In October 2023, the federal government of Canada, through the Chief Information Officer, imposed an immediate ban on the use of WeChat and Kaspersky products on government-issued mobile devices. WeChat, owned by China’s Tencent Holdings, and Kaspersky, a cybersecurity firm based in Russia, were deemed to pose a risk to privacy and security when used on state devices.

The Canadian Free Trade Agreement (CFTA) is an intergovernmental trade agreement signed by Canadian ministers representing the federal government and all 13 provinces and territories. The Agreement commits provincial, territorial and federal governments to a comprehensive set of rules. The Government Procurement Chapter allows a procuring entity to limit its tendering to Canadian goods, services, or suppliers or to accord a preference for Canadian value-added, except as otherwise required to comply with international obligations, including the WTO Government Procurement Agreement (GPA) and provided that its purpose is not to avoid competition or to discriminate against any other Party's goods, services, or suppliers (Art. 503.4(b)). The preference for Canadian value-added is up to 10%, which may be awarded during the evaluation of tenders for Canadian value-added (Art. 520).
According to the Contracting Policy Notice 2021-6 Trade Agreements, the procurement thresholds are differentiated based on the procuring agency, namely Entities (departments and agencies), Crown Corporations, and other public corporations. The thresholds for Entities (departments and agencies) range from CAD 100,000 (USD 74,450 approx.) to 238,400 (USD 177,490 approx.). The thresholds for Crown Corporations and other public companies range from 602,200 CAD (USD 448,340 approx.) to 733,600 CAD (USD 546,170 approx.). These thresholds are effective from January 2022 to December 2023.

According to Appendix E of the Directive on the Management of Procurement, as amended in August 2021, federal departments and agencies are required to ensure a minimum of 5% of the total value of their contracts is held by Indigenous businesses. To support this mandatory target, Indigenous Services Canada (ISC) announced that it would invest CAD 35.2 million (Approx. USD 26.6 million) over five years to modernise the Procurement Strategy for Aboriginal Business (PSAB, renamed the Procurement Strategy for Indigenous Business (PSIB)), including expanding the scope of the mandatory set-asides and broadening the definition of eligible “Indigenous business”.

Although Canada is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not include "telecommunications-related services" (CPC 754), and only one sub-sector of "telecommunications services" (CPC 752), which are both important services sectors for digital trade.

Saskatchewan Telecommunications is the only government-owned company in the Canadian telecommunications market and it is owned by the province of the same name. According to its statutes, foreign direct investment is not allowed in this company.

Telecommunication carriers, including internet service providers that own and operate transmission facilities, are subject to foreign investment restrictions if they hold a 10% or greater share of total Canadian communication annual market revenues, as mandated by the Telecommunications Act. According to Art. 16 of the Act, a Canadian carrier is eligible to operate as a telecommunications common carrier if it is incorporated, organised, or continued under Canadian or provincial laws and is Canadian-owned and controlled, operates only a specified transmission facility, or generates less than 10% of its annual revenue from telecommunications services in Canada. To qualify as Canadian-owned and controlled, Canadians must own at least 80% of the voting interests, and the entity must not be controlled by non-Canadians.

Canada requires that Canadian citizens comprise at least 80% of the membership of boards of directors of facilities-based telecommunication service suppliers.

Foreign investment in Canada is primarily governed by the Investment Canada Act (ICA), which provides review procedures based on economic benefit, cultural impact, and national security. Under Part IV.1, any investment by a non-Canadian—whether to establish a new business, acquire control of an existing one, or acquire or establish an entity operating in Canada—may be reviewed if it is considered potentially injurious to national security. This applies even to small investments, as there is no monetary threshold for national security reviews. Control is typically presumed at over 50% of voting interest, but may also apply at over one-third under certain conditions.
In addition, investments that exceed established thresholds must pass a “net benefit” review, with criteria varying based on the investor’s origin (e.g. from countries with trade agreements like the U.S., EU, or Israel) and whether the investor is a state-owned or private entity. Furthermore, since March 2022, acquisitions involving Russian investors face exceptional scrutiny: they are presumed not to be of net benefit to Canada, and any direct or indirect ties to the Russian state may trigger a national security review under the ICA.

Canada is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).

In March 2014, the Canada Border Services Agency (CBSA), pursuant to subsection 38.1 of the Special Import Measures Act (SIMA), imposed a definitive anti-dumping duty on liquid dielectric transformers having a top power handling capacity equal to or exceeding 60,000 kilovolt amperes (60 megavolt amperes), whether assembled or unassembled, complete or incomplete (HS Code: 850490), originating in or exported from the Republic of Korea. While these products are not directly used to manufacture ICT goods, they are relevant for digital trade as they are used in data centres and telecommunications facilities where servers and digital equipment are housed, playing an important role in ensuring a stable and secure power supply for digital equipment. This measure was reviewed and extended in May 2018. The anti-dumping duty rate on imports from South Korea is 101% of the export price. In February 2023, the Canadian authorities announced the initiation of a sunset review of the definitive duty imposed on imports of the subject goods from South Korea. Additionally, in July 2023, the Canada Border Services Agency concluded that the termination of the Canadian International Trade Tribunal's order from May 2018, during the expiry review RR-2017-002, would likely lead to the continuation or resumption of dumping of specific liquid dielectric transformers from the Republic of Korea. However, the final decision is still pending.

In December 2021, the Canada Border Services Agency (CBSA), pursuant to subsection 38(1) of the Special Import Measures Act (SIMA), imposed a definitive anti-dumping duty on liquid dielectric transformers having a top power handling capacity equal to or greater than 3,000-kilovolt amperes (kVA) (3 megavolt amperes (MVA)), and less than 60,000-kilovolt amperes (kVA) (60 megavolt amperes (MVA)), and having a nominal high voltage rating of greater than 34.5 kilovolts (kV), whether assembled or unassembled, complete or incomplete (HS Code: 850490), originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), and the Republic of Korea. While these products are not directly used to manufacture ICT goods, they are relevant for digital trade as they are used in data centres and telecommunications facilities where servers and digital equipment are housed, playing an important role in ensuring a stable and secure power supply for digital equipment. The anti-dumping duty rate on imports from South Korea is 73.1% and the anti-dumping duty rate on imports from Taiwan is 21.3% of the export price.

In April 2013, the Canada Border Services Agency (CBSA) initiated an investigation into China's dumping and countervailing measures for silicon metal. The investigation focused on silicon metal containing at least 96.% but less than 99.99% silicon by weight and silicon metal containing between 89% and 96% silicon by weight with an aluminium content greater than 0.20% by weight across all forms and sizes (HS Code: 28046990). This product is essential in the production of semiconductors, which are crucial components in various ICT devices due to silicon's ideal properties for creating integrated circuits used in computers, smartphones, and other electronics.
In October 2013, under subsection 41.1 of the Special Import Measures Act, the CBSA made final determinations of dumping and subsidising concerning the subject goods from China. For imports of subject goods from China without specific normal values issued to the exporter, the anti-dumping duty is 235% of the export price. For imports from China without specific subsidy amounts issued to the exporter, the countervailing duty is 1,945 CNY (approx. 267 USD) per metric tonne. Additionally, in March 2019, the CBSA concluded that the expiration of the finding by the Canadian International Trade Tribunal in November 2013 (Inquiry No. NQ-2013-003) would likely result in the continuation or resumption of dumping and subsidising of certain silicon metals from China. However, the final decision is still pending.

According to Section 3.130 of Chapter 3 (Procurement Strategy) of Canada’s Supply Manual, the federal government may restrict access to certain public procurement contracts to Canadian suppliers only, in accordance with the Canadian Content Policy (CCP). This restriction applies to competitive procurements conducted by Public Services and Procurement Canada (PSPC) and the Department of National Defence, where the estimated contract value is CAD 25,000 (approx. USD 18,000) or more. The limitation takes effect only when there are at least two valid bids from unaffiliated suppliers holding Canadian content certification, as defined in the Supply Manual. In such cases, only those certified bids are eligible for contract award. If this condition is not met, all bids remain eligible.
The CCP does not apply to the following types of procurements:
(i) those covered by international trade agreements, such as the GPA 2012;
(ii) certain procurements related to aid for developing countries;
(iii) procurements carried out by PSPC offices located outside Canada; and
(iv) specific procurements related to industrial and regional benefits, shipbuilding, and ship repair, refit, or mid-life modernisation.