25.400 Scope of subpart
Source: FAR 25.400 on acquisition.gov
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.
(a) This subpart provides policies and procedures applicable to acquisitions that are covered by-
(1) The World Trade Organization Government Procurement Agreement (WTO GPA), as approved by Congress in the Uruguay Round Agreements Act (Public Law 103-465);
(2) Free Trade Agreements (FTA), consisting of-
(i) USMCA (United States-Mexico-Canada Agreement, as approved by Congress in the United States-Mexico-Canada Agreement Implementation Act (Government Procurement Agreement applicable only to the United States and Mexico) (https://www.govinfo.gov/link/plaw/116/public/113" target="_blank">Pub. L. 116-113) (http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title19-chapter29&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank">19 U.S.C. chapter 29 (sections 4501-4732));
(ii) Chile FTA (the United States-Chile Free Trade Agreement, as approved by Congress in the United States-Chile Free Trade Agreement Implementation Act of 1993 (Pub. L. 108-77) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(iii) Singapore FTA (the United States-Singapore Free Trade Agreement, as approved by Congress in the United States-Singapore Free Trade Agreement Implementation Act (Pub. L. 108-78) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(iv) Australia FTA (the United States-Australia Free Trade Agreement, as approved by Congress in the United States-Australia Free Trade Agreement Implementation Act (Pub. L. 108-286) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(v) Morocco FTA (The United States-Morocco Free Trade Agreement, as approved by Congress in the United States-Morocco Free Trade Agreement Implementation Act (Pub. L. 108-302) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(vi) CAFTA-DR (The Dominican Republic-Central America-United States Free Trade Agreement, as approved by Congress in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (Pub. L. 109-53) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section4001&num=0&edition=prelim" target="_blank">19 U.S.C. 4001 note));
(vii) Bahrain FTA (the United States-Bahrain Free Trade Agreement, as approved by Congress in the United States-Bahrain Free Trade Agreement Implementation Act (Pub. L. 109-169) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(viii) Oman FTA (the United States-Oman Free Trade Agreement, as approved by Congress in the United States-Oman Free Trade Agreement Implementation Act (Pub. L. 109-283) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(ix) Peru FTA (the United States-Peru Trade Promotion Agreement, as approved by Congress in the United States-Peru Trade Promotion Agreement Implementation Act (Pub. L. 110-138) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(x) Korea FTA (the United States–Korea Free Trade Agreement Implementation Act (Pub. L. 112-41) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805));
(xi) Colombia FTA (the United States–Colombia Trade Promotion Agreement Implementation Act (Pub. L. 112-42) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note)); and
(xii) Panama FTA (the United States-Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank">19 U.S.C. 3805 note));
(3) The least developed country designation made by the U.S. Trade Representative, pursuant to the Trade Agreements Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2511(b)(4)&num=0&edition=prelim" target="_blank">19 U.S.C. 2511(b)(4)), in acquisitions covered by the WTO GPA;
(4) The Caribbean Basin Trade Initiative (CBTI) (determination of the U.S. Trade Representative that end products or construction material granted duty-free entry from countries designated as beneficiaries under the Caribbean Basin Economic Recovery Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2701&num=0&edition=prelim" target="_blank">19 U.S.C. 2701, et seq.), with the exception of Panama, must be treated as eligible products in acquisitions covered by the WTO GPA);
(5) The Israeli Trade Act (the U.S.-Israel Free Trade Area Agreement, as approved by Congress in the United States-Israel Free Trade Area Implementation Act of 1985 (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2112&num=0&edition=prelim" target="_blank">19 U.S.C. 2112 note)); or
(6) The Agreement on Trade in Civil Aircraft (U.S. Trade Representative waiver of the Buy American statute for signatories of the Agreement on Trade in Civil Aircraft, as implemented in the Trade Agreements Act of 1979 (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2513&num=0&edition=prelim" target="_blank">19 U.S.C. 2513)).
(b) For application of the trade agreements that are unique to individual agencies, see agency regulations.