Why “Made in Canada” Isn’t Always What It Seems
April 1, 2025
Walk down any grocery aisle or hardware store and you'll see labels proudly declaring products "Made in Canada." It's a phrase that evokes a sense of national pride and economic reassurance—but too often, it's a mirage. The reality behind what qualifies for this label can be far more complex, and in some cases, misleading.
The Problem with the Label
Under Canadian law, a product may be labeled “Made in Canada” if at least 51% of its total direct costs of production are incurred in Canada and the final substantial transformation takes place here. That might sound reasonable, but it allows for significant grey zones. For instance, if raw materials, parts, or components are imported from abroad but the final assembly or packaging occurs in Canada, it can still legally carry the label.
Imagine a food product with ingredients sourced from five countries, packaged in a Canadian facility—that can qualify as "Made in Canada." Or a piece of furniture manufactured in Asia but shipped here for final assembly. In these cases, the product’s true Canadian content is minimal.
Why It Matters
Consumers often seek out Canadian-made goods with the intention of supporting local jobs, reducing environmental impact through shorter supply chains, and reinvesting in their communities. But when the label masks global sourcing or foreign ownership, it misleads well-intentioned buyers.
Consider this: two products might both say “Made in Canada,” yet one is entirely Canadian-owned, employs local workers, and sources domestic materials, while the other is a multinational brand using overseas inputs and minimal Canadian labor. Should they be treated equally in your purchasing decisions?
Ownership vs. Assembly
Ownership matters. A Canadian-assembled product owned by a foreign multinational might keep a few jobs local, but the profits ultimately flow out of the country. Conversely, a Canadian-owned brand—even if some production occurs abroad—may reinvest its earnings into Canadian operations, employees, and innovation.
This is why we need a more nuanced approach to evaluating products—not just a binary label, but a spectrum of factors that influence how much economic benefit actually remains within Canada.
The CANADA Score: A More Transparent Alternative
At The CANADA List, we developed the CANADA Score—a 1-to-10 rating system that considers four main factors:
- Ownership: Is the parent company Canadian?
- Manufacturing: Is the product physically made or assembled in Canada?
- Employment: Does the company employ Canadians meaningfully?
- Sourcing: Are raw materials or components sourced domestically?
This score gives a fuller picture. A product with imported ingredients but made in a Canadian-owned factory might earn a 6 or 7. A foreign-owned item, merely packaged in Canada, might score a 2 or less. We aim to reward companies that truly contribute to the Canadian economy—not just those that pass legal technicalities.
What You Can Do
As a consumer, you can:
- Look beyond the label—research who owns the brand and where production takes place.
- Use tools like The CANADA List to identify products with meaningful Canadian impact.
- Support companies that align with your values, not just your assumptions.
The phrase “Made in Canada” should mean more than just a final packaging stop. With a bit of awareness and intention, we can make sure our money supports the communities and industries we care about most.
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