Canadian Government Will Expand Its Buy Canada Policy

As part of its budget for the coming year, the Canadian government has proposed a revitalized “Buy Canada” regime. (As a reminder, as a North American trade association, the Metals Service Center Institute traditionally has opposed “Buy Canadian” or “Buy American” policies.)

On November 10, Minister of Industry Mélanie Joly outlined nearly $186 million in new funding to fully implement the initiative. Joly argued the “funding will ensure the policy delivers lasting results for Canadian businesses and workers — building capacity and increasing competition at home, streamlining processes, and better supporting small and medium-sized Canadian businesses to help them access opportunities more easily.” Additionally, the government said the policy is designed to ensure its procurement focus on made-in-Canada products, strengthen domestic supply chains, support local jobs, and keep public investment circulating in the Canadian economy.

More specifically, through Budget 2025, the government proposes to:

• Provide $98.2 million over five years — and $9.8 million on an ongoing basis — to Public Services and Procurement Canada, and $7.7 million over three years to the Treasury Board Secretariat, to implement the Buy Canadian Policy across all federal departments, agencies, and Crown corporations; and
• Provide $79.9 million over five years to Innovation, Science, and Economic Development Canada to support a previously announced Small and Medium Business Procurement Program.

The “Buy Canada” regime will enter into force this month and will initially apply to defense, construction, and other strategic procurements. Full implementation will come by spring 2026, Joly said.