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As a trading nation, Canada's continued prosperity depends on the secure, predictable and enhanced market access provided by trade agreements such as the North American Free Trade Agreement (NAFTA). The NAFTA has made all three partners more competitive. It allows goods producers and service providers to better realize their potential by operating a larger and more integrated market. Since NAFTA came into effect in 1994, trade between the NAFTA partners has tripled reaching $963 billion in 2007. For Canada, nearly seventy percent of our merchandise trade was with our NAFTA partners in 2007.
With the challenges in today’s global economy, it is important that we continue to benefit from our relationship with our NAFTA partners. We are committed to ensuring that Canada’s economy remains strong and prosperous. Therefore, we must continue building on NAFTA’s success by ensuring that the Agreement remains relevant to today’s economic reality. As such, we are committed to working with the United States and Mexico to continue building on this record of success through finding ways to further increase North American trade and investment to foster competitiveness and prosperity in all three economies so that North America is well positioned to compete in today’s changing trade environment.
The Canadian Section of the NAFTA Secretariat has a role to play in strengthening Canada's international trade performance by maintaining a highly efficient, impartial and rules-based international trade dispute settlement process. This process benefits exporters and investors as they are more likely to engage in international commerce when the trading system is more secure and predictable and they have access to impartial dispute settlement mechanism and services, should disagreements arise.
In 2009-2010, the NAFTA Secretariat, Canadian Section, will continue to improve administrative support to panels and committees and foster better collaboration with the other national sections in joint policy and systems development. To reach these goals, it will continue to strengthen accountability and the management and development of its human resources by conducting a review to determine that resources are utilized efficiently.
The Honourable Stockwell Day
Minister of International Trade
The NAFTA Secretariat’s corporate purpose is to maintain a high level, impartial and independent service in the administration of the dispute settlement provisions of the North American Free Trade Agreement, in order to help preserve the benefits of free trade for all stakeholders. |
The NAFTA Secretariat, Canadian Section is an independent agency created in 1994 under the North American Free Trade Agreement Implementation Act. Its principle responsibility is to administer the dispute settlement provisions in NAFTA Chapters 19 and 20. It also supports the ministerial-level Free Trade Commission and participates in the Chapter 19 Working Group. The Canadian Section’s mandate was expanded in 1997 and again in 2002 to include the administration of dispute settlement provisions in Canada’s Free Trade Agreements with Israel, Chile and Costa Rica.
The Canadian Section reports to Parliament through the Minister of International Trade.
Additional information on the background and operations of the NAFTA Secretariat may be found at the Secretariat’s Internet sites: www.nafta-sec-alena.org and www.nafta-alena.gc.ca
A highly efficient, impartial and rules-based international trade dispute resolution process that benefits Canadian exporters to NAFTA countries, as well as NAFTA country exporters doing business in Canada.
The following chart illustrates the NAFTA Secretariat, Canadian Section’s two program activities that contribute to the Agency’s Strategic Outcome.
Program Activity Architecture
Strategic Outcome |
A highly efficient, impartial and rules-based international trade dispute resolution process that benefits Canadian exporters to NAFTA countries, as well as NAFTA country exporters doing business in Canada. |
|
---|---|---|
Program Activity |
Administration of International Trade Dispute Settlement Mechanisms |
Internal Services |
The two tables below show information on planned utilization of financial and human resources for the coming three-year period (see Section 2 for details):
2009-10 |
2010-11 |
2011-12 |
---|---|---|
3,015 |
3,015 |
3,015 |
2009-10 |
2010-11 |
2011-12 |
---|---|---|
12 FTEs |
12 FTEs |
12 FTEs |
The following table summarizes the Canadian Section’s strategic outcome and program activities including performance indicators, targets, expected results and planned spending.
Strategic Outcome A highly efficient, impartial and rules-based international trade dispute resolution process that benefits Canadian exporters to NAFTA countries, as well as NAFTA country exporters doing business in Canada. |
||||||
Performance Indicators |
Targets |
|||||
Perception of institutional independence and increased confidence by participants in integrity of the dispute settlement process. |
At least 80 % or more of clients are satisfied that the NAFTA Secretariat, Canadian Section, administers the dispute settlement provisions in a manner that ensures unbiased administrative processes, equity and fairness. |
|||||
Consistent and immediate availability of accurate, complete and relevant information to support panel proceedings. |
At least 80% or more of clients are satisfied with the information support provided to them. |
|||||
Quality of procedural advice and guidance provided to panelists and participants on dispute settlement procedures. |
At least 80% or more of clients are satisfied with the procedural advice and guidance provided to them. |
|||||
Extent of cooperation and joint undertakings with other national sections in the administration of panel proceedings |
Effective collaboration in the administration of trade disputes and harmonized administrative policies and maintenance of common website and registry information system. |
Program Activity:
|
Expected Results |
Forecast Spending ($ , 000) 2008-09 |
Planned Spending ($ , 000)
|
Alignment to Government of Canada Outcome Area |
||
---|---|---|---|---|---|---|
2009-10 |
2010-11 |
2011-12 |
||||
Administration of International Trade Dispute Settlement Mechanisms |
|
1,025 |
1,815
|
1,815
|
1,815
|
A Strong and Mutually Beneficial North American Partnership |
Internal Services |
|
700 |
1,200 |
1,200 |
1,200 |
Table 1 below shows how our priorities contribute to our single strategic outcome.
Table 1: Contribution of Priorities to Strategic Outcome
Departmental Priorities |
Type |
Links to Strategic Outcome |
Description |
---|---|---|---|
1. Support to panels and committees |
Ongoing |
SO 1 |
The major tasks are case management and administrative, technical and logistical support to panels and committees, including the administration of a court-like registry at a level comparable to other registries of superior courts of record in Canada. |
2. Collaboration with delivery partners in the administration of trade disputes |
Ongoing |
SO 1 |
The Canadian Section will continue its collaborative endeavour with the other national sections in joint policy and systems development as well as in the joint administration of dispute settlement panels. |
3. Management of corporate agenda |
Ongoing |
SO 1 |
To ensure continued effectiveness in its operations, the Canadian Section will build on its past initiatives to strengthen accountability and the management and development of its human resources. To this end, the Section is conducting a capacity review to ensure that resources within the organization are utilized to their maximum efficiency. Furthermore, the Section will continue its work to fully implement its new information management policy in line with the Treasury Board initiative (see Section 2.2.2 Program activity summary and Highlights). |
Corporate Risk Profile
The Canadian Section faces a number of on-going challenges in delivering its mandate:
In administering the NAFTA dispute settlement system, it is necessary to maintain effective working relationships with the U.S. and Mexican Sections of the Secretariat notwithstanding differing legal, administrative and cultural practices and traditions. This challenge is met through regular contacts and the development of strong cooperative relationships aimed at reaching consensus and finding common approaches to administrative and other matters.
The expenditure profile of the Canadian Section of the NAFTA Secretariat can vary from year-to-year and future spending trends are difficult to predict. This is because the costs associated with delivery of its program fluctuate with the number of dispute settlement cases that are filed. In 2009-2010, for example, it is expected that the case load will be smaller than in recent years.
The government is nevertheless required under NAFTA and Canadian legislation to maintain the dispute settlement system and be ready for new cases as they arise. This includes management of the dispute settlement case registry and NAFTA Secretariat web site, both of which are the responsibility of the Canadian Section on behalf of the Secretariat, as well as the provision of information to governments and the public on an on-going basis. The corporate expenses associated with the management of the agency itself are on-going.
Against this background, for 2009-10 fiscal year, the Canadian Section plans to spend $3.02 million to meet the expected results of its program activities and contribute to its strategic outcome. Its Operating Budget for 2007-2008 was $3.015 million, while the actual spending was $1.618 million. For 2008-2009, the projected spending is $1.725 million. As well, this level of spending trend will be remaining relatively stable during the next three planning periods.
The figure below shows the Canadian Section’s spending trends from 2006-07 to 2012-13 ($ thousands).
2009-2010 |
|||
Vote or Statutory Item |
Truncated Vote or Statutory Wording |
2008-2009 |
2009-2010 |
55 |
Program Expenditures |
2,814 |
2,827 |
(S) |
Contributions to employee benefit plans |
190 |
188 |
|
Total Planned Spending |
3,004 |
3,015 |