A state-owned corporation in Canada informed the country’s trade minister about the sale of artillery ammunition to the United States, with some of it intended for Israel, according to information obtained by CBC News. The CEO of the Canadian Commercial Corporation (CCC), responsible for overseeing international arms transfers, sent a letter to Dominic LeBlanc on March 20, 2025.
In the letter, the CEO, Bobby Kwon, mentioned that General Dynamics Ordnance and Tactical Systems, a trusted industry partner, had been the exclusive supplier of propellant for howitzer ammunition for the U.S. Department of Defense. U.S. records indicated that the propellant was being utilized to support Ukraine and Israel.
CBC News acquired the letter through an access to information request seeking correspondence between the corporation and the government regarding Canadian arms that might be used in Gaza. This marks the first publicly documented instance where the CCC directly raised concerns about shipments to the U.S. with an elected official.
Although LeBlanc is no longer the international trade minister, he retains responsibility for Canada-U.S. trade within his cabinet portfolio. Kwon detailed 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 two propellant orders. A previous agreement from 2023 already existed to expand propellant production capacity at General Dynamics.
The U.S. government website displayed an agreement from 2023 signed with the CCC for propellant, mentioning efforts to support Ukraine and Israel, with $628.5 million US already spent. Some sections of the letter obtained by CBC News were redacted, with a previous report by The Maple also referencing a redacted version that did not mention the specific General Dynamics contract.
Concerns had been raised by activist groups that Canadian-manufactured arms and ammunition could reach Israel indirectly through the U.S. Despite the federal government’s declaration in January 2024 to halt direct lethal arms shipments to Israel, reports indicated that some shipments identified by activist groups had indeed reached Israel via the U.S.
The CCC itself had expressed concerns about indirect transfers from the U.S. to Israel in an internal human-rights assessment, as previously reported by CBC News and The Maple. The U.S. largely bypasses Canada’s arms-control regulations, an issue the NDP aims to address with a private member’s bill that currently lacks support from other political parties.
Kwon emphasized that the CCC maintains a rigorous risk assessment and due diligence framework for all contracts to ensure alignment with Canadian government policies. The total value of the contract, though redacted, was estimated by Kwon to be nearly $1 billion US. General Dynamics declined to provide answers, deferring inquiries to the Canadian government.
It remains unclear if LeBlanc has discussed the potential transfer of ammunition sales to a third party with the U.S. His office did not respond to questions regarding the letter he received. Foreign Affairs Minister Anita Anand reiterated the steps taken since 2024 to prevent arms export permits to Israel and emphasized support for a two-state solution for Israelis and Palestinians.
Global Affairs Canada clarified that the CCC’s 55-page human-rights assessment is an internal document meant for internal deliberations. The document referenced various reports and court documents related to the Israel-Hamas conflict but redacted its conclusions in the released copies.
While it is uncertain if LeBlanc personally reviewed the letter addressed to him, emails from the access to information request indicated that Global Affairs officials had seen it. The letter had been pre-screened and forwarded to LeBlanc’s office after thorough review. The CCC highlighted its commitment to prudent risk management and responsible stewardship in its operations.
In a statement to CBC News, the CCC emphasized its online risk management process, including a code of conduct and due diligence questionnaire for exporters, covering details about end users, human rights concerns, and verification procedures.