She said: "We believe that Saudi Arabia, which has taken the path of massive social and economic transformations, has a full sovereign right to determine how to move forward in this important area".
But she said: "At the same time, we hope that Saudi Arabia and Canada will find a civilized solution to their differences".
"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.More news: Ford reveals details of buck-a-beer plan
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.
Canada has indicated it will not back down, despite the risk of imperilling business deals including a $15 billion (13 billion euros) agreement to sell Riyadh light armoured vehicles. "So that's impacting the Canadian market versus the rest of the world".
In 2015, Saudia Arabia-based Saudi Agricultural and Livestock Investment Company was part of a consortium that bought a controlling interest in the Canadian Wheat Board for $250 million. The loonie dropped slightly against the US dollar, trading at 76.5 cents U.S.More news: Twitter head Jack Dorsey defends decision not to ban Alex Jones, Infowars
"Canada is gravely concerned about additional arrests of civil society and women's rights activists in Saudi Arabia, including Samar Badawi", it posted. " It subsequently froze all new trade agreements with Canada and gave the Canadian ambassador to Riyadh 24 hours to leave".
Now, the kingdom has suspended training, scholarships, and fellowships of 16,000 of their students studying in Canada and has asked them to find academic programs elsewhere, according to a report by Saudi-owned Television channel, Al Arabiya.
The move to block Canadian grain is the Kingdom's attempt to punish Canada economically after Global Affairs Canada publicly criticized the Kingdom for jailing dissidents, enraging the regime.More news: Massive glowing 'rogue' planet spotted 'drifting' in space
"The matter is not about human rights, it is a matter of national security", Jubeir said, referring to the row with Canada.
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