Saudi Arabia Expels Canada Diplomat and Will Stop Buying Canadian Wheat, Barley

Canada asked Saudi Arabia to free activists. In response, Saudia Arabia told Canada to butt out of its internal affairs.

Trade tensions are heating up and this time it is Canada in the spotlight. A Saudi Arabian Agency Stops Buying Canadian Wheat, Barley as a diplomatic dispute escalates.

Saudi Arabia’s main state wheat buying agency has told grains exporters it will no longer buy Canadian wheat and barley in its international tenders, European traders said on Tuesday, as a diplomatic dispute between the two countries escalates.

Traders said they had received an official notice from the Saudi Grains Organization (SAGO) about its decision.

Canada on Monday refused to back down in its defense of human rights after Saudi Arabia froze new trade and investment and expelled the Canadian ambassador in retaliation for Ottawa’s call to free arrested Saudi civil society activists.

“As of Tuesday August 7, 2018, Saudi Grains Organization (SAGO) can no longer accept milling wheat or feed barley cargoes of Canadian origin to be supplied,” a copy of the notice seen by Reuters said.

One Middle Eastern grain consultant said the decision was not a great loss to Canada, though.

“Both Canada and the U.S. lost the Middle East market a long time ago ... because they are at a freight disadvantage (with higher ocean shipping costs) to the EU and Black Sea export markets,” the consultant said.

Global Trade Tensions

This may be a small loss to Canada, but it's another strong signal that countries are willing to impose tariffs and sanctions on the flimsiest of reasons.

Mike "Mish" Shedlock

Comments
No. 1-4
KidHorn
KidHorn

And we blame all problems in the ME on Iran and Russia.

SweetKenny
SweetKenny

The Saudi empire is dying - good riddance.

Realist
Realist

More trade tensions; more losses for all involved. Trump has managed to expand trade wars and the politics of hate to other countries. Too bad that his success results in the world being worse off.

Tengen
Tengen

The Bitter Lake agreement will go down as one of the great blunders of the 20th century. Propping up the House of Saud along with their constant promotion of Wahhabism was harmful not only to the west, but especially to the rest of the Sunni world.

Would be nice if the Donald left MbS to his own devices, hopefully to fail in Yemen and face increasing internal dissent. He needs to stay away from glowing orbs and sword dances to do this, however.

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