- White House has issued a memo on Canadian-origin items in federal procurement
- Agencies are tasked with identifying domestic alternatives to affected items
- OMB and USTR will monitor the memo’s rollout across agencies
President Donald Trump has signed a presidential memorandum directing the director of the Office of Management and Budget and the U.S. Trade Representative, or USTR, to identify Canadian-origin items in the federal civil procurement system that may be removed or made unavailable for purchase, where warranted and consistent with applicable law.
Signed on Wednesday, the memo was addressed to the secretary of war, the OMB director, the USTR, the administrator for federal procurement policy, the head of the General Services Administration and the NASA administrator.
What Does the Memo Say About US-Canada Procurement Practices?
The memo notes differences in how the U.S. and Canada treat one another’s companies in government procurement, including Canada’s use of domestic sourcing preferences and certain provincial-level limits on U.S. company access. It also references U.S. commitments under the World Trade Organization Agreement on Government Procurement, which the memo states cover more than $280 billion in federal procurement annually.
What Are OMB & Other Officials Responsible for Under the Memorandum?
- The OMB director, with the USTR, is directed to identify Canadian-origin items that can be removed or made non-available in federal procurement.
- The OMB director must notify agencies of domestic alternatives to affected items and periodically update the president on implementation.
- The USTR must monitor Canada’s treatment of U.S.-origin items in its federal and provincial procurement markets and report developments to the president.
- Agency heads are authorized to implement the memorandum within their authority and may redelegate that authority as permitted by law.
The memo states that it does not create any enforceable right or benefit for any party against the U.S. and will be implemented consistent with applicable law and available appropriations.
How Does the Memo Align With Trump’s Broader Procurement Agenda?
The Canadian-origin goods memorandum lands alongside a string of procurement and acquisition reforms from the current administration. Just over a year earlier, Trump signed an executive order directing amendments to the Federal Acquisition Regulation to streamline procurement and remove barriers to doing business with the government. That FAR-reform push was followed by an order establishing the America First Arms Transfer Strategy to strengthen the defense industrial base.
More recently, Trump signed an executive order limiting waivers for critical materials used in defense acquisitions, which required contractors to map their supply chains. The administration’s America First Trade Policy, issued in the opening days of the president’s second term, set the framework for reshaping how the federal government sources goods and negotiates trade terms.
