Canada and the United Arab Emirates have signed a major trade agreement to strengthen economic ties and open new markets for businesses. The deal was signed in Ottawa on Tuesday as Prime Minister Mark Carney seeks to reduce Canada’s reliance on the United States and expand trade with other nations.
The agreement is known as the Comprehensive Economic Partnership Agreement, or CEPA. Canada’s International Trade Minister Maninder Sidhu and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi signed the pact. Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan attended the ceremony.
The agreement aims to make trade easier between the two countries. It will reduce tariffs on a wide range of goods and give Canadian exporters better access to the UAE market. It could also help firms in both countries find new partners and grow their sales.
The signing marks an important step in a wider effort to build closer business ties. Both countries have worked to deepen their economic links as global trade faces new risks and changing rules.
Talks on the trade pact ended in July. The two countries had announced plans to begin negotiations in November 2025. The quick pace of the talks showed the strong interest on both sides in reaching a deal.
Tuesday’s signing now allows the agreement to move to the next stage. Canada’s Parliament must ratify the pact before it can take effect. Once approved, the deal is expected to create new chances for trade and investment.
Under the agreement, the UAE will offer better market access for 93.4 percent of tariff lines. These cover 93.6 percent of Canada’s current exports to the Gulf state. Tariff lines refer to the types of goods listed under a country’s customs rules.
The deal will also remove duties on more goods over time. In the end, tariffs will be removed on more than 97 percent of tariff lines. These changes will cover over 99 percent of Canada’s current exports to the UAE.
Lower tariffs can make products cheaper for buyers and help firms compete in foreign markets. Canadian companies may gain more room to sell their goods in the UAE. UAE firms could also find it easier to do business in Canada.
The agreement could benefit exporters across several sectors. Companies that face lower costs may be able to offer better prices and reach more customers. The deal may also support new business links and encourage firms to explore projects in both countries.
The two sides signed other memoranda of understanding during the visit. These set out plans to improve cooperation in areas such as energy, defence, and diplomatic training. The agreements show that the partnership goes beyond trade in goods and services.
Energy is a key area for future cooperation. Both countries have an interest in secure energy supplies and major infrastructure projects. Closer links could help companies explore new deals and share knowledge in areas that support long-term growth.
The wider agreement also fits Canada’s plan to diversify its trade. The United States remains Canada’s largest trading partner, but disputes over tariffs and trade policy have pushed Ottawa to seek other markets.
Carney has made stronger global ties a key part of his economic plans. Closer links with the UAE could help Canadian firms reach buyers in the Middle East and attract more foreign investment. The Gulf state, in turn, is building a broad network of trade agreements with countries around the world.
For the UAE, the pact offers a path to stronger links with the Canadian market. It could also help businesses expand their reach and create new investment opportunities. Both governments are seeking ways to support growth and make their economies more competitive.
However, the deal’s full impact will depend on how quickly it is approved and put into practice. Businesses will need clear rules and reliable guidance to make use of the new market access. The scale of future trade growth will also depend on demand, costs and the ability of firms to compete.
Once the agreement takes effect, Canadian exporters will have wider access to the UAE under lower tariff rules. The pact could also support deeper cooperation in energy, defence and other key sectors.
The signing is a major step in Canada and the UAE’s growing relationship. It gives both countries a framework to expand trade, attract investment and build closer ties at a time when many governments are seeking new economic partners.
