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In a revealing report, several Canadian federal departments have admitted to lacking a “Buy Canadian” policy prior to the mandatory implementation date announced by Prime Minister Mark Carney in September 2025. This raises questions about the effectiveness and readiness of governmental procurement strategies aimed at supporting domestic industries, particularly in light of rising tensions in international trade.
Delayed Adoption of Buy Canadian Policy
The Treasury Board of Canada Secretariat disclosed that more than half of the federal departments did not have the “Buy Canadian” policy in place until the official start date of December 16, 2025. A spokesperson clarified that while some departments began implementing the Prime Minister’s directive shortly after its announcement, the policy’s mandatory requirements only took effect in mid-December.
The “Buy Canadian” policy framework is designed to apply across all federal departments and agencies as outlined in the Financial Administration Act, including Crown corporations, which can be directed to comply through existing legislative provisions.
Prime Minister Carney’s Vision
On September 5, 2025, Prime Minister Carney introduced the “Buy Canadian” initiative, emphasising a commitment to ensuring federal procurement favours Canadian suppliers. The policy aims to bolster domestic industries, enhance employment opportunities for Canadians, and position Canada as its own best customer. In a press release, Carney stated that the initiative is a critical step toward strengthening the national economy amid challenging global trade dynamics.
A Conservative MP, Kelly Block, sought clarity on the policy’s implementation through an order of paper questions submitted on December 8, 2025. The responses, published on January 26, revealed that 21 out of 32 institutions either did not have a “Buy Canadian” policy in effect or lacked directives related to Carney’s September announcement.
Departments That Complied Early
Among the departments that did manage to implement the policy ahead of the mandatory date are:
– Department of Canadian Heritage
– Department of Employment and Social Development
– Department of Fisheries and Oceans
– Department of Health
– Department of Housing, Infrastructure and Communities
– Department of Industry
– Department of Justice
– Department of Public Works and Government Services
– Department of Transportation
– Treasury Board Secretariat
Conversely, departments such as the Canada Revenue Agency, the Economic Development Agency of Canada for the Regions of Quebec, and the Department of Foreign Affairs, Trade and Development were among those that confirmed they did not have a “Buy Canadian” policy in place by the time the inquiries were made.
The Broader Context of Trade Relations
The push for “Buy Canadian” comes against the backdrop of escalating trade tensions with the United States, especially following the imposition of tariffs by the American administration shortly after Donald Trump took office in January 2025. Recent polling data from Ipsos indicates that Canadian consumers remain committed to supporting local businesses, particularly in light of potential further tariffs, including a threatened 100 per cent tariff on Canadian imports scheduled for January 24, 2026.
The Canadian government has actively encouraged consumers to shift their purchasing habits from American products to domestic offerings, aiming to bolster local sales and mitigate the impact of U.S. tariffs on Canadian exports.
Why it Matters
The challenges faced by federal departments in implementing the “Buy Canadian” policy highlight a critical gap in the government’s ability to swiftly adapt to changing economic landscapes. As Canada navigates complex trade relationships, fostering a robust domestic market becomes essential for economic resilience. The effectiveness of such procurement policies not only affects government spending but also has far-reaching implications for job creation and national economic stability. As tensions with the U.S. persist, the success of the “Buy Canadian” initiative will be pivotal in securing a thriving domestic economy.
