Money Trump Stays Publicly Quiet While Saudi Arabia-Canada Tensions Rise

03:30  10 august  2018
03:30  10 august  2018 Source:

Saudi Airlines to suspend Canadian flights

  Saudi Airlines to suspend Canadian flights TORONTO - The rift between the federal government and Saudi Arabia has prompted the country's state airline to suspend operations in Canada. Saudi Airlines issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13. Saudi Arabia operates at least two routes to the country, both of which depart from Toronto. Transport Canada did not immediately respond to request for comment on the decision. Saudi Airlines' Saudi Airlines issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13.

For now, both Saudi Arabia and Canada appear to be sticking to their positions. While the Saudi sanctions may touch individual sectors, they will not have a great impact on the Cam Dahl, president of Cereals Canada , said farmers were more likely to be troubled by the larger picture: the general rise

But as Canada ’s envoy heads home, the feeling among diplomats in Riyadh and elsewhere in the Arab world is that Saudi Arabia ’s new leadership wants to assert a new set of rules on the regional The Obama-era lecturing that so annoyed previous leaders will not be repeated while Trump is president.

(Bloomberg) -- The Trump administration is privately trying to coax Saudi Arabia to dial back hostilities with Canada even as the U.S. maintains a hands-off public approach to the escalating dispute between the two key allies, a senior U.S. official said.

The U.S. is now trying to do behind-the-scenes damage control after being caught off guard by Saudi Arabia Crown Prince Mohammad bin Salman’s move this week to expel the Canadian ambassador, freeze new trade deals and cancel direct flights to Toronto on its state airline, according to the official, who spoke on condition of anonymity.

U.S. officials believe Prince Mohammed thinks he has license from the U.S. to confront Canada, exploiting perceived tension between Washington and Ottawa over trade that emerged at the end of a Group of Seven summit in June. At the same time, President Donald Trump and his top advisers -- especially son-in-law Jared Kushner -- have been cultivating closer ties to the Saudi crown prince, a key supplier of oil who Kushner also wants to play a central role in his Israel-Palestinian peace plan.

Saudi Arabia expelling Canadian ambassador

  Saudi Arabia expelling Canadian ambassador Saudi Arabia expelling Canadian ambassador"We consider the Canadian ambassador to the Kingdom of Saudi Arabia persona non grata and order him to leave within the next 24 hours," Saudi Arabia's foreign ministry said on Twitter.

BEIRUT, Lebanon — Saudi Arabia lashed out at Canada on Monday for criticizing the recent arrests of Saudi rights activists, and threatened to break off trade with In foreign affairs, officials in Western and other Arab capitals say, Prince Mohammed has exacerbated tensions in an unstable region.

The president has vented privately about Canadian Prime Minister Justin Trudeau as their trade tensions have spilled into public view. Furthermore, he prefers visiting places where he is feted – such as on his trips last year to Riyadh, Saudi Arabia ; Beijing and Paris – over attending summits

The Trump administration has maintained a laissez faire approach to the row, refusing to publicly intervene in a crisis officials believe could take some time to resolve and has already created a series of diplomatic headaches.

‘Gravely Concerned’

Saudi diplomats did provide their American counterparts with an explanation for their recent actions, which came after Canada released a statement that said it was “gravely concerned” by the arrest of activists in the country and called for the immediate release of women’s rights campaigners Samar Badawi and Nassima al-Sadah, according to the official. Both activists were arrested in Saudi Arabia in July, according to Human Rights Watch.

But the extraordinary response on the part of the Saudis has led some within the Trump administration to conclude that Prince Mohammed is using the episode to demonstrate his control within the country -- and that avenues to reform travel through him. While the crown prince has sought to foster an international image as a social and economic reformer, he’s also ordered the detention of dozens of royal family members, government officials, and billionaires in what the government described as an anti-graft crackdown.

Canada not clear yet on Saudi retaliation

  Canada not clear yet on Saudi retaliation OTTAWA - A federal official says Canada remains unclear about the measures Saudi Arabia is taking in response to Canadian criticism of its human rights policies. The official says Foreign Affairs Minister Chrystia Freeland spoke with her Saudi counterpart Tuesday in part to get clarity about the measures, including one report that said Saudi banks and pension funds had been ordered to sell off their Canadian assets. Saudi Arabia has not confirmed that report, and the official — who spoke on condition of anonymity given the sensitivity of the matter — says a full understanding of their plans remains elusive.

Tapper: Many Trump allies are swamp critters 02:10. 2. Saudi Arabia and Canada . CDC sees 'steady increase' in drug-resistant bacteria (2016) 02:07. BREAKFAST BROWSE. Airbnb nixes opportunity to stay the night on the Great Wall of China.

Despite years of Israeli and Saudi propaganda, Iran isn’t actually an existential threat to either Israel or to Saudi Arabia . But Iran’s rise is definitely a challenge to The more dire regional threat, however, is that the Trump administration is showing every indication of wanting to escalate tensions with Iran.

Trump Tariffs

Relations between the U.S. and Canada deteriorated after Trump moved to impose tariffs on metals imports, hitting steel and aluminum sold from Canada. Trump left early from a June G-7 summit hosted by Canada, after which the Canadian leader told a press conference that U.S. tariffs were “kind of insulting.” The U.S. president responded by refusing to endorse the session’s joint communique, and tweeted that Trudeau was “dishonest” and “weak.”

Global Affairs Canada declined to comment on diplomatic correspondence, and Trudeau’s office didn’t respond to a request for comment.

Chrystia Freeland. © Bloomberg Chrystia Freeland.

Canadian Foreign Minister Chrystia Freeland hasn’t yet spoken to Pompeo or any other U.S. counterpart on the Saudi issue since it erupted, though she has spoken to her German, Swedish and UAE counterparts, according to a Canadian government official, who spoke on condition of anonymity because they’re not authorized to speak publicly.

Canada’s dispute with Saudi Arabia has agriculture industry on edge

  Canada’s dispute with Saudi Arabia has agriculture industry on edge Market access is not a new problem for the grain industry and this latest tiff with Saudi Arabia adds to the struggle."The consequences are quite negative extensively, everywhere," says business manager John Van Hierden.

Royal welcome for Trump in Saudi Arabia as troubles mount at home. The president, who met with King Salman, hopes his five-stop foreign President Trump and Indian Prime Minister Narendra Modi embrace while delivering joint statements in the Rose Garden of the White House on June 26, 2017.

Despite years of Israeli and Saudi propaganda, Iran isn't actually an existential threat to either Israel or to Saudi Arabia . But Iran's rise is definitely a challenge to The more dire regional threat, however, is that the Trump administration is showing every indication of wanting to escalate tensions with Iran.

Canada doesn’t have any official clarity yet on what precisely Saudi has ordered in terms of dumping assets, only what the Financial Times and others have reported, the official said.

The Saudi reaction wasn’t to the scale of anything Canada has seen in the past, despite previous public comments on the issue of women’s rights activist arrests and human rights in the kingdom in general.

Out of Favor

The Saudis may be attempting to capitalize on the rift, believing Trump would be unlikely to come down hard in defense of an ally who has fallen out of favor, the official said. So far, that calculation appears to be correct.

State Department spokeswoman Heather Nauert, asked about the spat during a press conference on Tuesday, said that “both sides need to diplomatically resolve this together.”

“We can’t do it for them,” Nauert added. “They need to resolve it together.”

The U.S. has decided to work privately on a resolution, the official said, including attempts to prevent the Saudis from doing more than they’ve already done.

The U.S.’s silence has been mirrored by other key Canadian allies, including the U.K. That’s contributed to the sense that Ottawa has received little international support as it sought to champion human rights.

‘A huge curveball’: Canadian Muslims travelling for hajj nervous amid political tensions

  ‘A huge curveball’: Canadian Muslims travelling for hajj nervous amid political tensions The annual hajj pilgrimage takes place Aug. 19-24 this year, but several Canadian Muslims are departing this week.Mehek Mazhar and her husband had been planning on going for hajj, a pilgrimage Muslims around the world make to Saudi Arabia, ever since they got married.

In addition, Mr. Trump is now threatening to “terminate” the nuclear deal (breaking with European allies and the rest of the United Nations Security Council); unconditionally supports Iran’s biggest adversaries, Saudi Arabia and Israel; and recently recognized Jerusalem as Israel’s capital

The last four presidents confirmed their first trips abroad to Canada and Mexico, but Trump is going big before going home. United States flag is seen as royal guard patrols the hotel where US President Donald Trump will stay in Riyadh, Saudi Arabia , on Friday.

Billions at Stake

The U.K. under Theresa May has been consumed by the task of completing the terms for Brexit and is loath to irritate the Saudis given the billions at stake in defense contracts and the potential for lucrative trade deals. May openly pitched London as a listing destination for Aramco, Saudi Arabia’s oil company, and gave Prince Mohammed a warm welcome in March during a high-profile visit that drew protests.

a group of people standing in front of a building: A demonstration during Mohammed bin Salman’s visit to London in March 2018. © Bloomberg

A demonstration during Mohammed bin Salman’s visit to London in March 2018.

At Trump’s urging, Saudi Arabia has boosted oil production in recent months, limiting the impact on consumers of the president’s decision to reimpose sanctions on Iran. Trump criticized OPEC on Twitter after the London crude price hit a three-year high of more than $80 a barrel in May. The commodity has since retreated to around $72 a barrel.

Saudi Arabia is also seen as the linchpin to the president’s proposal to create a new security alliance in the Middle East -- a so-called Arab NATO -- intended to limit Iranian influence in the region.

Regardless of motivation, the relative U.S. silence on the issue has been noticed in Ottawa. The American response is “a glimpse of what the world looks like without the U.S. advocating for human rights,” Roland Paris, a University of Ottawa professor and former Trudeau foreign policy adviser, said in an interview.

“Right now there is very little solidarity," he added.

--With assistance from Greg Quinn and Stephen Wicary.

To contact the reporters on this story: Nick Wadhams in Washington at;Justin Sink in Washington at

To contact the editors responsible for this story: Alex Wayne at, Joshua Gallu, Chris Fournier

©2018 Bloomberg L.P.

Canadian dollar gets whacked after Saudi Arabia reportedly starts dumping the country's assets 'no matter the cost' .
The Canadian dollar slid Wednesday after the Financial Times reported that Saudi Arabia had begun selling off its holdings of the country's bonds, stocks, and cash.According to the FT's Simeon Kerr, Saudi Arabia ordered the divestments "no matter the cost" after Canada criticised its arrest of Samar Badawi, a women's rights activist. Saudi central bank and state pension funds told their overseas asset managers to unload Canadian bonds, stocks, and cash holdings "no matter the cost," the report said. The selling began on Tuesday, it said.

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