Prime Minister Mark Carney is set to finalize an investment pact with the United Arab Emirates during his upcoming trip, as per a government official speaking to CBC News. The anticipated Foreign Investment Promotion and Protection Agreement (FIPA) will pave the way for mutual investments between Canada and the U.A.E., establishing guidelines and a dispute resolution mechanism. Such agreements offer stability for investments, crucial in uncertain economic times.
Additionally, Canada is poised to kick off discussions towards a streamlined free trade agreement with the U.A.E., focusing on artificial intelligence, aerospace, and labor mobility. This move is seen as a step towards strengthening global trade ties amid increasing protectionism sentiments.
Carney’s meeting with U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan will concentrate on expanding economic cooperation in critical sectors like energy, agriculture, infrastructure, and AI. This visit precedes his attendance at the G20 summit in South Africa.
In a bid to attract substantial foreign investments to Canada and diversify trade partners following strained relations with the U.S., Carney is engaging with sovereign wealth fund leaders during his trip. The official aims to position Canada as a secure investment destination and a bridge between the European Union and Asia.
Carney’s visit to the U.A.E. reciprocates the earlier visit by Sheikh Abdullah bin Zayed Al Nahyan, showcasing the growing economic ties between the two countries. 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 50-year diplomatic anniversary.
While concerns have been raised regarding human rights issues in the U.A.E., particularly allegations of support for a paramilitary force involved in Sudan’s civil war, the Canadian government remains engaged in international efforts to address these challenges. Despite criticisms, the need for pragmatic engagement with trade partners is emphasized, highlighting the evolving global landscape.
In navigating trade relationships, Canada is urged to uphold its values while pursuing economic interests worldwide. With expectations for tangible outcomes from Carney’s diplomatic engagements, the prime minister faces the challenge of balancing economic gains with ethical considerations on the international stage.
