Essex County amends Procurement Policy for a Canada First Strategy

By Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press

Back in February, Essex County Council directed Administration to explore a buy Canadian Procurement Strategy. As a result, at the May 7 meeting, County Council unanimously received and approved a “Canadian First Strategy” report, and further directed Administration to make the required amendments to the County’s Procurement Policy.

Those amendments will reflect on the approved wording as outlined in the report regarding the implementation of a Canada First Procurement Strategy and a tariff escalation clause.

Later in the meeting, a By-law 2025-22, to Amend By-law 2024-08 to adopt a Procurement Policy for the Corporation of the County of Essex (to Include Provisions for a Buy Canadian Strategy), was passed.

LaSalle Mayor Mike Akpata originally brought forward this idea, wanting the County of Essex to ensure it buys Canadian so the organization puts its money back into the folks that give them the privilege of sitting around the County Council table, and to ensure it is done in a proper manner.

It was presented in reaction to the US tariff matter.

Melissa Ryan, Director of Financial Services/Treasurer, pointed out key administrative recommendations to County Council.

The first proposed amendment introduced a Canada First Procurement Strategy, modelled after the Province’s recently adopted Procurement Restriction Policy.

This strategy would prioritize Canadian vendors for County purchases that fall below the key trade agreement thresholds, which is $353,300 for goods and services and $8.8M for construction, Ryan explained. It still allows for exceptions when needed. That would include when no Canadian options are available.

“The intent is to strengthen support for Canadian businesses, especially those right here in our community, while staying within the boundaries of legislation and aligning with Ontario’s broader public sector response to international trade dynamics,” Ryan said.

The second recommendation was to introduce a tariff-related escalation clause to the County’s Procurement Policy. Ryan explained that it would provide a clear, transparent process for vendors to request price adjustments if new tariffs are imposed during the course of the contract.

The process would require justification and documentation of mitigation efforts from vendors, she added.

Some optional strategies Ryan outlined County Council may want to explore in the future include buy Canadian awareness campaigns, and short-term tax deferrals for local businesses impacted by economic pressures that are a direct result of newly imposed tariffs.

“Given the evolving nature of international trade policies, we will continue to monitor the landscape and remain open to adjusting or removing any provisions if circumstances change,” she said.

Amherstburg Mayor Michael Prue was fully supportive of this. He did want to make sure decisions would be brought to Council still. Ryan noted any contracts would follow typical procurement policies, which details that anything over $500,000 needs to go to Council. Anything below would go through Administration for proper sign-offs that way.

He wanted to ensure Administration follows County Council’s intentions, which Ryan assured would happen.

Essex Deputy Mayor Rob Shepley wanted to ensure American companies would not be excluded from bidding. He understands the spirit of what the County wants to do, but wants to ensure American companies are not excluded at the detriment of taxpayers at the end of the day. He spoke of instances that could potentially result in substantial savings for taxpayers.

In her report to County Council Ryan adds that adopting a Canada First Procurement Strategy may result in increased costs in certain cases, particularly when Canadian or non-U.S. suppliers are unable to offer competitive pricing compared to U.S. companies. Those added costs may be offset by the broader economic benefits of supporting domestic suppliers—including job creation, local economic investment, and enhanced regional economic resilience.

Ryan noted this would exclude US bidders under those thresholds outlined. She noted the County does not typically find that US bidders are bidding on County construction projects. They do business with them on IT software and hardware and some pieces of ambulances. Those are situations where there are no other Canadian options available.

Her report adds that those contracts will continue to be monitored closely to assess risk and availability.

Lakeshore Deputy Mayor Kirk Walstedt echoed Shepley’s concerns. He did not want to take this to an extent that it would significantly affect the tax base. From what he heard, that is a low risk.

Kingsville Mayor Dennis Rogers was interested in further exploring the short-term tax deferrals for local businesses impacted by economic pressures that are a direct result of newly imposed tariffs as Ryan outlined.

CAO Sandra Zwiers noted the procurement changes presented during the meeting were key ways the County could support local businesses. When it comes to a tax deferral program, it would have a more cumbersome administration, requiring applications from businesses. The County can explore how to build the framework to make that happen.

She added the Windsor-Essex Economic Trade Task Force is promoting awareness of help that already exists at the provincial and federal levels for businesses.

“At the municipal-level, we have a role to play, but wanting to make sure – before we get into a tax deferral program that would then impact the tax flow of municipalities that also help to contribute to the local economy – that we really promote those provincial and federal avenues, as well,” Zwiers said.

If it is County Council’s desire to look at a tax deferral program, it can be raised at the Regional Treasurers’ Group, comprised of Treasurers from the County and the seven local municipalities, to be explored, and solutions can be found to propose to Council to move forward.

Rogers further moved that in terms of the short-term tax deferrals that the Regional Treasurers’ Group discuss target municipal property tax relief in order to suggest how to provide relief to businesses impacted by recently imposed tariffs, and report back to County Council.

Tecumseh Mayor Gary McNamara also supported the tax deferral piece in terms of conformity across the local municipalities. He pointed out it is a deferral.

“We need to send a message to our friends in Washington that we’re serious about taking care of business,” McNamara said.