Canada signs free trade deal with UAE as part of non-US trade push

Overview

Updated Oct 31

Canada and the United Arab Emirates signed the Comprehensive Economic Partnership Agreement in Ottawa on October 27, 2026, after 47 days of talks. The deal gives 93.6% of Canadian exports preferential access when it takes effect, expected in 2027, and cuts or removes tariffs on more than 99% once fully in place.

The two governments aim to double two-way trade to about C$7 billion. The deal sits alongside a C$70 billion UAE investment pledge that covers potential projects, not money already spent, and plans to negotiate an extradition treaty that human rights groups have criticized over the UAE's record.

Why it matters

Canada sends roughly three-quarters of its exports to the US; if diversification fails, its economy stays hostage to Washington's tariff decisions.

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Key Indicators

99%

Canadian exports to UAE with tariffs cut or eliminated

Share covered once CEPA is fully implemented.

93.6%

Canadian exports with preferential access at launch

Share receiving preferential market access when the deal is expected to take effect in 2027.

47 days

Days to negotiate CEPA

Fastest free trade agreement either country has negotiated.

C$3.5B

Canada-UAE merchandise trade in 2025

Bilateral goods trade, in Canadian dollars, per Global Affairs Canada.

$70B

UAE investment commitment to Canada

Announced during Carney's November 2025 Abu Dhabi visit; covers potential investments, not capital deployed.

21%

Growth in UAE-measured non-oil trade with Canada

UAE figures put non-oil trade at C$5.9 billion, a different measure from Canada's merchandise-trade figure.

10%

Annual growth in Canada-UAE trade

Average growth rate over the last several years, per government data.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Mark Carney

Prime Minister of Canada

Leading Canada's trade diversification strategy

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan

Crown Prince of Abu Dhabi

Made first-ever Abu Dhabi Crown Prince visit to Canada

Maninder Sidhu

Canadian Minister of International Trade

Signed CEPA on Canada's behalf

Dr. Thani bin Ahmed Al Zeyoudi

UAE Minister of Foreign Trade

Signed CEPA on UAE's behalf

Organizations Involved

Government of Canada

National government

Signed CEPA with the UAE

Signing its first trade agreement with a Gulf state as part of a broader effort to reduce dependence on the United States.

Government of the United Arab Emirates

Federal Government

Signed CEPA with Canada

Expanding its network of preferential trade agreements; Canada is its first G7 partner.

DP World

Logistics and Port Operator

Signed MOU on Arctic trade corridor

UAE state-linked logistics giant pursuing an integrated corridor linking Canada's Port of Churchill to global markets.

Timeline

November 2025 October 2026

5 events Latest: October 28th, 2026 · 2 weeks ago

Tap a bar to jump to that date

October 2026
UAE projects CEPA will add $8.7B to its economy
Latest Economic projection

The UAE said the agreement is expected to add about $8.7 billion to its GDP and lift its exports to Canada by about $11.8 billion by 2033.
October 28th, 2026
Canada and UAE sign CEPA in Ottawa
Treaty

Carney and Crown Prince Khaled preside over signing; deal eliminates tariffs on 99% of Canadian exports.
October 27th, 2026
Canada and UAE sign defence memorandum, set extradition talks
Agreement

The two countries signed a defence cooperation memorandum and said they would negotiate an extradition treaty and a mutual legal assistance treaty.
October 27th, 2026
July 2026
Canada and UAE conclude CEPA trade negotiations
Negotiation

Both sides wrap up talks for the Comprehensive Economic Partnership Agreement, setting up a signing.
July 24th, 2026
November 2025
UAE commits $70 billion to Canada during Carney visit
Investment

PM Carney's Abu Dhabi visit secures a historic $70 billion UAE investment commitment.
November 2025

Scenarios

CEPA takes effect in 2027 as planned

Likely Resolves by End of 2027

Discussed by: Government of Canada, Prime Minister's Office

Both governments expect ratification to proceed quickly. The deal enters into force in 2027, cutting tariffs on 99% of Canadian exports and setting up the projected doubling of two-way trade to $7 billion within a decade. This is the official expectation from Ottawa and Abu Dhabi.

Human rights opposition stalls or delays CEPA implementation

Unlikely Resolves by Q2 2027

Discussed by: Human Rights Watch, Trade Justice Network, Amnesty International Canada

Seventeen Canadian civil society groups signed an open letter warning that deeper UAE ties conflict with Canadian values, citing the UAE's human rights record and its alleged role in the Sudan war. If that pressure reaches parliament during ratification, implementation could slip past 2027 or face conditions.

Canada and UAE sign an extradition treaty

Uncertain Resolves by Q2 2028

Discussed by: CBC News reporting on the strategic partnership

Beyond trade, both countries agreed to launch negotiations toward an extradition treaty and a mutual legal assistance treaty. If talks succeed, it would mean formal criminal justice cooperation between the two countries. Human rights groups may push back on such cooperation given the UAE's record.

UAE's $70 billion pledge turns into signed projects

Uncertain Resolves by End of 2027

Discussed by: Globe and Mail, Government of Canada

The C$70 billion framework announced in November 2025 covers potential investments rather than capital already committed. Concrete items so far include a DP World MOU on a Port of Churchill corridor and a Masdar energy cooperation arrangement. Whether the full sum is deployed is a separate test from the trade deal.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

October 2020

UK-Japan trade deal (2020)

After leaving the European Union, Britain signed its first major independent trade deal with Japan — the UK-Japan Comprehensive Economic Partnership Agreement — in October 2020. It covered about $28 billion in annual trade and entered into force on January 1, 2021.

Then

The deal gave Britain a template for post-Brexit agreements and signaled it could trade outside the EU framework.

Now

UK trade deals since have expanded but have not replaced the lost EU trade volume, showing that diversification takes time.

Why this matters now

Like the UK after Brexit, Canada is signing trade deals to reduce dependence on a dominant partner amid an active trade dispute. The UK example shows such diversification is possible but slow to offset existing trade flows.

October 2016 - September 2017

Canada-EU CETA (2016-2017)

Canada's Comprehensive Economic and Trade Agreement with the European Union took nearly a decade to negotiate. It was signed in October 2016 and provisionally applied in September 2017, eliminating tariffs on about 98% of EU tariff lines.

Then

CETA gave Canadian exporters preferential access to the EU market, its second-largest trading partner.

Now

It became Canada's model for modern trade agreements, though its ratification dragged on for years due to regional hurdles.

Why this matters now

Shows Canada has pursued diversification before — but the UAE deal's 47-day negotiation is a dramatic departure from CETA's decade-long process. The comparison highlights how crisis urgency changes trade policy speed.

February 2022

UAE-India CEPA (2022)

The UAE signed its first major comprehensive economic partnership agreement with India in February 2022, covering about $45 billion in annual bilateral trade. The deal entered into force in May 2022.

Then

The UAE-India agreement became the template for the UAE's CEPA program, now extended to Indonesia, Turkey, and Canada.

Now

The UAE has steadily built a network of preferential trade agreements with major economies, reducing its own dependence on oil revenue.

Why this matters now

Shows the UAE's CEPA strategy is deliberate and expanding. Canada is its first G7 partner, marking the program's biggest test with a Western economy.