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2006-2007
Departmental Performance Report

NAFTA Secretariat — Canadian Section

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The Honourable David Emerson
Minister of International Trade

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Table of Contents

SECTION 1 – OVERVIEW

1.1       The Minister’s Message
1.2       Management Representation Statement
1.3       Summary Information
            1.3.1    Mandate
            1.3.2    Operating Framework
            1.3.3    Key Co-Delivery Organizations
            1.3.4    Risks and Challenges
                        1.3.4.1    Tripartite Nature of the NAFTA Secretariat
                        1.3.4.2    Maintaining Organizational Capability
            1.3.5    Financial and Human Resources
1.4       Summary of Departmental Performance
1.5       What the Priorities Mean for Canadians

SECTION 2 – ANALYSIS OF PERFORMANCE BY STRATEGIC OUTCOME

2.1       Strategic Outcome
            2.1.1    Program Activity
2.2       Performance Measure Strategy
2.3       Performance Accomplishments
            2.3.1    Support to Panels and Committees
            2.3.2    Unbiased and Equitable Administrative Process
            2.3.3    Openness and Accountability
            2.3.4    National and International Collaboration
            2.3.5    Operational Efficiency and Effectiveness
            2.3.6    Highest Quality Service
2.4       Financial Information

SECTION 3 – SUPPLEMENTARY INFORMATION

3.1       Overview
3.2       Who We Are
3.3       Where We Are Located
3.4       How We Are Organized
3.5       Roles
3.6       Travel Policies
3.7       Responsibility Chart

ANNEX A – The Mandate of the NAFTA Secretariat
ANNEX B – Guiding Principles
ANNEX C – Financial Statements

HOW TO CONTACT US  

SECTION 1 – OVERVIEW

1.1       The Minister’s Message

The North American Free Trade Agreement (NAFTA) – now in its 14th year – stands as a clear example of success for all three North American partners. In today’s fiercely competitive global landscape, the NAFTA has contributed to sharpen the competitive advantages of businesses, and to the creation of wealth and increased the prosperity of our citizens. 

Under the NAFTA, Canada’s annual merchandise trade with its NAFTA partners has nearly doubled since 1994, reaching $597.2 billion in 2006.  Trade in services has nearly doubled as well (from $46.4 billion in 1994 to $82.7 billion in 2004). There has also been a positive impact on investment.  Total foreign direct investment in Canada reached $448.9 billion in 2006, of which more than 61% came from our NAFTA partners. This enhanced economic activity and production has contributed to the creation of more and better paying jobs for Canadians. 

In the past decade the global business and trade environment has become increasingly complex and competitive, particularly fuelled by the rapidly changing patterns of global value chains and the rise of new and rapidly growing markets. We have to work even more closely together with our North American partners to maximize North American competitiveness and take full advantage of this new environment.

When I met with my NAFTA counterparts on August 14, 2007, we committed to increase market efficiencies, economic growth, prosperity and innovation in all three countries for the benefit of our citizens. We agreed to: develop a work plan which will address the key issues that impact our trade and identify the most effective means to further enhance it; facilitate trade in specific sectors in order to foster stronger more competitive North American value chains; and, conduct an analysis of the free trade agreements that each country has negotiated subsequent to the NAFTA, beginning with those in the western hemisphere.

In 2006-2007, the Canadian Section of the NAFTA Secretariat focussed its efforts on the improvement of its management frameworks, and responding to client’s needs and employee’s learning and development. Significant progress was achieved in these areas by becoming ISO 9001:2000 quality management system certified and by introducing a new Policy on Talent Management.  I encourage the Canadian Section of the NAFTA Secretariat to continue its high level of service in the effective, unbiased and equitable administration of the dispute settlement mechanisms of the NAFTA.

 

 

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The Honourable David Emerson
Minister of International Trade

 

1.2       Management Representation Statement

I submit for tabling in Parliament, the 2006-2007 Departmental Performance Report (DPR) for the NAFTA Secretariat, Canadian Section.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part;III of the 2006-2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;

• It is based on the department’s approved Strategic Outcome and Program Activity Architecture structure that was approved by the Treasury Board;

• It presents consistent, comprehensive, balanced and reliable information;

• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and

• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

__________________________________________
Françoy Raynauld, Ph.D.
Secretary
NAFTA Secretariat, Canadian Section



_______________________________
Date

1.3       Summary Information

This report demonstrates the Canadian Section’s commitment to sound management practices in the administration of international trade dispute resolution mechanisms. The report emulates the four principles for public reporting set by Treasury Board of Canada Secretariat (TBS). These principles require departments and agencies to:

• focus on the benefits for Canadians, explain the critical aspects of planning and performance, and set them in context;

• present credible, reliable, and balanced information;

• associate performance with plans, priorities, and expected results, explain changes, and apply lessons learned; and

• link resources to results.

The report begins by briefly describing the purpose of the NAFTA Secretariat, Canadian Section, followed by operating environment, key co-delivery organizations, risks and challenges as well as human and financial resources. Then the report summarizes the Canadian Section’s strategic outcome and performance results for the period under review, including financial performance.  The final section provides organizational information on who we are and what we do.

 1.3.1       Mandate

The NAFTA Secretariat, Canadian Section is an independent agency created in 1994 by an Act of Parliament (the North American Free Trade Agreement Implementation Act). The mandate of the NAFTA Secretariat is to administer the trade dispute resolution mechanisms (see ANNEX A for the mandate of the NAFTA Secretariat).

1.3.2      Operating Framework

The Canadian Section of the NAFTA Secretariat is funded by Parliament through a program expenditures vote.  It operates within the context of Canada’s international trade framework.  

The Canadian Section reports to Parliament, for financial accountability purposes, through the Minister of International Trade (see Section 3.7 – Responsibility Chart).

For more details on the operating context, see the NAFTA Secretariat website at http://www.nafta-sec-alena.org and the Canadian Section website at http://www.nafta-sec-alena.org/canada/index_e.aspx.

 1.3.3      Key Co-Delivery Organizations

The NAFTA Secretariat comprises the Canadian, the United States and the Mexican national sections. Pursuant to Article 1908 of the NAFTA, the involved national sections are required to “act jointly in providing administrative assistance to all panels and committees”.  In light of this, the Canadian Section’s relationship with its counterpart sections in the United States and Mexico is fundamental to its effective performance.

Additionally, the NAFTA Secretariat, Canadian Section is one of many Canadian and NAFTA country organizations involved in international trade matters.  While it operates at arm’s length from other federal and provincial government institutions, it can only succeed in fulfilling its strategic outcome by working with them. Therefore, in fulfillment of its mandate, the NAFTA Secretariat interacts directly with:

• Foreign Affairs and International Trade Canada;
• Canada Border Services Agency;
• Canadian International Trade Tribunal;
• roster members (list of international trade law experts established by the NAFTA governments to serve as panelists in disputes);
• panelists (adjudicators of these disputes chosen on a case by case basis by the involved governments);
• counsel for participants in the disputes, including counsel for investigating authorities (government agencies whose decisions are reviewed by binational panels);
• representatives of the NAFTA country governments;
• university academics; and
• the general public.

Furthermore, the Canadian Section has established memorandums of understanding with other federal government departments for the provision of human resources support services, financial systems, various back-up services and the administration of Public Servants Disclosure Protection Act. Such agreements are currently in place, among others, with Public Works and Government Services Canada, Health Canada, the Military Police Complaint Commission and the Competition Tribunal.

1.3.4      Risks and Challenges

The followings are key environmental factors that could affect the planning and priority setting of the NAFTA Secretariat, Canadian Section: 

1.3.4.1       Tripartite Nature of the NAFTA Secretariat

The NAFTA Secretariat operates in a social context where different legal, linguistic, business and cultural traditions prevail.  Managing the Canadian participation in this tripartite organization must be conducted within the policies and practices of the Canadian Government and also be harmonized with administrative practices of its two partners in the United States and Mexico.  New initiatives (for instance, Government on-Line) often require extensive consultations and negotiation before they can be implemented, as the three sections of the NAFTA Secretariat must give their concurrence.

1.3.4.2       Maintaining Organizational Capability

The success of the NAFTA Secretariat and its credibility as an independent tribunal depend largely on the expertise, professionalism and competence of its employees.  In recent years, we have introduced essential training for employees and managers to ensure they have the knowledge and skills to meet evolving mandatory job requirements, as services offered to our stakeholders increase.  However, as there are few lateral or higher career opportunities within the Secretariat, the retention of key personnel remains a challenge.   

1.3.5      Financial and Human Resources

1.4       Summary of Departmental Performance

In its 2006-2007 Report on Plans and Priorities (RPP), the NAFTA Secretariat, Canadian Section identified six priorities, which were aimed at finding and improving ways to enhance its service delivery (see Sections 2.3.1 to 2.3.6 below).  Overall, substantial progress was achieved against all priorities and with respect to project planning and resource allocation.  Table 1 provides a quick overview of the results achieved during the year under review.

1.5       What the Priorities Mean for Canadians

Canada’s economic growth and prosperity are inextricably linked to access to the NAFTA countries and other markets. As a result, Canadian foreign policy underscores the rules-based international trade dispute settlement systems as a critical part of its trade policy and trade relations.  The NAFTA Secretariat administers relevant international trade dispute processes based on clear and equitable rules.  Therefore, the program activity of the NAFTA Secretariat serves a public interest by providing a timely, unbiased and inexpensive administration of trade dispute resolution processes. Hence, Canadian exporters, importers, producers and investors in goods and service industries directly benefit from a fairer and more predictable operating environment.

SECTION 2 – ANALYSIS OF PERFORMANCE BY STRATEGIC OUTCOME

2.1       Strategic Outcome

A highly efficient, impartial and rules-based international trade dispute resolution process that benefits Canadian exporters to NAFTA countries, as well as NAFTA country exporters doing business in Canada

It is increasingly clear that Canada’s economic prosperity will continue to be significantly defined by its success in the North American market. The NAFTA’s rules-based dispute resolution system provides critical stability and transparency for Canadian business as they continue to seek new opportunities and secure market access abroad. It is also crucial that the integrity of the rules-based framework continues to provide an effective means to resolve any trade dispute that may arise in such a large trading partnership. In this regard, the Canadian Section of the NAFTA Secretariat continues to provide services of the highest quality in the administration of international trade disputes settlement. Our strategic outcome is directly aligned with one of the Government of Canada’s outcomes, which is A Strong and Mutually Beneficial North American Partnership (see Table 2 below).

2.1.1      Program Activity

In its 2006-2007 Report on Plans and Priorities, the NAFTA Secretariat, Canadian Section identified only one program activity, which is the administration of international trade dispute settlement mechanisms.  In addition, a second program activity has been defined as internal services, in line with the directives from the TBS.  This program activity is used by all departments and agencies to describe corporate services designed to deliver cost-effective support services that facilitate the achievement of departmental objectives.
The six priorities mentioned in the first section of this document are aimed at supporting and enhancing the Canadian Section’s ability to administer the dispute settlement mechanisms of the NAFTA.  This approach enables alignment with the key co-delivery organizations.

The logic model shown in Table 3 on page 10 identifies the linkages between the activities of the NAFTA Secretariat, Canadian Section and the achievement of its strategic outcome.  It shows the chain of results connecting resources and program activities to outputs and to expected results, intermediate outcomes and strategic outcome.

2.2      Performance Measure Strategy

At the completion of each panel review, the Canadian Section monitors client (panelists, assistant to panelists and counsel for participants) satisfaction with its services by requesting them to complete a Client Service Standards Monitoring Questionnaire.  The most important service qualities clients are asked to rate include:

• accuracy, relevance and quality of information provided;
• the impartiality of the information;
• provision of guidance by senior staff on the dispute settlement processes, rules of procedures and code of conduct;
• accessibility of the staff;
• independence; and
• scheduling of panel hearings/conference calls/panel meetings.

This feedback enables the Section to evaluate its services on an ongoing basis and to maintain its high service standards.  During the year under review, there were two cases filed in Canada. One of theses cases was terminated before panel selection and the other was stayed pending the final disposition of the judicial review proceeding before the Federal Court of Appeal. As a result, the client satisfaction monitoring survey could not be carried out.  

The Canadian Section also obtains feedbacks on its program and activities from its employees at regular management meetings and other key strategic planning meetings.  As well, the Canadian Section is committed to the highest standards of ethical behaviour in serving the Canadian public as reflected in its guiding principles (see ANNEX B).

2.3      Performance Accomplishments

In the 2006-2007 reporting period, the NAFTA Secretariat, Canadian Section administered a total of 13 panel proceedings, with 2 decisions issued.  Two of these proceedings were completed and the remaining were still under review as at March 31, 2007.  Status reports for these cases are available on the NAFTA Secretariat website at http://www.nafta-sec-alena.org.

The following is the list of panel reviews administered during the year under review:

• Copper pipe fittings originating in or exported from the United States of America (Dumping) - CDA-USA-2007-1904-01;
• Unprocessed grain corn, excluding seed corn (for reproductive purposes), sweet corn and popping corn, originating in or exported from the United States of America (AD/CVD) – CDA-USA-2006-1904-01;
• Pure Magnesium from Canada (Full Sunset Review of the antidumping duty order) - USA-CDA-2000-1904-09;
• Certain Softwood Lumber Products from Canada (Dumping) - USA-CDA-2002-1904-02;
• Certain Softwood Lumber Products from Canada (Countervailing Duty) - USA-CDA-2002-1904-03;
• Magnesium from Canada (Five-Year Reviews of the Countervailing Duty and Antidumping Duty Orders) - USA-CDA-2004-1904-01;
• Certain Softwood Lumber Products from Canada (Final Results of Countervailing Duty Administrative Review and Rescission of Certain Company-Specific Reviews) - USA-CDA-2005-1904-01;
• Certain Softwood Lumber Products from Canada (Determination under Section 129(a)(4) of the Uruguay Round Agreements Act) - USA-CDA-2005-1904-03;
• Certain Softwood Lumber Products from Canada (Antidumping Duty Determination under Section 129 of the Uruguay Round Agreements Act) -  USA-CDA-2005-1904-04;
• Certain Softwood Lumber Products from Canada (Final Results of Antidumping Duty Administrative Review) - USA-CDA-2006-1904-01;
• Certain Softwood Lumber Products from Canada (Final Countervailing Duty Administrative Review) - USA-CDA-2006-1904-02;
• Carbon and Certain Alloy Steel Wire Rod from Canada (Final Results of Antidumping Duty Administrative Review) - USA-CDA-2006-1904-04; and
• Certain Softwood Lumber Products from Canada (Final Scope Ruling) - USA-CDA-2006-1904-05.

Additionally, during the period under review, the Canadian Section provided services such as translations, distribution of documents, record-keeping, safeguarding and dissemination of records of completed panel reviews.  It also provided logistical planning for panel meetings and hearings, administrative and accounting services, as well as procedural guidance regarding the rules of procedures and the Code of Conduct to counsel for participants, panelists and assistants to panelists.

 2.3.1      Support to Panels and Committees

The NAFTA Secretariat, Canadian Section is committed to administer the dispute settlement processes in a timely, fair and effective manner.  The major tasks include case management, administrative, technical and logistical support to panels and committees, including the administration of a court-like registry at a level comparable to other registries of superior courts of record in Canada.
 
To this end, the Canadian Section:

• planned and coordinated activities to provide logistical support to all panels;
• ensured fair and equitable procedural and administrative services based on the legal principles and the rules and regulations applicable to the proceedings;
• administered and operated a court-like registry for the filing and processing of panel review documents; and
• continued to use its website to disseminate information on dispute settlement matters. The trilateral website (www.nafta-sec-alena.org) received over 2.65 million hits over the past three and a half years, while the Canadian Section site (www.nafta-sec-alena.org/canada/index_e.aspx) received 207,206. The high traffic can be attributed to the ease of access to a large volume of information made available on the websites. They have proven to be a cost-effective and timely way of disseminating information to the visitors. In this regard, the Email Updates notification initiative started three years ago has now stabilized to over 1,600 subscribers.  The newsletter announces the filing of new panel reviews and the issuance of panel decisions.

2.3.2      Unbiased and Equitable Administrative Process

Fundamental to the effectiveness of the NAFTA Secretariat is its independence from the three national governments.  This independence allows it to offer impartial procedural guidance and equitable administrative support to the participants and panels of experts who hear and decide on cases brought before them. To this end, the Canadian Section is committed to applying fair and equitable procedural and administrative practices that are governed by the rules and regulations as well as legal principles applicable to the proceedings.

In January 2007, the Canadian General Standards Board audited the management systems implemented by the NAFTA Secretariat, Canadian Section and verified that it conforms to the requirements specified in the ISO 9001:2000 standards. As a result, our management quality system has been certified and as explained in our 2006-2007 RPP, we joined the Mexican Section accomplishments in this regard. The ISO certification is well respected in the business community and the NAFTA Secretariat therefore adds to its credibility in the management of trade disputes.

2.3.3      Openness and Accountability

The NAFTA Secretariat, Canadian Section is committed to the promotion of a corporate culture that ensures transparent management processes and accountability to the NAFTA Free Trade Commission and the public.

To this end, the Canadian Section:

• continued its effective participation in the NAFTA Chapter 19 Operation Working Group, which comprises the representatives of the Parties, their investigating authorities and the three national sections. The activities are aimed at improving the operations of the dispute settlement processes; and
• continued to promote the full understanding of Canada’s free trade goals and achievements to all levels of government, the private and voluntary sectors, individuals and the media through the provision of effective communication, in particular by the agency’s Secretary.

2.3.4      National and International Collaboration

Collaboration with the other national sections in the joint administration of panels as well as in the joint development of policies and programs aimed at facilitating the operations of the dispute resolution processes is of paramount importance in fulfilling the mandate of the NAFTA Secretariat. 

To this end, the Canadian Section:

• continued its coordination and collaborative endeavour with the other national sections in the joint administration of dispute settlement panels; and
• continued the consultation with our counterparts in the other national section on the multi-year project of digitization of all completed panel review documents for preservation, speedy retrieval process and research purposes. To date, the completed Canadian and Mexican cases have been digitized.

2.3.5      Operational Efficiency and Effectiveness

The NAFTA Secretariat, Canadian Section is committed to employing new information technologies to further develop and enhance systems and processes that improve the overall efficiency of the dispute settlement processes and staff productivity.

In this context, the Canadian Section,

• provided financial administration support to panels and committees;
• made available to the general public, through local municipal libraries’ inter-library loan protocol, the Canadian Section’s reference centre collection (see http://www.nafta-sec-alena.org/canada/index_e.aspx?CategoryId=79). In 2006-2007, the Canadian Section invested over $18,000 in acquisitions of new books.
• upgraded information technology infrastructure, security, licence and maintenance of the network with a total cost of $120,000; and
• carried out consultation work with other national sections for the redesign of the NAFTA website and the Registry Information System during the next fiscal year. This is necessary because the Registry Information System was developed in 2001/2002 and it needs to be redesigned to meet our evolving needs. As well, the websites need to conform to the new Common Look and Feel Standards for the Internet (CLF 2.0).

2.3.6      Highest Quality of Service

The NAFTA Secretariat, Canadian Section is committed to maintaining the highest quality of service in the administration of dispute settlement mechanisms.  As well, it continued to promote employee professional development in order to maintain high level of expertise.  Additionally, it further improved professional services and corporate management frameworks, policies and processes.

In that regard, the Canadian Section continued to put sustained emphasis on the strategic management of human resources to ensure that it recruited competent and devoted employees who remained with the organization, by offering a workplace atmosphere that promotes learning and professional development for all. The goal is to ensure that employees and managers have the knowledge and skills to meet evolving mandatory job requirements in order to offer an exceptional support and service continuity to our clients - trade law experts and judges chosen by national governments that adjudicate trade disputes brought before them.

To achieve this goal, during the year under review, the Canadian Section developed a new Policy on Talent Management, which reflects the new changes brought forward with the implementation of the Public Service Modernization Act and the new powers delegated to Head of Agencies. As a result of this policy, the Canadian Section has established adequate qualification criteria for the recruitment, learning, development and retention of its personnel. Employees are provided with the appropriate initial, continuing and specialized training as may be deemed necessary to acquire and maintain the level of expertise required to do their job and achieve their career goals. The cost associated with training was $48,700 and the implementation of the policy was $20,000. Additional services without charges were also received from the Small Agencies Transition Support Team.

Also, the Canadian Section now makes available to all its new employees a welcome kit that provides key information on getting acquainted with work practices in the Federal Public Service. Lessons learned over past years indicate that an individual’s integration in a small organization shall not be taken for granted.

2.4      Financial Information

Tables 4 to 6 shown below provide comparison of planned and actual spending, voted resources and net cost of the NAFTA Secretariat, Canadian Section.

Complete financial statements are enclosed in ANNEX C. The have been prepared in accordance with accrual accounting principles. The unaudited supplementary information presented in the financial tables in the DPR is prepared on a modified cash basis of accounting principles in order to be consistent with appropriations-based reporting. Note 3 on page 30 of the financial statements reconcile these two accounting methods.

Table 5:  Voted and Statutory Items

This table explains the way Parliament voted resources to the NAFTA Secretariat, Canadian Section, and basically replicates the summary table listed in the Main Estimates.

Table 6:  Net Cost of Program

This table shows the net cost of the NAFTA Secretariat, Canadian Section. It begins with the actual spending and adds services received without charge to arrive at the net cost of the department to Canadians.

SECTION 3 – SUPPLEMENTARY INFORMATION

3.1     Overview

• Mandate:

                    Provide administrative assistance to panels and committees; and
                    Provide assistance to the NAFTA Free Trade Commission (See ANNEX A for details).

• Size:

                    2006-2007 Actual Spending = $1,511,317
                    Number of FTEs = 9

• Role:

                    Administration of international trade dispute settlement mechanisms by providing registry services and procedural guidance with respect to the Rules of Procedures, Code of Conduct and conflict of interest guidelines that apply to panels of experts who hear and decide on cases brought before them (visit http://www.nafta-sec-alena.org/DefaultSite/index_e.aspx?DetailID=8 for an overview of NAFTA dispute settlement provisions); and

                    Joint administration of dispute settlement panels with the other involved national section(s) following an appeal of a decision made by an investigating authority such as, in Canada, the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal (CITT) and government to government disputes involving two or three Parties.

• Reporting Relationship:

                    Reports to Parliament through the Minister of International Trade (see Section 3.7 for Accountability Structure).

3.2      Who We Are

The NAFTA Secretariat is a unique organization established by the Free Trade Commission, pursuant to Article 2002 of the NAFTA.  It comprises the Canadian, the United States and the Mexican national sections. 

3.3      Where We Are Located

The national sections, which are "mirror‑images" of each other, are located in Ottawa, Washington and Mexico City, and each is headed by a Secretary appointed by her/his respective government.

3.4      How We Are Organized

Each national section maintains a court-like registry relating to panel and committee proceedings.  The involved national sections provide joint administration of panel and committee proceedings and share equally all expenses related to such proceedings.  As a result, the national sections have harmonized their registry operations and records management practices. Further, the three national sections have jointly developed and administer the Integrated Registry Information System and the NAFTA Trilateral website, which are hosted by the Canadian Section.  In light of this, the Canadian Section’s relationship with its counterpart sections in the United States and Mexico is fundamental to its effective performance.

3.5      Roles

In the administration of the dispute settlement provisions of the relevant free trade agreements (see ANNEX A for details), the NAFTA Secretariat, Canadian Section provides professional and advisory support to panels and committees and coordinates all panel and financial aspects of the process.

In addition to the assistance provided in support of the dispute resolution process, the Canadian Section is also involved in facilitating the operation of these agreements through the provision of information and professional services.  This is achieved through initiatives such as the establishment of an Internet website, the maintenance of a library and reference centre, research and analysis of trade related issues and, through collaboration with other national sections, establishment of management, policy, and procedural frameworks.

3.6      Travel Policies

Special Travel Authorities:
The NAFTA Secretariat, Canadian Section follows the TBS Special Travel Authorities.

Travel Directive, Rates and Allowances:
The NAFTA Secretariat, Canadian Section follows the TBS Travel Directive, Rates and Allowances.

3.7       Responsibility Chart

The NAFTA Secretariat, Canadian Section has one program and one business line.  For financial purposes accountability, the reporting structure is to Parliament through the Minister of International Trade (see figure 1).

* Full-Time Equivalent (FTE):  A full-time equivalent is the unit of measurement for personnel resources and refers to the employment of one person for one full year or the equivalent thereof.  FTEs are not subject to Treasury Board control, but are disclosed in Part III of the Estimates in support of personnel expenditure requirements.

ANNEX A

The Mandate of the NAFTA Secretariat

The mandate of the Secretariat is set out in Article 2002.3 of the NAFTA and reads:
The Secretariat shall:

a)      provide assistance to the Commission;

b)      provide administrative assistance to:

• panels and committees established under Chapter Nineteen  (Review and Dispute Settlement in Antidumping and Countervailing Duty Matters), in accordance with the procedures established pursuant to Article 1908; and
• panels established under this Chapter, in accordance with procedures established pursuant to Article 2012; and

c)      as the Commission may direct:

• support the work of other committees and groups established under this Agreement; and
• otherwise facilitate the operation of this Agreement.

In 1997 and then again in 2002, the Canadian Section's mandate was expanded to include the administration of the dispute settlement processes under the following trade agreements:

• the Canada-Israel Free Trade Agreement (CIFTA);
• the Canada-Chile Free Trade Agreement (CCFTA); and
• the Canada-Costa Rica Free Trade Agreement (CCRFTA).

ANNEX B

Guiding Principles

Commitment to an Unbiased and Equitable Administrative Process	The NAFTA Secretariat, Canadian Section is committed to administering the dispute settlement provisions of the relevant Free Trade Agreements and other Bilateral Agreements as directed by the Parties in a manner which ensures unbiased administrative processes, equity, security and fairness.
Commitment to Service Quality	The NAFTA Secretariat, Canadian Section is committed to maintaining the highest quality of administration to all dispute settlement proceedings and to investing in technologies that will sustain future operations.
Support to Stakeholders	The NAFTA Secretariat, Canadian Section is committed to supporting and providing services to its stakeholders in dispute resolution in a manner that is impartial, responsive, accessible and timely.
Openness and Accountability	The NAFTA Secretariat, Canadian Section is committed to the promotion of a corporate culture implementing transparent management processes and accountability, both to the NAFTA Free Trade Commission and to the public.
Operational Efficiency	The NAFTA Secretariat, Canadian Section is committed to pursuing alternative service delivery to enhance information access and sharing and to improve operating practices.
Continuous Learning	The NAFTA Secretariat, Canadian Section is committed in having in place professional and motivated employees and in offering them the opportunity to advance their careers through continuous learning.

ANNEX C

Financial Statements (Unaudited)

Table of Contents

Statement of Management Responsibility

Statement of Operations (Unaudited)

Statement of Financial Position (Unaudited)

Statement of Equity of Canada (Unaudited)

Statement of Cash Flow (Unaudited)

Notes (Unaudited)

 

 

 

 

 

HOW TO CONTACT US

Contacts and other relevant information:

                  Secretary
                  NAFTA Secretariat, Canadian Section
                  90 Sparks Street, Suite 705
                  Ottawa, Ontario
                  K1P 5B4
                  Tel:  (613) 992-9388
                  Fax:  (613) 992-9392
                  Website:  www.nafta-sec-alena.org

The NAFTA Secretariat, Canadian Section (as of July 30, 2007):