UAE, Canada sign trade pact scrapping tariffs on 99% of exports

Summary

• The two countries signed a comprehensive economic partnership agreement in Ottawa on Tuesday, October 27, 2026.
• Goods trade reached about $3.5 billion in 2025, with Canadian exports accounting for $2.8 billion.
• Ottawa expects the deal to double two-way trade to $7 billion within a decade.

The latest

Tariffs will be cut or eliminated on more than 99% of Canada's current exports to the UAE once a newly signed economic partnership agreement is fully implemented, with entry into force expected in 2027. The deal was signed in Ottawa on October 27, 2026, during a visit by Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi, alongside the launch of a long-term strategic partnership.

Details

• The agreement: The comprehensive economic partnership agreement cuts or removes duties on more than 99% of existing Canadian goods exports to the UAE at full implementation, according to the Canadian Prime Minister's Office. Ottawa expects the pact to enter into force in 2027, though no precise date has been announced.
• The negotiation: Talks were concluded in 47 days, which the Canadian government described as the fastest free trade agreement negotiation in the history of relations between the two countries.
• The numbers: Bilateral goods trade stood at roughly $3.5 billion in 2025, per the Canadian statement, split between $2.8 billion in Canadian exports and $679.1 million in imports from the UAE. Canada's trade minister projects that total doubling to $7 billion over the coming decade.
• The strategic track: Beyond trade, the two governments launched a long-term strategic partnership spanning the economy, energy, technology, education and defence, framed as the architecture around which individual agreements will be built.
• Defence cooperation: A memorandum of understanding on defence cooperation establishes a joint military committee between the two countries. The terms of reference and the timetable for its first session were not disclosed.
• Ports and logistics: DP World signed a memorandum of understanding with Arctic Gateway Group and CentrePort Canada to develop an integrated transport corridor linking the Port of Churchill, the Hudson Bay Railway and CentrePort — a route aimed at opening a northern export channel.
• Energy and investment: Masdar and Canada's Department of Natural Resources agreed an arrangement on energy cooperation, while Invest in Canada signed a separate agreement with the Abu Dhabi Chamber of Commerce and Industry to channel business-to-business activity.
• Legal channels: The two sides also launched negotiations on an extradition treaty and a mutual legal assistance treaty, extending the partnership into judicial cooperation. No timeline was given for concluding either text.
• The pipeline: The National, citing a government statement, reported that Emirati and Canadian companies are negotiating deals worth up to C$21.1 billion ($15 billion) across mining, logistics, energy and sovereign wealth fund investments.

Background

The visit builds on a UAE commitment announced in November 2025 to invest $70 billion in Canada. Tuesday's agreements mark the first structured attempt to convert that headline pledge into sector-specific arrangements covering ports, energy and critical minerals.

Between the lines

The tariff removal runs overwhelmingly in one direction by volume: Canadian exports are four times the size of Emirati imports, so market access is the asset Ottawa gained. The Churchill corridor memorandum and the Masdar energy arrangement point to where Abu Dhabi's return is expected — minerals, logistics infrastructure and energy assets rather than reciprocal goods trade.

What's next

Watch for ratification steps in both capitals ahead of the expected 2027 entry into force, the first meeting of the joint military committee, and whether the C$21.1 billion in company-level negotiations converts into signed deals.

Source: Office of the Prime Minister of Canada; The National