Canadian Design and Construction Report staff writer
The federal government has brought into force the core elements of its new Buy Canadian Policy, a sweeping shift in how Ottawa purchases goods and services aimed at strengthening domestic industries, supporting Canadian workers and building a more resilient national economy.
New rules took effect Dec. 16, a significant change in federal buying policies.
At the centre of the policy is the new Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurement, which gives a measurable advantage to companies with a substantial footprint in Canada. Businesses that invest domestically, employ Canadians and contribute to local economies will be favoured in federal procurements, with higher weight placed on bids that include Canadian manufacturing, research and development, and other economic activity carried out in Canada.
The policy applies immediately to large, strategic federal procurements valued at $25 million or more and is set to expand to contracts worth $5 million and above by spring 2026.
Also effective today, the federal government will require the use of Canadian-produced steel, aluminum and wood products in large federal construction and defence projects. To qualify, materials must be manufactured or processed in Canada—not simply sold by Canadian firms—ensuring that public spending directly supports domestic producers. The requirement applies to projects valued at $25 million or more where at least $250,000 worth of these materials is needed 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.
New measures are expected by spring 2026, including the Small and Medium Business Procurement Program and the full implementation of the Policy on Reciprocal Procurement, which the government says will build on and expand the initial Buy Canadian framework.
“By implementing the Buy Canadian Policy today, the federal government is putting Canadian workers and industries first and becoming Canada’s best customer,” Lightbound said in a statement. He said the policy will help drive demand across sectors and regions, strengthen supply chains and support long-term economic resilience.
