Buy Canadian Policy
The "Buy Canadian" Policy: A Guide to Federal Procurement
The "Buy Canadian" Policy is a federal mandate designed to prioritize Canadian workers, materials, and businesses in government purchasing.
Formally implemented on December 16, 2025, by Minister Joël Lightbound, the policy represents a shift from "best efforts" to a legal obligation for federal departments to be Canada’s "best customer."
How the Policy Works
The policy uses a "points and preference" system to ensure that tax dollars directly support the domestic economy.
- Bid Evaluation Points: Canadian suppliers now receive additional points during the evaluation of their bids. All bids are assessed on their "Canadian Content," including manufacturing, R&D, and Intellectual Property.
- Mandatory Materials: Large federal projects must use steel, aluminum, and wood that is manufactured or processed in Canada, not just sold by a Canadian middleman.
- Reciprocal Access: For goods not made in Canada, the government prioritizes "trusted partners"—countries that give Canadian businesses equal access to their own government contracts.
Key Thresholds (As of Dec 2025)
| Project Type | Contract Value | Requirement |
|---|---|---|
| Strategic Procurement | $25 Million+ | Mandatory priority for Canadian suppliers (Expanding to $5M in Spring 2026). |
| Construction & Defence | $25 Million+ | Must use Canadian steel, aluminum, and wood (if >$250k of material is needed). |
| SME Program | Any | Special fast-track access for Small and Medium Enterprises to access federal bids. |
Why was it launched?
The policy was a key part of Budget 2025: Canada Strong. Its primary goals are to:
- Protect Canadian industries from foreign tariffs and trade wars.
- Reduce reliance on single global supply chains.
- Support high-paying jobs in Hamilton (Steel), Saguenay (Aluminum), and Prince George (Lumber).