In the past few days, diplomatic disputes between Saudi Arabia and Canada have continued to escalate, and several Arab countries have expressed their support for Saudi Arabia. According to reports, Canada is seeking allies to help resolve the dispute. Some analysts pointed out that behind this dispute is the long-term poor relationship between the two countries. Since Saudi Arabia is an important export market for Canada, Canada may face greater business losses if disputes cannot be resolved as quickly as possible.
 

According to the Saudi mainstream media "Okaz" reported on August 9, Saudi Justice Minister Sheikh Walid criticized Canada for Saudi Arabia's internal affairs and judicial stipulations, and stressed that Saudi Arabia refused any country to interfere in Saudi internal affairs and judicial independence. On the 3rd of this month, the Canadian Foreign Ministry issued a message on the social media "Twitter", expressing "serious worries" about Saudi Arabia's previous arrest of "rights defenders" and urging the Saudi authorities to release these people immediately. The attitude of Canada caused a strong reaction from Saudi Arabia. The Saudi Foreign Ministry issued a statement on the 6th, accusing Canada of interfering in its internal affairs and demanding that the Canadian Ambassador to Saudi Arabia leave the country within 24 hours and recall the Saudi ambassador to Canada. The statement said the Saudi government decided to freeze all new business and investment transactions with Canada. At the same time, Saudi Arabia announced that it had transferred the Saudi public students in Canada and removed the Saudis who were in Canada. Saudi Airlines announced that it had stopped flying to Canada.
 

At the moment, relations between the two countries have further deteriorated. After Saudi Foreign Minister Jubael announced that there was "no room for mediation" with Canada's diplomatic turmoil and Saudi Arabia was considering further measures against Canada, Saudi Arabia began to sell its Canadian assets. The Financial Times quoted sources as saying that the Saudi central bank and state-owned pension funds have instructed their overseas asset management companies to sell their Canadian stocks, bonds and cash assets “at no cost”.
 

According to the Financial Times, third-party asset management companies manage more than $100 billion in Saudi Arabia investments in the global market, although Saudi Arabia’s investment in Canadian assets is “absolutely small”, but Saudi Arabia’s move to sell its Canadian assets is itself However, it sends a strong signal that Saudi Arabia does not allow external forces to deal with its internal affairs.
 

Saudi Arabia is an important export market for Canada and the second largest market in the Gulf region. The bilateral trade volume is about US$4 billion per year. Since the Liberal government led by Prime Minister Trudeau in Canada took office in 2015, the development of relations between the two countries has not been smooth. The "tweeting" incident is only the trigger for the intensification of the contradictions between the two sides.
 

Compared with Saudi Arabia’s tough stance, Canada’s attitude is more moderate. Trudeau said on the 8th that Canada does not want to be unsettled with Saudi Arabia; Foreign Minister Freeland also stressed that he has "direct communication" with the Saudi Foreign Minister and "diplomatic dialogue is continuing." However, the Canadian side also stated that Canada will not give up its diplomatic position on Saudi Arabia and will always make a strong speech on human rights issues.
 

Public opinion analysis said that this diplomatic dispute may cause greater economic losses to Canada. It has been reported that Saudi Arabia has stopped importing wheat and barley native to Canada. The British "Daily Mail" said that Canada has planned to seek the mediation of the United Kingdom and other countries to cool down its tension with Saudi Arabia through dialogue, thus pushing the relationship between the two countries to get back on track as soon as possible. On the other hand, Egypt, Bahrain, the United Arab Emirates, Palestine and the Gulf Cooperation Council and the League of Arab States have expressed their support for Saudi Arabia. The "Middle East Economic Network" reported that if the diplomatic turmoil continues and even the relationship between the two countries breaks down, Canada will suffer an economic loss of 3 billion to 4 billion U.S. dollars per year. "The loss is Canada, not Saudi Arabia."