Carney signs UAE deal to slash tariffs on 99% of Canadian exports

Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan signed a comprehensive trade agreement on Tuesday. The deal, formally titled the Comprehensive Economic Partnership Agreement or CEPA, aims to lower barriers between the two economies. It focuses on reducing tariffs and simplifying regulations for businesses operating in both countries.

The Prime Minister's Office stated that the agreement will eliminate or reduce tariffs on more than 99 percent of current Canadian exports to the UAE. This change is expected to open new markets for specific industries. These include farmers producing pulses and canola, manufacturers of industrial machinery and power generation equipment, and the aerospace sector. The office noted that the pact will also address non-tariff barriers to create a more predictable environment for trade and investment.

Ottawa has been actively pursuing trade deals with partners outside the United States. Carney pledged to double Canada's non-US trade over the next decade following tariffs imposed by US President Donald Trump. Previous attempts to reach a deal with Washington stalled, prompting Carney to negotiate agreements with countries across the Asia Pacific, Europe, and the Middle East. The UAE is currently the largest Middle East market for Canadian exports and a major buyer of motor vehicles, parts, and machinery.

Government data indicates that two-way trade between the nations was worth 3.5 billion Canadian dollars, or 2.48 billion US dollars, last year. This figure has grown by 10 percent annually for the past few years. The UAE also committed up to 50 billion US dollars in investment in Canada last year. In a statement, UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi said the agreement holds considerable potential for the private sector. He highlighted improved market access and investment opportunities in logistics, communications, advanced technology, and manufacturing.

Canadian Minister of International Trade Maninder Sidhu signed the deal alongside Al Zeyoudi. The two governments also signed preliminary agreements on energy, diplomatic, and defence cooperation. The comprehensive economic partnership is expected to enter into force in 2027.