Canada has implemented the Buy Canadian Policy to reshape federal procurement in favor of domestic industries as part of efforts to strengthen economic resilience and diversity amid global trade challenges.
What Is the Buy Canadian Policy?
The government of Canada said Tuesday that the new policy will prioritize domestic suppliers and content in major federal contracts. The aim is to strengthen the country’s industrial base and workforce while supporting local communities.
The procurement framework, which aligns with commitments in Budget 2025: Canada Strong, will apply to strategic federal projects, resulting in the prioritization of bids with strong Canadian content, including manufacturing, research and development, and other economic activities carried out in the country. The policy immediately applies to projects worth $25 million or more. For projects worth $5 million or more, the policy will apply beginning spring 2026.
Furthermore, federal construction and defense projects will be required to utilize materials like steel, aluminum and wood that are produced in Canada. This requirement covers projects valued at $25 million or more that use at least $250,000 worth of such materials, provided a Canadian source exists.
Joel Lightbound, minister of government transformation, public works and procurement and Quebec lieutenant, said the policy creates demand across the country and provides advantages to suppliers who invest, innovate and produce here at home.
“It’s a major step toward stronger supply chains, good jobs and a more resilient Canadian economy,” said Lightbound.