Trade Agreements Far

b) supply of finished products. The contract agent found that the WTO ACCORD and free trade AGREEMENTs apply to this acquisition. Unless otherwise stated, these trade agreements apply to all items in the calendar. Under this contract, the supplier only supplies finished products manufactured or designated in the United States, unless its offer indicates the delivery of other finished products in the «commercial contract certificate» provision. Every two years or so, the thresholds for trade agreements for the World Trade Organization Agreement on Public Procurement (WTO) and free trade agreements (FTAs) are adapted according to pre-defined formulas under the agreements. These thresholds will come into effect on January 1, 2020. On December 23, 2019 (84 FR 70615), the U.S. Trade Representative issued new thresholds for contracting. The U.S. Trade Representative has set the following new thresholds: this final rule transposes the new thresholds into the FAR 25.4 subsection, trade agreements and other sections of the FAR that contain thresholds for trade agreements (i.e. 22.1503, 25.202, 25,603, 25.1101 and 25.1102).

Where a contracting exceeds the WTO APA threshold and therefore the TAA applies, the United States has imposed a blanket ban on the purchase of goods from «non-eligible» countries where there is an offer of U.S. products or products from an eligible country. The aim of this restriction is to encourage other countries to make international trade commitments on public procurement. In most cases, this restriction prohibits the U.S. government from purchasing products from countries such as China and India that are not members of the GPA. 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.

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