Canada and UAE Sign Trade Deal in Ottawa After Record 47 Day Negotiation

Canada and the United Arab Emirates signed a comprehensive trade agreement in Ottawa on Tuesday, a deal negotiated in just 47 days and built to cut tariffs on nearly all Canadian exports to the Gulf state. The Canada-UAE Comprehensive Economic Partnership Agreement, known as the CEPA, was signed on October 27 alongside the launch of a new Canada-UAE Strategic Partnership, the Prime Minister's Office said.

Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing. It was the first ever visit to Canada by a Crown Prince of Abu Dhabi. UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi signed the agreement with Canada's Minister of International Trade, Maninder Sidhu.

What the deal does

Once fully implemented, the CEPA will reduce or eliminate tariffs on over 99 percent of current Canadian exports to the UAE, according to the Prime Minister's Office statement carried by Reuters. The agreement is expected to enter into force in 2027. Sidhu said the deal would double two way trade from C$3.4 billion to C$7 billion over the next decade.

The 47 day negotiation was the fastest either country has completed for a free trade agreement, the Prime Minister's Office said. Carney pointed to the speed as proof of how fast the relationship has moved. "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 $70 billion commitment into real investments in Canadian energy, infrastructure, and technology," he said.

The Prime Minister's Office statement said the tariff cuts mean "new markets for Canadian farmers growing pulses and canola, for manufacturers of industrial machinery and power generation equipment, for our world-class aerospace sector, and other Canadian innovators."

Money and security came with it

The visit also moved forward the UAE's pledge to invest 70 billion Canadian dollars, about US$50 billion, in Canada. The pledge was first announced during Carney's visit to Abu Dhabi in November 2025. Alongside the trade deal, the two countries signed a defence cooperation pact and agreed to start negotiations on an extradition treaty and a mutual legal assistance treaty. They also signed agreements on energy cooperation and diplomatic training.

Why Ottawa is looking beyond Washington

The deal lands in the middle of a deliberate Canadian push for new markets. Carney has vowed to double Canada's non-US trade over the next decade, as President Donald Trump's tariffs have rippled through the Canadian economy and attempts at a deal with Washington have broken down, Reuters reported. The UAE agreement follows the same pattern as Canada's other recent trade work: sign where doors are open, and do it quickly.

For the UAE, the agreement adds another partner in a trade network it has been building deal by deal. For Canada, the test now is ratification and use: the agreement still has to enter into force in 2027, and exporters have to turn the tariff cuts into actual sales before the doubling target means anything on the ground.