Canada signs trade deal with UAE in push for non-US markets

What the report says

Canada and the United Arab Emirates have signed a comprehensive economic partnership agreement aimed at reducing trade barriers, lowering tariffs and making it easier for companies in both countries to do business, according to Al Jazeera’s report based on government statements. The signing took place on Tuesday and was overseen by Canadian Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

The deal fits into Carney’s broader effort to expand Canada’s trade links beyond the United States, as tensions with Washington and failed talks on a new US arrangement have pushed Ottawa to seek partners elsewhere. Under the agreement, Canada said more than 99 percent of its current exports to the UAE could eventually face lower or no tariffs. The government said the pact should open opportunities for Canadian farmers and exporters in areas such as machinery, aerospace, agriculture and seafood.

The UAE said the agreement could help its private sector gain wider access to Canadian markets and investment opportunities, especially in logistics, communications, advanced technology and manufacturing. The two sides also signed preliminary arrangements on energy, diplomacy and defence cooperation.

Al Jazeera reported that the UAE is Canada’s largest export market in the Middle East, and that bilateral trade reached 3.5 billion Canadian dollars last year. The agreement is expected to enter into force in 2027, and Canada said it would help create a more predictable environment for trade and investment.