The Trade Agreements Act in the USA: What You Need to Know
The Trade Agreements Act (TAA) is a federal law that provides guidance on government procurement of goods and services. It was enacted in 1979 and was designed to promote fair and open international trade while protecting the interests of American businesses.
The TAA applies to all federal agencies that purchase goods or services. It requires that the products and services purchased must either be made in the United States or come from countries that have a trade agreement with the US. These countries include:
– Australia
– Bahrain
– Canada
– Chile
– Colombia
– Costa Rica
– Dominican Republic
– El Salvador
– Guatemala
– Honduras
– Israel
– Jordan
– Korea
– Mexico
– Morocco
– Nicaragua
– Oman
– Panama
– Peru
– Singapore
If the products or services are not from a TAA-compliant country, then they are not eligible for purchase by the federal government. This provision helps to ensure that the government is not supporting foreign companies that engage in unfair or illegal trade practices.
It`s important to note that the TAA only applies to federal agencies and does not apply to private entities. However, if a private company wants to sell to the federal government, they must comply with the TAA guidelines.
One key provision of the TAA is the requirement for certification. Vendors must provide a certification that their products or services are in compliance with the TAA. This ensures that the government is not unintentionally buying products or services that violate the law.
The TAA also provides for penalties for non-compliance. Companies that violate the TAA may be subject to fines or even debarment, which means they are prohibited from doing business with the federal government.
In summary, the Trade Agreements Act is an important law that provides guidelines for government procurement of goods and services. It promotes fair and open international trade while protecting American businesses. Compliance with the TAA is essential for companies that want to sell to the federal government, and certification is a key requirement. If you have any questions or concerns about the TAA, consult with a legal professional.