Trade Agreement Act Far Clause

b) supply of finished products. The contract agent found that the WTO ACCORD and free trade AGREEMENTs apply to this acquisition. Unless otherwise stated, these trade agreements apply to all items in the calendar. Under this contract, the supplier only supplies finished products manufactured or designated in the United States, unless its offer indicates the delivery of other finished products in the "commercial contract certificate" provision. The list below was extracted from the Federal Acquisition Regulation (FAR) and was last updated in November 2016 with the inclusion of Moldova and Ukraine and is up to date from June 2020. To access this FAR clause directly, please click here: Federal Acquisition Regulation (FAR) 52.225-5, Trade Agreements. The TAA generally prohibits the purchase of "foreign or instrumental products" that are not parties to the WTO agreement or that are "designated" by the President for the purposes of the TAA. 19 U.S.C No. 2512 (a) (1). The TAA country of origin test defines "a product of a country" as: every two years or so, the thresholds for trade agreements for the World Trade Organization Agreement on Public Procurement (WTO) and free trade agreements (FTAs) are adapted according to pre-defined formulas under the agreements. These thresholds will come into effect on January 1, 2020.

On December 23, 2019 (84 FR 70615), the U.S. Trade Representative issued new thresholds for contracting. The U.S. Trade Representative set the following new thresholds: the Buy American Act is the basic source for the purchase of foreign-made products by the federal government. Implemented by a presidential decree and regulation, the law imposes a "tariff preference" for the purchase of products originating in the United States, which can range from 6% (for defenceless markets) to 50% (for purchases of defence-related products). The application of the Buy American Act will be amended if an international agreement – either the World Trade Organization`s (WTO) Government Procurement Agreement (AMP) or a free trade agreement such as NAFTA – requires the United States to treat the products of certain foreign countries indiscriminately.

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