Government of Canada implements Buy Canadian Policy to strengthen Canada's economy and support homegrown industries

LONGUEUIL, QC , Dec. 16, 2025 /CNW/ - The Government of Canada is implementing the new Buy Canadian Policy, which fundamentally changes how the federal government purchases goods and services. This policy makes Canada its own best customer by strengthening domestic industries, supporting Canadian workers, and building a more resilient and diversified economy in a rapidly changing global trade environment.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, announced that the core elements of the Buy Canadian Policy are coming into force effective December 16, 2025. This policy is a key commitment of Budget 2025: Canada Strong and represents a major shift in federal procurement toward nation-building and long-term economic resilience.

Effective today, the Government of Canada is implementing the Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurement. This policy gives a clear and measurable advantage to companies with a real 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.

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, so that federal investments directly drive demand for materials produced here at home. 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 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 will be rolled out by spring 2026 to build on this foundation, including the Small and Medium Business Procurement Program and the full implementation of the Policy on Reciprocal Procurement. These will strengthen and expand the Buy Canadian Policy measures already in effect.

By leveraging federal procurement as a strategic economic tool, the Buy Canadian Policy strengthens Canada's industrial capacity, supports domestic workers and businesses, and positions Canada to compete more effectively in global markets, now and for the long term.

Quotes

"By implementing the Buy Canadian Policy today, the federal government is putting Canadian workers and industries first and becoming Canada's best customer. This policy creates demand across the country, from steelworkers in Hamilton to aluminum producers in Saguenay–Lac-Saint-Jean and lumber mills in La Tuque and Prince George, while giving clear advantages to suppliers who invest, innovate and produce here at home. It's a major step toward stronger supply chains, good jobs and a more resilient Canadian economy."

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

"The Buy Canadian Policy is an opportunity for us to invest in building a stronger economy and a stronger Canada. In doing so, we will continue to ensure that government funds are used effectively and are managed to deliver important services to Canadians."

The Honourable Shafqat Ali
President of the Treasury Board

"Industry is the backbone of the Canadian economy. Our government is taking decisive action to build the strongest economy in the G7 by being our own best customer. The Buy Canadian Policy is putting workers and industries first by ensuring public dollars benefit Canada's economy, supply chains, communities and resilience."

The Honourable Mélanie Joly
Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

Quick facts

• In 2024 to 2025, the Government of Canada awarded $66.9 billion in contracts for goods, services and construction. Of this total, $55.6 billion was awarded by Public Services and Procurement Canada.
• On July 14, 2025, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, announced the implementation of the new Interim Policy on Reciprocal Procurement.
• On September 5, 2025, the Prime Minister announced the Buy Canadian Policy as part of the Government of Canada's new measures to protect, build and transform Canadian strategic industries.
• Budget 2025 proposes nearly $186 million in new funding to fully implement the Buy Canadian Policy, including $79.9 million over 5 years to help launch the Small and Medium Business Procurement Program.
• The Buy Canadian Policy will extend to infrastructure spending and other federal funding streams, ensuring that as much as $70 billion in additional public investment supports Canadian-made products and services.
• The Buy Canadian Policy will apply to the work of the Major Projects Office to fast-track transformative energy, trade and transportation projects across the country, Build Canada Homes to supercharge housing construction, the Defence Investment Agency to scale up our industrial base, and the Build Communities Strong Fund to revitalize community infrastructure, from universities, colleges and hospitals to bridges and recreation centres.

Related products

Backgrounder
Buy Canadian Policy Framework
Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements
Policy on Prioritizing Canadian Materials in Federal Procurements

Associated links

From reliance to resilience: Budget 2025 delivers new investments to Buy Canadian and build Canada's industrial strength
Government of Canada invites Canadians and suppliers to help shape the future of federal procurement
Prime Minister Carney launches new measures to protect, build, and transform Canadian strategic industries
Prime Minister Carney announces new measures to transform Canada's softwood lumber industry
Prime Minister Carney announces new measures to protect and strengthen Canada's steel industry
Canada's new government implements interim reciprocal procurement to protect Canadian businesses from unfair trade practices
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SOURCE Public Services and Procurement Canada

Contacts: Laurent de Casanove, Director of Communications, Office of the Honourable Joël Lightbound, [email protected]; Media Relations, Public Services and Procurement Canada, 819-420-5501, [email protected]