CUSMA (Formerly NAFTA) Work Permit Canada

The Canada–United States–Mexico Agreement (CUSMA), formerly known as the North American Free Trade Agreement (NAFTA), creates unique pathways for American and Mexican citizens to work in Canada. By providing various LMIA exemptions and streamlined entry requirements, CUSMA helps facilitate trade and commerce across North America. Below is a detailed overview of CUSMA’s provisions, how they apply to foreign workers, and the steps required to obtain work authorization in Canada.

Overview of CUSMA

Originally established as NAFTA in 1994, this trilateral trade deal united Canada, the United States, and Mexico. On July 1, 2020, NAFTA was superseded by CUSMA (also referred to as USMCA in the United States and T-MEC in Mexico), maintaining largely the same mobility provisions for business travelers and workers moving between these countries.

Key CUSMA Work Categories

CUSMA recognizes five distinct categories that may allow Americans and Mexicans to enter Canada with LMIA exemptions—or, in certain cases, without a work permit:

1. CUSMA Professionals
2. CUSMA Intra-Company Transferees
3. CUSMA Investors
4. CUSMA Traders
5. CUSMA Business Visitors

Important: These provisions apply only to citizens of the three countries. Permanent residents of Canada, the U.S., or Mexico are not eligible for the CUSMA temporary resident benefits.

CUSMA Professionals

CUSMA Professionals can work in Canada without requiring an LMIA, provided they practice one of the eligible professions listed under the agreement. This route is designed to accommodate skilled workers who have a pre-arranged job offer in Canada related to their professional field.

Program Requirements: CUSMA Professionals

To qualify under CUSMA Professionals, applicants must:

• Be a citizen of the United States or Mexico.
• Have a job offer in a role listed under the CUSMA Professional Occupations (see table below).
• Demonstrate qualifications to work in that profession (e.g., relevant degree or certification).
• Provide proof of pre-arranged employment with a Canadian employer.

Application Procedure: CUSMA Professionals

Potential applicants can file for a work permit in any of the following ways:

1. Port of Entry (POE): Present documentation directly at the Canadian border.
2. Visa Office: Submit a work permit application in advance to a Canadian consulate or embassy.
3. Within Canada: If already in Canada as a temporary resident, apply from inside the country.

Applicants must submit:

• Proof of U.S. or Mexican citizenship.
• Documentation of a valid job offer in one of the listed CUSMA professions.
• Credentials verifying expertise (e.g., degree, certifications).

Validity: Work permits under CUSMA Professionals may be issued for up to three years, with extensions of up to three years each. There is no limit to the number of extensions.

CUSMA Intra-Company Transferees

CUSMA Intra-Company Transfers (ICTs) allow American or Mexican employees of a multinational enterprise to transfer to a Canadian branch, affiliate, or subsidiary. These transferees must work in either an executive, managerial, or specialized knowledge capacity.

Program Requirements: CUSMA ICTs

Key eligibility points include:

• Citizenship of the U.S. or Mexico.
• A role in an executive, managerial, or specialized knowledge position.
• At least one year of continuous full-time employment (in the past three years) in a similar position at the foreign enterprise.
• A qualifying relationship between the Canadian entity and the foreign entity (parent, branch, subsidiary, or affiliate).

Application Procedure: CUSMA ICTs

Similar to professionals, applicants can apply at:

1. Port of Entry (POE)
2. Visa Office
3. Within Canada (if they already hold temporary resident status)

Applicants must submit proof of:

• Citizenship (U.S. or Mexican).
• Continuous employment in a similar role for at least one year.
• The executive, managerial, or specialized knowledge nature of the new position in Canada.
• The enterprise relationship between the Canadian and American/Mexican entities.

Validity: Initial work permits for ICTs may last up to three years, extendable by two-year increments.

CUSMA Investors

CUSMA’s Investor category enables some American or Mexican entrepreneurs who have made (or plan to make) substantial capital investments in Canada to work without an LMIA. The investor or their enterprise must be of American or Mexican nationality, with “nationality” determined by ownership rather than place of incorporation.

Program Requirements: CUSMA Investors

To be eligible, applicants must:

• Be a citizen of the U.S. or Mexico.
• Have made (or be making) a significant investment of capital in Canada.
• Own an enterprise of American or Mexican nationality, indicating majority ownership by U.S. or Mexican citizens.
• Fill an executive, supervisory, or essential skills position related to the investment.

Application Procedure: NAFTA Investors

Although it’s possible to apply at a Port of Entry, the government recommends investors apply through a Canadian visa office due to the complexity of these applications. Required documents generally include:

• Proof of U.S. or Mexican citizenship.
• Evidence of the enterprise’s American or Mexican nationality.
• Financial documentation showing the substantial investment in Canada.

Validity: Work permits for CUSMA investors are typically valid for one year, with possible two-year extensions.

CUSMA Traders

The Trader category is designed for enterprises predominantly engaged in the substantial trade of goods or services between the United States or Mexico and Canada. Traders seeking LMIA exemptions must demonstrate that most of their international trade is with Canada.

Program Requirements: CUSMA Traders

Applicants must:

• Hold U.S. or Mexican citizenship.
• Show the enterprise has American or Mexican nationality.
• Demonstrate the trade of goods or services with Canada is substantial and accounts for the principal share of the enterprise’s international trade.
• Fill an executive, supervisory, or essential skills position tied to those trading activities.

Application Procedure: NAFTA Traders

Like investors, it’s recommended to submit the application in advance to a Canadian visa office. The applicant must produce:

• Proof of citizenship (U.S. or Mexican).
• Evidence of the enterprise’s nationality (majority American or Mexican ownership).
• Documentation showing substantial trade in goods or services with Canada.

Validity: CUSMA trader work permits can be valid for one year initially, with possible two-year extensions.

CUSMA Business Visitors

Some businesspeople may enter Canada without a work permit (and without an LMIA) if their activities do not involve direct entry into the Canadian labor market. These activities must be international in scope, with the individual’s primary source of remuneration outside of Canada.

Program Requirements: CUSMA Business Visitors

To qualify as a CUSMA business visitor:

• You must be a U.S. or Mexican citizen.
• Your business activities should be international, meaning your main source of remuneration and place of business remains outside Canada.
• You must have no intent to enter the Canadian labor market directly.

Application Procedure: CUSMA Business Visitors

Business visitors cannot apply in advance; they must present themselves at a Canadian Port of Entry. The required documents typically include:

• Proof of U.S. or Mexican citizenship.
• Evidence that business activity is international and not part of the Canadian labor market (e.g., letter from employer, proof of ongoing salary from outside Canada).

Validity: Admittance under this category is usually short-term, though extensions may be considered in exceptional cases.

CUSMA Professionals Occupation List

Below is the official CUSMA List of Professional Occupations, including minimum education requirements (or equivalent experience). If you fall under one of these occupations and meet the criteria, you may qualify as a CUSMA Professional.

(Table truncated for brevity. The full list includes medical/allied professionals, scientists, and teacher categories. All maintain similar degree/license requirements.)

CUSMA Definitions of Terms

Executive Capacity

A position with executive capacity typically:

1. Directs the management of the organization or a major function.
2. Sets goals and policies for the organization, component, or function.
3. Holds wide discretionary decision-making authority.
4. Receives only general guidance from higher-level management or stakeholders.

Managerial Capacity

A managerial capacity means a position that:

1. Manages an organization, department, or function.
2. Oversees and controls the work of supervisors, professionals, or managers—OR manages an essential function.
3. Holds authority over personnel actions (hiring, firing, promotions).
4. Exercises significant discretion over day-to-day operations in the area of responsibility.

Specialized Knowledge

Specialized knowledge involves both proprietary and advanced expertise:

• Proprietary Knowledge: Company-specific expertise that is not publicly available or easily replicated by competitors.
• Advanced Expertise: Significant and recent experience (within the last five years) that substantially contributes to the employer’s productivity.

Essential Skills

Essential skills refer to advanced, specialized competencies crucial to the enterprise’s functioning, typically beyond what an average skilled worker possesses.

Supervisory Capacity

A supervisory role oversees and directs subordinate employees. A first-line supervisor (one who engages in substantial hands-on work) generally does not qualify unless they primarily direct or manage other employees.

Conclusion

CUSMA (formerly NAFTA) continues to offer Americans and Mexicans unique avenues to work in Canada without the need for a Labour Market Impact Assessment (LMIA). Whether you’re a professional, investor, trader, intra-company transferee, or business visitor, the agreement streamlines entry and reduces bureaucratic hurdles. Ensuring you meet eligibility requirements—like having a valid job offer, maintaining executive or specialized knowledge roles, or demonstrating significant investment—can open up exciting possibilities for working and collaborating across North America.

If you believe you qualify under any of these categories, make sure you gather all necessary documentation and follow the recommended application route. With thorough preparation and the right approach, CUSMA can facilitate a seamless transition into Canada’s labor market for both individuals and businesses alike.