The Reality Behind Buy Canadian

With trade tensions escalating, "Buy Canadian" has become the procurement rallying cry across every level of government. But what does the data actually tell us about Canadian procurement, and what does "Canadian" even mean? This week, we dig beneath the political rhetoric to give you the real story and actionable insights.

Part 1: The Numbers Don't Lie - Procurement Data Reality Check

Country Breakdown of Canadian Government Contracts:

What It Means For You:

• Canadian-labeled companies already hold 82% of our total contract value and 87% of all contracts by number

• USA accounts for only 5% of procurement spending—much less than political rhetoric suggests

• The real story isn't about contract numbers but about ownership and strategic sectors

Between Us: The data suggests we're already predominantly "buying Canadian" on paper—but a closer look reveals a more complex reality.

Part 2: Wave of Protectionist Procurement Policies

Over the past two months, we've witnessed unprecedented policy shifts across all levels of government, with explicit protectionist measures targeting foreign (particularly U.S.) suppliers:

Municipal Level:

• City of Brampton (March 3, 2025): Implemented 'Made in Canada' policy that outright bans U.S.-based companies from bidding

• City of Vaughan (March 4, 2025): Council approved a procurement strategy banning U.S. suppliers and prioritizing Canadian goods

• City of Barrie (March 4, 2025): Mayor issued a directive banning contracts with U.S. firms and removing them from vendor lists

Provincial Level:

• Alberta (March 3, 2025): Launched "Buy Alberta/Canada" approach that favors local vendors and excludes U.S. suppliers

• Ontario (March 4, 2025): Implemented Procurement Restriction Policy prohibiting awards to U.S.-based businesses

• British Columbia (March 4, 2025): Announced prioritization of Canadian products in procurement and even removed U.S. liquor from provincial stores

Federal Level:

• While less explicitly protectionist, the federal government has been methodically removing trade barriers within Canada:

  • Removed 17 federal CFTA exceptions in July 2024

  • Removed 20 more CFTA exceptions in February 2025

  • Updated trade agreement thresholds for 2024-2025

Our Take: These policy shifts represent the most aggressive protectionist stance in Canadian procurement since the early 1970s, creating a vastly different landscape than existed just months ago. However, these policies may conflict with Canada's trade obligations under agreements like CUSMA, raising questions about their legal sustainability.

Part 3: Canadian Name ≠ Canadian Ownership

Top 10 Vendors by Contract Value:

Our Take: Only 3 of the top 10 vendors are actually Canadian-owned companies. The others are subsidiaries of American, British, or European firms that have established Canadian operations. The maple leaf on the door doesn't necessarily mean Canadian ownership behind it.

Part 4: What We're Buying From Foreign Companies

Top Categories by Contract Value:

Pro Tip: Our biggest procurement dollars are flowing to foreign companies in specialized sectors where Canada hasn't yet developed competitive alternatives. This is why the federal government launched initiatives like INSAT's $350 million mandate to build domestic aerospace capacity.

Part 5: "Canadian" Means Different Things in Different Places

Key Definitions Across Jurisdictions:

Between Us: The definition patchwork reveals a fundamental problem: we can't consistently define what "Canadian" means in procurement. Is it ownership? Location? Labor content? Supply chain? Without clarity, "Buy Canadian" remains more slogan than strategy.

Your Procurement Action Plan

1. Document Every Canadian Element: With definitions varying wildly across jurisdictions, maintain comprehensive records of your Canadian attributes—ownership structure, employee residency, physical locations, R&D activities, and supply chain percentages.

2. Consider Consortium Strategies: SkyAlyne's success ($11.2B contract) demonstrates how Canadian companies can partner to achieve the scale needed for major contracts. Look for similar strategic partnerships.

3. Target Capability Gaps: Rather than competing in crowded markets, position for sectors where Canada currently lacks domestic capacity but is actively investing in development (aerospace, defense, specialized technology).

4. Prepare For More Complexity: Government procurement definitions of "Canadian content" will inevitably become more detailed. Start preparing now for more rigorous documentation requirements.

5. Tailor Approaches By Jurisdiction: What qualifies as "Canadian" federally may not meet Ontario's requirements. Customize your positioning for each target market.

The Bottom Line

The procurement data shows that "Buy Canadian" sounds simple but isn't. Truly Canadian-owned companies compete successfully alongside Canadian subsidiaries of global firms. Both create jobs, but with different implications for long-term capability development.

The real opportunity isn't in simply applying "Canadian" labels to existing contracts but in strategically developing domestic capabilities in high-value sectors where we're currently dependent on foreign suppliers.

As government inevitably creates what will likely be a 200-page definition of "Canadian content," remember that the firms succeeding today—whether Canadian-owned like CAE or Canadian subsidiaries like Bell Textron—are those delivering value rather than just waving the maple leaf.

The procurement game is changing, but excellence and capability will still win contracts, regardless of how many bureaucrats it takes to define "Canadian."

Publicus helps government contractors find, qualify, and win more contracts with less effort. Our AI-powered platform monitors every opportunity across all government levels, so you never miss a relevant RFP again.