Canada and UAE sign trade deal cutting tariffs on over 99% of Canadian exports

Canada and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement on Tuesday that will reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE, as Prime Minister Mark Carney pursues trade ties away from Washington.

Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing, which the Prime Minister's Office said would open new markets for Canadian pulse and canola farmers, industrial machinery and power generation equipment makers and the aerospace sector. The deal also addresses non-tariff barriers and expands access in agriculture, forestry, fish and seafood, environmental and engineering services, the office said, with entry into force expected in 2027.

UAE Foreign Trade Minister Thani Al Zeyoudi, who signed with Canadian counterpart Maninder Sidhu, pointed to logistics, communications, advanced technology and manufacturing as sectors where the private sector stands to gain. The UAE is Canada's largest Middle Eastern export market and a major buyer of Canadian vehicles, parts and machinery; two-way trade was worth C$3.5 billion ($2.48 billion) last year and has grown about 10% annually in recent years, according to government data. The UAE also committed up to $50 billion in investment in Canada last year.

The signing is the last step before Canada's Parliament can ratify the agreement, according to a Canadian government source. Carney has vowed to double Canada's non-US trade over the next decade as President Donald Trump's tariffs ripple through the economy and attempts at a deal with Washington have broken down, pushing Ottawa toward pacts from Asia Pacific to Europe and the Middle East. The two countries also signed preliminary agreements on energy, diplomatic and defence cooperation.