Most Buy Canadian contracts have gone to foreign-owned companies, prompting debate over how Ottawa defines a Canadian supplier.

When Ottawa introduced its Buy Canadian procurement policy, many Canadians likely assumed it meant government contracts would mainly go to Canadian-owned businesses.

A closer look at the first round of contracts tells a different story.

An analysis by The Logic found that more than 70 per cent of federal contracts awarded under the policy between December 2025 and June 2026 went to companies ultimately owned outside Canada. Of the first 14 contracts examined, only four were awarded to companies headquartered in Canada. The rest went to Canadian subsidiaries of multinational corporations, including several pharmaceutical companies.

The findings have sparked questions about what the federal government considers a "Canadian" supplier.

Under the current policy, a company does not have to be Canadian-owned or headquartered in Canada to qualify. Instead, businesses with significant operations in Canada may be eligible to bid on contracts, even if their parent company is based in another country.

That means a multinational company with Canadian employees, offices or manufacturing facilities can compete alongside Canadian-owned businesses for federal work.

The federal government argues those companies still support the Canadian economy by creating jobs, paying taxes and investing in local communities.

Critics, however, say ownership still matters. They argue that while Canadians may benefit from local jobs, a share of the profits ultimately leaves the country and major business decisions are often made elsewhere. Some have also questioned whether the phrase "Buy Canadian" gives Canadians the impression that contracts will go primarily to Canadian-owned businesses.

Part of the reason for the policy is Canada's international trade agreements.

Under agreements such as CETA, the CPTPP and the World Trade Organization's Government Procurement Agreement, Canada is required to allow qualified foreign suppliers to compete for many government contracts above certain dollar values. Those agreements limit how much Ottawa can favour Canadian-owned companies.

Instead of focusing on ownership, the Buy Canadian policy gives preference where trade rules allow and considers factors such as Canadian jobs, economic benefits and domestic operations.

Earlier this month, the federal government expanded the program by lowering the threshold at which Buy Canadian measures apply from $25 million to $5 million. Ottawa also announced plans to simplify the bidding process to help more small Canadian businesses compete for federal contracts.

The discussion now comes down to expectations.

Most Canadians would likely assume that a program called Buy Canadian means taxpayer dollars are going first to Canadian-owned companies. The current policy uses a much broader definition, allowing foreign-owned businesses with Canadian operations to qualify as Canadian suppliers.

As the program expands, Canadians may ultimately decide whether supporting jobs in Canada is enough, or whether ownership should play a larger role in determining who receives government contracts funded by taxpayers.