From Reliance to Resilience: Budget 2025 delivers new investments to Buy Canadian and build Canada's industrial strength
CLYDE RIVER, PE, Nov. 12, 2025 /CNW/ - The Government of Canada is building the strongest economy in the G7 – an economy rooted in Canadian workers, Canadian materials, and Canadian innovation. As global trade becomes more uncertain, we are choosing to build our strength at home.
Last September, the Prime Minister, Mark Carney, announced a new Buy Canadian Policy, moving the federal government from "best efforts" to a clear objective to buy Canadian. The policy will ensure that government procurement focuses on made-in-Canada products, strengthens domestic supply chains, supports local jobs, and keeps public investment circulating in our economy.
On Monday November 10, 2025, the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food outlined nearly $186 million in new funding from Budget 2025 to fully implement the Buy Canadian Policy. The funding will ensure the policy delivers lasting results for Canadian businesses and workers – building capacity and increasing competition at home, streamlining processes, and better supporting small and medium Canadian businesses to help them access opportunities more easily.
As part of this initiative, the Minister of Agriculture and Agri-Food spent time visiting MacPhee's Meats in Clyde River, Prince Edward Island. During the visit, he had an opportunity to meet with Russ Mallard, Chair of the Canadian Meat Council, and the owners of MacPhee's Meats, Mervin MacPhee, Lindsay MacPhee, and Ryan MacPhee. This family-run business plays a vital role in the community, connecting local farmers with consumers and supporting the region's agricultural sector. MacPhee's Meats exemplifies the strength of local food systems and the importance of supporting rural Canadian businesses.
Through Budget 2025, the government proposes to:
- Provide $98.2 million over five years, starting in 2026-27, and $9.8 million ongoing, to Public Services and Procurement Canada, as well as $7.7 million over three years to the Treasury Board Secretariat, to implement the Buy Canadian Policy across all federal departments, agencies, and Crown corporations – such as VIA Rail and Alto, which is responsible for Canada's new high-speed railway between Toronto and Québec City.
- Provide $79.9 million over five years, starting in 2026–2027, to Innovation, Science and Economic Development Canada to support the previously announced Small and Medium Business Procurement Program. The implementation of the Buy Canadian Policy, coupled with this support, will spur domestic demand and create opportunities for economic growth in areas of strategic interest to the country. This will ensure that Canadian small and medium-sized enterprises (SMEs) can access federal contracts and compete on a level playing field.
The policy will enter into force this month and initially apply to defence, construction, and other strategic procurements, with full implementation by spring 2026. It will extend to infrastructure spending and other federal funding streams, ensuring that as much as $70 billion in additional public investment supports Canadian-made products and services.
The government is on a mission to build Canada strong through major infrastructure projects, a modern defence industry, and millions more homes. Through the new Buy Canadian Policy, we are making government a force for nation-building – becoming our own best customer, protecting Canadian businesses, and empowering our workers with high-paying careers that build prosperity at home.
Quotes
"Our government is putting Canadian farmers, processors, and agri-businesses at the heart of our nation-building efforts. Every time government invests, we'll do so in a way that strengthens local supply chains and keeps more value here at home. When we buy Canadian, we build a stronger, more secure food system for everyone."
- The Honourable Heath MacDonald, Minister of Agriculture and Agri-Food
Quick facts
- The Buy Canadian Policy was first announced on September 5, 2025, as part of a broader suite of strategic measures to support Canadian workers and businesses in sectors most impacted by U.S. tariffs and trade disruptions.
- As part of that announcement, the government committed to setting up a Small and Medium Business Procurement Program to help Canadian SMEs access federal procurement opportunities.
- The Buy Canadian Policy will initially focus on Canadian steel, wood products, and aluminum, as pillars of Canada's industrial base, with flexibility to add other materials over time. Incentives for Canadian suppliers and Canadian content will also apply to strategic procurements to strengthen Canadian participation.
Associated links
- Budget 2025
- Buy Canadian - Canada.ca
- Prime Minister Carney launches new measures to protect, build, and transform Canadian strategic industries | Prime Minister of Canada
- Prime Minister Carney announces new measures to transform Canada's softwood lumber industry | Prime Minister of Canada
- Prime Minister Carney announces new measures to protect and strengthen Canada's steel industry | Prime Minister of Canada
- Canada's new government implements Interim Reciprocal Procurement to protect Canadian businesses from unfair trade practices - Canada.ca
- Government of Canada Invites Canadians and Suppliers to Help Shape the Future of Federal Procurement - Canada.ca
- Get assistance with procurement - Canada.ca
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SOURCE Agriculture and Agri-Food Canada