KABUL (Pajhwok): Canada and the United Arab Emirates (UAE) have signed a comprehensive trade agreement to reduce trade barriers and boost investment between the two countries, Reuters reported.
Canadian Prime Minister Mark Carney and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin ZayedAl Nahyan witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA), which aims to cut tariffs, reduce bureaucratic barriers and improve market access for businesses in both countries.
Carney has pledged to double Canada’s non-US trade over the next decade amid the impact of US tariffs on the Canadian economy. Efforts to reach a trade deal with Washington have stalled, prompting Canada to pursue agreements with countries across the Asia-Pacific region, Europe and the Middle East.
According to a statement from the Canadian Prime Minister’s Office, the agreement, once fully implemented, will reduce or eliminate tariffs on more than 99 per cent of Canada’s current exports to the UAE.
The statement said the deal would benefit Canadian farmers, manufacturers of industrial machinery and power generation equipment, and the aerospace sector, among others.
It added that the agreement would also address non-tariff barriers, provide a more predictable environment for trade and investment, and expand market access for Canadian goods and services in sectors including industry, agriculture, forestry, fisheries, environmental services and engineering. The agreement is expected to enter into force in 2027.
The two countries also signed preliminary agreements on energy, diplomatic relations and defencecooperation.
UAE Foreign Trade Minister Thani Al Zeyoudi said the agreement would create opportunities for businesses through improved market access and investment in high-growth sectors, including logistics, communications, advanced technology and manufacturing.
Al Zeyoudi signed the agreement with his Canadian counterpart, Maninder Sidhu.
The UAE is Canada’s largest export market in the Middle East and a major buyer of Canadian motor vehicles, parts and machinery. Bilateral trade between the two countries was valued at 3.5 billion Canadian dollars (2.48 billion US dollars) last year, according to government data. Trade has grown by an average of 10 per cent annually in recent years.
The UAE also pledged up to 50 billion dollars in investment in Canada last year.
A Canadian government source said the signing marked the final step before the agreement could be ratified by Canada’s Parliament.
PAN Monitor/sa
