Negotiations are underway between Canada and the United Arab Emirates over a comprehensive economic partnership agreement that is intended to commence next month. Canadian Trade Minister Maninder Sidhu made this announcement to Reuters on Tuesday, 13 January. This news came in the wake of Ottawa seeking to bolster ties with the Gulf country, besides attracting investment.
Canada has been attempting to shift exports away from its main market, the United States, mainly due to the tariffs imposed by U.S. President Donald Trump.
The efforts include a strengthening of trade & investment ties with Gulf countries that includes Saudi Arabia and Qatar, besides the UAE. Progress has gained momentum recently. The agreement includes up to a USD 36 billion investment commitment by Abu Dhabi in areas including energy.
Canada intends to attract investment in liquefied natural gas. Abu Dhabi’s state energy group ADNOC has been seeking expansion in North America through its international investment arm XRG, which seeks Canadian natural gas projects. The information was disclosed by Sidhu during a recent interview in Dubai.
Sidhu continued by stating that Canada is currently developing seven LNG projects. He envisaged scope in further opportunities materializing, which Canada hopes that the UAE would explore, besides scope in green energy.
Sidhu added that Ottawa also seeks enhancement in port capacity to boost exports to non-U.S. markets.
Sidhu was also of the view that Canada sees a lot of potential in the Indo-Pacific and in the European markets, which would be Canada’s focus.
Supporting Canada’s current focus on diversifying away from the U.S., Sidhu intends to join Prime Minister Mark Carney in China this week. That was Canada’s 1st official visit of a Canadian prime minister to China in 8 years. Ottawa seeks to rebuild ties with its second- largest trading partner after sustaining years of friction.
There are many areas in which both countries can collaborate, said Sidhu, adding that the discussions are also exploring opportunities in battery storage, energy, and education.
