NAFTA

NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

NAFTA

The NAFTA seeks to liberalize trade between the U.S., Mexico and Canada and abolish tariffs and other trade barriers. The Agreement opens up the three countries’ markets by ensuring that future laws will not create barriers to doing business.

 In order for trade to expand, individuals must have access to each other’s country to sell, provide goods or services or trade and invest. Chapter 16 of the NAFTA, entitled “Temporary Entry for Business Persons”, provides the mechanisms to allow selected categories of temporary workers access to each other’s market(s).

 Business people can enter and work in Canada if they qualify under one of these agreements:

 North American Free Trade Agreement (NAFTA)
Other Free Trade Agreements (FTAs)
General Agreement on Trade in Services (GATS)

North American Free Trade Agreement (NAFTA)
NAFTA lets citizens of Canada, the United States and Mexico gain quick entry into each other’s countries for temporary business or investment reasons.

These people do not need a Labour Market Impact Assessment (LMIA). This means that Canadian employers do not need to have a job offer approved by Employment and Social Development Canada to hire an American or a Mexican business person.
Under NAFTA, business people must meet the general rules for temporary entry to Canada.

There are four groups of business people under NAFTA:

  • business visitors
  • professionals
  • intra-company transferees
  • traders and investors

 Business visitors
A business visitor is someone who comes to Canada to take part in international business activities without being part of the Canadian labour market. Business visitors usually stay in Canada for a few days or a few weeks but are able to stay for up to six months. Business visitors do not need a work permit.

The following requirements apply:

  • 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

Professionals
To work in Canada as a professional, you must:

  • be qualified to work in one of the jobs set out in NAFTA (for example, accountant, computer systems analyst or engineer),
  • have a job offer from a Canadian business in that field and
  • have a work permit.

The following requirements apply:

  • citizenship of the U.S. or Mexico;
  • profession identified in Appendix 1603.D.1;
  • qualification to work in that profession (degree or certification in a related educational program);
  • pre-arranged employment with a Canadian employer;
  • provision of professional level services in the field of qualification as indicated in the Appendix; and
  • compliance with existing immigration requirements for temporary entry.

Intra-company transferee

This is a person who is sent to work for the same company in a different country. If this is your case, you must:

  • have worked
  • on an ongoing basis,
  • for at least one year in the last three years,
  • for the same or a related employer in the United States or Mexico,
  • be transferred to Canada to work short term for the same or a related employer,
  • work as a manager, as an executive or in a job that uses specialized knowledge, and
  • have a work permit.

The following requirements apply:

  • citizenship of the U.S. or Mexico;
  • seeking employment in an executive or managerial capacity or one involving “specialized knowledge”;
  • transferring to an enterprise that has a qualifying relationship with the enterprise in which he or she is currently employed;
  • enterprises in the U.S. or Mexico and in Canada have a parent, branch, subsidiary or affiliate relationship;
  • 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
  • compliance with existing immigration requirements for temporary entry.

The temporary entry provisions of the NAFTA are to be used in addition to the general entry provisions governing temporary foreign workers.

 Traders and investors

To work in Canada as a trader or investor, you must:

  • be involved in planning, as a supervisor or executive, or in a role that involves essential skills,
  • a large amount of trade in goods or services, mainly between Canada and your home country, or
  • a large investment in Canada by you or your company,
  • meet any other rules of NAFTA and
  • have a work permit.

The following requirements apply to traders:
pplicant 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;
position is supervisory or executive, or involves essential skills; and
compliance with existing immigration requirements for temporary entry.

 The following requirements apply to investors:

  • applicant has American or Mexican citizenship;
  • enterprise has American or Mexican nationality;
  • substantial investment has been made, or is actively being made;
  • applicant is seeking entry solely to develop and direct the enterprise;
  • if the applicant is an employee, position is executive or supervisory or involves essential skills; and
  • compliance with existing immigration measures applicable to temporary entry.

Other Free Trade Agreements

Other free trade agreements (FTAs), such as:

the Canada-Chile FTA, 
the Canada-Peru FTA,
the Canada-Colombia FTA, and
the Canada-Korea FTA

The rules are similar to those under NAFTA and cover business people such as:

business visitors,
professionals,
intra-company transferees and
traders and investors.

Work permits are generally required, but exempt from a Labour Market Impact Assessment (LMIA).

 Persons authorized to enter Canada under the North American Free Trade Agreement (NAFTA) or other FTAs parallel to the NAFTA, are authorized to enter under exemption codes T21 for Traders, T22 for Investors, T23 for Professionals and T24 for intra-company transferees.

 General Agreement on Trade in Services (GATS)
Under GATS, Canada agreed to make it easier for foreign business people to access the Canadian services market. This applies to service providers from more than 140 World Trade Organization member countries.

Three groups of business people are covered:

  • business visitors,
  • professionals and
  • intra-company transferees.

Qualified business people can enter Canada more easily because they do not need an LMIA from the Government of Canada or, in the case of business visitors, a work permit.

Persons authorized to enter under the General Agreement on Trade in Services (GATS) are authorized to enter under exemption codes T33 for Professionals. GATS intra-company transferees are authorized to enter under the general provision R205, C12

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