RIYADH: Bilateral trade between the UAE and Canada is set for a boost through lower tariffs and improved market access after the two countries concluded negotiations on a Comprehensive Economic Partnership Agreement.
The CEPA is expected to build on already substantial trade between the two, which reached approximately $4.2 billion in 2025, a 21 percent increase on the previous year, according to a UAE government statement. The negotiations, which began only last month, were completed in record time, making the deal the fastest concluded under the UAE’s CEPA programme.
The agreement adds to the UAE’s broader strategy of expanding trade through bilateral deals as it works to diversify its economy beyond oil. Since launching the programme in September 2021, the UAE has concluded agreements with 38 countries and surpassed $1 trillion in total trade six years ahead of schedule, supporting its goal of more than doubling the size of its economy to over $800 billion by 2031.
Once ratified and implemented, the agreement will cut tariffs, lower trade barriers, and widen market access for businesses in both countries, while opening new opportunities in sectors including clean energy, advanced technology, data centres, aviation, agri-food, and critical minerals.
UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi said the outcome reflected the depth of the strategic relationship between the two nations and a shared desire to build a stronger, more resilient, and more sustainable economic partnership. “Through this agreement, we are opening new horizons for the business communities of both countries, expanding investment and collaboration opportunities across priority sectors including clean energy, advanced technology, data centers, agri-food, aviation, and critical minerals, sectors where our two economies are genuinely complementary and where the potential for long-term, mutually beneficial partnership is considerable,” he said.
A Record-Speed Negotiation
The announcement came during Al Zeyoudi’s visit to Canada, where he led a delegation of Emirati officials and business leaders. He and Canadian Minister of International Trade Maninder Sidhu announced the conclusion of the talks, which the UAE described as the fastest completed under its CEPA programme since its launch. Canadian officials likewise called the negotiations among the fastest their country has ever completed.
“The conclusion of negotiations on a CEPA with the UAE, which began last month, is the fastest negotiation ever completed by Canada, marking an important milestone in the growing relationship between our countries,” Sidhu said. He added that the agreement would allow Canadian businesses to use the UAE as a regional commercial hub to expand their exports, while encouraging UAE investment in projects that support Canada’s long-term economic goals.
