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Ottawa blocking sale of ammo to U.S. could violate trade agreement: expert

by Sarkiya Ranen
in Health
Ottawa blocking sale of ammo to U.S. could violate trade agreement: expert
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‘If the U.S. doesn’t think we’re a reliable partner, or that we aren’t living up to the agreement, it may lead to a reassessment of an integrated approach to defence industries’

Published Sep 14, 2024  •  Last updated 1 hour ago  •  4 minute read

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Foreign Affairs Minister Mélanie Joly during a news conference at the Liberal caucus retreat in Nanaimo, B.C., on Tuesday, September 10, 2024. Photo by Darryl Dyck/The Canadian Press

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OTTAWA – The Liberal government’s move to block the sale of ammunition to the U.S. ultimately destined for Israel could violate a key Canada-U.S. military trade agreement, according to a defence procurement specialist.

Philippe Lagassé, a defence consultant to the government and university professor, also said that Ottawa setting up roadblocks for General Dynamics Ordnance and Tactical Systems in Quebec to sell ammunition to the U.S. risks raising doubts about Canada’s reliability as a military partner.

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On Tuesday, Foreign Affairs Minister Mélanie Joly confirmed that her Global Affairs department would continue to block any potential sale of Canadian-made weapons or weapon components that were destined to Israel.

“Our policy is clear: since Jan. 8, no new permits have been issued for the sending of weapons or weapon components to Israel,” Joly told reporters in French on Tuesday.

That includes the sale of Quebec-made mortar ammunition by General Dynamics to the U.S. government, she said. Washington last month announced its plan to provide the arms as part of a military package to Israel.

But Lagassé said if Joly receives a permit request from General Dynamics and blocks the sale to the U.S. government, Canada could be violating the 1956 Defence Production Sharing Agreement (DPSA), a key military trade deal between both countries.

“GAC (Global Affairs Canada) now seems to have decided to get involved to block the transaction. I suspect that’s either contrary or unusual under the DPSA,” he said in an email.

On Wednesday, Global Affairs Canada advised General Dynamics by letter that it could not use its general export permit to sell the ammunition destined for Israel to the U.S.

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Instead, GAC took the unusual step of telling the company it would have to seek an export permit specifically for the deal, according to the letter first reported by The Globe and Mail.

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A senior GAC official told National Post that the company has not yet made a request for the permit, but if it did now, it would be declined due to the ongoing embargo that Joly implemented in January.

“When the order is made, it will be the policy at that time that will apply. If it was today, the permit would not be approved de facto,” said the senior official, who was granted anonymity as they were not permitted to discuss the issue publicly.

On social media Friday, Israeli Prime Minister Benjamin Netanyahu deplored Joly’s recent comments on Canada’s military embargo against his country all the while thanking the “overwhelming majority of Canadians” who support Israel’s war against Hamas.

“Unfortunately, as antisemitic riots spread across Canadian campuses and cities, Minister of Foreign Affairs Melanie Joly announced an intention to place an arms embargo on Israel,” said the tweet on X from the Israeli prime minister.

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“With or without such an embargo, Israel will continue fighting for our two nations’ common cause in the war between civilization and barbarism.”

General Dynamics spokesperson Berkley Whaley referred questions to the U.S. government, which has so far remained silent on the issue.

U.S. Secretary of State Anthony Blinken said in August that the ammo deal with General Dynamics was worth around US$61.1 million and would help Israel defend itself.

“The proposed sale will improve Israel’s capability to meet current and future enemy threats, strengthen its homeland defense, and serve as a deterrent to regional threats. Israel will have no difficulty absorbing these articles and services into its armed forces,” the State Department said in a release.

Lagassé said in an email that he doubts the President Joe Biden’s administration would either retaliate or dispute Canada’s decision publicly. But the real issue is that it may raise concerns in the U.S. about the viability of the DPSA and push the Americans to rethink their close military relationship with Canada.

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“The Agreement is meant to ensure an integrated (Canadian-U.S.) defence industrial base. If the U.S. doesn’t think we’re a reliable partner, or that we aren’t living up to the agreement, it may lead to a reassessment of an integrated approach to defence industries,” wrote Lagassé, who specializes in defence procurement Carleton University and who has worked on Canadian defence procurement projects.

“Given the increased protectionism in the U.S., moreover, this type of move by Canada can raise eyebrows when we ask for exceptions and special treatment.”

Speaking to reporters Tuesday, Joly confirmed that the government had suspended and was reviewing around 30 general military equipment export permits for sales to Israel since the beginning of the year.

“We will not have any form of arms or parts of arms be sent to Gaza, period. How they’re being sent and where they’re being sent is irrelevant,” she added.

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Sarkiya Ranen

Sarkiya Ranen

I am an editor for Ny Journals, focusing on business and entrepreneurship. I love uncovering emerging trends and crafting stories that inspire and inform readers about innovative ventures and industry insights.

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