Amid the ongoing trade war between the US and Canada, the Canadian federal government has officially incorporated “Buy Canadian” into its procurement rules.<\/p>\n
Starting December 16, Ottawa is seeing a substantial change in how it spends money on major infrastructure and defence projects.<\/p>\n
The federal government stated that the new “Buy Canadian” policy has taken effect, which will prioritize Canadian businesses and Canadian-made products to ensure that more public funds remain in the country to support domestic industries and jobs.<\/p>\n
This policy was first announced by Prime Minister Mark Carney in September of this year. At its core, the federal government will prioritize businesses that invest in Canada, employ Canadian workers, and manufacture or innovate domestically when procuring goods and services for large projects. Federal Procurement Minister Jo\u00ebl Lightbound explained that the policy implementation is divided into different phases.<\/p>\n
The first phase has been launched, and all federal contracts with a value of CAD 25 million or more must prioritize Canadian companies during the bidding and evaluation process. The policy also sets forth clear requirements for material usage. All federal construction and defence projects valued at CAD 25 million or more must use Canadian-made or processed steel, aluminium, and lumber, provided that basic supply conditions permit.<\/p>\n
The government specifically emphasized that “Made in Canada” here does not simply mean sold locally. The relevant materials must be manufactured or processed within Canada, and cannot simply be resold by distributors, to ensure that the federal program truly stimulates demand in Canadian manufacturing.<\/p>\n
According to the plan, this procurement rule will continue to expand its scope. Light bond stated that by the spring of 2026, the threshold for prioritizing the purchase of Canadian products will be lowered to federal contracts of CAD 5 million or more, further expanding its coverage.<\/p>\n
In terms of its scope, this policy is not limited to a single department. All federal departments and agencies, Royal Incorporated, and federal government grants and subsidies will be included in the “Buy Canadian” procurement framework<\/p>\n
.The federal government has indicated that this policy will apply to new major federal projects, housing-related agencies, defence procurement, and federally funded community infrastructure projects, meaning that a large number of public works projects will be affected in the future.<\/p>\n
Lightbond stated that through “Buy Canadian,” the federal government is prioritizing Canadian workers and industries in its procurement decisions while ensuring supply chain stability.<\/p>\n
The government also noted that the policy comes as the trade war led by US President Donald Trump continues, impacting Canada’s steel, aluminium, and lumber industries. The new rules are seen as a support measure for these industries.<\/p>\n
With the policy now in effect, federal procurement rules have changed, and the criteria for who will have an advantage in future large government projects have become clearer.<\/p>\n","protected":false},"excerpt":{"rendered":"