The UAE expects its Comprehensive Economic Partnership Agreement (CEPA) with Canada to add about $8.7 billion to its gross domestic product and increase UAE exports to Canada by about $11.8 billion by 2033, Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, said on Wednesday.
The agreement is the first CEPA the UAE has signed with a G7 member, Al Zeyoudi told the Emirates News Agency. He said talks with other G7 countries had been completed, but Canada was the first to sign.
The deal liberalizes trade covering about 99% of the value of existing bilateral trade and 97% of all tariff lines, he said.
Non-oil trade between the two countries reached about $4.2 billion last year, up more than 22%. Trade grew a further 18% in the first half of this year from a year earlier.
UAE exports expected to benefit include iron, aluminum and other metals, gold, some electronic products, pharmaceuticals and food. Canadian machinery, electronic equipment, spare parts and food products sold to the UAE would also gain.
UAE and Canadian companies are negotiating trade and investment deals worth $15 billion, Al Zeyoudi said. He recalled $50 billion of planned UAE investments in Canada announced during the Canadian prime minister’s visit to the UAE last year.
Existing UAE investment in Canada is concentrated in energy, logistics, real estate and infrastructure. Al Zeyoudi said data centers are expected to play a major role in the next phase of investment.
The two countries signed the agreement in Ottawa on Tuesday.
