Canada and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement (CEPA) to bolster bilateral trade. Prime Minister Mark Carney and Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing ceremony.
Maninder Sidhu signed the deal alongside Thani Al Zeyoudi, the Foreign Trade Minister. The agreement seeks to improve market access for businesses, reduce red tape, and cut tariffs between the two nations.
The Prime Minister's Office stated that the CEPA will reduce or eliminate tariffs on over 99 per cent of current Canadian exports to the UAE once fully implemented. Implementation of the pact is expected to occur in 2027.
Preliminary agreements were also signed regarding defence cooperation, energy, and diplomatic ties. Two-way trade between the countries reached C$3.5 billion ($2.48 billion) last year, growing at a rate of 10 per cent annually over recent years.
The UAE is the largest Middle Eastern market for Canadian exports and committed up to $50 billion in investment to Canada last year. Zeyoudi said, "We see considerable potential for our private sector, whether through improved market access for our exporters or access to investment opportunities in high-growth sectors such as logistics, communications, advanced technology and manufacturing – all of which will support our pursuit of a resilient, diversified and globally connected economy,."
Mark Carney vowed to double Canada's non-US trade over the next decade as the economy faces impacts from President Donald Trump's tariffs. A Canadian government source said the signing is the last step before the agreement can be ratified by Parliament.
Trade negotiations with Washington have broken down.
