World
How Canada’s ‘off-the-record’ arms exports end up in Israel
Montreal, Canada – The United States has faced widespread condemnation this week for authorising the sale of more than $20bn in additional weapons to Israel as the top US ally wages war in the Gaza Strip.
But while the newly approved arms transfer has renewed global scrutiny of Washington’s unwavering support for Israel, in Canada, the announcement on Tuesday drew attention for a different reason.
That’s because more than $60m worth of munitions will be manufactured by a weapons company in Canada as part of that sale.
Canadian lawyers, rights advocates and other experts say this raises serious questions about the opaque nature of the country’s arms export regime.
They also say Canada’s participation in the arms deal makes clear that the country is failing to ensure that Canadian-made weapons are not used in suspected human rights violations abroad, as required by law.
“The news is appalling,” said Kelsey Gallagher, a researcher at the Canadian peace research group Project Ploughshares.
“Given Israel’s appalling track record of violating international humanitarian law through its operation in Gaza, including in some cases which may constitute war crimes, in no way is it appropriate for Canada to supply this ammunition,” Gallagher told Al Jazeera.
“Moreover, as per Canada’s obligations under the UN Arms Trade Treaty, it’s illegal.”
US-Canada defence partnership
How is it that Canadian-made munitions will be making their way to Israel? A special US-Canada trade relationship is at the heart of the issue, experts say.
Since the 1950s, the North American neighbours have enjoyed “mutually beneficial terms and conditions” on the trade of military weapons and related components via a bilateral deal called the Defence Production Sharing Agreement.
The US — Canada’s largest overall trading partner — today represents the largest market for Canadian-made defence goods, accounting for about 49.1 percent of all such exports.
When Canada joined the Arms Trade Treaty (ATT) in 2019, it sought to ensure that its accession to the United Nations pact wouldn’t affect its longstanding arms export regime with the US.
The ATT regulates and sets conditions for the global flow of arms, including a prohibition on signatories transferring weapons to another country if there is a plausible risk they could be used in violations of international humanitarian law, such as war crimes.
“Canada has benefited greatly from its privileged defence relationship with the United States, and it is important not to undermine this arrangement,” the Canadian government said in a statement when it joined the international treaty.
After joining the ATT, Canada put some limited reporting requirements in place when certain weapons systems are sold to the US. Still, it does not report on most transfers to its southern neighbour, nor does it require specific permits for them.
In effect, “Canada and the United States have reciprocal arrangements to ensure permit-free/licence-free movement of most military items between our two countries”, the Canadian government says on its website.
‘Flawed’ export controls
Canadian human rights advocates have denounced this lack of transparency for years, dubbing it a dangerous “loophole” to the Canadian arms export system.
The obscure nature of Canadian arms transfers to the US is also why this week’s news — that a company based in the province of Quebec would be the main contractor for the $61.1m in munitions to Israel — came as a surprise to many observers in Canada.
In its announcement, the US’s Defense Security Cooperation Agency (DSCA) said that General Dynamics Ordnance and Tactical Systems Inc would supply tens of thousands of “M933A1 120mm High Explosive Mortar Cartridges and related equipment”.
Gallagher, the researcher, said Canadians would likely have never known that the weapons were bound for Israel if the US government hadn’t revealed the information itself.
“Because these [weapons] are being sent through the US to Israel, these will almost certainly face no regulatory oversight by Canadian officials,” he said.
“And in addition to that, they will not be included in Canada’s official reporting of its arms exports to Israel,” Gallagher continued. “These will be off the record, except from this reporting from the DSCA.”
The announcement also came as Canada — along with other Western countries that provide military support for Israel, most notably the US — is facing growing calls to impose an arms embargo on Israel amid the Gaza war.
After Canada’s Parliament passed a non-binding motion in March urging a suspension of arms transfers to Israel, Canadian Foreign Minister Melanie Joly said the government would not authorise any new permits for weapons exports to the country.
But rights advocates quickly questioned why existing permits weren’t also being revoked, and some asked how the government’s pledge would affect transfers of weapons to the US that do not require permits, yet could end up in Israel.
Canada’s foreign affairs department, Global Affairs Canada, did not respond to Al Jazeera’s questions about the US government’s announcement in time for publication.
Henry Off, a Toronto-based lawyer and board member of the group Canadian Lawyers for International Human Rights (CLAIHR), said the news highlights “how flawed [Canada’s] arms export system is”.
It demonstrates “how easily [arms] can end up in Israel just because they can go through the United States”, he explained.
Off’s group is currently involved in an ongoing lawsuit against Joly, demanding an end to Canadian weapons shipments to Israel.
“Canada is legally obligated not to allow these transfers,” he told Al Jazeera.
“We know that these arms and weapons parts are used to commit serious violations of international humanitarian law and human rights law, and this is just another example of how Canada has failed to meet its international legal commitments and its domestic legal commitments.”
‘Hold both US, Israel accountable’
Canada’s involvement in the supply of weapons to Israel has also drawn concern from Palestinian rights advocates in the US who say they have tried for months to get the administration of President Joe Biden to stop sending arms — to no avail.
The US provides $3.8bn in military assistance to Israel annually, and Biden’s administration has approved additional weapons sales and other aid to the country several times since the Gaza war began in early October.
Raed Jarrar, advocacy director at Democracy for the Arab World Now, a Washington-based think tank, said the US is violating its own laws by refusing to stop the arms transfers despite evidence they are being used in Israeli rights abuses against Palestinians.
Israeli forces have dropped American-made bombs on Gaza over the course of the war, according to investigations by US media and rights groups, killing scores of Palestinian civilians.
“The United States has lost its moral capital. It has lost its political capital and its leadership when it comes to its blind support to Israel,” Jarrar told Al Jazeera. “And Canada cannot rely on US mechanisms for accountability.”
He said authorities in Canada should step in to ensure that no weapons and equipment manufactured by Canadian companies are contributing to abuses against Palestinians.
“All countries, including Canada, have a moral, ethical and legal obligation to disrupt the supply chain of genocide,” Jarrar said.
“As an organisation based in the United States, I can confirm we have done everything possible to convince our government to adhere by our law, by international law — and we have failed,” he concluded.
“The same way that Israel is unable to hold Israel accountable, the United States is unable to hold the United States accountable. It is time for other countries to hold both Israel and the United States accountable.”
Global energy markets remain in a state of high alert after several Gulf states suspended oil and gas production following escalating tensions in the region.
Since Saturday’s attacks by the United States and Israel, Tehran has targeted various sites in Israel and across several Gulf countries.
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Initially, these Iranian attacks focused primarily on US military assets, but Gulf states have reported that Iran has since broadened its scope to target civilian infrastructure, including hotels, airports and energy facilities. Iranian officials have publicly denied targeting Gulf energy facilities, however.
The Middle East remains the world’s dominant source of hydrocarbon reserves and a major driver of crude oil and natural gas output.
How much oil and gas does the Middle East have?
Nearly half of the world’s oil reserves and exports come from the Middle East, which contains five of the seven largest oil reserves in the world.
Once refined, crude oil is used to make various products, including petrol, diesel, jet fuel and a wide range of household items such as cleaning products, plastics and even lotions.
After Venezuela, which has 303 billion barrels, Saudi Arabia holds the world’s second-largest proven crude oil reserves, estimated at 267 billion barrels.
The Middle East’s largest oil reserves:
- Saudi Arabia: 267 billion barrels
- Iran: 209 billion barrels
- Iraq: 145 billion barrels
- UAE: 113 billion barrels
- Kuwait: 102 billion barrels
Saudi Arabia is also the world’s top oil exporter with an estimated $187bn of crude in 2024, according to data from the Observatory of Economic Complexity (OEC).
The Middle East’s top oil exporters:
- Saudi Arabia: $187bn
- UAE: $114bn
- Iraq: $98bn
- Iran: $47bn – largely sold at a discount due to US sanctions
- Kuwait: 29bn
Other Middle Eastern countries with sizeable oil exports include: Oman ($28.9bn), Kuwait ($28.8bn) and Qatar ($21bn).
In addition to crude oil, the Middle East is a global powerhouse for natural gas, accounting for nearly 18 percent of global production and approximately 40 percent of the world’s proven reserves.
Natural gas is primarily used for electricity generation, industrial heating, and in chemicals and fertilisers.
The heart of Middle Eastern gas is a single, massive underwater reservoir called the South Pars/North Dome field. It is the largest gasfield in the world, and it is shared directly between Qatar and Iran.
Gas is transported either through pipelines or by tankers. When using pipelines, the gas is pressurised and moved through steel networks. When pipelines are not feasible, such as across oceans, Liquefied Natural Gas (LNG) is used.
To create LNG, the gas is cooled to approximately -162C (-260F), shrinking its volume and allowing it to be safely loaded onto specialised tanker ships for global transport.
To transport oil and gas, tankers from various Gulf states must navigate the narrow waterway known as the Strait of Hormuz. Approximately one-fifth of global oil and gas passes through this strait, primarily heading to major markets in Asia, including China, Japan, South Korea and India, as well as to Europe.
Which energy facilities have been attacked?
Here are the facilities which have recorded damage as of Wednesday:
Saudi Arabia – Ras Tanura oil refinery
On Monday, one of the world’s largest oil refining complexes, the Ras Tanura oil refinery owned by Saudi Aramco, was forced to halt operations after debris from intercepted Iranian drones caused a small fire.
Saudi Aramco is one of the world’s largest companies, with a market capitalisation exceeding $1.7 trillion and revenue of $480bn. Headquartered in Dhahran, in eastern Saudi Arabia, Aramco controls 12 percent of global oil production, with a capacity of more than 12 million barrels per day (bpd).
On Wednesday, Saudi defence officials reported a second drone attempt on the facility but this was successfully intercepted with no damage or disruption to operations reported.
Qatar – Ras Laffan Industrial City LNG facilities
On Monday, Qatar’s Ministry of Defence reported that Iranian drones had targeted an energy facility in Ras Laffan belonging to QatarEnergy, the world’s largest LNG producer.
While no casualties were reported, QatarEnergy suspended the production of LNG and other products at the impacted sites.
QatarEnergy’s 81 million metric tonnes of LNG exports are mostly bound for Asian markets, including China, Japan, India, South Korea, Pakistan and other countries in the region. The halt in production hiked global gas prices to a three-year high this week.
Qatar – Mesaieed Industrial City
Qatar’s Defence Ministry said the country was attacked by a second drone launched from Iran on Monday, targeting a water tank belonging to a power plant in Mesaieed, without reporting any casualties.
On Tuesday, QatarEnergy also stopped production of some downstream products like urea, polymers, methanol, aluminium and others.
UAE – Fujairah and Mussafah oil terminals
On Monday, a fire broke out at Mussafah Fuel Terminal in southwest Abu Dhabi after it was struck by a drone.
On Tuesday, falling debris from a drone interception caused a fire at the Fujairah Oil Terminal along the eastern coast of the United Arab Emirates. No injuries were reported.
Oman – ports of Duqm and Salalah
On Tuesday, multiple Iranian drones struck fuel tanks and a tanker at the port of Duqm, with at least one direct hit on a fuel storage tank, causing an explosion.
On the same day, a drone strike was recorded at the Port of Salalah, which handles fuel and industrial minerals.
Athe Nova – oil tanker
On Monday, the Athe Nova, a Honduran-flagged tanker positioned off the coast of Khor Fakkan, UAE, was struck by Iranian drones as it was transiting the Strait of Hormuz, setting it ablaze. Despite the fire, the vessel managed to exit the chokepoint into the Gulf of Oman, and no casualties were reported.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for the strike, identifying the Athe Nova as an “ally of the United States”.
On the same day as the attack, Iran declared the Strait of Hormuz closed, warning that any ship attempting to pass would be “set ablaze”.
Since then, several other tankers have been hit.
Other regional energy disruptions
Although not directly targeted, the following energy sites suspended operations in response to Iranian retaliatory attacks:
Israeli offshore gasfields – Major gas production fields such as Leviathan and Tamar were shut down as a precaution following regional drone and missile launches linked to Iran.
Oil fields in semiautonomous Iraqi Kurdistan – Producers including DNO, Gulf Keystone and Dana Gas halted output as a safety measure amid the escalation.
Rumaila oilfield – Operations at Iraq’s largest oilfield – operated by BP – in southern Iraq were halted on Tuesday as a security precaution due to its proximity to the escalation zone.
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Senior Iranian clerics would have been left “exposed” after an Israeli airstrike hit a meeting place where they were supposed to be convening Tuesday — days after a strike leveled the Tehran compound of Supreme Leader Ayatollah Ali Khamenei, a defense analyst has claimed.
The clerics, members of the Assembly of Experts, had reportedly planned to meet at the location in Qom to deliberate succession plans for Khamenei, who was killed in the strikes, according to The Times of Israel.
“This second strike would be another embarrassment to what has been left of the regime,” Kobi Michael, a senior researcher at the Institute for National Security Studies and the Misgav Institute, told Fox News Digital.
“It indicates intelligence dominance and superiority because any movement is detected, meaning they would feel exposed,” Michael added.
Iranian Supreme Leader Ayatollah Ali Khamenei was killed in an Israeli airstrike Saturday. (Getty Images)
“As of now, the leadership would feel insecure and hunted, with all of their plans collapsing one after another.”
“They would feel totally isolated and understand that the biggest risk might come from home — from a potential uprising next,” he added.
Israel Defense Forces spokesman Brig. Gen. Effie Defrin confirmed that the Israeli Air Force struck the building where senior clerics had planned to assemble, The Times of Israel reported.
KHAMENEI’S DEATH OPENS UNCERTAIN CHAPTER FOR IRAN’S ENTRENCHED THEOCRACY
A general view of Tehran with smoke visible in the distance after explosions were reported in the city, Monday, in Iran. (Contributor/Getty Images)
It remains unclear how many of the 88 members were present at the time of the strike, according to an Israeli defense source cited by the outlet. The second strike on Iran’s leadership comes amid a broader military campaign.
As previously reported by Fox News Digital, U.S. forces have struck more than 1,700 targets across Iran in the first 72 hours of Operation Epic Fury, according to a U.S. Central Command fact sheet.
The campaign is aimed at dismantling Iran’s security apparatus and neutralizing what officials describe as imminent threats.
According to U.S. Central Command, targets have included command-and-control centers, the Islamic Revolutionary Guard Corps Joint Headquarters, the IRGC Aerospace Forces headquarters, integrated air defense systems and ballistic missile sites.
FIREBRAND ANTI-AMERICAN CLERIC ALIREZA ARAFI SEEN AS CONTENDER TO REPLACE IRAN’S KHAMENEI
The USS Thomas Hudner fires a Tomahawk land attack missile in support of Operation Epic Fury, Sunday, while at sea. (U.S. Navy/via Getty Images)
“We need strategic patience and determination, and in several weeks most of the job will be accomplished,” Michael added. “Even if the regime does not collapse, Iran will not be like we used to know.
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“I assume that the U.S. and Israel will establish a very robust monitoring mechanism that will enable them to react whenever the regime tries to reconstitute its military capacities again.”
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