Canada and the United Arab Emirates formalized a Comprehensive Economic Partnership Agreement on Tuesday, with Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presiding over the signing ceremony. The accord is designed to lower trade barriers, reduce regulatory impediments, and facilitate greater market access for businesses in both nations.
Under the agreement’s terms, tariffs will be reduced or eliminated on over 99 percent of Canadian exports to the UAE upon full implementation. The deal is expected to benefit Canadian sectors including agriculture, manufacturing, aerospace, forestry, and engineering. The framework also addresses non-tariff obstacles and aims to establish a more stable environment for commercial activity and capital flows. Implementation is anticipated to begin in 2027.
The trade pact reflects broader efforts by Canadian leadership to diversify commercial relationships beyond the United States. Prime Minister Carney has committed to doubling Canada’s non-US trade over the coming decade, following economic disruption from US tariffs and unsuccessful negotiations to reach a deal with Washington. This agreement represents part of a wider strategy to cultivate trade partnerships spanning the Asia Pacific region, Europe, and the Middle East.
Beyond the trade agreement, the two nations also executed preliminary accords concerning energy cooperation, diplomatic relations, and defence matters. The UAE’s Foreign Trade Minister Thani bin Ahmed Al Zeyoudi emphasized opportunities for private sector engagement in high-growth sectors including logistics, communications, advanced manufacturing, and technology.
The UAE currently ranks as the largest Middle East market for Canadian exports and a significant purchaser of Canadian vehicles, parts, and machinery. Bilateral trade reached 3.5 billion Canadian dollars in value the previous year, with annual growth rates of approximately 10 percent in recent years. The UAE has additionally committed up to $50bn in investment capital directed toward Canada.
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