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CANADA

The difference between ‘Made in Canada’ and ‘Product of Canada’

Feb 3, 2025 | 5:43 PM

‘Made in Canada’ labelling regulations under the Competition Act, Consumer Packaging and Labelling Act, and Textile Labelling Act were initially put in place in 2010.

This was in an effort to prevent misleading claims for the Made in Canada label, which states that “the last substantial transformation of the good must occur in Canada”.

Total direct costs of creation incurred in Canada only has to be 51 per cent to be considered “made in Canada”, to use a claim that appeals to Canadians who want to buy from their own country.

Shannon McDougall started the Made in Canada Directory in 2018 during the previous Donald Trump administration.

She said it is an easy way to compile information for Canadians looking for Canadian-made products.

Jayk Sterkenburg/CHAT News

“The products sometimes are assembled in Canada, or you might see on the back of a label in Superstore it says ‘produced for’,” McDougall told CHAT News Monday.

“That means that it was done outside, and then brought into Canada for that company,” she added.

A ‘Product of Canada’ is required to be 98 per cent Canadian, while a ‘Made in Canada’ label only requires a percentage of 51.

Product of Canada

The Canadian Food Inspection Agency says a “product of Canada” label denotes that all, or nearly all, of the food, processing and labour used to make the product is Canadian.

Products with this label were grown or raised by Canadian farmers and prepared and packaged in Canada, but can contain a small amount of imported food, such as spices, additives, vitamins, and flavourings.

For non-food products, the Competition Bureau says the label can only be used on items when at least 98 per cent of the costs of producing or manufacturing the good have been incurred in Canada.

Made in Canada

The Made in Canada label can be applied to items when “the last substantial transformation of the product occurred in Canada.”

For example, the CFIA says the processing of cheese, dough, sauce and other ingredients to create a pizza would be considered a substantial transformation.

For non-food products to use the label, the Competition Bureau says the last substantial transformation of the good must have occurred in Canada and at least 51 per cent of production or manufacturing costs must have been in the country.

The bureau and CFIA say companies that use the made in Canada label must also say whether the product is made in Canada from imported components or ingredients or a combination of imported and domestic parts or ingredients.

Canadian

The CFIA treats the word Canadian the same as it does “product of Canada,” meaning all or virtually all major ingredients, processing and labour used to make the food product must be Canadian.

It says if you see “Canadian” on a container of frozen lasagna, it would mean that the food meets the “Product of Canada” criteria.

The same is true for ingredients, so if “Canadian cheddar cheese” is marked on a package of cheddar cheese sauce, all or virtually all major ingredients, processing and labour used to make the cheddar cheese in the sauce must be Canadian.

100% Canadian

To use this term, the CFIA says the food or ingredient to which the claim applies must be entirely Canadian, including its processing and labour.

A Maple Leaf

The CFIA says use of the Maple Leaf on food packaging does not always mean that the product is wholly or partially Canadian but is often used to denote something is a “product of Canada.”

To ensure the leaf does not mislead consumers, it recommends food companies include a domestic content statement with the image, but many firms don’t follow that advice.

Produced or manufactured in Canada

The Competition Bureau website says terms like “produced”, or “manufactured” in Canada, are likely to be understood by consumers as “made in Canada” and should therefore comply with the requirements to use that claim.

Local

If a company advertises that a product is “local,” the CFIA says it must be produced in the province or territory in which it is sold, or sold across provincial borders within 50 km of the originating province or territory

The blue cow

Items in the dairy aisle often have a blue cow logo, which the Dairy Farmers of Canada organization says means it was made with 100 per cent Canadian milk and milk ingredients.

Meat and poultry

Companies can only call meat a “product of Canada” if it is from Canadian animals that are slaughtered in Canada.

Animals are considered Canadian if they are born or hatched, raised and slaughtered in Canada or, in the case of feeder cattle, if they have spent a period of at least 60 days in Canada before slaughter in Canada, the CFIA said.

Fish and seafood

The CFIA says wild fish and seafood products can be labelled “product of Canada,” if they were caught by vessels in Canadian waters and the products from the fish and seafood are processed in a Canadian establishment using Canadian ingredients.

In the case of farmed fish and seafood, the CFIA says the farm must be located in Canada and the processing must occur in a Canadian establishment with the use of Canadian ingredients.

Dairy and eggs

Eggs from imported hens and milk from imported cows can use the “product of Canada” label as long as the hen laid its eggs in Canada and the cow is milked in Canada.

If part of the item is made in another country, the product claim only has to indicate this in its Made in Canada statement.

McDougall said the Made in Canada Directory exclusively keeps to only Canadian-owned businesses.

She does the research and finds the products, and inquires the owners.

If it doesn’t indicate on their website, she’ll contact the company directly to find out if the product is actually made in Canada.

There are over 1,280 categories of products on the directory, in over 1,200 locations across Canada.

She said that she’s proud of Canadians who have really stepped up and begun a movement of purchasing Canadian goods.

“I think it’s important either way, whether or not we have tariffs, and it’s important to support local economy.”

A business can be submitted to the directory, ensuring that information provided is accurate, and the directory team will review and verify the listing.

— With files from The Canadian Press