Comprehensive and Progressive Agreements for Trans Pacific Partnership
Comprehensive and Progressive Agreements for Trans Pacific Partnership (CPTPP) is a free trade agreement between 11 nations that would eliminate the tariffs of goods that are traded between those nations. The nations that are taking part in this agreement are Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Why is this beneficial for Canadian business?
Canadian industries gain a lot due to these agreements. Canada has an export disadvantage when it deals with a country that does not have bilateral trade agreement with Canada. The countries usually have higher tariffs for the Canadian goods that enter their country than the goods that are imported into Canada. But removal of the tariffs would create a level playing ground and make it easier for Canadian business to export into these countries.
The following groups of people come under CPTPP:
- Business Visitors
- Professionals
- Intra company transferee
- Traders and investors
Who are eligible under Business Visitors?
A business visitor is a person who comes to Canada to take part in international business activities, but the person does not enter the Canadian labor market. They can come to Canada for a few days, few weeks or even stay up to 6 months. They do not require a work permit.
Who are eligible under Professionals?
A person is eligible to come as a professional and work in Canada if:
- They are qualified and meet the license requirements for the jobs set out in CPTPP.
- They have a valid job offer from a Canadian employer.
- They have a work permit.
Professionals: Canada has reciprocal agreements with Australia, Brunei, Chile, Japan, Malaysia, Mexico, and Peru.
Technicians: Canada has reciprocal agreements with Australia, Chile, Japan, Mexico, and Peru.
Who is eligible under Intra company transferee?
An intra company transferee is a person that is sent to work for the same company but in a different country.
- The person needs to have worked in a company on an ongoing basis, for at least one year in the last three years and for the same employer or related employer in one of the CPTPP countries.
- The person needs to be transferred to Canada for short term work for the same employer or related employer.
- The person should be working as a manager, executive or in a job that utilizes specialized knowledge.
- They need a work permit.
Executives and Managers: Canada has reciprocal agreements with Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand and Peru.
Specialists: Canada has reciprocal agreements with Australia, Brunei, Chile, Japan, Mexico, New Zealand and Peru.
Management Trainees: Canada has reciprocal agreements with Chile.
Who are eligible under Traders and Investors?
To be eligible as a trader or investor:
- A person should be involved in the planning, supervision and in a role that involves the skills necessary for conducting a large trade of goods and services between Canada and the home country or the person or his company should be making large investments in Canada.
- A person should meet the other rules of CPTPP and have a work permit.
Canada has reciprocal agreements with Australia, Brunei, Chile, Japan, Mexico, Peru, Singapore and Vietnam.
If you would like to understand how to take advantage of this agreement, or how this agreement can help your company, we’ve helped companies navigate their options and can help you as well. Contact us at SAM Law today.