But not all countries have a free trade agreement with the United States, including, most importantly, countries like China and India. Therefore, if a business supplier offers the U.S. government a commodity manufactured in India, for example, that property would not be in compliance with the TAA and the contractor would not be able to supply it to public procurement. Before entering the case, a little background on the Trade Agreements Act (TAA). If the TAA applies to a U.S. government contract, the contractor can supply a product from a foreign country if that country has a free trade agreement with the United States. In other words, the U.S. government will not discriminate 20/10 on the products of its free trade partners when it buys supplies in certain circumstances (for example. B the contract is above the TAA application threshold). The Trade Agreements Act of 1979 (TAA), Pub.L.
96-39, 93 Stat. 144, adopted on July 26, 1979, codified on July 19. C ch. 13 (19 U.S.C. It outlined the modalities for the implementation of the Tokyo round of the General Agreement on Tariffs and Trade. 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. In such cases, where the purchase is made by a covered agency and the value of the supply exceeds the applicable threshold, no tariff preference is applied and the foreign product is valued in the same way as U.S.
products. These changes are being implemented as part of the TAA, which implements U.S. trade agreement commitments. 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: when a market is above the WTO GPA value threshold and therefore governs the TAA, the United States has introduced a blanket ban on the purchase of goods from “non-eligible” countries where there is a U.S. offer.