Business · Trade · 5 hrs ago
Canada and UAE sign trade deal to lower barriers and boost investment
Canada and the UAE signed a trade deal in Ottawa on Tuesday, with Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan at the ceremony.
The agreement aims to cut tariffs and ease access to each other's markets, including by reducing red tape for businesses.
Once fully implemented, it will reduce or remove tariffs on more than 99% of current Canadian exports to the UAE.
Carney is seeking more trade beyond the United States as US tariffs affect Canada's economy and efforts to reach a deal with Washington have stalled.
The UAE is Canada's largest Middle Eastern export market, and the countries' two-way trade was worth $3.5 billion last year.
Canada's Parliament must ratify the agreement next, and it is expected to take effect in 2027; the countries also signed preliminary agreements on energy, diplomatic and defence co-operation.
Canada and the United Arab Emirates signed a comprehensive trade deal on Tuesday to lower barriers and boost investment.
Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing in Ottawa.
The agreement aims to cut tariffs, reduce red tape and improve market access for businesses in both countries.
Once fully implemented, it is expected to reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE.
The deal is expected to enter into force in 2027, and the two countries also signed preliminary agreements on energy, diplomatic and defence co-operation.
- Who
- Canada and the United Arab Emirates. Prime Minister Mark Carney and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing.
- What
- They signed a Comprehensive Economic Partnership Agreement to lower trade barriers and boost investment.
- When
- Tuesday, October 27, 2026.
- Where
- Ottawa, Canada.
- Why
- The deal aims to cut tariffs, reduce red tape, improve market access and expand trade and investment ties.
This story does not have two clearly opposing sides.
The UAE committed up to $50-billion in investment in Canada.
Canada and the UAE signed the trade deal in Ottawa.
The agreement is expected to enter into force.
- Tariff coverage
- More than 99% of current Canadian exports to the UAE
- Two-way trade
- $3.5-billion last year
- Trade growth
- 10 per cent annually for the last few years
- UAE investment commitment
- Up to $50-billion in Canada last year
- Expected entry into force
- 2027
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What people are saying
Once fully implemented, the CEPA will reduce or eliminate tariffs on over 99% of current Canadian exports to the UAE. That means new markets for Canadian farmers growing pulses and canola, for manufacturers of industrial machinery and power generation equipment, for our world-class aerospace sector, and other Canadian innovators
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