TAATrade Agreements Act

Trade Agreements Act governs procurement of foreign products and determines which countries qualify for federal contracts.

Definition

The Trade Agreements Act (TAA) of 1979 implements U.S. trade agreements by waiving Buy American Act restrictions for products from designated countries. Under the TAA, federal agencies may purchase products from TAA-designated countries (including WTO Government Procurement Agreement signatories, Free Trade Agreement countries, and least developed countries) as if they were domestic products. However, products from non-designated countries like China, India, and Russia are generally prohibited on TAA-covered contracts. A product is TAA-compliant if it is manufactured or substantially transformed in the United States or a designated country. GSA Schedule contracts and contracts above the Trade Agreement thresholds typically require TAA compliance rather than Buy American Act compliance.

Also Known As

  • Trade Act
  • TAA Compliance
  • TAA-Compliant

Examples

Common Mistakes to Avoid

  • Assuming products assembled in the U.S. from non-designated country components are TAA-compliant
  • Not verifying country of origin for components and final assembly
  • Confusing TAA-designated countries with all foreign countries

Who Should Know This Term

GSA Schedule contractors, international supply chain managers, trade compliance officers

Official Source

19 U.S.C. 2501-2582