Buy American Act Vs Trade Agreement Act

  • 8. apríla 2021
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  • Buy American Act Vs Trade Agreement Act

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. 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. 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“. 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). Unlike the BAA, the country of origin of the components is not relevant under the TAA. A product may be TAA compliant, even if 100% of its components are foreign components, as long as the components are widely processed in the United States or in a given country. For example, Company A`s product is 80% Chinese components/materials. These components/materials are largely transformed into the final product in Mexico. The final product is in accordance with the TAA, as the components are basically processed in Mexico, a designated country. When the BAA applies, the government must prioritize „domestic finished products“ when purchasing supplies and building materials for use in the United States. There are two types of products that are considered „indoor finished products.“ The first type is a standard product (COTS) manufactured in the United States. An example of this would be a chair made in Indiana and sold in different furniture houses.