The Government of Canada is implementing the new Buy Canadian Policy, which fundamentally changes how the federal government purchases goods and services. This policy makes Canada its own best customer by strengthening domestic industries, supporting Canadian workers, and building a more resilient and diversified economy in a rapidly changing global trade environment.
Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, announced that the core elements of the Buy Canadian Policy are in effect now.
The policy is a key commitment of Budget 2025: Canada Strong and represents a major shift in federal procurement toward nation-building and long-term economic resilience.
Effective now, the Government of Canada is implementing the policy on prioritizing Canadian suppliers and Canadian content in strategic federal procurement. This policy gives a clear and measurable advantage to companies with a real footprint in Canada: businesses that invest here, employ Canadians and contribute to local economies.
Federal procurements will prioritize bids that feature greater Canadian content, which includes manufacturing, research and development, and other economic activities that occur domestically.
Under this policy, priority will be given to Canadian businesses and Canadian content for major federal procurements. This applies immediately to large, strategic procurements valued at $25 million and over, and will expand to contracts valued at $5 million and above by spring 2026.
Also effective now, the government will require the use of Canadian-produced steel, aluminum and wood products in large federal construction and defence projects. These materials must be manufactured or processed in Canada, not simply sold by Canadian companies, so that federal investments directly drive demand for materials produced here at home. This requirement applies to projects valued at $25 million or more, where at least $250,000 worth of these materials is required and a Canadian source of supply is available.
The Buy Canadian Policy applies to federal departments and agencies, as well as federal grants and contributions programs, and will be extended, where possible, to Crown corporations and their subsidiaries.
Additional measures will be rolled out by spring 2026 to build on this foundation, including the Small and Medium Business Procurement Program and the full implementation of the Policy on Reciprocal Procurement. These will strengthen and expand the Buy Canadian Policy measures already in effect.
By leveraging federal procurement as a strategic economic tool, the Buy Canadian Policy strengthens Canada’s industrial capacity, supports domestic workers and businesses, and positions Canada to compete more effectively in global markets, now and for the long term.
