Canada and the United Arab Emirates have signed a landmark trade agreement that will cut or eliminate tariffs on more than 99 percent of Canadian exports to the UAE. The Comprehensive Economic Partnership Agreement (CEPA) was finalized after 47 days of negotiations and is expected to enter into force in 2027. The deal will benefit Canadian farmers, machinery and power equipment manufacturers, and aerospace firms.
The agreement marks a significant step in strengthening economic ties between Canada and the UAE. By reducing trade barriers, the CEPA aims to boost bilateral trade and investment. Canadian exporters will gain greater access to the UAE market, which is a key player in the Middle East’s economy. The agreement also includes provisions for cooperation in areas such as digital trade and environmental standards.
This trade pact follows growing economic collaboration between Canada and the UAE, including joint ventures in energy and infrastructure. The CEPA is part of Canada’s broader strategy to diversify its trade relationships beyond traditional partners. The agreement reflects the increasing importance of the Middle East as a trade partner for Canada, particularly in sectors such as agriculture and manufacturing. The deal is expected to create new opportunities for Canadian businesses and enhance economic stability in the region.
