CEPA Cuts Tariffs on 99% of Canadian Exports to UAE

The Comprehensive Economic Partnership Agreement between Canada and the United Arab Emirates eliminates or lowers tariffs on over 99% of current Canadian exports.

Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan signed the deal on Tuesday. The agreement aims to reduce regulatory barriers and expand market access for businesses in both nations.

Ottawa stated that the pact will benefit specific industries, including agriculture, manufacturing, and aerospace. Farmers growing pulses and canola, along with producers of industrial machinery and power generation equipment, will see new market opportunities. The government also identified the forest, fish, seafood, environmental, and engineering sectors as key areas for growth.

The deal is part of a wider strategy to diversify trade away from the United States. Carney has pledged to double non-US trade over the next decade following tariff disputes with President Donald Trump. Negotiations with Washington previously stalled, prompting Ottawa to pursue agreements across Asia Pacific, Europe, and the Middle East.

The agreement is scheduled to enter into force in 2027. It also includes measures to address non-tariff barriers and create a more predictable environment for investment. The two governments signed preliminary accords on energy, diplomatic, and defense cooperation alongside the main trade deal.

UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi signed the document with Canadian counterpart Maninder Sidhu. Al Zeyoudi described the pact as having considerable potential for the private sector, specifically citing opportunities in logistics, communications, advanced technology, and manufacturing. He noted these areas support a diversified and globally connected economy.

The UAE is currently the largest Middle East market for Canadian exports. It is a major buyer of Canadian motor vehicles, parts, and machinery. Two-way trade between the countries reached 3.5 billion Canadian dollars, or 2.48 billion US dollars, last year. Government data indicates this figure has grown by 10 percent annually for the last few years. The UAE also committed up to 50 billion dollars in investment in Canada last year.