Canada and UAE sign trade deal for broader cooperation
Ottawa seeks new trading partners as relations with the United States come under pressure.
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Canada and the United Arab Emirates signed a comprehensive trade agreement on Tuesday. The deal is intended to lower trade barriers and encourage investment as Canada seeks to reduce its economic dependence on the United States.
The agreement is called the Comprehensive Economic Partnership Agreement (CEPA). According to Reuters, it was signed by Canada's Minister of International Trade, Maninder Sidhu, and his Emirati counterpart, Thani bin Ahmed Al Zeyoudi, during Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan's visit to Ottawa.
The agreement had already been negotiated in July, but still required formal signing. Canada's parliament must then ratify the treaty before it can fully enter into force. The precise date on which businesses can use the new arrangements was not announced on Tuesday.
Through the agreement, Canada and the UAE aim, among other things, to improve market access and simplify trading procedures. The Canadian government also identifies cooperation on energy, critical minerals, infrastructure, aviation, artificial intelligence and advanced communications as part of the broader relationship.
The trading relationship is smaller for Canada than its relationship with the United States, but Ottawa sees the Emirates as an important gateway to the Gulf region and other Middle Eastern markets. In 2025, bilateral goods trade amounted to C$3.5 billion, according to the Canadian government. Canada exported C$2.8 billion worth of goods to the UAE and imported C$679 million.
The agreement fits into a broader change of course by Prime Minister Mark Carney. His government is seeking to build new trade and investment relationships with Europe, Asia and the Middle East. The reasons include US tariffs and uncertainty over the future economic relationship between Ottawa and Washington.
Critics may point out that a trade treaty does not automatically lead to more jobs or investment. The Canadian government cites an Emirati investment commitment of $70 billion, but that amount is a political pledge rather than a guarantee that all the projects will be carried out. It is also not yet clear which sectors will benefit from the agreement first.
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One story, several perspectives
What is established
- Canada and the UAE have concluded a comprehensive economic partnership agreement.
- The agreement still has to be ratified by Canada's parliament.
- Canada is seeking to diversify its trade and investment geographically.
- The Canadian government cites cooperation on energy, critical minerals and technology.
Left
Arguments A trade agreement is only convincing if it also protects labour rights, transparency and human rights. Cooperation with an authoritarian partner must not mean that public oversight and conditions for businesses disappear.
Values Equality, human rights, public oversight and worker protection.
Consequences Without clear conditions, investment may primarily benefit large companies, and Canada could replace existing dependencies without materially improving the balance of power.
Centre
Arguments Diversifying trade is sensible, but the agreement should be implemented step by step and monitored by parliament. Concrete results for Canadian businesses and workers matter more than grand announcements.
Values Institutional oversight, economic stability and feasibility.
Consequences Gradual implementation could open up new markets without Canada committing itself to unrealistic expectations or excessive geopolitical risks.
Right
Arguments Canada must quickly tap new markets and sources of investment to become less vulnerable to US pressure. A trade agreement with the UAE could give businesses greater freedom and more export opportunities.
Values National economic independence, competitiveness and reduced dependence on a single partner.
Consequences Rapid trade growth could create jobs and attract investment, but it also requires strong protection for strategic sectors and national security.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The article's core is confirmed by Reuters and Canadian government sources. The investment commitment and future parliamentary ratification are carefully described as a pledge and a subsequent step respectively.
- confirmed Canada and the United Arab Emirates signed a comprehensive trade agreement on 27 October 2026. — Reuters reported the planned signing; the Canadian prime minister confirmed the signing ceremony and the broader cooperation. source
- confirmed The agreement is intended to lower trade barriers and encourage investment. — Reuters described this as the purpose of the CEPA; Global Affairs Canada identifies market access and trade barriers as key points. source
- confirmed The agreement still has to be ratified by Canada's parliament before it can fully enter into force. — Reuters reported that parliamentary ratification is the next step. source
- confirmed Goods trade between Canada and the UAE amounted to C$3.5 billion in 2025. — This figure and the division between exports and imports are contained in Canadian government information. source
- confirmed The UAE pledged an investment commitment of $70 billion to Canada. — The Canadian government refers to this as an investment commitment; the article emphasises that it is not a guarantee of implementation. source
Editor's note
The signing and the main trade figures were confirmed by Reuters and Canadian government sources. The Canadian investment pledge is presented as a commitment, not as realised investment.Sources
- Canada and the UAE to sign trade deal on Tuesday, source says — Reuters
- Prime Minister Carney to welcome Crown Prince of Abu Dhabi — Prime Minister of Canada
- Canada-UAE Comprehensive Economic Partnership Agreement — Global Affairs Canada