Canada and the United Arab Emirates strengthened their economic relations on Tuesday by signing a free trade agreement in Ottawa. This agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), was signed in the presence of Mark Carney, the Prime Minister of Canada, and Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi.
Details of the Agreement
The CEPA agreement was signed by Mary Ng, Canada's Minister of International Trade, and Thani bin Ahmed Al Zeyoudi, the Minister of Foreign Trade of the United Arab Emirates. Negotiations for this agreement concluded in July, and the two countries decided to initiate talks to launch these discussions in November 2022. The signing of this agreement allows the Canadian Parliament to ratify it.
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Dimensions of Economic and Trade Cooperation
In addition to the CEPA agreement, the parties signed several memoranda of understanding to enhance cooperation in key areas such as energy, defense, and diplomatic development. Under the CEPA agreement, the United Arab Emirates will grant Canada preferential access for 93.4% of tariff lines and 93.6% of current Canadian exports. Ultimately, tariffs will be eliminated on over 97% of tariff lines, which includes over 99% of current Canadian exports to this country.
This agreement is part of Canada's efforts to diversify its trade relations beyond the United States and to expand the United Arab Emirates' bilateral trade networks. In recent years, the United Arab Emirates has been recognized as one of Canada's main trading partners in the Middle East, and this agreement could facilitate trade and investment between the two countries.
Economic and Trade Implications
The signing of this agreement could contribute to the economic growth of both countries and create new opportunities for businesses and investors. Additionally, this agreement will help strengthen diplomatic and economic relations between the two countries and could serve as a suitable model for other countries in the region.
Overall, the agreement between Canada and the United Arab Emirates reflects the willingness of both countries to expand their trade and economic relations and could help strengthen bilateral cooperation in the future.
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