Identifier
Created
Classification
Origin
07OTTAWA100
2007-01-19 21:08:00
CONFIDENTIAL
Embassy Ottawa
Cable title:
CANADA: NO EXPORT CREDITS FOR IRAN
how-toVZCZCXRO3386 OO RUEHGA RUEHHA RUEHQU RUEHRN RUEHVC DE RUEHOT #0100/01 0192108 ZNY CCCCC ZZH O 192108Z JAN 07 FM AMEMBASSY OTTAWA TO RUEHC/SECSTATE WASHDC IMMEDIATE 4796 INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE RUEHSS/OECD POSTS COLLECTIVE RUEHBJ/AMEMBASSY BEIJING 2189 RUEHJA/AMEMBASSY JAKARTA 0228 RUEHLJ/AMEMBASSY LJUBLJANA 0068 RUEHNE/AMEMBASSY NEW DELHI 0375 RUEHTN/AMCONSUL CAPE TOWN 0329 RUEKJCS/SECDEF WASHDC RUEHIN/AIT TAIPEI 0122 RHEHNSC/WHITE HOUSE NSC WASHINGTON DC RUEATRS/DEPT OF TREASURY WASH DC RUCPDOC/DEPT OF COMMERCE WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 OTTAWA 000100
SIPDIS
SIPDIS
STATE FOR EB/IFD/ODF; EB/ESC/TFS; WHA/CAN
PARIS ALSO FOR OECD
COMMERCE FOR 6731 ELENZ
E.O. 12958: DECL: 01/18/2017
TAGS: CA EFIN IR MNUC PREL UNSC OECD
SUBJECT: CANADA: NO EXPORT CREDITS FOR IRAN
REF: A. STATE 4760
B. 06 STATE 192099
Classified By: EMIN BRIAN MOHLER. EO 12958 Reasons 1.4 (b) and (d)
C O N F I D E N T I A L SECTION 01 OF 02 OTTAWA 000100
SIPDIS
SIPDIS
STATE FOR EB/IFD/ODF; EB/ESC/TFS; WHA/CAN
PARIS ALSO FOR OECD
COMMERCE FOR 6731 ELENZ
E.O. 12958: DECL: 01/18/2017
TAGS: CA EFIN IR MNUC PREL UNSC OECD
SUBJECT: CANADA: NO EXPORT CREDITS FOR IRAN
REF: A. STATE 4760
B. 06 STATE 192099
Classified By: EMIN BRIAN MOHLER. EO 12958 Reasons 1.4 (b) and (d)
1. (sbu) Summary: Canada does not/not extend export credits
or insurance to support trade with Iran, according to
Canada's Department of Foreign Affairs. Canada practices a
restrictive, "controlled engagment" policy toward Iran that
is limited to the murder case of Canadian-Iranian
photojournalist Zahra Kazemi, human rights, and nuclear
nonproliferation. Canadian firms that export to Iran must
obtain a permit, which is routinely denied if there is any
possibility of "dual use." Canadian exports to Iran totaled
some U.S. $226 million in 2005 and U.S. $172 million in 2004.
End Summary.
2. (sbu) Ahead of Embassy's demarche on Trade and Finance
Ministry officials regarding export credits to Iran (reftel),
Econcouns discussed Canada's official trade relationship with
Iran with Robert Publicover, Foreign Affairs
Economic/Commercial Director for Iran, Iraq, Egypt, Syria,
Lebannon and Jordan. (Comment: Trade Minister Emerson,
Finance Minister Flaherty, and senior ministry officials are
traveling in Asia and will return to Ottawa next week. End
Comment.)
3. (c) Publicover stated that the Government of Canada does
not/not extend export credits or insurance to support trade
with Iran. He also stated that there are no significant
pending deals with Iran. Publicover was unsure whether
Canada had any "longstanding" sovereign or non-sovereign
exposure to Iran, but said he would research the matter.
4. (c) Publicover stated that Canada's political and
commerical policies toward Iran are very restrictive and are
based on then-Foreign Minister Pettigrew's May 2005 public
statement following an Iranian court decision that exonerated
the alleged murderers of Zahra Kazemi, a Canadian-Iranian
photojournalist. In his annoucement, Pettigrew stated the
"bilateral relationship with Iran cannot proceed as normal,"
and that Canada would tighten its "controlled engagement"
policy with Iran. Publicover stated that Pettigrew had been
"deeply upset" over the Kazemi case, and was ready to cut off
diplomatic relations with Iran. According to Pettigrew,
however, Canadian Foreign Affairs officials successfully
argued that this would leave Canada with no influence in
Iran. (Canada does not currently have an ambassador in
Tehran, and Iran pulled its own ambassador out of Ottawa in
2005.)
5. (sbu) The main points of Canada's official policy toward
Iran include:
- Canada limits its encounters with Iranian officials to the
Kazemi case, human rights in Iran, and nuclear
non-proliferation.
- Iranian officials are not permitted to enter Canada, and
Canadian officials will not engage with Iran, except relating
to the above issues.
- Iranian Embassy officials in Ottawa must obtain Ministry of
Foreign Affairs advance approval before meeting Government of
Canada officials.
- Canada will apply "strict export controls on sensitive
goods" and advise Canadian businesses as to the political
environment in Iran.
Qenvironment in Iran.
- Canadian government agencies will have no cooperation
programs with the Iranian government.
6. (c) Publicover emphasized the Government of Canada would
not support businesses dealing with Iran, especially entities
associated with the Iranian government. He cited two cases
involving a Canadian grain shipment and a Canadian oil
OTTAWA 00000100 002 OF 002
services company that were refused Canadian support because
the companies were dealing with entities associated with the
Iranian government. Publicover stated that Canadian firms
trading with Iran must obtain export permits, and that these
permits are refused when the exported goods carry "any hint
of dual use." He also stated that Canada reminds firms that
the Canadian and U.S. economies are highly integrated and
that goods traded with Iran could contain significant U.S.
content -- which in turn could run afoul of USG sanctions law
that USG authorities enforce on an "extraterritorial basis."
7. (u) Canada-Iran Trade
Total Canada Exports to Iran
Thousands of U.S. Dollars
(2005 is latest available year)
--------------
2005 $226,347
2004 $171,544
2003 $167,764
2002 $106,748
Top Canadian Goods to Iran (2005)
(Thousands of U.S. Dollars)
--------------
Barley $40,122
Soya Beans $36,153
Distilling
Equipment $25,673
Total Iran Exports to Canada
(Thousands of U.S. Dollars)
--------------
2005 $36,706
2004 $58,240
2003 $45,123
2002 $34,952
Top Iranian Goods to Canada (2005)
(Thousands of U.S. Dollars)
--------------
Grapes,
Dried $7,603
Carpets,
Knotted $7,557
Pistachios $7,083
(source: Statistics Canada)
Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa
WILKINS
SIPDIS
SIPDIS
STATE FOR EB/IFD/ODF; EB/ESC/TFS; WHA/CAN
PARIS ALSO FOR OECD
COMMERCE FOR 6731 ELENZ
E.O. 12958: DECL: 01/18/2017
TAGS: CA EFIN IR MNUC PREL UNSC OECD
SUBJECT: CANADA: NO EXPORT CREDITS FOR IRAN
REF: A. STATE 4760
B. 06 STATE 192099
Classified By: EMIN BRIAN MOHLER. EO 12958 Reasons 1.4 (b) and (d)
1. (sbu) Summary: Canada does not/not extend export credits
or insurance to support trade with Iran, according to
Canada's Department of Foreign Affairs. Canada practices a
restrictive, "controlled engagment" policy toward Iran that
is limited to the murder case of Canadian-Iranian
photojournalist Zahra Kazemi, human rights, and nuclear
nonproliferation. Canadian firms that export to Iran must
obtain a permit, which is routinely denied if there is any
possibility of "dual use." Canadian exports to Iran totaled
some U.S. $226 million in 2005 and U.S. $172 million in 2004.
End Summary.
2. (sbu) Ahead of Embassy's demarche on Trade and Finance
Ministry officials regarding export credits to Iran (reftel),
Econcouns discussed Canada's official trade relationship with
Iran with Robert Publicover, Foreign Affairs
Economic/Commercial Director for Iran, Iraq, Egypt, Syria,
Lebannon and Jordan. (Comment: Trade Minister Emerson,
Finance Minister Flaherty, and senior ministry officials are
traveling in Asia and will return to Ottawa next week. End
Comment.)
3. (c) Publicover stated that the Government of Canada does
not/not extend export credits or insurance to support trade
with Iran. He also stated that there are no significant
pending deals with Iran. Publicover was unsure whether
Canada had any "longstanding" sovereign or non-sovereign
exposure to Iran, but said he would research the matter.
4. (c) Publicover stated that Canada's political and
commerical policies toward Iran are very restrictive and are
based on then-Foreign Minister Pettigrew's May 2005 public
statement following an Iranian court decision that exonerated
the alleged murderers of Zahra Kazemi, a Canadian-Iranian
photojournalist. In his annoucement, Pettigrew stated the
"bilateral relationship with Iran cannot proceed as normal,"
and that Canada would tighten its "controlled engagement"
policy with Iran. Publicover stated that Pettigrew had been
"deeply upset" over the Kazemi case, and was ready to cut off
diplomatic relations with Iran. According to Pettigrew,
however, Canadian Foreign Affairs officials successfully
argued that this would leave Canada with no influence in
Iran. (Canada does not currently have an ambassador in
Tehran, and Iran pulled its own ambassador out of Ottawa in
2005.)
5. (sbu) The main points of Canada's official policy toward
Iran include:
- Canada limits its encounters with Iranian officials to the
Kazemi case, human rights in Iran, and nuclear
non-proliferation.
- Iranian officials are not permitted to enter Canada, and
Canadian officials will not engage with Iran, except relating
to the above issues.
- Iranian Embassy officials in Ottawa must obtain Ministry of
Foreign Affairs advance approval before meeting Government of
Canada officials.
- Canada will apply "strict export controls on sensitive
goods" and advise Canadian businesses as to the political
environment in Iran.
Qenvironment in Iran.
- Canadian government agencies will have no cooperation
programs with the Iranian government.
6. (c) Publicover emphasized the Government of Canada would
not support businesses dealing with Iran, especially entities
associated with the Iranian government. He cited two cases
involving a Canadian grain shipment and a Canadian oil
OTTAWA 00000100 002 OF 002
services company that were refused Canadian support because
the companies were dealing with entities associated with the
Iranian government. Publicover stated that Canadian firms
trading with Iran must obtain export permits, and that these
permits are refused when the exported goods carry "any hint
of dual use." He also stated that Canada reminds firms that
the Canadian and U.S. economies are highly integrated and
that goods traded with Iran could contain significant U.S.
content -- which in turn could run afoul of USG sanctions law
that USG authorities enforce on an "extraterritorial basis."
7. (u) Canada-Iran Trade
Total Canada Exports to Iran
Thousands of U.S. Dollars
(2005 is latest available year)
--------------
2005 $226,347
2004 $171,544
2003 $167,764
2002 $106,748
Top Canadian Goods to Iran (2005)
(Thousands of U.S. Dollars)
--------------
Barley $40,122
Soya Beans $36,153
Distilling
Equipment $25,673
Total Iran Exports to Canada
(Thousands of U.S. Dollars)
--------------
2005 $36,706
2004 $58,240
2003 $45,123
2002 $34,952
Top Iranian Goods to Canada (2005)
(Thousands of U.S. Dollars)
--------------
Grapes,
Dried $7,603
Carpets,
Knotted $7,557
Pistachios $7,083
(source: Statistics Canada)
Visit Canada's Classified Web Site at
http://www.state.sgov.gov/p/wha/ottawa
WILKINS