30 Years of the TN Visa: New Data and Trends on TN Professionals in the US Labor Market

Prof. Kevin Shih, Sept. 17, 2024

"This year marks the 30th anniversary of the Trade NAFTA (TN) classification program, which was established in 1994 under the North American Free Trade Agreement (NAFTA). The TN program offers a streamlined pathway for skilled professionals from Canada and Mexico to seek employment in the United States across a spectrum of qualifying occupations. Despite its three decades of existence, there is limited information available about the number and composition of TN professionals in the United States and their impact on the U.S. labor market. The mobility of talented professionals across borders is often lauded as a key driver of global economic vitality. Indeed, supporters of the TN program emphasize its potential to facilitate cross-border partnerships, foster knowledge exchange, and boost innovation and economic growth within North America. However, like many immigration policies, the TN program faces several challenges and critiques, including concerns over wage suppression, displacement of native-born workers, and regulatory complexities. These issues underscore the need for a nuanced and data-driven assessment of the impacts of the TN program. In comparison to alternative immigration pathways for skilled workers to enter the United States, the TN visa stands out in at least four regards: 1) there is no numerical limit on the number of TN workers; 2) there is no limit on the duration of work, as TN visas are issued in three-year increments and can be renewed indefinitely; 3) eligibility is restricted to individuals who meet specific education requirements, typically a bachelor’s degree or higher, and who work in one of approximately 60 approved occupations; and 4) employers face lower application costs as they only need to provide letters confirming employment. Against this backdrop, this paper aims to provide new data and insights on TN professionals over the past three decades."