Prime Minister Mark Carney is set to finalize a formal investment agreement with the United Arab Emirates during his upcoming visit, as revealed by a senior government official speaking to CBC News. The agreement, known as the foreign investment promotion and protection agreement (FIPA), will establish guidelines for mutual investments between Canada and the U.A.E., including mechanisms for resolving disputes. Such agreements are crucial for fostering a stable investment environment, especially in times of uncertainty.
In addition to the FIPA, Canada is expected to announce the commencement of discussions for a fast-tracked free trade agreement with the U.A.E., focusing on sectors such as artificial intelligence, aerospace, and labor mobility. This move is seen as a strategic step towards enhancing global trade relations amid increasing anti-globalization sentiments.
During his visit, Carney will meet U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan to enhance economic collaborations in key sectors like energy, agriculture, infrastructure, and AI. The visit comes as part of Carney’s efforts to attract substantial foreign investments to Canada and diversify trade partnerships following strained relations with the U.S. due to trade disputes.
Despite concerns raised by human rights experts regarding the U.A.E.’s alleged support for paramilitary forces involved in atrocities in Sudan, Canada aims to engage with the U.A.E. to address such issues while promoting trade relations. The Prime Minister’s Office emphasized Canada’s commitment to working with international partners to address violence in Sudan and provided humanitarian aid to support affected populations.
While some advocate for including conditions in the FIPA to address human rights concerns, the senior government official highlighted the necessity of engaging with diverse trade partners despite differing viewpoints. The evolving global landscape calls for a pragmatic approach, as Carney seeks to recalibrate Canada’s relationships with various countries, including India, China, and the U.A.E., to advance economic interests while upholding Canadian values.
As Carney navigates these diplomatic efforts, there is an expectation for tangible outcomes from these engagements in terms of promoting Canadian principles and achieving concrete results in business and political dialogues worldwide. The ongoing discussions underscore the importance of balancing economic interests with ethical considerations in Canada’s international trade relations.