Canada, UAE Sign Trade Pact, Begin Extradition Talks

Ottawa and Abu Dhabi signed a comprehensive free trade agreement on Tuesday, a move that removes tariffs on more than 99 percent of Canadian goods entering the United Arab Emirates starting next year. The pact, known as the Canada-UAE Comprehensive Economic Partnership Agreement, also launched formal negotiations for an extradition treaty allowing the UAE to request the transfer of accused individuals.

The deal was negotiated in a record 47 days for both nations. Prime Minister Mark Carney announced the agreement following a two-day visit by Emirati Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan to the Canadian capital. During the visit, the two governments also signed a memorandum of understanding to establish a Joint Military Committee. This body will oversee military education, training, joint exercises, cybersecurity, and information sharing.

Maninder Sidhu, Canada's minister of international trade, stated on Wednesday that the agreement is expected to increase two-way trade from $2.4 billion to nearly $5 billion over the next decade. He noted that the deal grants Canadian companies greater access to the UAE's $500 billion economy. Carney specifically cited new markets for farmers producing pulses and canola, manufacturers of industrial machinery and power generation equipment, and the aerospace sector.

The trade accord follows a $50 billion investment pledge made by the UAE in 2025 for Canadian energy and development projects, with a focus on the Arctic. Carney said this week's discussions delivered progress on that pledge but did not provide specific details. The agreement is part of a strategy to diversify Canada's economic partnerships after tensions with Washington. In May 2025, Carney declared the traditional Canada-US relationship over, a shift accelerated by US tariffs imposed in March 2025 that affected most Canadian goods at 25 percent and energy exports at 10 percent.

Critics question the timing and scope of the new deals. Stuart Trew, director of the Trade and Investment Research Project at the Canadian Centre for Policy Alternatives, described the approach as a confusing strategy. He argued that the government identified the wrong crisis and exaggerated its need for foreign funding. Trew suggested that Canada is willing to agree to many terms to secure Emirati funds. He expressed concern about an extradition treaty with a state he called a paranoid surveillance state and a defense deal with a country he accused of fomenting war and rights violations in Africa.

Rights groups and journalists have reported evidence that the UAE finances the Rapid Support Forces in Sudan's civil war. The RSF faces accusations of genocide, though Abu Dhabi denies any involvement. Trew noted that nothing can fully replace the US trade relationship, pointing out that automobiles are Canada's second-largest goods export after energy. He observed that Canada barely exports anything to other major markets.

Carney's government stated that Canada now has preferential access to 1.5 billion consumers across 16 free trade agreements and 51 countries. Recent diplomatic efforts include a visit to China, where Beijing agreed to lower tariffs on Canadian canola oil to 15 percent while Canada accepts 49,000 Chinese electric vehicles. Carney also visited Doha in January and Saudi Arabia in July, where he secured 13 commercial agreements and memorandums of understanding worth $700 million. Talks on a free trade agreement with Turkey began last week, and Kuwait and Canada signed a defense and security memorandum in September.