Question Period Note: Buy Canadian
About
- Reference number:
- PSPC-2025-QP-00037
- Date received:
- Oct 8, 2025
- Organization:
- Public Services and Procurement Canada
- Name of Minister:
- Lightbound, Joël (Hon.)
- Title of Minister:
- Minister of Government Transformation, Public Works and Procurement
Issue/Question:
On September 5, 2025, the Prime Minister announced an expanded Buy Canadian Policy to strengthen domestic industries and ensure federal procurement spending benefits Canadian businesses.
Suggested Response:
- As announced by the Prime Minister in September 2025, Public Services and Procurement Canada is developing a Buy Canadian Procurement Policy Framework that will apply across all federal institutions
- Buy Canadian measures will be phased into federal procurements to incentivize the participation of Canadian suppliers and the use of Canadian content.
- We’ve already begun consultations with key sectors, including the steel, aluminum and lumber industries
- We’re also seeking feedback from the public to help shape the Buy Canadian initiatives for the future
- By working together, we can ensure federal procurement delivers lasting economic benefits and strengthens communities across Canada
If pressed on the value and volume of US contracts:
- Last fiscal year, only about 3 percent of Public Services and Procurement Canada contracts were awarded to suppliers located in the US, and were almost entirely for defence purposes
Background:
On September 5, 2025, the Prime Minister announced an expanded Buy Canadian Policy that introduces a suite of new measures to prioritize Canadian suppliers, materials, and innovation across federal procurement and funding programs, amongst other measures to protect, build and transform Canadian strategic industries.
On November 4, 2025, the Prime Minister outlined nearly $186 million in new funding from Budget 2025 to fully implement the Buy Canadian Policy and ensure it delivers lasting results for Canadian businesses and workers – building capacity at home, cutting red tape, and supporting social enterprises so Canadian businesses can access opportunities more easily.
Public Services and Procurement Canada is developing a Buy Canadian Procurement Policy Framework, which encompasses a number of new measures, including:
- [Redacted]
- Incentivizing the use of Canadian content by evaluating bids based on its inclusion;
- A Policy on Prioritizing Canadian Materials in Federal Procurement that will require suppliers working on defence and construction contracts exceeding a certain value to use Canadian steel, wood products and aluminum where these inputs are necessary. The Policy will have the required flexibility to introduce additional materials as required;
- Continued work to further restrict eligibility for non-defence procurements to Canadian goods and services or those from our trusted trade partners. These new measures build on the Interim Reciprocal Procurement Policy that launched in July 2025, which limited the federal non-defence procurement market to suppliers located in Canada and from our trading partners
- In spring 2026, Canada will also launch a Small and Medium Business Procurement Program that will create specific streams of procurement for small and medium businesses and will also help them navigate the federal procurement system more easily
Additional Information:
- In fiscal year 2024 to 2025, Public Services and Procurement Canada, as Canada’s central purchasing agent, awarded $55.6 billion in contracts for goods, services and construction. Of this, approximately $50.9 billion (91%) was awarded to suppliers operating in Canada
- Between April and September 2025, Public Services and Procurement Canada, as a common service provider, awarded 754 contracts and amendments for approximately $2.0 billion to suppliers located outside of Canada. Of this amount, 266 contracts and amendments were awarded for defence purposes representing 92% ($1.9 billion) of the total value
- In July 2025, Public Services and Procurement Canada launched the Interim Policy on Reciprocal Procurement, which ensures all new non-defence procurements over $10,000 are limited to Canadian suppliers and suppliers of Canada’s reliable trading partners when our reciprocal trade agreements apply
- These measures form part of a broader Buy Canadian Strategy, which includes new policies to prioritize Canadian suppliers, goods, services and inputs in federal procurement and funding programs