Honouring the Contract with Saudi Arabia: Credibility, Security, Economy

The federal government is committed to increasing the rigour and transparency of

Canadas export control regime.
That is why the government is undertaking a review of Canadas current export
control measures to find ways to make the process more open, transparent, and
accountable.
This initiative will be further strengthened by the Government of Canadas
expressed intention to sign and implement the Arms Trade Treaty (ATT).
Signing the ATT is part of a broader effort to restore Canadas role as a constructive
actor on the world stage, and to contribute to global security and stability. It will be
just one component of the Government of Canadas review of export controls in
order to increase their rigor and transparency.
In the context of this review, the Minister of Foreign Affairs has signed the export
permit for Light Armored Vehicles produced by General Dynamics Land Systems
Canada in London, Ontario to be sold to Saudi Arabia, as negotiated by the previous
government. All parties in the last election expressed support for the honouring of
this contract.
Working with the Saudis allows us to hold them to account and creates
opportunities to make progress on a range of issues, including human rights.
Honouring the Contract: Detail
The Government has provided our reasons for honouring the contract on many
occasions. Each is mutually reinforcing of the other and, taken together, provide a
comprehensive basis for explaining our decision.
Our government is committed to advancing human rights everywhere, including in
Saudi Arabia. We never miss an opportunity to raise issues with our Saudi
counterparts nor do we miss opportunities to exploit positive forms of diplomacy.
For example, there are over 16, 000 Saudi students attending our universities,
which will help to promote a greater appreciation of Canadians values, including the
importance of diversity and gender equality. If we drop the contract, we set back the
clock on positive efforts like this too. And we will simply hand the contract to
another non-Canadian - possibly more ambivalent provider.
Since 1986, Canada has had a stringent process in place for approving export
permits for the sale of military equipment. One of the considerations is whether the
equipment being sold would be used to violate human rights. Different versions of
this military equipment were provided by Canadian companies in Saudi Arabia since
1993; all checks to date indicate that Saudi Arabia has not misused the equipment
to violate human rights. Nor has the equipment been used in a manner contrary to
the strategic interests of Canada and its allies.
For the future, as with all export permits, the Minister of Foreign Affairs retains the
power to revoke the permit at any time. If the equipment is abused, the permits are

pulled. This is what I am committed to doing if these military vehicles are used for
the wrong purposes. The Prime Minister has tasked me with exercising this power
with the greatest rigour and increased transparency.
Saudi Arabia is a strategic partner in an increasingly dangerous and volatile region.
We will not weaken the credibility of the signature of the Government of Canada. If
the contract were cancelled, the Canadian taxpayer would likely incur significant
financial penalties. Cancellation would deprive almost 2,000 workers of their
livelihood, principally in London, Ontario. We must take into account the chain of
repercussions for an industry on which around 70,000 jobs directly depend, and
which plays an important role in fostering research and development in Canada.
Canada has some of the strongest export controls for military and strategic goods in
the world. Our Government has committed to being more vigilant than ever about
human rights and to make them even stronger.
In case needed, a little more detail on the ATT
The ATT is an international treaty that aims to reduce the illicit trade of arms. It is
designed to stop unregulated and irresponsible arms transfers, and promote
responsibility, transparency, and accountability in the global arms trade.
The Arms Trade Treaty has already been signed by 130 countries, and takes
important steps to reduce the suffering of the millions of people around the world
who are affected by armed conflict. The Government of Canada will sign the
treaty by the end of 2016, fulfilling a key Liberal campaign promise.