Prime Minister Mark Carney is set to finalize an investment pact with the United Arab Emirates during his upcoming visit, a high-ranking government source informed CBC News. The agreement, known as a foreign investment, promotion, and protection agreement (FIPA), will facilitate investment between Canada and the U.A.E. by establishing regulations and a dispute resolution mechanism. These agreements create a stable investment environment, crucial during uncertain economic times.
Additionally, Canada is expected to initiate discussions for an accelerated free trade agreement with the U.A.E., focusing on sectors such as artificial intelligence, aerospace, and labor mobility. The move is seen as a strategic step amid global shifts away from globalization and towards protectionism.
Carney is scheduled to meet with U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan to enhance economic ties in key areas like energy, agriculture, infrastructure, and AI. The visit is part of Carney’s broader strategy to attract foreign investments to Canada and diversify trade partnerships following strains in the U.S.-Canada trade relationship due to tariffs imposed by former President Donald Trump.
The visit to the U.A.E. follows a recent trip by Sheikh Abdullah bin Zayed Al Nahyan, the country’s deputy prime minister and foreign affairs minister, to Canada. Bilateral trade between Canada and the U.A.E. reached $2.6 billion in exports and $800 million in imports in 2024, coinciding with the 50th anniversary of diplomatic ties between the two nations.
Despite concerns raised by human rights advocates regarding the U.A.E.’s alleged support for paramilitary forces involved in Sudan’s civil conflict, Canadian officials emphasize the importance of engagement with international partners to address human rights violations.
As Canada seeks to expand its trade horizons, experts stress the necessity of pragmatic diplomacy in navigating complex international relationships. While acknowledging the imperfections of potential trade partners, Canadian officials aim to uphold core values and advocate for human rights in their global engagements.
Carney’s proactive approach to fostering economic partnerships and promoting Canadian values on the international stage underscores the country’s commitment to responsible and principled diplomacy.