Canada and UAE sign trade agreement, advance $70-billion investment commitment

Canada and the United Arab Emirates (UAE) have launched a new strategic partnership covering trade, energy, technology, defence and diplomacy, following a two-day visit to Ottawa by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

Prime Minister Mark Carney announced the partnership on Oct. 27, alongside the signing of the Canada-UAE Comprehensive Economic Partnership Agreement (CEPA).

Negotiations for the trade agreement concluded in 47 days, according to the federal government. Once fully implemented, the agreement will reduce or eliminate tariffs on more than 99 per cent of current Canadian exports to the UAE.

The agreement is expected to expand market access for Canadian businesses in sectors including agriculture, forestry, fisheries, aerospace, industrial machinery, energy and engineering. It will also address non-tariff trade barriers and establish more predictable conditions for trade and investment.

The federal government expects the agreement to come into force in 2027.

The visit also advanced the UAE's previously announced commitment to invest $70 billion in Canada.

Among the agreements announced was a memorandum of understanding between DP World, Arctic Gateway Group and CentrePort Canada to explore opportunities for an integrated transportation corridor connecting the Port of Churchill, the Hudson Bay Railway, CentrePort Canada and DP World's international logistics network.

The proposed corridor is intended to strengthen trade connections and expand access to international markets.

Separately, Masdar and Natural Resources Canada established a framework for energy cooperation, bringing together UAE renewable energy companies and Canadian partners. Invest in Canada and the Abu Dhabi Chamber of Commerce and Industry also signed an agreement to facilitate connections and information-sharing between businesses.

The two countries signed a memorandum of understanding on defence cooperation, covering military education and training, joint exercises, cybersecurity, defence industry collaboration and information exchanges. A Joint Military Committee will guide implementation.

Canada and the UAE also agreed to deepen cooperation on diplomatic training and education through an agreement between Global Affairs Canada and the Anwar Gargash Diplomatic Academy.

Negotiations are also expected to begin on justice and public safety agreements, including an extradition treaty and a mutual legal assistance treaty.

The strategic partnership establishes a framework for further cooperation as Canada seeks to diversify its international trade relationships and attract investment.

The agreements announced during the visit include both formal commitments and initiatives that will require further negotiations or implementation before their full effects are realized.