Trader Work Permit

Trader Category: An Overview

Traders who are citizens of Chile, Peru, Colombia, Korea, Mexico, and the United States of America can qualify for a work permit that is exempt from a Labour Market Impact Assessment (LMIA). Initial work permits may be issued for one (1) year and can be extended for two (2) years.

The entry of executives and specialists into Canada for the exchange, purchase, or sale of goods or services is facilitated on a reciprocal basis under the following Canada Free Trade Agreements (FTAs):

• The United States Mexico Canada Agreement (CUSMA), with LMIA exemption code T34
• Canada-Chile FTA, with LMIA exemption code T20
• Canada-Peru FTA, with LMIA exemption code F50
• Canada-Colombia FTA, with LMIA exemption code F10
• Canada-Korea FTA, with LMIA exemption code F30

Business people qualifying in a trader category may be issued a work permit with the respective LMIA exemption code under Canada’s International Mobility Program.

Eligibility Requirements for a Work Permit under the Trader Category

Applicant’s Citizenship‍

The applicant must be a citizen of one of the treaty countries:

• The United States of America
• Mexico
• Chile
• Peru
• Colombia
• Korea

Company/Employing Enterprise Nationality

The employing enterprise from which the applicant is coming, or to which the applicant is going, must share the applicant's nationality. For example, the company that pays a salary to a citizen of Chile who wishes to come to Canada as a trader must be at least 50 percent owned by a Chilean citizen. The place of incorporation is not sufficient to prove an entity’s nationality; rather, it is linked to the owner's citizenship.

Substantial Trade in Goods or Services

Trade is defined as the exchange, purchase, or sale of goods and/or services. This excludes money, securities, and negotiable instruments. Services include, but are not limited to, international transportation, insurance, banking, communications and data processing, advertising, accounting, design and engineering, management consulting, and tourism.

Secondly, an applicant seeking a work permit to engage in substantial trade in goods or services must primarily conduct trade between Canada and the treaty country. Thus, the business person’s predominant activity in Canada must be international trading. "Substantial trade" means that over 50 percent of the entity's total volume of international trade must be conducted between Canada and the treaty country, as determined by the volume and monetary value of the transactions.

Thirdly, trade between the treaty country and Canada must already exist. This can be proven with completed sales and binding contracts. However, an applicant would not qualify as a Trader if their primary purpose is to search for a trading relationship in Canada.

Job Position in Canada

An applicant under the Trader category will work in Canada in a capacity that is supervisory, executive, or involves essential skills, such as those of a highly trained technician or a specialist.

A supervisor is a manager primarily responsible for directing, controlling, and guiding subordinate staff, and who does not routinely engage in hands-on activities. An executive holds a primary position in the company with significant policy authority. Specialists are individuals who possess special qualifications vital to the effectiveness of the company’s Canadian operations. Specialists are not required to have been previously employed by the treaty enterprise. For instance, a qualified technician to perform warranty repairs on products sold in trade between Canada and the treaty country can qualify for a Trader work permit if a Canadian organization cannot find or train a qualified Canadian technician within a reasonable time.

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