Canada is widening economic ties with the United Arab Emirates (UAE) and European Union (EU) as Ottawa seeks to diversify export destinations amid its dependence on the U.S. market.
The United States remained the destination for 72% of Canadian goods exports in 2025, while exports to other markets rose 11.1%, Global Affairs Canada's 2026 trade summary says. The department cited U.S. tariffs and policy changes as obstacles to export growth in that market.
At a summit in Montreal on Oct. 29-30, Canadian and EU leaders launched the Alliance for the Future, covering trade, technology, critical resources and energy. They plan to outline a closer-association concept by their 2027 summit, a process that does not confer EU membership. The initiative builds on earlier discussions about closer Canada-EU ties.
Canada and the UAE's trade ministers signed a Comprehensive Economic Partnership Agreement (CEPA) on Oct. 27, but it has yet to take effect. Global Affairs Canada expects the agreement to lower or remove tariffs on more than 99% of Canadian exports currently headed to the UAE when fully implemented. The ministry counted C$3.5 billion in merchandise trade between the countries in 2025, and Canada's CEPA summary lists industrial, agricultural, forestry, fish and seafood exporters as potential beneficiaries.
Canada's resource output includes 4.9 million barrels of crude oil a day in 2023 and 163 billion barrels of proven reserves, figures that rank it fourth worldwide on both measures, Natural Resources Canada (NRCan) reports. In 2024, Canada accounted for 32.8% of global potash production and 24% of uranium output, the department says.
The Abu Dhabi Media Office said in November 2025 that the UAE had launched an investment framework of up to US$50 billion for Canada, including areas such as energy, mining, logistics and artificial intelligence. An October 2026 Canada-UAE joint statement described the commitment as facilitating up to C$70 billion in strategic investment opportunities. The figures refer to a framework and potential opportunities, not amounts reported as invested; separately, Masdar and NRCan agreed to explore renewable energy and storage options without naming projects or funding.
The UAE-based logistics company DP World, Arctic Gateway Group and CentrePort Canada signed a nonbinding memorandum of understanding on Oct. 28 to assess a route from Winnipeg through the Hudson Bay Railway to the Port of Churchill. Over two years, the parties will study the connection; the memorandum does not commit them to financing or operating it.
