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The Ontario government announced plans to introduce legislation Thursday that would require public-sector organizations to prioritize Ontario-made goods and services first, then Canadian suppliers.
The province said the Buy Ontario Act would apply to all public-sector organizations, including municipalities, ministries, agencies, contractors and subcontractors.
The minister of public and business service delivery said the proposed legislation is a measure to protect Ontario jobs in the face of economic challenges, including U.S. tariffs.
“It’s about using the public sector’s buying power to back businesses and create jobs in our own backyard,” Stephen Crawford said at a press conference in Toronto.
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Crawford added the measure would help ensure every possible procurement dollar that can be spent in Ontario remains in the province.
“Price matters and getting the best value for our money is critical. But today, value means more than just cost,” he said. “It means keeping public-sector dollars in Ontario and across Canada.”
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If passed, the legislation would set out specific requirements for how public sectors are to prioritize Ontario goods and services in contracts with vendors. It would also have measures to ensure compliance, with penalties and consequences that could include fines, holdbacks and barring vendors from future procurement.
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The government said in a press release that it’s working to establish vendor lists of Ontario and Canadian suppliers for provincial infrastructure and procurement processes.
In cases where Ontario or Canadian goods and services can’t be procured at a reasonable cost or time frame, the policy will still allow procurement from outside the country, it said.
The announcement came after all provinces, territories and the federal government signed an agreement Wednesday intended to free up the trade of many goods across the country.
The agreement, which will take effect next month, applies to most products outside of food and alcohol, including manufacturing and industrial products, tires and vehicles.
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