Canada's new government implements Interim Reciprocal Procurement to protect Canadian businesses from unfair trade practices

GATINEAU, QC, July 14, 2025 /CNW/ - As Canada's new government negotiates a new economic and security partnership with the United States, it is also taking action to protect Canadian workers and businesses from unfair trade practices. 

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement announced that the government has implemented a new Interim Policy on Reciprocal Procurement. Under this new policy, suppliers from countries that limit Canadian access to their own government contracts can be restricted from bidding on Canadian federal contracts. This measure will prioritize suppliers from Canada and from our reliable trading partners that provide reciprocal access to suppliers from Canada through trade agreements.

The policy applies to all federal departments and agencies and will be implemented in two phases:

• Phase 1, the interim policy, will focus on applying the policy based on the location of suppliers, started with the roll-out of training and tools on June 30, 2025, to support implementation. The interim policy is effective as of July 14, 2025.
• Phase 2, the complete policy, will determine supplier eligibility based on the origin of goods and services being offered, and will be introduced at a later date.

As shared earlier this year, the government is also exploring additional ways to maximize the use of Canadian steel and aluminum in government-funded projects, including in coordination with Canadian provinces and territories.

By enforcing fair and reciprocal procurement access, the government will protect Canadian innovation, jobs, and economic growth, and ensure that Canadian suppliers remain competitive in the global marketplace.  We will defend the interests of Canadians, safeguard Canada's workers and businesses, and build one Canadian economy – the strongest economy in the G7.  

Quotes

"The Government of Canada is committed to protecting and defending the interests of all Canadians, and will not compromise when it comes to ensuring fair market access for Canadian industry. The Policy on Reciprocal Procurement will help leverage our purchasing power to support Canadian businesses and workers impacted by unjustified American tariffs."

The Honourable Joël Lightbound
Minister of Government Transformation, Public Works and Procurement

Quick facts

• The Policy on Reciprocal Procurement will apply to all new non-defence procurements over $10,000 for the Government of Canada. Contracts and solicitations posted prior to July 14, 2025, will not be impacted.
• Suppliers from non-trading-partner countries will not have access to Government of Canada procurements, unless there is a valid exception under the policy.
• Public Services and Procurement Canada plays a crucial role in ensuring that Canada's procurement practices comply with national and international trade agreements.

Associated links

• Interim Policy on Reciprocal Procurement
• Contracting Policy Notice 2025-5: Reciprocity in Federal Procurement and Amendments to the Canadian International Trade Tribunal Procurement Inquiry Regulations
• Canada bolsters its measures to protect Canadian steel and aluminum workers and industries
• Canada's response to U.S. tariffs on Canadian goods

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SOURCE Public Services and Procurement Canada

Contacts: Victor Kandasamy, Director of Regional Affairs, Office of the Honourable Joël Lightbound, 343-576-0038, [email protected]; Media Relations, Public Services and Procurement Canada, 819-420-5501, [email protected]