What is the federal Buy Canadian Policy?

The Buy Canadian Policy is a framework of federal procurement policies that took effect on December 16, 2025. It includes rules on Canadian materials in major construction and defence projects, on prioritizing Canadian suppliers and Canadian content in strategic procurements, and on reciprocal procurement with countries that open their own bids to Canada. The contracting authority applies it and decides.

Last updated: September 18, 2026

What the framework covers

CanadaBuys, the federal procurement site, publishes the framework alongside its component policies: a policy on Canadian materials in major construction and defence projects, a policy on prioritizing Canadian suppliers and Canadian content in strategic federal procurements, and a policy on reciprocal procurement, which can limit bidding to suppliers from countries that open their own procurement to Canadian suppliers.

Who it applies to, and when

The Canadian suppliers and content policy applies to competitive strategic procurements valued at $25 million and up published from December 16, 2025, and $5 million and up published from June 15, 2026. Departments are encouraged to apply the same approach below those thresholds, but are not required to.

How it defines a Canadian supplier and Canadian content

A Canadian supplier needs a permanent, named place of business in Canada, must be registered and file taxes here, must have staff or day-to-day operations here, and cannot subcontract in a way that leaves minimal value added in Canada. Canadian content includes the value produced in Canada plus Canadian costs for things like customization, installation and after-sales service. Full detail: Canadian content in procurement.

This is not the same test as a product label

A “Made in Canada” label is assessed against the Competition Bureau's 51% direct-cost threshold. The Buy Canadian Policy assesses a “Canadian good” against CUSMA rules of origin instead. A product can pass one test and not the other.

Common questions

Does the Buy Canadian Policy apply to provincial or municipal contracts?

No. It is a federal procurement framework. Provinces, municipalities and private buyers set their own rules — see Buy Ontario Act requirements for Ontario's provincial framework.

Can suppliers outside Canada still bid on federal contracts?

For the Canadian materials policy, solicitations are open to all suppliers. For strategic procurements under the Canadian suppliers and content policy, bidding is open to Canadian suppliers and, where a trade agreement applies, to suppliers from that trading partner.