Canada Launches New Contracting Policy Tied To Trade Restrictions

On July 14, the Canadian government announced new steps that it says will “protect Canadian workers and businesses from unfair trade practices.” Specifically, Minister of Government Transformation, Public Works, and Procurement Joël Lightbound said 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. “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,” Minister Lightbound pledged. “The Policy on Reciprocal Procurement will help leverage our purchasing power to support Canadian businesses and workers impacted by unjustified American tariffs.”

The new policy applies to all federal departments and agencies. It 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.

Minister Lightbound said the government also continues to explore additional ways to maximize the use of Canadian steel and aluminum in government-funded projects, including through coordination with Canadian provinces and territories. Read more. In other trade news, Foreign Minister Anita Anand said the Canadian government is trying to finalize a free trade deal with Southeast Asian nations as part of a push to expand into new markets. Read more about that work.