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How Canada’s new free trade negotiations could impact workers from India, Thailand, the UAE and Mercosur

Foreign workers and businesspeople from several countries could soon find it easier to enter Canada on a temporary basis, as the federal government prepares for a new round of international trade negotiations.

According to consultation documents released by the Government of Canada, upcoming trade discussions may include provisions to improve temporary entry for businesspersons from:

  • India
  • Thailand
  • United Arab Emirates (UAE)
  • Mercosur countries, including:
    • Argentina
    • Bolivia
    • Brazil
    • Paraguay
    • Uruguay

If negotiations are successful, Canada has indicated it may look at reducing barriers to temporary work authorization for professionals from these regions. These barriers often include labour market or economic needs tests and numerical limits on foreign workers.

Public consultations on the proposed conditions for all four trade negotiations closed on January 27, 2026.

What this could mean for foreign nationals seeking to work in Canada

Based on the consultation documents, several potential impact areas have been identified.

Easier temporary entry for business purposes

Across all four consultations, Canada highlights the concept of “temporary entry of business persons.” This includes entry for business activities, investment, or work.

If Canada secures commitments in these areas, individuals who meet the eventual definition of “business persons” under each agreement could benefit from smoother and more predictable access to Canada for short-term, work-related activities.

Canada already offers facilitated entry for certain categories of business visitors under existing trade agreements, and similar provisions could be expanded under future deals.

Possible reduction of work permit barriers

The consultations also draw attention to long-standing obstacles in obtaining temporary work authorization.

Thailand’s consultation is the most explicit, referring directly to “impediments to obtain a work permit on a temporary basis.” However, all four consultations identify common barriers, including:

  • Labour market or economic needs tests
  • Numerical restrictions such as quotas or proportionality requirements

If Canada and its trade partners choose to address these issues, it could result in fewer or more flexible requirements for labour market testing, such as the Labour Market Impact Assessment (LMIA), or reduced limits on the number of foreign workers allowed under certain categories. Many existing trade agreements already include LMIA exemptions for specific occupations.

No guarantees yet

Importantly, the consultation documents do not guarantee these changes. Instead, they outline areas where the government is seeking public input before finalizing its negotiating positions.

Each consultation clearly states that these topics are examples of areas where the government welcomes feedback, meaning Canada may adjust its approach based on stakeholder and public responses.

Key differences across the four consultations

Thailand: most direct focus on work permits

Canada–Thailand free trade agreement consultations are the most specific when it comes to work authorization. The document explicitly mentions obstacles to obtaining work permits and frames temporary entry as a two-way issue affecting both Canadian and Thai professionals.

Canada has also confirmed political momentum behind the talks, noting that leaders from both countries agreed in October 2025 to launch FTA negotiations.

India: sector-based mobility focus

The proposed Canada–India Comprehensive Economic Partnership Agreement (CEPA) uses broader language, inviting feedback on which economic sectors or activities would benefit most from improved mobility.

It highlights a wider range of potential barriers, including labour market tests, quotas, and proportionality requirements, signalling a more flexible and sector-driven approach.

UAE: CEPA talks and CPTPP considerations

The UAE consultation mirrors India’s language on temporary entry and work-related mobility. However, it also includes a second layer of discussion related to the UAE’s request to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Canada has stated that submissions from these consultations will also inform its position on potential engagement with the UAE’s CPTPP accession. Negotiations on a bilateral CEPA are expected to begin in 2026.

Mercosur: bloc negotiations with added complexity

Canada’s Mercosur consultation differs because it involves a multi-country bloc and focuses on resuming previously paused FTA talks.

While the mobility language is similar to that used for India and the UAE, the process is more complex due to parallel discussions surrounding Uruguay’s CPTPP accession. This dual-track approach could influence how Canada frames mobility commitments across the Mercosur countries.

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