Carney signs trade and extradition pacts with UAE after crown prince visit

Canada and the United Arab Emirates opened negotiations on an extradition treaty and signed a comprehensive free trade agreement on Tuesday. The move allows Abu Dhabi to request the handover of individuals accused of crimes in the two nations. Ottawa announced the deal following a two-day visit to the capital by Emirati Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan, who met with Prime Minister Mark Carney.

The Canada-UAE Comprehensive Economic Partnership Agreement, or Cepa, was negotiated in 47 days, a record pace for both countries. Carney stated that the pact will reduce or eliminate tariffs on more than 99 percent of Canadian exports to the UAE starting next year. The agreement targets new markets for producers of pulses and canola, manufacturers of industrial machinery and power generation equipment, and the aerospace sector. Maninder Sidhu, the minister of international trade, said on Wednesday that the deal aims to double two-way trade from $2.4 billion to nearly $5 billion over the next decade. This expansion would provide Canadian firms greater access to the UAE economy, which is valued at $500 billion.

Beyond trade, the two governments signed a memorandum of understanding to establish a Joint Military Committee. This body will oversee military education, joint exercises, cybersecurity, and information exchanges. The diplomatic push follows a pledge made a year ago when the UAE committed $50 billion to Canadian energy and development projects, particularly in the Arctic. Carney said this week's talks delivered progress on that pledge but did not provide specific details on the implementation timeline.

Stuart Trew, director of the Trade and Investment Research Project at the Canadian Centre for Policy Alternatives, criticized the speed and scope of the agreements. He told Middle East Eye that the Emiratis are using the investment funds as leverage. "It looks like Canada is willing to agree to basically anything to try and get that money," Trew said. He questioned the wisdom of an extradition treaty with what he described as a paranoid surveillance state. Trew also raised concerns about defense cooperation with a country he accused of fomenting war and rights violations across Africa. Rights groups and correspondents have reported evidence that the UAE finances the Rapid Support Forces in Sudan's civil war, a group accused of genocide, though the UAE denies involvement.

The agreement fits into Carney's strategy to diversify Canada's partnerships as relations with Washington have frayed. Carney declared the old Canada-US relationship over in May 2025. US tariffs introduced in March 2025 hit most Canadian goods at 25 percent and energy at 10 percent. Carney's statement noted that Canada now has preferential access to 1.5 billion consumers across 16 free trade agreements in 51 countries.

Recent diplomatic efforts include a visit to China, where Beijing agreed to lower tariffs on Canadian canola oil to 15 percent while Canada accepts 49,000 Chinese electric vehicles. Carney also visited Doha in January, Saudi Arabia in July, where he secured 13 commercial agreements worth $700 million, and Turkey last week, where free trade talks began. In September, Kuwait and Canada signed a defense and security memorandum of understanding. Trew called the approach a confusing strategy, arguing the government has exaggerated its need for foreign funding and that nothing can fully replace the US trade relationship. He noted that automobiles are Canada's second biggest goods export after energy, yet Canada barely exports them anywhere else.

The new trade framework takes effect next year, setting the stage for expanded economic ties between North America and the Gulf.