(disponible uniquement en anglais)
Via email: Evelyne.Goulet@international.gc.ca; renaude.bender@international.gc.ca; Christine.Roy@international.gc.ca; Ryan.Calvery@international.gc.ca
Dear colleagues at Global Affairs Canada:
Re: Canada–MERCOSUR Free Trade Agreement
The Canadian Bar Association’s Immigration Law Section and International Law Section (the “Sections”) are pleased to provide this submission to Global Affairs Canada in response to its questions regarding trade in services and mobility under a prospective Canada–MERCOSUR Free Trade Agreement (FTA). The CBA is a national association representing 40,000 lawyers, notaries, academics, and law students across Canada. The Immigration Law Section includes over 1,200 members who practice in all areas of immigration and refugee law. The International Law Section brings together members with expertise in international trade, investment, business, and dispute resolution. Together, the Sections provide insights on barriers to cross-border legal and professional services, and recommendations to support effective mobility and fair market access for Canadian professionals.
In answering the seven questions provided, the Sections have put forward 29 recommendations to help inform Canada’s negotiating approach. These recommendations are not intended as a static response but as the beginning of a dialogue. We would be pleased to follow up with Global Affairs Canada to discuss these issues in greater detail and to contribute to ongoing policy development as negotiations advance.
Q1. What services does your organization or membership currently provide to customers in MERCOSUR? What other services, if any, do you hope to provide in the future?
General Response
The Canadian Bar Association (CBA) itself does not directly provide legal services in MERCOSUR jurisdictions. However, CBA members are actively engaged in a broad range of services that facilitate trade, investment, and mobility between Canada and MERCOSUR countries. Current areas of practice include:
- Cross-border trade and investment – advising Canadian and international clients on operations and investment in Argentina, Brazil, Paraguay, and Uruguay.
- Immigration and mobility – assisting individuals and companies with immigration, global mobility, and professional movement, identified in the CBA’s 2017 submission as a critical enabler of trade and investment.
- Governance and compliance – providing expertise in anti-corruption, competition law, and corporate compliance, aligned with principles of fair and transparent trade.
- Dispute resolution – representing clients in international arbitration and advising on dispute settlement frameworks relevant to MERCOSUR jurisdictions.
Looking forward, members anticipate that a Canada–MERCOSUR Free Trade Agreement (FTA) would significantly expand these activities. CBA members expect increased demand for:
- Advisory services on FTA implementation (investment, dispute settlement, and competition law).
- Legal and compliance support for Canadian businesses entering MERCOSUR markets, particularly around transparency, anti-corruption, and state-owned enterprises.
- Expanded mobility services for professionals, intra-company transferees, and business visitors—an area where the CBA has previously recommended dedicated FTA provisions.
- Advisory on responsible business conduct, including gender equity, human rights, and environmental compliance, consistent with Canadian values and international standards.
Recommendations
- Professional Mobility and Legal Services
Recognize professional mobility, legal services, and dispute resolution as integral components of trade facilitation under a Canada–MERCOSUR FTA.
- Governance and Compliance
Include clear provisions supporting transparency, anti-corruption, and corporate governance to create a predictable environment for Canadian businesses.
- Responsible Business Conduct
Incorporate commitments on responsible business conduct, including gender equity and environmental standards, to ensure the FTA aligns with Canada’s broader policy objectives.
Q2. What barriers, if any, have you encountered (or are aware of) that have affected the ability to provide services to customers?
General Response
The CBA itself does not directly provide services in MERCOSUR jurisdictions, but our members have identified several barriers that limit the ability of Canadian professionals and businesses to operate effectively in the region. These include:
- Regulatory discrimination – residency or nationality requirements that restrict access for foreign service providers.
- Commercial presence requirements – obligations to establish a local office or deposit securities before offering services, creating unnecessary costs and discouraging market entry.
- Licensing restrictions – obstacles in obtaining professional licenses, including requirements for locally sourced professional liability insurance, which may disadvantage foreign nationals.
Beyond these examples, CBA members have highlighted broader systemic barriers, many of which were flagged in the CBA’s 2017 submission:
- State-owned enterprises (SOEs) – the presence of SOEs in key sectors can distort competition and restrict opportunities for foreign suppliers.
- Transparency gaps – limited visibility into regulatory processes and enforcement undermines predictability for Canadian service providers.
- Rule of law and governance – weak or inconsistent protections can skew trading relationships in favour of domestic firms and elevate risk for Canadian businesses.
Recommendations
- Licensing and Regulatory Transparency
Negotiate provisions that promote transparent, predictable licensing and regulatory processes.
- Competition with State-Owned Enterprises
Ensure fair competition with SOEs and monopolies, building on precedents in other Canadian trade agreements.
- Professional Mobility
Facilitate mobility and recognition of qualifications, including streamlined pathways for the temporary entry of professionals, intra-company transferees, and business visitors.
Q3. When seeking an authorization to provide a service in MERCOSUR, has your organization or membership encountered any challenges in their regulatory environment?
General Response
The CBA itself does not directly seek authorizations to provide services in MERCOSUR jurisdictions. However, our members are aware of recurring challenges faced by Canadian service providers in the region. These challenges generally relate to the accessibility, transparency, and fairness of regulatory frameworks:
- Availability of laws and regulations – in some jurisdictions, rules governing trade in services are not fully or easily accessible in publicly available formats. This lack of transparency increases compliance costs and creates uncertainty.
- Objectivity of licensing requirements – licensing and qualification criteria are not always clear, objective, or consistently applied, placing foreign service providers at a disadvantage.
- Timeliness and fairness of processes – licensing and authorization procedures are not always timely or non-discriminatory, leading to unnecessary delays and operational uncertainty for Canadian professionals.
These barriers reflect broader governance issues highlighted in the CBA’s 2017 submission, which underscored the importance of transparency, rule of law, and fair regulatory treatment as preconditions for Canadian businesses to compete on equal terms abroad.
Recommendations
- Publication of Laws and Regulations
Require that laws, regulations, and administrative guidelines governing trade in services be published and fully accessible in a public format.
- Licensing Criteria
Ensure that licensing and qualification criteria are objective, transparent, and consistently applied.
- Authorization Processes
Provide for timely, non-discriminatory authorization procedures that do not impose unnecessary barriers to Canadian service providers.
Q4. Would your organization benefit from the signing of mutual recognition agreements or other recognition processes (i.e., MOUs or temporary licenses) to facilitate the recognition of professional qualifications in the MERCOSUR market? If yes, in which sector would it be useful?
General Response
Yes. The CBA and its members would benefit from the establishment of mutual recognition agreements (MRAs) or equivalent mechanisms (e.g., MOUs, temporary licensing frameworks) that facilitate professional mobility between Canada and MERCOSUR jurisdictions. Recognition of professional qualifications would improve the efficiency and predictability of cross-border service delivery, reduce barriers to entry, and strengthen client confidence in Canadian expertise.
Sectors Where Recognition Would Be Most Useful:
- Legal and professional services – recognition of qualifications would enable Canadian lawyers and legal professionals to advise clients more effectively in MERCOSUR markets, particularly in trade, investment, and dispute resolution contexts.
- Immigration and mobility services – streamlined recognition of credentials would help Canadian firms support companies and individuals moving between Canada and MERCOSUR, a priority identified in the CBA’s 2017 submission.
- Corporate and compliance advisory – facilitating recognition for professionals engaged in anti-corruption, competition law, and governance would reinforce trust in transparent and responsible cross-border business practices.
Recommendations
- Mutual Recognition Agreements
Include commitments to promote mutual recognition of professional qualifications through MRAs or similar instruments.
- Temporary Licensing
Provide for temporary licensing arrangements to enable cross-border service delivery where full recognition is not immediately feasible.
- Regulatory Cooperation
Establish mechanisms for ongoing cooperation between Canadian and MERCOSUR professional bodies to ensure long-term alignment and trust.
Q5. Does your organization face challenges in obtaining entry visas or work permits for employees due to labour market tests or numerical restrictions on foreign workers?
General Response
The CBA itself does not employ workers abroad, but our members regularly assist individuals and companies with cross-border mobility issues. They are aware of challenges in MERCOSUR jurisdictions that affect Canadian professionals seeking entry visas or work permits. These include:
- Labour market tests – in some jurisdictions, foreign applicants are subject to requirements that prioritize domestic workers, creating delays and uncertainty.
- Numerical restrictions – quotas or caps on the number of foreign professionals allowed can limit the ability of Canadian firms to place staff in MERCOSUR countries.
- Administrative delays – processing times for visas and permits are often unpredictable, which complicates planning for cross-border business.
In the CBA’s 2017 submission, we emphasized the importance of global mobility for professionals, intra-company transferees, and business visitors as a key enabler of trade and investment. Mobility barriers remain a significant obstacle for Canadian service providers operating in MERCOSUR.
Recommendations
- Work Permit Exemptions
We recommend including work permits that are exempt from labour market tests, particularly for professionals and technicians. Provisions should be modeled on those in the Canada–Colombia Free Trade Agreement (CCOFTA). Eligibility would include: Occupations identified in Appendix 1203.D of the CCOFTA1, whether as independent professionals and technicians, as professionals and technicians in a subordinate relationship, or as contract service suppliers (including training activities related to a particular profession). We would recommend having:- Professionals in TEER 0 or 1 occupations; and
- Technicians in TEER 2 or 3 occupations.
- Length of Stay
Work permits should be issued with an initial three-year duration, with the possibility of extensions.
- Family Accompaniment
Research has shown that international assignments are more successful when families can accompany the main applicant and spouses are permitted to work. We therefore strongly encourage provisions that allow for open work permits for spouses or common-law partners across all categories, including professionals and technicians.
- Young Professionals
We also encourage the creation of a new Young Professionals category, similar to the program under International Experience Canada. This would apply to youth between 18 and 35 who hold a college or university degree and have a job offer in their host country. Canadians sent abroad are often young professionals at the start of their careers, and they may find it difficult to obtain a work permit without prior experience. A Young Professionals category would make it easier for them to access MERCOSUR markets and would also attract young international talent to Canada. Canada already receives many young engineers from Brazil and Argentina, particularly in the mining and manufacturing industries. Reciprocal provisions for Young Professionals would therefore help Canadian firms access MERCOSUR markets while also bringing specialized knowledge into Canada.
Q6. In your organization’s experience, for the personnel sent from Canada to MERCOSUR (or vice-versa): What type of personnel is sent? What activities are they engaged in? How long is the personnel sent?
General Response
The CBA itself does not send personnel abroad. However, based on the experience of our members advising clients engaged in cross-border business with MERCOSUR jurisdictions, certain patterns are clear.
Canadian companies most often send:
- Senior executives and managers to oversee corporate operations or investment projects.
- Legal and compliance professionals to advise on regulatory, contractual, and governance issues.
- Technical experts and consultants to provide specialized services in areas such as trade, finance, or infrastructure.
The work these individuals perform typically includes negotiating and managing trade or investment agreements, ensuring compliance with licensing and competition law requirements, supporting dispute resolution and arbitration, and facilitating cross-border mobility, including immigration and professional licensing processes.
Assignments vary in duration:
- Short-term – business visits or negotiations, usually lasting days or weeks.
- Medium-term – project management or advisory services extending for several months.
- Long-term – secondments or intra-company transfers tied to investment projects, which can last several years and establish a sustained presence in the host country.
Recommendations
- Visa and Work Authorization Flexibility
Ensure that visa and work authorization processes can accommodate a range of mobility needs, from short-term business travel to multi-year professional assignments.
- Professional and Technician Categories
Adopt a negative list for professionals and a more targeted list for technicians (including supervisors) to provide Canadian companies with practical tools to establish operations in MERCOSUR markets.
- Length of Stay
Issue work permits with an initial validity of up to three years, with the possibility of extensions, to reflect the varied duration of projects.
Q7. Has your organization encountered any barriers or challenges related to the temporary entry and stay of personnel in Canada or MERCOSUR?
General Response
The CBA itself does not transfer personnel abroad. However, our members routinely assist clients with temporary entry to and from MERCOSUR jurisdictions. Based on their experience, several recurring challenges have been identified:
- Short authorized durations of stay – the time granted to business visitors or transferees is often insufficient to complete professional assignments.
- Restrictions on categories of personnel – certain professionals, such as legal advisors, compliance specialists, or technical experts, face greater difficulty securing authorization than executives or managers.
- Family member approvals – obtaining visas or permits for dependents can be difficult, reducing the willingness of professionals to accept longer-term assignments.
- Inconsistent processing – authorizations for entry and stay are not always issued predictably or transparently, creating uncertainty for Canadian firms.
As emphasized in the CBA’s 2017 submission, global mobility is a key enabler of trade and investment. Barriers to temporary entry and stay undermine the ability of Canadian professionals to provide services and support cross-border business operations.
Recommendations
A Canada–MERCOSUR Free Trade Agreement should address these challenges by including provisions related to:
- Durations of Stay
A Canada–MERCOSUR Free Trade Agreement should permit longer and more flexible durations of stay for business visitors and transferees. This could include an initial work permit valid for up to three years, with the possibility of extensions.
- Family Accompaniment
The agreement should facilitate entry of accompanying family members by:- Providing open work permits for dependent spouses.
- Allowing children to obtain study permits, with streamlined processes.
- Enabling children aged 16–22 to obtain open work permits, recognizing that older dependents often accompany parents on multi-year assignments.
- Study Permits
Canada already offers the Student Direct Stream to expedite study permit processing for certain countries, including Brazil. We recommend extending this to other MERCOSUR countries, while also seeking reciprocal treatment for Canadian citizens wishing to study in MERCOSUR.
- Processing Standards
The FTA should promote transparent and predictable processing standards by establishing a maximum two-week processing time for all applications under the agreement. This would give Canadian firms the ability to mobilize staff quickly, a critical factor for competitive participation in investment projects.
- Alternative Pathways
As an additional measure, Canadian citizens should be allowed to present work permit applications upon arrival, further streamlining mobility.
- Designated Case Managers
Finally, the agreement should provide for designated case managers in each MERCOSUR country. These officials would serve as points of contact for Canadian companies, ensuring that any work permit application issues can be addressed quickly and effectively.
Additional Considerations on Trade and Investment
While this submission focuses primarily on services and mobility, CBA members have also identified broader issues that are critical to a stable and predictable Canada–MERCOSUR trading relationship. These considerations, while beyond the immediate scope of the seven questions posed, are important context for Canada’s negotiating approach.
- Investment Protections and Capital Flows
Establish strong investment safeguards that are subject to international arbitration, noting that Canadian companies currently lack such protections in Brazil. Ensure the ability to freely repatriate capital and convert currencies at market rates, an issue of particular concern in Argentina. Guard against governmental usurpation of resource rights, as has occurred in Bolivia.
- Natural Resources and Trade in Goods
Prevent the use of export controls on minerals, given the global trend toward protecting domestic critical minerals. Facilitate the import of machinery and capital goods at low or zero tariff rates to support Canadian investment and operations in MERCOSUR.
- Agriculture and Tariff Structures
Address differences in agricultural policy: MERCOSUR countries seek to protect domestic producers, while Canada pursues a more liberalized approach. Disputes in the dairy sector between Brazil and Argentina illustrate the sensitivity of these issues. Recognize that MERCOSUR’s common external tariff (CET) can limit members’ negotiating flexibility. Some countries, including Brazil, Argentina, and Uruguay, have called for reductions or elimination of the CET, raising questions of geopolitical and financial balance.
- Rules, Cooperation, and Sustainability
Reconcile differences in rules of origin. MERCOSUR’s origin regime, set out in CMC Decision No. 5/23, includes intra-MERCOSUR cumulation, which may not align with Canada’s approach. Such discrepancies could affect the production and trade of goods between the blocs. Acknowledge that some MERCOSUR countries seek greater flexibility to negotiate bilateral agreements outside the bloc, a factor that could affect Canada’s negotiating strategy. Strengthen cooperation at the World Trade Organization, particularly on market access and the reduction of agricultural subsidies. Promote international cooperation on sustainable development and ESG principles, ensuring that both blocs align their trade agenda with global commitments.
We thank Global Affairs Canada for the opportunity to provide these perspectives. The Immigration Law and International Law Sections of the CBA stand ready to engage further as Canada advances negotiations with MERCOSUR. We would welcome the chance to elaborate on the recommendations in this submission, explore specific issues in greater depth, and contribute to ongoing discussions to ensure that a Canada–MERCOSUR FTA supports transparent governance, mobility of professionals, and fair access to markets for Canadian service providers.
Yours truly,
(original letter signed by Noel Corriveau for Jatin Shory and Ljiljana Stanic)
Jatin Shory
Chair, Immigration Law Section
Ljiljana Stanic
Chair, International Law Section