Brexit, CETA, and Canadian Work Permits

Background

As all will be aware, the United Kingdom has now technically exited the European Union, effective January 31, 2020. The European Union (EU) has a free trade agreement with Canada – CETA – and that agreement has immigration provisions that facilitate eased work permit considerations for CETA country citizens. (For general guidance on the immigration provisions of CETA, please see our ImmPulse™ issue of October 4, 2017, found at https://bit.ly/37YGpbt. Additional guidance relating specifically to CETA intra-company transfers can be found at https://bit.ly/398UYJv.)

Issue

So how does the departure of the United Kingdom from the EU impact Canadian work permit considerations for UK citizens?

Current Considerations/Response

Well, for now, from a Canadian point of view (and indeed, even from a UK point of view), nothing really changes. The UK and EU have entered into a transition period, set to conclude on December 31, 2020, during which time they are negotiating possible new terms/treaties. During this period, the UK remains bound by EU law, though it has lost representation or voting rights in EU institutions.

Given this situation, Canada has indicated that during the transition period, the UK will remain part of CETA, and all aspects of CETA – including therefore, immigration provisions – will continue to be applied to the UK as they were prior to January 31, 2020.

Future Issues

It is unclear what will happen at the conclusion of the transition period, and what the political/legal landscape will look like at that time. It is possible that Canada will negotiate a free trade agreement directly with the UK which in any event may replicate the provisions of CETA, and notably the immigration provisions, but we can only wait and see for now. We do anticipate that the Canadian government will provide further guidance in this regard as the year progresses.

One question may be what happens to UK citizens already in Canada under CETA work permits if Canada and the UK ultimately have no treaty-based arrangement, but once again, we can only wait and see at this time.

Summary and Further Considerations

So, at least at this time, and until December 31, 2020, CETA immigration provisions remain applicable to UK citizens, and may be employed where necessary and feasible to secure Canadian work permits for UK citizens. It would be prudent though for persons involved in providing advice on this issue, or corporations utilizing CETA, to recognize that there is some uncertainty around the issue of the future status of workers already in Canada if no formal alternative to CETA is applicable to UK citizens when the transition period concludes.

We will certainly provide any updates on the relevant issues as they occur.

The information in this article is for general purposes only, and not intended as legal advice for any particular situation.