Dispute between Canada and Saudi Arabia escalates amid asset sell off

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The fallout continues in the diplomatic dust-up between Canada and Saudi Arabia, with Riyadh issuing a laundry list of edicts to show its displeasure with criticism from Global Affairs Canada.

"It's up for the government of Saudi Arabia and the Canadians to work this out", said Heather Nauert, a spokesperson for the state department, on Tuesday.

The report comes a day after the Toronto Stock Market saw a major selloff from an unknown worldwide dealer, in contrast to gains in other global markets.

" It subsequently froze all new trade agreements with Canada and gave the Canadian ambassador to Riyadh 24 hours to leave".

The Kingdom of Saudi Arabia put a man to death on a cross in the holy city of Mecca on Wednesday, while waging a public relations battle to call out alleged human rights violations in Canada.

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Responding to a question about the reason for the arrest of the activists, Jubeir repeated earlier allegations that they had been in touch with foreign entities. Annual Saudi-Canadian trade hovers around $4bn.

"I will say Canada is very comfortable with our position", she told reporters.

Speaking in Montreal, where he announced funding for jobs in Canada's healthcare and aerospace sectors, Trudeau said Freeland had a "long conversation" with Saudi Arabia's foreign minister on Tuesday, and that diplomatic talks continue.

It has lashed out at Canada, sometimes harshly, since Ottawa called for the release of jailed women's rights activists in the Kingdom.

All Saudi Arabian students now studying in Canada will be transferred to other countries.

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Jubeir added that Saudi Arabia was "considering additional measures" against Canada, without elaborating.

Saudi Arabia's main state wheat buying agency told grains exporters it will no longer accept Canadian-origin grains in worldwide tenders, European traders said.

The dispute may hurt what is a modest bilateral trade worth almost $4 billion (£3.1 billion) a year.

The Canadian dollar was down by 0.2% against the U.S. dollar to 1.3096 at 8:59 a.m. ET.

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