Prime Minister Mark Carney is set to finalize an investment agreement with the United Arab Emirates during his current visit, as per a government official who spoke to CBC News. The agreement, known as a foreign investment promotion and protection agreement (FIPA), is expected to facilitate investments between Canada and the U.A.E., providing a framework for economic collaboration and dispute resolution mechanisms.
In addition to the FIPA, there are plans to initiate discussions on a free trade agreement focusing on sectors such as artificial intelligence, aerospace, and labor mobility. This move is seen as part of a broader strategy to strengthen global economic ties amid changing dynamics in international trade.
During his visit, Carney is scheduled to meet with U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan to enhance economic partnerships in key areas like energy, agriculture, infrastructure, and AI. The aim is to attract significant foreign investment to Canada and diversify trade relationships following disruptions in trade with the U.S. due to trade policies under the Trump administration.
The trip also underscores efforts to position Canada as a reliable investment destination and a key player bridging the gap between the European Union and Asia. Building on recent interactions between Canadian and U.A.E. officials, the visit seeks to capitalize on the existing trade ties, with merchandise trade between the two countries valued at $2.6 billion in exports and $800 million in imports in 2024.
While there are concerns raised by human rights experts regarding the U.A.E.’s alleged support for paramilitary forces linked to atrocities in Sudan, Canadian officials maintain a stance of engagement to address such issues. The visit signals Canada’s pragmatic approach to trade partnerships, acknowledging the complexities of international relations while seeking to uphold Canadian values on the global stage.
As Carney navigates discussions with various countries, including India, China, and the U.A.E., the focus remains on fostering relationships that align with Canadian principles, even as the country adapts to evolving trade dynamics. The prime minister’s actions are closely watched for tangible outcomes that demonstrate the effectiveness of Canada’s engagement with major global players.
