Canada and the UAE have signed a trade pact that will cut tariffs on more than 99% of Canadian exports to the UAE, as Prime Minister Mark Carney looks for trading partners beyond the US.
Canada and the UAE have signed a trade pact that will cut tariffs on more than 99% of Canadian exports to the UAE, as Prime Minister Mark Carney looks for trading partners beyond the US.
Canada and the United Arab Emirates (UAE) signed a broad trade agreement on 27 October 2026, aiming to lower barriers between the two economies and attract more investment. Prime Minister Mark Carney is seeking new trade partners as tensions with the US continue.
Carney and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan oversaw the signing of the Comprehensive Economic Partnership Agreement (CEPA). The pact cuts tariffs, reduces red tape, and improves market access for businesses in both countries.
Tariff cuts and new markets
Once fully in force, the CEPA will reduce or remove tariffs on more than 99% of Canadian exports to the UAE. The Prime Minister’s Office said the deal will open markets for Canadian pulse and canola farmers, makers of industrial machinery and power generation equipment, and the aerospace sector. The agreement also addresses non-tariff barriers in areas such as agriculture, forestry, fish and seafood, and engineering. The CEPA is expected to take effect in 2027.
Trade and investment figures
Two-way trade between the countries reached USD 2.48 billion (CAD 3.5 billion) last year. Government data shows that trade has grown by 10% a year for several years. The UAE is the largest Middle Eastern market for Canadian exports and buys large volumes of Canadian motor vehicles, parts, and machinery. Last year, the UAE committed up to USD 50 billion in investment in Canada.
Next steps
Carney has pledged to double Canada’s trade outside the US within a decade. Talks with Washington have stalled, so Ottawa has pursued agreements across the Asia Pacific, Europe, and the Middle East.
The two countries also signed preliminary agreements on energy, diplomatic, and defence cooperation.
The signing is the final step before Canada’s Parliament can ratify the agreement.
