Government of Canada implements the “Buy Canadian Policy”
Buy Canadian Policy Overview
On December 16 2025, the Government of Canada announced that it is implementing the new Buy Canadian Policy, by releasing two new twin policies known as:
- The Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurement
- The Policy on Prioritizing Canadian Materials in Federal Procurement
Keep your eyes open in the coming days for analysis of these new policy instruments by the Capital Hill Group team.
Effective December 16, 2025, the Government of Canada is implementing the Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurement.
What Does This Policy Do?
This policy gives an advantage to companies with a 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.
GoC Requirements for Large Federal Projects
Also, effective today, the Government of Canada 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. 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 all 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 are expected to roll out by spring 2026, including the Small and Medium Business Procurement Program and the previously released Policy on Reciprocal Procurement.