Trade agreements signed between the United States and other nations are governed by the Trade Agreements Act (TAA), federal legislation. The Trade Agreements Act was passed on July 26, 1979, and its stated goals are:
- Accept and put into effect the trade agreements concluded under the 1974 Trade Act.
- Encourage the development and maintenance of an open global trade system.
- Increase the potential for American exports to other markets
- To strengthen international trade regulations and provide provisions for their enforcement
Part 25 of the Federal Acquisition Regulations (FAR) limits acquisitions to goods created in the United States or from Designated Countries.
A thing is considered to be American-made if it was either mined, produced, or manufactured there, or if it underwent significant American-based transformation into a new and separate object of commerce that bears some indication of the country from whence it originated.
The US government may file a False Claims Act lawsuit against you if you don’t follow the Trade Agreements Act’s requirements.
Increased scrutiny of contractors’ TAA compliance efforts has resulted from a spike in FCA cases, President Trump’s executive order to buy American, and a greater emphasis on TAA compliance in recent years.
Also See: Socialist Countries 2022
There were 799 FCA cases in the 2017 fiscal year, with recoveries totaling $3.7 billion. Debarment, suspension, and termination for default are further penalties for breaking the TAA.
More than 100 WTO Government Procurement Agreement (GPA) nations, Caribbean Basin countries, least developed countries, and Free Trade Agreement (FTA) countries are TAA compliant. Notable nations including China, Russia, and Brazil are left from this list.
|Central African Republic||5579.1440|
|Trinidad and Tobago||1531.0440|
|Sao Tome and Principe||227.3800|
|Saint Vincent and the Grenadines||103.9480|
|Antigua and Barbuda||93.7630|
|Saint Kitts and Nevis||47.6570|
|British Virgin Islands||31.3050|