Canada signs UAE trade pact to diversify exports
OTTAWA
Prime Minister Mark Carney (R), and Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, U.A.E. talk during a signing ceremony on Parliament Hill in Ottawa, Tuesday, Oct. 27, 2026. (The Canadian Press via AP)
Canada signed a trade pact with the United Arab Emirates on Oct. 27 to expand access for its exporters as Ottawa seeks to diversify trade beyond the United States.
Once fully implemented, the Comprehensive Economic Partnership Agreement (CEPA) will reduce or eliminate tariffs on more than 99 percent of current Canadian exports to the UAE, the Canadian prime minister’s office said.
It is expected to enter into force in 2027.
The deal will improve access for Canadian pulses and canola, industrial machinery, power generation equipment and aerospace products.
It also aims to reduce non-tariff barriers and expand access for goods and services in sectors including forestry, seafood and engineering.
Prime Minister Mark Carney has pledged to double exports to markets outside the United States over the next decade.
U.S. President Donald Trump’s tariffs and the breakdown of trade talks with Washington have prompted Ottawa to pursue agreements across Asia, Europe and the Middle East.
Canadian International Trade Minister Maninder Sidhu and UAE Foreign Trade Minister Thani Al Zeyoudi signed the pact in Ottawa at a ceremony attended by Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.
“We see considerable potential for our private sector,” Al Zeyoudi said, citing export opportunities and investment in logistics, communications, advanced technology and manufacturing.
The UAE is Canada’s largest export market in the Middle East.
Two-way merchandise trade totaled C$3.5 billion ($2.48 billion) in 2025, according to Canadian government figures.
The two countries also signed preliminary agreements on energy, diplomatic and defense cooperation.
The UAE last year pledged up to $50 billion in investment in Canada.