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e-CFR data is current as of January 15, 2021

Title 48Chapter 1Subchapter DPart 25Subpart 25.4 → §25.402


Title 48: Federal Acquisition Regulations System
PART 25—FOREIGN ACQUISITION
Subpart 25.4—Trade Agreements


25.402   General.

(a)(1) The Trade Agreements Act (19 U.S.C. 2501, et seq.) provides the authority for the President to waive the Buy American statute and other discriminatory provisions for eligible products from countries that have signed an international trade agreement with the United States, or that meet certain other criteria, such as being a least developed country. The President has delegated this waiver authority to the U.S. Trade Representative. In acquisitions covered by the WTO GPA, Free Trade Agreements, or the Israeli Trade Act, the U.S. Trade Representativehas waived the Buy American statute and other discriminatory provisions for eligible products. Offers of eligible products receive equal consideration with domestic offers.

(2) The contracting officer shall determine the origin of services by the country in which the firm providing the services is established. See Subpart 25.5 for evaluation procedures for supply contracts covered by trade agreements.

(b) The value of the acquisition is a determining factor in the applicability of trade agreements. Most of these dollar thresholds are subject to revision by the U.S. Trade Representative approximately every 2 years. The various thresholds are summarized as follows:

Table 1 to Paragraph (b)

Trade agreementSupply contract
(equal to or
exceeding)
Service contract
(equal to or
exceeding)
Construction
contract
(equal to or
exceeding)
WTO GPA$182,000$182,000$7,008,000
FTAs:
Australia FTA83,09983,0997,008,000
Bahrain FTA182,000182,00010,802,884
CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua)83,09983,0997,008,000
Chile FTA83,09983,0997,008,000
Colombia FTA83,09983,0997,008,000
Korea FTA100,000100,0007,008,000
Morocco FTA182,000182,0007,008,000
NAFTA:
—Canada25,00083,09910,802,884
—Mexico83,09983,09910,802,884
Oman FTA182,000182,00010,802,884
Panama FTA182,000182,0007,008,000
Peru FTA182,000182,0007,008,000
Singapore FTA83,09983,0997,008,000
Israeli Trade Act50,000

[69 FR 77874, Dec. 28, 2004, as amended at 71 FR 219, Jan. 3, 2006; 71 FR 865, Jan. 5, 2006; 71 FR 20307, Apr. 19, 2006; 71 FR 36937, June 28, 2006; 71 FR 67777, Nov. 22, 2006; 72 FR 46358, Aug. 17, 2007; 73 FR 10963, Feb. 28, 2008; 73 FR 16747, Mar. 28, 2008; 74 FR 28428, June 15, 2009; 75 FR 38690, July 2, 2010; 77 FR 27550, May 10, 2012; 77 FR 69724, Nov. 20, 2012; 78 FR 80380, Dec. 31, 2013; 79 FR 24209, Apr. 29, 2014; 80 FR 81895, Dec. 31, 2015; 83 FR 3398, Jan. 24, 2018; 85 FR 2618, Jan. 15, 2020]

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