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4mo ago

Canada Puts Buy Canadian Procurement Policy Into Force

The move uses federal purchasing power to channel major contracts to Canadian suppliers, boosting domestic industry.

Minister of Government Transformation, Public Works and Procurement Joel Lightbound speaks as he makes his way to a meeting of the Liberal caucus on Parliament Hill, in Ottawa, on Wednesday, Dec. 3, 2025. THE CANADIAN PRESS/Justin Tang
A Canadian flag is seen through the window of a log home under construction in Salaberry-de-Valleyfield, Que., southwest of Montreal on Wednesday, Oct. 22, 2025.
Minister of Government Transformation, Public Works and Procurement Joël Lightbound says the federal government is 'putting Canadian workers and industries first' through the policy, and that it will help ensure Canadian supply chains remain strong.

Overview

  • Effective December 16, federal procurements of $25 million and over now award bid advantages for Canadian suppliers and measurable Canadian content, with the threshold set to expand to $5 million by spring 2026.
  • Large construction and defence projects must use Canadian‑produced steel, aluminum and wood when at least $250,000 of such materials are required and Canadian supply is available, with materials processed in Canada rather than merely sold by Canadian firms.
  • The policy covers federal departments and agencies as well as grants and contributions programs, with extensions planned where possible to Crown corporations and their subsidiaries.
  • Exceptions are limited to defined circumstances and require approval by the responsible minister with full documentation for transparency.
  • Further steps due by spring 2026 include launching a Small and Medium Business Procurement Program and fully implementing reciprocal procurement, backed by nearly $186 million in Budget 2025 funding, including $79.9 million over five years for the SME program and extensions to infrastructure and other funding streams affecting up to $70 billion.