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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. GRAHAM - ADDRESS TO THE STANDING COMMITTEE ON FOREIGN AFFAIRS AND INTERNATIONAL TRADE ON MAIN ESTIMATES - OTTAWA, ONTARIO</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE BILL GRAHAM, MINISTER OF FOREIGN AFFAIRS, TO THE STANDING COMMITTEE ON FOREIGN AFFAIRS AND INTERNATIONAL TRADE ON MAIN ESTIMATES OTTAWA, Ontario May 30, 2002 I come before you today to discuss our priorities and our main estimates. I would also like to take this opportunity to speak to you about a number of current foreign policy issues, the results of the Canada-European Union Summit and my recent trip to the Middle East. I. Priorities for 2002-03 I will begin by discussing our priorities for this coming year. As mentioned in our estimates, we have set the following priorities for 2002-03: • to promote global security and actively participate in international efforts to combat terrorism; • to build on Canada's successes in international trade (I believe Minister Pettigrew recently briefed you on this); and • to offer Canadian leadership in the G8 to achieve further progress on international security and stability and contribute to launching a new era in Africa's development. The Department of Foreign Affairs and International Trade is a substantial organization of more than 9,000 employees worldwide. We maintain more than 160 missions in 95 countries, and our primary value remains first and foremost in the work that we do abroad on behalf of Canada and Canadians. Last year, the Department conducted a departmental assessment and produced a series of recommendations aimed at strengthening the Department's effectiveness. We have made progress in implementing the recommendations--in part through some internal resource reallocation, and in part through the resources that we will be receiving from Budget 2001--and we remain committed to their full implementation. We have focused our activities on those elements of our mandate for which we have primary responsibility: foreign policy and diplomatic relations; trade policy and promotion; consular services; international law and treaty negotiation; and federal-provincial relations as they relate to international issues. We also strive to share expertise and work more intensively with other departments and agencies, provinces and territories, municipalities and the private sector. Finally, we would like to modernize the management of the Department, and we plan to implement certain measures as early as this year. As announced by Treasury Board a few weeks ago, the Foreign Service Officers will be one of the first professional groups to be reorganized as part of the job classification reform led by Ms. Lucienne Robillard. We want to make sure that we have an appropriate level of Canadian representation overseas in order to administer the government's programs and fulfill our mandate. II. DFAIT Main Estimates Let me now take a moment to review our financial situation. Our main estimates for 2002-03 are up $97 million from last year to $1.64 billion. While this increase is significant--slightly over six percent--practically all of the increase is attributable to the higher costs of existing programs. For example, the cost of Canada's membership in international organizations, such as the UN, FAO, WTO, NATO, etc., accounts for $22 million of the increase in our main estimates. Our assessed share of the cost of UN peacekeeping operations is expected to rise by $15 million. High rates of foreign inflation will cost us a further $20 million to operate our missions abroad, and we have been provided with $13 million to compensate for currency losses on missions' operations. As you can see, the increase in our main estimates does not allow the Department to undertake new programming expenditures. As we respond to new challenges, we will continue to focus on priorities and reallocate resources accordingly. Our room to manoeuvre however is very tight. Over 90 percent of our budget is already tied to assessed contributions, operations at missions overseas, treaty obligations and other non-discretionary spending, while the remaining 10 percent of our budget is tightly focused on government priorities. III. Current Situation I'd like to finish my presentation today by giving you a quick update of where we are on a number of key files. G8 Summit Preparations for the G8 Summit in Kananaskis are well under way. As indicated by the Prime Minister, Africa will remain front and centre at Kananaskis. Immediately after my last SCFAIT [Standing Committee on Foreign Affairs and International Trade] briefing on the G8, the G8 Counterterrorism Experts Group met to work on a variety of counterterrorism issues, which will form the basis of the Foreign Ministers' response in June to G8 leaders. Under our chairmanship, the G8 is also examining other issues that will likely be discussed at the Foreign Minister's meeting in Whistler, including the situation in the Middle East, and the development of public security institutions in Afghanistan. In addition, at Whistler we will discuss the extremely worrying tensions between India and Pakistan, and our various efforts to urge Pakistan to stem terrorism and incursions across the Line of Control in Kashmir, and to encourage India to resume a dialogue with Pakistan. With the signing of a new strategic reduction agreement between the United States and Russia on May 24, we will also probably discuss international disarmament at Whistler. Canada-U.S. Canada's most important links are with the United States and, since September 11, security has joined trade as our main priorities in our bilateral relationship. Under the overall direction of Deputy Prime Minister John Manley, we continue to coordinate with Canadian border agencies and liaise with U.S. counterparts to ensure smooth implementation of the bilateral Smart Border Action Plan signed last December. We also continue to cooperate bilaterally on the prevention of terrorism in North America. A number of important bilateral trade issues have arisen including, of course, softwood lumber. As Minister Pierre Pettigrew explained to you, the Government of Canada is fully committed to a rules-base trading system, and this is how we intend to pursue our trade grievances with the U.S. I would like to express my disappointment regarding the U.S. decision to "unsign" the treaty establishing the International Criminal Court (ICC). In the short term, the effect will be minimal, and the ICC and its statute will still come into force on July 1, 2002. In the long term, we will continue to try to convince the U.S. that the Court will be fair, impartial and responsible, and deserving of U.S. support. Afghanistan In Afghanistan, we are committed to working with our partners toward fostering a secure, stable and democratic state, both through the stabilizing presence of our military and our development assistance. The government has allocated $100 million to meet the humanitarian, reconstruction and recovery needs of Afghanistan, of which $30 million has already been disbursed, most of it to meet the urgent humanitarian needs of the Afghan people. We are in discussion with CIDA as they closely examine how best to allocate the remaining $70 million. Given the complexities of the situation in Afghanistan, we need to ensure that our assistance responds to the real needs of the Afghan people--from their security concerns to humanitarian needs to longer term development--as they make the difficult transition from a history of conflict to a future of peace. The Americas In Latin America, despite implementing some reforms, instability in the region remains a major concern, as we have seen in Venezuela, Argentina and Colombia. Canada has two priorities in presenting ourselves as a globalized and socially responsible role model for the region. First, we must implement the commitments of the Quebec City Summit--the Summit Action Plan, the democracy clause and the Free Trade Area of the Americas. Second, we must continue to deepen our relationships in the region, particularly with key countries such as Mexico and Brazil. Canada-Europe I would now like to turn to the recent Canada-European Union Summit. The Prime Minister, Minister Pettigrew and I held talks in Toledo with President José Maria Aznar and our European colleagues. We agreed to work more closely in the fight against terrorism and to strengthen cooperation between our law enforcement agencies and our various judicial organizations. We also agreed to explore ways to expand bilateral trade and to examine trade options at the next summit in Ottawa in December. We discussed the Kyoto Protocol and Canada's proposals for clean energy export credits, as well as developments in Afghanistan, the Middle East and Latin America. We think that this was a very successful summit that moved forward our relations with the EU and paved the way for new areas of cooperation. Beyond EU issues, Canada needs to strengthen its relations with individual member states, and will continue to increase our policy and program attention to Russia and key neighbouring states, particularly where Canadian interests are growing and representation is meagre. Middle East I have been in regular contact with Middle East leaders and have just returned from the region where I delivered our message--strongly and clearly--that violence must end and negotiations must resume in the context of a renewed political process. I indicated to the leaders of Israel and the Palestinian Authority that there can be no military solution to the conflict and I encouraged the leaders of Jordan and Egypt to continue their efforts to move the peace process forward. Following the visit, it is clear that, while the situation remains as urgent as ever, there is now an opportunity to move forward, with redoubled effort and attention, to return the focus to a peaceful resolution. For our part, Canada has also taken concrete steps to prevent terrorist financing here and to address the humanitarian situation in the West Bank and Gaza by increasing the delivery of aid. We stand ready to assist the parties, in any way we can. This concludes my presentation today. I am ready to take questions from the Committee. Thank you. </body> </html>

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