What’s New
Canada has now implemented the Canada-European Union Comprehensive Economic and Trade Agreement, referred to as CETA. This agreement has various immigration components, and Canadian companies are expected to greatly benefit from its provisions.
Impact
CETA’s immigration provisions will provide a number of benefits for foreign workers and business visitors from EU member countries. These include:
- ‘Enhanced’ Intra-Company Transfer Provisions
The basic concepts otherwise employed for intra-company transferees from around the world are otherwise enshrined in CETA, including allowances for ‘Senior Personnel’ (parallel to those having executive capacity), and ‘Specialists’ (parallel to those having specialized knowledge). However, CETA adds a third type of intra-company transferee, the ‘Graduate Trainee’. The criteria for such trainees is that they:
(a) possess a university degree, and
(b) are being temporarily transferred to an enterprise in Canada for career
development purposes or to obtain training in business techniques or methods.
Such trainees may receive work permits for the lesser of the length of their assignment contract and one year. No extensions are permitted.
- Contractual Service Suppliers and Independent Professionals
Those dealing with issues of Canadian contracts with foreign service suppliers, or necessities for after-sales service, are keenly aware of the issues sometimes faced in those types of scenarios. CETA provides some relief with regard to foreign service providers.
The provisions of this category apply to certain industry sectors, which can be found at http://www.cic.gc.ca/english/resources/tools/temp/work/international/canada-eu/a10-e.asp. There are different sectors in the two categories, but some examples of the types of industries include engineering, computer and related services, manufacturing advisory, and legal advisory. Further, within these sectors, the nature of the position must fall within National Occupational Code (NOC) levels ‘0’ (management) or ‘A’ (usually requiring a university degree). Work permits will be granted for a maximum of 12 months. To qualify as a Contractual Service Supplier or Independent Professional, applicants must have:
(a) a university degree or a qualification demonstrating knowledge of an
equivalent level, and
(b) professional qualifications if required to practice an activity pursuant to the
laws or requirements in the province or territory where the service is supplied.
Note the distinctions between Contractual Service Suppliers and Independent Contractors:
(a) Contractual Service Suppliers are employees of an EU enterprise that has no Canadian establishment, where there is a contract by their company to provide a service to a Canadian customer. The employee must have been with the EU enterprise for at least one year, and possess three years of relevant professional experience.
(b) Independent professionals are self-employed professionals, contracted to supply a service to a Canadian customer. Such applicants must be engaged in the supply of the service as a self-employed person, and must possess at least six years of relevant professional experience.
- Investors
Investors are EU citizen who will establish or develop, on their own behalf, or on behalf of their employer, Canadian operations. Their roles must be supervisory or executive, and the investment must be ‘substantial’. Initial work permits are for one year, with extensions possible.
- Business Visitors
CETA provides for two categories of business visitors – short-term business visitors, and business visitors for investment purposes. The provisions that allow for these business visitations are in addition to rights that might otherwise exist for ‘ordinary’ business visitors.
Short-term business visits are for up to 90 days in any six-month period, and allow for brief visits, typically for a specific project. The activities permitted can be found at http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/text-texte/10-A.aspx?lang=eng. Certainly, many of the activities parallel ordinary business visitor provisions, but are defined at this site.
Business visitors for investment purposes are EU visitors in a managerial or specialist capacity responsible for setting up a Canadian enterprise, where the person does not engage in direct transactions with the general public, and is not remunerated from Canada. This presumably is a lead-in to a potential future Investor work permit as set out above.
What You Should Do
The foregoing is of course only a brief summary of the provisions of CETA, and there are many details. If you engage or seek to engage EU nationals for activities in Canada, CETA may offer various benefits, but you must also be cognizant of limitations, and should ensure that you are informed about specific requirements for a particular case. We hope to expand on CETA provisions as time goes on, but at this juncture, the above summary should provide a basis to know whether a CETA provision may benefit you, which will allow you to then consider the details.
The information in this article is for general purposes only, and not intended as legal advice for any particular situation.