FAAE Committee Report

GOVERNMENT RESPONSE TO THE SIXTH REPORT OF THE STANDING COMMITTEE ON FOREIGN AFFAIRS AND INTERNATIONAL DEVELOPMENT, ENTITLED “CANADA-U.S. RELATIONS: OLD CHALLENGES, NEW OPPORTUNITIES”

Canada and the United States enjoy a unique bilateral relationship.  It is forged by shared geography, common values and interests, vibrant social connections and powerful, multi-layered economic ties.  The result is a long-standing, deep and mutually beneficial partnership.

RECOMMENDATION 1

1.    Given the need to address urgent global challenges while also strengthening relations between Canada and the U.S., the Committee recommends that the Government of Canada reinforce engagement with the U.S. in order to achieve common foreign policy objectives.  Specifically, this would include more intensive work on bilateral issues, economic and commercial relationships, as well as making diplomacy a keystone of its foreign policy in pursuit of common objectives.

2.    The Government of Canada is committed to robust and strategic engagement with the U.S.  As neighbours and major trading partners sharing many common values, our high-level engagement with the U.S. is focused on cooperation on issues which are of mutual interest.

3.    In such a large and complex relationship, irritants do arise; what is important is that we work through them, and ensure that they do not shape the relationship.  The Canada-U.S. relationship has proven itself to be resilient even in times of controversy as it is predicated on common values and goals. Advocacy – both proactive and responsive – is an essential way of dealing with issues in the bilateral relationship and defending Canadian interests.

4.    Canada-U.S. relations were strengthened and renewed through the successful visit of President Obama to Ottawa on February 19, 2009.   The meeting between the Prime Minister and President helped advance a strong working relationship with the new Administration.

5.    During this first bilateral meeting, Leaders established a robust agenda for cooperation.  The agenda focused on restoring economic growth and creating/saving jobs; energy security and the environment; and on cooperation in addressing international security challenges.  The Leaders’ joint statement focused on two specific initiatives: the launch of the Canada-U.S. Clean Energy Dialogue and a process to review the management of the border.

6.    Follow-up on these agenda items was addressed at the successful bilateral meeting between the Leaders on September 16, in Washington, D.C.

Proactive Engagement

7.    Employing a whole-of-government approach, more than twenty Ministers have made over thirty visits to Washington, D.C. (in addition to visits to other missions and states) since Inauguration Day to meet with their counterparts.  On these visits, Ministers have met with members of Congress, lobbyists, and think tanks, to advance Canada’s interests with key policy-planners and decision-makers.

8.    The Embassy in Washington, the Consulates-General, and the Consulates play a key role in Canada’s engagement with the U.S.  These missions represent Canada’s interests to our neighbours, while providing critical analysis of emerging issues of concern to Canada.  Officials at the missions support the important work of Ministers by providing strategic input to Ottawa and conveying messages from American officials.  The missions are the primary agents for delivering advocacy messages, not only to the federal government, but also to state legislatures, academia and the local business community.

9.    The Canadian Ambassador in Washington, D.C., plays a key role in the management of the relationship.  Canadian Ambassadors traditionally enjoy extensive access in Washington (to the White House, Congress and executive departments), which allows the Ambassador to serve as the authoritative Canadian interlocutor.

10.    Through strong interdepartmental cooperation, and existing mechanisms with provinces and territories, the Government promotes policy coherence, and fosters effective advocacy in our engagement with the U.S.

Increasing Canada’s Representation

11.    Reinforcing Canada’s diplomatic efforts in the U.S. has been ongoing for a number of years.  At the turn of the millennium, Canada had twelve Consulates or Consulates-General, and two trade offices, as well as the Embassy in Washington, D.C.  Recognizing that shifting demographics in the U.S. over the past two decades had seen political clout and economic power migrate to the South and West, an initiative was undertaken to strengthen existing missions and to open missions in these influential and under-serviced regions.

12.    This re-alignment saw the opening of a number of new Consulates and Consulates-General and the creation of nearly 100 new positions.  Moreover, several Honorary Consuls were created to provide representation in other large U.S. cities.  This enhancement of Canadian representation increased Canada’s influence across the U.S. at the grassroots (local/regional) level, strengthened Canada’s ability to serve its Canadian business clients in economically important regions and enhanced Canada’s ability to reach different levels of decision-making throughout the U.S. 

13.       The Washington Advocacy Secretariat was also established and was mandated to serve federal-level departments, as well as the provinces and territories.  The opening of the Secretariat allowed for an inclusive, whole-of-Canada approach to advocacy, while continuing the successful tradition of speaking with one voice.  The Congressional Relations section of the Embassy has been a large beneficiary of this new directive as provincial representatives have added capacity to the Congressional Relations section, permitting more frequent contact with the legislative body.  This approach also allows for cost-sharing with partners.

Highlights of Engagement with the Obama Administration

14.    Economic cooperation is the first order of business between Canada and the U.S.  With the current economic climate, Canada is working closely with its neighbour on the economy, in particular on the global recovery.  For example, Canada has worked in concert with the U.S. in restructuring the North American auto sector; internationally, we have worked closely in the context of the G20 and G8. Canada has also been active in raising its concerns about protectionism, including its concern about the expanded Buy American provisions in the U.S. economic stimulus package.

15.    Announced at the Leaders’ meeting in Ottawa on February 19, 2009, the Canada-U.S. Clean Energy Dialogue will result in closer cooperation on clean energy technologies to reduce greenhouse gas emissions and combat climate change.  In particular, the collaboration is focused on three areas: developing and deploying carbon capture and storage technologies; expanding clean energy research and development; and, building a more efficient electricity grid based on clean and renewable generation.

16.    Border management must operate in such a way that terrorists and criminals are kept out but the legitimate flow of people and goods is not compromised.  Recognizing this, Public Safety Minister Van Loan and Homeland Security Secretary Napolitano have committed to meeting biannually to discuss border issues and their solutions.  At their first meeting in May, 2009, they agreed to a Joint Statement on the Canada-U.S. Border.  The statement highlights a shared determination to tackle common threats as they relate to the border, including terrorism and organized crime and commits to a collaborative approach to the border.

17.    In June, 2009, Minister of Foreign Affairs Cannon and Secretary of State Clinton announced that Canada and the U.S. would begin negotiating amendments to the Great Lakes Water Quality Agreement, first signed in 1972.  This Agreement is a binational mechanism for restoring environmental quality and preventing further degradation of the Great Lake Basin ecosystem.

RECOMMENDATION 2

18.    The Committee recommends that the Government of Canada propose the re-introduction of the practice of regular, scheduled meetings between Canada’s Minister of Foreign Affairs and the U.S. Secretary of State, at a minimum of twice a year.

19.    The Government of Canada strongly supports regular meetings between Canadian Ministers and their U.S. counterparts, recognizing that a strong personal connection and rapport greatly aids in issue resolution.  To this end, the Minister and his counterpart, Secretary of State Hillary Rodham Clinton, have met bilaterally four times since her Senate confirmation on January 21, in addition to numerous encounters at international fora and two telephone calls.

20.    Although not part of a scheduled plan, the Minister and the Secretary of State are committed to meeting regularly.  Close working contacts, geographic proximity and regular international events ensure that this will be possible.  These encounters allow for maximum flexibility while ensuring a desirable amount of direct, first-person communication.  Such an approach avoids duplication and redundancies and provides for cost-savings as the Minister and Secretary tend to meet on the margin of events which they would normally be attending.

21.    It should also be noted that the Deputy Secretary of State meets at least once a year with the Deputy Minister of Foreign Affairs; these meetings supplement those of the two ministers.

RECOMMENDATION 3

22.    Notwithstanding current economic challenges, the Committee recommends that the Government of Canada urgently develop a plan to significantly increase the capabilities of Canadian diplomacy, and commit to the necessary funding for the Department of Foreign Affairs and International Trade.

23.    In response to DFAIT’s strategic review in 2007, an internal process was launched to make the Department more flexible to respond to the future agenda, while focusing on its core mandate.  The aim is to ensure that the right people are in the right places serving Canadians and that DFAIT is a centre of continuous innovation and new thinking.

Funding DFAIT

24.    Over the decade of 1998-2008, DFAIT saw its funding increase by nearly $ 1 billion, from $ 1.26 billion to $ 2.11 billion.  With this substantial increase in resources, DFAIT has been able to greatly expand Canada’s diplomatic capacity, notably through such projects as the Global Partnership Program (to reduce the threat of weapons of mass destruction worldwide), the Stabilization and Reconstruction Task Force or START (to coordinate the Government’s response to international crises) and the Counter-Terrorism Capacity Building Program (to provide assistance to increase states’ capacity to prevent and respond to terrorist activities).  These programs deliver on Canadian commitments made at international fora, and demonstrate not only our sensitivity to important global issues, but also our commitment to accountability.

25.    Beginning with Budget 2007, the Government made a commitment to a more disciplined approach to managing its spending to ensure programs were achieving their intended results.  A key pillar of this system is the ongoing assessment of all direct program spending, i.e., strategic reviews. Strategic reviews ensure that programs are managed effectively and efficiently. 

26.    Following DFAIT's strategic review in 2007, Budget 2008 announced $ 89 million over two years to support and nearly $ 80 million ongoing in new resources to strengthen Canada's mission network.  This is in addition to the $ 50 million a year provided in Budget 2007 for investments in the Global Commerce Strategy.  Combined, these two investments contribute to the continued improvement in the delivery of DFAIT's core mandate which is advancing Canadian interests and values in the world and providing Canadians with vital consular, business and diplomatic services.