Canada and United Arab Emirates Sign Comprehensive Economic Partnership Agreement

On Oct 27, Canada and the United Arab Emirates (UAE) concluded a Comprehensive Economic Partnership Agreement (CEPA). The signing ceremony was attended by Prime Minister Mark Carney and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, alongside UAE Foreign Trade Minister Thani Al Zeyoudi and Canadian trade official Maninder Sidhu. The pact aims to cut tariffs, streamline regulations, and broaden market access for businesses in both nations, with implementation slated for 2027.

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Carney has pledged to double Canada’s non-U.S. trade over the next decade, a strategy intensified after failed negotiations with the United States and the impact of U.S. tariffs on the Canadian economy. The CEPA follows a broader push for agreements across the Asia-Pacific, Europe, and the Middle East to diversify Canada’s export base.

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• Two-way trade reached C$3.5 billion (? $2.48 billion) in the most recent year, expanding at roughly 10 % annually.

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• The UAE is the largest Middle Eastern market for Canadian exports and a major purchaser of Canadian motor vehicles, parts, and machinery.

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• CEPA is projected to eliminate or reduce tariffs on over 99 % of current Canadian exports to the UAE, opening new avenues for sectors such as pulses, canola, industrial machinery, power-generation equipment, aerospace, agriculture, forestry, fish and seafood, environmental services, and engineering.

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• “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

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