Canada & UAE: Strengthening Ties for Socio-Economic Development - Essay Sample

Introduction

Canada and the United Arab Emirates have a deep and extensive relationship that is focused primarily on building prosperity for both economies to achieve socio-economic development for both participants. Both countries have strong economies that would become stronger should further partnerships be formed. Moreover, the social ties between the two partners would improve, resulting in deeper ties between the citizens within these two regions.

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Comparative Advantages of Canada and UAE and Sectors to take Advantage of

Canada is a high-tech industrial society that ranges in the trillion-dollar economy class that has demonstrated impressive growth in the mining, manufacturing as well as the service sectors. Furthermore, agreements such as the US-Canada Free Trade Agreement, the North American Free Trade Agreement (NAFTA), among other trade integrations have resulted in increased trade between Canada and its partners. Also, the strong sense of capitalization, coupled with the tremendous natural resources, modern capital plant, and highly skilled labor force, Canada has continued to enjoy steady economic growth. The ability of Canada's financial sector to emerge as the strongest from the 2008-2009 financial crisis can be attributed to the sector's secure capitalization practices (Nation Master, 2020). Therefore, if UAE was to invest in Canada, they should consider the private sector under the modern capital plants as well as the skilled labor force as they would enjoy continuous growth in their investment shares. Furthermore, they would be able to import skilled labor for purposes of training and further development of their infrastructure.

Similarly, the UAE has an open economy with a sizeable capita income as well as annual trade extras. Since the discovery of oil in the UAE, the essential transformation has taken place, including economic diversification, to transform the small desert countries into modern societies with high standards of living. Moreover, the additional expenditure of the government on infrastructure and job creation has opened up the UAE to greater involvement of the private sector. In addition, the country's Free Trade Zones that offer complete foreign ownership with no taxes has much attracted foreign investors, which further strengthens the country's trade investments (Nation Master, 2020). UAE largely depends on its export of oil and gas to other countries to obtain the majority of the country's insistence. Therefore, if Canada were to form a partnership with the UAE, the primary sectors to consider or strategize on would be the private sector under foreign investments. This investment would benefit from the free trade zones where Canadian investors would not be charged any tax and would have full ownership of their investments.

Trade Agreements Between UAE and Canada

Negotiations have been put underway between Canada and the United Arab Emirates that aim to foster a positive and productive trade relationship between the two parties. Negotiations such as the Foreign Investment Promotion and Protection Agreement Negotiations initiated in 2008 and concluded in 2014 addresses as well as facilitates higher likelihood and certainty for Canadian investors who are considering investment opportunities in the UAE and vice versa (Global Affairs Canada, 2019). The FIPA will provide both the Canadians as well as the citizens of UAE with more opportunities to invest in either country while at the same time balancing the country's stakeholders.

Labour Issues That Should Be Considered to Help With Trade Between Canada and UAE

The issues related to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement should also be considered as they could result in trade disadvantages for either country. the issues include register and extension for wine and spirit geographical indications (GI), as well as the relationship between the TRIPS Agreement and the Convention on Biological Diversity (Global Affairs Canada, 2013). The blurred lines existing between GI extension and the relationship between the TRIPS agreement may result in the termination of any or all trade agreements between Canada and UAE.

Cultural Relationships Between UAE and Canada

Canada and the UAE are partners in battling international terrorism, violent extremism through Canada's membership on the International Steering Board of the Hedaya Centre, which is based in UAE. Additionally, Canada and the UAE have also committed to signing a defense cooperation Arrangement that would further foster military cooperation between the two countries. All the previous negotiations held between UAE and Canada have been in an attempt to smoothen future trade prospects between the two countries. Both countries have also attempted to make traveling between the two countries easier as well as the creation of incentives that further attracts Canada to UAE and vice versa.

Conclusion

In conclusion, the UAE and the Canadian governments are working on improving trade relations to facilitate prosperous trade between the two partners. Although trade relations between UAE and Canada would be very advantageous, UAE currently also focuses on facilitating efficient transmission of investment signals for cases that need network reinforcement. Engaging the private sector will be beneficial for UAE as it will help the country to achieve national development goals. Therefore, an agreement between Canada and the UAE will be useful in further enticing investors to invest in both economies. An increase in the number of investors will also lead to smooth transactions accompanied by the inflow of skilled workforce for the people. The result will translate to improved standards of living for the average citizen.

References

Global Affairs Canada. (2013, July 30). General Agreement on Trade in Services (GATS). GAC. https://www.international.gc.ca/trade-agreements-accords-commerciaux/wto-omc/gats-agcs/index.aspx?lang=eng

Global Affairs Canada. (2019, December 16). Canada-United Arab Emirates relations. GAC. https://www.international.gc.ca/country-pays/uae-eau/relations.aspx?lang=eng

Nation Master. (2020). Canada vs United Arab Emirates: Economy Facts and Stats. Global Industry Market Sizing - NationMaster. https://www.nationmaster.com/country-info/compare/Canada/United-Arab-Emirates/Economy