Treaty Work Permits (NAFTA, WTO)

*NAFTA Professionals, Intra-Company Transferees (ICTs), Free Trade Agreements

SPECIAL NOTE: In a major policy change announced July 1, 2014, the Canadian government has implemented material changes to the LMO (now LMIA) and Temporary Foreign Worker Program (TFWP). Please note that the contents in these web pages include these policy changes. For more information on the specific changes implemented in July, please consult our Press Release.

When planning a foreign hire, especially for highly-skilled Americans, an employer should first evaluate if the position is eligible for an LMIA-exemption.

A Treaty Work Permit is a special track allowing a Canadian employer or host company to bypass the cumbersome 4-week advertising requirement or LMIA (previously LMO) process, saving time and money.

Of the approximate 221,273 work permits that were issued in 2013, 21,644 stemmed from a Treaty Permit. In turn, 90 percent of Treaty work visas stem from the North America Free Trade Agreement (NAFTA) or about 0.10 percent of the Canadian workforce.

Sample treaty visas include:

• Intra-Company Transferees (ICT) - Worldwide
• Investors – US and Mexican citizens desiring to invest in Canada
• NAFTA Professional (Management Consultants, Engineers, Information Technology…)
• NAFTA – Intra-Company Transferee (ICT)

The advantages of not requiring an LMIA are many. An LMIA-exempt position does not require prevailing wages and the position is not subject to mandatory advertising for a set-period of time. Altogether, a treaty permit will shave 60 days from normally expected processing time.

The majority of LMIA-exemptions are US and Mexican citizens per the free trade agreement (NAFTA). For a full list of North America Free Trade Agreement (NAFTA) occupations that may qualify for an LMIA waiver, click here:

An employer wishing to hire a foreign worker who is exempt from the requirement of an LMIA must still submit a comprehensive packet. The packet must include evidence that the position is “real”, that the company is eligible to hire a non-Canadian and that the foreign worker is qualified to perform the duties of the job.

Recently, significant changes to the intra-Company Transferee (ICT) were passed that many characterize as preposterous (this firm included) and beyond the spirit of the free trade agreements. Among them include new prevailing wage requirements and the requirement that subject matter experts possess “highly useful” knowledge that is “critical” to the business (without specific definitions).

In a recent operational bulletin to officers manning the border, an ICT must now include reference letters, irrefutable proof that a foreign worker’s entry in Canada be “critical to the business” and that without his presence, the business will suffer “significant disruptions”.[1]

For the above reasons, our firm is leaning more on pre-approved LMIA exemptions, thus removing arbitrary decision-making at the point-of-entry. If a hire is urgent and pre-LMIA approval is not feasible due to time constraints, our firm can prepare a robust point-of-entry packet that meets the new requirements within as little as 5 business days.

Standard Treaty (NAFTA) Work Permit Treaty Deliverables:

• Assessment if a position qualifies for an LMIA-exemption
• Preparation of government forms where applicable
• Preparation of a CIC-compliant offer letter for LMIA-exemption
• Preclearance filing to the Temporary Foreign Workers Unit (for advance approval)
• Point-of-Entry filing (for approval at the Canadian border/airport)
• Assembly of relevant supporting documentation with firm cover letter
• Write-up and submission of employer forms
• Interview preparation at the border with Dos and Don’ts
• Preparation and submission of the foreign worker’s work permit
• Post filing correspondence with ESDC and Citizenship Immigration Canada (CIC)

[1] Please refer to Operational Bulletin 575 (2014) in the Citizenship Immigration Canada website.