Canada and the UAE Sign Economic Partnership Agreement Covering 99% of Exports

Canadian Prime Minister Mark Carney and Crown Prince of Abu Dhabi Sheikh Khaled bin Mohamed bin Zayed Al Nahyan signed the Comprehensive Economic Partnership Agreement between Canada and the UAE in Ottawa during the Crown Prince's first visit to Canada. The agreement serves as an immediate step within a new strategic partnership covering the economy, energy, technology, education, defense, and diplomacy.

The agreement provides for reducing or eliminating tariffs on more than 99% of current Canadian exports to the UAE once fully implemented, while addressing non-tariff barriers and increasing access to service markets. Negotiations were completed in 47 days, marking the fastest free trade agreement negotiation in the history of both countries, with the agreement expected to enter into force in 2027.

During the visit, progress was made on the UAE's $70 billion investment commitments in Canada, which were announced during Carney's visit to Abu Dhabi in November 2025. Signed agreements included a memorandum of understanding between DP World, the Arctic Gateway Group, and CentrePort Canada to develop an integrated trade corridor, an energy cooperation arrangement between Masdar and Natural Resources Canada, as well as a defense MOU and the launch of talks on extradition and mutual legal assistance treaties.

Bilateral merchandise trade between the two countries reached $3.5 billion in 2025, including $2.8 billion in Canadian exports and $679.1 million in imports. Canada states that the agreement will double bilateral trade from $3.4 billion to $7 billion over the next decade, while opening greater access to a $700 billion UAE economy that serves as a gateway to the Middle East and North Africa market.

What do these terms mean?

Comprehensive Economic Partnership Agreement: A free trade agreement that goes beyond tariff reduction to cover services, investment, and regulatory cooperation between two countries.

Tariffs: Fees imposed by a country on goods entering or leaving its territory, impacting the final price of the product for the consumer.

Non-tariff barriers: Trade restrictions that do not take the form of tariffs, such as technical requirements, quality standards, and licensing procedures, which can hinder goods from entering the market.