Canada and the United Arab Emirates signed a comprehensive trade deal on October 27, 2026, aimed at eliminating tariffs on over 99% of Canadian exports. Prime Minister Mark Carney is aggressively pursuing international trade partners to diversify Canada's economy beyond the United States. The summit also secured a CA$70 billion investment pledge from the UAE, alongside new defense and extradition treaty talks, drawing criticism from human rights groups.
Signing of the Canada-UAE trade agreement
- ▪The Canada-UAE Comprehensive Economic Partnership Agreement was signed by Canadian International Trade Minister Maninder Sidhu and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi
- ▪The Canada-UAE free trade negotiations concluded after a 47-day negotiation process.
- ▪Canadian Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the October 27, 2026 signing of a Comprehensive Economic Partnership Agreement.
Terms and economic impact of the trade deal
- ▪Bilateral merchandise trade between Canada and the United Arab Emirates reached 3.5 billion Canadian dollars ($2.48 billion) in 2025.
- ▪The trade agreement between Canada and the United Arab Emirates is expected to enter into force in 2027 following parliamentary ratification.
- ▪Upon full implementation, the trade agreement will reduce or eliminate tariffs on over 99 percent of Canadian exports to the United Arab Emirates.
- ▪Canadian International Trade Minister Maninder Sidhu stated that the agreement is expected to double two-way Canada-UAE trade from CA$3.4 billion to CA$7 billion over the next decade.
Canada's strategy to diversify trade beyond the US
- ▪Canadian Prime Minister Mark Carney has pledged to double Ottawa's non-United States trade over the next decade in response to United States tariffs.
- ▪Canadian Prime Minister Mark Carney pursued bilateral trade deals after negotiations on a trade agreement with the United States broke down.
Emirati investments and corporate agreements
- ▪The United Arab Emirates pledged to invest 70 billion Canadian dollars ($50 billion) in Canada during Prime Minister Mark Carney's visit to the Gulf state in November 2025.
- ▪Emirati companies announced they are negotiating trade and investment deals worth up to CA$21.1 billion with Canadian counterparts in mining, logistics, energy, and sovereign wealth funds.
- ▪Dubai-based port operator DP World signed a memorandum of understanding with Arctic Gateway Group and CentrePort Canada to explore developing a transport corridor, including Manitoba's Port of Churchill.
- ▪State-owned Abu Dhabi Future Energy Company (Masdar) signed an energy cooperation agreement with Natural Resources Canada.
Defense cooperation pact and human rights concerns
- ▪Human rights groups, including the Raoul Wallenberg Centre for Human Rights, criticized Canada's defense deal due to allegations that the United Arab Emirates supplies weapons to Sudan's Rapid Support Forces.
- ▪Canada and the United Arab Emirates signed an updated defense cooperation pact that establishes a Joint Military Committee to oversee joint training, exercises, and cybersecurity collaboration.
Proposed bilateral extradition treaty and criticism
- ▪Lawyer Paul Champ and human rights groups criticized the extradition treaty talks, noting Freedom House ranks the United Arab Emirates 18 out of 100 on civil liberties.
- ▪Canada and the United Arab Emirates agreed on October 27, 2026 to launch formal negotiations on a bilateral extradition treaty.
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