Moving to Canada as an American: CUSMA (Formerly NAFTA) Work Permits & LMIA Exemptions

Note: The Canada-United States-Mexico Agreement (CUSMA) replaced the old NAFTA on July 1, 2020. Despite the name change, many of the same work permit pathways and LMIA (Labour Market Impact Assessment) exemptions apply. If you’re an American citizen who wants to work or do business in Canada temporarily, CUSMA can simplify the process.

In this post, we’ll cover:

1. CUSMA Overview – Basic eligibility and categories.
2. Types of CUSMA Work Permits – Professionals, Intra-Company Transferees (ICTs), Traders, and Investors.
3. Business Visitors – A quick mention for short-term activities that don’t require a work permit.
4. Application Steps – Where to apply, required documentation, and extension rules.
5. Tips for Americans – How to prepare effectively and ensure a smooth cross-border transition.
6. FAQs – Common questions about CUSMA, regulated occupations, dual intent, etc.

At Immigration Nation – Immigration Consultant in Edmonton, we specialize in cross-border immigration solutions for Americans. Let’s help you figure out which path best fits your career needs and timeline.

1. CUSMA (Formerly NAFTA) at a Glance

CUSMA (sometimes called USMCA in the U.S.) is an international free trade agreement between Canada, the U.S., and Mexico. While it focuses on goods, services, and trade rules, Chapter 16 specifically deals with temporary entry for certain business persons. Under CUSMA Chapter 16:

• No LMIA Required: Qualifying Americans avoid the labor market test (LMIA).
• Temporary Focus: These are not permanent immigration categories; you’re expected to enter Canada for a limited period.
• Multiple Sub-Categories: CUSMA offers distinct streams for Business Visitors, Professionals, Traders, Investors, and Intra-Company Transferees. Each category has unique criteria.

If your plans are purely short-term or do not involve actually joining the Canadian labor market, you may be a business visitor (no work permit required). But if you’re performing hands-on work, you typically need a CUSMA work permit.

2. Key CUSMA Categories for Americans
3. Business Visitors

Work Permit Needed? No, if you strictly meet R186(a) requirements.

• Allowed Activities: Attending meetings, conferences, conducting site visits, negotiating contracts, or participating in trade shows.
• Prohibited Activities: Selling to the Canadian public or performing “hands-on” labor for a Canadian company.
• After-Sales Service: Some short visits to install or service commercial equipment purchased from a U.S. company can be done under Business Visitor (if no major “hands-on construction” is involved).
  Typical Duration: Up to 6 months per visit. Usually no official visitor record is issued unless the officer decides it’s necessary.

1. Professionals (LMIA Exemption Code: T36)

Who Qualifies?

1. Citizens of the U.S. or Mexico.
2. Working in one of 60+ listed occupations in CUSMA Appendix 2 (e.g., Accountants, Engineers, Computer Systems Analysts, Lawyers, Architects, Management Consultants, etc.).
3. Must have pre-arranged employment with a Canadian employer (full-time or contract) in that same profession.
4. Must meet the minimum education (usually a bachelor’s degree in that field) and licensing where required (especially if it’s a regulated occupation like nursing or teaching).

Duration:

• Initial permit valid for up to 3 years.
• Renewable in increments up to 3 years each time.
• No limit on the number of extensions, but each renewal must show you still meet the same criteria and remain “temporary.”

1. Intra-Company Transferees (ICT)

Who Qualifies?

1. Must be a U.S. citizen currently employed by an American company that has a qualifying relationship (branch, affiliate, subsidiary) in Canada.
2. Must be transferring to a Canadian branch in an executive/managerial (code T37) or specialized knowledge (code T38) position.
3. 1 year of continuous employment in the U.S. entity (in a similar role) within the last 3 years.

Duration:

• Executives/Managers: Max 7 years total (first permit = up to 3 years, can renew in 2-year increments).
• Specialized Knowledge: Max 5 years total (first permit = up to 3 years, renew in 2-year increments).

1. Traders (LMIA Exemption Code: T34)

Who Qualifies?

1. Must be a U.S. citizen employed by a U.S. enterprise with American nationality (i.e., majority ownership by Americans).
2. The purpose of entry is substantial trade in goods or services between the U.S. and Canada. Over 50% of the trade of the entity must be between these 2 countries.
3. The job in Canada must be supervisory, executive, or involving essential skills.

Duration:

• Initial permit: up to 1 year.
• Can usually renew in 2-year increments if the trade arrangement remains valid.

1. Investors (LMIA Exemption Code: T35)

Who Qualifies?

1. U.S. citizen investing or actively in the process of investing substantial capital in a Canadian enterprise.
2. Must develop and direct the enterprise (i.e., have controlling interest, typically >50% if it’s a small operation).
3. The job capacity in Canada must be either executive, supervisory, or essential skills.

Duration:

• Initial permit: up to 1 year.
• Renewable in 2-year increments if the investment enterprise is still active and meets CUSMA requirements.

3. Application Steps and Where to Apply
4. Do You Need a TRV or eTA?

• As a U.S. citizen, you typically do not need a temporary resident visa to enter Canada. Electronic Travel Authorization (eTA) is also not required for U.S. citizens. Just your valid passport.
• Green Card Holders (U.S. permanent residents) do require an eTA before flying to Canada.

1. Decide on Your Category

• Are you a business visitor for short-term activities (no work permit)?
• Are you an employee with a Canadian job offer in a professional role?
• Are you an ICT transferring to a branch office?
• Are you a Trader or Investor with a U.S.-based company?

1. Gather Documents

Varies by category, but typically includes:

• Proof of U.S. citizenship (passport).
• Offer of Employment or contract (for professionals, investors, traders, or ICT).
• CUSMA forms (e.g., Trader/Investor [IMM 5321], or general proof for your category).
• Education or license proof if your occupation is regulated (Professionals especially).
• Proof of enterprise nationality (Traders/Investors).
• Proof of controlling interest or “substantial investment” (Investors).
• Proof of 1-year employment (ICT).

1. Online vs. Port of Entry Application

• Online: In most cases, it’s recommended to submit your work permit application before traveling.
• At a Port of Entry: Because Americans are visa-exempt, you can apply for a CUSMA work permit directly at the Canadian border if you have all your documents in order. However, complex cases (like investors or traders) are usually smoother if you apply online or at a visa office first.

1. Extensions

• Professionals, Traders, Investors, and ICTs can extend from within Canada by applying online.
• Show you still meet the category requirements (active trade, continuing investment, ongoing specialized knowledge, etc.).

4. Tips for Americans Moving under CUSMA

1. Know Your Occupation: If you’re a professional, ensure your job title is exactly on the CUSMA list. For example, “Computer Systems Analyst” is recognized, but “Software QA Tester” might not be.
2. Get Your Documents Ready: Don’t rely solely on an oral explanation at the border. Bring letters from your U.S. company or contracting employer, pay records, any professional licenses needed for regulated jobs in Canada.
3. Consider the Timeframe:
   • Business Visitors can do short stints with no work permit, but you can’t do any “productive work.”
   • ICT folks might get up to 3 years initially, but keep an eye on max durations (5 or 7 years).
4. Check Regulatory Requirements: If you’re a registered nurse, teacher, or other regulated professional, you must show provincial licensure or at least eligibility for it.
5. Prepare for a Secondary Inspection: If you apply at the port of entry, you may be referred for a detailed interview with a border officer. Remain calm, answer consistently, and have documents in a neat folder.
6. Temporary Intent: Under CUSMA, you must show that you don’t intend to stay in Canada permanently (at least not via this route). If you later decide to apply for Canadian permanent residence, that’s a separate process.
7. Combine With Other Immigration Paths: Some Americans come under a CUSMA work permit first, get Canadian work experience, then transition to Express Entry for permanent residence. That’s allowed, but separate steps are required.

5. Frequently Asked Questions (FAQ)

Q1: Do I need to apply online, or can I just show up at the border?

• As a U.S. citizen, you can theoretically apply for your CUSMA work permit at the port of entry. However, if your case is complex (e.g., you’re an investor or trader with extensive documentation), it’s often easier to apply online or at a visa office. That way, you’ll have an official decision before traveling.

Q2: What if I want to live in Canada permanently?

• A CUSMA work permit is temporary. Permanent residence would require going through Express Entry (e.g., Federal Skilled Worker, Canadian Experience Class) or Provincial Nominee Programs. Having a Canadian job can be beneficial for those permanent streams, but you’d do a separate application.

Q3: Is there a formal “LMIA Exemption Code” I need to mention in my application?

• Yes. Each sub-category has a code:
  • Professionals: T36
  • ICT – Managers: T37
  • ICT – Specialized Knowledge: T38
  • Traders: T34
  • Investors: T35

Q4: How much do I need to invest to be an “Investor”?

• There’s no set dollar minimum. It must be “substantial,” typically meaning at least 50% ownership if it’s a smaller business, or enough capital to ensure you’re truly in a controlling role. The investment can’t just be a speculation. You must “develop and direct” the enterprise.

Q5: Can I self-petition as a Professional?

• No. You must have a Canadian employer or a contract with a Canadian client if you’re contracting. Purely setting up your own business in Canada isn’t allowed unless you qualify under Investor or Trader categories—and then you must hold controlling interest from a U.S.-based enterprise.

Q6: What if I’m already in Canada as a visitor and want to switch to a work permit?

• U.S. citizens can sometimes file an in-Canada application if they meet R199 conditions. Or, you might travel to a U.S.-Canada land border to apply. But be sure you have all documents. Immigration Nation can guide you based on your specific scenario.

Q7: Do I need a special credential to prove “specialized knowledge” for ICT?

• There’s no universal credential. You must demonstrate proprietary knowledge of the U.S. company’s product, service, technology, etc., plus an advanced level of expertise beyond ordinary employees. This might include reference letters, job descriptions, performance reviews, or specialized training certificates.

Q8: Can I bring my spouse or kids on a CUSMA permit?

• Dependents do not get special privileges under CUSMA. They can apply for an open work permit or study permit under standard rules. Because you’re in the International Mobility Program, your spouse may qualify for an open spousal work permit, depending on your job skill level (NOC TEER 0, 1, 2, or 3).

Q9: My job in the U.S. is remote. Can I just move to Canada and keep working for my American employer as a business visitor?

• Typically, no. If you’re physically in Canada doing work for your U.S. employer, that can be considered “entering the Canadian labor market.” Unless your activity is strictly short, incidental business visitor tasks, you need a CUSMA or other work permit route.

Q10: How Can Immigration Nation – Immigration Consultant in Edmonton Help?

• We assess your occupation, U.S. employer details, potential for Trader/Investor status, or your specialized knowledge as an ICT. We ensure your documentation is in line with IRCC rules, advise on extension strategies, and help navigate regulated occupations. Our aim is a hassle-free landing in Canada.

6. Conclusion

If you’re an American dreaming of working in Canada, CUSMA (the updated NAFTA) provides a straightforward set of LMIA-exempt pathways. Whether you’re a business visitor needing no work permit or a professional/investor/ICT ready for a 1-3 year stint, the right planning makes cross-border transition much easier. Remember:

• Confirm your category.
• Collect the right documents (proof of citizenship, job offer, specialized knowledge, investment, etc.).
• Decide whether to apply online or at the port of entry.
• If the job is regulated, secure licensing or at least meet provincial licensing eligibility.

Need a guide? Immigration Nation – Immigration Consultant in Edmonton can map out your path. We handle everything from verifying your professional credentials to ensuring compliance with Canadian regulations. Call (780) 800-0113 or email [email protected] for a personalized consult.

Safe travels, and we look forward to helping you live and work in Canada under CUSMA—the gateway for U.S. citizens seeking new Canadian horizons!

Disclaimer: The information provided here is for general guidance. Rules and requirements can change, and your personal eligibility depends on meeting Canadian immigration regulations. Always verify current details with Immigration, Refugees and Citizenship Canada (IRCC) or speak with a qualified immigration consultant.