Ottawa (Rajeev Shamra) — Canada will begin formal negotiations on a free trade agreement with the United Arab Emirates next month, Trade Minister Maninder Sidhu said, marking a fresh step in Ottawa’s efforts to expand economic ties beyond its traditional reliance on the United States.
The proposed talks aim to lay the groundwork for a comprehensive economic partnership agreement, focusing on trade, investment and broader commercial cooperation. Sidhu said the UAE represents a strategic partner for Canada, particularly as global trade dynamics shift and geopolitical uncertainties grow.
According to the minister, discussions are expected to cover a wide range of sectors, including energy, clean technology, education and infrastructure. Canada is also seeking increased investment from the Gulf region, especially in areas such as liquefied natural gas and renewable energy projects.
The move comes as Canada accelerates its trade diversification strategy, looking to strengthen links with markets in the Middle East, the Indo-Pacific and Europe. Officials have repeatedly said reducing overdependence on the U.S. market is a priority for the federal government.
Trade between Canada and the UAE has grown steadily in recent years, with both countries expressing interest in deepening commercial ties. The UAE has previously signalled interest in major investments in Canada, particularly in energy and long-term infrastructure development.
The announcement also coincides with Prime Minister Mark Carney’s broader diplomatic push to reset and rebalance Canada’s global economic relationships, including renewed engagement with China and other emerging markets.
If successful, the talks could lead to one of Canada’s most significant trade agreements in the Middle East, opening new opportunities for Canadian exporters and investors while strengthening bilateral relations with a key regional player.
