Trudeau says Canadians expect ‘consequences’

PM suggests Ottawa may cancel arms deal with Saudi Arabia over killing of journalist

Prime Minister Justin Trudeau appeared to be inching closer Wednesday to cancelling Canada’s $15-billion deal to sell light armoured vehicles to Saudi Arabia.

On Tuesday, Trudeau seemed reluctant to cancel the deal, billed as the largest arms deal in Canadian history. He cited significant financial penalties — as much as $1 billion or more — built into the contract signed by the previous Conservative government.

But on Wednesday he said Canadians expect there to be “consequences” for the brutal murder of journalist Jamal Khashoggi, who was killed earlier this month after entering the Saudi consulate in Turkey. And he suggested his government is looking for ways to cancel the arms contract without triggering the penalties.

“We are a looking at ... suspending export permits, which is something we’ve done in the past,” Trudeau said on his way into a Liberal caucus meeting.

“Were also looking at the contract to try and see what we can do because obviously, as we get clarity on what actually happened to Jamal Khashoggi, Canadians and people around the world will expect consequences.”

The Saudi government has said Khashoggi died in a fist fight but Canada and other countries say Riyadh’s explanation lacks credibility and are calling for a detailed investigation. Turkish officials say a 15-man Saudi hit squad — including at least one member of Saudi Crown Prince Mohammed bin Salman’s entourage — murdered and dismembered Khashoggi, whose body has not been found. Prince Mohammed said Wednesday that the killing of Khashoggi is a “heinous crime that cannot be justified.” He made the comment at the Future Investment Initiative, the second annual summit of global investors in Riyadh.

Many international business leaders have pulled out of this year’s summit over the killing of Khashoggi. But several Canadian companies refuse to say whether they’re attending. SNC-Lavalin, which has extensive business ties with Saudi Arabia, will not say whether it has sent anyone to the summit. Canaccord Genuity Group Inc., whose executive chairman was listed as a speaker at last year’s summit, and Bombardier Inc. did not respond to queries.

Other companies that attended last year — including the Canada Pension Plan Investment Board and Brookfield Asset Management Inc. — say they won’t be going this year.

A senior government insider told The Canadian Press last week that cabinet ministers, federal officials and embassy staff would also be skipping the summit.