Prime Minister Mark Carney has launched a new strategic partnership with the United Arab Emirates, signing a landmark trade agreement intended to expand Canadian exports, attract investment and deepen cooperation on defence and diplomacy.

The announcement followed a visit to Ottawa by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. The two countries signed the Canada-UAE Comprehensive Economic Partnership Agreement (CEPA) after concluding negotiations in just 47 days.

According to the federal government, the agreement will reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE once fully implemented. The deal is expected to enter into force in 2027, subject to the required implementation steps.

The partnership also expands cooperation in defence, cybersecurity, energy, technology and diplomatic training. A separate defence cooperation memorandum is intended to strengthen military education, joint exercises and information exchanges.

Carney’s government also highlighted progress connected to the UAE’s previously announced C$70-billion investment commitment to Canada. New initiatives include work on a transportation corridor linking the Port of Churchill, Hudson Bay Railway, CentrePort Canada and DP World’s international logistics network, alongside a renewable-energy cooperation framework.

Canada and the UAE aim to increase bilateral trade from approximately C$3.4 billion to C$7 billion over the next decade, according to the federal government.

The agreement is a significant step in Ottawa’s effort to diversify trade beyond its traditional markets. Its eventual impact will depend on implementation, business uptake and whether the expected investment and export growth materialize.