Canada and UAE sign comprehensive trade deal in Ottawa
Canada and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement in Ottawa on Tuesday. The deal, known as CEPA, is meant to lower barriers to trade and boost investment between the two countries. The Globe and Mail reported the signing.
Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing ceremony. The agreement was signed by UAE Foreign Trade Minister Thani Al Zeyoudi and his Canadian counterpart, Maninder Sidhu.
The agreement aims to cut tariffs, which are taxes on imported goods. It also aims to reduce red tape and improve market access for businesses in both countries. Once fully implemented, the CEPA will reduce or eliminate tariffs on more than 99 per cent of current Canadian exports to the UAE. The agreement is expected to enter into force in 2027.
The UAE is the largest Middle Eastern market for Canadian exports. Two-way trade between the countries was worth $3.5 billion last year. Government data show that trade has grown by about 10 per cent a year over the last few years. The UAE is a large buyer of Canadian motor vehicles, parts and machinery, according to the same reporting.
On investment, the UAE committed up to $50 billion in investment in Canada last year. Canadian and UAE ministers also signed agreements pledging to invest in clean power and energy infrastructure, according to CBC News.
Canada and the UAE signed preliminary agreements on energy, diplomatic and defence cooperation. They also signed a Foreign Investment Promotion and Protection Agreement, which sets clearer rules and protections for investors.
The Prime Minister's Office said the CEPA was negotiated and concluded in a record 47 days, in a readout of Carney's meeting with the Crown Prince.
The deal had a public stage before signing. Global Affairs Canada, the federal department that runs trade negotiations, consulted Canadians from December 13, 2025, to January 27, 2026. The consultation asked for views on priorities for the CEPA talks and on the UAE joining the CPTPP, a trade pact linking countries around the Pacific Rim.
