09/24/2025
Buying Canadian Will Eventually Mean Paying More
Carney did not provide any data on the total value of government spending that would have to be redirected toward Canadian producers. But the impact of this aggressively nationalist plan is expected to be widespread. A commentary on the policy by lawyers at Norton Rose Fulbright ended with an alert to corporations to begin preparing now for the still-unknown details. “While time is limited, suppliers that are significantly adversely impacted should also consider communication strategies to help shape the details of the policy.”
The main impact of the policy, however, is reduced competition. Irma Shaboian at Stikeman Elliott rightly observed that the 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.”
Not surprisingly, some Canadian industries welcome the trade protectionism, in part as a counter to Trump’s protectionism. Catherine Cobden, head of the Canadian Steel Producers Association, has said the industry “has been looking for the "buy Canadian policy" for decades." The main reason why Canadians stopped buying Canadian Product was because of the cost. Retailers like Walmart and Dollarama exist because Canadians want cheap over quality.
Details are to be released with the Nov. 4 budget as part of what Carney describes as a “mission to build Canada strong through major infrastructure projects, a major defence industry and millions more homes.” But the plan extends far beyond pipelines and jet fighters. The objective, he said, is to “make sure that Canadian suppliers, and their products, are prioritized in all federal spending.”
According to OECD data, total Canadian government procurement spending accounts for 13 per cent of GDP, or about $290 billion. How much of that is on foreign goods and services is hard to tell. Presumably Canada’s army of bank and think-tank economists are hard at work evaluating Carney’s plan before the budget.
Over time, the Buy Canadian strategy will be expanded to cover “infrastructure spending, grants, contributions, loans and other federal funding streams.” There will also be a requirement that foreign companies “develop and build their products and services in Canada.”