Medtech Canada Urges Exemption from U.S. Procurement Measures

Medtech Canada is urging federal and provincial governments to intervene in the escalating trade dispute between Canada and the United States. The association is calling for a specific exemption of medical technologies from retaliatory measures, arguing that patient safety should remain insulated from broader geopolitical tensions.

This advocacy follows a memorandum issued by the U.S. administration on September 16, which directs federal officials to identify Canadian-origin products for potential exclusion from U.S. civil procurement. The industry group contends that while trade policy is a matter of national interest, the integration of medical supply chains makes such isolation particularly dangerous for healthcare systems on both sides of the border.

U.S. Procurement Memo Targets Canadian Goods

According to the memorandum, the U.S. administration has cited Canadian federal procurement preferences and provincial restrictions on American companies as the primary justification for the new directive. Nicole DeKort, President and CEO of Medtech Canada, stated that this escalation was anticipated as provinces introduced restrictions against U.S. firms. She emphasized that while the government’s desire to respond to U.S. trade actions is understandable, health care must not become a casualty of the conflict.

It is important to note that the memorandum does not immediately ban Canadian medical technologies from federal procurement, nor does it yet specify which products will be excluded. This creates a critical window of opportunity for policymakers to negotiate exemptions before specific barriers are implemented. Medtech Canada is actively lobbying to signal that these products require special status to prevent further entanglement in the dispute.

Interdependent Supply Chains Face New Risks

The medical technology sector in North America is characterized by deeply integrated supply chains. Statistics Canada data indicates that Canada exported $2.7 billion in medical devices in 2023, with approximately $2 billion of that total destined for the United States. Conversely, Canada imported $10.7 billion in medical devices during the same period, including $4.8 billion from the U.S. These figures underscore the mutual dependence of the two markets on cross-border trade for essential medical equipment.

DeKort highlighted that Canadian companies rely heavily on access to the U.S. market, while Canadian patients depend on reliable access to American technologies. She warned that creating barriers in either direction places both economic interests and patient outcomes at risk. The association is advocating for a "Zero-for-Zero" approach, which would mean no tariffs, no retaliatory tariffs, and no discriminatory procurement restrictions on medical technologies moving between the two countries.

Supply Shortages Complicate the Trade Landscape

The threat of additional trade barriers arrives at a time when Canada’s medical-device supply chain is already under significant strain. Health Canada reported 69 medical-device shortages in the 2024–25 period, representing a 19% increase from the previous year and affecting 1,439 individual devices. This existing fragility makes the prospect of new trade restrictions particularly concerning for the sustainability of the healthcare system.

Medtech Canada argues that Canada is a relatively small global market that relies heavily on imported medical technologies. Consequently, the association believes that policymakers should focus on making it easier, not harder, for essential technologies to reach patients. The group is urging provincial governments to remove existing procurement restrictions affecting medical technologies in Canada, aiming to de-escalate tensions and protect the humanitarian aspects of the trade relationship.