UAE, Canada Sign Trade Deal Negotiated In Record 47 Days

(MENAFN- Khaleej Times) The UAE and Canada have signed a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, concluding negotiations in a record 47 days - the fastest either country has ever negotiated a free trade agreement, according to a statement issued by the Canadian government.

The agreement was signed during the ongoing visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to Canada.

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Dr Thani Al Zeyoudi, the UAE's Minister of Foreign Trade, and Canada's Minister of International Trade, Maninder Sidhu, signed the deal. The CEPA is expected to enter into force in 2027.

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Sidhu said the agreement would double two-way trade from $3.4 billion to $7 billion over the next decade.

Once fully implemented, the CEPA will reduce or eliminate tariffs on more than 99 per cent of current Canadian exports to the UAE. The Canadian government said this would open new markets for farmers growing pulses and canola, manufacturers of industrial machinery and power generation equipment, and the aerospace sector.

The agreement also addresses non-tariff barriers and expands market access for goods and services in the industrial, agricultural, forestry, fish and seafood, environmental, and engineering sectors.

Sidhu said Canadian businesses would gain greater access to the UAE's economy, which he described as a gateway to the wider Middle East and North Africa market of nearly 500 million people and more than $7.2 trillion in GDP.

$70 billion in investments, 100,000 jobs

The signing came during a UAE-Canada leaders' meeting, where both sides launched a new strategic partnership. The framework covers economic ties, energy, technology, education, defence and diplomacy, as well as cultural exchange.

“The UAE and Canada are building big,” said Mark Carney, Prime Minister of Canada, noting that in less than a year, the two countries had brought an investment protection agreement into force, signed a trade deal in record time, and turned the UAE's $70 billion commitment into real investments in Canadian energy, infrastructure and technology.

The visit marked significant progress on the UAE's commitment to invest $70 billion in Canada, announced during Carney's visit to Abu Dhabi in November 2025. Sidhu said the pledge could help create more than 100,000 jobs in Canada, with investments focused on logistics, infrastructure, energy, critical minerals and artificial intelligence.

Canada and the UAE also signed a Memorandum of Understanding on Defence Cooperation, modernising their existing defence arrangement. It covers military education and training, defence policy dialogue, joint exercises, defence industrial cooperation, cybersecurity and information exchange. It also establishes a Joint Military Committee to oversee implementation.

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