Federal ‘Buy Canadian’ procurement rules take effect, prioritizing domestic industries

The federal government’s new ‘Buy Canadian’ procurement policy came into force today, marking a significant shift in how Ottawa purchases goods and services for major public projects.

The policy, announced earlier this fall, is designed to give preference to Canadian-made products and Canadian workers in federal contracting. The government says the approach is aimed at strengthening domestic industries and protecting supply chains during a period of ongoing global trade uncertainty.

In its first phase, the policy applies to federal contracts valued at $25 million or more. These projects must now prioritize Canadian businesses and materials, including the use of steel, aluminum and wood products that are manufactured or processed in Canada. The rules cover major government construction, defence procurement, housing initiatives and federally funded community infrastructure projects.

Federal officials say the measures are intended to support sectors that have faced economic pressure in recent years, particularly industries affected by trade tensions with the United States. Procurement Minister Joël Lightbound said the policy places Canadian workers and industries at the centre of federal spending decisions.

The government has indicated additional phases of the policy will follow, potentially expanding the scope of Canadian-content requirements. Businesses and industry groups are expected to closely monitor how the new rules are applied in practice, particularly in provinces with large manufacturing and construction sectors.