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The signing ceremony took place in Ottawa during the first-ever visit to Canada by a Crown Prince of Abu Dhabi. Canadian Prime Minister Mark Carney hosted Sheikh Khaled bin Mohamed bin Zayed Al Nahyan for the event, where the two leaders also launched a new Strategic Partnership covering economic ties, energy, technology, education, defence, diplomacy and cultural exchange. The Prime Minister’s Office stated that the CEPA was concluded in a record 47 days, the fastest either country has negotiated such an agreement.
Ministers from both sides formally inked the deal, with UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi joining his Canadian counterpart Maninder Sidhu. According to government statements, the agreement will reduce or eliminate tariffs on over 99 percent of current Canadian exports to the UAE upon full implementation. This includes new opportunities for Canadian farmers, manufacturers and the aerospace sector.
Bilateral merchandise trade between Canada and the UAE reached C$3.5 billion in 2025, with Canadian exports growing by over 10 percent that year, government data shows.
The CEPA aims to double this trade volume to $7 billion over the next decade, officials from both countries indicated.
The deal addresses non-tariff barriers to create a more predictable environment for trade and investment.
The development builds on a $70 billion UAE investment commitment to Canada announced in November 2025 during Carney’s visit to the UAE, which included the launch of CEPA negotiations and a foreign investment promotion agreement that entered into force earlier this year. Preliminary agreements on energy, diplomatic and defence cooperation were also signed during the Crown Prince’s visit. These steps form part of efforts to diversify Canada’s trade partnerships.
Prime Minister Carney said in a statement, “The UAE and Canada are building big. In less than a year, we have put an investment protection agreement in force, negotiated and signed a trade agreement in record time, and turned a historic $70 billion commitment into real investments in Canadian energy, infrastructure, and technology.” UAE Minister Thani Al Zeyoudi noted considerable potential for the private sector in areas such as logistics, communications, advanced technology and manufacturing. The CEPA is expected to enter into force in 2027.
