The UAE and Canada have signed a comprehensive economic partnership agreement (CEPA) aimed at doubling bilateral commerce to $7B over the next decade, expanding market access and strengthening investment and logistics ties.
The agreement will reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE once fully implemented, opening opportunities for Canadian agricultural producers, industrial manufacturers and aerospace companies according to a statement from the Canadian prime minister’s office.
The deal follows negotiations concluded in 47 days, marking the fastest free trade agreement either country has negotiated, the statement said.
The FTA was signed during a meeting in Ottawa between Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Canadian Prime Minister Mark Carney.
Expected to enter into force in 2027, the CEPA also aims to address non-tariff barriers and create a more predictable environment for trade and investment.
“The UAE and Canada are building big” Carney said. “In less than a year, we have put an investment protection agreement in force, negotiated and signed a trade agreement in record time, and turned a historic $70B commitment into real investments in Canadian energy, infrastructure, and technology.”
The UAE pledged to invest $70B in Canada during Carney’s visit to Abu Dhabi in November 2025.
Logistics and energy cooperation
Alongside the trade agreement, commercial deals were signed to strengthen transport connectivity and energy cooperation.
DP World signed agreements with Arctic Gateway Group and CentrePort Canada to develop an integrated transportation corridor linking Canada with its global logistics network.
Abu Dhabi-based Masdar also signed an agreement with Natural Resources Canada to establish a cooperation framework in the energy sector.
The two countries agreed to establish a joint military committee to advance defence cooperation, including military education and training, policy dialogue, joint exercises, defence industrial cooperation, cybersecurity and information exchanges.
Trade and investment links
The UAE is Canada’s largest export market in the Middle East, with more than 150 Canadian companies operating in the country.
Two-way merchandise trade reached $3.5B in 2025, comprising $2.8B in Canadian exports and $679M in imports. Canadian merchandise exports to the UAE increased by more than 10% during the year.
Canada’s Minister of International Trade Maninder Sidhu said the CEPA would increase bilateral commerce to $7B over the next decade.
The agreement adds to the UAE’s expanding network of 38 CEPA deals signed since 2022, including agreements with India, Australia, Turkey, Indonesia and South Korea, as Abu Dhabi seeks to diversify non-oil trade and expand access to international markets.
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