Voyageur 140
CUSMA Gets The Annual Review Treatment, and Incorporation Can Dodge CPP, With Strings.
News for residents of the “11th province”: Canadians abroad.
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CUSMA Gets The Annual Review Treatment
CUSMA (the erstwhile NATFTA) did not die on July 1, but rather moved into the paperwork version of purgatory. Washington refused to renew the Canada-U.S.-Mexico trade deal for another 16 years, so the pact will now have annual reviews that can run until 2036.
The useful bit is that the agreement is still standing. Canadian and Mexican goods that met CUSMA rules on June 30 will be able to keep the tariff carve-out. The less-pretty bit is that the uncertainty also stays, and U.S. tariffs are still going to be hitting sectors like steel, aluminum, autos, lumber and furniture.
This is the kind of Ottawa-Washington story that causes moves in the dollar, can dent Canadian business investment, and change the mood around jobs, returns home and cross-border family plans. The next dates to watch are July 20, when the U.S. and Mexico will once again pick up talks, and July 24, when Washington is expected to bring in a new global tariff regime into play.
Read more: The Globe and Mail / United States Trade Representative
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Incorporation Can Dodge CPP, With Strings
A self-employed Canadian can owe up to $9,292.90 in CPP contributions for 2026 and so MoneySense ran through a tempting workaround of incorporating, paying yourself dividends instead of salary, and watching the CPP contributions fall to zero.
It’s maybe a tidy strategy until you hear of the trade-offs. Dividends don’t create RRSP room. They also mean less (forced) retirement saving, and of course, there’s no CPP build-up from that income. Another factor is that CPP isn’t only a retirement cheque, it can also provide disability and survivor benefits, which might be of interest if you are making plans from abroad and already juggling a different tax system.
The strategy piece is aimed at business owners in Canada, but the question travels well. Plenty of Canadians abroad retain consulting income, Canadian corporations or return-home plans in the mix. Avoiding CPP can improve cash flow today, but fiddling with it can also shrink one of the few pension streams that is able to follow you around the world.
Read more: MoneySense