Trade Agreements
FAR Subpart 25.4 requires contracting professionals to apply and comply with international trade agreements in federal procurement, directly impacting sourcing and eligibility decisions.
Overview
FAR Subpart 25.4, "Trade Agreements," establishes the policies and procedures for implementing various international trade agreements in U.S. government procurement. This subpart outlines how the Trade Agreements Act (TAA), World Trade Organization Government Procurement Agreement (WTO GPA), Free Trade Agreements (FTAs), and other specific trade initiatives affect the acquisition of supplies and services. It details when and how these agreements apply, exceptions, country-specific provisions, and the procedures contracting officers must follow to ensure compliance. The subpart is organized into sections covering the scope, exceptions, general rules, and the application of specific trade agreements such as those with least developed countries, the Caribbean Basin, Israel, and civil aircraft. It also provides procedural guidance for determining applicability and compliance with these agreements during the procurement process.
Key Rules
- Scope and Applicability
- Defines which contracts and acquisitions are subject to trade agreements and under what circumstances.
- Exceptions
- Identifies situations where trade agreement requirements do not apply.
- Country-Specific Agreements
- Details requirements for procurements involving products from countries covered by specific agreements (e.g., WTO GPA, FTAs, Israeli Trade Act).
- Procedures
- Outlines steps contracting officers must take to determine applicability and ensure compliance.
Responsibilities
- Contracting Officers: Must determine the applicability of trade agreements, apply relevant clauses, and ensure compliance with country-specific requirements.
- Contractors: Must certify product origin and comply with sourcing requirements under applicable trade agreements.
- Agencies: Oversee compliance and may need to report or justify exceptions.
Practical Implications
- Ensures U.S. government procurement is consistent with international trade obligations.
- Impacts sourcing decisions, allowable suppliers, and contract eligibility.
- Non-compliance can result in bid rejection or contract termination; understanding exceptions and procedures is critical.