Further to our bulletin of July 14th Not Canadian Enough, Eh? How the New Interim Policy on Reciprocal Procurement Could Negatively Impact Canadian Federal Suppliers, Prime Minister Carney provided a teaser on September 5th of upcoming changes to Canadian federal procurement, set to launch in November 2025. The federal government's new Buy Canadian policy aims to strengthen domestic industry by moving away from "best efforts" to establishing clear obligations for buyers subject to the new policy.
"ELBOWS UP!" HIGHLIGHTS INCLUDE
- New Procurement Rules by November 2025: A Policy on Prioritizing Canadian Materials in Federal Procurementw ill require key materials to be sourced from Canadian suppliers for defence and construction procurements exceeding a certain threshold. These materials will initially include steel and lumber but will expand over time.
- Reciprocal Procurement Policy – Finalization and Implementation by Spring 2026: The Policy on Reciprocal Procurement will mandate local content and sourcing from trusted partners when Canadian suppliers are truly unavailable.
- An Additional $70 Billion in Government Spending: An extension of the Buy Canadian policy to infrastructure spending, grants, contributions, loans and other federal funding streams is expected to encompass and additional $70 billion of government spending. Further, this policy will apply to all federal agencies and Crown Corporations (typically outside the realm of federal procurement policies).
- Support for SMEs: A new Small and Medium Business Procurement Program will create dedicated procurement streams and provide navigation support for SMEs entering the federal procurement space.
- Roadmap for Other Jurisdictions: The government will also provide a roadmap for municipalities, provinces and territories to adopt these new policies to further facilitate the "One Canada" approach.
ANCHORS AWEIGH! (TO A NEW DEPARTMENT) - CANADIAN COAST GUARD
- On September 2nd, an Order in Council transferred the Canadian Coast Guard and its Support Services Group from the Department of Fisheries and Oceans to the Department of National Defence.
Read the full Buy Canada announcement here: Prime Minister Carney launches new measures to protect, build, and transform Canadian strategic industries
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