UNITED STATES–MEXICO–CANADA AGREEMENT (USCMA)

This agreement came into force on July 1, 2020, replacing what it was known as NAFTA. Although the agreement did change in many aspects the labour part remains mostly the same.

Under Chapter 16 of USCMA, the citizens of Canada, the United States, and Mexico have facilities to enter any of the three countries to carry out business activities or investments. The same regulations apply to the citizens of the three countries. Eligible workers do not need to apply for LMIA.

USCMA applies to five specific categories:

1. Professionals

In order to be eligible, you have to be part of the list of occupations shown below and you must also comply with the following eligibility requirements:

• Must be a citizen of the U.S. or Mexico.

• Must be in a profession identified in the list above.

• Must have a qualification to work in that profession (degree or certification in a related educational program).

• Must have a job offer with the specifications required according to your profession. This offer must be made by a Canadian employer.

2. Investors

To be eligible as an investor under USCMA the investor should be able to demonstrate that they have made a substantial investment in a new or existing Canadian business, this also means they will be the ones developing and directing the Canadian business.

They should also have a controlling stake in the company. For this specific category, a lot of factors are taken into consideration, such as their title, their position within the company’s, their job duties, it is important to know that the business will be able to comply with what it is required as well.

Eligibility requirements as an Investor:

• The investor must have either U.S. or Mexican citizenship.

• The company must have U.S. or Mexican citizenship nationality (a majority of the company must be owned by persons of U.S. or Mexican citizenship).

• Substantial investment must have already been made, or is actively being made, in Canada. In order for the investment to be considered “substantial”, it must be weighed against the total value of the business, or the amount normally required in establishing a venture of that nature.

• The investor is seeking entry into Canada for the sole reason of developing and directing the business.

• If the investor is also an employee of the company, his or her role must be executive or supervisory or involve essential skills.

This category requires thorough revision to make sure that the business in place will be able to meet the requirements as well as the investor itself. We suggest you Contact us for an assessment if you are planning to apply under this category.

3. Traders

The following requirements apply:

• the applicant has American or Mexican citizenship;

• the employing enterprise has American or Mexican nationality;

• activities involve substantial trade in goods or services;

• trade is principally between either the U.S. or Mexico and Canada;

• the position is supervisory or executive, or involves essential skills; and

• compliance with existing immigration requirements for temporary entry.

This category is meant for an applicant who is seeking temporary entry to carry on substantial trade in goods or services principally between Canada and the U.S. or Mexico.

Understand that trade means the exchange, purchase, or sale of goods and/or services. Goods are tangible commodities or merchandise having intrinsic value, excluding money, securities, and negotiable instruments. Services are economic activities whose outputs are other than tangible goods. Such activities include, but are not limited to international banking, insurance, transportation, communications and data processing, advertising, accounting, design and engineering, management consulting and tourism. 

4. Intra-Company Transferees

Work permits issued under this category may be issued for up to three years. Although if you are to open an office or to be employed in a new office your work permit may be issued for a maximum period of one year.

The following requirements apply for this category:

• you must be a citizen of the U.S. or Mexico;

• yous should be seeking employment in an executive or managerial capacity or one involving “specialized knowledge. These are the three types of positions you may have.

• you should be transferred to an enterprise that has a qualifying relationship with the enterprise in which he or she is currently employed;

• The enterprises in the U.S. or Mexico and in Canada have a parent, branch, subsidiary or affiliate relationship;

• You will be asked to prove you had continuous employment, in a similar position outside Canada, for at least one year (full-time) in the previous three-year period from the date of initial application; and

• you must comply with existing immigration requirements for temporary entry.

An intra-company transferee must present:

• proof of American or Mexican citizenship;

• confirmation that the foreign national is currently employed by the enterprise outside of Canada;

• confirmation that the person has been employed continuously outside of Canada by the enterprise for one year (full-time) within the three-year period immediately preceding the initial date of application

• outline of the applicant’s current position in an executive, or managerial capacity or one involving specialized knowledge, i.e., position, title, place in the organization, job description;

• in the case of “specialized knowledge”, evidence that the person has such knowledge and that the position in Canada requires such knowledge;

• outline of the position in Canada, i.e., position, title, place in the organization, job description;

• indication of intended duration of stay; and

• description of the relationship between the enterprise in Canada and the enterprise in the U.S. or Mexico.

Officers may request tangible proof to establish the relationship between the Canadian and American or Mexican organizations.

5. Business Visitors

The following requirements apply under this category:

• citizenship of the U.S. or Mexico;

• business activities as described in Appendix 1603.A.1;

• activities are international in scope;

• no intent to enter the Canadian labour market;

• the primary source of remuneration remains outside Canada;

• the principal place of business remains outside Canada; and

• compliance with existing immigration/admissibility requirements for temporary entry.

Business activities covered by Appendix 1603.A.1 are activities of a commercial nature which reflect the components of a business cycle:

• research and design;

• growth, manufacture and production;

• marketing;

• sales;

• distribution;

• after-sales service; and

• general service.

Whether you are an Employer or a Foreign Worker we highly recommend that you Contact us to better assess your case and be able to provide you with the proper advice depending on your options.