Canada and the UAE launched a strategic partnership and signed a trade agreement expected to remove tariffs on more than 99% of Canadian exports, while advancing the UAE’s $70 billion investment commitment.
Canadian Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan have launched a new strategic partnership to expand cooperation in trade, investment, energy, technology, defence and education. During the Crown Prince’s first-ever visit to Canada, the initiative establishes a long-term framework for strengthening economic and security ties between the two countries.
A key outcome of the visit was the signing of the Canada-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA), following negotiations concluded in a record 47 days. Once implemented, the agreement is expected to reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE. It is expected to enter into force in 2027, subject to the required processes.
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The trade agreement is designed to improve market access for Canadian businesses across agriculture, industrial machinery, aerospace, forestry, seafood, environmental services and engineering. It will also address non-tariff barriers and create more predictable conditions for trade and investment. The two governments expect the agreement to support business expansion, strengthen supply chains and increase commercial opportunities in both markets.
The visit also advanced the UAE’s previously announced commitment to invest $70 billion in Canada, first announced during Carney’s visit to Abu Dhabi in November 2025. New commercial arrangements announced during the visit include a proposed transportation corridor connecting the Port of Churchill, the Hudson Bay Railway, CentrePort Canada and DP World’s global logistics network. The corridor is intended to create new trade and transportation opportunities.
Energy cooperation is another focus of the partnership. Renewable energy company Masdar and Natural Resources Canada signed an arrangement to encourage collaboration between UAE renewable energy firms and Canadian partners, drawing on their investment, development and operational expertise. The agreement provides a framework for identifying opportunities in the energy sector.
Canada and the UAE also signed a memorandum of understanding on defence cooperation. It covers military education and training, defence policy dialogue, joint exercises, defence industrial collaboration, cybersecurity and information exchanges. A Joint Military Committee will guide implementation. Both governments also agreed to begin negotiations on justice and public safety agreements, including an extradition treaty and a mutual legal assistance treaty.
Cooperation will extend to diplomatic education and training. Global Affairs Canada and the UAE’s Anwar Gargash Diplomatic Academy signed a memorandum to exchange best practices and collaborate on emerging issues, including the use of artificial intelligence and digital tools in diplomacy.
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The partnership builds on more than five decades of Canada-UAE relations. In 2025, bilateral merchandise trade reached approximately C$3.5 billion, while more than 150 Canadian companies operated in the UAE. The two countries are seeking to expand these commercial links through improved market access, investment and cooperation in strategic industries.