Expanding to Canada Through Business Visits Under CETA

The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) promotes the economic growth of Canada and the EU through the removal of tariffs and the encouragement of international labour mobility. Westbury Law outlines the situation.

Canadian flag waving with Parliament Buildings hill and Library

Westbury Law

1 March 2022

Organizations can increase their international competitiveness through the strategic use of trade agreements. The mobility provisions of trade agreements can be particularly beneficial for small and medium-sized enterprises (SMEs) who may have been previously precluded from cross-border market access due to strict immigration requirements and expensive tariffs.The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) promotes the economic growth of Canada and the EU through the removal of tariffs and the encouragement of international labour mobility. This allows SMEs to develop their businesses in global markets and supply chains through the reduction of red tape and time to market.In increasing Canadian market access, Chapter ten of CETA facilitates business travel by eliminating the requirement for a labour market impact assessment for certain types of qualifying business personnel, such as contractual service suppliers, intracorporate transferees, investors and short-term business visitors. Companies interested in expanding to Canada may wish to assess the market prior to establishing operations or transferring personnel for longer periods. In such circumstances, it may be preferable to travel to Canada as a business visitor.An exploratory business visit may be useful to meet with suppliers, search for office space or to negotiate with potential customers. While the Immigration and Refugee Protection Regulations already allow for the entry of business visitors, there may be instances where a visitor is examined under CETA. Under CETA, the maximum length of stay for a short-term business visitor or a business visitor for investment purposes is 90 days in any six-month period. During this time frame, business personnel may enter Canada regularly for business-related activities which do not require a work permit. Business visitor activities may include meetings, research, seminars and other eligible pursuits listed in Annex 10-D of CETA. CETA also allows for business visits for investment purposes. CETA business visitors for investment purposes are employees in specialist or managerial roles who are involved in setting up a Canadian enterprise, but do not engage in direct transactions with the Canadian public nor do they receive remuneration from a Canadian source. Business visits for investment objectives, provide another avenue for EU companies interested in doing business in Canada.Starting operations in a foreign jurisdiction can be challenging, but CETA opens the door for all sizes of enterprises to engage in international trade through regulatory alignment and reciprocity between Canada and the EU. An opportunistic business visit to Canada can jumpstart a company’s tactical vision by expanding their consumer base beyond domestic markets. For further details and advice on immigration issues visit https://www.westburylaw.ca/