Malaysia joins the CPTPP
As of November 29th, 2022, Malaysia is the newest member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”, also known as “TPP11”).
The CPTPP is a trans-continental free trade agreement between Canada and countries in the Asia-Pacific. It covers virtually all sectors and aspects of trade between Canada and member countries to reduce trade barriers and facilitate trade. The CPTPP member countries are Canada, Australia, Japan, Malaysia, Mexico, New Zealand, Singapore, Vietnam and Peru.
In its labour mobility provisions, the CPTPP provides for a work permit exemption, the “Business Visitors” category, and three Labour Market Impact Assessment (“LMIA”)-exempt work permit categories: Investors, Intra-Corporate Transfers, and Professionals/Technicians.
Work Permit Exemption: Business Visitors
Eligibility under this category: citizens of all CPTPP member countries, as well as permanent residents of Australia and New Zealand
Under the CPTPP, business visitors are eligible to temporarily come to Canada to engage in one of the following business activities:
- Meetings and consultations;
- Research and design;
- Manufacturing and production;
- Marketing;
- Sales;
- Distribution; and
- General services.
Citizens and permanent residents of Australia and New Zealand, as well as citizens of Mexico and Malaysia, are also eligible to engage in After-sales or after-lease services.
In all cases, the foreign national’s primary source of revenue for these activities and their principal place of business must be outside of Canada.
Business visitors do not require a work permit to conduct these activities in Canada and may stay in Canada for a period of six months, with the possibility to extend their business visit.
LMIA-Exempt Work Permit Category: CPTPP Investors
Eligibility under this category: citizens of Japan, Mexico, Peru and Vietnam, as well as citizens and permanent residents of Australia
This work permit category is for applicants who wish to establish, develop, or administer an investment to which a substantial amount of capital was committed (or is in the process of being committed). Applicants must occupy a supervisory or executive role, or in the cases of employees, a role involving essential skills.
Applicants must also be able to provide documentary evidence that the investment in Canada is a real and active commercial or entrepreneurial undertaking that operates to produce a service or commodity for profit, and that the funds (or other capital assets) put towards the investment were acquired by legitimate means.
Work permits are issued for an initial duration of up to 1 year and can be renewed.
LMIA-Exempt Work Permit Category: CPTPP Intra-Corporate Transferees
Eligibility under this category: citizens of Japan, Malaysia (except under the “Specialist” sub-category), Mexico and Peru, as well as citizens and permanent residents of Australia and New Zealand.
This is a work permit category that allows foreign nationals to temporarily come to Canada to provide services as an executive, manager or specialist to a company that is either the parent entity, a subsidiary, or an affiliate of a Canadian company.
“Specialists” are defined as employees with specialized knowledge or an advanced level of expertise in connection with the company’s products/services or processes/procedures.
Applicants must have been continuously employed by the foreign entity in a CPTPP country for at least 1 out of the past 3 years and must be transferred to a qualifying enterprise in Canada.
Work permits are issued for an initial duration of up to 3 years and can be renewed.
LMIA-Exempt Work Permit Category: CPTPP Professionals and Technicians
Eligibility under this category: citizens of Australia, Japan, Mexico, Peru and Malaysia, with country-specific lists of eligible occupations.
This is a work permit category that allows certain professionals and technicians to temporarily come to Canada to work as such. Each country has its own list of eligible occupations.
To qualify as either “Professionals” or “Technicians”, applicants must meet certain eligibility criteria related to education and work experience, in addition to having a job offer for an eligible occupation.
Examples of eligible occupations under the “Professionals” category include engineers, financial analysts and web designers. Eligible “Technician” occupations include engineering technologists, electricians, plumbers and graphic designers.
Work permits are issued for an initial duration of up to 1 year and can be renewed.
Conclusion
The CPTPP’s temporary entry provisions are just a few of the many measures put in place by the CPTPP to help create jobs, strengthen economic relations and boost Canada’s trade with important trading partners in the Asia-Pacific region.
If your company has business activities in Canada and would like to learn more about how the CPTPP’s labour mobility provisions can facilitate business travel and the hiring of foreign nationals from one of the CPTPP’s member states, please do not hesitate to contact our team.
For more information on the CPTPP, visit: https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/operational-bulletins-manuals/temporary-residents/foreign-workers/international-free-trade-agreements/trans-pacific.html