Federal policy direction is shaping expectations across multiple sectors. Budget 2025 highlighted the government’s priorities, providing clarity on potential opportunities for Canadian businesses. But accessing and capitalizing on the benefits of federal contracts will be contingent on meeting rigorous requirements, underscoring the need for organizations to be proactive.
Mitigating trade and tariff uncertainty
The current geopolitical climate is turning the 2026 review of the Canada–United States–Mexico Agreement (CUSMA) into a potential flashpoint for renegotiation. Industries that rely on predictable cross-border flows—manufacturing, transportation, natural resources, agriculture, and technology—are facing another period of strategic uncertainty and the need to re-evaluate tariff readiness strategies.
But amid the complexity, opportunities exist. Besides foundational steps like trade compliance and tax planning, companies can take a tactical approach to value creation and market expansion, evaluating actions like supply chain optimization, restructuring and cost optimization, expansion and exit decisions, and diversifying into new markets.
Cost optimization and scenario planning around sourcing, pricing, and market access should be an integral part of the compliance, resilience, and value creation agenda for 2026. Across all of this, internal audit and risk teams will need to reassess risk tolerance and strengthen controls to keep pace with rapid change.
Find value in an evolving trade landscape:
Finding opportunity in interprovincial trade dynamics
Eliminating interprovincial trade barriers in Canada could bring significant benefits, from enhanced economic resilience and improved domestic trade efficiency to lower operational costs for businesses. Yet obstacles persist. The federal government’s Bill C-5, the One Canadian Economy Act, aims to break down these barriers and labour mobility hurdles across all industries to accelerate national interest infrastructure projects through the Major Projects Office (MPO).
As mobility restrictions fall and internal trade becomes more efficient, several industries are well-positioned to see greater opportunity: retail and agri-food, energy, transportation, and professional services like healthcare and construction.
To compete effectively, many businesses will need to rapidly mature their capabilities in areas like cross-provincial tax compliance, AI and cybersecurity controls, data privacy standards, and sustainable procurement practices, all under heightened scrutiny for any organization bidding on government work.
Budget 2025’s “Buy Canadian” procurement policy further raises the bar, underscoring the need for organizations to reassess their supply chain risk and resilience and risk.
It’s equally important to recognize that easing interprovincial barriers doesn’t solve the national talent shortage and may actually expose capacity gaps. Organizations need to understand where they rely on interprovincial talent flows and where bottlenecks could emerge as mobility accelerates. Proactive HR transformation and partnerships with Indigenous and regional talent pipelines can help close these gaps before they become competitive liabilities.
Integrate resilience into your supply chains and talent pipeline:
Turning Canada defence spending into a competitive advantage
Canada’s growing commitment to defence modernization—including a commitment to increase defence spending to 5% of GDP by 2035—is poised to unlock new business opportunities across the defence supply chain, from mining and manufacturing to transportation.
While the opportunity is immense, the cost of entry can be high. Securing federal defence contracts will require maturity across the business and strict compliance with elevated expectations around digital maturity, cybersecurity, IT systems, supply chain standards, Indigenous participation, and manufacturing readiness.
Companies will need to develop a robust assessment of their current state, the capabilities required to compete, and the road map to get there if they want to qualify for upcoming opportunities.
Assess, adapt, and capture opportunity:
Explore the regulatory outlook
Select a category to explore regulatory developments by status and understand what they may mean for your organization.