Business Visitor Entry Under CUSMA for U.S. and Mexican Citizens

Christopher, a seasoned American tour bus operator in his fifties, grinned as he finalized his Canadian adventure itinerary. This three-day trip promised something special for everyone. Departing from Toledo, Ohio, they’d head straight for Stratford, Ontario, to experience the world-renowned Shakespeare Festival. For theatre buffs, it would be a dream come true. After immersing themselves in culture, the group would journey to the breathtaking Point Pelee National Park, a haven for nature lovers. As Christopher reviewed the details, a question flickered in his mind. With his U.S. citizenship, would he need special permits to enter Canada as a business visitor? Determined to ensure a smooth journey for his excited tourists, he eagerly reviewed the CUSMA provisions.

NOTE: If you are not a U.S. or Mexican citizen, consider reading my other article for business visitors in Canada.

Introduction to CUSMA (USMCA/T-MEC)

CUSMA, known as USMCA in the U.S. and T-MEC in Mexico, aims to liberalize trade among Canada, the U.S., and Mexico. The agreement seeks to abolish tariffs, other trade barriers, and open markets by ensuring new laws do not hinder business activities. For trade to expand, individuals must access each other’s countries to sell goods, provide services, or invest. Consequently, labour mobility is a key component of this agreement.

CUSMA reflects a preferential trading relationship among the three countries. Chapter 16 of CUSMA, titled “Temporary Entry for Business Persons,” facilitates temporary entry for business persons involved in trade, services, or investment. It focuses solely on temporary entry, not permanent residence. Temporary entry means entry without the intent to establish permanent residence. This definition aligns with Canadian immigration law.

Categories of Business Persons

CUSMA simplifies the entry process for various business persons by removing the need for a Labour Market Impact Assessment (LMIA) in many cases. It ensures:

• Business Visitors: A work permit is not required for those engaging in business activities listed in Appendix 1, Section B.
• Professionals: Require a work permit but are exempt from LMIA.
• Intra-Company Transferees: Require a work permit but are exempt from LMIA.
• Traders and Investors: Require a work permit but are exempt from LMIA.

The focus of this article is Business Visitors only.

Reciprocal Agreement

CUSMA ensures reciprocal treatment for Canadian business persons entering the U.S. or Mexico. It provides similar entry provisions to business persons from the U.S. and Mexico entering Canada. This reciprocity supports the broader goal of expanding trade and investment between the three countries. Due to the existence of reciprocities, this group of my clients are among the easiest ones to secure a work permit in Canada.

Business Visitors Under CUSMA

Business visitors enter Canada for international business activities and do not intend to join the Canadian labour market. These activities must align with Appendix 1, Section B of CUSMA, including research, marketing, sales, and after-sales service.

Requirements for Entry

To enter Canada as a business visitor, you must:

• Be a citizen of the U.S. or Mexico. Unfortunately, the agreement does not cover permanent residents of these countries.
• Engage in business activities covered by CUSMA.
• Ensure activities are international in scope.
• Demonstrate no intent to join the Canadian labour market.

Documentation Needed

Business visitors must provide specific documents to support their entry:

• Proof of U.S. or Mexican citizenship.
• Documentation supporting the business activity listed in CUSMA.
• Evidence that the primary source of remuneration is outside Canada.
• Proof that the principal place of business is outside Canada.

Business Activities Covered

CUSMA covers various business activities for business visitors:

• Research and Design: Technical, scientific, and statistical researchers conducting independent or enterprise-related research
• Marketing: Market researchers, analysts, and trade fair personnel
• Sales: Sales representatives and agents take orders or negotiate contracts.
• Distribution: Transportation operators and customs brokers
• After-Sales Service: Installers, repair and maintenance personnel, and supervisors with specialized knowledge
• General Service: Professionals engaging in pre-arranged professional services

Application Process

Business visitors must apply for entry at a Port of Entry (POE). They cannot apply before arriving in Canada. At the POE, they must present all required documentation. Officers will assess their admissibility based on CUSMA provisions.

Since U.S. citizens do not need a visa, they travel to Canada and present the documents at the port of entry. However, Mexican citizens require a TRV (Temporary Resident Visa) to travel to Canada. Some Mexican citizens may travel by air with an eTA (Electronic Travel Authorization). Please book a consultation session to explore your options.

Expectations from Business Visitors

Business visitors must comply with all Canadian immigration requirements. They should not enter the Canadian labour market. They must maintain their principal place of business and remuneration source outside Canada. Typically, their stay in Canada is short-term. Moreover, all other immigration rules apply to them. For example, they may not enter Canada if inadmissible. I offer advice on admissibility issues as well.

After-Sales Service Requirements

For those providing after-sales service, additional requirements include:

• Equipment or machinery must be commercial or industrial, not household.
• Equipment must have been manufactured and purchased outside Canada.
• Service must be under the original sales contract or warranty.

Ensuring Smooth Entry

To ensure a smooth entry process:

• Prepare all necessary documentation in advance.
• Be ready to provide evidence that business activities are international in scope.
• Understand the specific provisions of CUSMA that apply to your business activities.

Business Visitors Not Covered by CUSMA

Sometimes, U.S. or Mexican citizens visit Canada as business visitors but are not covered under CUSMA. Instead, they fall under section 187 of the Immigration and Refugee Protection Regulations (IRPR). These visitors still engage in international business activities without entering the Canadian labour market.

Who Qualifies?

To qualify as a business visitor under IRPR, individuals must meet specific criteria:

• Engage in international business activities without joining the Canadian labour market.
• The primary source of remuneration must be outside Canada.
• The principal place of business and profit accrual must remain outside Canada.

Specific Cases

The following foreign nationals qualify as business visitors under section 187(2) of IRPR:

Purchasing/Training Activities:

• Foreign nationals purchasing Canadian goods or services.
• Receiving training related to these goods or services.

Training at the Canadian Branch:

• Foreign nationals receiving or giving training within a Canadian parent or subsidiary.
• Any production resulting from training must be incidental.

B2B Sales:

• Foreign nationals representing a foreign business or government to sell goods.
• Not engaged in making sales to the general public in Canada.

Documentation Required

To support their entry, business visitors must provide:

• Proof of U.S. or Mexican citizenship.
• Documents showing the business activity aligns with IRPR provisions.
• Evidence that the primary source of remuneration and place of business are outside Canada.

Application Process

Business visitors must apply for entry at a Port of Entry (POE). U.S. citizens cannot apply before arriving in Canada. However, Mexican citizens must transparently explain the purpose of their visit when applying for a TRV or an eTA. Moreover, both citizens at the POE must present all required documentation. Officers will assess their admissibility based on immigration provisions.

Expectations and Compliance

Business visitors must comply with all Canadian immigration requirements. They should not enter the Canadian labour market. They must maintain their principal place of business and remuneration source outside Canada. Typically, their stay in Canada is short-term.

Let Us Help!

Book a consultation session upfront if you wish to enter Canada as a business visitor or for other reasons. I’ll review your circumstances and will offer you official advice. Alternatively, you may fill out the following form to contact our team.