, strengthening the international platform, improving services to Canadians, focusing on core business, strengthening accountability and financial management, and renewing human resources. The department will increase its focus on transformation at missions and regional offices. DFAIT will strengthen its policy capacity, simplify business practices, and renew the department's business model with a view to both economy and effectiveness.
Departmental operations are constantly affected by global trends and events. A major objective of the department's ongoing transformation process is to ensure that DFAIT can be as flexible and prepared as possible to address sudden changes in the international landscape.
Risks may be defined as the effect of uncertainty on the achievement of an organization's objectives. The department addresses uncertainty and possible exposure to risks by identifying key potential events or circumstances and estimating their likelihood and impact. Risk analysis is used to develop mitigation strategies directed at reducing or preventing any impairment of DFAIT objectives and/or at seizing opportunities to ensure their achievement. However, it should be noted that mitigation, especially in dealing with externally oriented risks, is usually more complicated to achieve, particularly in the short term. The ongoing integration of risk management, planning and performance management functions at DFAIT assists in addressing such challenges. Key strategic risks for the department are described below, and plans for managing them are set out in the table that follows.
Highly volatile economic and political conditions at home and abroad: Canada is likely to be affected in an ongoing manner by the world financial crisis of 2009 and the fragile recovery now under way. Potential impacts include reduced demand for Canadian exports in some key markets, increased protectionism related to higher levels of unemployment in some countries, greater constraints on the fiscal positions of many national governments, and unexpected changes in the global policy or regulatory framework. This risk also includes geopolitical shifts under way before the financial crisis that may now accelerate to some degree, with uncertain consequences.
Challenges in providing services to Canadian citizens abroad and protection of Government of Canada personnel, interests and assets: More and more, Canadians are travelling and living abroad. The changing profile of Canadian travellers, their increased travel to remote and/or dangerous destinations, and their pursuit of business in areas of the world that involve heightened political and economic risks are all factors that complicate DFAIT's efforts to provide services to Canadians at home and abroad. At the same time, natural disasters and human-related acts have the potential to affect the security of Government of Canada personnel, interests and assets abroad, as well as DFAIT's capacity to respond to humanitarian crises abroad.
Challenges related to external and internal communications: DFAIT's external communications are expected to face risks due to a number of factors, including the increased complexity of coordinating multi-partner communications, technological changes, and organizational dispersion. Because coherent internal communications about the department's transformation agenda will likely present challenges, it will be a top corporate priority.
Competition for resources to support departmental priorities and change management: There is a risk that, during upcoming phases of DFAIT's transformation initiative and imposition of fiscal restraints, its alignment of resources may not be allocated effectively in support of its priorities and change management on account of inadequate priority setting and alignment of resources to core business.
Existing and evolving challenges with human resources, financial and information management systems for decision making and reporting: Today's rapidly changing international environment is expected to place an increasing onus on the latest information for decision making. Reporting will continue to be a crucial function. DFAIT will need to continue to address deficiencies in resource management practices and inadequate inter-operability among its human resources, financial and information systems that could impede resource planning, decision making and reporting.
Erosion of human and knowledge capital: As a knowledge-based organization, DFAIT recognizes that its success depends on attracting, developing and retaining a highly skilled and adaptable workforce. DFAIT has three key categories of employees: rotational, non-rotational, and locally engaged. Many factors affect DFAIT's ability to recruit and retain employees, including a rapidly changing and volatile international landscape, competition across government for employees in key occupational groups, and inadequate career development and advancement opportunities.
The table below summarizes the top six risks and explains the main mitigation strategies.
|Key Risks||Linkages with PAA||Key Risk Management Measures|
|Highly volatile economic and political conditions at home and abroad||SO 1,2
|Challenges in providing services to Canadian citizens abroad and protection of Government of Canada personnel, interests and assets||SO 1,2,3
|Challenges related to external and internal communications||SO 1,2,3
All PAs and Internal Services
|Competition for resources to support departmental priorities and change management||SO 1,2,3
All PAs and Internal Services
|Existing and evolving challenges with human resources, financial and information management systems for decision making and reporting||SO 1,2,3
All PAs and Internal Services
|Erosion of human and knowledge capital||SO 1,2,3
All PAs and Internal Services
The department will continue to identify key risks and monitor the efficacy of its mitigation strategies. DFAIT will also continue to strengthen its integrated risk management function to meet evolving risk exposures and to create tangible improvements in strategic planning, service delivery, policy making, decision making and accountability. With regard to risk management practices, the department will develop ongoing guidance and tools to support a balance between accountability and the web of rules and to make sure that employees are ready to take well-informed risks.
For the 2010-2011 fiscal year (FY), the department plans to spend $3,212 million. This amount includes its FY 2010-2011 budgetary appropriation of $2,567 million approved in the Main Estimates, as well as $157 million in new planned spending, $321 million in projected revenues that Passport Canada will spend in support of its operations, and $167 million in planned spending by EDC (Canada Account). Details on the planned spending of each DFAIT program activity can be found in Section 2.
In 2007, the department reviewed the funding, relevance and performance of all its programs and spending to ensure results and value for taxpayers' money. The results of that review are reflected in the department's forecast spending amounts for the three-year planning period.
The graph below shows the department's spending trend from FY 2006-2007 to FY 2012-2013. It excludes EDC (Canada Account) disbursements in order to show the most accurate analysis possible of DFAIT's own budgetary trends. EDC's total Canada Account transactions vary significantly from year to year and represent statutory non-budgetary funding.
Annual spending varies as a result of many factors, including expenditures related to one-time initiatives. For example, the 2006-2007 spending figures increased by over $500 million due to payments made pursuant to the finalization of the United States-Canada softwood lumber agreement.
From FY 2006-2007 to FY 2009-2010, DFAIT's total spending included all parliamentary appropriations and revenue sources (i.e. Main Estimates, Supplementary Estimates, funding from Treasury Board of Canada Secretariat for collective bargaining and horizontal initiatives, and revenues from passport fees). For the FY 2010-2011 to FY 2012-2013, the department's total spending corresponds to existing reference levels, plus funding for items approved after finalization of its 2010-2011 Main Estimates submission.
Given that the department operates worldwide, its annual expenditures are influenced by fluctuations in foreign currencies, varying rates of foreign inflation, and changes in assessed contributions related to Canada's memberships in international organizations. Since FY 2006-2007, the department's reference levels have been augmented as a result of incremental funding for significant new initiatives, such as implementation of the Canada-United States Softwood Lumber Agreement, ongoing work of the Counter-Terrorism Capacity Building Program, creation of the Consular Services and Emergency Management Branch, transfer of the Investment Cooperation program to DFAIT from the Canadian International Development Agency, and continued implementation of the Global Commerce Strategy, as well as for measures to strengthen the departmental network abroad. Over the same period, the department has contributed significantly to a number of government-wide restraint exercises and, as a result, has had its reference levels reduced by $188 million in FY 2009-2010 and by $195 million in FY 2010-2011. A further annual reduction of $214 million will begin in FY 2011-2012.
There are significant differences between planned spending in FY 2009-2010 and 2010-2011 for certain program activities, such as International Commerce. This program activity is made up of the foreign affairs and international trade component as well as EDC (Canada Account). In Budget 2009, the Government of Canada launched its Economic Action Plan. Under the plan, EDC (Canada Account) invests funds in various industrial sectors. A net total (i.e. disbursements less repayments received) of $9,300 million is to be disbursed in loans to help Canadian industry in FY 2009-2010. These transactions supplement EDC's regular operations. For the FY 2010-2011, EDC (Canada Account) is planning a disbursement related to the Economic Action Plan of $725 million.
Another program activity with an important variance in planned spending between FY 2009-2010 and 2010-2011 is International Policy Advice and Integration. This variance is mainly attributable to the funding related to hosting the G8 and G20 summits in 2010. The planned spending for FY 2010-2011 includes a total of $78 million in funding for these summits. The DFAIT component of the International Commerce program activity has a planned spending variance between FY 2009-2010 and FY 2010-2011 due to the recent transfer of the $20-million Investment Cooperation Program (INC) from the Canadian International Development Agency.
Canada's Economic Action Plan
Following the approval of the Canada Economic Action Plan by the government, a total of $14.5 billion was authorized to be disbursed in support of the automotive industry in Canada.
In FY 2008-2009, the EDC (Canada Account) disbursed $250 million, the first disbursement to Chrysler Canada in support of restructuring and renewal of the automotive industry in Canada related to this plan.
In FY 2009-2010, a total of $13.5 billion was disbursed ($2.6 billion in support of Chrysler Canada and $10.9 billion in support of General Motors Canada). This financing to the two automotive companies was cost-shared with the Government of Ontario, which provided approximately one third of the funding. The Government of Canada, through the EDC (Canada Account), provided approximately two thirds. During the course of 2009-2010, the Government of Ontario repaid $4.6 billion, its share of the loans, to the EDC (Canada Account). After the 2009-2010 disbursement, approximately $6.3 billion of the GM Canada commitment was converted into shares and transferred to the Canada Development Investment Corporation.
For FY 2010-2011, EDC (Canada Account) is also planning to disburse a total of $725 million to Chrysler Canada and is expecting to receive a total of $375 million in repayments.
In summary, total net disbursements by EDC (Canada Account) related to Canada's Economic Action Plan are: $250 million in FY 2008-2009; $8.9 billion in FY 2009-2010; and $350 million in FY 2010-2011.
|Vote # or Statutory Item (S)||Truncated Vote or Statutory Wording||2009-10
|10||Grants and contributions5||726.4||923.5|
|15||Passport Canada: Capital expenditures||10.0||0.0|
|(S)||Contributions to employee benefit plans||74.5||86.6|
|(S)||Minister of Foreign Affairs: Salary and motor car allowance||0.1||0.1|
|(S)||Minister for International Trade: Salary and motor car allowance||0.1||0.1|
|(S)||Minister of State motor car allowance||0.0||0.1|
|(S)||Passport Office Revolving Fund (Revolving Funds Act R.S. 1985, c. R-8)||24.1||0.0|
|(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)||1.0||0.5|
|(S)||Payments under the Diplomatic Service (Special) Superannuation Act (R.S. 1985, c. D-2)||0.3||0.3|
|(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)||(120.5)||(552.0)|
|Note: Totals may not add due to rounding.|
The section is organized according to the department's Program Activity Architecture (i.e. by strategic outcome and corresponding program activities). Each program activity subsection begins with a brief description and a chart that shows its human and financial resources, expected results, targets and performance indicators. This is followed by a summary of the program activity's planning highlights that relate to DFAIT's five 2010-2011 priorities and those that pertain to its ongoing work (i.e. the basic operations that sustain the department and that are done on a year-over-year basis). Each subsection ends with information on how the program activity benefits Canadians.