Ottawa’s upcoming initiative to prioritize Canadian procurement, known as the “Buy Canadian” policy, is set to be featured in the upcoming federal budget this fall and is anticipated to be fully implemented by spring of next year, according to a reliable federal insider.
The insider disclosed that the initial components of the policy could be operational as early as November, with full implementation expected in 2026. Emphasizing the significance of the details to be outlined in the November budget, the insider hinted at the inclusion of new funding to bolster the policy’s execution.
“We are essentially starting from the ground up,” the insider remarked, highlighting the government’s endeavor to execute a robust policy while adhering to existing free trade agreements. The possibility of implementing the policy without the need for additional legislation or expenditure remains undecided, as per the insider.
Finance Minister François-Philippe Champagne, Industry Minister Mélanie Joly, and Procurement Minister Joël Lightbound are actively engaged in this initiative, with Lightbound spearheading the policy’s implementation, as detailed by the insider.
The Prime Minister’s Office refrained from confirming the information shared with CBC News but acknowledged that further specifics will be unveiled in the forthcoming budget scheduled for November 4. Audrey Champoux, the lead press secretary for Prime Minister Mark Carney, underscored the commitment to introduce new measures to prioritize Canadian suppliers in federal spending by November 2025.
The planned policy underscores the obligation to support Canadian industries, stipulating that both domestic and foreign suppliers engaging in federal contracts must source key materials from Canadian firms in defense and construction procurements surpassing a specified threshold. The obligation is intended to extend to infrastructure spending, grants, contributions, and loans, encompassing federal agencies and Crown corporations not previously subject to federal procurement regulations, as per a government backgrounder.
The Canadian steel industry advocates for a formal “buy Canadian steel” policy to safeguard jobs jeopardized by American tariffs, with only one-third of domestically consumed steel originating from Canadian sources. Catherine Cobden, CEO of the Canadian Steel Producers Association, urges protective measures at the border to shield the domestic industry from unfair trade practices.
While a Buy Canadian provision may not entirely counteract the repercussions of U.S. President Donald Trump’s tariffs, it is perceived as a supportive measure, according to Cobden. Economic projections suggest that a shift towards buying Canadian could inject approximately $10 billion annually into the economy, although this transformation may entail elevated costs.
In light of these developments, concerns arise regarding potential violations of free trade agreements. International trade lawyer Mark Warner highlights the intricate rules governing trade agreements that may impede Canada from restricting foreign companies’ participation in procurement contracts above certain thresholds. Additionally, Warner underscores the challenge of maintaining credibility while pursuing a Buy Canadian policy within the context of international trade norms.