25.400
Scope of subpart
FAR 25.400 identifies which international trade agreements apply to federal acquisitions, guiding contracting professionals on compliance with global procurement obligations.
Overview
- FAR 25.400 defines the scope of Subpart 25.4, outlining which trade agreements and related statutes apply to federal acquisitions. It lists the specific international agreements, such as the WTO GPA, various Free Trade Agreements (FTAs), and other trade initiatives, that establish procurement obligations for U.S. government contracts. This section clarifies which acquisitions are subject to these agreements and refers users to agency-specific regulations for agreements unique to individual agencies.
Key Rules
- Applicability of Trade Agreements
- Acquisitions covered by the WTO GPA, multiple FTAs (including USMCA, Chile, Singapore, Australia, Morocco, CAFTA-DR, Bahrain, Oman, Peru, Korea, Colombia, Panama), and other trade initiatives are subject to the policies and procedures in this subpart.
- Special Country Designations
- Least developed countries and Caribbean Basin countries may be treated as eligible sources under certain agreements.
- Other Trade Acts
- The Israeli Trade Act and the Agreement on Trade in Civil Aircraft also affect eligibility for certain procurements.
- Agency-Specific Agreements
- For trade agreements unique to specific agencies, refer to those agencies’ regulations.
Responsibilities
- Contracting Officers: Must determine which trade agreements apply to each acquisition and ensure compliance with relevant requirements.
- Contractors: Should understand which agreements affect their eligibility and obligations for specific procurements.
- Agencies: Must provide additional guidance for agency-unique trade agreements.
Practical Implications
- This section exists to help contracting professionals identify when and how international trade agreements impact federal acquisitions. It affects sourcing decisions, eligibility of products and suppliers, and compliance with international obligations. Common pitfalls include failing to recognize when a trade agreement applies or misunderstanding eligibility requirements for products from certain countries.