# Canada Favors In-Country Defence Suppliers

Canada’s rising defence spending is creating market-entry opportunities for foreign contractors, while procurement increasingly favors suppliers that build in Canada, partner with Canadian firms, or make measurable domestic investments. Companies pursuing Canadian defence work should plan early for Industrial and Technological Benefits commitments, Canadian incorporation or partnerships that support security and controlled-goods eligibility, foreign-investment review, cybersecurity certification, and Indigenous participation requirements.

- Foreign contractors should assess how they will demonstrate Canadian industrial participation, including local operations, partnerships, or domestic investment, when positioning for procurement opportunities.
- Companies should evaluate Canadian incorporation or partnership options and account for applicable security, controlled-goods, and foreign-investment review considerations.
- Cybersecurity certification and Indigenous participation requirements are additional market-entry considerations for contractors planning bids in Canada.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** November 02, 2026

### Government Entities
- Defence Investment Agency (DIA)
- Federal Contract Security Program (CSP)
- Global Affairs Canada
- Canadian Coast Guard

### Sources
- [Doing business in Canada for foreign defence contractors | Insights | MLT Aikins](https://www.mltaikins.com/insights/doing-business-in-canada-for-foreign-defence-contractors) - MLT Aikins