Canadian HR Reporter

CANADIAN HR REPORTER December 12, 2016 20 FEATURES IMMIGRATION Revising NAFTA for the 21st century Political issues aside, the economic benefi ts to Canada and the U.S. are signifi cant By Stephen Cryne D uring the 2008 presiden- tial campaign, President Barack Obama had this to say about the North Ameri- can Free Trade Agreement (NAFTA): "NAFTA's shortcom- ings were evident when signed and we must now amend the agreement to fix them." Dur- ing Obama's term in office, there have been some modest improvements, under the Be- yond the Border Action Plan, to improve the fl ow of goods and people between Canada and the United States. Fast-forward to the 2016 presi- dential campaign and presiden- tial candidate Donald Trump had this to say about NAFTA: "We lose with Canada — big-league. Tremendous, tremendous trade defi cits with Canada. is is the worst agreement ever signed." So, what can be expected going forward? Let's look at the huge importance of trade between Canada and the U.S. Given the size of the Canadian market, a free-trade agreement is more important to Canada than the U.S. but, nevertheless, it is a signifi cant amount of trade, and it's especially important to U.S. states in the Great Lakes region and southwest. Every day, more than $2 billion in trade and ser- vices pass between the two coun- tries. e combined annual trade amounts to almost 1.5 trillion dol- lars, according to the U.S. Depart- ment of State. From an employment perspec- tive, U.S. exports to Canada sup- port some eight million U.S. jobs, while about 2.5 million Canadian jobs (14 per cent of the workforce) are dependent on Canadian ex- ports to the U.S., according to Global Aff airs Canada. Canada is the United States' largest customer, and more than 400,000 people cross the border every day. In Washington State, for example, goods sold to Canada amount to more than $23 billion per year, generating 244,000 jobs, according to the U.S. government. In Michigan, 241,000 jobs are dependent on $75 billion worth of annual trade with Canada. In New York, trade with Canada is almost $34 billion per year and creates 596,000 jobs. (Trump singled out New York when he said, "New York State has been horribly, hor- ribly hurt by NAFTA.") Labour mobility concerns The movement of employees between the two countries is vi- tally important in supporting that trade in goods and services. As an integrated economy, we do more than make and sell things to each other; now, our companies increasingly innovate and make things together. The NAFTA includes provi- sions covering labour mobility. e Trade NAFTA (TN) visa is designed to facilitate the tempo- rary entry of workers on a recip- rocal basis. e TN provision is guided by a list of professional oc- cupations to work in Canada, the U.S. or Mexico. One signifi cant drawback of the TN list is it's over 20 years old. A lot has happened in that time. N e w o cc u p at i o n s h av e emerged, particularly in IT, fi- nance and health care. Only two professions have been added to the list since its inception. is disconnect with the mod- ern labour market hurts produc- tivity. It creates inconsistency, delays and unpredictability for many businesses that need to mobilize employees between the two countries. In a survey the Canadian Em- ployee Relocation Council con- ducted between 2011 and 2013, involving about 75 Canadian and U.S. businesses, the resounding message was the TN visa list is out of step with existing and emerging occupations. is is in contrast to the more contemporary approach Canada is taking on mobility provisions in agreements with its other trad- ing partners, such as the recently- agreed-upon Canada European Comprehensive Economic Trade Agreement (CETA). While CETA excludes key ser- vices in health care, public educa- tion and other social services, the temporary entry provisions will make it easier for highly skilled professionals and businesspeople, such as engineers and senior man- agers, to work in the European Union. CETA's temporary-entry pro- visions will expand on exist- ing World Trade Organization (WTO) access by setting a frame- work to facilitate temporary travel or relocation for selected categories of business persons, including short-term business visitors, investors, intracompany transferees, and professionals and technologists. A further advantage of CETA, in comparison to NAFTA, is the inclusion of a framework for the mutual recognition of creden- tials. When regulatory bodies in two jurisdictions agree that the professional qualifi cations in each other's jurisdictions are sat- isfactory, they can sign a mutual recognition agreement that allows professionals who are trained and qualifi ed in one jurisdiction to provide services in the other. Would it not make sense to have such arrangements in place within the North American trade pact? Political issues aside, the economic benefits of NAFTA to Canada and the U.S. are signifi cant. Dismantling the agreement could exact a high price on busi- ness and aff ect the livelihood of more than 10 million workers and their families in Canada and the U.S. alone. NAFTA is far from the worst trade deal ever signed, but it sure could use a major makeover to the TN visa list to increase productiv- ity and the economic benefi ts that go with it. Stephen Cryne is the president and CEO of the Canadian Employee Re- location Council in Toronto. For more information, visit www.cerc.ca. Credit: Lightspring (Shutterstock) Dismantling the agreement could exact a high price on business and affect the livelihood of more than 10 million workers and their families. Requirements for Canadian citizens Canadian citizens usually do not need a visa as a NAFTA Professional, although a visa can be issued to qualifi ed Canadian Trade NAFTA (TN) visa applicants upon request. A Canadian citizen without a TN visa can apply for TN non- immigrant status at a United States port of entry. A Canadian without TN non-immigrant status, who resides in a third country with a non-Canadian spouse or child, and who plans to enter the U.S. as a NAFTA professional at the same time as the family members, will need a TN visa in order for the family members to be eligible to apply for derivative TN Dependent (TD) non-immigrant visas. Source: U.S. Department of State

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