Canada set to begin free trade negotiations: Implications for workers from India, Thailand, UAE and Mercosur countries

Canada may soon make it easier for foreign professionals and businesspeople to enter the country temporarily, as the federal government moves forward with multiple international trade negotiations.

According to official consultation documents released by the Government of Canada, future trade agreements could include provisions that improve temporary entry and work access for individuals from several key regions, including:

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

If these negotiations result in formal agreements, Canada has indicated it may address long-standing challenges faced by foreign nationals seeking short-term work authorization. These challenges often include labour market tests, quota limits, and other regulatory restrictions.

Public consultations related to all four trade initiatives concluded on January 27, 2026.

What this development could mean for foreign workers

While no changes have been finalized yet, the consultation documents highlight several areas that could directly affect foreign nationals hoping to work in Canada temporarily.

Improved temporary entry for business and work purposes

All four trade discussions emphasize the “temporary entry of business persons.” This includes individuals entering Canada for business activities, investment, or employment-related purposes.

If Canada pursues commitments in this area, eligible professionals who fall under the definition of “business persons” in future agreements may benefit from faster, simpler, or more predictable entry processes.

Canada already offers facilitated entry under certain existing trade agreements, and similar or expanded provisions could be introduced through new deals.

Possible easing of work permit requirements

Another major focus across the consultations is the reduction of barriers to temporary work authorization.

Thailand’s consultation is the most direct, explicitly referring to obstacles in obtaining work permits on a temporary basis. However, all four documents identify common issues, including:

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

If these concerns are addressed during negotiations, foreign workers may see reduced reliance on Labour Market Impact Assessments (LMIAs) or fewer restrictions in specific job categories. Many of Canada’s existing trade agreements already include LMIA exemptions, particularly for professionals and intra-company transferees.

No confirmed policy changes yet

It is important to note that the consultations do not guarantee policy changes. Instead, they outline areas where the Canadian government is seeking feedback before entering formal negotiations.

This approach allows Canada to adjust its negotiating position based on public and stakeholder input, meaning final outcomes will depend on how discussions progress.

How the consultations differ by country and region

Thailand: strongest focus on work permits

The Canada–Thailand free trade consultation places clear emphasis on work authorization issues, directly linking temporary entry with difficulties in obtaining work permits.

The document also confirms political momentum, noting that leaders from both countries agreed in October 2025 to officially launch free trade agreement negotiations.

India: focus on sectors and skilled mobility

The proposed Canada–India Comprehensive Economic Partnership Agreement (CEPA) takes a broader approach. It invites feedback on which economic sectors or professional activities would benefit most from improved mobility.

The consultation highlights a wide range of barriers, including labour market tests, quotas, and proportionality rules, suggesting a flexible and sector-specific discussion around mobility.

UAE: trade talks linked with CPTPP ambitions

The Canada–UAE consultation mirrors India’s language on temporary entry but adds an additional dimension: the UAE’s request to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Canada has stated that feedback from these consultations will help shape its approach to both a potential bilateral trade agreement and any future CPTPP accession discussions with the UAE. Bilateral negotiations are expected to begin in 2026.

Mercosur: complex, multi-country negotiations

Canada’s discussions with Mercosur are unique because they involve a regional trade bloc rather than a single country. The consultation focuses on resuming negotiations that were previously paused.

While the temporary entry language is similar to that used for India and the UAE, the process is more complex due to parallel talks related to Uruguay’s CPTPP accession, which could influence how mobility provisions are structured across the bloc.

What to expect next

Although no immediate changes have been announced, these consultations signal that temporary foreign worker mobility is firmly on Canada’s trade agenda. If negotiations succeed, professionals from India, Thailand, the UAE, and Mercosur countries may benefit from easier access to Canadian work opportunities in the coming years.

For now, foreign nationals and employers should closely monitor trade negotiations, as finalized agreements could significantly reshape Canada’s temporary work pathways.

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