A potential Buy Canada Act?
13 June 2025
Minister François-Philippe Champagne mentioned this week the potential creation of a “Buy Canada Act”. This future policy would aim to prioritize Canadian companies in federal procurement, as part of an industrial recovery strategy inspired by the American Buy America Act.
Objective: Strengthen the Local Economy
The government would seek to encourage local purchasing by the state, giving priority to Canadian suppliers in certain public markets. This industrial strategy would aim to:
Stimulate domestic production in strategic sectors.
Implement tools for monitoring, traceability, and transparency.
Serve as a lever for assertive economic sovereignty.
Buy Canada vs. Buy America
The Buy Canada Act would draw inspiration from the Buy America Act, in effect in the U.S. since 1933, which mandates a minimum percentage of American content in public procurement. That model has shaped American industry and reinforced national supply chains.
Canada, however, will need to navigate trade agreements such as the USMCA, which place limits on domestic preference in public procurement.
A Delicate Balance
A policy that is too rigid or protectionist could:
Hurt Canadian businesses that rely on foreign partners.
Disrupt international supply chains.
The real challenge will be to support local businesses without compromising trade commitments or the resilience of global networks.
Opportunities for Canadian Companies
If well designed, the Buy Canada Act could:
Open new market opportunities for local companies.
Offer a competitive edge to suppliers with a strong Canadian footprint.
Encourage the development of regional and resilient supply chains.
What Can Be Done Now?
For SMEs, now is the time to prepare:
Review your certification of origin.
Build new local partnerships.
Consider strategic repositioning in anticipation of future public tenders.
Would you like to take a moment to discuss this with us? Feel free to get in touch.
