Wednesday, August 8, 2018

Is Oily Econo-Politics Behind Saudis’ Crude Canadian Diplomacy?

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TORONTO — In a near repeat of Saudi Arabia’s feud with Qatar last year, the diplomatic spat between the Saudis and the Canadian government seems to have spiralled out of control after it began last Friday. Apparently beginning as a result of the Canadian Foreign Ministry’s decision to criticize via Twitter the Saudi government’s arrest of the sister of detained Saudi activist Raif Badawi, the days since have seen the Saudis expel the Canadian ambassador, suspend flights to Canada, recall around 15,000 Saudi students studying abroad, and freeze new trade and investment in Canada, among other measures.

The most disturbing exchange between the two countries took place on Monday when a Saudi state-sponsored Twitter account tweeted a graphic appearing to show an Air Canada airliner heading toward the Toronto skyline in a way similar to the September 11th attacks, in a gesture that seemed to imply that the Saudis would target Canada for its “interference” in the kingdom’s internal affairs.

Then, early Wednesday, Saudi resolve to punish Canada for its criticism of the kingdom’s treatment of domestic dissenters and activists was again made clear after the Saudi central bank and state-managed pension funds ordered their foreign-based asset managers to liquidate their Canadian equities, bonds and cash holdings “no matter the cost.” Those funds were estimated by the Financial Times at around $100 billion.

That announcement was then followed by a statement from Saudi foreign minister Adel Al-Jubeir, who asserted that “What Canada did was unacceptable […] There is no need for mediation, Canada knows what it needs to do, it must change its policies, ways with The Kingdom.” He then ominously warned that the “Saudis are still weighing other measures to take against Canada.”

If Riyadh’s on-going squabble with Qatar is any indication, the Saudis are likely to continue to flexing their political and economic muscle in an effort to push the Canadian government to capitulate, even if it results in the Saudis pushing truly bizarre countermeasures.

Yet, while the Saudis themselves and much of the media coverage have painted the increasingly bizarre stand-off as a result of “human rights” concerns, it is unlikely that Saudi Arabia’s offense at a single tweet from the Canadian Foreign Ministry is to blame for the rapid decay in bilateral relations.

Indeed, some have speculated that the fierce response from the Saudis is intended to serve as a warning to any other government that would seek to criticize Saudi policy, particularly those policies ordered by the kingdom’s “reformer,” Crown Prince Muhammad bin Salman (MBS). If this is the case, the high price Canada is paying for a single tweet critical of the Saudi government is a clear sign to other nations that the Saudi government will not tolerate dissent in any form, whether from its own people or from other nations.  (more...)

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