Back to news

September 10, 2018 | Local, Land

Canada's arms deal with Saudi Arabia is shrinking

The LAV sale is being scaled back. Critics want it killed completely.

Murray Brewster · CBC News

A Canadian defence contractor will be selling fewer armoured vehicles to Saudi Arabia than originally planned, according to new documents obtained by CBC News.

That could be a mixed blessing in light of the ongoing diplomatic dispute between the two countries, say human rights groups and a defence analyst.

The scaled-back order — implemented before the Riyadh government erupted in fury over Canada's public criticism of Saudi Arabia's arrest of activists and froze new trade with Canada this summer — could make it politically less defensible for the Liberal government, which has argued it's in the country's business and economic interests to uphold the deal.

The documents show General Dynamic Land Systems Canada, the London, Ont.-based manufacturer, was — as of spring last year — going to deliver only 742 of the modern LAV-6s, a reduction from the original 2014 deal.

The initial order from the desert kingdom was for 928 vehicles, including 119 of the heavy assault variety equipped with 105 millimetre cannons.

Details of the agreement have long been kept under a cloak of secrecy. General Dynamic Land Systems, the Canadian Commercial Corporation (the Crown corporation which brokered the deal) and the Saudi government have all refused to acknowledge the specifics, other than the roughly $15 billion price tag.

Last spring, CBC News obtained copies of internal documents and a slide deck presentation from 2014 outlining the original agreement.

The latest internal company documents obtained by CBC News are dated March 29, 2017, and indicate the agreement had been amended a few months prior, perhaps in the latter half of 2016.

The documents also indicate delivery of the vehicles is already underway and has been for months.

CBC News asked for a response from both Foreign Affairs Minister Chrystia Freeland's office and General Dynamics Land Systems Canada. Both declined comment over the weekend..

A cash-strapped kingdom

A defence analyst said the amended order likely has more to do with the current state of Saudi Arabia's finances than its frustration over Canada's human rights criticism.

"Saudi Arabia — in part because of low oil prices and in part because of corruption and mismanagement of its own economy — has a large budget deficit," said Thomas Juneau, a University of Ottawa assistant professor and former National Defence analyst.

"Spending $15 billion over a number of years for armoured vehicles that it doesn't need that much, at least in a pressing sense, is an easier target for budget cuts, for sure."

The kingdom has projected a budget deficit of $52 billion US this year and the country's finance minister said last spring it is on track to cut spending by seven per cent.

When it was signed, the armoured vehicle deal was a way for Canada to cement relations with an important strategic partner in the region, said Juneau.

Should Ottawa cancel the sale?

He said he wonders if it's still worthwhile, in light of the furious diplomatic row that began over the Canadian government's tweeted expressions of concern for jailed activists — and quickly escalated with the expulsion of Canada's ambassador, the freezing of trade, the cancellation of grain shipments and the withdrawal of Saudi medical students from Canadian programs.

"Now, with the dust not really having settled after the dispute from August, is that partnership, in abstract terms, still necessary? I think it is. But is it still possible?" said Juneau.

Human rights groups say they believe there is even more reason for Ottawa to walk away from the deal now, given the events of this summer and the declining economic benefit.

"We're compromising our position on human rights for even less than we thought," said Cesar Jaramillo, the executive director of Project Ploughshares, which has opposed the agreement from the outset.

"Even if it's not a huge decrease, it is still a decrease. It should, at least in political and economic terms, make it easier for the Trudeau government to reconsider this deal, especially in terms of the latest diplomatic spat."

Full article: https://www.cbc.ca/news/politics/canada-s-arms-deal-with-saudi-arabia-is-shrinking-1.4815571

On the same subject

  • Canada's new frigates could take part in ballistic missile defence — if Ottawa says yes

    December 26, 2019 | Local, Naval

    Canada's new frigates could take part in ballistic missile defence — if Ottawa says yes

    Murray Brewster Canada's new frigates are being designed with ballistic missile defence in mind, even though successive federal governments have avoided taking part in the U.S. program. When they slip into the water sometime in the mid- to late-2020s, the new warships probably won't have the direct capability to shoot down incoming intercontinental rockets. But the decisions made in their design allow them to be converted to that role, should the federal government ever change course. The warships are based upon the British Type 26 layout and are about to hit the drawing board. Their radar has been chosen and selected missile launchers have been configured to make them easy and cost-effective to upgrade. Vice-Admiral Art McDonald said the Lockheed Martin-built AN/SPY-7 radar system to be installed on the new frigates is cutting-edge. It's also being used on land now by the U.S. and Japan for detecting ballistic missiles. "It's a great piece, and that is what we were looking for in terms of specification," McDonald told CBC News in a year-end interview. Selecting the radar system for the new frigates was seen as one of the more important decisions facing naval planners because it has to stay operational and relevant for decades to come — even as new military threats and technologies emerge. McDonald said positive feedback from elsewhere in the defence industry convinced federal officials that they had made the right choice. "Even from those that weren't producing an advanced kind of radar, they said this is the capability you need," he said. The whole concept of ballistic missile defence (BMD) remains a politically touchy topic. BMD — "Star Wars," to its critics — lies at the centre of a policy debate the Liberal government has tried to avoid at all costs. In 2017, Canada chose not to join the BMD program. That reluctance to embrace BMD dates back to the political bruising Paul Martin's Liberal government suffered in 2004-05, when the administration of then-U.S. president George W. Bush leaned heavily on Ottawa to join the program. In the years since, both the House of Commons and Senate defence committees have recommended the federal government relent and sign on to BMD — mostly because of the emerging missile threat posed by rogue nations such as North Korea. Liberals reluctant to talk BMD The question of whether to join BMD is expected to form part of the deliberations surrounding the renewal of NORAD — an undertaking the Liberal government has acknowledged but not costed out as part of its 2017 defence policy. Missile defence continues to be a highly fraught concept within the federal government. Defence Minister Harjit Sajjan made a point of downplaying a CBC News story last summer that revealed how the Canadian and U.S. militaries had laid down markers for what the new NORAD could look like, pending sign-off by both Washington and Ottawa. Asked about Sajjan's response, a former senior official in the minister's office said it raised the spectre of "Star Wars" — not a topic the Liberal government was anxious to discuss ahead of last fall's election. The current government may not want to talk about it, but the Canadian navy and other NATO countries are grappling with the technology. Practice makes perfect Last spring, a Canadian patrol frigate, operating with 12 other alliance warships, tracked and shot down a supersonic target meant to simulate a ballistic missile. A French frigate also scored a separate hit. For the last two years, NATO warships have practiced linking up electronically in defensive exercises to shoot down both mock ballistic and cruise missiles. A Canadian frigate in the 2017 iteration of the exercise destroyed a simulated cruise missile. At the recent Halifax Security Forum, there was a lot of talk about the proliferation of missile technology. One defence expert told the forum Canadian military planners have been paying attention to the issue for a long time. The frigate design is an important example. "I think what they've tried to do is keep the door open by some of the decisions they've made, recognizing that missile proliferation is a significant concern," said Dave Perry, of the Canadian Global Affairs Institute. "They haven't shut the door on doing that and I think that is smart." Opponents of BMD, meanwhile, have long argued the fixation by the U.S. and NATO on ballistic missile defence is fuelling instability and giving Russia and China reasons to co-operate in air and missile defence. Speaking before a Commons committee in 2017, Peggy Mason, president of the foreign and defence policy think-tank Rideau Institute, said the United States's adversaries have concluded that building more offensive systems is cheaper than investing in defensive ones. "The American BMD system also acts as a catalyst to nuclear weapons modernization, as Russia and China seek not only increased numbers of nuclear weapons but also increased manoeuvrability," said Mason, Canada's ambassador for disarmament from 1989 to 1994, testifying on Sept. 14, 2017. She also warned that "there would be significant financial costs to Canadian participation" in the U.S. BMD program "given American demands" — even prior to Donald Trump's presidency — "that allies pay their 'fair share' of the collective defence burden." https://www.cbc.ca/news/politics/frigate-ballistic-missile-defence-canada-1.5407226

  • Canada needs a better national security policy

    March 16, 2021 | Local, C4ISR, Security

    Canada needs a better national security policy

    Canada would benefit from the establishment of more authoritative co-ordination in medium-to-long term strategic national security policy. The role of the national security and intelligence advisor (NSIA) to the prime minister is well-situated to provide this function due to the office’s visibility and up-to-date awareness of cross-cutting national security issues facing Canada. By making this […]

  • J-model Hercules now flying the SAR mission in Trenton - Skies Mag

    June 7, 2023 | Local, Aerospace

    J-model Hercules now flying the SAR mission in Trenton - Skies Mag

    As initial operating capability of the CC-295 Kingfisher has been delayed, the RCAF is finding creative ways to address potential gaps in its SAR response. As of late May, the CC-130J Hercules became the primary fixed-wing asset for SAR missions in central Canada.

All news