Introduction to Trade Negotiations
The United Arab Emirates (UAE) is actively pursuing a trade agreement with Canada, with the ambitious goal of doubling bilateral trade from its current approximate value of C$3.5 billion to C$7 billion. This initiative was announced by UAE Economy Minister Abdulla Bin Touq Al Marri during a conference in Calgary, signaling a significant push to enhance economic cooperation between the two nations.
Expanding Economic Ties and Diversification
The drive to expand trade comes as Canada seeks to diversify its economic partnerships beyond traditional markets. In 2024, Canada's two-way trade with the UAE was valued at C$3.4 billion, with Canadian exports reaching C$2.6 billion and imports at C$797 million. Canadian exports to the UAE saw a notable increase of 24% last year. The UAE has a track record of signing similar 'partnership agreements' with over two dozen countries, indicating a strategic approach to global trade. Key areas of interest for the UAE include Canadian investment in agritech and agribusiness, as the Gulf nation aims to reduce its dependence on food imports.
Ministerial Engagements and Strategic Goals
Discussions to bolster trade relations have involved high-level officials from both countries. Canadian Minister of International Trade Maninder Sidhu and UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi have held meetings to advance economic opportunities. Additionally, H.H. Sheikh Abdullah bin Zayed Al Nahyan, UAE Deputy Prime Minister and Minister of Foreign Affairs, has engaged with Canadian ministers to explore frameworks for cooperation. These discussions encompass a broad range of sectors, including:
- Transportation
- Industry
- Entrepreneurship
- Financial technology (fintech)
- Artificial intelligence
- Science and innovation
- Space
- Air transport
- Education
- Health
A Foreign Investment Promotion and Protection Agreement (FIPA) was concluded in 2018 after six rounds of negotiations, designed to provide greater predictability and certainty for investors in both countries. This existing framework underscores the long-term commitment to a robust economic relationship.
Future Prospects and Investment
The UAE has already demonstrated its investment in Canada, with companies like Taqa North Ltd. and Calgary-based Nova Chemicals operating in Alberta. The ongoing negotiations aim to build on these foundations, fostering further investment and trade across various sectors. The 50th anniversary of diplomatic relations between Canada and the UAE was celebrated in 2024, highlighting a deep and evolving partnership. While Canada does not currently have a free trade agreement with the UAE, these talks represent a significant step towards a more integrated economic future, with the clear objective of achieving the C$7 billion trade target.
5 Comments
Fuerza
More trade means more carbon emissions. Think about the planet!
Manolo Noriega
Expanding trade can bring new opportunities and investment for Canadian businesses, which is positive. Yet, we should be cautious about potential dependencies and ensure a level playing field for all domestic industries.
Fuerza
Excellent news for Canadian businesses! More exports, more jobs.
Ongania
While the economic potential of doubling trade with the UAE is significant, especially for sectors like agritech, Canada needs to carefully assess the long-term strategic implications of such close ties.
Fuerza
Diversification is a smart strategy for Canada's economy, and the UAE is a growing market. Still, the government must clearly articulate how these new partnerships align with Canada's broader foreign policy and values, not just financial goals.