💰 Commentary: Is Carney’s 'Buy Canadian' Plan a Good One?
Sept 25, 2025
The Federal government's upcoming 'Buy Canadian' plan would require federal departments, agencies and Crown corporations to buy Canadian products and services across procurement activities — an estimated 13% of Canada’s GDP. It also envisages extending local-content requirements to infrastructure grants, contributions and loans, pressuring provinces and municipalities to follow suit.
Writing in the Financial Post, columnist Terence Corcoran argues that this procurement policy actually mimics U.S. protectionism and could inflate costs for public works (Financial Post). Corcoran critiqued the absence of cost estimates and cautioned that mandatory domestic sourcing could slow projects and inflate budgets. Moreover, the heavy-handed procurement rules could hurt competitiveness and spark retaliation from trading partners.
Our Take
We are, generally, in favour of a 'Buy Canadian' procurement strategy - but the commentary does offer some important counterpoints for consideration. Forcing domestic vendors as an absolute requirement risks procuring more expensive, less effective goods and services, which can have a detrimental long-term effect. The program thus requires flexibility, to prefer Canadian vendors when they exist, and to be realistic about foreign procurement when it is necessary. Government training, grants and subsidies to help Canadian vendors gain a competitive foothold could also be a strong component of a comprehensive long-term strategy.
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