U.S. flags Canada’s ‘Buy Canadian’ procurement policy as trade barrier ahead of CUSMA review

A U.S. government report has raised concerns about the Canadian government’s “Buy Canadian” policy. CTV’s Katelyn Wilson reports.

A recent U.S. government report on foreign trade is raising concerns about Canada’s “Buy Canadian” procurement policy, calling it a significant barrier to American exports ahead of a review of the Canada-U.S.-Mexico trade agreement, known as CUSMA.

The policy was introduced by the federal government in December, requiring publicly funded government contracts worth $25 million or more to prioritize Canadian products, workers and industries.

The move came as trade tensions between Canada and the United States escalated, with tariffs hitting industries including steel, aluminum and lumber.

But while the policy was designed to support Canadian businesses, American companies argue it makes it harder for them to compete for government contracts north of the border.

For some Ottawa-area shoppers, the broader trade tensions are already influencing buying habits.

“It’s about buying Canadian but frankly just not buying American,” said grocery shopper Scott Proudfoot. “We need to inflict pain on the U.S. so they can understand this kind of behaviour towards their allies is just not on.”

At Cedars and Co. Food Market, operations manager Marilyn Dib said she has seen the shift firsthand.

“It has been evolving dynamically and in fact most of our clients prefer to purchase Canadian products,” Dib said.

While consumer sentiment is one thing, the federal government’s procurement policy is drawing scrutiny in the U.S. report from the Office of the United States Trade Representative.

“I thought it was a funny one to raise given if you take a look at what exists on the U.S. side, they do have their own buy American goods when it comes to their federal procurements,” said Michelle Auger, the Canadian Federation of Independent Business’s director of trade and marketplace competitiveness.

The U.S. report also identified several other so-called trade irritants between the two countries, including restrictions on U.S. alcohol and longstanding disputes over Canada’s dairy system.

“There was a high-level meeting this week in Washington between senior officials from Canada and the United States to discuss these and other issues, so none of this is surprising to us,” said Dominic LeBlanc, Canada’s internal trade minister.

In a statement, Ontario’s finance minister’s office said: “In the face of President Trump’s tariffs taking direct aim at our economy, our government directed the LCBO to remove U.S. made alcohol from their shelves. We have been clear: until tariffs are completely removed, U.S. alcohol will remain off shelves.”

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