The United Arab Emirates and Canada formalized a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, marking the swiftest free trade negotiation in the history of both nations. The deal, finalized in a record 47 days, was signed during the visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, by Dr Thani Al Zeyoudi, UAE Minister of Foreign Trade, and Maninder Sidhu, Canada’s Minister of International Trade. The agreement is expected to come into effect in 2027.
Canadian officials anticipate the agreement will double bilateral trade from $3.4 billion to $7 billion within ten years. The CEPA will reduce or eliminate tariffs on over 99 percent of Canadian exports to the UAE, benefiting agricultural producers, particularly those growing pulses and canola, as well as manufacturers in industrial machinery, power generation, and aerospace sectors.
Beyond tariff reduction, the agreement seeks to address non-tariff barriers and enhance market access across various industries, including industrial, agricultural, forestry, fisheries, environmental, and engineering services. Canada views the UAE as a strategic gateway to the broader Middle East and North Africa region, which comprises nearly 500 million people and a combined GDP exceeding $7.2 trillion.
The trade agreement was signed in conjunction with the launch of a new UAE-Canada strategic partnership framework during a bilateral leaders' meeting. This partnership encompasses cooperation in areas such as economic ties, energy, technology, education, defense, diplomacy, and cultural exchange.
Canadian Prime Minister Mark Carney highlighted the rapid progress in bilateral relations, noting that within a year the countries had implemented an investment protection agreement, completed a historic trade deal, and translated the UAE’s $70 billion investment commitment into tangible investments in Canadian energy, infrastructure, and technology sectors.
The UAE’s $70 billion investment pledge, announced during Carney’s visit to Abu Dhabi in November 2025, aims to catalyze the creation of more than 100,000 jobs in Canada. The investments are targeted at logistics, infrastructure, energy, critical minerals, and artificial intelligence.
Additionally, the two countries updated their defense cooperation through a Memorandum of Understanding, modernizing previous arrangements. The agreement encompasses military education and training, defense policy dialogue, joint exercises, defense industrial collaboration, cybersecurity, and information sharing. A Joint Military Committee will be established to oversee the implementation of these initiatives.