December 18, 2025
The Government of Canada is taking a major step to strengthen the domestic economy by prioritizing Canadian materials, suppliers, and content in federal procurement. This week, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Québec Lieutenant, announced the new Buy Canadian Procurement Policy Framework, which applies to all federal departments and agencies, as well as Crown corporations.
What’s included in the new framework
The Buy Canadian Procurement Policy Framework is supported by two key policies:
- Policy on Prioritizing Canadian Materials in Federal Procurement
- Supports domestic materials industries
- Applies to defence and construction contracts
- Requires successful bidders to provide Canadian-produced steel, aluminum, and wood products
- Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements
- Applies to sectors deemed strategic to the Canadian economy
- Prioritizes Canadian suppliers and Canadian content
These policies take effect as of December 16, 2025, for federal departments and agencies. Implementation for Crown corporations will begin at a later date.
Why this matters
These changes aim to:
- Strengthen Canadian markets by promoting the use of domestic materials, suppliers, and goods
- Help Canadian industries become more self-sufficient and resilient to global economic shifts
What’s next
By spring 2026, the Policy on Reciprocal Procurement will build on the Interim Policy on Reciprocal Procurement that came into effect on July 14, 2025. Additionally, the Small and Medium Business Procurement Program will be launched with support from Innovation, Science and Economic Development Canada, helping smaller suppliers access federal procurement opportunities.
Together, these initiatives ensure federal procurement delivers real economic benefits and supports communities across Canada.
Get assistance
For more information and to provide feedback, visit the Buy Canadian Policy webpage and Questions and Answers for Suppliers.
If you need help understanding the federal procurement process, Procurement Assistance Canada is available to guide suppliers.