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CUSMA is a trade agreement that supports the free flow of goods, services, and labor between Canada, the U.S., and Mexico. For professionals and businesses, CUSMA provides a framework to tap into new markets, share expertise, and foster innovation. It simplifies the immigration and work permit processes by allowing qualified individuals to work in Canada without a Labour Market Impact Assessment (LMIA). This is helpful, because the LMIA can be a significant barrier in many other circumstances.
“The Canada-United States-Mexico Agreement (CUSMA) is a high-standard, high-ambition agreement that promotes the integration of Canadian SMEs into regional and global supply chains, while advancing the rights of our workers and our environmental priorities.”
The Canada-United States-Mexico Agreement (CUSMA) is a trilateral trade agreement that replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020. CUSMA helps boost trade and cooperation between Canada, the US, and Mexico. It makes it easier for businesses and workers to move between these countries. For workers in the US and Mexico, CUSMA offers a streamlined pathway to a work permit in Canada.
The CUSMA provisions allow qualified individuals to work in Canada without needing an LMIA, which is typically required to ensure that hiring foreign workers won’t negatively impact the Canadian labor market. This makes CUSMA an attractive option for businesses and skilled workers alike, since getting an LMIA can be a complicated process and it does require employers to pay a fee.
CUSMA helps many different people and businesses, including:
Though known by different names—CUSMA in Canada, USMCA in the U.S., and T-MEC in Mexico—the agreement is essentially the same. The differences lie in the naming conventions used by each country:
Even though the names are different, the rules and benefits are the same across all three countries.
In most cases, Canadian employers need to get an LMIA before they can hire a foreign worker. The LMIA process ensures that no Canadian is available to do the job. However, it can be long and complex.
The CUSMA helps by letting US and Mexican citizens skip this step for many jobs. This means they can apply for a work permit without waiting for the LMIA. This makes it faster and easier for both employers and workers to get started.
To come to Canada under the CUSMA, you need to be a covered business person. There are four categories that are covered, business visitors, professionals, intra-company transferees, and traders and investors.
Business visitors are workers who are coming to Canada for business activities but who aren’t entering the workforce, for example, conference attendees or procurement meetings.
If you are qualified to work in any of the following occupations and you’re a US or Mexican citizen, you may be eligible to come to Canada to work under the CUSMA:
The agreement, as it relates to Intra-Company Transferees and Traders and Investors, is under review. You can find more information and updates about the program on the Immigration, Refugees, and Citizenship Canada website.
Many temporary foreign workers in Canada set down roots in the country. These roots can be economic, social, or familial, or some combination. Fortunately for foreign workers, depending on their situation they may be able to transition to Canadian permanent residence.
A selection of Canada’s economic immigration programs place a value on Canadian work experience. Foreign workers with at least one year of skilled employment in Canada may be eligible under the Canadian Experience Class (CEC), one of the federal programs managed under the Express Entry system. CEC candidates are well-placed to be invited to apply for permanent residence, given that Canadian work experience is rewarded under the Comprehensive Ranking System (CRS).
Foreign workers who may not be eligible for Express Entry, or who struggle to reach the CRS cut-off threshold in Express Entry draws, may have other options under one of the Provincial Nominee Programs (PNPs). Many provinces use their PNP to help foreign workers in the given province transition to permanent residence. In some cases, this may be possible even if the foreign worker has been employed in a non-skilled position.
There may also be an immigration option for foreign workers who have established a relationship with a Canadian citizen or permanent resident, either as a spouse or common-law partner.
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