Canada Implements Buy Canada Regime

As Connecting the Dots reported last month, as part of its budget for the coming year, the Canadian government proposed a revitalized “Buy Canada” regime. In a press release issued last week, the government said that program went into effect Dec. 16, 2025. (As a reminder, as a North American trade association, the Metals Service Center Institute traditionally has opposed “Buy Canadian” or “Buy American” policies.)

The “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,” the government said.

Under the policy:

• The government will require the use of Canadian-produced steel, aluminum and wood products in large federal construction and defense projects. These materials must be manufactured or processed in Canada, the government said, not simply sold by Canadian companies. The 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.
• Federal procurements will prioritize bids that feature greater Canadian content, which includes manufacturing, research and development, and other economic activities that occur domestically.
• Priority will be given to Canadian businesses and Canadian content for major federal procurements. This policy was to be applied immediately to large, strategic procurements valued at $25 million and more. It will expand to contracts valued at $5 million and above by spring 2026.

The policy applies to federal departments and agencies, as well as federal grants and contributions programs, and will be extended, where possible the government said, to Crown corporations and their subsidiaries.

The government also promised to roll out additional measures in spring 2026.