Bill C-40: Strengthening Canada's Defence Sector Act

Companies that make or supply anything the military or government needs — from physical equipment and technology to professional services — will be directly affected, particularly defence contractors, aerospace and shipbuilding firms, and technology companies operating across Canada. Businesses that currently hold or want defence contracts will face new competitive procurement rules, including processes that can be bypassed for national security reasons, and the government gains new powers to exclude companies from bidding if they're seen as a security risk without having to explain why. Manufacturers in sectors like advanced manufacturing, cybersecurity, and critical infrastructure may find themselves subject to new information-reporting obligations if the Minister decides their facilities or capabilities are relevant to defence or national security. Larger firms with existing government contracts are likely most immediately affected, but the broad definition of 'defence supplies' — now covering data and intangible property — means smaller tech businesses and service providers could also find themselves pulled into this regulatory orbit.