smon
Jan 20, 2026

Canada and UAE Sign $115 Billion Deal, Bypassing Trump's America in New Global Order

Canada Signs $115 Billion Deal with UAE, Sidestepping Trump’s America in a New Global Order

Ottawa and Abu Dhabi Forge a Strategic Axis as Washington Watches from the Sidelines

OTTAWA — In a stunning geopolitical shift, Canada has joined forces with the United Arab Emirates on a sweeping $115 billion agreement spanning energy, infrastructure, technology, and finance — forming a new strategic axis that pointedly excludes Washington.

The move, announced jointly by Prime Minister Mark Carney and UAE President Sheikh Mohamed bin Zayed Al Nahyan, has reportedly sent shockwaves through U.S. leadership. For a country that has long viewed itself as the indispensable hub of Western alliances, being bypassed by two trusted partners marks an uncomfortable turning point.

“Canada chooses stability, speed, and certainty — not chaos,” a senior Canadian official told reporters on condition of anonymity, in what was widely interpreted as a direct jab at the Trump administration’s foreign policy unpredictability.

The agreement is vast in scope. It includes Canadian liquefied natural gas exports to the UAE, Emirati investment in Canadian critical mineral mines, joint research into artificial intelligence and quantum computing, and a financial corridor designed to bypass traditional dollar-denominated clearing systems for certain bilateral transactions.

Analysts say the deal goes far beyond its eye-catching price tag. It signals what many are calling a new economic order, where strategically nimble mid-sized powers can outmaneuver traditional superpowers amid political upheaval in Washington.

“This is not just a trade deal,” said Dr. Aisha Al-Mansouri, a political economist at UAE University. “This is a realignment. Canada and the UAE are saying that they no longer need to wait for American approval to reshape global supply chains.”

Sources close to the story say President Trump erupted in fury upon learning of the announcement. According to three people briefed on the White House’s internal response — who spoke on condition of anonymity to describe private conversations — Trump called the deal “a betrayal” and demanded to know why Ottawa had not given Washington a chance to counter-offer.

The White House did not respond to a request for comment. But late Thursday, a senior administration official told Fox News that “any deal that sidelines the United States is a deal we’re going to look at very closely.”

The timing amplifies the significance. The announcement comes just weeks after the Trump administration imposed new tariffs on Canadian steel and aluminum and threatened to revisit the USMCA trade agreement. Ottawa’s message appears calibrated: Canada has other options.

While Washington scrambles to react, Canada is being cast as a critical gateway for Middle Eastern capital. The UAE, long a financial powerhouse, has been seeking to diversify its investment partners beyond traditional ties to Washington and London. Canada’s stable regulatory environment, abundant natural resources, and access to both European and Asian markets make it an attractive alternative.

“The center of global capital and influence is tilting away from America and toward the north,” said Rahim Jaffer, a former Canadian MP who now advises Middle Eastern investors. “That sounds dramatic, but the numbers don’t lie. This deal is real. And more are coming.”