October 31, 2024
CETA Chapter 10: Professional Mobility in Service of Business Growth and Transatlantic Trade Expansion
The Comprehensive Economic and Trade Agreement (CETA) is a free trade agreement signed in 2016 between Canada and the European Union.
It underscores and strengthens the relationship between these two transatlantic powers, particularly in terms of trade, investment, development, and labor mobility.
A sign of its success, since the agreement was signed, bilateral trade in goods and services has increased by 65%. In 2022 alone, nearly 900 million Canadian dollars were saved in customs duties. This is a significant amount, especially considering that the majority of the businesses benefiting from this agreement are SMEs [1].
Employment is also not overlooked: in 2019, nearly 700,000 jobs were linked to trade between Canada and the European Union.
A major trade agreement for both parties, a chapter on workforce mobility was essential. To truly enable trade to flourish and investments to significantly increase, the smooth transfer of talent is crucial. Canada and the EU have therefore established facilitating measures for the temporary stays of key personnel and professionals in each other’s territory.
Chapter 10 of the CETA provides predictability for the nationals concerned on both sides of the Atlantic, focusing on senior executives and skilled professionals. To date, the agreement does not provide facilitation for low-skilled workers. It also confirms the prohibition, except in exceptional cases, of restricting access to its internal market for nationals of the other party concerned, and ensuring fair treatment once work permits are obtained [2].
Key personnel, essential for establishing transatlantic investments
During the creation of Chapter 10, Canada and the EU initially aimed to strengthen transatlantic investments and facilitate the establishment of subsidiaries and branches. Key personnel thus include senior executives, graduate trainees, and highly specialized workers undergoing intragroup transfer. For them, as well as for investors and business visitors, simplification measures are provided.
Senior executives and specialists can thus benefit from facilitated transfers of up to four and a half years. This substantial duration relative to other types of transfers allows them to integrate into the labor market and develop their company’s activities there. The CETA goes even further than more general programs for this type of professionals. Any company, whether it is an SME or a multinational corporation, as well as their partnering workers, can benefit from these measures [3].
The CETA also emphasizes the importance of strengthening and facilitating investments between the parties. With this in mind, it allows business visitors to enter the territory for short durations or for investment purposes without requiring a work permit. This is allowed for up to three months within a six-month period, as long as they do not enter the labor market of the other party, are not remunerated in Canada, and only come for activities listed within the Chapter [4].
It also allows investors to obtain a renewable one-year work permit when they come to the other party to commit or exploit significant capital, either on their behalf or on behalf of the hiring company [5].
Skilled professionals, at the core of international mobility
In addition to key personnel, Chapter 10 of the CETA mainly covers two types of professionals: contractual service suppliers and independent professionals. The latter can stay for up to one year, renewable for a period of two years. Both types of professionals thus have the opportunity to support a company’s activities in the territory of the other party when a contract to provide a service has been concluded [6].
Also, although the agreement primarily focuses on highly skilled professionals, it still includes a mention for engineering and science technologists. They are required to come and execute a service contract for a client in the territory of another party, under the same framework as contractual service suppliers and independent professionals [7].
In addition to the measures outlined in the CETA, both Canadian and EU nationals are exempt from visas when traveling across the Atlantic [8]. This significant advantage, coupled with the provisions in the CETA, allows for the submission of Canadian work permit applications at a port of entry. This represents a major time-saving benefit for mobilized professionals, particularly when coming to Canada, as this advantage can sometimes eliminate processing delays, which are one of the main barriers to labor mobility.
The workforce mentioned does not cover permanent employment, citizenship, or residence. Additionally, although the agreement was negotiated and signed while the United Kingdom was still a member of the European Union, the measures could remain between Canada and the UK, in the same terms, according to the negotiated Continuity Trade Agreement between the two parties.
Therefore, the CETA represents a significant economic advantage for both Canadian and European businesses. However, despite being in effect for several years, the agreement is unfortunately still underutilized, according to statements from the authorities of each country. Its measures on workforce mobility have already allowed numerous companies to establish themselves in the territory of each party and create significant economic opportunities.
The emphasis on entry requests under Chapter 10 is crucial for trade between Canada and the European Union, and each party has a vested interest in ensuring that these measures are better known and utilized. The increased establishment of businesses and resources will strengthen the ties between these historical partners and support their economies in facing the challenges of the 21st century.
This article was written by Dylan Alary, an immigration lawyer. Its last update was on March 12, 2024
[1] https://www.consilium.europa.eu/en/infographics/eu-canada-trade/
[2] https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/text-texte/10.aspx?lang=eng
[6] https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/operational-bulletins-manuals/temporary-residents/foreign-workers/international-free-trade-agreements/canada-eu/contractual-service-providers.html
[8] https://www.canada.ca/en/immigration-refugees-citizenship/services/visit-canada/entry-requirements-country.html#visaExempt (à l’exception des ressortissants roumains qui ne détiennent pas de passeport électronique)
Photo de Christian Lue sur Unsplash