A federal memo shows Prime Minister Mark Carney’s Buy Canadian policy may not apply to Crown corporations purchasing goods and services outside the country, despite public claims the program would prioritize Canadian suppliers in federal spending.Blacklock's Reporter says internal records released through Access to Information indicate procurement conducted overseas could be exempt from the policy. The memo, prepared by the Department of Foreign Affairs, Trade and Development on Nov. 28, suggested the carve-out was already being considered by officials.“Early indications from the Treasury Board suggest procurement conducted outside of Canada will be excluded from the policy as part of the exceptions,” the memo stated. Officials added the department would confirm the details once the policy is finalized and publicly released.The document said Crown corporations are expected to raise concerns about how the directive would affect their operations, particularly regarding costs and administrative requirements.“Organizations will have questions on the implications of this legally binding directive,” the memo stated in reference to consultations with Export Development Canada and the Canadian Commercial Corporation. “In addition, we anticipate Export Development and CCC may identify potential challenges with applying the Buy Canadian policy outside of Canada.”.Officials warned the requirement could create additional expenses and complicate procurement processes for the Crown corporations, whose overseas activities often require foreign suppliers.“Export Development Canada and the Canadian Commercial Corporation’s board of directors may raise concerns about the Buy Canadian policy as it could affect their existing processes and increase administrative expenses,” the memo said.The document noted procurement spending accounts for roughly 25% of the annual administrative budgets of the two Crown corporations — about $100 million for Export Development Canada and $10 million for the Canadian Commercial Corporation.Carney first announced the Buy Canadian initiative on Sept. 5, saying the policy would strengthen domestic industry.“Canada is on a mission to build Canada strong,” the Prime Minister’s Office said at the time, adding Canadian suppliers and products would be prioritized in federal spending.Speaking to reporters on Nov. 26, Carney described the plan as sweeping in scope, saying Canadian materials such as steel and lumber would be prioritized in federal contracts worth more than $25 million and in infrastructure funding programs..But the internal memo indicates the policy could face practical limitations once applied to Crown corporations that operate internationally.Finance Minister François-Philippe Champagne also promoted the policy publicly without mentioning potential exemptions.“The thing that matters most to us is to really implement our Buy Canadian policy, you know, at the federal, provincial and municipal level,” Champagne told reporters Dec. 1. “Even us, as consumers, our biggest power is our purchasing power.”He reiterated the message again on Feb. 25, saying Canadians should focus on buying domestic goods.“The Buy Canadian policy: There is so much we can do for ourselves,” Champagne said. “That’s what we are focusing on.”
