UAE and Canada Sign CEPA to Double Bilateral Trade to $7 Billion by 2037

The UAE and Canada have officially signed a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, concluding negotiations in a record-setting 47 days. This agreement marks the fastest free trade deal negotiation for both nations.

The signing took place during the visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to Canada. The deal was inked by Dr Thani Al Zeyoudi, the UAE’s Minister of Foreign Trade, and Maninder Sidhu, Canada’s Minister of International Trade. The CEPA is anticipated to come into effect in 2027.

Economic Impact

Canadian Minister Sidhu stated that the agreement aims to double two-way trade between the two countries, increasing it from $3.4 billion to $7 billion over the next ten years. A key aspect of the CEPA is the reduction or elimination of tariffs on over 99 per cent of current Canadian exports to the UAE, which will open new markets for sectors such as agriculture (pulses, canola), industrial machinery, power generation equipment, and aerospace.

Beyond tariffs, the agreement also addresses non-tariff barriers and enhances market access for goods and services across industrial, agricultural, forestry, fish and seafood, environmental, and engineering sectors. Minister Sidhu highlighted the UAE's role as a gateway to the broader Middle East and North Africa market, encompassing nearly 500 million people and a GDP exceeding $7.2 trillion.

Strategic Partnership and Investments

The CEPA signing was part of a broader strategic partnership launched during the leaders' meeting, covering economic ties, energy, technology, education, defence, diplomacy, and cultural exchange. This follows a $70 billion investment commitment from the UAE to Canada, announced during Canadian Prime Minister Mark Carney's visit to Abu Dhabi in November 2025. These investments are projected to create over 100,000 jobs in Canada, focusing on logistics, infrastructure, energy, critical minerals, and artificial intelligence.

Also, Canada and the UAE signed a Memorandum of Understanding on Defence Cooperation, modernising their existing defence arrangements. This includes military education and training, defence policy dialogue, joint exercises, industrial cooperation, cybersecurity, and information exchange, with a Joint Military Committee established for oversight.