CUSMA’s 2026 joint review: What employers need to know about cross-border mobility

Prepared with the assistance of summer student Brennan Gallant.

The upcoming 2026 joint review of the Canada-United States-Mexico Agreement (CUSMA), known in the United States as the United States-Mexico-Canada Agreement (USMCA), is drawing increased attention from employers that rely on cross-border talent. As many Canadian, US and Mexican cross-border companies rely on CUSMA’s labour mobility provisions to move talent between the three countries, it is an important free trade agreement from an immigration perspective.

While the review has generated uncertainty, it is important to understand what is – and is not – at stake. CUSMA will not automatically expire in 2026. Instead, the agreement remains in force until its current end date in 2036 unless the parties extend its term or withdraw in accordance with the agreement.

CUSMA’s review framework

CUSMA entered into force on July 1, 2020, and has an initial 16-year term ending on July 1, 2036. Under Article 34.7, the parties are scheduled to meet on July 1, 2026 – the sixth anniversary of its entry into force – to review the operation of the agreement and consider whether to extend it for a further 16-year term. If all three parties confirm in writing through their respective heads of government that they wish to continue the agreement, the term is extended. If they do not, CUSMA remains in force and becomes subject to annual joint reviews during the balance of its term.

Though the 2026 review is a significant policy and commercial event, it is not a hard deadline. Even so, any renegotiation or policy shift affecting the agreement’s temporary-entry and labour mobility provisions could have real consequences for workforce planning across North America.

Why CUSMA matters to employers

Chapter 16 of CUSMA governs the temporary entry of certain businesspersons between Canada, the United States and Mexico. It is intended to facilitate short- and medium-term business mobility for defined categories of eligible citizens. It does not create permanent immigration rights, generally only providing access to temporary residency and work authorization.

In Canada, CUSMA provides access to various Labour Market Impact Assessment (LMIA)-exempt work permit options, depending on the category at issue. For employers, those pathways can be significantly more efficient than LMIA-based hiring, particularly where businesses need to move professionals or key personnel quickly across borders.

An LMIA is designed to verify that hiring a foreign worker will not adversely affect the Canadian labour market and that a genuine need for that worker exists. However, the LMIA process is both time-consuming and costly – making CUSMA’s LMIA-exempt work permits a particularly appealing pathway for Canadian employers looking to get foreign talent on the ground quickly.

If the agreement were amended in a way that narrowed those pathways – or if a party withdrew from CUSMA entirely – employers could face longer processing times, additional compliance burdens and increasingly limited mobility options for cross-border personnel.

Key mobility categories

From a Canadian employer’s perspective, the most relevant CUSMA mobility categories are typically professionals, intra-company transferees and traders and investors, as well as business visitors whose activities may not require a work permit. Each of these categories are detailed below.

Professionals – This category is often the most significant for employers. It applies to eligible citizens of the United States or Mexico who have a pre-arranged professional role in Canada and who meet the qualifications for one of the occupations listed in the agreement.

Intra-company transferees – This category supports temporary transfers to a parent, branch, subsidiary or affiliate in another CUSMA country, generally for executive, managerial or specialized-knowledge roles.

Traders and investors – These categories may be available where a businessperson is engaged in substantial trade in goods or services or is making and directing a substantial investment across borders.

Business visitors – A work permit-exempt category facilitating mobility for businesspersons entering another CUSMA country for short-term business purposes, such as attending meetings or conferences.

In the United States, USMCA provides the same general mobility framework. The most commonly used immigration categories under USMCA are USMCA Professional (TN), ICT (L1) and Trader-Investor (E2). These categories are substantially similar to their above-listed Canadian counterparts and operate in a reciprocal manner. Although these pathways correspond to CUSMA/USMCA commitments, each country continues to apply its own immigration legislation, policies and documentary requirements.

What if CUSMA is not extended?

As noted above, if no agreement is reached on the July 1, 2026, joint review date, CUSMA does not automatically terminate. Instead, it remains in force and is reviewed annually during the remainder of its current term, which runs to 2036. That means the legal framework for temporary-entry mobility would continue to apply unless and until the agreement expires or a party withdraws.

Withdrawal by one (or multiple) party countries is also a consideration. Under Article 34.6, a party may withdraw from CUSMA by giving written notice, with withdrawal taking effect six months later. What would follow such a withdrawal is less clear. Although some commentary has suggested that aspects of the prior Canada-U.S. Free Trade Agreement could become relevant again, that issue remains unsettled and should be approached with caution.

Pre-CUSMA, and even before the North America Free Trade Agreement (NAFTA) signed in 1992, the Canada–United States Free Trade Agreement (CUSFTA), which took effect on January 1, 1989, governed trade between Canada and the United States. CUSFTA was superseded by NAFTA and later CUSMA, but it was never formally terminated, meaning it technically remains in force to this day. This creates the possibility of a potential CUSFTA revival should CUSMA be suspended or terminated. Because CUSFTA contains labour mobility provisions similar to those in CUSMA, it could offer a ready-made safety net for North American employers navigating cross-border workforce challenges. However, revival is not guaranteed. Both Canada and the United States may need to consent to bringing CUSFTA back to life, and even if consent is not required, the United States could simply choose to terminate CUSFTA as well, leaving employers back at square one. After more than 30 years of dormancy, CUSFTA’s practical enforceability remains an open question.

Employer takeaways

For now, employers can continue to rely on existing CUSMA mobility pathways. However, the 2026 joint review introduces a level of uncertainty that businesses with cross-border operations should be aware of. Any future changes to eligibility criteria, documentary requirements or processing practices could materially affect hiring and transfer strategies across North America.

Employers that depend on cross-border mobility should identify employees and candidates reliant on CUSMA-based work authorization, monitor developments relating to the 2026 review and consider contingency planning if negotiations result in material changes. At present, CUSMA remains in force – but the coming review will be an important development to watch.

For further information on how CUSMA may impact your workforce, contact a member of the MLT Aikins Immigration team today.

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