Reference · Contracting basics & process
Trade Agreements Act (TAA)
Trade Agreements Act
The Trade Agreements Act (TAA) allows the government to waive Buy American restrictions and acquire products from designated trade-agreement countries above certain dollar thresholds. Products from non-designated countries are generally not TAA-compliant for those procurements.
What it is
Implemented in FAR Subpart 25.4, the TAA gives products from designated countries equal treatment above set thresholds while barring products from non-designated countries. 'TAA-compliant' means an item is made or substantially transformed in the U.S. or a designated country.
Why it exists
It implements U.S. trade agreements, opening covered procurements to partner countries while excluding others.
Who it applies to
Contractors supplying products on TAA-covered procurements. It interacts with — and above the thresholds can displace — the Buy American Act.
Regulatory dates and requirements in this area change. Confirm the current guidance against the official sources below before you rely on it.
Frequently asked
What does TAA-compliant mean?
TAA-compliant means a product is made in, or substantially transformed in, the United States or a designated trade-agreement country, making it eligible for TAA-covered federal procurements. Products wholly from non-designated countries are generally not TAA-compliant.
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