Saudi talks tough in row with Canada
SAUDI Arabia said yesterday that there is no room for mediation in the kingdom’s deepening diplomatic dispute with Canada, and that Ottawa knew what it needed to do to “fix its big mistake.”
“There is nothing to mediate. A mistake has been made and a mistake should be corrected,” Foreign Minister Adel al-Jubeir told a news conference in Riyadh. In an indication that the quarrel may worsen, Jubeir said the kingdom was still “considering additional measures” against Canada, but did not elaborate.
Saudi Arabia on Sunday froze new trade with Canada and expelled the Canadian ambassador in retaliation for Ottawa’s call to free arrested Saudi civil society activists.
It also ended state-backed educational and medical programs in Canada, making plans to relocate tens of thousands of Saudi students and patients to other countries.
Responding to a question about the reason for the activists’ arrests, Jubeir said charges against them would be made public once their cases reach the courts, repeating earlier allegations that they had been in touch with foreign entities.
“The matter is not about human rights; it is a matter of national security,” the minister said.
Canadian investments in Saudi Arabia were still ongoing and would not be affected by the dispute, he said.
On Tuesday, Reuters reported that Canada plans to seek help from United Arab Emirates and Britain to defuse the row, citing sources familiar with the matter. The Financial Times reported the Saudi central bank and state pension funds had instructed their overseas asset managers to dispose of their Canadian equities, bonds and cash holdings “no matter the cost.”
The central bank did not immediately respond to a query for comment. A Canadian departmental spokesman said Global Affairs Canada continues to seek clarity from the Saudi Arabian government on various issues.
A source at a Saudi bank said the bank was contacted by the central bank asking for information about all their Canadian exposure — investments in Canada and foreign exchange positions.
The bank had received no instructions to sell assets as they do not have any exposure there, the source said.
The Canadian dollar weakened to a two-week low against its US counterpart yesterday as oil prices fell after the FT report.
Canada’s share of Saudi Arabia’s forex reserves would likely not be enough by itself to hurt the loonie, said Mark McCormick, North American head of forex strategy at TD Securities.
The row threatens to slow Riyadh’s foreign investment drive, a campaign already unsettled by a series of assertive foreign policy initiatives by the top oil exporter.