UAE, Canada conclude trade pact talks in record time

The United Arab Emirates and Canada have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), the two governments said on Saturday.

The deal paves the way for a free trade agreement aimed at expanding investment, lowering trade barriers and deepening economic ties between the two countries.

What is the UAE-Canada CEPA trade agreement?

The CEPA is a free trade agreement between the UAE and Canada designed to reduce tariffs, simplify customs procedures and expand market access for businesses in both countries.

It focuses on sectors including aerospace, clean energy, agri-food, seafood, advanced technology, critical minerals and data centers. The pact also aims to boost investment in strategic infrastructure, including ports, LNG facilities and mining.

How was the CEPA agreement announced?

The announcement was made during UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi's visit to Canada, where he met Canadian Minister of International Trade Maninder Sidhu. Al Zeyoudi led a delegation of senior government officials and business executives during the visit. The negotiations, which began last month, were completed in what both countries described as a record timeframe.

The UAE said it was the fastest agreement concluded under its CEPA program, launched in 2021. Canada said it marked the quickest trade negotiation in its history. The agreement now awaits ratification before entering into force.

How much trade happens between the UAE and Canada?

Two-way trade between the UAE and Canada reached around $4.2 billion in 2025, up 21% from a year earlier, according to the UAE government.

The trade pact builds on the existing Foreign Investment Promotion and Protection Agreement (FIPA) between the two countries, which promotes and safeguards cross-border investment. Officials said the CEPA would also encourage greater investment in strategic infrastructure and strengthen supply chains between the two economies.

What did officials say about the UAE-Canada trade deal?

"The successful conclusion of the negotiations reflects the strength of the strategic relationship between our two countries and our shared ambition to build a deeper and more resilient economic partnership," Al Zeyoudi said in a statement. Sidhu said the agreement would create new opportunities for Canadian exporters by strengthening access to the UAE as a regional commercial hub. He added that it would encourage increased Emirati investment in Canada.

How does this CEPA fit into the UAE's wider trade strategy?

The UAE has signed CEPAs with 38 countries since launching the program in September 2021, as part of its strategy to expand global trade and diversify its economy beyond oil. The Gulf state aims to grow its economy to more than $800 billion by 2031. It says it has already surpassed $1 trillion in total trade value years ahead of schedule.