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Section I: Departmental Overview

1.1 Ministers' Message

The Honourable David Emerson Minister for International Trade

The Honourable Maxime Bernier Minister of Foreign Affairs

It is our pleasure and privilege to present the 2006-2007 Departmental Performance Report of the Department of Foreign Affairs and International Trade. 

It has been a year of many notable achievements for this department in its ongoing work to establish a stronger and more productive presence for Canada and Canadians internationally. Whether on the international political stage or in world markets, it is imperative for Canada to think and act in the most strategic manner possible, to focus on what we can do constructively to build security, peace and prosperity, and to set an example for the rest of the world.

High-level results generated by the department in 2006-2007 include the following:

Foreign Affairs

• As the whole-of-government lead on Canada’s Afghan mission, the department contributed to stabilization and reconstruction efforts through the Canadian Embassy in Kabul and the Provincial Reconstruction Team in Kandahar. The department’s Afghanistan Task Force coordinated and supported Canada’s engagement in that country, working closely with the Canadian International Development Agency, National Defence, Public Safety Canada and the Privy Council Office. The task force ensured that all aspects of Canada’s engagement were clear, consistent and oriented toward well-defined strategic goals.
• The department led the evacuation of Canadians from Lebanon in the summer of 2006, by far the largest and most successful evacuation ever mounted by the Government of Canada. A Public Service award of excellence was given to employees at the Canadian embassies in Lebanon, Cyprus and Turkey, in recognition of their exemplary contribution under extraordinary circumstances.
• By providing political support and financial assistance, Canada strengthened the capacity of the Organization of American States (OAS) to promote democracy in the Americas through efforts such as participation in nine electoral observation missions (Peru, Colombia, Haiti, Bolivia, Guyana, Nicaragua, Venezuela, St. Lucia and Ecuador) in the region.
• The department led the government’s efforts to increase Canada’s focus on and presence in the Americas, developing an Americas Strategy to strengthen Canada’s engagement in Latin America and the Caribbean.
• Canada and the United States indefinitely extended the North American Aerospace Defense Command (NORAD) agreement, and added maritime domain awareness to its mission.
• At the June 2007 G8 Summit, the department accomplished a consensus on how to address climate change as well as an initiative to generate a structured dialogue between the G8 and the key emerging economies of Brazil, China, Mexico, South Africa and India on global economic challenges.
• The department worked with like-minded partners to ensure establishment of the United Nations Peacebuilding Commission and Human Rights Council.
• The federal government reached agreement with Quebec to establish a formal role for the province in UNESCO (the United Nations Educational, Scientific and Cultural Organization).
• The Stabilization and Reconstruction Task Force (START) supported security sector reform and societal reconstruction in key fragile states, including Afghanistan, the Democratic Republic of Congo, Colombia and Haiti. It also worked with federal partners to coordinate government-wide responses to critical peace and security challenges and international crises.
• Through the Counter-Terrorism Capacity Building Program, the department increased the capacity of developing states to prevent and respond to terrorist activity.
• As part of the Global Partnership, the department worked with like-minded countries to reduce opportunities for the proliferation of weapons of mass destruction.

International Trade

• The department finalized the Softwood Lumber Agreement between Canada and the United States, establishing a secure and predictable commercial environment for the Canadian lumber industry. United States countervailing duty and anti-dumping duty orders, in place since May 2002, have been completely revoked. Approximately US$4.5 billion in duties collected during that time have been returned to Canadian softwood lumber exporters.
• The $591 million Asia-Pacific Gateway and Corridor Initiative was launched in October 2006 to facilitate the operations of global supply chains between North America and Asia.
• The department led development of the Global Commerce Strategy as a coherent approach that will ensure Canadian business can take advantage of new markets and extend its global reach. The strategy will contribute to the success of the government’s overall economic plan for Canada, Advantage Canada, complementing and building on investments in commercial infrastructure. It provides a broad framework that supports specific international strategies of the department’s business clients.
• As part of the Global Commerce Strategy, six multi-year, whole-of-government market plans were developed for the priority markets of the United States, Mexico, China, Europe, India and Brazil. The plans integrate all aspects of international commerce, including market access, two-way trade and investment, and science and technology (S&T). They will encourage more Canadian companies to pursue international opportunities, and will build knowledge of Canada’s commercial capabilities by positioning Canada as a centre of excellence for talent, innovation, investment, and value-added production and trade.
• Canada signed a Foreign Investment Protection and Promotion Agreement (FIPA) with Peru and a letter of intent with Brazil on negotiation of a bilateral S&T agreement, and negotiated and arranged the signing of an S&T cooperation agreement with China.
• The department undertook a web-based pilot survey of its business clients, identified through the Virtual Trade Commissioner (VTC) website, and found clients very receptive to this method of follow-up, which gauges their success in a given market and the department’s performance as an organization. Plans are to build the survey instrument into the VTC in 2007-2008.

Department-Wide

• The department continued its practice of reallocating resources from lower to higher priorities, both in Canada and abroad. This was linked to the whole-of-government strategies for countries and multilateral organizations produced by Canada’s missions abroad. The purpose of these strategies is to focus the missions more directly on the Government of Canada’s international priorities and provide the basis for reallocation of resources to priority countries and regions.
• The department has recently completed a human resources plan, which in part addresses issues raised by the Auditor General of Canada in her May 2007 review of human resources throughout the organization. The plan emphasizes recruitment and the learning needs of staff to ensure current and future requirements are met.
• The department also developed a human resources performance framework to be used to identify priorities, monitor progress and determine commitments in the performance management agreements of Assistant Deputy Ministers.
• The department developed a new MRRS-PAA to replace the interim one and to fully reflect reintegration of its foreign affairs and international trade components. It was approved by Treasury Board in June 2007. The new MRRS-PAA will improve the department’s management of, and accountability for, financial and non-financial resources.

Recognition of Excellence

• In addition to the award noted above in relation to the evacuation of Canadians from Lebanon, the department’s accomplishments were recognized by Treasury Board of Canada Secretariat (TBS) as well as by organizations outside government in 2006-2007. It received TBS awards of excellence for its consular website, its Canada in the World website, the electronic client management system of the Trade Commissioner Service, and its teamwork that led to the success of the National Routing System, a secure network that links federal and provincial agencies, including Passport Canada, and enables real-time exchange of vital information. In addition, the department was honoured by the Real Property Institute of Canada for the new Canadian Embassy in Ankara, and by the Materiel Management Institute in recognition of the ISO 9001:2000 certification of its contract management process.
• Crucial to these and other success stories of the department over the last year has been the staunch commitment and highly developed skill sets of its staff. They are people who know how to get things done, and we take this opportunity to recognize the benefits their work provides—not only to Canadians but also to the global community as a whole. We invite all Canadians to learn more about the department and its achievements over the past year by reading this report as well as by consulting our comprehensive and user-friendly website (http://www.international.gc.ca/index.aspx).

1.2 Management Representation Statement

Marie-Lucie Morin Deputy Minister for International Trade

Leonard J. Edwards Deputy Minister of Foreign Affairs

We submit for tabling in Parliament the 2006-2007 Departmental Performance Report for the Department of Foreign Affairs and International Trade.

This document has been prepared based on the reporting principles contained in 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 outcomes and Program Activity Architecture that were 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.
• It reports finances based on approved numbers from the Estimates and Public Accounts of Canada.

_______________________ Marie-Lucie Morin Deputy Minister for International Trade

______________________ Leonard J. Edwards Deputy Minister of Foreign Affairs

1.3 Important Introductory Notes for Readers

1.3.1 On Our Program Activity Architecture

In accordance with TBS instructions, this report is based on the interim Program Activity Architecture used in the department’s 2006-2007 Report on Plans and Priorities (RPP). In February 2006, the department’s foreign affairs and international trade components were reintegrated. Since this took place near the end of fiscal year 2005-2006, there was insufficient time to prepare and obtain approval for a new PAA in its 2006-2007 RPP. Accordingly, Treasury Board approved an “interim” PAA, which was actually two separate PAAs combined (those of the previously separate departments of Foreign Affairs Canada and International Trade Canada), until such time as a new PAA could be developed and approved.

The department now has a new, approved PAA that fully reflects the remerged organization. It will be used as the basis for the 2008-2009 RPP.

1.3.2 On the Overall Assessment of Our Performance

What the department seeks to accomplish over the long term is expressed in its strategic outcomes and program activities. Principal expected results are identified for each strategic outcome and program activity. Together, the department’s outcomes, priorities and expected results provide the basis for establishing accountability for results and measuring performance.

The department ensures that its priorities align with and support those of the government as a whole, as identified in key documents such as the Speech from the Throne, the federal budget and the annual Canada’s Performance report of TBS.

To ensure a balanced and complete view of the department’s overall performance, three issues need to be stressed at the outset. First, the department operates in a global environment in which many developments beyond its direct control can have a significant impact on its ability to achieve its expected results. Second, the department manages Canada’s network of missions abroad, thereby providing the international platform for the entire Government of Canada. This means that coordination and close cooperation with federal partners is an important aspect of the department’s performance. Third, because its mandate is so broad and diverse, the department takes particular care in establishing a wide range of appropriate performance indicators, both quantitative and qualitative.

1.4 What We Do: Our Strategic Outcomes and Activities

1.4.1 Raison d’être and Corresponding Benefits to Canadians

With respect to foreign affairs, the department leads and coordinates a government-wide approach to pursuing Canada’s global agenda, while promoting Canadian values and culture internationally. It analyzes national and international trends and developments for Canadians, providing timely and practical information on global issues and travel. It manages Canada’s missions worldwide, delivering the international platform of the entire Government of Canada. And it provides passport and consular services to Canadians, enabling their participation in the international community.

With respect to international trade, the department provides wide-ranging services to Canadian businesses, such as opening and expanding markets through negotiated agreements and facilitating export and investment transactions. This benefits Canadian companies and the entire economy. Expansion of global commerce, including two-way trade and investment, generates employment and business opportunities for Canadians at home and abroad. A strengthened Canadian economy, built on open flows of trade, investment and technology, enables the federal and provincial governments to provide Canadians with social and other programs they desire. Furthermore, trade liberalization is a significant contributor to the Government of Canada’s innovation agenda. Opening new markets for Canadian firms stimulates investment, which can raise productivity by generating new ideas and technologies, while foreign investment in this country helps to transfer technology and know-how to Canadians.

1.4.2 Our Strategic Outcomes

The department’s four strategic outcomes for 2006-2007, as identified in that year’s Report on Plans and Priorities, are set out in bold below. Each strategic outcome is accompanied by a description that allows program activities to be developed to help the department make progress toward the outcome.

Advancing Canada’s interests internationally: The department projects Canada and its values to the world and pursues Canada’s interests abroad in partnership with other federal departments, other levels of government across the country and Canadians. It pursues the country’s global agenda from a government-wide perspective, analyzes national and international trends and developments, and interprets the world for Canadians.

This outcome recognizes the department as the government’s centre of expertise in leading the formulation and coordination of Canada’s international policies and the promotion of the international dimension of Canada’s domestic interests, as well as advancing those interests on a bilateral and multilateral basis. Principal support for this outcome comes from political/economic officers of the Foreign Service.

Five program activities contribute to this strategic outcome: Strategic Policy and Public Diplomacy (now called Strategic Policy and Planning), International Security, Global Issues, Bilateral Relations and Protocol.

Serving government abroad: The department manages Canada’s missions abroad, delivering cost-effective and efficient services and infrastructure to enable the international operations of federal and provincial departments and agencies co-located there.

Management/consular officers of the Foreign Service support the work of this strategic outcome by coordinating the services provided to partners co-located at missions abroad, including contracting, procurement and human resources management.

Three program activities contribute to this outcome: Bilateral Relations, Common Services and Infrastructure (support from headquarters and missions abroad) and Human Resources.

Serving Canadians abroad: The department provides assistance, guidance, services and advice related to travel documents and consular needs. This ensures that Canadians receive the assistance they need when they are travelling, working or living abroad.

Management/consular officers of the Foreign Service support the work of this strategic outcome by providing consular and passport services abroad.

Two program activities contribute to this outcome: Consular Affairs and Passport Canada.

Advancing Canada’s international commercial interests in Canada and abroad: The department collaborates extensively with partners inside and outside government to foster coherence of Canada’s commercial policies and programs for the purpose of enhancing the prosperity of Canadians.

Trade commissioners and policy specialists carry out this work.

Four program activities contribute to this strategic outcome: Trade Policy and Negotiations, World Markets/Commercial Relations (now called Global Operations), International Business Development (now called Investment, Innovation and Sectors) and Promotion of Foreign Direct Investment and S&T Cooperation.

The department pursues its strategic outcomes through a number of programs. Specific program achievements are described in Section II of this report.

1.4.3 Our 2006-2007 Priorities

The chart below represents the department’s Program Activity Architecture, listing the department’s four strategic outcomes: three pertaining to foreign affairs and one to trade.¹ Section II is organized by strategic outcome and program activity, in accordance with the PAA.

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¹Full descriptions of the strategic outcomes and their associated program activities are in Section II. Elsewhere in the document, the strategic outcomes are identified only by their main themes (e.g. Advancing Canada’s Interests Internationally).

Establishing priorities guides the department in choosing where to focus its work in seeking to make tangible, measurable progress toward its strategic outcomes. In other words, they list results, which if achieved, would constitute progress the department hopes to make toward its strategic outcomes.

The department’s 10 priorities listed in the 2006-2007 RPP were:

• greater collaboration with the United States and increased cooperation with all hemispheric partners;
• a more secure world for Canada and Canadians, safer from the threats of failed and fragile states, terrorism, transnational crime and weapons of mass destruction;
• a revitalized multilateralism, responding to the new challenges of globalization and putting outcomes ahead of processes;
• greater engagement with like-minded partners in the G8 as well as emerging economies such as Brazil, Russia, India and China;
• strengthened consular and passport services, able to respond rapidly and flexibly;
• increased Canadian awareness of the challenges and opportunities presented by global commerce;
• more secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements;
• assistance to Canadian business in competing successfully for global opportunities;
• promotion of Canada as a globally competitive location and partner for investment, innovation and value-added production; and
• a department that is recognized as modern and agile.

1.4.4 Our 2006-2007 Program Activities and Key Expected Results

The following list indicates each program activity (in bold), followed by its key expected results (see Section 1.4.2 with respect to the restructuring of World Markets/Commercial Relations and International Business Development that has taken place since the 2006-2007 RPP).

International Security: Canadian international security interests and human security program interests are advocated bilaterally and multilaterally, and the department’s responsibilities with respect to security and intelligence are well managed.

Global Issues: A stronger and more effective multilateral system, capable of addressing Canada’s interests in global issues. In particular, international economic relations and development, environment and sustainable development, human rights and human security are advocated.

Bilateral Relations: Canada’s bilateral relations are conducted and promoted in Canada and abroad in order to promote and protect Canadian interests.

Strategic Policy and Public Diplomacy: International policy and interdepartmental whole-of-government strategies, including public diplomacy, are developed in coordination with partner departments.

Protocol: The presence of foreign diplomats in Canada is managed and facilitated; official travel by the Governor General, the Prime Minister and Ministers of the Portfolio, and all diplomatic official events, are planned and led.

Common Services and Infrastructure (support from headquarters): Headquarters-provided common services to government programs and partners operating abroad are managed and delivered.

Common Services and Infrastructure (support from missions abroad): Mission-provided common services to government programs and partners operating abroad are managed and delivered.

Consular Affairs: Consular services to Canadians are managed and delivered.

Passport Services: Passport services to Canadians (through the use of the Passport Revolving Fund) are managed and delivered by Passport Canada, a special operating agency.

Trade Policy and Negotiations: Canada’s international economic and commercial interests in Canada and abroad are analyzed, negotiated, advocated and represented in consultation with stakeholders.

World Markets/Commercial Relations: Canada’s international economic and commercial interests at the regional and bilateral levels are integrated, and bilateral commercial relations are managed.

International Business Development: International business services to Canadians are managed and delivered.

Promotion of Foreign Direct Investment and S&T Cooperation: Foreign direct investment in Canada is attracted and retained. Canadian investment abroad is expanded and international science and technology collaboration is fostered.

1.4.5 How Our Outcomes and Program Activities Link to Government of Canada Outcome Areas

The department’s performance links to the results expected by the Government of Canada as a whole.

The department ensured that its priorities for 2006-2007 were in keeping with those expressed in the April 2006 Speech from the Throne by Canada’s New Government (http://www.pm.gc.ca/eng/media.asp?id=1087) and the May 2006 federal budget.

The department also utilized Canada’s Performance 2006 (http://www.tbs-sct.gc.ca/report/govrev/06/cp-rc_e.asp), the TBS report on government-wide performance. In the section on international affairs, the report tracked the government’s contribution to four outcome areas: a safe and secure world through international cooperation, global poverty reduction through sustainable development, a strong and mutually beneficial North American partnership, and a prosperous Canada through global commerce.

The following table shows how the department’s strategic outcomes and program activities are aligned with the Government of Canada’s outcome areas, as found in Canada’s Performance 2006.

Alignment of Our Strategic Outcomes and Program Activities with Canada’s Performance Outcome Areas

Departmental Strategic Outcomes	Canada’s Performance Outcome Area
Advancing Canada’s Interests Internationally and Serving Canadians Abroad (and the program activities supporting these two outcomes)	A safe and secure world through international cooperation
Advancing Canada’s International Commercial Interests (and supporting program activities)	A prosperous Canada through global commerce

Note that the department’s strategic outcome of Serving Government Abroad is not aligned with an outcome area in Canada’s Performance because it supports the achievement of internal outcomes.

1.5 Our Operating Context

The department’s operating context is an international environment that is filled with challenges, risks and opportunities. A sample of these is set out below.

1.5.1 Our External Challenges

The main external challenges are:

• the considerable influence of the United States in world affairs, as well as the importance of Canada’s economic relationship with that country, which could be affected by issues like the U.S. Western Hemisphere Travel Initiative (WHTI) and its phased-in passport requirements for all Canadians entering that country;
• profound restructuring in the global economy, including rapid emergence of major economic powers in Asia, the development of global supply chains and continued integration of global capital markets;
• issues of concern to Canadian business and labour groups such as increasing competition in key markets worldwide, Canada's declining market share in the United States and the impact of the rising Canadian dollar on exports and imports;
• ongoing threats related to terrorism, proliferation of weapons of mass destruction, crime affecting Canadians travelling abroad, transnational spread of infectious diseases and intra-state conflicts, particularly those in global hot spots;
• the increasing attention being paid by the international community to climate change and the resulting push for practical efforts globally to mitigate its effects;
• international debate over the effectiveness and representation of multilateral organizations;
• the rise of major new international players, notably India and China;
• the stalled World Trade Organization negotiations (the Doha Round), a consequent resurgence of protectionism, and the increase in the number of bilateral trade agreements between Canada’s competitors and key markets;
• the rising involvement in global affairs by non-state actors, including business and religious communities, as well as the impact of new technologies (e.g. the Internet) in framing national and international issues;
• the continuing fierce global competition for foreign direct investment (FDI); and
• global concern about energy security post-9/11.

1.5.2 The Risks We Face

Risk management is integral to business and human resources planning. The department continues to make progress in improving its assessment, management and communication of risks.

The department faces security risks at home and abroad as well as threats related to international pandemics, the environment, international crime and terrorism. Advancement of Canada’s interests on the world stage could be negatively affected by increasing unilateralism worldwide as well as by the ineffectiveness of multilateral institutions and tools in addressing global problems.

Risks that could affect Canada’s economy and prosperity include a mediocre trade and competitive performance, realignment of the global economy with its emphasis on integrated supply chains and innovation, any terrorist act that impedes Canada-United States trade and any escalation of trade disputes as a result of a failure to complete the Doha Round of trade negotiations. At the same time, the federal government faces increased pressure to protect certain industries from the impact of international trade and from foreign takeovers, and to assist other industries in the event of an economic slowdown, while remaining committed to greater liberalization of trade and investment rules.

1.5.3 The Opportunities Available to Us

First, Canada’s unique range of membership in a wide number of multilateral organizations provides the opportunity to advance Canadian interests and values across a broad spectrum of issues and with many members of the international community. Second, Canada’s advantages, including its knowledge-based, technologically advanced economy and workforce, make it well positioned to pursue international commercial opportunities. Third, Canada’s emergence as an energy superpower that is democratic, stable and reliable will contribute to the country’s economic prosperity and provide leverage in advocating Canadian positions on international issues and advancing Canada’s interests on the world stage.

1.5.4 Our Internal Challenges

The department also faces internal challenges. These include:

• the necessity for ongoing security enhancements at headquarters and missions abroad;
• the fact that some 33 percent of the department’s non-statutory financial resources are made up of grants and contributions, approximately 68 percent of which is accounted for by assessed contributions to cover Canada’s membership in international organizations—a critical factor not only to this department but also to the operations of many of its federal partners;
• the need to address issues related to the department’s aging workforce, the shortage of qualified employees in key occupational groups, and stiff competition inside and outside government for employees with the complex skill sets required by the department; and
• the need to continue strengthening policymaking and project management capacity, especially on issues involving federal, provincial and territorial partners.

1.5.5 Our Key Partners

The department works closely with a wide range of domestic and foreign partners, including:

• other federal departments and agencies;
• provincial, territorial and municipal governments;
• the private and voluntary sectors in Canada;
• Canadian and international non-governmental organizations and citizens’ groups;
• the Canadian academic community;
• foreign cultural and academic communities with an interest in Canada;
• representatives of foreign governments, companies and international institutions; and
• organizations involved in science, technology and innovation.

A number of federal departments and agencies and provincial governments have international interests and priorities that they pursue abroad. Many Canadian missions have personnel from federal and provincial partners who use the Government of Canada’s platform abroad (i.e. Canada’s mission network) to deliver their programs. The department coordinates and consults closely with its partners in order to provide them with a high level of service.

In addition, many parliamentarians and Canadians—particularly those with an interest in foreign policy, global business, international travel or study abroad—are among those served by Canadian missions abroad.

1.5.6 Our Major Horizontal Initiatives

In 2006-2007, this department collaborated with federal partners on key horizontal files. The two examples below show the extent to which the department collaborates and consults closely with other government departments and agencies in order to deliver the Government of Canada’s international agenda.

• The Global Peace and Security Fund and its component programs support urgent contributions to crisis response operations; help build global peace support capacity; plan and deliver conflict prevention, civilian protection and stabilization initiatives in fragile states; and provide resources to Canada’s human security commitments. The fund is managed by the Stabilization and Reconstruction Task Force (START) Secretariat. Federal partnerships established through formal funding agreements and memorandums of understanding include those with the Royal Canadian Mounted Police, Department of National Defence, Canadian International Development Agency, Department of Justice Canada and Correctional Service Canada.
• The Enhanced Representation Initiative (ERI) provides a coordinated and integrated approach and direction to managing and advancing Canada’s advocacy, trade, business development, S&T and investment interests in the United States. Federal partners include Agriculture and Agri-Food Canada, Industry Canada, the National Research Council Canada, Western Economic Diversification Canada, the Atlantic Canada Opportunities Agency and Canada Economic Development for Quebec Regions.

1.6 How We Monitor Our Performance

The department uses various performance measurement tools.

First, it takes note of the yearly Management Accountability Framework (MAF) assessment done by TBS. This process, which pinpoints management strengths and weaknesses, provides invaluable feedback for the department to use in strengthening its performance and providing greater results for Canadians. The department’s 2005 MAF assessments, done separately for its remerged components of Foreign Affairs and International Trade, are available at http://www.tbs-sct.gc.ca/maf-crg/assessments-evaluations/2005/FA-AE/FA-AE_e.asp (Foreign Affairs Canada) and http://www.tbs-sct.gc.ca/maf-crg/assessments-evaluations/2005/IT-CI/IT-CI_e.asp (International Trade Canada).

Second, the department uses a Strategic Planning Framework based on the business plans of branches, bureaus and missions. The framework specifies broad priorities and one- to three-year outcomes with associated performance indicators. It is reviewed periodically to incorporate progress achieved and amended, if necessary, to reflect changing circumstances and priorities. In addition, the department uses a business planning framework with detailed performance indicators for the commercial programs undertaken at missions abroad and regional offices in Canada.

Other key tools used to monitor and assess performance are the department’s RMAFs (Results-based Management and Accountability Frameworks) and RBAFs (Risk-based Audit Frameworks), as well as recent audits of operations at headquarters and missions abroad.

1.7 Performance Summary Table

The following summary table and accompanying text (Section 1.8) shows the department’s assessment of its performance, using trustworthy and verifiable performance indicators. The assessment is based on the expected results that the department identified in the 2006-2007 Report on Plans and Priorities.

The table and accompanying text is designed to point out high-level results achieved during the past year. It is not designed as a catalogue of all the activities undertaken by the department.

Section II of this report provides more detail and information on overall performance, including specific performance indicators used by the department.

Financial Resources²

2006-2007 ($ millions)
Planned Spending	Total Authorities	Actual Spending
2,401.1	3,015.3	2,190.0

Human Resources (FTEs)³

2006-2007
Planned	Actual	Difference
11,513	11,519	6

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²For figures on planned and actual spending in 2006-2007, consult the detailed financial tables in Section III.

³FTEs refer to full-time equivalents—the human resources required to sustain an average level of employment over 12 months, based on a 37.5-hour work week. The overall number of FTEs utilized by the department did not change significantly over the course of the fiscal year. The department’s workforce is made up of three separate groups. First, there are Canada-based rotational staff, mainly composed of Foreign Service officers, administrative support employees and information technology specialists, who relocate regularly between headquarters and Canada’s missions abroad. Second, non-rotational staff work primarily at headquarters. Third, locally engaged staff work at missions abroad. Details on the FTEs allocated to each program activity are available in Section II.

At the outset of the 2006-2007 fiscal year, the department’s planned spending was $2,401.1 million.  Through Main Estimates and Supplementary Estimates, the department was allocated total authorities of $3,015.3 million, including a statutory amount of $502.9 million for payments arising from the new Softwood Lumber Agreement and less any net-voted revenues. Actual spending was $2,190 million, net of $695 million of non-respendable revenues (primarily $623.4 million related to Export Development Canada) and including $81.4 million of services received without charge.

Performance Status

Priority	Program Activity (expected results are provided in the summary that follows this table)	Performance Status
Priority No. 1: Greater collaboration with the United States and increased cooperation with all hemispheric partners (ongoing)	Strategic Policy and Public Diplomacy	Successfully met
	International Security	Successfully met
	Bilateral Relations	Successfully met
Priority No. 2: A more secure world for Canada and Canadians (ongoing)	International Security	Successfully met
	Global Issues	Successfully met
	Bilateral Relations	Successfully met
	Passport Canada	Successfully met
Priority No. 3: A revitalized multilateralism, responding to the new challenges of globalization and putting outcomes ahead of processes (ongoing)	Strategic Policy	Successfully met
	International Security	Successfully met
	Global Issues	Successfully met
Priority No. 4: Greater engagement with like-minded partners in the G8 as well as emerging economies such as Brazil, Russia, India and China(new)	Strategic Policy and Public Diplomacy	Successfully met
	International Security	Successfully met
	Global Issues	Successfully met
	Bilateral Relations	Successfully met
	Protocol	Successfully met
Priority No. 5: Strengthened consular and passport services, able to respond rapidly and flexibly (ongoing)	Consular Affairs	Successfully met
	Passport Canada	Not met, due to extraordinary demand and resource limitations
Priority No. 6: Increased Canadian awareness of the challenges and opportunities presented by global commerce (ongoing)	World Markets/ Commercial Relations	Successfully met
	International Business Development	Successfully met
	Promotion of Foreign Direct Investment and S&T Cooperation	Successfully met
Priority No. 7: More secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements (ongoing)	Trade Policy and Negotiations	Successfully met
Priority No. 8: Assistance to Canadian business in competing successfully for global opportunities (ongoing)	World Markets/ Commercial Relations	Successfully met
	International Business Development	Successfully met
	Promotion of Foreign Direct Investment and S&T Cooperation	Successfully met
Priority No. 9: Promotion of Canada as a globally competitive location and partner for investment, innovation and value-added production (ongoing)	Promotion of Foreign Direct Investment and S&T Cooperation	Successfully met
Priority No. 10: A department that is recognized as modern and agile (ongoing)	Strategic Policy and Public Diplomacy International Security Global Issues Bilateral Relations Protocol Consular Affairs Passport Canada Common Services and Infrastructure (support from HQ and missions abroad)   Trade Policy and Negotiations World Markets/Commercial Relations International Business Development Promotion of Foreign Direct Investment and S&T Cooperation	Successfully met

1.8 Summary of the Department’s Overall Performance in 2006-2007

The following describes some of the key results achieved by the department over the fiscal year, based on verifiable evidence.

The summary is organized in accordance with the department’s strategic outcomes and priorities identified in the 2006-2007 RPP.

Strategic Outcome: Advancing Canada’s Interests Internationally

The first strategic outcome is achieved by program activities that position this department as the lead organization in the Government of Canada on international policy advice, diplomacy and advocacy, both in Canada and abroad. These activities are central to the work of a modern foreign ministry. Note that some priorities below have been abbreviated to save space and avoid repetition (see Section 1.4.3 for the full list).

Strategic Priority 1: Greater collaboration with the United States and increased cooperation with all hemispheric partners

(a) Expected Results:

Strengthened cooperation with the United States on border, transboundary and security issues; strengthened bilateral relations with the United States and Mexico in a number of key areas; greater dialogue and understanding among Canadians, Americans and Mexicans; and strengthened North American cooperation on security, prosperity and quality of life.

(b) Principal Results Achieved:

• Canada and the United States agreed to an indefinite extension of the NORAD agreement and added maritime domain awareness to its mission.
• In February 2007, Canada hosted the ministerial meeting of the trilateral Security and Prosperity Partnership, bringing together industry, security and foreign ministers of the United States, Mexico and Canada. Key results included a commitment to conclude a regulatory framework for facilitating trade, while maintaining high standards of health and safety, and establishment of a coordinating body to oversee management in such areas as critical infrastructure protection and border resumption in the event of an emergency. Significant progress was achieved on a North America pandemic preparedness plan to deal with issues such as avian influenza.
• Canada and Mexico held their first-ever political/military talks.
• The department led consultations on the Western Hemisphere Travel Initiative, the U.S. requirement for all travellers to carry a valid passport or other appropriate secure document when travelling to that country from within the hemisphere. It also conducted successful advocacy through all Canadian missions in the United States to seek modifications in implementation of WHTI requirements for Canadians.

Strategic Priority 2: A more secure world for Canada and Canadians

(a) Expected Results:

Improved political and economic stability of failed and fragile states such as Afghanistan, Haiti, Sudan and states in the Middle East; increased capacity of developing states to counter terrorism, corruption and transnational crime; more timely, coordinated, whole-of-government responses to international crises; reduced opportunities for the proliferation of weapons and materials of mass destruction; and confidence in identity, entitlement and integrity of travel documents.

(b) Principal Results Achieved:

• At the NATO Summit in November 2006, Prime Minister Harper stressed the need for all allies to commit the necessary resources and capabilities to the Afghanistan mission to ensure that development and reconstruction can take root. Since then, NATO allies and partners have committed more than 6,000 new troops to the International Security Assistance Force (ISAF) to assist the Government of Afghanistan in rebuilding the country.
• The department’s contribution to stabilization and reconstruction in Afghanistan focused on justice sector reform, transnational justice and border management, in order to facilitate the Afghan government’s ability to build a functioning justice system and improve border security.
• The department played a key role at the Paris Pact II ministerial meeting in June 2006 in expanding the Paris Pact’s mandate to include all drug routes out of Afghanistan, including those to Canada. The Paris Pact is a partnership of countries affected by opium from Afghanistan.
• With respect to failed and fragile states, the department advanced Canada’s policy of promoting reconstruction and stabilization in Haiti by ensuring a positive outcome in renewal of the mandate of the UN Stabilization Mission in Haiti (MINUSTAH), providing $6.8 million to support projects to increase security and re-establish the rule of law, and deploying 57 Canadian police and 6 corrections officers to MINUSTAH.
• In the Middle East, the Global Peace and Security Fund disbursed $2.4 million to improve movement and access of people and goods at locations that include the Karni border crossing between Israel and Gaza.
• The department led Canada’s work on Sudan with the African Union, the European Union, the United Kingdom and the United States to broker talks that resulted in the Darfur Peace Agreement. Canada provided $60 million for logistical support to the African Union Mission in Sudan.
• The Stabilization and Reconstruction Task Force (START), located in the department, supported security sector reform and societal reconstruction in key fragile states, including Afghanistan, the Democratic Republic of Congo, Colombia and Haiti.
• Through the Counter-Terrorism Capacity Building Program, the department helped increase the capacity of developing states to prevent and respond to terrorist activity, in a manner consistent with international counterterrorism and human rights norms.
• The department worked with Russia, the United States and other countries to reduce opportunities for proliferation of weapons and materials of mass destruction through the Global Partnership. In 2006-2007, six nuclear reactors in decommissioned submarines were defuelled and two submarines were dismantled (seven to date).
• Also through the Global Partnership, Canada made a critical contribution of equipment for the chemical weapons destruction facility at Shchuch’ye in central Russia, where more than 1.9 million artillery shells filled with 5,400 tonnes of deadly nerve agents are to be destroyed by the Chemical Weapons Convention deadline of 2012.
• Canada implemented five physical protection projects at Russian facilities to improve security of nuclear materials located there.

For the department’s work on enhancing confidence in travel documents, see the information on Passport Canada below under Strategic Priority 5.

Strategic Priority 3: A revitalized multilateralism

(a) Expected Results:

International consensus achieved and progress made on key UN reforms; a whole-of-government global issues agenda developed and implemented internationally to advance Canadian objectives in areas such as migration, health, energy security, cities, the environment and sustainable development; a renewed human security agenda advanced internationally; Canada’s international contributions to democratic development more focused and better coordinated; and a strengthened international framework on criminal matters, with an increasing number of countries ratifying and implementing the Rome Statute of the International Criminal Court.

(b) Principal Results Achieved:

• The department worked with like-minded partners to ensure that the UN Peacebuilding Commission and Human Rights Council were successfully established. A member of the UN Human Rights Council, Canada contributed to design of its institutions and mechanisms, notably the Universal Periodic Review, to ensure that the human rights records of all UN member states are reviewed by the Council.
• Canada participated actively in the first Conference of the Parties to the UN Convention against Corruption in December 2006 to ensure that corruption is criminalized globally and that there is a platform for international cooperation on a case-by-case basis, including asset recovery (http://www.unodc.org/unodc/caccosp_2006_resolutions_1.html).
• Canada successfully lobbied the UN Security Council in its April 2006 resolution on the protection of civilians in armed conflict, which provided an important basis for implementation of the Responsibility to Protect.
• Canada strengthened the capacity of the Organization of American States to promote democracy in the Americas through efforts such as participation in nine electoral observation missions in the region (Peru, Colombia, Haiti, Bolivia, Guyana, Nicaragua, Venezuela, St. Lucia and Ecuador).
• Canada actively participated in the Review Conference on the UN Programme of Action on Small Arms and Light Weapons (SALW) in July 2006. Canadian priorities included transfer controls to stem the flow of illicit arms, especially to conflict zones; measures to ensure legitimate ownership and appropriate use of SALW; strategies to reduce demand for small arms for illicit purposes; and establishment of a program to bring conference participants together more frequently.
• At the Regional Conference on Migration, the department contributed significantly to development of the Guidelines for the Protection and Return of Child Victims of Trafficking, approved by the Vice-Ministers Conference in April 2007.
• Canada hosted the World Urban Forum in Vancouver in June 2006, with over 8,000 participants from 130 countries. It highlighted innovative and practical Canadian solutions to urban problems, while showcasing Canada as a global leader in urban issues.
• The department’s fourth Sustainable Development Strategy (Agenda 2009) was tabled in Parliament in December 2006. It will ensure greater integration of sustainable development in departmental policies, programs and operations and advance Canada’s sustainable development interests related to foreign affairs and international trade.
• The department held a series of national roundtables on corporate social responsibility and the Canadian extractive sector in developing countries in 2006. This involved hundreds of participants from industry, labour, civil society and the public, and produced recommendations the government is now considering.
• The department launched the Democracy Council, which brings together federal departments and agencies with groups like the International Development Research Centre and Rights & Democracy to strengthen Canadian efforts to promote democratic governance abroad.
• Canada provided leadership on multilateral approaches to Iraq reconstruction and development, taking an active role in UN-organized conferences aimed at preparing for the launch of the Iraq Compact. The Compact’s purpose is to help Iraq on the path toward peace, sound governance and economic reconstruction.
• The department’s International Criminal Court (ICC) and Accountability Campaign supported numerous projects to encourage ratification and implementation of the Rome Statute of the ICC, particularly in underrepresented regions of the world.

Strategic Priority 4: Greater engagement with like-minded partners in the G8 as well as emerging economies such as Brazil, Russia, India and China

(a) Expected Results:

Enhanced relations with the following G8 partners: France, Germany, Italy, Japan, Russia and the United Kingdom, as well as with the European Union; and strengthened relationships with rising powers (Brazil, Russia, India and China).

(b) Principal Results Achieved:

• At the 2006 G8 Summit in St. Petersburg, joint statements by Canada and Russia on bilateral relations and energy cooperation contributed to enhanced political relations with Russia and development of business relations. This led to the March 2007 meeting of the Intergovernmental Economic Commission and the Canada-Russia Business Summit (see http://www.g8.gc.ca/sumdocs2006-en.asp for more details).
• The Minister of Foreign Affairs led Canada’s engagement with Brazil, initiating work on an S&T agreement and building on shared interest on issues like cultural diversity and the situation in Haiti. Four memorandums of understanding were signed, involving Natural Resources Canada, Agriculture and Agri-Food Canada, the Canadian Foreign Service Institute (CFSI) and the National Film Board of Canada, and their Brazilian counterparts.
• Canada held bilateral meetings with Russia and China to discuss amendments to existing agreements on nuclear cooperation. In January 2007, the department negotiated and arranged an S&T cooperation agreement between Canada and China. Canada also met with India to discuss terms for development of a cooperation agreement. The department led development of a strategy to guide Canada’s engagement with India, focusing on S&T, energy, environment, agriculture, education and key commercial sectors. The department also advanced negotiations with India on a Foreign Investment Protection and Promotion Agreement (FIPA).
• The department worked with partner departments and provinces to forge stronger relations with China and advance Canadian interests and priorities by expanding the scope of the Canada-China Strategic Working Group.
• The department’s International Youth Program enabled some 54,000 Canadian and international young people to work and travel within each other’s countries. A total of 216 scholarships were awarded to international students to pursue advanced studies in Canada. A similar number of Canadian students pursued advanced studies internationally through reciprocal awards.
• The department’s annual Diplomatic Forum, held in Whitehorse in June 2006, provided an opportunity for about 100 foreign Heads of Mission to be briefed by Canadian federal and provincial ministers on foreign and domestic economic and defence issues. The Northern Tour, also in June 2006, introduced about 20 Heads of Mission to the economic and cultural vitality of Canada’s North during a one-week visit to five northern communities in all three territories.
• Agreements were negotiated with the Government of Ontario to co-locate provincial representatives in the Canadian Embassy in Beijing and the Canadian High Commission in Delhi. Another agreement was reached with the Government of Quebec on its representation at the Canadian Embassy in Beijing.  

Strategic Outcome: Serving Canadians Abroad

Working from a solid base of policy expertise and diplomatic and advocacy activities (reflected in the first strategic outcome), the department strives to assist Canadians in participating actively in today’s globalized community through involvement in international affairs and world markets. Such assistance takes two forms: consular and passport services.

Strategic Priority 5: Strengthened consular and passport services, able to respond rapidly and flexibly

(a) Expected Results:

Increased capacity to deal with growing demands and emerging challenges placed on the Consular Program; continued delivery of high-quality consular services; deepened understanding on the part of the Canadian public and media of the nature and extent of consular services; improved client satisfaction with respect to passport services; and optimized and diversified funding for Passport Canada.

(b) Principal Results Achieved (Consular Services):

• The department led the evacuation of Canadians from Lebanon in the summer of 2006, by far the largest and most successful evacuation ever mounted by the Government of Canada.
• Consular services received an overall satisfaction rating of 96 percent from clients in 2006-2007. Clients also reported a high degree of trust in the department’s Travel Safe materials—96 percent of travelling Canadians said they have a great deal or some trust in them. Depth of knowledge and reliability/accuracy were the main reasons cited. (The Strategic Counsel conducted 850 interviews in the international departure lounges of Montreal, Toronto and Vancouver airports in March 2007.)
• Last year, the department’s consular website (http://www.voyage.gc.ca/consular_home-en.asp) attracted 4.2 million visitors. There were over 15,000 subscribers to the email travel updates by the end of the year, a 25 percent increase from the previous year.
• The consular website received an award of excellence in January 2007 from Treasury Board Secretariat for exceeding Government On-Line expectations. The site provides Canadians who travel or live abroad with online information and advice on foreign countries.

(c) Principal Results Achieved (Passport Canada):

• Passport Canada was severely challenged this year in delivering on its service commitments, due to a larger increase in demand than originally forecast. Turnaround standards were met for 77.9 percent of applications, as a result of strong performance through November. Wait time results were not as strong. As volumes significantly exceeded capacity between December and March, there was a decrease in performance. The proportion of applications processed within turnaround time standards during that period was just 36.9 percent.
• The department received an award of excellence from Treasury Board of Canada Secretariat for its outstanding teamwork that led to the success of the National Routing System. This secure network links federal and provincial agencies, including Passport Canada, and enables real-time exchange of vital information.

Passport security was further enhanced through the following measures:

• All regular blue passports are now produced in Canada, including those issued at missions abroad.
• Passport Canada’s new agreement with Correctional Service Canada resulted in refusal of 63 applications and revocation of 79 passports from individuals prohibited from travelling abroad.

Passport Canada’s project to implement facial recognition technology as a means of preventing passport fraud did not advance last year as a result of procurement issues, and is now targeted for 2007-2008

Strategic Outcome: Advancing Canada’s International Commercial Interests.

This strategic outcome underscores the fact that, in order to have a strong, prosperous and competitive economy, Canadians must engage prominently and actively in global markets in terms of trade, investment, innovation and development of new products. To encourage more Canadian companies to take part in international commerce, an activity that could greatly enhance their productivity and competitiveness, the department helps to raise awareness of the challenges and opportunities in the global marketplace through targeted engagement with stakeholders.

Strategic Priority 6: Increasing Canadian awareness of the challenges and opportunities presented by global commerce

(a) Expected Results:

Specific strategies developed by Canadian business clients to respond to the challenges and opportunities of global commerce; enhanced domestic buy-in to advance Canadian commercial interests; and increased utilization of government programs and services to help Canadians succeed in the global economy.

(b) Principal Results Achieved:

• The department led the development of the Global Commerce Strategy, a core component of which is focused on North America, as a coherent approach that will ensure that Canadian business can take advantage of new markets and extend its global reach. The strategy will contribute to the success of the government’s overall economic plan for Canada, Advantage Canada, complementing and building on investments in commercial infrastructure.
• As part of the Global Commerce Strategy, six multi-year, whole-of-government market plans were developed for the priority markets of the United States, Mexico, China, Europe, India and Brazil. The plans integrate all aspects of international commerce, including market access, two-way trade and investment, and S&T.
• The department held extensive consultations with stakeholders inside and outside government on these market plans, including three business roundtables led by the Minister for International Trade that complemented coast-to-coast consultations by officials on the China and India market plans.
• The department organized several major missions and outreach activities focused on Asia, including the Minister for International Trade’s participation at the Asia-Pacific Economic Cooperation (APEC) ministerial meeting in Vietnam. This meeting resulted in the re-launch of free trade negotiations with Singapore and the pursuit of negotiations with Indonesia on a Foreign Investment Protection and Promotion Agreement.
• Regarding the European marketplace, several incoming and outgoing trade missions were organized over the past year with both a sector-specific and S&T focus, including those with Russia and Ukraine.
• The Trade Commissioner Service’s electronic client-management (eCRM) system (known as TRIO), which provides clients with single-window access to market information, was greatly expanded over the past year. The eCRM project won an award for excellence from Treasury Board Secretariat.
• Through the Virtual Trade Commissioner (VTC), a companion system to TRIO, collaboration with federal partners was increased to make the system a single point of entry for access to federal services for Canadian business.
• The $591 million Asia-Pacific Gateway and Corridor Initiative was launched in October 2006 to facilitate the operations of global supply chains between North America and Asia. In January 2007, the Minister for International Trade participated in business roundtables with 12 private sector stakeholders in Hong Kong, Beijing and Shanghai to promote the initiative.
• The department launched an Aboriginal trade website (http://aboriginaltrade.ca) to provide a single point of access to international business development information for Aboriginal businesses and buyers seeking their products and services.
• A publication entitled Business Women in Trade was launched to showcase women entrepreneurs who are successful internationally.
• The department developed an online guide to help municipalities improve their understanding of trade policy issues and develop their capacity to address them more strategically.

Strategic Priority 7: More secure access for Canadian business to global markets through the negotiation and implementation of commercial agreements

(a) Expected Results:

Canadian trade and investment interests are advanced through an appropriate rules-based initiative; market access for Canadian goods, services, technologies and investment is maintained and improved; trade and investment disputes are managed effectively; and the domestic regulatory and legislative framework under the responsibility of the Minister for International Trade is managed effectively.

(b) Principal Results Achieved:

• The department finalized the Softwood Lumber Agreement between Canada and the United States in 2006-2007, establishing a secure and predictable commercial environment for the Canadian lumber industry. Approximately US$4.5 billion in duties collected during that time have been returned to Canadian softwood lumber exporters.
• Canada and Korea held five rounds of negotiations toward conclusion of a free trade agreement.
• The Track II package of liberalizing NAFTA (North American Free Trade Agreement) rules of origin changes, estimated to represent about US$20 billion in trilateral trade in goods, was implemented by all three NAFTA countries in July 2006. The package covers a broad range of agricultural, consumer and industrial goods.
• A negotiating team composed of departmental and Transport Canada representatives as well as the Canadian Transportation Agency, headed by the Chief Air Negotiator, successfully concluded seven bilateral air services negotiations. These resulted in first-time bilateral Air Transport Agreements with Algeria, Croatia and Serbia, and significantly expanded agreements with the United Kingdom, Portugal, Brazil and Japan. All but the agreement with Algeria were concluded subsequent to Canada adopting the new “Blue Sky” international air policy.
• The department’s efforts to use dispute settlement provisions effectively included initiating WTO consultations on certain U.S. agricultural subsidy programs and challenging China’s measures on importation of automobile parts, as well as participating as a third party in WTO panels dealing with issues of concern to Canada.
• The WTO Dispute Settlement Body ruled in favour of Canada’s position on all important matters with respect to measures by the European Community on approval and marketing of biotech products.
• The department ensured that controls on the export of defence and strategic goods were fully consistent with Government of Canada policy. This included applying strict trade measures against Belarus and adoption of UN sanctions against North Korea and Iran.

Strategic Priority 8: Assisting Canadian business in competing successfully for global opportunities

(a) Expected Results:

Canadian business positioned effectively to grow through global commerce; business opportunities and intelligence generated to match Canadian capabilities with specific foreign business needs; and optimized delivery of client services (e.g. timely and high-quality market information; key contacts; business advice and referrals to support sound, informed international business decisions).

(b) Principal Results Achieved:

• In November 2006, Canada signed a Foreign Investment Protection and Promotion Agreement with Peru.
• In March 2007, Canada signed a letter of intent with Brazil on negotiation of a bilateral S&T agreement.
• The department led a federal team at one of the world’s premier environmental industry events, the BIO 2006 trade show in Chicago. The event showcased Canadian strengths in biotechnology, enhancing Canada’s image as a world leader in this sector.
• The department’s International Business Opportunities Centre (IBOC) disseminated high-quality business opportunities, identified by trade commissioners at Canada’s missions abroad, to Canadian firms. During the reporting period, over 4,750 leads produced more than 20,000 potential Canadian company matches.
• The department’s Program for Export Market Development for Trade Associations (PEMD-A) helped member companies promote their products and services internationally.
• For more statistics on Canadian trade and investment, see the department’s annual State of Trade reports (http://www.dfait-maeci.gc.ca/eet/trade/state-of-trade-en.asp).

Strategic Priority 9: Promoting Canada as a globally competitive location and partner for investment, innovation and value-added production

(a) Expected Results:

New and expanded investments in Canada by international businesses; increased knowledge of, and interest in, Canadian capabilities and advantages on the part of foreign investors and innovators; S&T partnering opportunities and intelligence generated to match Canadian and foreign S&T needs and capabilities; and enhanced international R&D collaborations and commercializations made, involving Canadian researchers and business partners.

(b) Principal Results Achieved:

• In 2006, the stock of foreign direct investment (FDI) in Canada increased by $41.3 billion to $449 billion, a 10 percent increase and the biggest surge in Canada since 2001. With a stock of FDI equivalent to 31 percent of gross domestic product, Canada has one of the most robust investment orientations of the G7.
• The department has been successful in attracting key investors to Canada. For instance, the Canadian Embassy in Berlin targeted a major German automotive equipment firm, Georg Fischer AG, as an investment promotion candidate in late 2000. Through close collaboration with Canadian missions in Bern and Detroit, this resulted in a $20 million investment by the firm in 2006, showing the value of a multi-market approach to attract foreign direct investment to Canada. 
• The Canadian Consulate in Minneapolis facilitated a major expansion of Cargill’s canola processing plant in Clavet, Saskatchewan, one of the largest facilities of its kind in the world.
• In Paris, the Canadian Embassy facilitated a $32 million expansion of the Michelin facility in Bridgewater, Nova Scotia; the Ubisoft expansion of its video-gaming centre in Montreal; and the Sanofi-Pasteur expansion of its vaccine R&D facility in Montreal. 
• The department participated in six select investment conferences and forums in Asia, Europe and the United States to reach large audiences of potential foreign investors and influencers. Informal surveys and feedback exercises carried out by the department at these events revealed that the overwhelming majority of participants had become more aware of Canada’s advantages as a destination of choice for business.
• According to the UN World Investment Report (http://www.unctad.org/Templates/webflyer.asp?docid=7431&intItemID=2527&lang=1&mode=highlights), Canada improved its ranking from fourth to third out of 140 countries on the inward FDI potential index, suggesting continuing improvement in its business and investment climate. However, on the inward FDI performance index, Canada ranked 97th.
• The department led the government portion of the Canada-California Strategic Innovation Partnership, a unique model to bring together research, business and government leaders to build a strong infrastructure for technology and innovation.
• In January 2007, the department negotiated and arranged the signing of an S&T cooperation agreement between Canada and China, which should significantly boost collaborative research and development activities.

Strategic Outcome: Serving Government Abroad

This strategic outcome is fundamental to the success of the other outcomes. That is because this outcome focuses on the department’s management at headquarters and Canada’s missions abroad and the delivery of cost-effective and efficient services and infrastructure to enable the international operations of federal partners. Without well-managed, flexible operations, the department would not be able to carry out its other important work.

Strategic Priority 10: A department that is recognized as modern and agile

(a) Expected Results:

More effective leadership of, and coherence on, international policy issues and strategies; better integration and management of the department’s public diplomacy resources; Canadians better informed about, and more engaged in, international policy; greater program, policy and project management capacity at headquarters and missions abroad; greater capacity to integrate economic considerations into international policy and activities at home and at missions abroad; representation abroad better aligned to reflect shifting distribution of global power and dominance; human resources management that is modernized and supports the department’s transformation agenda; better management of, and accountability for, financial and non-financial resources; more efficient and effective corporate services in support of the department and partners and a more secure platform at home and abroad; improved capacity to deliver services to clients through initiatives focusing on service quality, efficiency and other dimensions of modern management; and enhanced programs and services that respond effectively to the needs of the Canadian business community.

(b) Principal Results Achieved:

To improve its leadership of, and coherence on, international policy issues and strategies, the department achieved the following key results:

• The department implemented a process by which Canada’s missions abroad produce coordinated, whole-of-government strategies for specific countries and multilateral organizations. These strategies are reflected in the mandate letters for new Heads of Mission (HOMs), in the performance management agreements prepared for all HOMs, and in reporting agreements. They ensured alignment of mission activities with government-wide priorities and reinforced the accountability of HOMs for advancement of objectives in their countries of accreditation.
• The department has begun development of strategies integrating all its programs and activities to address key themes in priority countries and regions. For Latin America and the Caribbean, key themes include governance, democratic development, human rights and the rule of law and their relationship with education and youth activities (conferences, knowledge networks, research, scholarships and mobility) supported by the department in this region.
• The federal government reached an agreement with Quebec to establish a formal role for the province in UNESCO.
• To better integrate and manage its public diplomacy resources, the department hosted an online dialogue on its Canada in the World: Canadian International Policy website (http://geo.international.gc.ca/cip-pic/about/policy_positions-en.aspx) on non-proliferation, arms control and disarmament from September to December 2006 in order to solicit input from university classes, non-governmental organizations, experts and the public. In January 2007, this website received an award of excellence from Treasury Board Secretariat for exceeding Government On-Line service expectations and providing an online forum in which Canadians could discuss foreign policy.
• The Muslim Communities Working Group provided effective guidance and messaging for Canadian initiatives aimed at engaging Muslim communities abroad for the promotion of good governance, democracy, human rights and the rule of law in South, Central and Southeast Asia, the Middle East and Europe.
• The department developed recommendations for cyclical review of Foreign Service Directives to enhance allowances and incentives for staff assigned to high-risk missions.
• The department developed a human resources performance framework to identify priorities, monitor progress and determine commitments in performance management agreements of ADMs.
• The department consolidated a corporate human resources plan that emphasizes recruitment and the learning needs of staff to ensure that current and future requirements are met.
• The Canadian Foreign Service Institute underwent a comprehensive evaluation and developed a draft new mandate in February 2007, which includes recognition of the institute as a Government of Canada centre of expertise for international affairs, intercultural effectiveness and foreign-language training.  
• The department developed a comprehensive, three-year plan to better leverage information management and information technology (IM/IT), including its global infrastructure platform used by all federal departments and agencies operating outside Canada.
• The department continued its rigorous cyclical replacement of IM/IT systems to ensure reliability and prevent rust-out. It launched the SIGNET-C5 priority project to ensure uninterrupted secure communications for the operations of the department at headquarters and missions abroad, as well as those of its partners at Canada’s missions worldwide.
• The department managed the programs and logistics for visits to Canada by 12 foreign heads of state or government and 30 foreign ministers and other guests of the Government of Canada. It also planned 6 visits abroad by the Governor General, 9 by the Prime Minister, 27 by the Minister of Foreign Affairs, 6 by the Minister for International Trade, and 6 by the Minister for international cooperation.
• The department audited 20 embassies, high commissions, consulates, consulates general and trade offices abroad last year. Once finalized and approved, these audits will be made public. During 2006-2007, the department publicly released audits of nine missions and three headquarters entities. It also audited more than 60 grants and contributions programs.
• Regarding property management, the department’s staff at headquarters and at four missions evaluated major projects, in accordance with procedures under its ISO 9001:2000 certification. Last year, 94 percent of projects delivered met cost objectives, and 88 percent were delivered within three months of schedule.
• The Physical Resources Bureau’s project team won an award from the Real Property Institute of Canada for the new Canadian Embassy in Ankara (http://www.rpic-ibic.ca/en/awards/rpic_recipients/nov2006award.shtml). The bureau also received a 2007 award from the Materiel Management Institute in recognition of the ISO 9001:2000 certification of its contract management process (http://www.mmi-igm.ca/en/awards/2007/index.shtml).

Note: Further details on the results listed in this summary are available in Section II, along with information on other results achieved by the department in 2006-2007.

1.9 Canada’s Representation Abroad and Foreign Representation in Canada

Canada has a formal presence in over 80 percent of the world’s 192 independent states, and provides federal government services at 296 locations worldwide. Canada’s missions represent the entire Government of Canada and advance federal, provincial, territorial and municipal interests in designated countries, areas or multilateral organizations.

The missions ensure integration and coordination of all federal activities outside Canada. All federal employees at missions abroad, regardless of their home departments or agencies, act as members of a cohesive Government of Canada team.

The department serves the foreign diplomatic community accredited to Canada (175 foreign diplomatic missions—127 in Ottawa and 48 in New York City or Washington, D.C.; 506 foreign consular posts; and 19 international organizations and other offices). At present, there are approximately 8,110 foreign representatives and accredited members of their families in Canada.

1.10 Accountability: Our Ministers, Senior Management and Reporting Relationships

1.10.1 Our Ministers and Senior Staff

Maxime Bernier, the Minister of Foreign Affairs, and David Emerson, the Minister for International Trade, are accountable to Parliament for management and oversight of the department. The Minister of Foreign Affairs is supported by Beverley Oda, the Minister for international cooperation, who is responsible for the Canadian International Development Agency. The Minister of Foreign Affairs and the Minister for International Trade are assisted by Helena Guergis, Secretary of State (Foreign Affairs and International Trade). Also supporting the ministers are Deepak Obhrai, the Parliamentary Secretary to the Foreign Affairs Minister, and Ted Menzies, the Parliamentary Secretary to the International Trade Minister and to the Minister for international cooperation.

The Deputy Ministers of Foreign Affairs and International Trade support the ministers in determining the direction of the department. The Deputy Ministers and Associate Deputy Minister of Foreign Affairs are responsible for the department’s strategic outcomes and related program activities. The Associate Deputy Minister has particular responsibility for interdepartmental coordination of Canada’s role in Afghanistan, and also serves as the Prime Minister’s personal representative to the G8.

Reporting to the Deputy Minister of Foreign Affairs are the Associate Deputy Minister; the Assistant Deputy Ministers (ADMs) for International Security, Global Issues and Bilateral Relations; and Passport Canada. Reporting to the Deputy Minister for Trade are the Senior Adviser for International Trade; the ADMs of Global Operations (formerly World Markets/Commercial Relations); Investment, Innovation and Sectors (formerly International Business Development); and Trade Policy and Negotiations. The Chief Air Negotiator reports jointly to the Deputy Ministers of International Trade and Transport.

The Secretariat for the Americas Strategy is responsible for the provision of strategic direction on the comprehensive whole-of-government action plan in support of the government’s commitment to re-engage with the Americas. It is led by the ADM and Executive Director for the Americas Strategy.

In accordance with the department’s new PAA, the International Business Development program activity has now been split between the ADM, Global Operations, and the ADM, Investment, Innovation and Sectors.

The ADMs for North America, Strategic Policy and Public Diplomacy, Corporate Services, and Human Resources report to both Deputy Ministers. So do the Legal Adviser, the Protocol Office, and the Directors General (DGs) of Communications and Executive Services.

Within the department, there are two special operating agencies: Passport Canada and the Physical Resources Bureau. Passport Canada operates much like a private sector enterprise, financing its operations entirely from the fees charged for passports and other travel documents. It also maintains a revolving fund that allows it to carry over surpluses and deficits. The Physical Resources Bureau is responsible for the cost-effective acquisition, management, development and disposal of real property and materiel that supports program delivery abroad. The department manages over 2,000 properties abroad (chanceries, official residences and staff quarters), valued at approximately $2 billion.

1.10.2 Our Decision-Making Committees inside the Department

Executive Committee, chaired by the Deputy Minister of Foreign Affairs, covers all major policy, program and management issues related to the department’s four strategic outcomes as well as internal services. Meeting weekly, this committee includes the Deputy Minister for International Trade, the Associate Deputy Minister, all ADMs and the DGs of Communications and Executive Services. Executive Committee also reviews and approves the department’s annual business plans.

Trade Senior Planning Committee, chaired by the Deputy Minister for International Trade, deals with the international commerce dimension of the department’s strategic outcome, International Services for Canadians, as well as trade elements of Canada’s International Agenda strategic outcome. Meeting bi-weekly, this committee is made up of the ADMs responsible for Trade Policy and Negotiations; Global Operations; Investment, Innovation and Sectors; and Strategic Policy and Planning; as well as the ADM-level trade negotiators and the DGs of Communications and Executive Services.

Four committees deal with the department’s strategic outcome relating to Canada’s International Platform:

• The Interdepartmental ADM Council on Common Services Abroad advises the Deputy Minister of Foreign Affairs on mechanisms to implement Canadian foreign policy through Canada’s diplomatic and consular networks. It also monitors alignment of priorities approved by the Foreign Affairs Minister and allocation of common service resources, as well as promotes alternatives for more cost-effective service delivery.
• The Interdepartmental DG Common Services Abroad Committee meets quarterly to provide direction and guidance on common service policy and delivery under the framework of the Interdepartmental Memorandum of Understanding (MOU) on Operations and Support at Missions Abroad (the generic MOU).
• The Interdepartmental Director Working Group on Common Services Abroad decides on day-to-day operational issues pertaining to the MOUs, monitors service delivery standards and performance measurement, and implements the framework for planning and managing change at missions abroad. Meeting every three weeks, it takes direction from the DG Committee.
• The Committee on Representation Abroad (CORA) discusses proposed position changes at missions abroad and makes recommendations to Executive Committee.

The following three committees support all four of the department’s strategic outcomes by addressing internal issues throughout DFAIT’s operations:

• The Human Resources Advisory Committee meets monthly to advise on human resources issues. Chaired by the ADM of Human Resources, it is made up of DGs and selected Heads of Mission.
• The Audit Committee is chaired by the Deputy Minister of Foreign Affairs. The Deputy Minister for International Trade is vice-chair. It meets at least four times a year. Membership includes three ADMs and the Chief Audit Executive of the Office of the Inspector General. Others from inside and outside the department attend meetings as requested.
• The Departmental Evaluation Committee has recently been established to guide and oversee evaluation and performance reporting activities to enable the use of evaluation findings in management and decision making. Made up of senior departmental officials, this committee is to be chaired by the Deputy Ministers or their designate, and will meet quarterly to review and approve evaluation reports, policies and plans.

1.10.3 Who is Accountable for Each of Our Program Activities

The following table identifies the senior manager primarily responsible for each program activity in 2006-2007.

Program Activity	Primary Accountability
Strategic Policy and Public Diplomacy3	Strategic Policy and Planning ADM
International Security	International Security and Political Director ADM
Global Issues	Global Issues ADM
Bilateral Relations	Bilateral Relations ADM/North America ADM
Protocol	Office of Protocol DG
Trade Policy and Negotiations	Trade Policy and Negotiations ADM
World Markets/Commercial Relations	Global Operations ADM
International Business Development	Global Operations ADM/Investment, Innovation and Sectors ADM
Promotion of Foreign Direct Investment and S&T	Investment, Innovation and Sectors ADM
Common Services and Infrastructure (support from headquarters and missions abroad)	Corporate Services ADM/Human Resources ADM/ Bilateral Relations ADM/North America ADM
Consular Affairs	North America ADM (Consular Affairs DG)
Passport Canada Special Operating Agency (Revolving Fund and Appropriated Funds)	Passport Canada CEO

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³The Strategic Policy and Public Diplomacy program activity has been changed to Strategic Policy and Planning.

1.10.4 Decision-Making Committees outside the Department

The department is influenced by decisions taken by several Cabinet committees. First, the Cabinet Committee onForeign Affairs and Security and the Cabinet Committee on Economic Growth and Long-Term Prosperity directly affect the department’s work and influence the agenda of its committees. As chair of the Cabinet Committee on Economic Growth and Long-Term Prosperity, International Trade Minister David Emerson assumes a leadership role in planning and coordinating the committee’s work and in conducting its investigations. Second, the Treasury Board Cabinet Committee is important, given that it provides departments with the resources and administrative environment they need to do their work. Third, three other Cabinet committees can influence this department: Priorities and Planning, Operations and Environment and Energy Security.

The Deputy Minister of Foreign Affairs chairs an important interdepartmental Deputy-Minister-level committee established by the Clerk of the Privy Council—the Deputy Ministers’ Committee on Global Affairs, Security and Human Rights. It brings together deputies from various departments with wide-ranging policy responsibilities. This committee provides a means of developing whole-of-government approaches to globalization and other international issues affecting Canadian interests.

1.11 Parliamentary Committee Business Related to Our Work

House of Commons Standing Committee on Foreign Affairs and International Development: Throughout 2006-2007, this committee issued reports on several key subjects, including Darfur, Haiti, development assistance, the UN resolution on the small arms trade, cluster bombs and the incident in Canada that affected the Secretary General of La Francophonie. The government tabled a response to a previous committee report on Haiti. The committee also examined Bill C-293 (an act on development assistance abroad) and reported back to the House of Commons.

House of Commons Standing Committee on International Trade: It released reports in 2006-2007 on issues including the Canada-United States agreement on softwood lumber, Canada’s free trade negotiations with the Central America Four (El Salvador, Guatemala, Honduras and Nicaragua) and 10 steps to a better trade policy. In May 2007, it released a report on bulk water removals.

House of Commons Standing Committee on Public Accounts: In May 2006, it issued a consideration of a 2005 report by the Auditor General entitled Passport Office—Passport Services. The government tabled a response in August 2006.

Senate Standing Committee on Foreign Affairs and International Trade: Itreleased a report on a new road map for sub-Saharan Africain February 2007. It also reviewed Bill C-24 (an act related to the Canada-United States Softwood Lumber Agreement). In May 2007, it released a report on the July 2006 evacuation of Canadians from Lebanon.

All committee reports and government responses are available at http://cmte.parl.gc.ca/cmte/CommitteeList.aspx?Lang=1&PARLSES=391&JNT=0&SELID=e8_&COM=0.

1.12 Auditor General Reports of Relevance to Our Work

In February 2007, the Auditor General released a report entitled Passport Services—Passport Canada. In May 2007, the Auditor General issued a report on this department’s human resources management (see http://www.oag-bvg.gc.ca/domino/reports.nsf/html/07menu_e.html for both).

1.13 How We Describe Performance in More Detail in Section II

In Section II, the department provides more detailed information about its 2006-2007 performance. For each program activity, it offers:

• a brief description;
• a summary of its mandate and operating context;
• a discussion of main accomplishments as they relate to the relevant strategic priorities of the department (as identified in the 2006-2007 Report on Plans and Priorities);
• a list of performance indicators used; and
• lessons learned in the fiscal year.

The department’s two components are presented separately, beginning with Foreign Affairs and followed by International Trade. The information is organized in this way in order to conform with the 2006-2007 RPP, which was prepared at the time (February 2006) when the department had just been brought together again after having been two separate organizations. At the end of Section II, there is a short discussion of two supporting activities (Corporate Services and Human Resources) that provide essential infrastructure to the entire department. In future, the department’s planning and performance reports will provide information in a much more integrated manner.

As readers would expect, Section II refers back to specific content in the 2006-2007 RPP. Readers should be aware, therefore, of three slight discrepancies between this report and the RPP. First, while the RPP contained a separate section on trade-related strategic policy, this information is now discussed under the Promotion of Foreign Direct Investment and Science and Technology Cooperation program activity (Section 2.2). This change reflects a recent realignment that brought together many functions of the department’s commercial program, including policy development, consultation and strategic planning. Second, the wording of the mandate, context and/or planned outcomes of some program activities does not correspond exactly to that used in the RPP. That is because some small alterations were made to improve clarity or to better reflect realignment of the department’s commercial program. Third, for some program activities, the RPP had listed several performance indicators, which is not in keeping with current TBS requirements of no more than three indicators per program activity listed in the PAA. Therefore, the number of indicators for certain program activities and priorities has been reduced in this Departmental Performance Report. In a few instances, however, the nature of the activity and priority required the department to exceed the maximum number of indicators by a small margin.

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