Ontario Premier Doug Ford often extols the virtues of free and fair trade, yet his government's actions tell a different story. Despite initially championing open markets during the trade conflict with the U.S. administration, the Ford government has increasingly adopted protectionist measures, notably the Buy Ontario Act, 2025.
The Buy Ontario Act and Its Implications
The legislation mandates that public-sector organizations prioritize goods and services produced in Ontario. If unavailable, preference is given to other Canadian suppliers. Only when neither Ontarian nor Canadian options exist can foreign sources be considered. While strengthening domestic supply chains is a laudable goal, the act's rigid application could have severe repercussions, particularly in healthcare.
Healthcare Sector at Risk
Forcing hospitals to buy Ontario-made products may lead to purchasing inferior or more expensive equipment, escalating costs at a time when Finance Minister Peter Bethlenfalvy deems them unsustainable. Moreover, medical devices partially manufactured in Ontario may not qualify under the act, creating confusion. Foreign companies, including U.S. firms, must employ at least 250 workers in Ontario to qualify, excluding many medical device manufacturers with a local presence. This reduces incentives for such companies to maintain operations in the province.
Canada already faces critical medical device shortages, with a 19% decrease in shortages in 2024-25, yet still ranking highest globally according to research by Anne Snowdon of the Supply Chain Advancement Network in Health. Restricting hospital procurement options exacerbates these shortages, leading to inferior equipment, higher costs, and increased bureaucracy.
Broader Trade Consequences
The protectionist stance also jeopardizes trade negotiations with the U.S. Canadian tech firm PointClickCare has warned it may relocate to the U.S. if the trade war persists, highlighting the risk of losing innovative companies. U.S. Trade Representative Jamieson Greer has criticized federal protectionist policies, and Ontario's aggressive approach further undermines prospects for a renewed CUSMA deal.
Ontario's economy and healthcare security rely on integration with the United States. While protectionism may appeal politically, it is poor long-term policy. Repealing the Buy Ontario Act would safeguard healthcare and improve chances for a favorable trade agreement.
Jay Goldberg is the North American affairs manager at the Consumer Choice Center.
