Trade Agreements Act And Buy American Act

FAR 52.225-5 lists all «designated countries» for TAA purposes. Among the countries that have signed the WTO ACCORD, have a free trade agreement with the United States, or have been identified as «least developed countries» or «Caribbean basin countries.» If it is an acquisition of the Ministry of Defence, the list of designated countries is even longer, as it also includes those that have been identified as «qualifying countries». The Trade Agreements Act (TAA) was passed in 1979 to approve and implement various trade agreements negotiated between the United States and other countries to promote fair and open international trade. TAA-compliant products can be assembled from parts purchased in these partner countries to meet GSA`s purchasing requirements. As a general rule, the TAA applies in three circumstances: (1) Purchases are valued at more than USD 182,000 for products/services or more than USD 7,008,000 for construction; 2) includes, upon purchase, the products or building materials listed in the trade agreement in question; and (3) None of the other exceptions in trade agreements apply (for example. B contracting is intended for small businesses or is made as a single purchase). The TAA prohibits the government from purchasing finished products from certain non-designated countries (for example. B China, India), but allows the president to waive national procurement requirements, including the BAA, so that the government can purchase products from other «designated countries.» Designated countries are those that have trade agreements with the United States that require their products to be treated in the same way as domestic U.S. products. The thresholds for the application of the TAA vary according to trade agreements. The most widespread trade agreement is the World Trade Organization`s Agreement on Public Procurement (WTO GPA). The current thresholds for the WTO GPA are $182,000 for goods and services contracts and $7,008,000 for work contracts.

As a general rule, the BAA applies to contracts with a federal agency, which are valued at more than $25,000 or less than the AA taA threshold. The current TAA thresholds are $182,000 for supply contracts and $7,008,000 for work contracts. While this is an oversimplification, this means that the BAA generally applies to supply contracts valued between $25,000 and $182,000 and construction contracts worth between $25,000 and $7,008,000. BAA and TAA apply to public procurement, subcontracting or orders through specific provisions of the Federal Acquisition Regulation (FAR).