Despite Prime Minister Mark Carney’s repeated vows to prioritise domestic procurement, new analysis reveals that American-controlled corporations have secured over $7.8 billion in federal contracts since he assumed office.
The findings, based on a comprehensive review of government procurement data by the Toronto Star, paint a complex picture of Canada’s economic sovereignty ambitions. While the Carney government has awarded $25 billion in contracts between March 2025 and July 2026, a significant portion has flowed to US-based multinationals — raising questions about the effectiveness of Canada’s Buy Canadian policy.
The Scale of US Contracting Under Carney
Of the total $25 billion in federal contracts awarded during Carney’s first 16 months in office, approximately $14.9 billion went to Canadian companies, while $7.8 billion flowed to American-controlled corporations. This represents a notable shift from the preceding 16-month period, where only one-fifth of contract spending went south of the border. Under Carney’s leadership, that figure has risen to nearly one-third.
The analysis highlights a critical gap in how federal procurement data is reported. Standard databases do not distinguish between homegrown Canadian firms and locally incorporated subsidiaries of foreign companies. This means major US brands like defence contractor Lockheed Martin and tech giant Amazon — which received around $49 million in contracts — often appear as Canadian entities in official records.
To circumvent this limitation, the Star cross-referenced procurement data with the federal government’s Inter-corporate Ownership (ICO) review index, which tracks the “country of control” for over 50,000 companies. Additional verification came from US Securities and Exchange Commission filings, company websites, and other public records.
Policy Ambitions vs. Procurement Reality
The discrepancy between rhetoric and results underscores the challenges facing Carney’s signature economic nationalist agenda. The Prime Minister has consistently emphasised the importance of building Canadian supply chains and reducing dependence on the United States. His government formally launched the Buy Canadian Policy in December 2025, designed to give “priority to Canadian businesses and Canadian-made content for large federal purchases.”
However, the policy’s impact appears limited so far. Government data shows that 34 contracts valued at $1.5 billion have been awarded under the new framework since its implementation. Public Services and Procurement Canada did not respond to specific inquiries about the proportion of spending allocated to US-controlled companies.
A spokesperson for the department, Jean-François Létourneau, stated that the government “continues to take action to increase domestic participation, strengthen Canadian supply chains, and support Canadian workers, businesses, and communities.” The Prime Minister’s Office declined to provide comment on the Star’s findings.
Military Procurement Sparks Controversy
One area where the tension between Buy Canadian principles and procurement decisions has become particularly pronounced is defence spending. Canada’s secretary of state for defence procurement recently defended a controversial decision to exclude US bidders from a $4.9 billion army vehicle contract — a move that directly contradicts the broader trend of awarding contracts to American firms.
The restricted tender calls for at least 1,600 new light utility vehicles, with officials arguing that the streamlined process will better serve military needs. However, critics question why similar urgency and protectionist measures aren’t applied across all federal procurement categories.
“We’re essentially cherry-picking when it comes to economic sovereignty,” said one parliamentary observer. “The government talks about reducing foreign dependency, yet continues to funnel billions to US corporations across virtually every sector.”
Broader Implications for Economic Independence
The data reveals a fundamental contradiction in Carney’s approach to economic policy. On one hand, he has positioned himself as a champion of Canadian independence, particularly in light of evolving trade dynamics with the United States. On the other, his government’s procurement practices suggest continued reliance on American capital and expertise.
This pattern extends beyond traditional sectors like defence and technology. Federal contracts span everything from cloud computing services to office furniture, with US companies maintaining a strong presence across the board. The cumulative effect undermines the government’s stated goal of building a more self-reliant Canadian economy.
Economic analysts note that disentangling from established supply chains takes time, and some level of foreign involvement may be unavoidable. However, they argue that the current trajectory suggests the Buy Canadian initiative lacks the teeth necessary to achieve meaningful change.
Why it Matters
These findings strike at the heart of a fundamental question facing Canadian democracy: Can the country truly maintain its sovereignty while remaining economically intertwined with its largest trading partner? The gap between Carney’s ambitious promises and procurement realities risks eroding public trust in his government’s ability to deliver on core economic nationalist pledges. As geopolitical tensions reshape North American relations, the extent to which Canadian taxpayer dollars support domestic industry versus foreign corporations will increasingly define the nation’s path toward genuine economic independence.
