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The Trade Agreements Act was passed to regulate trade agreements between the United States and abroad. One of the main features of the act is that it limits purchases by the U.S. government to products or products manufactured in the United States and manufactured in certain countries. Such products are then called "TAA compliant." However, the TAA does not limit foreign trade outside the scope of federal contracts. This means that you can freely sell non-TAA-compliant products on the commercial market. The Trade Agreements Act (19 U.S.C. – 2501-2581) of 1979 was passed to promote fair and open international trade, but more importantly, it implemented the requirement that the U.S. government only buy finished manufactured products or certain finished products. This means, in particular, that, under a MAS program, GSA can only purchase products that are compliant in the United States and/or compliant with the TAA. This requirement has always baffled many MAS contract holders as to their actual meaning.
Before entering the case, a little background on the Trade Agreements Act (TAA). If the TAA applies to a U.S. government contract, the contractor can supply a product from a foreign country if that country has a free trade agreement with the United States. In other words, the U.S. government will not discriminate 20/10 on the products of its free trade partners when it buys supplies in certain circumstances (for example. B the contract is above the TAA application threshold). The Trade Agreements Act of 1979 (TAA), Pub.L. 96-39, 93 Stat. 144, adopted on July 26, 1979, codified on July 19.
C ch. 13 (19 U.S.C. It outlined the modalities for the implementation of the Tokyo round of the General Agreement on Tariffs and Trade. The Trade Agreements Act (TAA) was created to promote fair international trade with certain designated countries. Companies that work with foreign products or services need to know which companies are limited to comply with taA and GSA. The U.S. government was required to purchase only U.S.-made products and services or finished products from TAA companies. But not all countries have a free trade agreement with the United States, including, most importantly, countries like China and India. Therefore, if a business supplier offers the U.S. government a commodity manufactured in India, for example, that property would not be in compliance with the TAA and the contractor would not be able to supply it to public procurement.
The biggest part of understanding what is GAA compliant is knowing what you need to be careful about so as not to do business in a place that violates your GSA terms and conditions. The main countries you need to monitor are China, Russia, India and Malaysia. These countries are all on the non-compliant list and can pose many problems to their business if you try to sell products or services from those countries through a GSA calendar. If your products are made entirely in the United States or if 50% of your product comes from a particular country, don`t worry. I have not found authority for the following statement on this site: "A product complies with taA though: at least 50% of its total cost comes from the United States or certain countries." GSA calendar contracts are also subject to the Trade Agreements Act, so you must ensure that your products comply with the TAA if you want to sell or sell goods to the government. While it`s easy to understand what the TAA Compliance Act is, it`s another thing to understand how it applies to your business and why it should be important to stay in compliance with the AATC while you`re under a GSA calendar contract.