Canada, UAE sign trade deal as Carney seeks new trading partners
Canada and the United Arab Emirates (UAE) signed a comprehensive trade agreement on Tuesday to lower barriers between their economies and encourage investment, as Prime Minister Mark Carney seeks to expand trade ties amid tensions with the United States.
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), which aims to cut tariffs, reduce red tape and improve market access for businesses in both countries.
Carney has pledged to double Canada’s non-US trade over the next decade as tariffs imposed by US President Donald Trump continue to affect the Canadian economy. Subsequent attempts to reach a deal with Washington have broken down, prompting Carney to pursue trade agreements with countries across the Asia-Pacific region, Europe and the Middle East.
“Once fully implemented, the CEPA will reduce or eliminate tariffs on over 99% of current Canadian exports to the UAE,” the Canadian Prime Minister’s Office said in a statement.
It said the agreement would open new markets for Canadian farmers producing pulses and canola, manufacturers of industrial machinery and power generation equipment, the aerospace sector and other Canadian innovators.
The agreement will also address non-tariff barriers, create a more predictable environment for trade and investment, and expand market access for Canadian goods and services in sectors including industry, agriculture, forestry, fisheries, environmental services and engineering. It is expected to enter into force in 2027, the Prime Minister’s Office said.
The two countries also signed preliminary agreements on energy, diplomatic and defence cooperation.
UAE Foreign Trade Minister Thani Al Zeyoudi said the agreement offered significant opportunities for businesses through improved market access and investment opportunities in high-growth sectors, including logistics, communications, advanced technology and manufacturing.
Al Zeyoudi signed the CEPA agreement with his Canadian counterpart, Maninder Sidhu.
The UAE is the largest Middle Eastern market for Canadian exports and a major buyer of Canadian motor vehicles, vehicle parts and machinery. Bilateral trade between the two countries was worth 3.5 billion Canadian dollars (2.48 billion US dollars) last year and has grown by about 10 per cent annually in recent years, according to government data.
The signing marks the final step before Canada’s Parliament can ratify the agreement, a Canadian government source said.
Credit: Reuters
