Fact-Check: Mark Carney's Promise to Implement a Made-in-Canada Procurement Strategy Prioritizing Domestic Suppliers
Overview of the Promise
During the 2025 federal election campaign, Liberal Leader Mark Carney pledged to deploy a made-in-Canada procurement strategy. This strategy aimed to prioritize Canadian suppliers and supply chains whenever possible, limit foreign bidders to only those opportunities agreed upon in Canada's Free Trade Agreements, emphasize Canadian contractors in defence procurement including the aerospace industry, and encourage Crown Corporations like VIA Rail to adopt similar standards for major capital acquisitions.
Actions Taken by the Carney Government
Following his election victory and assumption of office as Prime Minister in May 2025, Mark Carney's government made several announcements related to this promise. In June 2025, the government unveiled plans to increase defence spending by over $9 billion in the current fiscal year, with a focus on accelerating investments in the Canadian Armed Forces and prioritizing domestic industry involvement. This included commitments to revamp the defence procurement process to reduce reliance on U.S. contractors and boost Canadian research and manufacturing.
The government proposed the creation of a centralized defence procurement agency to streamline purchases and ensure prioritization of Canadian suppliers. This agency was framed as a way to speed up acquisitions while adhering to free trade obligations, limiting foreign bids accordingly. Official statements emphasized building up domestic capabilities in defence and aerospace, aligning with the promise's focus on these sectors.
Regarding Crown Corporations, there have been encouragements for entities like VIA Rail to align their major capital projects with the made-in-Canada approach, though specific directives or changes in their procurement policies have been outlined in broader industrial strategy updates announced in August 2025.
Legislation Proposed or Passed
As of September 1, 2025, no specific standalone legislation has been passed to enshrine the made-in-Canada procurement strategy into law. However, the government has integrated elements of this promise into broader defence and industrial policy frameworks. In June 2025, announcements included plans for regulatory changes under existing acts like the Defence Production Act to facilitate prioritized procurement. Budgetary measures in the 2025 fiscal plan allocated funds for these initiatives, but full legislative backing, such as a new bill to establish the procurement agency, remains pending in Parliament. Discussions in policy documents suggest potential amendments to trade-related laws to enforce limits on foreign bidders, but these have not yet been tabled or voted on.
Progress on Specific Points
On prioritizing Canadian suppliers and supply chains: Government announcements have highlighted a shift toward domestic sourcing in defence contracts, with initial steps like funding allocations for Canadian firms. However, experts note that actual contract awards are still in early stages, and full implementation is in progress.
Regarding limiting foreign bidders to Free Trade Agreement commitments: The proposed procurement agency aims to enforce this by restricting bids, but without enacted legislation, this aspect is in progress, with reliance on existing trade rules.
For prioritizing Canadian contractors in defence procurement, including aerospace: The government has committed to reviewing deals like the F-35 purchase for potential adjustments favoring Canadian industry. Investments in domestic research and manufacturing have been announced, but major procurements remain under negotiation, making this in progress.
On encouraging Crown Corporations like VIA Rail: Guidelines have been issued to promote Canadian standards in acquisitions, but there is no binding requirement yet, indicating this is in progress.
Challenges and Path Forward
To consider this promise kept, the government would need to fully implement the strategy, including passing enabling legislation, establishing the procurement agency, awarding a significant portion of contracts to Canadian suppliers, and demonstrating compliance by Crown Corporations through completed projects. This could involve tabling and passing a dedicated bill in Parliament, finalizing the agency by the end of 2025, and reporting on procurement outcomes showing reduced foreign reliance.
The promise risks being broken if key elements fail to materialize, such as if legislation stalls due to opposition, defence spending increases do not translate to domestic prioritization amid expert skepticism about feasibility, or if international pressures lead to continued dependence on foreign suppliers beyond FTA limits. Delays in agency creation or lack of enforcement for Crown Corporations could also contribute to this outcome.
Overall Status
This promise is in progress.
Sources
- Outlet: CTV News, Article: Canada election: Mark Carney promises defence procurement revamp, URL: https://www.ctvnews.ca/federal-election-2025/article/carney-promises-to-revamp-defence-procurement-boost-domestic-research/
- Outlet: Liberal Party of Canada, Article: Mark Carney announces further measures to secure Canadian sovereignty, URL: https://liberal.ca/mark-carney-announces-further-measures-to-secure-canadian-sovereignty/
- Outlet: POLITICO, Article: Mark Carney unveils a plan to Trump-proof Canada, URL: https://www.politico.com/news/2025/04/19/mark-carney-unveils-plan-to-trump-proof-canada-00299654
- Outlet: CBC News, Article: Carney wants to spend an extra $9B on defence by April. Is that possible?, URL: https://www.cbc.ca/news/politics/carney-defence-spending-1.7598150
- Outlet: CBC News, Article: Liberals revive campaign pitch for centralized military procurement agency, URL: https://www.cbc.ca/news/politics/liberals-pitch-procurement-agency-1.7509906
- Outlet: The Globe and Mail, Article: Carney promises agency to speed up defence purchasing and prioritize Canadian equipment, materials, URL: https://www.theglobeandmail.com/politics/article-carney-promises-agency-to-speed-up-defence-purchasing-and-prioritize/
- Outlet: Canada.ca, Article: Canada’s new government is rebuilding, rearming, and reinvesting in the Canadian Armed Forces, URL: https://www.canada.ca/en/department-national-defence/news/2025/06/canadas-new-government-is-rebuilding-rearming-and-reinvesting-in-the-canadian-armed-forces.html
- Outlet: Prime Minister of Canada, Article: Canada’s new government is rebuilding, rearming, and reinvesting in the Canadian Armed Forces, URL: https://www.pm.gc.ca/en/news/news-releases/2025/06/09/canadas-new-government-rebuilding-rearming-and-reinvesting-canadian
- Outlet: Bloomberg, Article: Carney Proposes to Speed Up Canada’s Rearmament, Looking to Europe, URL: https://www.bloomberg.com/news/articles/2025-04-14/carney-proposes-to-speed-up-canada-s-rearmament-looking-to-europe
- Outlet: The Star, Article: Carney promises to revamp defence procurement, boost domestic research, URL: https://www.thestar.com/politics/federal-elections/carney-promises-to-revamp-defence-procurement-boost-domestic-research/article_c26f6586-5edc-537e-9811-aae1c4985815.html
