**Calgary**: The city is aiming to strengthen its economy by shifting towards local and Canadian suppliers in light of impending US tariffs. Changes to procurement practices prioritise local businesses and aim to enhance economic resilience amid trade tensions, according to city officials.
The City of Calgary is intensifying its commitment to local procurement just a day before U.S. President Donald Trump is anticipated to announce additional tariffs on Canadian goods. This proactive approach comes in response to concerns articulated by the Canadian Chamber of Commerce, which identifies Calgary as the second most vulnerable city in Canada to the economic impacts of U.S. tariffs, particularly due to its significant exports of crude oil, natural gas, and beef to the U.S. market.
Amit Patil, the city’s director of supply management, highlighted Calgary’s strategic shift, stating, “We are making conscious decisions to buy local or Canadian where we can, to decrease our reliance on U.S. suppliers, to further support our economy.” This statement underscores the city’s efforts to bolster its economic resilience amid looming international trade tensions.
Calgary’s Social Procurement Program has been identified as a leading initiative in prioritising local business engagement. Recent changes to the city’s procurement practices, announced on Monday, aim to enhance support for local and Canadian suppliers in the face of anticipated tariff impacts. These changes include adjustments to the social procurement questionnaire that gives preference to small and medium-sized businesses.
For large-scale competitive procurements of goods and materials, the weighting of the social procurement questionnaire will rise to 10 per cent, up from the previous range of five to 10 per cent. Similarly, the questionnaire for service procurements, which include consulting and construction, will also see its weighting increased to 10 per cent, although the total range will remain between five to 10 per cent pending individual reviews.
In efforts to further solidify local support, the city intends to obtain three quotes from local suppliers for small procurements whenever possible, a step up from the former requirement of one local quote out of three. In instances where local suppliers are not accessible, the city will aim to favour Canadian suppliers.
City officials attributed these enhanced procurement policies to experiences with previous supply chain disruptions, indicating that the administration is devoted to maintaining a robust and adaptable supply chain. Patil remarked, “We have been proactively managing supply chain challenges, including tariffs and commodity fluctuations for several years now.”
The city reports that approximately 95 per cent of its contract value is with Canadian suppliers, with about 70 per cent of that being sourced from within Alberta. Just last month, Calgary’s city council approved six recommendations intended to prepare for the potential impacts of a tariff war. These recommendations include establishing monthly updates starting in April for council’s executive committee concerning tariffs and supply chain matters, analysing how to enhance local procurement, and lobbying other levels of government to eliminate interprovincial trade barriers.
Source: Noah Wire Services
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