On September 5, 2025, the federal government announced that it will introduce a Buy Canadian policy that will require federal purchases to prioritize Canadian suppliers, mandate local content where domestic suppliers are unavailable and provide a roadmap for provinces and municipalities to apply and follow. It reflects one aspect of Prime Minister Mark Carney’s proposed multi-faceted Buy Canadian strategy, which could see more stringent product-origin labelling requirements, and support for Competition Bureau enforcement. Looking ahead, this broader Buy Canadian strategy is expected to clarify the requirements for origin claims (such as through potential new labelling rules), creating compliance risks for unsupported claims but also opportunities for businesses to differentiate themselves in the marketplace.
The federal government’s new Buy Canadian policy marks a significant change in procurement priorities, shifting from a focus solely on price and efficiency to a commitment that prioritizes Canadian suppliers and industries. The policy leverages government purchasing power to support Canadian workers, businesses and supply chains while elevating the economic and commercial value of buying Canadian.
Key elements of the new Buy Canadian policy announced on September 5 include:
- Federal procurement rules. The federal government will introduce new measures by November 2025 that will prioritize Canadian suppliers and their products in all federal spending, requiring suppliers to source key materials from Canadian companies in defence and construction procurements exceeding a certain threshold. While Canadian steel and softwood lumber will be the initial focus of the policy, there will be flexibility for the government to include additional domestic materials over time.
- Local content safeguards. The federal government will implement new local content requirements so that strategic procurements by foreign suppliers, which cannot be completed by Canadian suppliers, will still require the use of Canadian content.
- Broader reach. The federal government will formalize and extend Buy Canadian obligations for infrastructure spending, grants, contributions, loans and other federal funding streams that could require third parties using federal funding to procure goods and services from Canadian suppliers or develop and build their products and services in Canada. The Buy Canadian mandate will also apply to all federal organizations, including federal agencies and crown corporations.
- Roadmap for provinces and municipalities. The federal government will provide a roadmap for provinces and municipalities to apply similar standards to their own procurement, potentially harmonizing an approach to defined terms, such as “Canadian supplier”.
By making Canadian origin a government priority, Canadian-made products (and those made with Canadian inputs) become a key point of differentiation in procurement and in the marketplace – especially for businesses that want to highlight alignment with Buy Canadian values, from supporting local businesses and jobs to “going green” by sourcing locally and contributing to a reduced carbon footprint.
Implications for Marketing and Advertising Claims
The federal government’s new policy is part of a broader Buy Canadian strategy that the current government campaigned on. It includes a promise to make it easy to identify Canadian products by tightening origin of product labelling, alongside support to help manufacturers adapt and for the Competition Bureau to enforce the new requirements.
While there have been no formal announcements about updating product labelling rules, the government’s commitments raise important considerations for businesses and their marketing practices:
- Potential new, standardized product labelling rules. The labelling of non-food products is administered and enforced by the Competition Bureau primarily under the Consumer Packaging and Labelling Act (CPLA). The Canadian Food Inspection Agency (CFIA) is currently responsible for enforcing Canada’s food legislation, including labelling, under the Food and Drugs Act and Safe Food for Canadians Act and their regulations. The scope of any potential changes remains to be seen, but a move toward standardized product labelling would provide greater predictability and certainty to businesses in how they make and substantiate origin claims, while also increasing transparency for consumers.
- Heightened ‘maple-washing’ risks. With greater emphasis on Canadian origin and potentially more stringent labelling rules on the horizon, origin claims and Canadian branding will continue to face closer scrutiny. Businesses will also need to ensure their claims are carefully framed and substantiated as demand for products and services reflecting Buy Canadian values continues to grow.
- The use of qualifying statements. For some businesses navigating complex supply chains, the Competition Bureau’s current guidance on “Made in Canada” and “Product of Canada” claims for non-food products sets requirements that may be difficult to meet or comply with. Using clarifying phrases that are limited to what can be substantiated will help businesses market their Canadian connections without making overly broad claims.
Conclusion
The federal government’s Buy Canadian strategy reflects a broader shift toward prioritizing Canadian suppliers and content across procurement, funding programs, and potentially new labelling standards.
For businesses, this means monitoring forthcoming procurement rules, preparing for possible changes to product labelling and recognizing that ‘made in Canada’ claims and similar branding will likely attract closer scrutiny and enforcement risk as their market appeal grows. These developments come as companies navigate a policy landscape that places greater emphasis on transparency and the economic value of Canadian sourcing.
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