Canada and the United Arab Emirates Sign a Free Trade Agreement
Canada and the United Arab Emirates (UAE) signed a free trade agreement on Tuesday in Ottawa, where Canadian Prime Minister Mark Carney met with visiting Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.
The two countries signed the Canada-UAE Comprehensive Economic Partnership Agreement after completing negotiations in a record 47 days. According to a statement from the Canadian Prime Minister’s Office, this was the shortest time either country has taken to conclude a free trade agreement.
Once fully implemented, the agreement will reduce or eliminate tariffs on more than 99 percent of Canada’s current exports to the UAE. It will also address non-tariff barriers, create a more predictable environment for trade and investment, and expand market access for Canadian goods and services.
The agreement covers a range of sectors, including industry, agriculture, forestry, fish and seafood, environmental services, and engineering. It is expected to enter into force in 2027.
The Prime Minister’s Office said the first-ever visit to Canada by an Abu Dhabi crown prince marked significant progress toward the UAE’s commitment to invest 70 billion Canadian dollars (about 50 billion U.S. dollars) in Canada. The investment commitment was announced during Carney’s visit to Abu Dhabi in November 2025.
In addition to the trade agreement, the two sides signed several arrangements on commercial and energy cooperation, as well as two memorandums of understanding on defense cooperation and diplomatic training. They also announced plans to begin negotiations on an extradition treaty and a mutual legal assistance treaty.
According to the Canadian Prime Minister’s Office, the agreement is intended to strengthen economic ties between the two countries, facilitate market access for goods and services, and create new opportunities for investment and cooperation across multiple sectors.
