Section II Departmental Overview

A. Mandate, Roles and Responsibilities

The Department of Foreign Affairs and International Trade represents Canada to the world, and the world to Canada. Building on its rich legacy of successful diplomacy and mediation, the Department provides the vehicle for Canada's action on the international stage. More than ever before, these activities involve the participation of Canadians.

Mandate

On behalf of the Government of Canada, the Department conducts all diplomatic and consular relations with foreign governments, and represents Canada in international organizations. It participates in relevant international negotiations, furthering and protecting Canada's domestic interests and fostering the development of international law. It coordinates Canada's economic relations, promoting the expansion of international trade. In addition, it administers the foreign service, including the interdepartmental coordination of diplomatic relations and the operation of missions abroad.

The Department's mandate is set out in the Department of Foreign Affairs and International Trade Act, RSC 1985. Other key legislation affecting the Department is listed in Section IV.

Roles

The Department has four basic roles which flow from its mandate:

• to develop and coordinate the government's international policy;
  
  
• to advocate Canadian interests and values overseas;
  
  
• to provide assistance to Canadians, including trade, investment, passport and consular services; and
  
  
• to support other government departments (OGDs) and agencies abroad.

B. Objectives

In 1995, in response to a report from the Special Joint Committee reviewing Canadian foreign policy, the Government released a foreign policy statement: Canada in the World. In preparing its mission and strategic priorities, the Department has drawn primarily from Canada in the World. Its three priorities are:

• to promote prosperity and employment;
• to protect our security within a stable global framework; and
• to project Canadian values and culture.

In addition, as a fourth priority, the Department aims to provide high-quality services to Canadians.

C. Operating Environment

Canada's foreign policy, trade, defence and international development interests must be pursued in the more integrated and interdependent global context which has emerged at the end of the 20th century. The Department faces a more complex operating environment shaped by the dynamic between conventional and emerging issues affecting Canadians. Conventional issues such as nuclear weapons proliferation and regional conflicts threaten the global stability which is essential to our national security interests and our prosperity as a trading country. Emerging issues led by globalization, with its widespread acceleration of international economic and technological integration, present Canadians with major opportunities and challenges.

In this complex global context, the Department promotes Canada's foreign and trade policy interests through a flexible, balanced and cost-effective strategy of promoting a multilateral rules-based system. This strategy is conducted in an operating environment determined by several factors including: global integration and interdependence; public expectations and concerns; government commitments and international events; and the Year 2000 date issue.

Global Integration and Interdependence

Globalization is the most profound, dynamic and pervasive influence on Canada's engagement in the world. Global economic integration, deepening interdependence and rapid technological diffusion mean that Canada as a nation is affected more and more by events outside its borders. As a trading nation, Canada benefits from the increased world trade and economic growth resulting from globalization. These forces afford opportunities to enhance Canada's prosperity and contribute to jobs and economic growth for Canadians. They also provide opportunities for Canadian industries to transform through greater access to international sources of capital and other productive inputs thereby increasing their competitiveness.

Globalization also means, however, that Canada is more vulnerable to challenges emanating from beyond its borders. Rapid international capital flows have weakened financial and economic conditions in Japan and emerging economies in Asia and other regions. The spillover effects of the Asian crisis have destabilized international financial markets and affected exports from western Canada.

Security challenges have expanded with the threats posed by violent conflicts and widespread violations of human rights, to the security of both states and individual persons. Contemporary wars have become predominantly internal conflicts based on fundamental ethnic, religious or communal differences. They exact the heaviest toll on civilian populations and particularly on children, who are killed, forced to participate as soldiers or subjected to other abuses. Such conflicts have been exacerbated by the proliferation of small arms arising from the disposal of surplus stocks of Cold War rivals. Conflicts, poverty, human rights abuses and environmental degradation displace people within states and create large external migrations and refugee flows which destabilize adjacent regions and increase immigration pressures on countries like Canada.

Canada's membership in the UN Security Council will lead to increased demands for Canadian participation in efforts to protect the new global, regional and human security environment. Despite progress under international treaties, proliferation of weapons of mass destruction and missiles remains a threat heightened by concerns about nuclear testing by India and Pakistan, Iraq's capability to produce weapons of mass destruction and North Korea's record of nuclear weapon development and missile testing. The changing nature of conflicts means that they are more difficult to resolve, and require new approaches to mediate, establish and protect peaceful solutions. Peacekeeping operations are changing in response to more hostile environments, and requirements for longer duration and non-military expertise such as electoral observers, human rights monitors, and civilian police. Peace building requirements range from judicial training to media support.

Public Expectations and Concerns

Canadians want their country to remain fully engaged in promoting their interests in maintaining the peaceful and stable global environment on which Canada depends for its prosperity and security. Canada's reputation as a committed, active and credible member of the international community has led to the expectation that Canada will participate when needed.

Canadians are increasingly involved in helping to shape their country's foreign policy. Canadian contacts with other countries are growing as more Canadians travel abroad, develop new businesses in foreign countries and establish international partnerships and networks. This is complemented by the family ties maintained by Canada's diverse multicultural population with most countries of the world. The Department continues to build on these advantages by broadening and strengthening its outreach and consultations with Canadians.

The proliferation of non-traditional stakeholders, such as non-governmental organizations (NGOs), sub-national governments, industry associations, think tanks and other opinionleaders, acting in an internationally coordinated manner on specific issues, has changed the face of diplomacy. The Department has expanded its public diplomacy efforts in response to these changes in the public policy environment. Globalization has also blurred the distinction between international and domestic issues. International organizations and agreements increasingly enter into areas of provincial competence, requiring comprehensive and systematic consultation with provincial governments in the implementation of international commitments in these areas. This consultation is key to strengthening Canadian unity, as is fostering identity and attachment to our country through increased awareness of Canada's role abroad.

Global economic integration and interdependence have given rise to fears of loss of sovereignty and inequitable distribution of benefits among countries. This has led to concerns about a retreat to protectionism fuelled by the economic uncertainty resulting from the global financial crisis. Such a retreat would be incompatible with Canada's interests as a trading nation and would impede our economic performance. In reality, these concerns reinforce the need for expanded trade liberalization through the WTO rules-based system.

The globalization of information and communications has profound implications for the pursuit of Canada's national interests. The international perception of Canada is often dated and out of step with economic and other realities in Canada. In addressing this issue, the Department is pursuing public diplomacy activities to promote Canada's international academic and cultural relations.

Government Commitments and International Events

The Government is committed to public engagement in foreign and trade policy development. This recognizes the changing nature of global challenges and the role of non-state actors in influencing their resolution. This was demonstrated in the effective partnership with civil society in the successful Ottawa Process leading to the landmines treaty. Canada has been at the forefront of efforts to provide mechanisms for transparency and engagement of civil society in international organizations.

Canada remains committed to promoting its global security, trade and economic interests through its membership in world organizations and complementary regional bodies embodying the multilateral rules-based system. In addition to exercising Canada's ongoing rights to promote our interests in these bodies, the Department is responsible for government commitments involving summitry and high-level visits in 1999–2000.

At the multilateral level, Canada's two-year term on the UN Security Council from January 1999 will require efforts to address the expanded global security agenda. Canada will join its NATO partners at the NATO Summit in Washington during its 50th anniversary in April 1999 to consider issues related to our capacity to address conventional and emerging security challenges. The World Trade Organization Ministerial Conference in November 1999 will consider results of a work program for new multilateral trade negotiations. The WTO agenda also calls for negotiations on agriculture this year and on services in 2000. The Group of Eight Industrialized Countries (G-8) Summit in Koln in June 1999 will review progress in addressing impacts of the global financial crisis and strengthening the international financial system to help prevent and better manage such crises. Canada will host the Francophone Heads of Government Summit in 1999. Canada will also host the Commonwealth Education Ministers Conference in 2000.

At the regional level, the Prime Minister has confirmed that Canada is committed to a hemispheric free trade agreement of the Americas by 2005. Canada chairs (until October 1999) negotiations for a Free Trade Area of the Americas (FTAA). Canada will host a meeting of FTAA Trade Ministers in November 1999 in Toronto, after meetings of the Americas Business Forum in October and the Conference of Spouses of Heads of State and Government of the Americas in September. Canada will also host the Organization of American States (OAS) General Assembly in 2000 and the Third Summit of the Americas in 2001 to pursue Canadian security, trade and economic interests in the hemisphere. The Department is implementing commitments announced by the Prime Minister at the December 1998 Canada-EU summit including: the EU-Canada Trade Initiative (ECTI) to identify areas for common action on multilateral trade and cooperation on bilateral trade; the Canada-EU SME and Euro initiatives to raise awareness of how the new Euro could affect Canadian businesses, SMEs in particular; and initiatives on small arms and anti-personnel landmines for cooperation on managing accumulations and transfers of small arms and increasing global resources to eliminate antipersonnel landmines. The Department is leading negotiations for a free trade agreement with EFTA to improve access for Canadian exports to EFTA countries.

At the bilateral level, managing Canada's broad and complex relationship with the United States is an ongoing priority commitment. In the five years since NAFTA entered into force, Canada–United States trade has doubled. However, there are strains in some sectors such as agricultural products and culture. Transboundary issues in areas such as salmon, the environment and customs and other border procedures will also need continued attention.

Year 2000 Date Issue

The Department faces three major challenges in dealing with the Year 2000 issue: ensuring compliance of the Department's own systems; ensuring that Canada's missions abroad remain operational; and protecting Canadian interests from the consequences of potential Year 2000 failures abroad. The Department has seven "government-wide mission critical systems," and many other systems that are important to its day-to-day operations. All are being assessed and, where necessary, repaired or replaced. All Canadian embassies and consulates are preparing contingency plans to ensure they are able to deliver essential services to Canadians in the event of Year 2000 failures in their host countries. The Department has established a Year 2000 Coordination Secretariat to assess and address the impacts of potential Year 2000 failures abroad on Canadian interests. The Secretariat will also promote international awareness and coordinate cooperation on Year 2000 issues with other countries and international organizations.

D. Financial Spending Plan

Totals may not add due to rounding

Notes: The difference of $106.1 million between the net cost of the Department in 1998–99 and the net cost in 1999–2000 is due principally to approval of the following amounts in 1998–99 Supplementary Estimates:

• $63 million in contributions to the provinces under the softwood lumber export arrangements;
• $15 million for ensuring that departmental computer systems are Year 2000 compliant;
• $15 million for modernizing passport production; and
• $12 million to the Organisation for Security and Co-operation in Europe for its peace building projects in Bosnia and Kosovo.