New Buy Canadian Policy to Strengthen Opportunities for Canadian Businesses

On September 5, 2025, the Government of Canada announced new measures to protect, build, and transform Canada’s strategic industries. At the centre of this plan is a new Buy Canadian Policy, designed to strengthen the economy, build resilience against global shocks, and create more opportunities for Canadian workers and businesses.

Through Public Services and Procurement Canada (PSPC), the policy introduces several key changes:

• Prioritizing Canadian Suppliers and Inputs
  • By November 2025, Canadian suppliers and materials will be prioritized in federal contracts.
  • A new policy will require suppliers to source key inputs — such as Canadian steel and softwood lumber — from domestic companies in defence and construction procurements above a set threshold.
• Requiring Local Content
  • New measures will ensure Canadian businesses and workers benefit directly from federal spending, even when foreign suppliers are involved.
• Strengthening Reciprocal Procurement
  • The Interim Policy on Reciprocal Procurement, already in place, ensures equitable market access by prioritizing suppliers from Canada and countries with reciprocal trade agreements.
  • Full implementation is expected by spring 2026, limiting non-defence contracts to Canadian suppliers or those from trusted trading partners.
• Supporting Small and Medium Enterprises (SMEs)
  • A new SME Procurement Program will provide tailored streams, dedicated support, and help businesses navigate federal procurement processes.

Over the coming months, business sessions will be offered to provide practical tools and strategies to help companies benefit from these changes — whether as prime contractors, subcontractors, or supply-chain partners. Details will be shared on CanadaBuys.

PSPC will continue to keep suppliers informed as implementation details are finalized, ensuring clarity and support for Canadian businesses as this policy rolls out.