A government-owned corporation raised concerns to Canada’s trade minister about the sale of artillery ammunition to the United States, with some of it earmarked for Israel, according to information obtained by CBC News. The CEO of the Canadian Commercial Corporation (CCC), responsible for overseeing international arms transfers, penned a letter to Dominic LeBlanc on March 20, 2025.
In the communication, the CEO, Bobby Kwon, highlighted that General Dynamics Ordnance and Tactical Systems had been the exclusive provider of propellant for U.S. Department of Defense howitzer ammunition. Records from the U.S. indicated that the propellant was intended for use in support of Ukraine and Israel.
CBC News accessed the letter through an information request seeking correspondence between the corporation and the government concerning Canadian arms that could potentially be utilized in Gaza. This incident marks the first known instance where the CCC directly brought up the issue of shipments to the U.S. with an elected official.
While LeBlanc no longer holds the role of international trade minister, he retains responsibility for Canada-U.S. trade within his cabinet portfolio. Kwon explained that the CCC was close to renewing a contract between the General Dynamics plant in Valleyfield, Quebec, and the U.S. Department of Defense for the production and sale of propellant.
An agreement from 2023 signed with the CCC for propellant mentions efforts to assist Ukraine and Israel, with approximately $628.5 million US spent to date. Activist groups previously raised concerns about Canadian arms and ammunition potentially reaching Israel indirectly via the U.S.
The CCC emphasized rigorous risk assessment and due diligence to ensure alignment with Canadian government policies. The total value of the contract, though redacted, was estimated to be nearly $1 billion US. While it remains uncertain if LeBlanc discussed the shipment with U.S. officials, the Global Affairs department has taken steps to prevent arms export permits to Israel since 2024.
The assessment by the CCC highlighted concerns about indirect transfers to Israel in a human rights review. The corporation emphasized responsible risk management and referred to its online risk-management process and due diligence questionnaire for exporters. The letter was pre-screened and forwarded to LeBlanc’s office after internal review by officials from Global Affairs.
General Dynamics declined to comment on the matter, deferring queries to the Canadian government. LeBlanc’s office did not provide specific responses to questions regarding the letter, prompting further scrutiny into the issue of arms sales to third parties. Foreign Affairs Minister Anita Anand reiterated the government’s commitment to adhering to international obligations and supporting a two-state solution for Israelis and Palestinians.
