Trade Agreements Act of 1979 as Amended 19 U.s.c. 2511
Trade Agreements Act of 1979 as Amended 19 U.S.C. 2511: What You Need to Know
The Trade Agreements Act of 1979 (TAA) is a federal procurement law that mandates the government to purchase products made in the United States or in designated countries, known as trade agreement countries. The TAA was enacted to support the country`s domestic manufacturing industry and promote fair and open international trade. In this article, we`ll delve deeper into the TAA, its amendments, and how it affects federal procurement.
What is the TAA?
The TAA prohibits government agencies from purchasing products made outside the US or the designated trade agreement countries. Under the TAA, entities that are subject to federal procurement must ensure that the products acquired are either made in the US or in a designated country. The TAA covers products with an estimated value of over $182,000 for supply contracts and $7,008,000 for service contracts.
Designated Trade Agreement Countries
The list of designated trade agreement countries changes frequently, and businesses should remain up-to-date with the latest countries deemed eligible under the TAA. As of 2021, the following countries are designated under the TAA:
– Australia
– Bahrain
– Canada
– Chile
– Colombia
– Costa Rica
– Dominican Republic
– El Salvador
– Guatemala
– Honduras
– Israel
– Mexico
– Morocco
– Nicaragua
– Oman
– Panama
– Peru
– Singapore
– South Korea
Amendments to the TAA
Since its enactment in 1979, the TAA has undergone several amendments to increase its effectiveness. One of the most significant amendments was in 1993, with the North American Free Trade Agreement Implementation Act (NAFTA). NAFTA extended the TAA`s provisions to include products manufactured in Mexico and Canada, above the threshold set forth by NAFTA. This expansion significantly increased the number of eligible products for federal procurement.
In 2012, the TAA was amended again to include the World Trade Organization Government Procurement Agreement. The amendment allowed for the inclusion of additional countries and products under the TAA`s coverage.
Exceptions to the TAA
There are some exceptions to the TAA`s requirements. These include products that are not available in the US or designated countries, or when using a foreign product is necessary to fulfill a public interest exception. Specific exceptions include:
1. National security
When using a domestic product would deprive the country of essential national security interests, foreign products can be used.
2. Unreasonable cost
If using a domestic or designated country product would significantly increase the cost of a contract, foreign products can be used.
3. Non-availability
If a product is not available domestically or in designated countries, foreign products can be used.
Conclusion
The Trade Agreements Act of 1979 as amended 19 U.S.C. 2511 is a critical federal procurement law that mandates federal agencies to purchase products made in the US or designated trade agreement countries. The TAA is designed to support domestic manufacturing and promote fair and open international trade. It is crucial for businesses engaging in federal procurement to be aware of the TAA`s requirements and exceptions to ensure compliance with the law. By staying informed and up-to-date with the latest amendments and designated countries, businesses can take advantage of the opportunities for federal contracting.