Canada signs trade deal with UAE in push for non-US markets

The agreement aims to cut tariffs, reduce red tape and improve market access for businesses in both countries.Canada and the United Arab Emirates have signed a comprehensive trade deal to lower barriers between the economies and boost investment, the governments have said.The deal comes as Canadian Prime Minister Mark Carney seeks to expand trade and investment ties amid tension with the United States.Recommended Stories list of 4 itemslist 1 of 4India and Malaysia pledge to bolster trade, defence collaborationslist 2 of 4India, EU agree on ‘mother of all’ trade dealslist 3 of 4Trump says trade agreement with Mexico, Canada ‘irrelevant’ to USlist 4 of 4India and New Zealand conclude free trade agreementend of listCarney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan presided over the signing of the Comprehensive Economic Partnership Agreement (CEPA) on Tuesday, which aims to cut tariffs, reduce red tape and improve market access for businesses in both countries.Carney has pledged to double Ottawa’s non-US trade over the next decade as US President Donald Trump’s tariffs have rippled through Canada’s economy.Subsequent attempts to reach a deal with Washington have broken down, which has pushed Carney to aggressively pursue trade pacts with countries from the Asia Pacific to Europe and the Middle East.“Once fully implemented, the CEPA will reduce or eliminate tariffs on over 99 percent of current Canadian exports to the UAE,” the Prime Minister’s Office said in a statement.“That means new markets for Canadian farmers growing pulses and canola, for manufacturers of industrial machinery and power generation equipment, for our world-class aerospace sector, and other Canadian innovators.”“The agreement will also address non-tariff barriers, create a more predictable environment for trade and investment, and expand market access for Canadian goods and services, including in the industrial, agricultural, forest, fish and seafood, environmental, and engineering sectors,” it said, adding that CEPA is expected to enter into force in 2027.Multiple dealsThe two countries also signed preliminary agreements on energy, diplomatic and defence cooperation.“We see considerable potential for our private sector, whether through improved market access for our exporters or access to investment opportunities in high-growth sectors such as logistics, communications, advanced technology and manufacturing – all of which will support our pursuit of a resilient, diversified and globally connected economy,” the UAE’s Foreign Trade Minister Thani bin Ahmed Al Zeyoudi said in a statement.He signed the CEPA deal with his Canadian counterpart, Maninder Sidhu.The UAE is the largest Middle East market for Canadian exports and a major buyer of Canadian motor vehicles and parts, and machinery.Two-way trade between the countries was worth 3.5 billion Canadian dollars ($2.48bn) last year. It has been growing at 10 percent annually for the last few years, according to government data.The UAE also committed up to $50bn in investment in Canada last year.