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Table 13: Details on Transfer Payment Program (TPPs)
Name of Transfer Payment Program: An act to Authorize the Minister of Finance to Make Certain Payments, 2005
Start Date: 2006-07 End Date: 2006-07
Description: Support for the reform of the Afghan National Police and the implementation of the Afghan National Drug Control Strategy
Strategic Outcome: Achieving a sustainable decrease in cultivation production, trafficking and consumption of illicit drugs with a view to complete elimination. Professionalize and reform the justice and security system of Afghanistan.
Results Achieved:
Because the legislation entails initiatives beginning in 2007, progress can only be measured in the Department's 2007-08 DPR.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
  0 0 0 $25,000,000 $25,000,000 $25,000,000
Total Contributions            
Comments on variance: Funding is to be allocated subject to the availability of a surplus at year-end 2006-07 as directed by TBS and PCO in January 2007.
Significant Audit and Evaluation Findings: N/A


Name of Transfer Payment Program: Commonwealth Secretariat (TB #646044)
Start Date: September 28, 1965 End Date: N/A
Description: Canada's assessed contribution to the regular budget of the Commonwealth is a legally binding obligation of membership. The purpose of Canada's membership is to further Canada's foreign policy goals related to international peace, security and development and, to this end, to enhance its relationships with the 53 Commonwealth member countries. For further information, see http://www.commonwealth.org.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: Much of the regular budget is directed to supporting and implementing the decisions of the Commonwealth Heads of Government Meetings and a large web of regular meetings of Commonwealth sectoral Ministers including, for example, the Commonwealth Ministerial Action Group and Ministers of Foreign Affairs, Finance, Health and Education.
Results include diplomatic interventions in the form of both good offices and public pressure by the Secretariat and/or co-coordinated action by Commonwealth Ministers to support democratic institutions and procedures; programs to build capacity in democratic and human rights procedures; and enhanced cooperation among Commonwealth countries related to economic, social and political development.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $5,538,231 $5,420,987 $5,212,000 $5,712,000 $5,535,750 $(323,750)
Total Contributions            
Comments on Variance: Contribution was underestimated for 2006-2007 and a higher exchange rate at the time of payment.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: The National Audit Office (UK) recently won the tender to perform audits for the Secretariat for the next 3 years. The annual external Audit for 2004-2005 accounts was presented to the Commonwealth Secretariat Executive Committee in September 2006. The Secretariat outlined its responses to the external audit recommendations to the Executive Committee in January. The Secretariat also conducts regular internal audits through Grant Thornton.


Name of Transfer Payment Program: Projects and Development Activities Resulting from Francophone Summits(TB# 830314)
Start Date: March 9, 1979 End Date: N/A
Description: This fund provides funding to cooperation programs and activities undertaken by the International Organisation of the Francophonie (IOF). It also provides financial support to the Government of New Brunswick to foster its participation in international Francophonie activities.
This fund helps to promote Canadian interests and is consistent with political and economic objectives Canada has set itself for La Francophonie. It also promotes active participation from the Government of New-Brunswick in Summits, Ministerial Conferences and other related Francophonie activities.
Objectives: This fund reflects the importance of La Francophonie within Canadian society. It indicates the political commitment of the Government of Canada toward La Francophonie and its active participation in a key multilateral organization. The fund also promotes Canadian development and foreign policy interests in a multilateral context.
Strategic Outcomes: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: Because of Canada's contribution to the unique multilateral Fund, over 80 projects and initiatives have been realised to contribute to the development of Southern countries, Asia and Eastern Europe (members of the Francophonie). Some of these projects have been conducted by Canadian organizations and institutions which allowed Canada to demonstrate it's know-how and expertise throughout the international Francophonie.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
  $7,500,000 $7,500,000 $7,500,000 $7,296,507 $7,296,507 $203,493
Total Contributions            
Comments on Variance: The difference of $ 203,493 is explained by the fact that the OIF received voluntary contributions of member countries later then normal which affected the execution of the program. At the moment of the last payment, the OIF had only realised 93% of what was originally planned.
Significant Audit and Evaluation Findings: An audit is planned for the last semester of 2010-2011.


Name of Transfer Payment Program: International Organisation of the Francophonie
(TB #709620)
Start Date: March 9, 1972 End Date: N/A
Description: As a member of the OIF, Canada is required to contribute to the operational fees of the organization. This fund constitutes the statutory contribution, a function of the International Organisation of the Francophonie (OIF).
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: Through its statutory contribution, the Canadian government has been able to convey to other member countries of the community of francophone countries that it intends to continue to play a determining role in Francophonie.
It has also demonstrated its intention to actively and collectively participate in the multilateral political framework and to the prospective reflections of this organization directly to action programs arising from major orientations decide by Chiefs of States and of member governments.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $12,438,801 $11,455,095 $12,066,000 $15,055,000 $14,781,718 $ (2,715,718)
Total Contributions            
Comments on Variance: A portion of the statutory contribution for the 2007-08 fiscal year (equivalent to three years) was remitted to the OIF to stabilize the payments over the calendar year January to December. This amount is added to the full statutory payment for the 2006-07 year.
Significant Audit and Evaluation Findings: An audit is planned for the last semester of 2010-2011


Name of Transfer Payment Program: Initiatives related to the destruction, disposition and securing of weapons of mass destruction (TB #830799, TB #831536, TB #131449, TB #832273)
Start Date: August 12, 2003 End Date: March 2013
Description: To implement Canada's commitment to the G8 Global Partnership Against the Spread of WMD through the destruction of chemical weapons, the dismantlement of nuclear submarine, the enhancement of nuclear and radiological security, the employment of former weapons scientists, and biological non-proliferation. Canada committed up to $1 billion over 10 years to implement the goals of the Global Partnership. The justification for the Partnership was based on an assessment of threats to Canadian and international security following the terrorist attacks of September 2001. Exhaustive evaluations at the G8 level led to the conclusion by leaders at the Kananaskis Summit that the seriousness of the terrorist/weapons of mass destruction threats could only be addressed if a cooperative approach, supported by significant resources, was adopted. Since then, 23 countries have been engaged in projects, and close to $20 billion (US) has been pledged.
Objectives: The objective of the Global Partnership Program is to protect Canadians from security threats emanating from terrorism and weapons and materials of mass destruction. This is being accomplished through:
  • Canada's involvement in the construction chemical weapons destruction facilities in Russia;
  • dismantlement of seven nuclear submarines to date, part of an initial commitment to dismantle 12 submarines by the end of FY 2007-08;
  • implementation of five physical projects to improve the security of nuclear material in Russia, completion of two projects to recover, secure and store radioactive power sources, and assistance to countries of the former Soviet Union (FSU) for physical protection upgrades and border security, via the International Atomic Energy Agency and the US;
  • funding to date over 100 research projects worth approximately $24 million through the International Science and Technology Center (ISTC) in Moscow and the Science and Technology Center in Ukraine (STCU) in Kyiv, involving the redirection of over 2,000 former FSU weapons scientists to peaceful and sustainable research; and
  • projects to develop and implement bio-safety/bio-security standards and practices, translate guidelines and manuals, and encouragement of biosafety associations in Russia and the FSU.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: A reduced threat from WMD for Canadians and a more secure national and international environment, as a result of material safety stored, facilities secured and expertise redirected.
Strengthening the international non-proliferation, arms control and disarmament regime and achieving Canada's domestic and international security objectives.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
International Security $9,828,105 $85,967,459 $83,914,000 $100,240,126 $100,101,626 $ (16,187,626)
Total Contributions            
Comments on Variance: The Global Partnership Program used funds received through the Supplementary Estimates and reallocations within the Program and internal transfers from other areas of the Department to be able to fulfil contractual requirements.
Significant Audit and Evaluation Findings: In FY 2006-07, audit activity included the Follow-Up Audit to the 2005-06 Internal Audit and Contribution Recipient audits of the nuclear submarine program and the chemical weapons destruction program, both of which concluded that existing measures and processes are working well, an audit of the nuclear and radiological security program's contribution to the IAEA, as well as annual liaison visits to the EBRD, ISTC and STCU. Work was undertaken to implement recommendations of the FY 2005-06 Formative External Evaluation. A Summative Evaluation will take place in FY 2007-08 covering the nuclear and radiological security, redirection of former weapons scientists and biological non-proliferation programs, as well as a roll-up of the Global Partnership Program.


Name of Transfer Payment Program: Food and Agriculture Organization (TB #783317)
Start Date: July 1982 End Date: N/A
Description: Canada's annual assessed contribution to the FAO is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to agricultural development and provide it with a voice in the international community. For further information, see http://www.fao.org.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results achieved: Achieving food security for all is at the heart of FAO's efforts - to make sure people have regular access to enough high-quality food to lead active, healthy lives. FAO's mandate is to raise levels of nutrition, improve agricultural productivity, better the lives of rural populations and contribute to the growth of the world economy.
FAO's objectives, as set out in its Constitution, are:
  • to promote the common welfare by furthering action for the purpose of: raising levels of nutrition and standards of living of the peoples within Member Nations;
  • to secure improvements in the efficiency of the production and distribution of all food and agricultural products, including fisheries, marine products, and forestry products; and
  • to better the condition of rural populations.
Thus, contributing towards an expanding world economy and ensuring humanity's freedom from hunger.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $12,389,820 $13,086,582 $14,627,000 $14,627,000 $13,595,877 $1,031,123
Total Contributions            
Comments on Variance: C$ strengthened against US$ at time of payment, scale increase less than anticipated.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: FAO accounts are subject to internal audit and evaluation, as well as audit by external auditors on a biennial basis.


Name of Transfer Payment Program: Payments in lieu of taxes on diplomatic, consular and international organizations' property in Canada (TB #826663)
Start Date: January 18, 1979 End Date: N/A
Description: The purpose of this memorandum of understanding (MOU) is to outline the relationship between the Department of Foreign Affairs and International Trade and Public Works and Government Services Canada, National Capital Area, under the Diplomatic, Consular and International Organizations' Property Grants Order (P.C.1979-59, January 18, 1979), the Municipal Grants Act, and successor Orders and Acts. It establishes responsibilities and procedures governing the provision of services related to the payment of grants in lieu of real property and frontage or area taxes with respect to diplomatic property. These procedures are designed to ensure fiscal and operational accountability, while promoting efficient and quality program delivery.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: Although PWGSC is responsible for making payments to taxing authorities by virtue of the MOU, the actual funding is devolved to DFAIT. The Department, as a custodial client of PWGSC, managed, within its approved spending authorities and in full compliance with legislative/international obligations, to pay the realty taxes on certain designated properties owned by foreign states in Canada. DFAIT also continued, in regard to the PILT Program, to enhance its sound stewardship, management and policy framework, resulting in greater efficiencies.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Protocol $9,865,875 $10,228,779 $10,576,000 $11,159,209 $10,841,644 $ (265,644)
Total Contributions            
Comments on Variance: The variance between total spending authorities and actual spending is primarily explained by two (2) factors, namely: (a) lower than anticipated property assessments in light of the cancellation by the Ontario Municipal Property Assessment Corporation of assessment updates of all properties in Ontario for years 2006 and 2007 and (b) a forced lapse to cover an interim payment to the City of Toronto which is scheduled be made at the start at the next financial year rather than in March as in previous years.
Planned Audits and Evaluations: The bureau undertook a number of initiatives aimed at strengthening accountability and transparency of the Payment in Lieu of Taxes Program, better managing risk and ensuring a culture of integrity. Initiatives included (a) realigning resources to support the efficient delivery of this government program, (b) enhancing the existing risk management framework and (c) retooling the Office to consistently ensure proper selection and approval of grant recipients (i.e. foreign states) and fair and equitable payments to real property taxing authorities.

Program Activity: International Security


Name of Transfer Payment Program: : Global Peace and Security Fund and its component programmes: the Global Peace and Security Programme, the Global Peace Operations Programme, and the Human Security Programme (TB#832435, TB#832989)
Start Date: October 3, 2005 End Date: March 31, 2010
Description: In an international environment characterized by increasingly complex crises - whether created by nature or by humans - Canada is frequently called upon to contribute its expertise and resources in support of conflict prevention, peace building and peacekeeping, humanitarian action, and landmines and small arms reduction.
In light of significant, complex conflicts with important implications for stability and international security, Canada established the Global Peace and Security Fund to improve the government's capacity to respond to international crises.
Strategic Outcome: Greater international support for freedom and security, democracy, rule of law, human rights and environmental stewardship.
ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada's and its values are projected to the world, Canada's interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved : The long-term expected results are:
  • Rapid, integrated and better coordinated Canadian response to international requirements for short-and medium-term crises prevention, stabilization, peace building and reconstruction;
  • Improved Canadian contribution to the mitigation of natural disasters and complex emergencies and restoration of security and indigenous governance capacity;
  • Expanded global and regional capacity for peace support operations

The ultimate result of the GPSF and its component programmes is an "Improved Canadian contribution to peace and security and the safety and well being of beneficiaries living in targeted areas."

Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
International Security $9,778,432 $16,350,000 $63,234,000 $69,040,444 $56,024,644 $ (7,209,356)
Total Contributions           $ (7,209,356)
Comments on variance: Variances were due to 1) delays in negotiating contribution arrangements with the United Nations and 2) the fact that there was a shortage of authorities for Fragile States, GPOP and HSP which meant no multi-year agreements which entailed greater emphasis on short term initiatives left within the existing authorities.
Significant Audit and Evaluation Findings and URL to lat Audit and / or Evaluation: A formative evaluation is planned in 2007/2008 and a summative evaluation is planned in 2009-10.


Name of Transfer Payment Program: Grants and Contributions in Aid of Academic Relations (TB#810393)
Start Date: January 1, 1989 End Date: March 31, 2011

Description: Grants and Contributions in Aid of Academic Relations in 2006-2007 encompass grants and contributions to academic and education or research related institutions and organizations in support of such activities as:

  • Canadian Studies;
  • International scholarships and fellowships; and
  • international education, including provincial participation in international multilateral activities in the area of education.

These programs support Public Diplomacy strategies throughout the department, by promoting the following:

  • a greater knowledge of Canada through research and teaching;
  • partnerships within North America and with other regions through academic programming;
  • academic networks, student exchanges and conferences related to Canada and Canadian foreign policy interests;
  • the Canada US Foundation on Educational Exchange to foster bilateral understanding and dialogue;
  • increased international mobility for Canadian academics and students;
  • international linkages of Canadian post-secondary institutions;
  • international research networks; and
  • public discussion of key issues related to Canada and Canadian foreign policy.

They foster stronger partnerships with Canadians, through partnerships with academic institutions, associations, organizations and individuals. They advance Canada's global citizenship and contribute to the effective implementation of Canadian development assistance in the field of human capital development through scholarships and other programs of academic cooperation with developing countries, as well as, in support of objectives related to public diplomacy, peace and security. Their redesign and realignment assist in main streaming public diplomacy within DFAIT, and contribute to realization of departmental priorities.

Objective: To improve knowledge of Canadian issues among key foreign audiences and to increase participation of Canadians and foreigners in the Division's programs.

Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved:

  • Networks of well-informed foreign professionals and leaders with sustained interest in Canada were expanded, including via support provided to acquisition of Canadian library materials, access to data bases on Canada, a range of conferences, research activities and teaching on Canada thereby engaging the academic community, business and government in key countries/regions (for example, through the Canadian Studies program in key countries including the US and Mexico, China, India, Brazil, and Russia, etc);
  • Links and exchanges between Canadian and foreign partners (academics, researchers, students and young people) were nurtured, including through scholarships which support Canadian university linkages abroad, support for Canadian academics to speak on Canadian issues at international events, awards to foreign academics to developm networks in Canada and pursue joint research interests, study tours and internships by international students as well as by Canadian students abroad and the facilitation of foreign government and other international awards to Canadian students.
  • Canadian education excellence was projected abroad through grants to the Council of Ministers of Education Canada for representation of Canada at international education events and federal/provincial cooperation, and through the facilitation of the Edu-Canada unit's strategy to step up education marketing efforts in key countries including USA, Mexico, Brazil, China and India.
  • Canada's bilateral objectives in key countries were advanced through grants to education-related activities which facilitated cooperation and dialogue and people-to-people exchanges.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Strategic Policy and Public Diplomacy $13,395,664 $12,260,000 $13,500,000 $13,225,390 $13,225,389 $274,611
Total Contributions            
Comments on Variance: Included in our planned spending was 800k for domestic outreach in Public Diplomacy to be managed by PIO. During the fiscal year 2006-2007, Public Diplomacy funding has been cut in the Federal budget, therefore forbidding PIO to spend the entire allocation. PCE underspending of their planned budget for 2006-2007 was less than one dollar.
Significant Audit and Evaluation Findings: Program evaluation was completed in July 2005. Financial audit has been undertaken in 2006-2007 with the final report expected in the Fall of 2007.


Name of Transfer Payment Program: Grants in Aid of Cultural Relations (TB #829976)
Start Date: August 7, 2002 End Date: March 31, 2008

Description: This program aims to achieve the following:

  • to create an awareness abroad of Canadian distinctiveness and culture;
  • to articulate Canadian attitudes and positions in official, media, business, cultural and educational circles as well as among the public generally;
  • to reflect internationally the growing creativity and scope of Canadians; and
  • to develop interest in studies exclusively about Canada in institutions of higher learning abroad.
Objective: The advancement of Canadian foreign policy objectives through the promotion of Canadian culture abroad.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: The department, via its Arts Promotion Program (PROMART), disbursed more than 340 grants totalling $4.4 million in the 2006-07 Fiscal Year. PROMART grants fund Canadian artists and cultural organizations performing on the international stage, using Canada's cultural success stories in international markets to support foreign policy and trade objectives.
In 2006-2007 PROMART Grants resulted in the following deliverables:
  • FILM AND TELEVISION $98,480 for 64 PROMART Grants to Canadian filmmakers. Highlights: Football Country Alberta Ltd. for Bruce McCulloch's "Comeback Season" at the Tribeca Film Festival, New York; Susan Rynard's "Kardia" at the Shanghai International Film Festival
  • FILM AND TELEVISION $307,810 for 11 PROMART Grants to Canadian film and television festivals. Highlights: Foreign buyers invited to the Toronto International Film Festival; Festival International du Film sur l'Art, Montreal; Banff World Television Festival; Hot Docs International Documentary Festival, Toronto
  • LITERATURE AND PUBLISHING $87,350 for 48 PROMART Grants to Canadian authors and publishers. Highlights: Susan Swan for the Madrid Launch of "What Casanova Told Me"; David Adams Richards for "Meagre Fortune" tour of the United States; Association for the Export of Canadian Books (AECB) to organize Canadian Travelling Trade Collections in China, India, Korea, and Europe
  • VISUAL ARTS AND MEDIA $600,300 for 49 PROMART Grants to Canadian artists and galleries. Highlights: Emily Carr Institute for Canadian participation at the Venice Biennale of Architecture; South Alberta Art Gallery exhibition of art by Janet Cardiff and George Bures Miller in Spain and Germany
  • FOREIGN POLICY PRIORITIES $294,275 for 20 PROMART Grants for Foreign Policy Priority projects chosen from 81 submissions in a "Regional Challenge Fund" competition among Missions
  • PERFORMINGS ARTS -- Dance $737,200 for 30 PROMART Grants -- Highlights: Royal Winnipeg Ballet 12 performances in the United States; Compagnie Marie Chouinard 49 performances in Asia and Europe
  • PERFORMINGS ARTS -- Music $817,400 for 58 PROMART Grants -- Highlights: Tafelmusik 15 performances in the United States and Europe; Les violins du Roy 11 performances in the United States
  • PERFORMINGS ARTS -- Theatre $859,000 for 36 PROMART Grants -- Highlights: Theatre Smith-Gilmour 22 performances in Taiwan, Singapore and China; Thtre Sans Fil 41 performances in the United States
  • PERFORMINGS ARTS -- Multi-disciplinary $280,200 for 11 PROMART Grants -- Highlights: Cirque Eloize 138 performances in South America, Europe and Asia; Les 7 doigts de la main 133 performances in the United States, Europe and Asia
  • PERFORMINGS ARTS -- Festivals $275,000 for 15 PROMART Grants -- Highlights: Foreign buyers invited to the East Coast Music Awards, Charlottetown; Just for Laughs Festival, Montreal; PuSh International Performing Arts Festival, Vancouver; Milk International Children's Festival of the Arts.

Meanwhile, PROMART grants program authority has been extended by the Treasury Board secretariat for the 2007-08 Fiscal Year, while the Cultural Relations Transfer Payment Program is aligned to enhance PROMART's focus on foreign policy priorities.



Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Strategic Policy and Public Diplomacy 0 0 $7,894,000 $6,514,858 $6,327,514 $1,566,486
Total Contributions            
Comments on Variance: PROMART grants are administered through an on-line application system at Departmental headquarters, and do not include grants administered at missions.
In 2006-2007 an additional $1.7 Million in public diplomacy funds for cultural relations was used by 35 Missions in select countries to fund over 400 projects, using public diplomacy funds that ended in the 2006-2007 Fiscal Year.
Significant Audit and Evaluation Findings: EVALUATION OF THE ARTS PROMOTION PROGRAM OF FOREIGN AFFAIRS CANADA (January 2006) http://www.dfait-maeci.gc.ca/department/auditreports/evaluation/evalArtsPromotion06-en.asp
Internal audit of the International Cultural Relations Program planned for 2007-08.


Name of Transfer Payment Program: International Atomic Energy Agency (TB#812890)
Start Date: December 19, 1989 End Date: N/A
Description: Canada's assessed contribution for the International Atomic Energy Agency (IAEA) is a legally binding obligation of membership. Payment is made to ensure that membership is in good standing and to maintain influence and credibility in a key international body, the aims of which Canada supports. The IAEA is the world's centre for nuclear cooperation and works for the safe, secure and peaceful use of nuclear technology. Canada has significant interests at the IAEA based on our belief in the importance of the Agency's role in advancing the goals of nuclear non-proliferation, safety and security, our advanced and extensive nuclear energy and radioisotope production industries, and our important uranium sector.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada's values are projected to the world and its interests are pursued abroad, allowing Canadians to better interpret the world. Canada has continued its membership in good standing, with influence and credibility across the full scope of the activities of a key international body; the mandate and activities of which are in Canada's interests.
Results Achieved: The projection of Canadian values abroad, the preservation of Canadian national security, the strengthening of international stability and security, the promotion of world economic growth and prosperity, and support for multilateral institutions and mechanisms.
(a) Effective and efficient implementation of the IAEA's major programmes as reflected in the Agency's biannual programme and budget;
(b) increased profile for Canada in the Agency's activities;
(c) direct and indirect technical and commercial dividends to the Canadian nuclear industry; and
(d) IAEA actions and decisions consistent with Canadian foreign policy priorities.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
International Security $11,298,738 $10,244,738 $10,950,000 $11,209,600 $11,184,207 $ (234,207)
Total Contributions            
Comments on Variance: Variance was due to foreign currency fluctuation and the IAEA's transition from US Dollars to EURO.

Significant Audit and Evaluation Findings: The latest external audit of the IAEA Accounts was completed on 30 March 2007, covering the financial period ending 31 December 2006. The German Federal Court of Audit conducted its audit in accordance with the Common Auditing Standards of the Panel of External Auditors of the United Nations, the Specialised Agencies and the International Atomic Energy Agency. Those standards require that the auditors plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The audit included examining, on a test basis, evidence supporting the amounts and disclosures in the Agency's financial statements. The audit also included assessing the accounting principles used and significant estimates made by the Director General, as well as evaluating the overall financial statement presentation. As a result of this examination, the Vice President of the German Federal Court of Audit certified that, in his opinion:

(a) The financial statements reflect properly the recorded financial transactions for the biennium ended 31 December 2006 and present fairly, in all material respects, the Organisation's financial position as at 31 December 2006;

(b) The financial transactions reflected in the statements, which auditors have tested as part of the audit, have in all significant respects been in accordance with the applicable Financial Regulations and Legislative Authority; and

(c) The financial statements have been prepared in accordance with the stated accounting policies and procedures, which were applied on a basis consistent with that of the preceding financial period.



Name of Transfer Payment Program: International Criminal Court (TBS #830101)
Start Date: April 1, 2006 End Date: N/A
Description: ICC is an assessed contribution transfer payment.
Objectives: Investigation and prosecution of individuals suspected of genocide, war crimes and/or crimes against humanity.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY Through Canada's support to the ICC, Canada has provided leadership in promoting accountability for the most serious criminal acts known to humankind. Canada was a key player in the creation of the ICC and has been successful in strengthening the role of the ICC as a main instrument in the global fight against impunity.
Results Achieved: Investigation and prosecution of individuals suspected of the most serious international crimes. This is a relatively new international organization. Therefore, budget increases were anticipated. Investigations are ongoing in Sudan, Uganda, the DRC and CAR. The first ICC trial has now commenced in the DRC situation and warrants of arrest have been issued in the Sudan and Uganda situations.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
  $6,329,142 $6,408,168 $7,018,000 $7,837,170 $7,778,060 $ (760,060)
Total Contributions            
Comments on Variance: The ICC is a new organization and has run into some difficulties becoming fully staffed. There have also been some space constraints on staffing due to issues arising with the interim premises of the Court. Smaller variances can be expected when the organization matures.
Significant Audit and Evaluation Findings: The ICC Committee on Budget and Finance (CBF) reports to states parties twice a year and an annual independent audit is always arranged by the Registrar of the ICC.


Name of Transfer Payment Program: International Labour Organization (TB #812690)
Start Date: January 1, 1989 End Date: N/A

Description: Canada's annual assessed contribution to the ILO, a UN specialized agency, is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to international labour and social policy issues and provide it with a voice in the international community. For further information, see http://www.ilo.org.

Four strategic objectives guide the ILO program and budget:

(i) to promote and realize standards and fundamental principles and rights at work;

(ii) to create greater opportunities for women and men to secure decent employment and income;

(iii) to enhance the coverage and effectiveness of social protection for all; and

(iv) to strengthen tripartism and social dialogue.

Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.

Results Achieved:

  • development and effective supervision of international labour standards and realization of fundamental principles and rights at work;
  • targeted action against child labour, giving priority to the urgent elimination of its worst forms;
  • contributions to poverty reduction through promotion of coherent economic and social policies that support employment creation;
  • assistance to constituents in the development of skills and employability policies and programs for decent work;
  • better instruments and tools for policy analysis and formulation that support good governance and the extension of social protections to vulnerable workers;
  • strengthened social dialogue on labour and social policy issues at national and international levels; and
  • improved organizational effectiveness, transparency and accountability.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $10,632,807 $9,259,994 $11,108,000 $9,903,545 $9,753,794 $1,354,206
Total Contributions            
Comments on Variance: Canadian dollar strengthened against Swiss francs at time of payment, scale increase less than anticipated, credit from timely payment incentive scheme.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: ILO accounts are subject to internal audit and evaluation, as well as audit by external auditors on a biennial basis.


Name of Transfer Payment Program: North Atlantic Treaty Organization - Civil Administration (TB #807627)

Start Date: January 1, 1989 End Date: N/A
Description: Canada's annual assessed contribution to NATO is a legally binding obligation of membership based on the 1949 North Atlantic Treaty. Canada's contribution furthers its foreign policy goals by funding the administrative budget of NATO, an international organization vital to Canadian defence and security interests. NATO was designed to promote the stability of the North Atlantic area and to safeguard the freedom and security of its people by political and military means, based on the principles of democracy, individual liberty and international law. The NATO civil budget, structured along "output based" lines in response to objectives set annually by the North Atlantic Council, covers the activities of the NATO Secretary General, the NATO headquarters and the NATO international staff. The NATO civil administration supports the process of consensus building and decision making among alliance members and manages NATO's relations with its partners. The NATO civil budget also supports the work of various NATO agencies with specialized responsibilities. An effective and efficient NATO civil administration assists alliance members in promoting security and stability in the North Atlantic area and in responding effectively to current security challenges. The NATO accounts are subject to annual audit by the International Board of Auditors for NATO.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: The NATO civil budget enables the operations of the NATO Secretariat and agencies. The results achieved include effective decision making by the alliance in pursuit of NATO objectives of stability and security in the North Atlantic region and beyond, support to NATO operations, timely implementation of decisions taken by the North Atlantic Council, appropriate response to current and emerging defence and security challenges, enhanced relations with NATO partners and cooperation with other international organizations, and proper management of the alliance's resources.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
  $17,047,650 $20,175,102 $17,222,000 $16,742,000 $16,662,889 $559,111
Total Contributions            
Comments on Variance: The variance is mainly due to exchange rate fluctuations between the Canadian dollar and the Euro.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: The NATO accounts are subject to annual audit by the International Board of Auditors for NATO.


Name of Transfer Payment Program: Organization of American States (TB #814057)
Start Date: May 31, 1990 End Date: N/A
Description: To pay Canada's annual quota assessment to the Organization of American States (OAS), a Charter obligation of membership.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved:
  • The capacity of the Organization of American States to promote democracy in the Americas, a key strategic priority for Canada was increased through the support and participation of Canada in nine electoral observation missions conducted by the OAS (Peru, Colombia, Haiti, Bolivia, Guyana, Nicaragua, Venezuela, St. Lucia, Ecuador) in the Hemisphere.
  • Canada's support for the continued engagement of the OAS in Haiti and Colombia contributed to the consolidation and reconstruction in Haiti and the peace process in Colombia.
  • Canada's initiative for the adoption of a resolution at the OAS on the promotion and strengthening of democracy, in collaboration with key hemispheric partners such as the United States, Brazil and Chile, strengthens the role of the Organization in this key area.
  • The effectiveness of the OAS in addressing hemispheric security-related challenges was increased through the support provided by Canada to the Organization's work in the fight against illicit drugs, trans-national organized crime, and in counter-terrorism.
  • Canada supported and hosted activities (workshops) to enhance the OAS' role in the area of mutual legal assistance, thus contributing to strengthening the rule of law in the Americas.
  • Canadian leadership and influence at the OAS was reinforced through the hosting of key events such as the Third Inter-American Meeting of Ministers of Culture, in Montreal, November 2006, which promoted cultural diversity in the region, and Canadian participation in the First Inter-American Meeting of Ministers on Sustainable Development, in December 2006.
  • Canada's support for the Summit Office of the OAS increases the Organization's capacity to play fully its central and coordinating role among Inter-American Institutions in the context of the Summit of the Americas process, a key forum for the advancement of Canada's balanced agenda in the Hemisphere focussing on democracy, prosperity and security.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $11,951,782 $11,002,876 $11,195,000 $11,195,000 $11,012,299 $506,853
Total Contributions            
Comments on Variance: The variance is due to an increase in quota assessment in 2007 calendar year and change to exchange rate between the Canadian and US dollar.

Significant Audit and Evaluation Findings: A yearly evaluation of the resources of the OAS General Secretariat is conducted by the Board of External Auditors, an external audit committee in charge of examining the accounts of the General Secretariat, including that of the OAS Regular Fund (to which the member states assessed contribution is devoted).

In its Annual Audit for the year 2006, the Board of External Auditors expressed satisfaction at the improvement of OAS management and the progress made by the Organization in the application of its previous recommendations to improve the Organization's financial situation. Its 2006 reports includes recommendations to continue with modernization efforts, in particular in addressing issues of indirect cost recovery, planning and adapting the OAS system to international accounting standards. Canada is supporting the implementation of these recommendations some of which have already been put in place with the adoption of the Program Budget for 2008.



Name of Transfer Payment Program: Organization for Economic Cooperation and Development (TB# 738356)
Start Date: March 20, 1975 End Date: N/A
Description: To pay the assessed contribution required of Canada for its participation as a member of the OECD. The contribution pays for the Secretariat (professionals and support staff who provide high-quality research and analysis) and maintenance of the headquarters, located in Paris.
Objectives: To coordinate, integrate and lead whole-of-government involvement in the OECD that reflects and enhances domestic priorities. To promote and develop Canadian foreign policy objectives (economic stability, governance), as well as a wide variety of OGD policy objectives (eg. economic, trade, development, environmental, social, energy, industry, technology, health, migration) in the OECD's work program of research, analysis, policy development, peer review, and cooperation with non-members. To support and participate in OECD work on management of the institution. Reform and strengthen the OECD as necessary to cope with new issues and power dynamics.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: OECD work programs and policy positions that reflect input from across government and support domestic priorities, find solutions to common economic problems by working cooperatively with members (soft law, guidelines, agreements); influence the policy development of other members and non-members to improve the functioning of the international economic environment; analyse new and emerging issues, both domestic and global, that impact our economy and standard of living.
Results Achieved: OECD work programs and policy positions that reflect input from across government and support domestic priorities; continued sound management of the OECD including launch of negotiations to improve the financial foundation of the OECD; institutional reforms to improve the OECD's ability to cope with new issues and power dynamics, OECD enlargement and improved engagement with non-members reflecting Cdn priorities to increase the long-term effectiveness of the organization; improved.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $10,703,550 $25,489,591 $12,714,000 $12,716,600 $12,706,498 $7,502
Total Contributions            
Comments on Variance: Planned amounts are based on the previous year's assessed contribution, increased by a small amount to reflect French inflation (Paris-based org). Actual assessment is calculated annually and only available approx. 8 months later, after the calculation of a formula which takes into account a country's 3-year ave. GDP and population statistics.
Significant Audit and Evaluation Findings: Audits are performed annually


Name of Transfer Payment Program: Organization for Security and Cooperation in Europe (TB #820933)
Start Date: January 1, 1993 End Date: N/A

Description: Canada's annual assessed contribution to the OSCE is an obligation arising out of Canada's commitments as one of the 56 participating states of the organization. Canada's contribution furthers its foreign policy goals by funding programs implemented by the OSCE's institutions and field operations in priority foreign policy areas for Canada related to regional and international security.
The OSCE is a focused regional forum with a comprehensive and cooperative approach to security. Canada's contribution to the organization's unified budget covers the costs associated with the implementation of the organization's work programs and activities in three dimensions: political and military aspects of security; economic and environmental cooperation; and cooperation in humanitarian and other fields. This integrated approach allows the OSCE to make a significant contribution to furthering European security and transatlantic cooperation through non-coercive measures. Canada's contribution also supports stronger partnership with Canadians in developing and implementing Canada's international security policy, through the involvement of members of Parliament in the work of the OSCE Parliamentary Assembly, the deployment of Canadians to OSCE field operations, and the contribution of Canadian experts to the organization.

The OSCE unified budget, based on a programmatic approach, is approved by the OSCE Permanent Council on a yearly basis. The OSCE accounts are subject to an annual report by external auditors as well as an internal oversight annual report that are made available to participating states.

Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: The OSCE budget supports the programs of the OSCE Secretariat in Vienna, as well as the OSCE institutions (Office for Democratic Institutions and Human Rights, Representative on Freedom of the Media and High Commissioner on National Minorities) and the organization's 18 field missions. The results achieved include effective and timely implementation of the decisions of the OSCE Permanent Council, continuous monitoring of the security and stability situation in Europe, concerted programming to actively contribute to conflict prevention, conflict resolution and post-conflict institution building, and proper management of the organization's resources.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
International Security $6,396,176 $17,345,104 $16,221,000 $16,211,000 $13,186,090 $3,024,910
Total Contributions            
Comments on Variance: The variance is mainly due to the combinaison of two factors: exchange rate fluctuations between the Canadian dollar and the Euro, and the discrepancy between the calendar-based OSCE fiscal year and the Canadian fiscal year.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: The OSCE accounts are subject to an annual report by external auditors as well as an internal oversight annual report that are made available to participating states.


Name of Transfer Payment Program: United Nations Organization (TB #769691)
Start Date: March 27, 1980 End Date: N/A
Description: Canada's assessed contribution to the regular budget of the United Nations is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to international peace, security and development and provide it with a voice in the international community. Assessed contributions are used to finance the organization's programs toward attainment of the UN's objectives, as set out in its Charter. For further information, see http://www.un.org.
Objectives:
  • to maintain international peace and security;
  • to develop friendly relations among nations;
  • to achieve international cooperation in solving international problems; and
  • to be a centre for harmonizing the actions of states in the attainment of these common ends.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: Maintenance of international peace and security and the promotion of sustained economic growth and sustainable development in accordance with the Millennium Development Goals. In particular, progress in the development of Africa; the promotion of human rights; effective coordination of humanitarian assistance efforts; promotion of justice and international law; progress toward disarmament; and international cooperation for drug control, crime prevention and the combatting of international terrorism in all its forms and manifestations.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $71,173,313 $65,106,934 $107,511,000 $106,853,400 $97,923,816 $9,587,184
Total Contributions            
Comments on Variance: Canadian dollar strengthened against US dollar at time of payment, scale increase less than anticipated, contribution towards CMP was made over 5 years rather than in one payment.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: The UN has internal mechanisms as well as external auditors to audit the regular financial statements of the organization on a biennial basis.


Name of Transfer Payment Program: UN Educational, Scientific and Cultural Organization (TB #809653)
Start Date: January 1, 1988 End Date: N/A
Description: Canada's annual assessed contribution to UNESCO is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to culture, science and education, and provide it with a voice in the international community.
Objective: UNESCO's objective, as set out in its Constitution, is to contribute to peace and security by promoting collaboration among nations through education, science and culture. For further information, see http://www.unesco.org.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved:
  • universal primary education in all countries by 2015;
  • gender disparities in primary and secondary education eliminated or greatly reduced in most member states;
  • preparation, launch and implementation of a 10-year UN Literacy Decade and Plan of Action in order to reach the target of achieving a 50% improvement in levels of adult literacy by 2015;
  • comprehensive and broad-based HIV/AIDS education and prevention campaigns conducted, particularly among the 15-24 age group in Africa and South Asia;
  • impact of HIV/AIDS pandemic on educational capacities assessed;
  • a Convention on the Diversity of Cultural Content and Artistic Expression, a Convention Against Doping in Sport;
  • a Declaration on Bioethics;
  • broadening of public debate on intellectual property and the fair use of works for educational, scientific and cultural purposes; and
  • enhanced knowledge to assist in earthquake risk reduction through re-enforcement of regional and worldwide exchange of seismic data.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $11,312,346 $10,224,596 $10,676,000 $11,074,000 $11,012,299 $ (336,299)
Total Contributions            
Comments on Variance: Canadian dollar weakened against euros at time of payment.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: UNESCO accounts are subject to internal audit and evaluation, as well as audit by external auditors on a biennial basis.


Name of Transfer Payment Program: UN Peacekeeping Operations (TB #828489)
Start Date: October 5, 2000 End Date: N/A
Description: Canada's assessed contribution to UN peacekeeping operations is a legally binding obligation of membership. For further information, see http://www.un.org.
Objectives: To support the peace process and stabilization of the security situation, and bridge the gap between security and longer-term peace building in affected countries through the timely establishment and maintenance of complex multidisciplinary UN peacekeeping missions.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.
Results Achieved: Enhanced peace and security for the countries and regions concerned. Increased levels of security, basic services and levels of governance provided in affected areas, which will promote advanced prospects for peace as well as enable reconstruction and development activities.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $126,713,199 $168,348,821 $211,612,00 $208,530,000 $147,928,358 $63,683,642
Total Contributions            
Comments on Variance: Scale increase less than expected, some missions were closed, delays in budget approval led to request for contribution payment pass FY. Most important consideration is the highly volatile nature of the operations.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: The UN has internal mechanisms as well as external auditors to audit the regular financial statements of the organization on a biennial basis.


Name of Transfer Payment Program: World Trade Organization (TB #831054)
Start Date: January 1, 1995 End Date: March 31, 2009
Description: The purpose of the TPP is to pay the assessed contribution for Canada's membership in the WTO.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.

Results Achieved: DFAIT worked with others internationally to successfully resume full Doha Development Agenda negotiations (in January 2007) and intensified efforts to bring these negotiations to a successful close. The department was a leader in helping to launch the "plurilateral" negotiating modality for services in the WTO, during early 2006. This approach to services negotiations was a key element of the WTO Hong Kong Ministerial Meeting decision. Canada continued to participate actively in the Rules Negotiations to clarify and improve subsidy disciplines and the rules governing anti-dumping and countervail investigations. For example, Canada tabled legal texts on start-up subsidies and public interest procedures.

DFAIT made some further progress on the accession of Russia (particularly through the multilateral process) and successfully brought Vietnam into the WTO on terms that will benefit Canadian goods and services exporters.

Canada participated in all standing and ad hoc meetings of the WTO in 2006 - 2007. These included, inter alia, regular participation in General Council meetings (which deal with institutional and administrative issues that have a strong trade policy component); the Dispute Settlement Body; the Trade Policy Review Body; WTO Informal Ministerial Meetings; Senior Official Meetings; as well as numerous other councils, committees, working parties, and negotiating groups covering the wide range of WTO issues. Other international work by Canada, such as that in the OECD, APEC and the Cairns Group, also supports our work at the WTO.

Overall, Canada participated in WTO Trade Policy Reviews of 19 countries in 2006 - 2007, including the TPRs of China, Japan and the European Communities. The Trade Policy Review is a peer review exercise designed to provide a collective appreciation and understanding of the full range of individual Members' trade policies and practices and their impact on the multilateral trading system.

In March, 2007 Canada was subject to its 8th Trade Policy Review at the WTO. The TPR of Canada provided an opportunity to discuss the evolution of Canadian trade policies and practices since 2003. The TPR led to an open discussion between Canada and its trading partners, confirmed Canada's commitment to the multilateral trading system and illustrated the contribution that sound economic policies an open and transparent trade regime can make to achieving high living standards.

Canada continued to be an active participant in WTO dispute settlement proceedings. Canada was a complainant in four ongoing disputes (U.S. - Continuing Dumping and Subsidy Offset Act of 2000 (Byrd), EC - Measures Affecting the Approval and Marketing of Biotech Products, China - Measures Affecting Imports of Auto Parts, and U.S. - Subsidies and Other Domestic Support for Corn and Other Agricultural Products). Canada was a defendant in three cases (Canada - Grain Corn from the United States (Preliminary Determination of Injury), Canada - Continued Suspension of Obligations in the EC-Hormones Dispute, and Canada - Tax Exemptions and Reductions for Wine and Beer). Disputes involving softwood lumber were either completed or terminated pursuant to the Softwood Lumber Agreement in 2006. Canada was also active as a third party in a number of important disputes, including U.S. - Continued Suspension of Obligations in the EC- Hormones Dispute, EC - Export Subsidies on Sugar and U.S and EC cases on Measures Affecting Trade in Large Civil Aircraft.

Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $6,797,404 $6,012,923 $6,832,000 $6,832,000 $6,239,870 $592,130
Total Contributions            

Comments on Variance: The difference between Canada's planned spending and actual spending over 2006-07 can be attributed to the following factors:

  1. An increase in the WTO budget that has been partially offset by a reduction in Canada's assessed share;
  2. Currency fluctuations between the Swiss Franc and the Canadian dollar; and
  3. The different dates when TB must be advised of Canada's estimated assessment and the date when the WTO budget is approved. Estimates for 2006-07 were presented to TB in September 2005. The 2007 WTO budget was approved in December 2006.

The approved 2007 WTO budget increased by 0.90% over 2006. Canada's assessed contribution was CHF 6,638,790, based on a 3.678% share or approximately CHF 439,000 less than the initial estimates presented in October 2005.

Contributions are determined according to each member's share of international trade, based on trade in goods, services and intellectual property rights, for the last three years for which data is available. A Member's share will change over time with the entry of new members.

There have been many pressures on WTO operations, especially in furtherance of the ongoing Doha Round negotiations following the 2005 Hong Kong Ministerial Conference. The number of WTO meetings is expected to continue to increase. Continued increases in the use of WTO services and the costs of the Dispute Settlement Body are also expected.

In past years, currency fluctuations have played an important role in the variance between planned and actual spending. They continue to do so. Contributions are paid to the WTO in Swiss Francs (CHF), and as such the cost in Canadian dollars changes depending on the exchange rate. On April 1, 2006, the exchange rate was CHF 1.0 to Cdn $1.1161. By December, when Canada's assessment was paid, CHF 1.0 equalled Cdn $1.0467.

Significant Audit and Evaluation Findings and URL to Last Audit and/or Evaluation: The last report of the external auditor is for the biennium 2004/2005. Their report can be found in WTO document WT/BFA/W/142. The external auditor for the period in question was the Austrian Court of Audit.

The auditors examined the Financial Statements in WTO document WT/BFA/W/128 relating to the financial period 2004 and the Financial Statements in WTO document WT/BFA/W/142 relating to the financial period 2005, both including Statements 1 to 6, Schedules A, B, C, D, E, F, G, H and an Annex. The auditors also examined the Financial Statements on Extra-Budgetary Funds in WTO document WT/BFA/W/143 relating to the financial period 2005 on a sample basis. Their examination included a general review of the accounting procedures and such tests of the accounting records and other supporting evidence, as they considered necessary in the circumstances. As a result of the examination, the auditors provided the opinion that the financial statements, which were prepared in conformity with the accounting policies described in the Annex of WTO documents WT/BFA/W/128 and WT/BFA/W/142 were applied on a basis consistent within the biennium 2004/2005. They presented fairly the financial position of the World Trade Organization as at the end of each of the two financial periods covering the biennium 2004/2005. The financial statements were prepared in accordance with the stated accounting principles. The transactions were in accordance with the Financial Rules and the Financial Regulations set out in WTO documents WT/L/157 and WT/L/156/Rev.1 including further instructions in WT/BFA/W/121 and with legislative authority.

BUDGET EXPENDITURE 2004-2005: Expenditure for the WTO and the Appellate Body Secretariat for 2004 amounted to CHF 158,824,886 equating to a budgetary saving of CHF 2,951,614. These budgetary savings were comprised of CHF 2,624,739 for the WTO Regular Budget and a budgetary surplus of CHF 326,875 for the Appellate Body and its Secretariat.

Expenditure for the WTO and the Appellate Body Secretariat for 2005 amounted to CHF 166,738,076 equating to a budgetary saving of CHF 1,965,324. These budgetary savings were comprised of CHF 1,790,561 for the WTO Regular Budget and a budgetary surplus of CHF 174,763 for Appellate Body and its Secretariat.

SURPLUS ACCOUNT 2004-2005: The Surplus Account for 2004 (Statement 3, document WT/BFA/W/128) showed a deficit amounting to CHF 3,036,427 as at 31 December 2004, due to the opening deficit balance of CHF 6,587,883 on 1 January 2004. This amount was covered from the Working Capital Fund in accordance with WTO Financial Regulation 26.4.

The Surplus Account for 2005 (Statement 3, document WT/BFA/W/142)) showed a deficit amounting to CHF 309,983 as at 31 December 2005, due to the opening deficit balance of CHF 3,036,427 on 1 January 2005. This amount was covered from the Working Capital Fund in accordance with WTO Financial Regulation 26.4.



Name of Transfer Payment Program: World Health Organization (TB #784857)

Start Date: January 1, 1990 End Date: N/A
Description: Canada's annual assessed contribution to the WHO is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to health and provide it with a voice in the international community.
Strategic Outcome: ADVANCING CANADA'S INTERESTS INTERNATIONALLY: In partnership with Canadians, Canada and its values are projected to the world, its interests are pursued abroad and Canadians are better able to interpret the world.

Results Achieved:

  • Enhanced global health security (maintaining a comprehensive outbreak alert and response mechanism supported by new international health regulations; responding rapidly and effectively in crisis situations);
  • Accelerated progress toward achieving the Millennium Development Goals (reducing maternal mortality, improving child survival, addressing the global pandemics of HIV/AIDS, tuberculosis and malaria, promoting healthy environments, increasing access to essential medicines);
  • Promotion of equity in health (strengthening health systems to reach the poor and disadvantaged); and
  • Ensured accountability, by improving organizational effectiveness, transparency and accountability.
Program Activity: Actual Spending
2004-2005
Actual Spending
2005-2006
Planned Spending
2006-2007
Total Authorities
2006-2007
Actual Spending
2006-2007
Variance Between planned and actual
Global Issues $14,883,072 $14,226,005 $18,314,000 $18,314,000 $14,373,484 $3,940,516
Total Contributions            
Comments on Variance: C$ strengthened against US$ at time of payment, scale increase less than anticipated, credit from previous FY05-06 payment that was made in Swiss francs and credit from timely payment incentive scheme.
Significant Audit and Evaluation Findings and URL to Last Audit and / or Evaluation: WHO accounts are subject to internal audit and evaluation, as well as audit by external auditors on a biennial basis.