Canada and the United Arab Emirates have signed a comprehensive free trade agreement after negotiations completed in a record 47 days, the fastest either country has ever concluded a trade deal, according to the Canadian Prime Minister’s Office.
The Canada-UAE Comprehensive Economic Partnership Agreement (CEPA) was signed in Ottawa on Tuesday during a visit by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, according to Xinhua and the Prime Minister’s Office. Prime Minister Mark Carney hosted the crown prince, the first visit to Canada by a Crown Prince of Abu Dhabi.
What the deal covers
Once fully implemented, the agreement will reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE, according to the Prime Minister’s Office. It covers industrial products, agriculture, forestry, fish and seafood, environmental services and engineering, and addresses non-tariff barriers. It is expected to enter into force in 2027, after ratification.
Canadian officials said the deal should help farmers growing pulses and canola, makers of industrial machinery and power generation equipment, and the aerospace sector. Trade Minister Maninder Sidhu said the agreement should double two-way trade, with figures cited ranging from $2.4 billion to $3.4 billion today to nearly $5 billion to $7 billion over the next decade, depending on the measure used.
Beyond trade
The two countries also signed commercial and energy cooperation arrangements, memorandums on defence cooperation and diplomatic training, and agreed to begin negotiations on an extradition treaty and a mutual legal assistance treaty, according to the Prime Minister’s Office. The visit also advanced the UAE’s commitment, announced during Carney’s visit to Abu Dhabi in November 2025, to invest 70 billion Canadian dollars (about US$50 billion) in Canada.
Carney has vowed to double Canada’s non-US trade over the next decade as US tariffs have rippled through Canada’s economy, according to BusinessWorld. The UAE deal is the latest step in that diversification drive.
