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Canada United States Mexico Agreement (CUSMA)

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Canada United States Mexico Agreement (CUSMA)

The CUSMA 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 CUSMA, entitled “Temporary Entry for Business Persons”, provides the mechanisms to allow selected categories of temporary workers access to each other’s market(s).

An American or Mexican business person seeking entry to Canada is eligible for consideration under the provisions of the CUSMA, as well as the general provisions which apply to all foreign workers.

What CUSMA does

  • 1. CUSMA facilitates temporary entry for business persons who are citizens of the U.S., Mexico and Canada and who are involved in the trade of goods or services, or in investment activities.
  • 2. CUSMA removes any need for a Labour Market Impact Assessment (LMIA) for all business persons covered by the Agreement.
  • 3. In the case of a business visitor, it ensures that there is no requirement for a work permit.

  • 4. For professionals that are TRV exempt it expedites the application process by ensuring an application can be made at the port of entry (POE). Foreign nationals that require a temporary resident visa to enter Canada are still required to apply at a visa office prior to coming to Canada.

Categories of Business Persons included under the CUSMA

Business persons included in Chapter 16 of the CUSMA are grouped under four categories:

  • 1. Business Visitors;
  • 2. Professionals;
  • 3. Intra-Company Transferees;
  • 4. Traders & Investors.

  • 1. Business visitors engage in international business activities related to research and design; growth, manufacture and production; marketing; sales; distribution; after-sales service; and general service. These activities reflect the components of a business cycle (see Appendix 1, Section B of CUSMA).

    Business visitors are authorized to enter Canada for business purposes under R186(a) and can carry out their activities without the need for a work permit.

  • 2. Professionals are business persons who enter to provide pre-arranged professional services— either as a salaried employee of a Canadian enterprise, through a contract between the business person and a Canadian employer, or through a contract between the American or Mexican employer of the business person and a Canadian enterprise. Appendix 2 of CUSMA lists 63 occupations covered by the Agreement. Professionals enter to provide services in the field for which they are qualified.

    Professionals are not subject to an LMIA but require a work permit (R204, T23).

  • 3. Intra-company transferees are employed by an American or Mexican enterprise in a managerial or executive capacity, or in one which involves specialized knowledge, and are being transferred to the Canadian enterprise, parent, branch, subsidiary, or affiliate, to provide services in the same capacity.

    Intra-company transferees are exempt from the LMIA process but require a work permit (R204, T24).

  • 4. Traders and investors carry on substantial trade in goods or services between the U.S. or Mexico and Canada or have committed, or are in the process of committing, a substantial amount of capital in Canada. Traders and investors must be employed in a supervisory or executive capacity or one that involves essential skills.

    Traders and investors are not subject to the LMIA process but require a work permit (R204, exemption codes T21 and T22, respectively) for which they must apply at a visa office before departing for Canada.

    • Admission Decisions

    In assessing applications by citizens of the U.S. or Mexico, all admissibility considerations under the IRPA and eligibility under the CUSMA for temporary entry should be considered. An American or Mexican citizen who is not eligible for entry under the CUSMA may qualify under the general provisions governing temporary workers.

    When making decisions on admissibility, officers should consider the overall objectives of the CUSMA that seek to facilitate trade between Canada, the U.S. and Mexico.

    CUSMA definitions and interpretations

    • 1. Business person means a citizen of a Party (a “Party” means the U.S., Mexico or Canada) who is engaged in trade in goods, the provision of services or the conduct of investment activities;
    • 2. Enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or owned by government, including any corporation, trust, partnership, sole proprietorship, joint venture or other association;
    • 3. Enterprise of a Party means an enterprise constituted or organized under the law of a Party;
    • 4. Measure includes any law, regulation, procedure, requirement or practice.


    Like many temporary workers, temporary workers authorized to enter Canada under the CUSMA are allowed to work temporarily either in a temporary or permanent position. The CUSMA cannot be used, however, as a means to remain in Canada indefinitely.