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Wednesday, 8 August 2018

Canada-Saudi row deepens

Egypt stands with Saudi in Canada row: Egypt gave its support to Saudi Arabia against “any interference in its internal affairs,” according to a statement from the Foreign Ministry on Tuesday. The ministry said it was concerned at the level of escalation, with ministry spokesperson Ahmed Abu Zaid saying that the events were a result of a number of international actors interfering in the internal affairs of regional nations. He added that Egypt adheres to a strict policy of respecting the sovereignty of other nations.

The story so far: Egypt’s statement mirrored remarks out of the GCC on Monday and came after Saudi Arabia ordered Canada’s ambassador to leave the kingdom and suspended future trade. The row erupted after Canada’s foreign minister urged Riyadh to release women’s rights activists. The move, still front page in the global business press (“Saudi Arabia’s furious attack on Canada shocks western allies,” blares the headline in the Financial Times) potentially risks a USD 13 bn defense contract to sell Canadian-made General Dynamics Corp armored vehicles to KSA.

The UAE again underscored its support for KSA during UAE Defense Minister and Abu Dhabi Crown Prince Mohammed Bin Zayed’s visit to Cairo yesterday. In a joint statement with Ittihadiya, both Bin Zayed and President Abdel Fattah El Sisi declared their rejection of efforts by foreign countries to interfere in the internal affairs of others. Bin Zayed was in town to discuss regional issues.

Canada is looking to its allies, including the UAE and the UK, to help de-escalate tensions with Saudi Arabia, a source with knowledge of the matter tells Reuters. “The key is to work with allies and friends in the region to cool things down, which can happen quickly,” said the source.

One frenemy down south is not moving a finger: The US will not help Canada with its tiff with Saudi. “Both sides need to diplomatically resolve this together. We can’t do it for them; they need to resolve it together,” U.S. State Department spokeswoman Heather Nauert told a briefing. America could, in fact, be making things worse for Canada, CNBC argues.

Other US allies are holding their breath on another front after US President Donald Trump warned that any company doing business will be barred from the United States, Reuters reports. The statements came as the US re-imposed sanctions it had lifted after the signing of the 2015 Iran Nuclear Pact.

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