Joël Lightbound – Canada’s minister of government transformation, public works, and procurement – announced that the federal government has implemented a new interim policy on reciprocal procurement, effective July 14.
“The Policy on Reciprocal Procurement will help leverage our purchasing power to support Canadian businesses and workers impacted by unjustified American tariffs,” Lightbound said in a news release from Public Services and Procurement Canada (PSPC).
The interim measure covers every federal department and agency and constitutes the first phase of Canada’s approach. This initial phase, which commenced with the release of training and tools late last month, applies the reciprocal procurement policy based on supplier location.
The interim policy can restrict suppliers in countries limiting Canadian access to their government contracts from bidding on Canadian federal contracts. It seeks to prioritize suppliers from Canada and its reliable trading partners that offer Canadian suppliers reciprocal access via trade agreements.
The federal government will implement the second phase – namely, the complete reciprocal procurement policy – down the line. The second phase will focus on applying the policy based on the origin of goods and services.
According to PSPC’s news release, through enforcing fair and reciprocal procurement access, the federal government aims to:
- safeguard Canada’s workers and businesses from unfair trade practices
- help Canadian suppliers compete in the global marketplace
- protect Canadian innovation, jobs, and financial growth
- attain the strongest economy in the G7
“The Government of Canada is committed to protecting and defending the interests of all Canadians, and will not compromise when it comes to ensuring fair market access for Canadian industry,” Lightbound said in the news release.
Policy’s background
PSPC’s news release on the reciprocal procurement policy comes as Canada’s new government negotiates a new economic and security partnership with the US.
In its news release, PSPC noted that the policy will apply to all new non-defence procurements valued at over $10,000 for the Canadian government and will not affect contracts and solicitations posted before July 14.
PSPC further noted that suppliers from non-trading-partner countries cannot access Canadian government procurements, absent the application of a valid exception under the policy.
This year, the federal government also announced that it is considering other strategies to maximize Canadian steel and aluminum use in government-funded projects, including by coordinating with the country’s provinces and territories.