Canada and the US working on new trade agreement after Carney and Trump talks

Canada and the United Arab Emirates (UAE) have concluded a comprehensive free trade agreement and begun negotiations on an extradition treaty. According to a statement from Ottawa, this treaty will allow Abu Dhabi to request the transfer of individuals accused of crimes.

The announcement followed the visit of the Emirati Crown Prince to the Canadian capital. Khalid bin Mohammed bin Zayed Al Nahyan spent two days with Prime Minister Mark Carney and signed a Memorandum of Understanding (MoU) to establish a Joint Military Committee between the two parties. This committee will cover military education and training, joint exercises, cybersecurity, and information exchange.

The free trade agreement, which was agreed upon in a record 47 days for either party, is named the Canada-UAE Comprehensive Economic Partnership Agreement (Cepa). According to Carney, it will lead to the reduction or complete elimination of tariffs on over 99 percent of Canadian exports to the UAE starting next year.

Carney noted that this will open new markets for Canadian farmers growing beans and rapeseed, for manufacturers of industrial equipment and energy generation equipment, as well as for Canada's aerospace sector and other Canadian innovators.

Canada's Minister of International Trade, Maninder Sidhu, announced on Wednesday that Cepa will double bilateral trade between Canada and the UAE from $2.4 billion to nearly $5 billion over the next decade, providing Canadian businesses greater access to the UAE's $500 billion economy.

Previously, the UAE committed to investing $50 billion in Canadian energy and development projects last year, particularly in the Arctic, following Carney's visit to Abu Dhabi. Carney stated that this week's discussions with bin Zayed 'have led to significant progress' in fulfilling this commitment, though he did not go into detail.

The American president, Donald Trump, declared on Sunday that a trade agreement with Canada will be finalized soon, amid the deterioration of trade relations between the two nations, which has intensified in recent months.

During a rally held in Port Huron, northern Michigan state, where he appeared to support Republican candidates aiming for the interim elections scheduled for November 3rd, Trump guaranteed: 'We will resolve this quickly; they are willing to give us everything we want.'

The head of state reiterated his justifications for applying customs tariffs on Canadian goods, once again accusing Canada of 'not stopping stealing' from the United States.

Bilateral trade relations between Ottawa and Washington worsened at the end of August after negotiations failed to prevent the imposition of a $20 billion surcharge on Canadian products, such as wine, cement, and hockey sticks.

In retaliation, the Canadian government imposed equivalent tariffs on US imports, which caused indignation in Donald Trump, leading him to apply new tariffs reaching up to 50% on certain items.

However, last Friday, the White House announced a modification to the list of Canadian products subject to the 50% tariffs. This change was made in response to a request from Republican Senator Susan Collins of Maine, who is in a technical dispute with her Democratic opponent in that region.

Additionally, an American company focused on food imports filed a complaint the Tuesday before against these surcharges, classifying them as an 'abuse of power causing immediate harm to American businesses, suppliers, and customers.'

Canadian Prime Minister Mark Carney and Ontario Premier Doug Ford jointly announced on Wednesday a strategic support package for industries valued at $8.7 billion Canadian dollars (equivalent to approximately $6.18 billion USD). This package is designed to protect workers and businesses from existing US tariffs and stimulate long-term economic growth.

The joint federal and provincial plan focuses on securing Ontario's sectors, including the steel industry, automotive manufacturing, and critical mineral extraction. Key investment areas include establishing a joint action fund for steel, modernizing the automotive sector for the production of future electric and connected vehicles, and strengthening the supply chain for critical minerals in northern Ontario through new road construction and streamlined approval procedures.

Mark Carney stated: 'From the mine to the factory and assembly line, Canada and Ontario are protecting jobs today and making bold investments that will build a stronger, more resilient, and independent economy for Canada tomorrow.'

As Ontario is Canada's industrial hub, hosting global automotive and steel industries oriented towards cross-border trade, these sectors are most vulnerable to US tariffs. This new strategy builds upon existing federal assistance programs that have already directed over $25 billion Canadian dollars to Canadian workers and businesses facing US tariffs.