Understanding CUSMA/USMCA in 2025
In July 2020, the Canada-United States-Mexico Agreement (CUSMA) — known as USMCA in the United States and the United Mexican States — replaced NAFTA after 27 years. As we move through 2025, this agreement continues to facilitate cross-border work opportunities that many Americans are now leveraging to relocate to Canada while maintaining their US careers.
The agreement modernized rules established in 1994, addressing technological developments and creating new pathways for professionals to work across North American borders. For Americans considering a move to Canada, understanding these provisions has never been more important.
What is CUSMA?
CUSMA stands for the Canada-United States-Mexico Agreement, also known as the United States-Mexico-Canada Agreement (USMCA) in the United States. This free trade agreement, which came into effect in July 2020, replaced the North American Free Trade Agreement (NAFTA) that had been in place since 1994. CUSMA aims to promote economic growth, create jobs, and strengthen trade relationships among the three member countries: Canada, the United States, and Mexico.
The agreement modernizes the rules established under NAFTA, addressing new technological developments and creating more robust frameworks for digital trade, intellectual property, and labor rights. For professionals and businesses, CUSMA offers streamlined processes for cross-border work and investment, making it easier to operate and collaborate across North American borders. This is particularly beneficial for Americans looking to leverage remote work opportunities while enjoying the benefits of living in Canada.
Intellectual Property Protections
The USMCA includes comprehensive intellectual property protections designed to foster innovation and creativity across North America. One of the key changes under the agreement is the extension of copyright terms in Canada. Now, copyrights last for the life of the author plus 70 years, aligning with the standards in the United States. For sound recordings, the copyright length has been extended to 75 years.
Additionally, the agreement provides at least 10 years of exclusivity for biotechnological firms regarding agricultural chemicals, ensuring that companies can protect their investments in research and development. The USMCA also mandates criminal penalties and civil remedies for satellite and cable signal theft, further safeguarding intellectual property rights. These provisions collectively create a more secure environment for creators and innovators, encouraging continued investment in new technologies and creative works.
Why US Citizens Are Moving to Canada in 2025
The trend of Americans relocating to Canada has accelerated due to several factors:
- Remote work normalization post-pandemic
- Rising housing costs in major US tech hubs (average home prices in San Francisco reached $1.4M in 2024 vs. $850K in Toronto)
- Desire for access to universal healthcare
- Interest in Canada’s quality of life and social policies
- Economic and political stability
According to Statistics Canada, work permit applications from US citizens increased by 37% between 2023-2024, with a significant portion using CUSMA provisions as their primary pathway. Many US professionals are discovering they can maintain their American jobs while enjoying the benefits of Canadian living — and CUSMA makes this transition significantly easier.
Four CUSMA Pathways for Americans to Work in Canada
CUSMA provides four main categories that allow US citizens to work in Canada without going through the standard immigration channels:
1. Business Visitors
Best for: Short-term projects, meetings, research activities, and training
Key features:
- No work permit required
- Visits typically limited to less than 6 months
- Cannot receive Canadian income
- Must maintain US residence and primary employment
Business visitors can engage in activities like attending meetings, conducting research, providing after-sales service, or engaging in training — all without needing a formal work permit.
2. CUSMA Professionals
Best for: Skilled workers in designated professions
Key features:
- Work permit required but exempt from LMIA (Labour Market Impact Assessment)
- Must work in one of 63 designated professions
- Requires relevant degree or certification
- Initial permits valid for up to 3 years with unlimited renewals
The professional category covers a wide range of occupations including engineers, scientists, management consultants, computer systems analysts, graphic designers, and accountants. This is one of the most common pathways for tech workers moving from the US to Canada. Additionally, skilled workers may also consider the Express Entry system as an alternative pathway to permanent residency in Canada.
Quick Tip: Unlike other work permits, CUSMA Professional applications can be submitted directly at the border or port of entry when arriving in Canada, often resulting in same-day approval for prepared applicants.
3. Intra-Company Transferees
Best for: Employees of US companies with Canadian operations
Key features:
- Work permit required but exempt from LMIA
- Must have worked for the US entity for at least one year
- Position must be executive, managerial, or involve specialized knowledge
- Initial permits valid for up to 3 years (renewable)
This pathway is ideal for Americans whose employers have Canadian subsidiaries, branches, or affiliates. In 2025, many US tech companies have established Canadian entities specifically to facilitate employee transfers under this provision.
4. Traders and Investors
Best for: Business owners and key employees engaged in significant US-Canada trade
Key features:
- Work permit required but exempt from LMIA
- Must be engaged in substantial trade between US and Canada OR
- Must have made substantial investment in a Canadian business
- Leadership or essential skills position required
- Initial permits valid for up to 3 years (renewable)
This category serves US entrepreneurs and business owners who want to expand operations into Canada or who engage in significant cross-border commerce.
Remote Work Options: Keeping Your US Job While Living in Canada
One of the most appealing scenarios for Americans is maintaining their US employment while relocating to Canada. There are several ways to structure this arrangement:
Option 1: Work as a CUSMA Professional for a Canadian Entity
If your US employer has a Canadian subsidiary or affiliate, you can transfer to the Canadian entity while performing essentially the same role. This provides the clearest immigration pathway but requires your employer to have Canadian operations. Depending on the Canadian province where the subsidiary is located, there may be additional provincial requirements to consider.
Option 2: Utilize an Employer of Record (EOR) Service
For US companies without Canadian operations, an EOR like Syndesus can legally employ you in Canada on behalf of your US employer. This arrangement:
- Creates a compliant employment relationship in Canada
- Handles Canadian payroll, taxes, and benefits
- Provides necessary documentation for work permit applications
- Maintains your relationship with your US employer
Option 3: Independent Contractor Arrangement
Some professionals establish themselves as independent contractors in Canada while providing services to their US employer. While possible, this approach:
- Requires careful tax planning
- May create compliance risks for both parties
- Often provides less immigration security
- Needs proper contracts and business registration
Comparing CUSMA Work Permits vs. Standard Canadian Immigration
The expedited processing and LMIA exemption make CUSMA work permits particularly attractive for Americans looking to move quickly. According to Immigration, Refugees and Citizenship Canada (IRCC), CUSMA applications have a 94% approval rate when properly documented, compared to 76% for standard work permits. In addition to CUSMA, there are various immigration programs like the Atlantic Immigration Program that offer alternative pathways to Canada.
Key Considerations Before Moving from US to Canada
Tax Implications
Americans face unique tax considerations when moving to Canada:
- US citizens must file US tax returns regardless of residence
- Canada-US tax treaty prevents most double taxation
- Foreign earned income exclusion may apply (up to $120,000 USD in 2025)
- Tax equalization policies often available for transferred employees
Consult with a cross-border tax specialist before relocating to understand your specific situation.
Healthcare Coverage and Health Insurance
While Canadian permanent residents and citizens receive provincial healthcare coverage, temporary workers on CUSMA permits typically experience a waiting period of up to 3 months depending on the province. During this period, private health insurance is essential.
Obtaining Canadian permanent residence can provide more comprehensive healthcare benefits compared to temporary work permits.
Housing and Cost of Living
Housing costs vary significantly across Canada:
- Toronto and Vancouver remain the most expensive markets
- Montreal offers urban amenities at lower housing costs
- Halifax, Calgary, and Ottawa provide balanced affordability
- Remote work has opened opportunities in smaller communities
Research housing markets thoroughly before selecting your destination.
Medical Inadmissibility
Medical inadmissibility refers to situations where individuals who are otherwise eligible for immigration to Canada are deemed inadmissible due to certain medical conditions. The Canadian government has established guidelines to assess medical inadmissibility, focusing on conditions that may pose a danger to public health or safety, or that may place excessive demand on health or social services.
Conditions such as tuberculosis, HIV, and other infectious diseases are typically scrutinized under these guidelines. However, being deemed medically inadmissible does not necessarily mean that an individual cannot enter Canada. In some cases, applicants may be eligible for a temporary resident permit or even a permanent resident visa if they meet specific requirements and can demonstrate that they will not pose a significant burden on Canadian health services. It’s crucial for applicants to provide comprehensive medical documentation and, if necessary, seek legal advice to navigate this aspect of the immigration process.
Real Examples: US to Canada Transitions Under CUSMA
Case Study: Software Engineer at a US Tech Company
Sarah, a senior software engineer at a US tech company without Canadian operations, wanted to relocate to Vancouver. Her employer partnered with Syndesus, who became her Employer of Record in Canada. Sarah applied for a CUSMA Professional work permit as a Computer Systems Analyst, received approval in three weeks, and now works remotely from Vancouver while maintaining her US salary.
Case Study: Marketing Executive Using Intra-Company Transfer
Michael, a marketing director at a US retailer with Canadian stores, used the intra-company transferee provision to relocate to Toronto. His employer’s legal team handled the application, which was approved at the port of entry. His spouse received an open work permit, allowing both to establish careers in Canada while their children entered the Canadian education system. Michael’s common law partner was also able to receive an open work permit, allowing both to establish careers in Canada.
How Syndesus Can Help Americans Move to Canada
For Americans looking to relocate to Canada while maintaining their US employment, Syndesus offers specialized services:
- Employer of Record (EOR) Services
- Legal employment in Canada without establishing a Canadian entity
- Compliant payroll, benefits, and tax administration
- Work permit application support
- Ongoing HR compliance management
- Syndesus also coordinates with the Canada Border Services Agency to ensure smooth customs clearance for your move.
- Immigration Pathway Planning
- CUSMA eligibility assessment
- Documentation preparation
- Application strategy and timeline development
- Coordination with immigration professionals
- Relocation Support
- Provincial selection guidance
- Healthcare and insurance transition
- Banking and financial services setup
- Community integration resources
If your US employer doesn’t have a Canadian office, Syndesus can legally hire you on behalf of your US employer, handling all HR, legal, and payroll requirements while you continue your role remotely from Canada.
Success Rate and Timeframes
Since 2020, we’ve helped over 500 Americans relocate to Canada while maintaining their US employment. Our clients typically:
- Receive complete application packages within 2-3 weeks
- Obtain CUSMA work permits in 2-4 weeks after application submission
- Experience a 97% first-time approval rate with our documentation support
- Begin working remotely from Canada within 30-45 days of starting the process
Path to Permanent Residency After CUSMA
While CUSMA work permits are temporary, they create an excellent foundation for permanent residency:
- Canadian work experience adds valuable points in Express Entry (up to 80 additional points)
- Provincial Nominee Programs often prioritize candidates already working in-province
- Maintained employment demonstrates successful integration
- CUSMA permits can be renewed while PR applications process
Applicants should also be prepared to pay the permanent residence fee once their application is approved.
Typical PR Timeline for CUSMA Workers and Canadian Citizenship
| Milestone | Typical Timeframe |
|---|---|
| Initial CUSMA work permit | 0-3 months |
| Build Canadian work experience | 1 year recommended |
| Express Entry profile creation | After 1 year in Canada |
| Invitation to Apply (ITA) | 2-6 months after profile creation |
| PR application processing | 6-9 months |
| Total time to PR | 2-3 years |
Many Americans use CUSMA as their entry strategy, then transition to permanent residency once established in Canada. According to IRCC data, approximately 62% of CUSMA work permit holders eventually apply for permanent residency, with over 70% of those applications being successful.
Applying for Canadian Citizenship
Applying for Canadian citizenship is a significant milestone for permanent residents who wish to become full-fledged citizens of Canada. To be eligible, applicants must meet several requirements, including holding permanent resident status, having lived in Canada for a specified period, and demonstrating language proficiency and knowledge of Canada.
The process begins with ensuring that you have been a permanent resident for at least three years (1,095 days) within the past five years. Additionally, applicants must meet language requirements in either English or French and pass a citizenship test that covers Canadian history, values, institutions, and symbols. Applicants must also not have any criminal convictions that would prohibit them from becoming a Canadian citizen. Once these criteria are met, individuals can submit their application, attend a citizenship ceremony, and take the Oath of Citizenship, officially becoming Canadian citizens.
Eligibility Requirements
To be eligible for Canadian citizenship, applicants must fulfill the following criteria:
- Permanent Resident Status: You must be a permanent resident of Canada.
- Residency Requirement: You must have lived in Canada for at least 1,095 days in the past five years.
- Language Proficiency: You must demonstrate proficiency in English or French, the two official languages of Canada.
- Knowledge of Canada: You must pass a test on Canadian history, values, institutions, and symbols.
- Good Character: You must not be prohibited from becoming a Canadian citizen due to certain criminal convictions or other reasons.
- Oath of Citizenship: You must be willing to take the Oath of Citizenship, pledging allegiance to Canada and its laws.
Meeting these requirements allows you to submit your application for Canadian citizenship. The process involves gathering necessary documentation, completing the application forms, and attending a citizenship ceremony where you will take the Oath of Citizenship. Becoming a Canadian citizen grants you the full rights and responsibilities of citizenship, including the right to vote, run for political office, and obtain a Canadian passport.
Frequently Asked Questions
Can my spouse work in Canada if I have a CUSMA work permit?
Yes, spouses of CUSMA work permit holders can apply for an open work permit that allows them to work for any employer in Canada without needing a separate job offer or LMIA.
Do I need to pay taxes in both countries?
As a US citizen, you must file US tax returns regardless of where you live. However, the US-Canada Tax Treaty prevents double taxation on the same income. Most remote workers will pay Canadian taxes on their employment income but can claim foreign tax credits on their US returns.
Can I buy property in Canada on a CUSMA work permit?
Yes, non-residents and temporary residents can purchase property in Canada. However, some provinces have non-resident speculation taxes. These taxes don’t typically apply to work permit holders who are living and working in Canada.
How does healthcare coverage work?
Most provinces require a 3-month waiting period before provincial healthcare coverage begins. During this time, private health insurance is essential. Many employers provide supplemental health benefits that cover services not included in provincial plans.
Ready to Explore Your Move from US to Canada?
The CUSMA agreement has created unprecedented mobility for US professionals seeking to work in Canada. Whether you’re looking to transfer within your current company, maintain remote employment, or explore new opportunities in the Canadian market, understanding the CUSMA provisions gives you a significant advantage.
Take the Next Step
- Schedule a consultation with our cross-border employment specialists
- Assess your CUSMA eligibility with our free online tool
- Join our webinar on CUSMA work permits (held monthly)
- Download our CUSMA application checklist to prepare your documentation
Reach out to us to learn more about how Syndesus can help you work remotely for a US company from Canada, or join our Path to Canada database to get matched with Canadian employers open to hiring US talent.
This article was last updated in March 2025 to reflect current CUSMA/USMCA regulations and trends in US-Canada work arrangements.