Ontario Government Unveils Urgent ‘Buy Ontario’ Legislation

UPDATE: The Ontario government has just announced groundbreaking legislation aimed at prioritizing local goods and services, dubbed the Buy Ontario Act. This new measure, revealed on October 26, 2023, mandates that all public-sector organizations, including municipalities and agencies, prioritize Ontario-made products first, followed by Canadian suppliers.

This urgent initiative comes as Ontario faces potential economic challenges, including the alarming forecast of 68,000 job losses this year due to rising U.S. tariffs. Speaking at a press conference in Toronto, Ontario’s Minister of Public and Business Service Delivery, Stephen Crawford, emphasized the importance of utilizing the public sector’s purchasing power to bolster local businesses and safeguard jobs.

“It’s about using the public sector’s buying power to back businesses and create jobs in our own backyard,” Crawford stated, highlighting the initiative’s focus on keeping public-sector dollars circulating within Ontario and Canada.

The proposed legislation outlines strict requirements for public-sector organizations on how to prioritize Ontario goods and services in vendor contracts. It also includes compliance measures, with serious consequences for non-compliance that could involve fines, holdbacks, or barring vendors from future procurement opportunities.

In a proactive step, the government is working to compile vendor lists of Ontario and Canadian suppliers to streamline the procurement process for provincial infrastructure projects. However, the legislation will still allow procurement from outside the country when Ontario or Canadian options are not available at a reasonable cost or timeframe, ensuring flexibility in critical situations.

This announcement follows a recent agreement signed by all provinces, territories, and the federal government, aimed at facilitating the trade of various goods across Canada, effective next month. This agreement notably excludes food and alcohol but encompasses a wide range of manufacturing and industrial products, including vehicles.

As Ontario navigates a challenging economic landscape, the immediate impact of this legislation could be profound. By prioritizing local suppliers, the government aims to stimulate growth and offset the detrimental effects of the trade war with the U.S.

With public-sector contracts accounting for significant spending, the urgency of this initiative cannot be overstated. As the Ontario government moves forward with the Buy Ontario Act, all eyes will be on its implementation and the anticipated effects on employment and the local economy.

Stay tuned for further updates as this developing story unfolds and impacts every Ontarian.