Learn how CUSMA, formerly known as NAFTA, offers a streamlined pathway for eligible U.S. and Mexican citizens to work or conduct business in Canada.

In the dynamic landscape of international migration, the Canada-United States-Mexico Agreement (CUSMA), formerly known as the North American Free Trade Agreement (NAFTA), offers a streamlined pathway for eligible U.S. and Mexican citizens to work or conduct business in Canada. Enacted in 2020, this trilateral trade agreement has opened up new opportunities for professionals, intra-company transferees, traders, and investors seeking to explore the Canadian market.

CUSMA Professionals

Under the CUSMA Professionals category, eligible U.S. and Mexican citizens can bypass the Labour Market Impact Assessment (LMIA) process and obtain a work permit to work in one of the 63 designated professions in Canada. These professions span a wide range of fields, including medicine, education, science, and more.

To qualify, applicants must have a pre-arranged job offer or a contract in Canada within their field of expertise. They must also provide evidence of their educational credentials and relevant work experience. It’s important to note that this category is not intended for self-employed work in Canada.

CUSMA Professionals can also enter Canada as business visitors, as long as they are not engaging in the Canadian labor market. This allows them to solicit business, provide consulting services, offer advice, and meet with clients without the need for a work permit.

Work permits granted under the CUSMA Professionals category are valid for up to three years and can be extended for an unlimited number of times, provided the applicant continues to meet the requirements. However, immigration officers must be satisfied that the employment remains temporary and that the applicant is not using the CUSMA entry to circumvent normal immigration procedures.

CUSMA Intra-Company Transfers

The CUSMA Intra-Company Transfers category caters to U.S. or Mexican workers who are being transferred to a Canadian branch of their company. To qualify, the applicant must have worked for their U.S. or Mexican employer for at least one of the last three years in a position similar to the one they will be taking in Canada.

The position in Canada must be managerial, executive, or involve specialized knowledge. The transfer must also be temporary in nature, with the applicant remaining employed by the company at the time of the application.

CUSMA Traders

CUSMA Traders must be coming to Canada to engage in a substantial trade of goods or services between Canada and the U.S. or Mexico. Canada considers a trade to be “substantial” when more than 50% of the trade is conducted between Canada and one of the other CUSMA countries, either in terms of volume or value.

CUSMA Investors

The CUSMA Investors category is designed for individuals who are making a substantial investment in a new or existing Canadian business and are coming to Canada to develop and direct the business. Work permits may also be granted to the essential staff of the company.

Frequently Asked Questions

What are the key differences between CUSMA and the previous NAFTA agreement?

The key differences between CUSMA and NAFTA include:
CUSMA introduced a new category for CUSMA Investors, which was not present in NAFTA.
The list of eligible professions for CUSMA Professionals has been updated, with some professions added or removed.
The requirement for CUSMA Intra-Company Transfers to have worked for their employer for at least one of the last three years has been introduced, which was not a requirement under NAFTA.

Can CUSMA Professionals engage in self-employed work in Canada?

No, the CUSMA Professionals category is not intended for self-employed work in Canada. Applicants must have a pre-arranged job offer or a contract in one of the eligible professions.

How long are CUSMA work permits valid, and can they be extended?

CUSMA work permits are typically valid for up to three years. They can then be extended for up to three years for an unlimited number of times, provided the applicant continues to meet the requirements. However, immigration officers must be satisfied that the employment remains temporary and that the applicant is not using the CUSMA entry to circumvent normal immigration procedures.

Do CUSMA applicants need to go through the LMIA process?

No, CUSMA applicants are exempt from the Labour Market Impact Assessment (LMIA) process. This allows them to bypass this hurdle and streamlines the process of coming to work or engage in business activities in Canada.

Can CUSMA Traders engage in any type of trade between Canada, the U.S., and Mexico?

No, CUSMA Traders must be coming to Canada to carry out a substantial trade of goods or services between Canada and the U.S. or Mexico. Canada considers a trade to be “substantial” when more than 50% of the trade is conducted between Canada and one of the other CUSMA countries, either in terms of volume or value.

By understanding the nuances of the CUSMA pathways, eligible U.S. and Mexican citizens can navigate the process of working or conducting business in Canada more effectively, even in the face of the ongoing COVID-19 pandemic. This comprehensive overview aims to provide a clear and detailed guide to the various CUSMA categories, their requirements, and the current challenges posed by travel restrictions.