Prime Minister Mark Carney and His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, have officially launched a new Strategic Partnership between Canada and the United Arab Emirates (UAE). The visit, the first-ever by a Crown Prince of Abu Dhabi to Canada, solidified a series of major economic, security, and diplomatic agreements designed to deeply expand cooperation between the two nations.
Record-breaking trade agreement (CEPA)
The cornerstone of the new partnership is the newly signed Canada-UAE Comprehensive Economic Partnership Agreement (CEPA). Negotiated in a record-breaking 47 days, the fastest free trade agreement either country has ever completed, the pact is expected to enter into force in 2027.
Once fully implemented, the CEPA will eliminate or reduce tariffs on over 99% of current Canadian exports to the UAE.
Key highlights of the CEPA include:
- Expanded market access: Greater opportunities for Canadian farmers (pulses and canola), industrial machinery and power generation equipment manufacturers, the aerospace sector, critical minerals, and agri-food innovators.
- Broader sectors covered: Enhanced market access across industrial, agricultural, forest, fish and seafood, environmental, and engineering sectors.
- Strategic gateway: Unlocking access to the UAE’s $700 billion economy, which serves as a crucial gateway to the broader Middle East and North African (MENA) market representing nearly 500 million people and over $7.2 trillion in GDP.
Billions in investment and key commercial accords
The partnership builds heavily upon the UAE’s historic $70 billion investment commitment to Canada, first announced during Prime Minister Carney’s visit to Abu Dhabi in November 2025. Several major commercial agreements and frameworks were unveiled to channel these funds into Canadian infrastructure and energy:
- DP World transportation corridor: DP World signed a Memorandum of Understanding (MOU) with the Arctic Gateway Group and CentrePort Canada to advance strategic trade by creating an integrated transportation corridor linking the Port of Churchill, the Hudson Bay Railway, CentrePort Canada, and DP World’s global logistics network.
- Energy cooperation: Natural Resources Canada and Masdar established a new Energy Cooperation Arrangement to combine UAE renewable energy investment expertise with Canadian partners under governmental facilitation.
- Business facilitation: Invest in Canada and the Abu Dhabi Chamber of Commerce and Industry inked an agreement to boost information sharing, business connections, and delegations.
Looking ahead
Prime Minister Carney emphasized that the new Strategic Partnership fortifies Canada’s economic resilience by diversifying trade and securing reliable, forward-looking international allies. With Canada currently boasting preferential access to 1.5 billion consumers across 51 countries, the Canada-UAE CEPA marks a major leap forward in expanding the nation’s global trade footprint.
Learn more:
- Prime Minister Carney meets with Crown Prince of Abu Dhabi His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan
- Prime Minister Carney launches new Strategic Partnership with the UAE, welcoming landmark trade agreement and billions in investment
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