How to Obtain a CUSMA Trader’s Work Permit in Canada

Author: Al Parsai LL.M., RCIC-IRB

Last Updated on: August 9, 2024

Jamal, 46, is an Atlanta-based entrepreneur who has built a successful business empire in the U.S. He now dreams of expanding his business into the Canadian market. Eager to trade services and goods across borders, he wonders if Canada offers a straightforward path as a CUSMA Trader. With his mind set on success, Jamal begins exploring how to secure the right work permit to make his ambitions a reality. Understanding the process is crucial so he can take the next step.

What is CUSMA?

The Canada-United States-Mexico Agreement (CUSMA) is a trade agreement that replaced NAFTA in 2020. Known as USMCA in the United States and T-MEC in Mexico, it strengthens economic ties among the three nations. CUSMA builds on NAFTA’s foundation but introduces modernized provisions to address today’s economic realities. It facilitates trade, encourages investment, and enhances cooperation across borders. CUSMA also plays a crucial role in labour mobility, especially for business professionals.

CUSMA makes it easier for business people to move between Canada, the U.S., and Mexico. It provides traders, investors, and professionals with specific pathways to work in these countries without cumbersome visa processes. This aspect of CUSMA fosters greater collaboration and economic integration by reducing barriers to cross-border employment. CUSMA contributes significantly to the region’s economic growth and stability by promoting the free movement of skilled workers and entrepreneurs. This agreement ensures businesses can operate seamlessly across North America, benefiting all three countries.

Categories of Business Persons Under CUSMA

CUSMA recognizes various business persons who can enter Canada under specific provisions. These individuals fall into four main categories, each with criteria and requirements.

Business Visitors

Business visitors engage in international business activities such as research, marketing, sales, and after-sales service. They participate in activities that are part of the business cycle but do not enter the Canadian labour market. Under certain conditions, business visitors can enter Canada without a work permit, making it temporarily easier to conduct business activities.

Professionals

Professionals are individuals who come to Canada to provide pre-arranged professional services. These services may be offered as a salaried employee of a Canadian enterprise, through a contract with a Canadian employer, or through a contract between their American or Mexican employer and a Canadian enterprise. Professionals require a work permit but are exempt from the Labour Market Impact Assessment (LMIA) process. CUSMA covers 63 occupations under this category, ensuring qualified professionals can work in Canada with fewer barriers.

Intra-Company Transferees

Intra-company transferees are employees of American or Mexican enterprises who are transferred to a Canadian branch, subsidiary, or affiliate. They must be employed in a managerial, executive, or specialized knowledge capacity. This category facilitates the transfer of key personnel within multinational companies. Intra-company transferees require a work permit but are exempt from the LMIA process, allowing smoother transitions between international offices.

Traders

Traders under CUSMA engage in substantial goods or services trade between Canada and the U.S. or Mexico. These individuals must hold positions in supervisory, executive, or essential skills roles. Traders must obtain a work permit to operate in Canada but are exempt from the LMIA process. Before arriving in Canada, they must apply for this permit to conduct their trading activities legally.

Investors

Investors are businesspeople who have committed or are in the process of committing a substantial amount of capital to a Canadian business. They must be employed in supervisory, executive, or essential roles related to their investment. Like traders, investors require a work permit but are exempt from the LMIA process. They must apply for their permit before entering Canada, facilitating their ability to manage and direct their investments.

Eligibility Requirements for CUSMA Traders

To qualify as a CUSMA Trader, applicants must meet specific eligibility criteria. Firstly, the applicant must hold citizenship in the United States or Mexico. The employing enterprise must also have American or Mexican nationality. Importantly, nationality refers to ownership, not the place of incorporation.

The trade conducted must involve substantial goods or services. Over 50 percent of the trade must occur between Canada and the U.S. or Mexico. Applicants must actively engage in international trade and cannot qualify by merely searching for trading opportunities.

Additionally, the applicant must hold a supervisory or executive position, or their role must involve essential skills. The applicant’s duties in Canada should focus on these responsibilities rather than routine tasks. Supervisory or executive roles require significant authority over business operations, reflecting a high level of control and responsibility.

Finally, the applicant must comply with Canada’s existing immigration requirements for temporary entry. They must demonstrate a temporary intent to stay in Canada and plan to return to their home country when their trader status ends.

Work Permit Application and Extension for CUSMA Traders

Understanding the process and requirements when applying for a work permit as a CUSMA Trader is crucial. Below, we discuss where to apply, the essential documents needed, and the duration of the initial and subsequent work permits.

Where to Apply?

CUSMA Traders should ideally submit their work permit application online. While U.S. and Mexican citizens may apply at a Port of Entry (POE), the complexity of the application makes it advisable to apply online and preferably before entering Canada. However, those already in Canada with temporary resident status may apply for trader status from within the country. This ensures consistency and reciprocity in the application process.

The Essential Documents

To apply, applicants must complete the Application for Trader/Investor Status (IMM 5321) alongside the work permit application. They must also provide proof of their American or Mexican citizenship and the employing enterprise’s nationality. If applicable, a letter from a corporate secretary or lawyer can verify ownership and nationality. Applicants should also submit documents proving substantial trade and their specific role in the enterprise.

Duration of the Initial and Subsequent Work Permit

The initial work permit for CUSMA Traders is issued for a maximum of one year. Extensions can be granted at two-year intervals, provided all eligibility requirements remain met. Applicants must also express a clear intent to return to their home country when their trader status ends. This temporary intent is crucial for securing extensions and compliance with Canadian immigration regulations.

Expertise in Assisting American and Mexican Clients

I have extensive experience helping American and Mexican clients apply for work permits in Canada. I understand the complexities of the CUSMA work permit process and can guide you through every step. From determining eligibility to gathering essential documents, I ensure your application is accurate and timely. My goal is to make your transition to Canada as smooth as possible.

Don’t hesitate to contact us if you’re considering applying for a CUSMA Trader or other types of work permit. Book a consultation session today, and let’s work together to achieve your business goals in Canada. Alternatively, fill out the following form to contact our team.

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Al ParsaiAl Parsai, LLM, MA, RCIC-IRB
Regulated Canadian Immigration Consultant
Adjunct Professor – Queen’s University – Faculty of Law
Ashton College Instructor – Immigration Consulting
Author – 88 Tips on Immigration to Canada

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