NAFTA Professional Mutual Recognition Agreements: Comparative Analysis of Accountancy Certification and Licensure

The North American Free Trade Agreement (NAFTA) countries have worked toward the signing of Professional Mutual Recognition Agreements (PMRA) allowing for accounting professionals to practice across borders. On September 27, 2002, the representatives of the United States NASBA/AICPA International Qualifications Appraisal Board, the Canadian Institute of Chartered Accountants' International Qualifications Appraisal Board, Mexico's Instituto Mexicano de Contadores Publicos, and Comite Mexicano para la Practica Internacional de la Contaduria signed the PMRA for the accountancy profession agreeing on the principal elements for granting accounting certification and licenses: education, examination, and experience. NAFTA's Free Trade Commission affirmed the PMRA on October 7, 2003. This paper reports on the certification and licensing requirements that currently exist for Canada, Mexico, and the United States. Since it is NAFTA's 10th Anniversary it is important to discuss the implementation of the PMRA for foreign accounting professionals to gain permits to practice in the other NAFTA countries. The authors are working under the NAFTA Challenges of Accounting and Business Systems grant from the United States Department of Education Fund for the Improvement of Post-Secondary Education (FIPSE), Human Resources Development Canada (HRDC), and Mexico's Secretaria de Educacion Publica (SEP).