The federal government’s “Buy Canadian” policy takes effect Tuesday and Ottawa says it will fundamentally change the way it purchases goods and services.

Announced earlier in the fall, the strategy is meant to ensure Canadian products and workers are prioritized in federal procurement decisions.

It applies to the government’s new major projects and housing offices, defence procurement and community infrastructure funded by the federal government.

The first stage of the policy, which comes into effect today, requires that contracts valued at $25 million or more prioritize Canadian businesses and materials.