Buy American Act Vs Trade Agreement Act

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. Canada is now a signatory to the World Trade Organization (GPA) at the sub-federal level. In the United States, 37 states are covered, to varying degrees, by this agreement. A list of U.S.-level companies is available in Schedule 2 of accord for the United States (DOC, 80 KB, 6 pages). This means that Canadian products and supplies for U.S. domestic products should be treated in the same way with the government covered by the agreement, in addition to maintaining open access at the federal level if the purchase value of the main contract exceeds WTO thresholds (currently $7.358 million). However, the WTO GPA does not provide open access to government procurement at the local level.

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). 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 TAA stipulates that the product is grown, manufactured or manufactured either in the United States (1) or in a “designated country” or (2) “essentially processed” in the United States or in a “designated country.” The essential requirement for the transformation of the TAA is different from the BAA`s manufacturing requirement. A product is “essentially transformed” when a fundamental change occurs in its form, nature or character – when it has been transformed into a new and other commercial item with a name, character or other use different from that of the article or article that transformed it.


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