Canadian Government launch Buy Canadian Policy

The Government of Canada is launching the Buy Canadian Policy to protect and prioritize Canadian workers and industries, and strengthen Canada’s domestic economy.

Effective December 16, 2025, the government is rolling out new federal procurement rules to support Canadian workers and industries. These changes will:

• help create a strong Canadian supply chain by prioritizing Canadian suppliers and Canadian-made goods and services whenever possible
• help Canadian industries become more self-sufficient and resilient to changes in the global economy

Federal procurement purchasing

As part of Buy Canadian, the Government of Canada announced 2 supporting policies that will give priority to Canadian suppliers, wherever possible, and support their domestic industries. These policies will apply to federal departments and agencies, and will be applied, where possible, to crown corporations and their subsidiaries, as well as across federal grants and contributions programs.

The 2 new policies are:

• the Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements
• the Policy on Prioritizing Canadian Materials in Federal Procurements

Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements

This policy gives priority to Canadian businesses and Canadian-made content for large federal purchases in strategic economic sectors.

It applies to contracts worth $25 million or more, and will apply to contracts worth $5 million or more by spring 2026.

Under this policy:

• Canadian suppliers will receive additional points in their bid evaluation
• all bids will be assessed based on the inclusion of Canadian goods, services, and value-added content, with additional points awarded for higher proportions of Canadian content, including Intellectual Property and Research and Development

Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements

Policy on Prioritizing Canadian Materials in Federal Procurements

This policy supports the Canadian construction and defence industries, and applies to projects such as buildings, bridges, aircraft parts, and more. It requires that large federal construction and defence purchases must use Canadian-produced steel, aluminum, and wood products.

The policy applies to contracts worth $25 million or more, where the requirement for these materials is at least $250,000, and a Canadian source of supply is available.

According to the policy:

• materials must be made in Canada, not simply sold by Canadian companies
• suppliers must confirm their use of Canadian materials before and during the contract

This measure mandates suppliers to use Canadian materials in large projects. This helps the Canadian economy grow and secure jobs for Canadian workers. It also protects Canadian industries from global trade issues and foreign tariffs.

Exceptions will apply if enforcing the policy would cause significant project delays due to the use of Canadian materials, or if those materials are unavailable.

Policy on Prioritizing Canadian Materials in Federal Procurements

Policy on Reciprocal Procurement

The Policy on Reciprocal Procurement supports both the Canadian market and their trading partners, and will be fully implemented by spring 2026.

Under this policy, federal purchases for non-defence goods and services must be produced in Canada or in their trading partner countries who give reciprocal access through trade agreements. This allows Canada to do business with countries that also give Canadian businesses reciprocal access to their markets, and promotes fairness and equality in global trade.

The Policy on Reciprocal Procurement will build on the existing Interim Policy on Reciprocal Procurement that took effect on July 14, 2025.

Supporting Canadian small and medium-sized businesses

The Canadian Government will be launching a Small and Medium Business Procurement Program by spring 2026, with support from Industry, Science and Economic Development Canada. This program will give federal procurement opportunities to Canadian small and medium-sized businesses.

Further details on the program will be communicated as they become available.

Read the full policy document below.