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FAC Number: 2022-06
Effective Date: 05/26/2022

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 Representative has 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 Agreement Supply Contract (equal to or exceeding) Service Contract (equal to or exceeding) Construction Contract (equal to or exceeding)
WTO GPA $183,000 $183,000 $7,032,000
FTAs
Australia FTA 92,319 92,319 7,032,000
Bahrain FTA 183,000 183,000 12,001,460
CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) 92,319 92,319 7,032,000
Chile FTA 92,319 92,319 7,032,000
Colombia FTA 92,319 92,319 7,032,000
Korea FTA 100,000 100,000 7,032,000
Morocco FTA 183,000 183,000 7,032,000
NAFTA
-Canada 25,000 83,099 10,802,884
-Mexico 92,319 92,319 12,001,460
Oman FTA 183,000 183,000 12,001,460
Panama FTA 183,000 183,000 7,032,000
Peru FTA 183,000 183,000 7,032,000
Singapore FTA 92,319 92,319 7,032,000
Israeli Trade Act 50,000 - -

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