Canada, UAE conclude trade talks as Ottawa seeks new markets

TORONTO: Canada and the United Arab Emirates concluded trade negotiations on Friday, paving the way for an agreement that would help Ottawa diversify trade beyond the United States and help the Middle Eastern nation increase non-oil exports.

The negotiations’ conclusion is a step toward signing the deal, formally called the Comprehensive Economic Partnership Agreement. “For far too long, Canada has put too many eggs in one basket,” Canadian Trade Minister Maninder Sidhu said at a press conference in Toronto, referring to dependence on the US.

The agreement would cut tariffs, reduce red tape and increase Canadian companies’ access to the largest Middle Eastern market for Canadian exports. It would cover sectors including engineering, aerospace, agri-food, clean technology and more, Sidhu said.

Sidhu did not say when the agreement would be signed, but said a legal review, signature and ratification would proceed quickly. The UAE is a big market for Canadian motor vehicles and parts, and machinery. Two-way trade between the countries was worth CUSD3.5 billion (USD2.48 billion) last year.

It has been growing at 10percent annually for the last few years, according to a government document. This year has shown that trade is essential for the global economy when it is transparent and stable, said Thani bin Ahmed Al Zeyoudi, the UAE’s foreign trade minister. The UAE last year committed up to USD50 billion in investment in Canada.

UAE sovereign wealth funds and state-owned companies have been exploring investments in Canada, and an announcement involving the Canadian energy sector would be made soon, Al Zeyoudi said.