This enactment amends the Department of Public Works and Government Services Act and the Defence Production Act to provide that, in relation to the acquisition of products and services for use by government departments, preference must be given to Canadian products and services.

It also amends the Federal-Provincial Fiscal Arrangements Act to provide for a new transfer to the provinces for the purpose of giving preference to Canadian products and services.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Canadian product means a product

• (a) of which more than 50% of the total value is manufactured, produced or assembled in Canada and, in the case of an assembled product, whose final assembly is done in Canada, or

• (b) in the case of a natural resource, of which more than 50% of the total value originates in Canada; (produit canadien)

Canadian service means a service offered by

• (a) a Canadian citizen,

• (b) a permanent resident, within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act,

• (c) the Government of Canada, a provincial or local government, or a department, board or agency of that government,

• (d) a partnership, trust or joint venture in which a person, or any combination of persons referred to in paragraph (a), (b), (c) or (e), beneficially owns or controls, directly or indirectly, interests representing in value more than 50% of the total value of the assets of the partnership, trust or joint venture, as the case may be,

• (e) a Canadian corporation, or

• (f) a non-profit organization of which more than half of the members are persons referred to in paragraph (a) or (b); (service canadien)

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Canadian products and services

(1.‍1) In exercising the powers or performing the duties or functions assigned to the Minister under this or any other Act of Parliament, the Minister shall give preference to Canadian products and Canadian services, unless doing so would conflict with Canada’s obligations under an international agreement.

Canadian products and services

(2) In exercising the powers of procurement under subsection (1), the Minister shall give preference to Canadian products and Canadian services, within the meaning of section 2 of the Department of Public Works and Government Services Act, unless doing so would conflict with Canada’s obligations under an international agreement.

PART V.‍2 

Preference to Canadian Products and Services Transfer

Canadian Products and Services

Purposes

25.‍92 A Preference to Canadian Products and Services Transfer is to be provided to the provinces for the purpose of giving preference to the acquisition of Canadian products and Canadian services, within the meaning of section 2 of the Department of Public Works and Government Services Act.

Amount

25.‍93 The Preference to Canadian Products and Services Transfer is to consist of a cash contribution of $100,000 to be provided to each province for each fiscal year beginning after March 31, 2023.

Payments

Payments out of C.‍R.‍F.

25.‍94 The Minister may make payments out of the Consolidated Revenue Fund for the purpose of the transfer provided in section 25.‍93.