[ESTABLISHING A BUSINESS ENTITY IN CANADA] 92
protected status and a copy of the completed durable solution information form. Canada-US-Mexico Agreement Under CUSMA, which replaced NAFTA on July 1, 2020, citizens of Canada, the United States and Mexico can gain quicker and easier temporary entry into the three countries to conduct business-related activities or investments. All provisions are equally available to citizens of the three countries. Permanent residents of these countries who are not citizens are not covered by the CUSMA provisions. CUSMA applies to four specific categories: (i) business visitors, (ii) professionals, (iii) intra-company transferees and (iv) persons engaged in trade or investment activities, all of whom can apply to enter Canada on a work permit or as a business visitor without the need for a LMIA. CUSMA does not automatically expire in 2026. Instead, it includes provisions for termination or renegotiation. Specifically, CUSMA continues indefinitely unless one of the parties decides to terminate it by providing formal notice. The agreement allows any party to withdraw by giving six months' written notice, as stipulated in the agreement. Regarding renegotiation, the agreement does not automatically trigger renegotiation in 2026. However, the parties may renegotiate terms if they mutually agree to do so. Renegotiation typically involves extensive discussions and consensus among the parties. The renegotiation process is subject to political and procedural considerations, including approval by elected representatives in each country’s legislative body.OTHER TRADE AGREEMENTS Canada is also a party to the Comprehensive Economic and Trade Agreement (CETA) with the European Union, which aims to eliminate
barriers to trade and investment between Canada and EU member states. Additionally, Canada has established the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a multilateral agreement with Pacific countries such as Japan, Australia, and Singapore, to promote trade and investment in the Asia-Pacific region. Canada also has trade agreements with Colombia, Chile, South Korea, Panama, Peru, the UK and Ukraine, that facilitate work permits. CONCLUSION As can be seen from this summary review, although the commercial considerations involved in establishing and operating a business in Canada are substantially the same as in other jurisdictions, specific knowledge of the particularities of Canadian business law at the federal, provincial, and territorial levels is essential to carrying on that business successfully in the “Great White North.”
ILN Corporate Group – Establishing a Business Entity Series
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