How often do you look at a product to see where its made? Being a conscious consumer is more than ever these days. The things in your home can come from anywhere in the world, and we want to know that they came from somewhere with high labour, environmental, and social standards. More than ever, consumers want to feel good about where the things in their homes come from. Just because a product says it is made in Canada, does that mean all its parts and components are also from Canada or just assembled here? It can be confusing when you see conflicting labels such as “Made in Canada” and “Product of Canada.” You might be surprised to learn that they mean slightly different things.
What does it mean for something to be Made in Canada anyway?
CTV News reported the differences between Made in Canada and Product of Canada. They reveal how over 4000 complaints about product origin are lodged with the competition bureau every year. Fines can range from $750,000-$10,000,000, depending on the severity of the infringement.
Made in Canada sounds like a pretty straightforward definition, but there are actually strict regulations and d of what that exactly means. The term “Made in Canada” is controlled by the competition bureau of Canada. They define the term with three main criteria:
- The final assembly and production happened in Canada
- At least 51% of the costs of making the g were spent in Canada
- A statement is made about how much non-domestic parts or labour w involved in the manuacture, for example, “Made in Canada with domestic and imported parts,” or “Made of 70% Canadian content, and 30% imported content.”
This essentially means that more than half of all production costs need to be spent in Canada. Take a book printed in Canada, for example. Perhaps the paper is made in British Columbia, and the printing happens in Ontario. binding imported from the USA, the book would be “printed/made in Canada from domestic and imported materials.”
This rule also applies to food products. A Chocolate chip cookie might be baked in Canada with Canadian flour, butter and eggs, but the sugar and chocolate are imported. The cookie would be Made in but not a product of Canada.
It seems surprising that something made in Canada only needs to have 51% of the process happen here. Still, the competition bureau recognizes that in today’s world, so many materials and components come from around the world that it’s not as simple as it sounds to require the entirety of a product to originate here to get the label. Many components require highly specialized factories that are only found in a few parts of the world, so while a product can be assembled in many countries, critical components don’t always.
Many small businesses make products in Canada every day, but with parts, materials, and packaging sourced globally.
At first glance, “Product of Canada” can seem more vague and generic than “Made in Canada.” Most of us don’t know that it’s the strictest product definition available for goods produced in Canada. The Competition Bureau of Canada has two main criteria for something to be allowed to be designated “Product of Canada”:
- The final finishing and completion of the goods happened in Canada
- Practically all (98%)of the total direct costs of producing and manufacturing the product were spent in Canada.
If a book were printed entirely in Canada, with Paper from BC, printing in Ontario, and the binding from Quebec, that book would be eligible to be called a “Product of Canada.”
You will most often see “Product of Canada” on food packaging. Meat, maple syrup, dairy products, and other agricultural goods usually qualify for the designation.
It’s rarer to see hard goods with this title on them. This is primarily because supply chains are so globalized it can be hard to tell precisely where specific plastic or metal components were manufactured as they can pass between multiple destinations before they end up at their final destination.
When you purchase something with the “Product of Canada” stamp on it, you know you have something that is truly Canadian, without compromise.
|
Made in Canada |
Product of Canada |
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At least 51% of Canadian materials and labour |
At least 98% of Canadian materials |
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Final transformation/ assembly in Canada |
All work is completed in Canada. |
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Parts and materials can be sourced globally. |
Minimal parts and materials come from abroad. |
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The more common designation for Canadian manufacturing |
Less frequent for n products |
Sometimes, a product doesn’t meet either c.
In some cases, the material isn’t readily available in Canada, but the finishing or manufacturing process can be completed here. If it’s a jacket made of foreign cloth but sewn in Vancouver, it can have the tag “Sewn in Canda.” A similar example would be coffee. Coffee beans don’t grow in Canada, but m companies specialize in roasting coffee. They could have the label “Ecuadorian beans, Roasted in Canada.”
There are also plenty of companies in Canada that design highly sophisticated products but, for whatever reason, cannot manufacture them locally. They can only put “Designed in Canada” on the product in this case. Apple commonly does this with their iPhones made in China but designed in California.
The next time you’re looking to buy a product, take a look at the label and think about what that means. What kind of a journey did its components have to make to get to you. While not everything can be made in Canada, knowing the difference between Made in, Product of, and Designed can be valuable tools in making informed purchases to support the Canadian economy and domestic businesses. Those companies that have “Made in Canada” or “Product of Canada” have made a commitment to making their products locally in a world where it has never been easier to get something produced for cheaper abroad.