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Saudis punished Canada by halting shipments in ports, denying visas: memo

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OTTAWA — The fallout from Saudi Arabia’s move to punish Canadian companies was felt within a month of the countries’ sudden diplomatic feud last summer, leading to visa rejections, a government ban on food from Canada and a blockage of shipments at the kingdom’s ports.

A newly released federal document provides a close look at Saudi Arabia’s retaliation against Canada, following criticism by Foreign Affairs Minister Chrystia Freeland on Twitter of the regime’s arrest of women’s rights activists.

Angered by the public condemnation, Saudi Arabia suspended diplomatic ties with Canada last August, expelled the Canadian ambassador and recalled its own envoy from Ottawa.

The kingdom also stopped future trade and investment deals, cancelled grain imports and said it would shut down lucrative scholarships for its citizens to study in Canada. The Saudi central bank and state pension funds started selling their Canadian holdings.

A briefing note to International Trade Minister Jim Carr offers more detail on how events were unfolding on the ground about a month after the start of the dispute.

“It is important to note that over the last few days Global Affairs Canada has been learning of concrete actions taken by Saudi Arabia against Canadian companies across various sectors,” reads the memo, released this week to The Canadian Press under access-to-information law.

The document went on to list numerous measures, including:

— Requests for existing contracts to be replaced by new contracts with non-Canadian suppliers.

— Denial of access to military bases.

— Payment delays.

— Re-routing of flights for product supplies.

— Prevention of a Canadian company from importing and selling medication.

— Government ministries issuing orders to ban food and medication from Canada.

— Various shipments from Canada being completely stopped at Saudi ports.

The note was created last September for Carr in preparation for his meeting with members of the Canada Arab Business Council, who have interests in the kingdom.

The additional details of the dispute with Saudi Arabia emerge as Canada tries to manage other, bigger trade-related challenges with its two largest partners, the United States and China.

Saudi Arabia has previously been a key partner for Canada in the Middle East and, according to a separate internal briefing note, the countries had more than $4 billion worth of trade in 2017. That year, Saudi Arabia had $1.28 billion worth of direct investment in Canada, said the memo prepared for Finance Minister Bill Morneau after the crisis broke out.

Scott Jolliffe, the president of the Canada Arab Business Council, said in an interview that Saudi investment in Canada ground to a halt last August. He also said Canadian firms have been restricted from bidding on new projects in the kingdom.

On the other hand, he said things have mostly carried on as usual for those of his members who already had business in the country. Jolliffe also said he hadn’t heard of any visa refusals.

He said he would like to see the impasse resolved because Saudi Arabia and the region offer billions of dollars’ worth of potential business for Canadian companies — and possible alternatives to the U.S. There’s a deep need there, he added, for the expertise Canada offers in areas like infrastructure, telecommunications and engineering.

“At the moment, it doesn’t appear as if there is much going on to strengthen and rebuild the relationship,” said Jolliffe, who’s had meetings with Carr about the issue.

The feud has had an impact on agriculture. Feed-barley producers, for instance, have been shut out of the Saudi market.

“Any country we lose, even if it’s temporary, hurts us,” said Dave Bishop, a farmer and chair of Alberta Barley.

He said Canada had been shipping about 122,000 tonnes of feed barley to Saudi Arabia every year — amounts that can sometimes reach 10 per cent of all Canadian exports of the product.

This year, the industry has been lucky that feed barley is in short supply worldwide and extra demand from markets like China has helped make up for being shut out of Saudi Arabia, Bishop added.

The memo to Carr last September said Freeland and Saudi Foreign Minister Adel al-Jubeir, in an effort to resolve the conflict, “have been discussing ideas to de-escalate … including an incremental approach which could include a series of steps.”

Asked about the status of Saudi-Canadian relations now, Carr’s office provided a statement that said he’s still disappointed with the kingdom’s response to Canada’s human-rights concerns.

A few weeks after Carr received the memo, the kingdom’s relationship with Canada came under further strain — as did its relations with many countries — as details emerged about the murder of journalist Jamal Khashoggi inside the Saudi consulate in Istanbul.

Adam Austen, a spokesman for Freeland, said Thursday that Saudi Arabia’s explanations for the killing have been inadequate and that Canada has called for a thorough, credible and independent international investigation.

Andy Blatchford, The Canadian Press

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Agriculture

Carbon Tax and Clean Fuel Standard a double blow to Canadian farmers

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This post is submitted by Red Deer Mountain View MP Earl Dreeshen

MP DREESHEN TABLES PETITION ON CARBON TAX

AND CLEAN FUEL STANDARD IN HOUSE OF COMMONS

MP Earl Dreeshen tabled a petition in the House of Commons today, on Canada’s Agriculture Day, calling on the Liberal government to exempt all direct and indirect input costs that the Carbon Tax imposes on farmers, while also calling on the government to repeal the Clean Fuel Standard.

“Canadian farmers and ranchers are losing tens-of-thousands of dollars in net income each year because of the Liberal government’s ill-conceived carbon tax and that is simply not sustainable for most of them,” MP Dreeshen said.

‘Our global competitors are not burdened by the huge carbon tax debt. But Canadian farmers and ranchers do not have the ability to add the carbon tax levy to the price of their product. They have to pay this tax as it is levied by their input suppliers. Exempting input costs will put Canadian farmers on an equal footing with their international competitors and allow them to keep producing the world’s best and most nutritious foods.”

The Liberal government announced at the end of last year that the carbon tax will triple to $170 per tonne by 2030 following a commitment made in the last election that the tax would not increase beyond $50 per tonne. According to the Parliamentary Budget Officer, a farm in Alberta with 850 seeded acres of crops can expect the Liberal government’s carbon tax cost it more than $17,000 per year once the tax reaches $50 per tonne in 2022.

The Liberal government is also proceeding with the so-called Clean Fuel Standard, which some studies estimate will represent a total cost to the Canadian economy of $7 to $15 billion and 50,000 lost jobs, including an impact of $389 million to the Agricultural sector. “Nobody needs or wants an extra tax on top of another tax so we need to repeal the CFS before it even gets off the ground,” MP Dreeshen said.

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Agriculture

Olymel temporarily closes due to COVID-19

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This is a news release from Olymel L.P.

Olymel announces the temporary closing of its Red Deer plant

Olymel management is announcing the temporary closing of its hog slaughtering, cutting and deboning plant in Red Deer, Alberta. Despite the testing protocols and sanitary measures already in place, as well as the close collaboration of Alberta Health Services to deal with a resurgence of positive cases of Covid-19 among plant employees, Olymel management believes that the conditions are no longer assembled to continue normal operations in a safe and efficient manner.

After notifying the union, Olymel management drew up an orderly temporary closing plan for an indefinite period. Over the next few days, plant management will mobilize the staff necessary to cease operations and complete the facility closure as soon as possible. The sanitary measures will continue to be in effect at the plant during the shutdown and Olymel management will be in contact with officials at Alberta Health Services to continue working closely with this organization.

Olymel sincerely hopes that all employees at the Red Deer plant who have tested positive for Covid-19 soon regain their health. The company will follow up with all employees to ensure their quarantine period is being respected and will strongly encourage all staff to get tested before returning to work. Olymel will also continue ongoing investigations to determine what may have caused such a large outbreak of Covid-19 cases since January 20.

Olymel management has also informed all hog suppliers of the Red Deer plant of the situation and has suspended all pending deliveries until further notice.

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