Canada and the United Arab Emirates have completed negotiations on a Comprehensive Economic Partnership Agreement, marking a major development in Ottawa's effort to broaden Canada's international trade relationships.

The agreement, announced in Toronto on July 24 by International Trade Minister Maninder Sidhu and UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi, is designed to reduce trade barriers, improve market access and strengthen investment ties between the two countries.

The UAE is already Canada's largest export market in the Middle East. Canadian merchandise trade with the UAE reached C$3.5 billion in 2025, while Canadian exports to the country increased by nearly 10% year over year.

The agreement could create opportunities for Canadian companies in areas including agri-food, engineering, aerospace, clean technology and other services, while strengthening supply-chain resilience and encouraging two-way investment.

For Canadian businesses, the deal is particularly significant as Ottawa attempts to reduce dependence on the U.S. market amid ongoing tariff uncertainty. The government has made trade diversification and expanded non-U.S. exports a central part of its economic strategy.

The agreement still needs to move through the required legal and implementation processes before its benefits take effect, but its conclusion represents an important new step for Canada's international trade and investment strategy.