Canada and UAE Sign Comprehensive Trade Agreement to Cut Tariffs and Boost Investment
Canada and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement on October 27, aiming to eliminate tariffs on over 99% of Canadian exports to the UAE. The deal is expected to enter into force in 2027 following parliamentary ratification.
Canada and the United Arab Emirates signed a comprehensive trade deal on Tuesday, October 27, designed to lower barriers between the two economies and boost investment. Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing of the Comprehensive Economic Partnership Agreement (CEPA).
UAE Foreign Trade Minister Thani Al Zeyoudi signed the CEPA deal with his Canadian counterpart Maninder Sidhu. The agreement aims to cut tariffs, reduce red tape, and improve market access for businesses in both countries. Once fully implemented, the CEPA will reduce or eliminate tariffs on over 99% of current Canadian exports to the UAE.
The deal addresses non-tariff barriers and expands market access for Canadian goods and services across multiple sectors, including industrial, agricultural, forest, fish and seafood, environmental, and engineering. This expansion is expected to open new markets for Canadian farmers growing pulses and canola, create opportunities for manufacturers of industrial machinery and power generation equipment, and benefit the aerospace sector and other Canadian innovators. The agreement is also intended to provide a more predictable environment for trade and investment, alongside access to investment opportunities in high-growth sectors such as logistics, communications, advanced technology, and manufacturing.
Two-way trade between Canada and the UAE was worth $3.5-billion last year and has been growing at 10 per cent annually for the last few years. Additionally, the UAE committed up to $50-billion in investment in Canada last year.
Alongside the trade pact, the two countries signed preliminary agreements on energy, diplomatic, and defence co-operation. The signing of the CEPA represents the last step before Parliament can ratify the agreement, which is expected to enter into force in 2027.
The move aligns with Carney's broader strategy to diversify Canada's trade relationships away from the United States amid ongoing tariff tensions. The government has set a goal to double Canada’s non-U.S. trade over the next decade, expanding economic ties across regions including the Asia Pacific, Europe, and the Middle East.