Canada, UAE sign trade pact as Ottawa seeks to diversify beyond US
The agreement is set to broadly lift tariffs on key products as Canadian officials hope to boost bilateral trade to $7 billion within a decade.
Canada and the United Arab Emirates formally signed a free trade agreement in Ottawa on Tuesday. The pact deepens their expanding economic relationship as Prime Minister Mark Carney seeks to diversify Canadian trade beyond the United States and Abu Dhabi extends a fast-growing network of bilateral trade deals.
Details: The agreement, known as a Comprehensive Economic Partnership Agreement (CEPA), was signed by Canada’s International Trade Minister Maninder Sidhu and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, with Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan in attendance at the signing ceremony.
Negotiations for the Canada-UAE CEPA concluded in July, after the two countries announced their intention to launch talks in November 2025. Tuesday’s signing paves the way for Canada’s Parliament to ratify the deal. The two sides also inked several memoranda of understandings to strengthen cooperation in key areas, including energy, defense, and diplomatic learning and development.
Under the CEOA agreement, the UAE will grant preferential access covering 93.4% of tariff lines and 93.6% of current Canadian exports upon entry into force. Ultimately, duties will be removed on more than 97% of tariff lines, covering over 99% of current Canadian exports to the Gulf state.
