Question Period Note: Buy Canadian

On December 16, 2025, the Government of Canada announced the coming into force of core elements of the Buy Canadian Policy to strengthen domestic industries and ensure federal procurement spending benefits Canadian businesses.

• Since the Buy Canadian policy came into effect on December 16, 2025, the federal government is already transforming its use of public funds by prioritizing Canadian content, materials, suppliers, and workers
  • Government procurement of goods and services serves as a powerful tool to support key sectors and strengthen domestic supply chains, such as steel, aluminum and wood products. This policy is already making a difference
  • In June 2026, just a couple of months after its implementation, the Buy Canadian policy has already applied to a portfolio of solicitations valued at over $3 billion with $721 million worth of contracts awarded to date
  • This portfolio of solicitations includes vaccines for provincial and territorial partners, medical transportation claims processing for Indigenous Services Canada, psychological suitability screening services for the Royal Canadian Mounted Police, as well as the Alexandra Bridge replacement project in the National Capital Region

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.

On November 4, 2025, the Prime Minister announced nearly $186 million in new funding from Budget 2025 to fully implement the Buy Canadian Policy and ensure sustainable outcomes for Canadian businesses and workers.

On December 16, 2025, the Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant announced the coming into force of key elements of the Buy Canadian Policy, which fundamentally changes how the federal government purchases goods and services.

The Buy Canadian Policy applies to all federal departments and agencies and Crown corporations.

Public Services and Procurement Canada developed the strategic framework for the Buy Canadian Procurement Policy Framework, that encompasses a number of new measures.

The Policy Framework, which came into effect December 16, 2025, include:

• the Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements that gives priority to Canadian businesses and Canadian content for major federal procurements. This applies immediately to large, strategic procurements valued at $25 million and over, and was expanded to procurements valued at $5 million and above on June 15, 2026; and
• the Policy on Prioritizing Canadian Materials in Federal Procurements requires suppliers working on defence and construction contracts valued at $25 million and over to use Canadian steel, wood products and aluminum where these inputs are necessary. This Policy will have the required flexibility to introduce additional materials as required

As part of the Buy Canadian Policy suite of measures, the Government plans to roll out a new program for small businesses aimed at increasing their participation in federal procurement and making it easier to navigate the federal procurement system. A Buy Canadian Roadmap to support provinces and territories in adopting Buy Canadian approaches was developed and distributed in late May 2026.

The government is also bringing provinces, territories and municipalities on board with the Buy Canadian policy. It extends across the federal government and across all federal funding streams, including grants and contributions.

It should be noted that, while prioritizing Canadian suppliers, materials, and content, the Buy Canadian policy does not exclude foreign multinational firms from the Buy Canadian Policy solely because their ultimate parent company is foreign-owned. It is recognized that foreign multinationals may employ thousands of Canadians, pay corporate taxes here, source from Canadian suppliers, invest in Canadian facilities, and conduct various economic activities in Canada. Allowing multinational firms to compete gives them a direct reason to locate plants, carry out research and development, and staff subsidiaries in Canada.

• Over the last three fiscal years, from 2023 to 2024 to 2025 to 2026, Public Services and Procurement Canada, as common service provider for the Government of Canada, has awarded $37.8 billion on average annually in goods, services and construction. Of this amount, approximately $28.8 billion (76%) was awarded on average to suppliers operating in Canada
  • Over that same period, of the $8.9 billion that was awarded on average to suppliers located outside of Canada, approximately 93% of this amount was awarded for defence purposes