The United Arab Emirates (UAE) and Canada have reinforced their bilateral relationship through a series of significant trade, investment, and defence agreements. The agreements, formalized during the visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to Ottawa, aim to expand economic cooperation and strengthen strategic ties between the two nations.
The key elements of the collaboration include a Comprehensive Economic Partnership Agreement (CEPA), an updated defence cooperation agreement, and a memorandum on diplomatic training. Both countries have also committed to begin discussions on extradition and mutual legal assistance treaties, marking a pivotal step in enhancing their strategic partnership.
The CEPA, which concluded swiftly in just 47 days of negotiations, is expected to eliminate or reduce tariffs on more than 99 percent of Canada’s current exports to the UAE once fully implemented. This agreement will also tackle trade barriers and increase access to services, specifically in engineering and environmental industries. As Canada seeks to diversify its international economic partnerships and lessen its reliance on the US market, it anticipates that the agreement will help double bilateral trade over the next decade.
Currently, the UAE stands as Canada’s largest export market in the Middle East. Over 150 Canadian companies operate in the Emirates, while the UAE has pledged up to $50 billion in investments in Canada, focusing on sectors like energy, artificial intelligence, critical minerals, and infrastructure. This partnership builds on existing investments by Emirati companies in Canada, including those in the chemicals and logistics sectors.
For the UAE, strengthening relations with Canada aligns with its broader strategy to expand international trade networks and diversify supply chains. Canada’s abundance of natural resources, agricultural production, advanced engineering capabilities, and access to major international markets make it an attractive partner.
Both countries have identified several sectors with significant potential for future collaboration, including critical minerals, food security, artificial intelligence, and infrastructure. For instance, cooperation in critical minerals could leverage Canada’s natural resources with Emirati investment in processing and industrial development. In agriculture, Canadian grains, pulses, and seafood could bolster the UAE’s food security.
Despite these advancements, the agreements necessitate further implementation. Canada’s Parliament must ratify the trade agreement, and investment commitments need to materialize into concrete projects. This strengthened partnership underscores a mutual interest in economic diversification, reliable supply chains, and international cooperation amid global trade uncertainties.