United States, Canada and Mexico Reach Agreement on New Trade Pact; Labor Mobility Provisions Are Largely Unchanged
October 1, 2018

At a glance
The labor mobility provisions of the United States-Mexico-Canada Agreement are expected to be implemented consistent with existing practices under NAFTA, though each country continues to have the authority to interpret the agreement with respect to the cross-border movement of businesspersons, professionals, intracompany transferees, traders and investors.
A closer look
Canada, Mexico and the United States have reached agreement on a new trilateral trade pact to replace the North American Free Trade Agreement (NAFTA). The agreement will be known as the United States-Mexico-Canada Agreement, or USMCA.
The labor mobility provisions of the new pact – which ease the cross-border movement of businesspersons, certain professionals, intracompany transferees, traders and investors – are largely the same as those of NAFTA. Canada’s agreement late Sunday to join the pact negotiated by Mexico and the United States in September ensured that the mobility system established by NAFTA could continue.
What’s next for the USMCA
The leaders of the three countries are expected to sign the agreement within 60 days. It must be ratified by the legislatures of the three countries before it can take effect. Ratification is expected to take place in 2019.
What the revised agreement means for employers and foreign nationals
The three countries are expected to implement the labor mobility provisions of the USMCA consistent with existing practices under NAFTA. Until the new agreement takes effect, the NAFTA mobility provisions are expected to remain in place without interruption.
Each country maintains the authority to interpret the provisions of the USMCA, and country-specific policies and application procedures related to businesspersons, intracompany transferees, professionals, traders and investors cannot be ruled out. For example, Canada currently requires intracompany transferees to be currently employed with a foreign subsidiary outside Canada, in addition to having been employed for one year within the previous three years for that entity. The United States recently announced a pilot program to test new L-1 procedures for certain Canadian applicants and imposed stricter interpretations of the TN Economist category.
Fragomen is closely monitoring the new trade agreement and will provide updates on ratification and implementation as new information becomes available.
This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen.
Explore more at Fragomen
Media mentions
Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.
Media mentions
Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.
Work authorization
UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.
Video
Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.
Media mentions
Video
Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support.
Video
Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).
Blog post
Senior Client Services Manager Caroline Kanzara-Obinwa explores how global talent shortages and workforce mobility are shaping the future of critical minerals and the energy transition.
Video
In FC Podcast episode #15, Partner Rick Lamanna, Senior Associate Jake Paul Minster, Senior US Consular Manager Brian Simmons, and Senior Manager Sergio Flores discuss US entry considerations for the 2026 World Cup, including visa options, policy changes and planning timelines.
Media mentions
Partner Charlotte Wills explains that treating compliance as a strategic function helps organisations anticipate risk, manage costs and strengthen workforce planning.
Awards
Partner Karolina Schiffter is ranked Band 1 in Immigration in the inaugural Chambers & Partners Poland guide, recognizing her leadership in advancing Fragomen’s Poland practice.
Media mentions
Manager Karnig Dukmajian
Media mentions
Senior Manager Louise Senior outlines key compliance considerations for UK hospitality sponsors as regulatory expectations continue to evolve.
Media mentions
Senior Counsel Mitch Wexler said proposed H-1B and PERM wage increases could raise hiring costs and apply only to new and pending applications.
Work authorization
UK Government Affairs Strategy Director Shuyeb Muquit explores the latest UK immigration fee increases and their wider implications for migration trends, labour supply and workforce planning.
Video
Partner Karine Wenger outlines US visa considerations for the 2026 FIFA World Cup, including the FIFA Pass priority scheduling system and the importance of early planning.
Media mentions
Video
Senior Associate Isabel Schnitzler highlights key considerations for managing outbound assignments from Germany, including planning, visa requirements and coordinated global support.
Video
Partner Jack Kim discusses one of many immigration pathways for staying in Canada post-graduation, the Post-Graduation Work Permit (PGWP).
Blog post
Senior Client Services Manager Caroline Kanzara-Obinwa explores how global talent shortages and workforce mobility are shaping the future of critical minerals and the energy transition.
Video
In FC Podcast episode #15, Partner Rick Lamanna, Senior Associate Jake Paul Minster, Senior US Consular Manager Brian Simmons, and Senior Manager Sergio Flores discuss US entry considerations for the 2026 World Cup, including visa options, policy changes and planning timelines.
Media mentions
Partner Charlotte Wills explains that treating compliance as a strategic function helps organisations anticipate risk, manage costs and strengthen workforce planning.
Awards
Partner Karolina Schiffter is ranked Band 1 in Immigration in the inaugural Chambers & Partners Poland guide, recognizing her leadership in advancing Fragomen’s Poland practice.
Media mentions
Manager Karnig Dukmajian
