ARCHIVED - RPP 2007-2008
Department of Foreign Affairs and International Trade

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Section I Departmental Overview

1.1 Ministers' Message

The Honourable David Emerson Minister for International Trade

The Honourable Peter G. MacKay Minister of Foreign Affairs

Canadians believe that our country—stable, democratic, prosperous and reliable—can help effect positive change in the world. Canada's New Government is committed to making this a reality, as readers will see in this document—the 2007-2008 Report on Plans and Priorities (RPP) of the Department of Foreign Affairs and International Trade. We take pride in presenting this report, the second RPP since the department was reintegrated in 2006.

Over the past year, our foreign and trade policy has become more assertive on the world stage, our interests and values more defined and better served. We have shown the resolve and the capacity to stand up for what we believe in and play a leading role in defending Canada's security. The significant Canadian contribution in Afghanistan to combatting terrorism, while assisting in that country's stabilization and reconstruction, is proof that Canada is ready and able to make a difference internationally on matters of importance to Canada's security and well-being. We are equally determined on the economic front to enhance Canada's competitiveness in the international economy. Settling trade disputes like softwood lumber and moving forward in the development of a global commerce strategy are indicative of this resolute approach.

The increasingly assertive role Canada is playing on the global stage is proof of our commitment. But there are other important factors supporting our conviction that Canada must play a more prominent role abroad.

The first is that Canada is extensively connected internationally. We are a G8 country and a NATO member with global responsibilities. Our role takes us into the heartland of international decision making, negotiations and networking, including the United Nations, the Organization of American States, the Asia-Pacific Economic Cooperation forum, the Commonwealth and La Francophonie, to cite a few.

And we as Canadians are increasingly global. One in five Canadians was born abroad. Roughly 2.7 million Canadians live outside Canada. This naturally results in an increased demand for services—consular, passport and commercial. Canadian direct investment abroad reached $465 billion in 2005 and grew by 3.9 percent each year over the 2001-2005 period.

A second factor is Canada's "footprint" abroad, in the form of our network of diplomatic missions and representation abroad. These provide essential tools that this department uses to address and shape international issues to Canada's interests and values. We cannot succeed in the latter without a well-structured foreign presence.

As the lead department in the development and coordination of the Government of Canada's foreign and international economic policies and initiatives, the department connects Canada's international and domestic interests. Canada's domestic prosperity is supported through the department's international trade policy and programs; our sovereignty, through international law and relations with key partners; our federation, by integrating provincial representation abroad; the welfare of our citizens, through consular, passport and commercial services; and our national security, through international agreements, counterterrorism work, international law enforcement and response to foreign-based threats.

Moreover, the department provides coordination and host functions for other government departments with interests and programs abroad. Our department enables the specialized work of 20 other partner departments and agencies—from Agriculture and Agri-Food Canada to the RCMP. From these common services come greater economies and greater efficiency in the use of taxpayers' money.

A third factor is how the department achieves results. A more assertive role globally that delivers these results has to be supported by the right principles, strategies and priorities.

Canada's New Government was elected on a platform of greater accountability. Our department is committed to improving accountability by better aligning resources with strategic objectives and priorities. As Canadians examine the performance of the government and its various departments, agencies and Crown corporations, they want to know whether a department is being efficient and effective in achieving results. This report helps to provide the answers by describing the department's strategic objectives and priorities—and how it intends to pursue them and achieve real, measurable results.

For example, we have developed country and regional strategies, as well as multilateral strategies for the organizations in which Canada participates, which specify the expected outcomes of each Canadian mission abroad. The strategies contain assessment criteria by which performance and results can be evaluated. They also help allocate—and reallocate where possible—funds and resources. Mandate letters align head of mission objectives to the broad government-wide agenda, as well as to performance management assessments and achievement of results.

In addition, the department has categorized missions in accordance with the level and intensity of Canadian interests and priorities. This ensures that mission size, composition and resources are appropriate to their designated category. The department has also constantly re-evaluated its property portfolio for opportunities to reduce costs and rationalize space.

In the year ahead, the department will focus on six strategic priorities.

A safer, more secure and prosperous Canada within a strengthened North American partnership.

The department will exert greater leadership and coordination of government-wide policy initiatives aimed at promoting Canada's security and prosperity—starting here in North America. Through our network of missions, we will develop the North American Platform as the springboard for our global commerce. We will continue building a stronger partnership with Canada's most important ally, customer and neighbour: the United States. We are keenly aware of the economic imperative of ensuring the secure and timely flow of people and commerce across the Canada-United States border.

We intend to promote Canada assertively as an emerging energy superpower, a stable and growing producer in an unpredictable world. As the largest supplier of oil, natural gas, electricity and uranium to the United States, Canada plays a crucial role in assuring continental energy security.

As we strengthen our bilateral relationship with the United States, we will continue to respond actively to areas of particular concern to Canada's security. In Afghanistan, we will work with our NATO allies to help bring law, order and essential services to that war-ravaged country. We will work with multilateral partners, notably the G8, to contain weapons of mass destruction and combat terrorism. We will continue engagement with international partners to address the Iran nuclear issue; provide support to move the Israeli-Palestinian conflict toward peace; and support aid programming to strengthen Iraqi governance and human rights.

Greater economic competitiveness for Canada through enhanced commercial engagement, secure market access and targeted support for Canadian business.

This year, we will implement a global commerce strategy, particularly through the development of the North America Platform, as committed to in the government's economic blueprint, Advantage Canada. We will work to conclude free trade agreements with the European Free Trade Association, the Central American Four (El Salvador, Guatemala, Honduras and Nicaragua), Singapore, and South Korea and work towards free trade with the Andean Community, Dominican Republic and the Caribbean Community (CARICOM). We will continue to advance Canadian interests and negotiating positions in the WTO Doha negotiations to ensure a successful outcome to the Round. Canada also remains committed to the NAFTA as the cornerstone for strengthening North American competitiveness, and continues to actively pursue a NAFTA work plan that enhances its trade and investment with the United States and Mexico.

To attract more foreign investment in Canada, the department will collaborate with federal partners on a policy framework. In addition, we will use our international network of missions to further advance the Asia-Pacific Gateway and Corridor initiative, working with western provinces on infrastructure, transportation technology and border security. These efforts will boost Canada's share of the West Coast container market, vastly increase the volume of American container traffic through Canada and help Canada re-emerge as a serious competitor and entrepreneurial leader in the world.

We will also actively promote the 2010 Vancouver Olympics, focusing first on the B.C.-Canada pavilion at the 2008 Beijing Olympics.

Greater international support for freedom and security, democracy, rule of law, human rights and environmental stewardship.

We will continue to speak clearly, openly and forcefully on the world stage on Canada's fundamental values. To this end, the department will develop a proactive human rights strategy, including a policy framework for Canadian diplomacy in specific countries and multilateral groups, particularly the new UN Human Rights Council.

We will also develop a government-wide democracy promotion strategy and advance a humanitarian affairs agenda, focusing on protection of civilians in armed conflict. To maximize the effectiveness of Canada's foreign aid in advancing the government's foreign policy, development and security agendas, the department will continue to strengthen coordination, prioritization and accountability of the International Assistance Envelope with federal partners.

Accountable and consistent use of the multilateral system to deliver results on global issues of concern to Canadians.

Canada's unique membership in a broad range of international organizations provides us with an important diplomatic means by which we can address global issues and promote shared interests. We will continue to bring forward Canada's concerns in such bodies, while advocating adoption of modern management and budgetary structures in key organizations like the UN and NATO.

Strengthened services to Canadians, including consular, passport and global commercial activities.

We will improve emergency preparedness and crisis response capabilities as part of the department's strengthened consular service. In addition, we will tighten security of the Canadian passport by implementing heightened facial recognition procedures, adding regional security officers and increasing protection of staff, critical assets and materials. Passport Canada will enhance the ability of governments to authenticate identification of applicants.

In terms of commercial services, a global commerce strategy will allow new approaches for Trade Commissioners to meet the evolving needs of Canadian firms in a changing global environment, characterized by intense competition. We will provide more timely and targeted intelligence to enable more Canadian firms to expand abroad and seize opportunities in fast-growing, highly competitive and diverse markets.

Better alignment of departmental resources (human, financial, physical and technological) in support of international policy objectives and program delivery both at home and abroad.

In keeping with the new Federal Accountability Act, the department will strengthen management controls, improve financial reporting and analysis, and better define financial and corporate risk. In human resources management, staffing strategies will be developed for key occupational groups. Selection criteria and management of locally engaged staff at Canadian missions abroad will be strengthened.

We will continue to enhance security at high-risk missions abroad; implement a major upgrade of Canada's properties abroad; and ensure that the department's technical infrastructure remains as robust, secure and reliable as possible. The department will fully integrate information and communications technology for foreign affairs and trade components to provide much more seamless and effective service.

The department's past accomplishments and future successes are made possible by the strong sense of purpose demonstrated by our employees. We recognize their considerable contribution in advancing Canadian foreign policy and economic interests in a world of risks, challenges and new opportunities.

Finally, we are confident that the priorities we have set for the department are sound and that they will enhance Canada's role globally and promote Canada's interests to the benefit of Canadians.

The following pages of this report provide evidence of this contribution. Readers are invited to consult the department's website (http://www.international.gc.ca/) for additional information on international developments and the department's activities.

1.2 Deputy Ministers' Management Representation Statement

Marie-Lucie Morin Deputy Minister for International Trade

V. Peter Harder Deputy Minister of Foreign Affairs

We submit for tabling in Parliament the 2007-2008 Report on Plans and Priorities (RPP) 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 2007-2008 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 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 planned spending numbers from the Treasury Board Secretariat.

___________________________________ Marie-Lucie Morin Deputy Minister for International Trade

________________________________ V. Peter Harder Deputy Minister of Foreign Affairs

1.3 What We Do: Our Strategic Outcomes and Activities

1.3.1 Raison d'être

The Department of Foreign Affairs and International Trade (DFAIT) manages Canada's political, economic and cultural relations with other nations on a bilateral basis as well as through the international organizations to which Canada belongs. These include the World Trade Organization, the United Nations, the G8, the Commonwealth, La Francophonie, the Organization of American States, the Organization for Economic Cooperation and Development and the North Atlantic Treaty Organisation.

The department helps Canadian companies succeed internationally while promoting Canada as a dynamic place in which to do business, and negotiating and administering trade agreements.

The department provides an assertive foreign policy that pursues Canadian interests, projects Canadian values and culture worldwide and protects Canada's security. It supplies business (trade and investment), passport and other services to Canadians travelling, working or doing business abroad. And it supports the international activities of federal, provincial and territorial partners at Canada's missions around the world.

1.3.2 Our Strategic Outcomes¹

In accordance with Treasury Board Secretariat requirements, DFAIT, like other Government of Canada departments, agencies and Crown corporations, has a Program Activity Architecture that is approved by Treasury Board and sets out the key strategic outcomes on which the programs and activities of the department are focused.

The department's four strategic outcomes, as approved by Treasury Board on an interim basis for this 2007-2008 RPP, are:

• Canada's Interests Are Advanced 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 also pursues the country's global agenda from a government-wide perspective, analyzes national and international trends and developments, and interprets the world for Canadians.
  
  To advance Canada's international commercial interests, the department coordinates implementation of commercial strategies, undertakes consultations with partners on trade policy and ensures integration of those policies across the federal government as well as with other levels of government.
  
  This strategic outcome recognizes the department as the government's centre of expertise in leading the formulation and coordination of Canada's international policies and promotion of the international dimension of Canada's domestic interests, as well as advancing them on a bilateral and multilateral basis. Principal support for this strategic outcome comes from political/economic officers of the Foreign Service and five program activities: Strategic Policy and Planning, International Security, Global Issues, Bilateral Relations, and Protocol.

• Canada's Commercial Interests Are Advanced Internationally: The department collaborates extensively with partners inside and outside government to foster coherence of Canada's commercial policies and programs in order to enhance the prosperity of Canadians. Trade commissioners support this outcome, and related program activities include Trade Policy and Negotiations, World Markets/Commercial Relations, International Business Development, and Promotion of Foreign Direct Investment and Science & Technology Cooperation.

• Government of Canada Is Served Abroad: The department manages Canada's missions abroad, delivering cost-effective and efficient services and infrastructure to enable Canada's international operations abroad. Management/consular officers of the Foreign Service support this strategic outcome, and two program activities contribute to it: Common Services and Infrastructure (support from headquarters and missions abroad).

• Canadians Are Served Abroad: The department provides Canadians with effective assistance, guidance, services and advice related to travel documents and consular needs. Management/consular officers of the Foreign Service support this strategic outcome, and three program activities contribute to it: Consular Affairs, Passport Canada (revolving fund) and Passport Canada (appropriated funds).

The department pursues its strategic outcomes through a number of program activities, which are identified above and described in Section II.

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¹Since the 2006 reintegration of its foreign affairs and trade components, the department has prepared an interim Program Activity Architecture (PAA) for 2007-2008, at Treasury Board's (TB) request, to reflect this change. This interim PAA combines the strategic outcomes and program activities from the PAAs of the previously separate Foreign Affairs Canada and International Trade Canada. As a result, the interim PAA for the reintegrated department contains four strategic outcomes (three related to foreign affairs and one pertaining to trade) and 14 program activities. The TB approved wording for these strategic outcomes can be found at the beginning of Section II.

1.4 Our Strategic Priorities for 2007-2008

Like all departments exercising results-based management, DFAIT organizes and carries out program activities to achieve its strategic outcomes. However, these activities need to be aligned with Government of Canada priorities, as well as be recalibrated in the light of international developments and circumstances. That is why the strategic priorities are important. They guide the department in emphasizing certain program activities and refocusing others.

Each year, DFAIT senior management reviews the departmental strategic priorities to ensure that they are aligned with Government of Canada priorities, as expressed in a number of key documents. This year these include, for example, the April 2006 Speech from the Throne, which noted the government's intention to strengthen "our role in the world" by:

• building "stronger multilateral and bilateral relationships, starting with Canada's relationship with the United States, our best friend and largest trading partner"

• working "cooperatively with our friends and allies, and constructively with the international community to advance common values and interests"

• supporting "Canada's core values of freedom, democracy, the rule of law and human rights around the world"

• supporting "a more robust diplomatic role for Canada, a stronger military and a more effective use of Canadian aid dollars"

• striving to "defend our national interests, combat global terrorism and help the Afghan people make a new start as a free, democratic and peaceful country" and

• working "with our friends and allies around the world to promote democracy, human rights and freer trade."

The department also aligns with the Government of Canada's strategic outcomes and program activities, as identified in Canada's Performance, an annual report to Parliament on the federal government's performance prepared by Treasury Board of Canada Secretariat. Under the heading "Canada's Place in the World," it lists as outcomes: a strong and mutually beneficial North American partnership; a prosperous Canada through global commerce; a safe and secure world through international cooperation; and global poverty reduction through sustainable development. A table showing how the department's four strategic outcomes and related program activities align with these government-wide outcome areas can be found in Section III (table 15). In addition, a global commerce strategy was referred to in the Government's economic blueprint, Advantage Canada. The department is the lead on the following horizontal initiatives: the United States Enhanced Representation Initiative (ERI) and the Global Peace and Security Fund (GPSF). Summary Information on these initiatives can be found in Section III, table 12.

STRATEGIC PRIORITIES 2007-2008	STATUS
1. A safer, more secure and prosperous Canada within a strengthened North American partnership	Ongoing Policy Priority
2. Greater economic competitiveness for Canada through enhanced commercial engagement, secure market access and targeted support for Canadian business	Ongoing Policy Priority
3. Greater international support for freedom and security, democracy, rule of law, human rights and environmental stewardship	Ongoing Policy Priority
4. Accountable and consistent use of the multilateral system to deliver results on global issues of concern to Canadians	Ongoing Policy Priority
5. Strengthened services to Canadians, including consular, passport and global commercial activities	Ongoing Management Priority
6. Better alignment of departmental resources (human, financial, physical and technological) in support of international policy objectives and program delivery both at home and abroad	New Priority

1.4.1 Summary of Program Activities by Strategic Outcome

In setting its six strategic priorities, the department has laid a logical, achievable and specific course for Canadian foreign and trade policy, as follows:

• The department's first priority confirms that Canada's geopolitical base is in North America and that greater and smarter collaboration with the United States and Mexico is essential to further enhance the continent's security and prosperity.

• The next two priorities further underscore the link between security and prosperity. Recognizing the importance of international commerce to Canada's economy, the department's second priority focuses on supporting the country's entrepreneurs in accessing and succeeding in fiercely competitive global markets.

• Economic prosperity requires political stability and security. That is why the department's third priority reconfirms Canada's long-standing commitment to promoting freedom, democracy, the rule of law and human rights worldwide, and seeks to build on the country's solid track record on these issues. It also recognizes the Government of Canada's intention to act more assertively in environmental stewardship, an issue of growing global concern.

• As a small country, Canada's participation in major multilateral organizations is key to its efforts to exert influence on the world stage and provide input on global issues of concern to Canadians. This is the focus of the department's fourth priority.

• Canada has always been an outward-looking nation. To enable and facilitate Canadian participation in world affairs and global markets is the purpose of the fifth priority.

• The department's ability to deliver on the first five priorities depends heavily on its ability to allocate its resources in a way that maximizes its ability to deliver results. Therefore, the sixth priority is aimed at making departmental operations as effective and efficient as possible in order to help create a more influential role for Canada in global affairs.

1.4.2 Summary of Program Activities by Strategic Priority

What follows is an overview of some of the main program activities the department plans to undertake in the forthcoming year. These are grouped by strategic priority. Further description and details of these planned activities can be found in Section II of this report.

Priority 1: A safer, more secure and prosperous Canada within a strengthened North American partnership:

An issue at the centre of continental safety and prosperity is border security in the post-9/11 world. The department will lead discussions with the Department of National Defence, Privy Council Office and other federal partners not only on Canada's evolving bilateral defence and security relationship with the United States but also on government-wide coordination of Canada's role in Afghanistan.

Working with the United States and federal partners, the department will address border security by developing a government-wide strategy for key files such as the Western Hemisphere Travel Initiative (http://cbsa.gc.ca/agency/whti-ivho/what-quoi-e.html), while continuing to work on related issues such as emergency preparedness and plans to deal with possible health pandemics.

Outside of North America, Canada will continue to collaborate with the United States on global security issues of shared interest, including stabilization and reconstruction in Afghanistan and Haiti.

Non-proliferation of weapons of mass destruction (WMD) and counterterrorism are critically important to global security. The department will contribute to international efforts to reduce WMD by further implementing the G8 Global Partnership Program (http://geo.international.gc.ca/cip-pic/library/globalpartnership-en.asp), engaging bilateral and multilateral partners to develop effective responses to threats of proliferation by Iran and North Korea, working to strengthen related groups and instruments such as the International Atomic Energy Agency and the Non-Proliferation Treaty (http://www.international.gc.ca/arms/intro-nuclear-treaty-en.asp), and working with international partners to advance Canadian policies on export controls of conventional weapons, WMD and related material.

To further combat terrorism, the department will lead efforts to implement UN conventions and protocols on transnational organized crime and corruption, promote implementation of related standards in the G8 Roma/Lyon (anti-terrorism/crime) Group, and deliver the Counter-Terrorism Capacity Building Program (http://www.international.gc.ca/internationalcrime/CTCB-en.asp). To counter health and environmental risks, the department will collaborate with other governments on strategies to deal with issues like avian flu in Asia Pacific.

In our knowledge-based economy, there can be no overstating the importance of business intelligence and information. Over the next year, the department will undertake more targeted outreach and communications with Canadian business to increase awareness and understanding of Canada's relationship with the United States and Mexico. This will focus on the need to leverage the advantages provided to Canada by NAFTA and the Security and Prosperity Partnership of North America (www.spp-psp.gc.ca). The department will also engage more assertively with partners in the United States and Mexico to raise Canada's profile and further Canadian interests. This will include expansion of the department's international youth exchanges with Canada's two North American neighbours.

The department will also exercise government-wide leadership in developing and implementing Canada's international political and economic agenda by providing strategic policy advice and research on issues like energy, religion and geopolitics, and democracy promotion as well as by encouraging policy consultation with other governments and other levels of government.

Priority 2: Greater economic competitiveness for Canada through enhanced commercial engagement, secure market access and targeted support for Canadian business:

There is a clear recognition in Canada's public and private sectors that immediate and decisive action must be taken if Canada is to improve its global competitiveness, given the emergence of strong new competitors that are eroding Canada's share of North American and other key markets. That is the impetus behind the department's global commerce strategy, elements of which will be delivered over the next year in order to increase the success of Canadian business internationally and raise levels of foreign investment in Canada. This strategy, which is an integral component of Advantage Canada and the government's overall economic agenda, will integrate departmental program activities and policy objectives related to (a) opening new markets, (b) promoting foreign investment and innovation, and (c) strengthening services to business, in collaboration with key partner departments and agencies.

a) To ensure open access to key markets for Canadian business, the department will work to conclude free trade agreements with countries including the Central American Four (El Salvador, Guatemala, Honduras and Nicaragua), Singapore and South Korea. It will initiate negotiations of similar agreements with the Andean countries (Bolivia, Colombia, Ecuador and Peru), the Dominican Republic and CARICOM (the 14 countries of the Caribbean Community collectively).

These will be part of a more strategic agenda of trade negotiations that will also include Foreign Investment Protection and Promotion Agreements (with China and India) and air services agreements. At the same time, the department will work with partners in multilateral organizations like the WTO (World Trade Organization), APEC (Asia-Pacific Economic Cooperation forum) and the OECD (Organization for Economic Cooperation and Development) on trade liberalization and facilitation.

b) Boosting Canada's capacity to attract new investment and reinvestment is essential for the country's economic future and competitive participation in the global economy. The department will collaborate with federal partners on a policy framework as well as related guidelines and tools to facilitate more foreign investment in Canada. It will also raise Canada's profile as an investment destination through its market research, sector-specific marketing and participation in signature events.

Furthermore, to enhance the ability of Canadian companies to move foreign employees, buyers and partners quickly across borders into Canada and to increase their involvement in global value chains, the department will work with federal partners to ensure that Canada's visa and border policies complement the government's international business development and investment promotion activities.

c) Recognizing the role of new ideas and technologies in today's knowledge-based economy, the department will implement a global innovation network, involving both public- and private-sector interests.

Finally, given the importance of Canada's Asia-Pacific Gateway and Corridor to North American trade and competitiveness, the department will actively promote this Government of Canada project, beginning at the Olympic Games in Beijing (2008) and Vancouver (2010).

The key elements of a global commerce strategy will be integrated into the North American Platform to enhance Canada's competitive position in our top priority market. We will utilize our network of missions to identify business opportunities, to attract international investment in key knowledge-intensive sectors and to strengthen innovation links to fuel Canadian research excellence. Our missions will also reinforce their advocacy efforts to advance Canadian interests in the United States and Mexico and to prevent or remove legislative, regulatory and other barriers.

Priority 3: Greater international support for freedom and security, democracy, rule of law, human rights and environmental stewardship:

Canada has demonstrated internationally recognized leadership in promoting democracy, the rule of law and human rights around the world. To ensure government-wide cohesion on these issues, the department will develop a proactive human rights strategy, including a policy framework for Canadian diplomacy in specific countries and multilateral groups, particularly the new UN Human Rights Council. The department will also develop a government-wide democracy promotion strategy and advance a humanitarian affairs agenda, focusing on protection of civilians in armed conflict.

The department will continue this work on a number of key files over the next year. It will maintain its efforts, with NATO partners, to support security-sector reform and strengthen government institutions in Afghanistan. It will also undertake intensified diplomatic efforts to resolve conflicts in that country as well as in Haiti and Sudan.

Over the next year, the department will continue engagement with international partners to address the Iran nuclear issue; provide support to move the Palestinian government toward peace based on non-violence, recognition of Israel and acceptance of previous agreements; and support increased aid programming to strengthen Iraqi governance and human rights. The department will also continue to support Canadian Heritage in advancing the UNESCO (United Nations Educational, Scientific and Cultural Organization) Convention on the Protection and Promotion of the Diversity of Cultural Expressions (http://geo.international.gc.ca/canada_un/paris/positions/keyissues-en.asp).

To maximize the effectiveness of Canada's foreign aid in advancing the government's foreign policy, development and security agendas, the department will continue to strengthen the coordination, prioritization and accountability of the International Assistance Envelope with federal partners.

The department will also take decisive action on corporate social responsibility and environmental stewardship.

Priority 4: Accountable and consistent use of the multilateral system to deliver results on global issues of concern to Canadians:

Canada's membership in key international groups provides a significant platform from which this country can exert influence in global affairs and advance Canadian interests and values. The department will continue to coordinate Canadian positions on G8 political and international security issues.

The department will prepare for Canadian participation in key conferences, including the G8 Summit (Heiligendam, Germany, in June), the APEC Summit (Sydney, Australia, in September), the Commonwealth Heads of Government Meeting (Kampala, Uganda, in November) and the Iraq Compact Conference (http://geo.international.gc.ca/canada_un/ottawa/whats_new/default-en.asp?id=7571&content_type=2). The department will also begin preparations for the 2008 Francophonie Summit, which Canada will host in Quebec City.

The ability of key international organizations to operate efficiently and respond effectively to world issues remains a global concern that continues to generate calls for their reform. To this end, the department will advocate adoption of modern management and budgetary structures at various multilateral groups such as the UN and NATO.

Priority 5: Strengthened services to Canadians, including consular, passport and global commercial activities:

As a key player in the Government of Canada's Government On-Line Program, this department shares in international recognition of Canada's outstanding achievements in e-government (see http://www.ged-gol.gc.ca/rpt2006/rpt/rpt10-eng.asp). Given the diverse mandate and global reach of this department, online communications are an essential tool of its 24/7operations. The department will continue to refine its comprehensive, user-friendly website (http://www.international.gc.ca/menu-en.asp). Improvements over the next year will include the launch of a new online marketing campaign for the Trade Commissioner Service (TCS) and the introduction of software to allow Canadians abroad to update their registration online. The department will strive to integrate our electronic Client Relationship Management system (TRIO) and our client service portal (VTC) with the Government Online Trade Services (GOTS) to provide Canadian firms with the world's most effective and seamless government web-based services. We will also advance and fully deploy these online business tools to improve client service delivery and more effectively measure our performance.

In 2007-2008, service improvements will not be limited to those available online For instance, the department will increase the assignment of career Foreign Service officers in regional offices and plans to open a TCS representation centre in Quebec City; connect domestic clients and partners with global innovation networks to advance Canadian research excellence and technology acquisition, and strengthen commercialization results around the world; provide mentoring and market support to Canadian entrepreneurs new to foreign markets; seek to enhance trade finance and risk management tools for high-risk markets; conduct research and policy advocacy on investment issues with federal and provincial partners; and raise Canada's international profile as a top location for foreign investment. The department will also launch a new marketing campaign for TCS, while raising the profile of government services and business opportunities in CanadExport, its widely distributed bimonthly newsletter.

New directions in international commerce will establish new approaches for Trade Commissioners to meet the evolving and increasingly complex needs of Canadian firms. We will reorient our services to give Canadian firms a competitive edge in global markets, whether they are attempting to export goods or services, penetrate global value chains, establish operations abroad, develop strategic partnerships or connect with global innovation networks.

Further improvements to consular services will include work with federal partners to improve crisis readiness at missions abroad.

Passport services will be improved through introduction of a pilot project to give low-risk applicants a simpler means of renewing their passports. Passport Canada will also coordinate establishment of the National Routing System with federal, provincial and territorial partners to enhance the ability of governments to authenticate identification of applicants. To further tighten security, Passport Canada will hire new regional security officers and implement heightened facial recognition procedures, while increasing protection of staff, critical assets and materials.

Priority 6: Better alignment of departmental resources (human, financial, physical and technological) in support of international policy objectives and program delivery both at home and abroad:

Work associated with this priority represents ongoing improvement to the department's enabling machinery, which must run as effectively and efficiently as possible for the organization to deliver results on its first five priorities. To this end, the department will consolidate and strengthen its organizational structure as well as develop a new Program Activity Architecture and corresponding performance-monitoring framework to reflect fully the reintegration of its foreign policy and trade components. This will enable the department to have an integrated management and resources structure to guide planning and resource allocation, which in turn will generate better information for its annual planning and performance reports.

In keeping with results-based management, transparency and accountability, the department will develop a more comprehensive audit and evaluation plan and make efforts to improve its record in responding to Access to Information requests.

This department places the highest value on its employees and will continue to offer comprehensive training to further develop their skills sets, while also providing support to managers. Other key human resources activities for the next year will include staffing strategies for key occupational groups and improvement of selection criteria and management of locally engaged staff at missions abroad.

To further protect employees and assets, the department will continue to enhance security at high-risk missions abroad. To ensure compliance with the Federal Accountability Act, it will strengthen management controls, improve financial reporting and analysis, and better define financial and corporate risk. Modern comptrollership will also continue to be implemented through measures such as a results-based strategy for the department's branches.

In terms of its operationally critical physical assets, the department will implement a major upgrade of Canada's properties abroad and continue development of modular technology to ensure its technical infrastructure remains as robust, secure and reliable as possible.

Finally, in collaboration with federal partners, it will create a departmental strategy for outreach programs to ensure regional balance as well as coherent and consistent messaging to target audiences.

1.4.3 Our Planning Context

The complexity and volatility of the international environment in which the department operates pose challenges and risks—both strategic and operational—that must be identified and considered in its annual planning cycle.

The House of Commons Standing Committee on Foreign Affairs and International Development and the Senate Committee on Foreign Affairs and International Trade make significant contributions to the work of the department by studying a wide range of relevant issues each year. Their work provides valuable input to the department through its consultations with parliamentarians and other stakeholders as well as through its analysis and recommendations.

1.4.4 Our Internal Challenges

The principal internal challenges to the department include:

• the necessity for further security enhancements at headquarters and missions abroad;

• the fact that some 24 percent of the department's 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 the operations of the department but also to many of its federal partners;

• the need to address issues related to the department's aging workforce and the shortage of qualified employees in key occupational groups; and

• the need to strengthen the department's overall policy-making and project management capacity, especially on issues involving other federal government departments or provincial and territorial partners.

1.4.5 Our External Challenges

The main external challenges are:

• the rapid pace of globalization, reflected in the trend toward global networks of finance, design, production and distribution;

• the considerable influence of the United States in world affairs, as well as the importance of Canada's economic relationship with that country;

• Canada's declining market share in the United States, as China is now overtaking Canada as the largest foreign participant in the American market, and increasing competition as well in other key markets worldwide;

• ongoing threats related to terrorism, the transnational spread of infectious disease, climate change and regional conflicts, particularly those in global "hot spots";

• the international debate over the legitimacy and effectiveness of multilateral organizations and the call for emerging powers to be more fully represented in them;

• the rise of major new players internationally, notably India and China;

• stalled World Trade Organization (WTO) 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;

• 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; and

• the continuing fierce global competition for foreign direct investment.

1.4.6 The Risks We Face

The department identifies and closely monitors risks associated with its mandate on an ongoing basis. This work is based on the Treasury Board Secretariat framework (see http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/RiskManagement/rmf-cgr01-1-eng.asp#An%20Integrated%20Risk), which helps departments identify, manage and communicate risk from an organization-wide perspective. Risk is an integral element of the department's business planning and human resources planning. Currently, the department has in place risk mitigation strategies for certain programs and overall operations. As its policy and program capacity is strengthened, the department continues to make progress in improving its assessment, management and communication of risks.

The main strategic risks for the department are as follows:

• Canada faces ongoing security risks at home and abroad as well as threats related to international pandemics, the environment, international crime and terrorism.

• Because Canada is one of the most trade-dependent countries in the industrial world, a mediocre trade and competitive performance will lead to serious economic problems. Other elements critical to Canada's global competitiveness are integrated supply chains, new technologies and a strong North American economic platform.

• Canada's prosperity could be adversely affected if the threat of terrorism impedes trade with the United States or if failure to produce results in the WTO talks leads to an escalation of trade disputes.

• Advancement of Canada's interests could be negatively affected by increasing unilateralism worldwide as well as by the ineffectiveness of multilateral institutions and tools in addressing global problems. Furthermore, the growth of regional powers worldwide could weaken the multilateral system in favour of new regional arrangements.

• The federal government faces increased pressure to protect certain industries from the impact of international trade and to assist others in the event of an economic slowdown, while remaining committed to greater liberalization of trade and investment rules.

1.4.7 The Opportunities Available to Us

• Canada's unique range of membership in a very diverse group of key multilateral organizations provides a particular opportunity to advance its interests and values across a broad spectrum of issues and with many members of the international community.

• Canada's many advantages, including its knowledge-based, technologically advanced economy and workforce, make it well positioned to pursue international commercial opportunities.

• 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.

Clearly, the mix of external challenges and opportunities cannot be forecast with precision. Contingencies arise against which the department must react; and priorities may have to be adjusted as a result. The real world intrudes on the best of forecasting and priority setting. Adapting to contingencies and responding to challenges in a dynamic environment is therefore an important aspect of what we do.

1.4.8 Our Story at a Glance: The Department's Logic Model

Another way of depicting the relationship among the department's strategic outcomes, program activities and priorities is by means of a logic model. The following graph identifies the strategic outcomes (short, medium and longer term), the way in which program activities support them, the six priorities (which indicate where the emphases are placed in carrying out program activities), and how financial and human resources are correspondingly allocated.

Department of Foreign Affairs and International Trade Logic Model

1.5 Who We Are and Where We Are: Canada's Foreign Service

The department's Foreign Service employees fall into three categories: political/economic officers, management/consular officers and trade commissioners. All are rotational employees, meaning that they relocate regularly between headquarters and Canada's missions abroad. Trade commissioners also serve at regional offices across Canada.

Political/economic officers focus on shaping Canada's policies on issues such as international human rights, the environment, disarmament and the Middle East Peace Process. They work extensively with their international counterparts. Non-rotational officers also carry out some of the department's foreign policy work, mainly at headquarters.

Management/consular officers provide help and advise Canadians outside the country in dealing with issues such as incarceration, death, child abduction, and evacuation in the event of a political emergency or natural disaster. They also coordinate the services, such as procurement and human resources management, provided by the department to partners at missions abroad. At headquarters, management/consular officers exercise budgetary and human resources authority.

Trade commissioners make up the Canadian Trade Commissioner Service (TCS), a worldwide network of professionals with preferred access to contacts in international business. Trade commissioners promote Canadian economic interests in the global marketplace. Main clients of TCS are the Canadian business community for trade and outward investment, and the provinces and municipalities for inward investment. Trade commissioners also deal with trade policy issues and complement the work of policy specialists at Canada's missions abroad—such as those in Geneva and Brussels, for example, the cities in which the World Trade Organization and World Customs Organization are respectively located.

1.5.1 Our “Footprint”: Canada's Representation Abroad

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.

Our missions abroad represent the Government of Canada and advance Canadian interests (federal, provincial, territorial and municipal) in designated countries, areas or multilateral organizations by performing various functions. These include building and maintaining relationships inside and outside government to raise Canada's profile and provide the basis for successful advocacy of specific Canadian objectives; managing the Government of Canada's international business development; providing Canadians abroad with consular and passport services; and supplying infrastructure and related services to partners outside Canada.

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.

1.5.2 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 non-governmental organizations and citizens' groups;
• the Canadian academic community;
• foreign cultural and academic communities with an interest in Canada;
• Canadian and international media;
• representatives of foreign governments, companies and international institutions; and
• organizations involved in science, technology and innovation.

Parliamentarians, partners at missions abroad and Canadians—particularly those with an interest in foreign policy, global business, international travel or study abroad—are among the individuals and entities that are served by Canadian missions abroad.

1.5.3 Foreign Missions in Canada

The department also serves the foreign diplomatic community accredited to Canada (173 foreign diplomatic missions—126 in Ottawa and 47 in New York City or Washington, D.C.; 525 foreign consular posts; and nearly 20 international organizations and other offices). At present, there are approximately 8,100 foreign representatives and accredited members of their families in Canada.

1.6 Accountability: Our Ministers, Senior Management and Reporting Relationships

The Minister of Foreign Affairs, Peter MacKay, and the Minister for International Trade, David Emerson, are accountable to Parliament for management and oversight of the department. Mr. MacKay is supported by Josée Verner, Minister of International Cooperation, La Francophonie and Official Languages, who is responsible for the Canadian International Development Agency. Both ministers are assisted by Helena Guergis, the Secretary of State (Foreign Affairs and International Trade).

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.

Reporting to the Deputy Minister of Foreign Affairs are the Associate Deputy Minister; the Assistant Deputy Ministers for International Security, Global Issues and Bilateral Relations; and Passport Canada. Those reporting to the Deputy Minister for Trade are the Senior Adviser for International Trade; the Assistant Deputy Ministers of Global Operations, of Investment, Innovation and Sectors, and of Trade Policy and Negotiations. The Chief Air Negotiator reports jointly to the Deputy Ministers of International Trade and Transport.

The Assistant Deputy Ministers for North America, Strategic Policy and Planning, Corporate Services, and Human Resources report to both Deputy Ministers. The Legal Adviser, the Protocol Office, and the Directors General of Communications and Executive Services also report to both of them.

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.

* These branches coordinate the work of the missions abroad

^*The Portfolio includes the Canadian International Development Agency (CIDA), the International Development Research Centre (IDRC), Export Development Canada (EDC), the Canadian Commercial Corporation (CCC), the North American Free Trade Agreement (NAFTA) Secretariat (Canadian Section), Rights & Democracy.

1.6.1 Our Formal Decision-Making Committees

The following five committees are the most significant for the department in terms of governance, accountability, corporate decision making and priority setting:

• Executive Committee, chaired by the Deputy Ministers, covers all major policy, program and management issues facing the department. Meeting regularly, its membership includes the Deputy Ministers, Associate Deputy Minister, their Executive Assistants, all ADMs, the Legal Adviser and the Directors General (DGs) of Communications and Executive Services.

• Chaired by the Deputy Ministers, Policy and Management Committees meet biweekly. Management Committee makes decisions on financial and program management, while Policy Committee reviews all medium- and longer-term policy initiatives and crafts priorities that guide strategic planning and resource alignment. Membership in both committees consists of all Assistant Deputy Ministers, the Chief Trade Negotiators, the Legal Adviser, the Director General of Strategic Policy, Resources and Coordination, and the Directors General of Communications and Executive Services.

• The Human Resources Advisory Committee meets monthly to advise on human resources issues. Chaired by the Assistant Deputy Minister for Human Resources, it is made up of Directors General and selected heads of mission.

• The Audit Committee is chaired by the Deputy Minister of Foreign Affairs, with the Deputy Minister for International Trade as vice-chair. It meets at least four times a year. Membership includes three Assistant Deputy Ministers and the Chief Audit Executive of the Office of the Inspector General. Others from inside and outside the department attend meetings as requested.

Common services supplied by the department to partners at missions abroad are overseen by three committees. The ADM Committee for Common Services Abroad is responsible for governance and strategic direction of these services. The interdepartmental DG Committee for Common Services Abroad decides on general principles and application of the Interdepartmental Memorandum of Understanding (MOU) on Operations and Support at Missions Abroad. The director-level Interdepartmental Working Group for Common Services Abroad decides on day-to-day operational issues and serves as the first level of dispute resolution under the MOU. In addition, the Committee on Representation Abroad (CORA) discusses proposed position changes at missions abroad and makes recommendations to Executive Committee or Management Committee.

By using formal and informal means of decision making, the department increases its organizational agility in addressing unforeseen and/or rapidly changing issues and events such as the evacuation of Canadians from Lebanon in the summer of 2006.

1.6.2 Accountability for Program Activities

The following table identifies the senior manager primarily responsible for each of the department's program activities.

Program Activity	Primary Accountability
Strategic Policy and Planning	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
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

1.7 Our Annual Planning Cycle and Performance Monitoring Tools

Annual planning begins in summer when the department's formal decision-making committees identify strategic priorities that comply with—and complement—those of the government as a whole. In late fall/early winter, the department prepares annual business plans (i.e. branch and bureau plans as well as country-specific and multilateral strategies). As part of its business planning, expected outcomes from branch, bureau and mission activities are set out and specific performance indicators corresponding to each expected outcome are identified.

The country and multilateral strategies recognize the all-of-government role played by missions abroad as well as the need to make Canada's activities therein more cohesive. They provide heads of mission with clear guidance and resource allocations. Missions also prepare specific business plans related to the department's important commercial program.

The department's human resources planning—critical to an organization as large and diverse as DFAIT—is closely linked to its business planning. The department collects highly specific information related to human resources through its annual business planning process. This information is used to guide recruitment in response to clearly identified needs.

Once approved by senior managers, the business plans are used to guide preparation of mandate letters and performance management agreements for heads of mission and senior executives. Thereafter, managers throughout the department develop performance agreements for all staff, in accordance with the Performance Management Program.

The department uses its approved business plans as the basic material for its Report on Plans and Priorities. Performance information related to the identified plans is contained in the corresponding Departmental Performance Report.

1.7.1 Our Performance Monitoring Tools

In assessing its performance, the department makes use of a number of specific tools.

First, the Management Accountability Framework (MAF) identifies 10 expectations for Public Service managers on issues such as governance, strategic direction and citizen-focused service. The MAF is aligned with the government-wide planning and reporting cycle. Through Treasury Board Secretariat's annual MAF assessment, this department works closely with central agencies to identify its management strengths and weaknesses, using MAF indicators (http://www.tbs-sct.gc.ca/maf-crg/indicators-indicateurs/indicators-indicateurs-eng.asp). This process provides invaluable feedback for the department to use in strengthening its performance and providing greater results for Canadians.

Second, the department's Strategic Planning Framework, which is based on the business plans of the branches, bureaus and missions, specifies broad priorities and one- to three-year outcomes with associated performance indicators. It is reviewed to incorporate progress achieved and to reflect changing circumstances and priorities. 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.

Performance indicators, which link with the department's strategic priorities, are discussed in more detail in Section II of this report. The department uses both qualitative and quantitative indicators, given the broad scope of its mandate and activities.

A detailed assessment of the department's performance in implementing the plans and priorities outlined in this report will be available in its 2007-2008 Departmental Performance Report.

1.8 Our Planned Spending

1.8.1 Financial Resource Utilization

Financial Resources ($ millions)
Year	2007-2008	2008-2009	2009-2010
Total Planned Spending	2,832.7	2,787.2	2,727.4

The budget of the department is allocated through Main and Supplementary Estimates approved by Parliament. Details on total planned spending for each of the department's program activities can be found in Section II of this report.

1.8.2 Human Resource Utilization

The department remains committed to building a bilingual, culturally diverse, gender-balanced and innovative workforce that more fully reflects Canadian society as a whole. The department is also working to address the gap in resources for a number of its key occupational groups.

Human Resources (FTEs)
Year	2007-2008	2008-2009	2009-2010
FTEs	11,371	11,405	11,430

FTEs 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 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 of this report.

 

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