UAE, Canada Sign Trade Pact Aiming to Double Commerce to C$7bn

Agreement targets sweeping tariff reductions and builds on a C$70bn investment framework covering energy, technology and infrastructure.

The United Arab Emirates and Canada signed a comprehensive trade agreement on October 27 aimed at doubling bilateral commerce to C$7 billion within a decade, linking extensive tariff reductions to a wider investment partnership worth up to C$70 billion (US$50 billion).

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Canadian Prime Minister Mark Carney witnessed the signing by UAE Foreign Trade Minister Thani Al Zeyoudi and Canadian International Trade Minister Maninder Sidhu.

The agreement follows Carney’s November 2025 visit to the UAE, an investment protection accord that entered into force in May 2026, and trade negotiations concluded in July after just 47 days.

Under the Comprehensive Economic Partnership Agreement (CEPA), 93.6% of current Canadian exports will receive preferential market access upon its expected entry into force in 2027. Once fully implemented, tariffs will be eliminated on more than 99% of current Canadian exports, benefiting agriculture, aerospace, industrial machinery and services.

Canada recorded C$3.5 billion in bilateral merchandise trade in 2025, while UAE figures put non-oil trade at C$5.9 billion, up 21%. The figures represent different statistical measures and are not directly comparable.

Investment is the agreement’s second major pillar. The C$70 billion framework announced in November 2025 covers potential investments rather than capital already deployed. During the Ottawa visit, DP World signed an agreement to explore a Canadian Arctic logistics corridor, while Masdar established a cooperation framework for renewable energy and storage projects.

UAE officials also identified opportunities in artificial intelligence, critical minerals, advanced manufacturing and infrastructure.

For Canada, the pact supports diversification beyond its dominant US trading relationship. For the UAE, it strengthens access to North American markets while reinforcing its role as a gateway to the Middle East, Africa and Asia.

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