# Government of Canada Implements Buy Canadian Policy

The Government of Canada has implemented a "Buy Canadian" procurement policy requiring federal departments to prioritize Canadian suppliers for strategic contracts valued at $5 million or more. Departments may seek exemptions if sourcing from Canadian suppliers increases costs by 25% or more, or in cases of insufficient supply, public interest considerations, or critical defense and national security delays. This policy mandates documented market analysis to justify exemptions on a case-by-case basis.

- **Why this matters:** Procurement professionals must incorporate Canadian sourcing preferences into contract planning and evaluation for high-value strategic procurements.
- Departments should prepare to conduct thorough market analyses to support exemption requests when Canadian sourcing is cost-prohibitive or supply-limited.
- Contractors and suppliers should assess opportunities to qualify as Canadian sources to align with federal procurement priorities.
- This policy may influence bidding strategies and supply chain decisions for contracts exceeding $5 million within the Canadian federal government.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 23, 2026

### Government Entities
- Government of Canada

### Sources
- [Carney's ‘Buy Canadian’ policy lets departments seek an exemption when Canadian sourcing costs 25% more - Rebel News](https://www.rebelnews.com/carney_s_buy_canadian_policy_lets_departments_seek_an_exemption_when_canadian_sourcing_costs_25_more) - rebelnews.com