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Section 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 Act 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 USTR has waived the Buy American Act 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 the 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:
Trade agreement
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Supply contract (equal to or exceeding)
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Service Contract (equal to or exceeding)
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Construction contract (equal to or exceeding)
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WTO GPA . . . . . . . . . . . . . . .
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$203,000
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$203,000
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$7,804,000
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FTAs
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Australia FTA . . . . . . . . .
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70,079
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70,079
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7,804,000
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Bahrain FTA . . . . . . . . . .
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203,000
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203,000
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9,110,318
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CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua)
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70,079
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70,079
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7,804,000
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Chile FTA . . . . . . . . . . . .
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70,079
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70,079
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7,804,000
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Morocco FTA . . . . . . . . .
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203,000
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203,000
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7,804,000
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NAFTA . . . . . . . . . . . . . .
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-Canada . . . . . . . . . . . . .
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25,000
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70,079
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9,110,318
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-Mexico . . . . . . . . . . . .
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70,079
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70,079
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9,110,318
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Oman FTA
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203,000
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203,000
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9,110,318
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Peru FTA
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203,000
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203,000
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7,804,000
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Singapore FTA . . . . . . . .
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70,079
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70,079
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7,804,000
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Israeli Trade Act . . . . . . . . . . .
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50,000
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