Canada and the United Arab Emirates signed a comprehensive trade deal in Ottawa on Tuesday, the governments said, as Prime Minister Mark Carney seeks new trading partners at a time of tension with the United States.
Source: Reuters via BusinessWorld
Mr Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing of the Comprehensive Economic Partnership Agreement (CEPA). Canada's Prime Minister's Office said the negotiations concluded in a record 47 days — the fastest either country has ever negotiated a free trade agreement.
Source: Prime Minister of Canada (pm.gc.ca)
The agreement was signed by Canada's International Trade Minister Maninder Sidhu and UAE Foreign Trade Minister Thani Al Zeyoudi during the crown prince's visit to Canada.
What the deal does
"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," the Prime Minister's Office said. The deal also addresses non-tariff barriers and widens market access in the industrial, agricultural, forest, fish and seafood, environmental and engineering sectors.
Mr Sidhu said the agreement should double two-way trade from $3.4 billion to $7 billion over the next decade — yaani, trade worth about seven arab dollars a year. He described the UAE as a gateway to a Middle East and North Africa market of nearly 500 million people. The CEPA is expected to enter into force in 2027, after Canada's Parliament ratifies it.
Why Canada is looking beyond the US
Mr Carney has vowed to double Canada's non-US trade over the next decade as President Donald Trump's tariffs have rippled through Canada's economy and attempts at a deal with Washington have broken down, pushing Ottawa to pursue trade pacts from the Asia Pacific to Europe and the Middle East, Reuters reported.
Alongside the trade deal, the two countries signed a memorandum of understanding on defence cooperation — covering military education and training, joint exercises, cyber security and a new Joint Military Committee — and preliminary agreements on energy and diplomatic training, the Prime Minister's Office said.
Pulses and canola are among the biggest winners named in the deal — crops grown by many Punjabi-Canadian farm families — and the agreement was signed for Canada by Trade Minister Maninder Sidhu. For Punjabi exporters and workers, the UAE also remains a major Gulf hub for jobs, flights and remittances.