UAE and Canada formalise comprehensive bilateral trade agreement

The United Arab Emirates and Canada have signed a Comprehensive Economic Partnership Agreement to lower trade barriers and encourage bilateral investment.

The agreement was signed in Ottawa on 27 October by UAE Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi and Canada’s Minister of International Trade Maninder Sidhu. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Canadian Prime Minister Mark Carney witnessed the ceremony during an official visit.

Canada’s government said the agreement, known as CEPA, would reduce or eliminate tariffs on more than 99 per cent of existing Canadian exports to the UAE once fully implemented. It is expected to enter into force in 2027, subject to required domestic procedures.

Canadian officials said the pact would also improve access for exporters of forest products, fish and seafood, and providers of environmental and engineering services. Businesses will nevertheless have to comply with applicable regulatory requirements in each market.

The tariff provisions are intended to improve opportunities for Canadian agricultural producers, aerospace manufacturers and suppliers of industrial machinery and power generation equipment. The agreement also covers services, addresses non-tariff barriers and seeks to establish more predictable conditions for businesses operating across the two markets.

The signing followed negotiations completed in 47 days, a record for both governments. The talks concluded on 24 July, although the formal signing awaited the Abu Dhabi Crown Prince’s visit to Canada.

The two governments also announced a broader strategic partnership covering trade, investment, energy, technology, defence, security and sustainable development. Their joint statement identified supply-chain resilience, private-sector participation and the removal of unnecessary trade restrictions among the priorities for implementation.

Canada recorded bilateral merchandise trade with the UAE of approximately C$3.5 billion in 2025, comprising C$2.8 billion in Canadian exports and C$679.1 million in imports. Canadian merchandise exports increased by more than 10 per cent that year, according to figures released by the Canadian government.

The UAE has separately cited bilateral non-oil trade of $4.2 billion, equivalent to approximately C$5.9 billion, for 2025. The two figures reflect different trade measures and should not be treated as interchangeable.

Sidhu said the agreement could help double two-way trade over the next decade, citing a target of C$7 billion. That figure represents the Canadian government’s ambition rather than a guaranteed outcome of the agreement.

A bilateral investment protection agreement entered into force in May 2026, providing a separate framework for investors. The new trade accord adds provisions intended to facilitate commerce and improve access for businesses.

Investment formed another major component of the Ottawa discussions. Both leaders reaffirmed the UAE’s commitment to facilitate up to C$70 billion in strategic investment opportunities in Canada, particularly in energy, transportation infrastructure and technology. The commitment concerns prospective investments rather than funds already disbursed.

The governments welcomed cooperation among sovereign wealth funds, pension funds and financial institutions. Canada’s finance minister is expected to lead an investment engagement mission to the UAE accompanied by representatives of major Canadian financial organisations.

Abu Dhabi Chamber signed a memorandum of understanding with Invest in Canada to identify commercial opportunities, encourage business partnerships and facilitate investment flows. The arrangement is intended to provide an additional channel for private-sector engagement alongside the trade agreement.

Energy cooperation featured prominently in the accompanying agreements. UAE renewable energy company Masdar signed an arrangement with Natural Resources Canada to explore opportunities in renewable power and energy storage with Canadian partners.

The leaders also identified Canadian liquefied natural gas infrastructure and critical minerals as areas attracting interest from UAE investors. Their statement outlined possibilities for cooperation in hydrogen, electricity, carbon management and technologies supporting lower-emission energy systems.

Logistics companies and infrastructure organisations advanced a separate initiative. Arctic Gateway Group, CentrePort Canada and DP World in Canada signed a memorandum concerning port operations, logistics services and a possible transportation corridor linking the Port of Churchill, the Hudson Bay Railway and CentrePort Canada’s facilities with DP World’s network.

The two sides also welcomed collaboration between the UAE’s Technology Innovation Institute and Quebec’s Mila artificial intelligence institute, alongside prospective work in quantum computing, robotics, telecommunications and secure digital infrastructure.

Canada and the UAE agreed to pursue additional cooperation on defence industry partnerships and diplomatic training. They also expressed an intention to begin negotiations on an extradition treaty and a mutual legal assistance treaty addressing cross-border criminal matters.