Malaysia Joins The CPTPP

• Law Firm: McCarthy Tétrault LLP
• Subject Matter: Corporate/Commercial Law, International Law, Corporate and Company Law, International Trade & Investment
• Author: Spotlight Can-Asia Blog, Amy Dupuis-Sène and Amélie Drouin
• Published date: 09 February 2023

As of November 29^th, 2022, Malaysia is the newest member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ("CPTPP", also known as "TPP11").

The CPTPP is a trans-continental free trade agreement between Canada and countries in the Asia-Pacific. It covers virtually all sectors and aspects of trade between Canada and member countries to reduce trade barriers and facilitate trade. The CPTPP member countries are Canada, Australia, Japan, Malaysia, Mexico, New Zealand, Singapore, Vietnam and Peru.

In its labour mobility provisions, the CPTPP provides for a work permit exemption, the "Business Visitors" category, and three Labour Market Impact Assessment ("LMIA")-exempt work permit categories: Investors, Intra-Corporate Transfers, and Professionals/Technicians.

Work Permit Exemption: Business Visitors

Eligibility under this category: citizens of all CPTPP member countries, as well as permanent residents of Australia and New Zealand

Under the CPTPP, business visitors are eligible to temporarily come to Canada to engage in one of the following business activities:

• Meetings and consultations;
• Research and design;
• Manufacturing and production;
• Marketing;
• Sales;
• Distribution; and
• General services.

Citizens and permanent residents of Australia and New Zealand, as well as citizens of Mexico and Malaysia, are also eligible to engage in After-sales or after-lease services.

In all cases, the foreign national's primary source of revenue for these activities and their principal place of business must be outside of Canada.

Business visitors do not require a work permit to conduct these activities in Canada and may stay in Canada for a period of six months, with the possibility to extend their business visit.

LMIA-Exempt Work Permit Category: CPTPP Investors

Eligibility under this category: citizens of Japan, Mexico, Peru and Vietnam, as well as citizens and permanent residents of Australia

This work permit category is for applicants who wish to establish, develop, or administer an investment to which a substantial amount of capital was committed (or is in the process of being committed). Applicants must occupy a supervisory or executive role, or in the cases of employees, a role involving essential skills.

Applicants must also be able to provide documentary evidence that the investment in Canada is a real and active commercial or entrepreneurial undertaking that operates to produce a service or commodity for profit, and that the funds (or other...