Canada and UAE Finalize Comprehensive Economic Partnership Agreement

Canada and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement (CEPA) on Tuesday, aiming to lower tariffs, reduce red tape and improve market access for businesses in both countries. The ceremony was attended by Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

The agreement is expected to eliminate tariffs on more than 99% of Canadian exports to the UAE, opening new markets for Canadian farmers, manufacturers, aerospace firms and other innovators. It also addresses non-tariff barriers and seeks to create a more predictable environment for trade and investment across sectors such as industrial equipment, agriculture, forestry, fisheries, environmental services and engineering. CEPA is slated to enter into force in 2027, pending ratification by Canada’s Parliament.

In addition to the trade pact, the two nations signed preliminary agreements on energy, diplomatic and defence cooperation. UAE Foreign Trade Minister Thani Al Zeyoudi said, "> 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."

The UAE is the largest Middle Eastern market for Canadian exports, purchasing motor vehicles, parts and machinery. Bilateral trade reached C$3.5 billion ($2.48 billion) last year, growing at about 10% annually. The UAE also pledged up to C$1 billion in investment in Canada.

The signing marks the final step before parliamentary approval of the agreement.