Canada remains a magnet for expats worldwide, but recent policy shifts are putting extra financial strain on those considering the move. Relocating there was already costly, and new visa changes are set to hike expenses further. Will this deter potential expats?
Visitor visas adjusted to address labor shortages
Travelers with visitor visas and valid job offers can still get work permits without leaving the country. This provision, launched in February 2023, has been extended two years until February 28, 2025. This decision, made to address ongoing labor shortages, allows employers to hire many expats on standard visitor visas. Remember, a visitor visa (also called a temporary resident visa) might be needed for touring Canada, visiting family, or engaging in professional activities like business meetings.
Limiting student visas to improve the welcome for international students
"Temporary reduction for a better welcome" might be the new motto of Canada's Immigration Department.
Restricting the number of study permits
In a press release on January 22, 2024, the Immigration Department announced limiting study permits for the year to 360,000, a 35% decrease from 2023. The main reasons cited include protecting international students from exploitation and addressing the housing shortage. The Ministry expressed concerns that some institutions exploited financial gains from international students, increasing profits while leaving students vulnerable and without adequate housing solutions. Canada continues to grapple with a significant housing crisis, and the surge in international student numbers would further strain the rental market.
However, there's no intention to blame foreigners. "Blaming foreign students for the housing crisis would be a mistake," Immigration Minister Marc Miller emphasized on December 7, 2023. The minister also acknowledged that it would be equally misguided to welcome international students "without any assistance, leaving them without a roof over their heads." Hence, the decision to cap permits at 360,000 for 2024. Renewal applications for study permits, however, are not affected.
Increased financial criteria for international students
Starting January 1, 2024, international students must meet new financial standards. This decision follows an announcement by Immigration Minister Marc Miller on December 7, 2023. The housing crisis is exacerbated by economic challenges. Although inflation has decreased to 3.9% in 2023 (down from 6.8% in 2022), the overall price hike continues to strain residents' purchasing power. International students are particularly vulnerable to financial instability. To avoid this risk, the Ministry has raised "financial requirements related to the cost of living." International students must now demonstrate they have a minimum of CA$20,635, or "75% of the low-income cut-off."
To justify its action, the Ministry highlights that the financial criteria have remained unchanged since 2000. Considering Canada's economic and social landscape, the previous requirement of CA$10,000 has long needed to be updated. The government clarifies that the newly requested funds are in addition to other expenses such as tuition and travel costs. Consequently, studying in Canada will now entail significantly higher expenses compared to the past. Recognizing the impact on international students, the government intends to introduce multiple assistance programs to support their studies in Canada.
Are visa requirements being reinstated for Mexican nationals?
The Conservatives in Ottawa are pressuring the federal government, and for the first time, the Trudeau administration seems ready to reverse one of its key international policy measures. In December 2016, Justin Trudeau lifted the visa requirement for Mexican nationals to bolster trade between the two countries. However, the exemption has been exploited by international criminal networks, particularly Mexican cartels, as concluded by various investigations conducted in both Canada and the United States. The Biden administration has cautioned that human traffickers associated with Mexican cartels are exploiting Canada's visa waiver to smuggle individuals onto American soil.
According to the Canadian Immigration Department, asylum claims from Mexico have surged since the visa waiver, from just 110 in 2015 to 23,995 in 2023. This surge in applications coincides with a rise in fraudulent activities. Minister Miller acknowledges that many of these claims are not genuine. The acceptance rate is only "around 30%", contrasting with "close to 50%" for other asylum applications from all countries combined. Additionally, there has been an increase in false documents, particularly fraudulent electronic travel authorizations.
Is the Immigration Department likely to follow the Conservatives' approach? The government favors diplomatic efforts and is encouraging Mexico to intensify its efforts against trafficking networks. Instead of reinstating visas for all Mexicans, Canada is considering a targeted visa requirement for new Mexican visitors. This approach has already been implemented for citizens of Costa Rica, Morocco, and Argentina.
How will this affect immigration to Canada?
Is Canada's status as a top destination for expatriates at risk? Currently, we're far from the worst-case scenario. Canada still maintains a positive reputation internationally. The Immigration Department aims to encourage immigration by adapting visa requirements, with a particular focus on francophone immigration. In a press release dated January 16, 2024, Marc Miller unveiled new initiatives promoting "francophone immigration outside Quebec," especially for skilled francophone individuals.
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