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“The new ‘Buy Canadian’ policy: challenges and opportunities for Canadian and foreign companies.”
Québec, January 21, 2026 – The federal government has recently implemented a new policy giving priority to Canadian suppliers and Canadian content as part of strategic federal procurement. This initiative is part of a broader effort to strengthen economic resilience, secure supply chains, and develop domestic industrial capabilities. It will have a structuring impact on access to federal public procurement markets, for both Canadian and foreign companies.
The policy has applied since December 16, 2025 to new strategic procurements valued at $25 million or more. As of June 15, 2026, strategic procurements valued at $5 million or more will also be covered.
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Evaluation credit for Canadian suppliers: Bids from suppliers meeting the definition of a “Canadian supplier” receive a 10% reduction in their evaluated value during the assessment process, improving their competitiveness without affecting the actual bid price.
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Priority to Canadian content: Bid evaluations take into account the inclusion of Canadian goods, Canadian services, or Canadian value added, with the possibility of assigning up to 25% of the total evaluation score to these criteria.
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Advantages for Canadian Companies
For Canadian companies, the policy creates a significant competitive lever in strategic public procurement markets. The targeted calls for tenders explicitly prioritize Canadian suppliers as well as Canadian content incorporated into the goods and services offered. This approach favors companies that carry out substantial activities in Canada, particularly in manufacturing, research and development, services, and the use of a local workforce.
The policy also offers increased opportunities for Canadian small and medium-sized enterprises by reducing the intensity of international competition in certain strategic segments and by valuing integration into national supply chains.
Impact on Foreign Companies
Non-Canadian suppliers remain eligible to participate in calls for tenders, but without benefiting from the advantages associated with Canadian supplier status or Canadian content. In high-value strategic procurements, this distinction can become decisive during the evaluation of bids.
Investing in Canada to Benefit from the Policy
In this context, the new “Buy Canadian” policy constitutes a clear incentive for direct investment in Canada. Foreign companies can enhance their competitive position by establishing a meaningful presence in Canada, notably through the creation of subsidiaries, the establishment of production or R&D activities, or the formation of partnerships and joint ventures with Canadian companies.
Conclusion
The new “Buy Canadian” policy marks a significant evolution in the framework governing strategic federal procurement. It represents a growth opportunity for Canadian companies and, at the same time, a structuring opportunity for foreign companies willing to invest in Canada. In both cases, rigorous legal and strategic planning is essential in order to maximize the benefits offered by this new regulatory framework.
The GBV Team is able to advise and support companies from Québec, Canada, and abroad in exploring the opportunities arising from the new “Buy Canadian” policy.
Me Charles-Francis Roy
Me Arnaud Hamelin-Lachapelle
DISCLAIMER: This publication is intended to provide general information on legal issues and developments as of the date indicated. The information provided does not constitute legal advice and should not be treated or relied upon as such.
About
GBV lawyers
Founded in Quebec in 1998 by Me Marc-André Gravel, GBV Lawyers is a Quebec leader in the legal field. The firm offers cutting-edge legal services, particularly in the areas of contract negotiation and transnational trade. He also offers strategic advisory services during negotiations and representations involving the State and its components. GBV Avocats serves business clients, both locally and internationally, from its offices in Quebec, Lévis, Trois-Rivières Montreal and Sherbrooke.