Regulations last checked for updates: Apr 29, 2024

Title 48 - Federal Acquisition Regulations System last revised: Apr 25, 2024
25.402 - 25.402 General.

(a)(1) The Trade Agreements Act (19 U.S.C. 2501, et seq.) provides the authority for the President to waive the Buy American statute and other discriminatory provisions for eligible products from countries that have signed an international trade agreement with the United States, or that meet certain other criteria, such as being a least developed country. The President has delegated this waiver authority to the U.S. Trade Representative. In acquisitions covered by the WTO GPA, Free Trade Agreements, or the Israeli Trade Act, the U.S. Trade Representativehas waived the Buy American statute and other discriminatory provisions for eligible products. Offers of eligible products receive equal consideration with domestic offers.

(2) The contracting officer shall determine the origin of services by the country in which the firm providing the services is established. See Subpart 25.5 for evaluation procedures for supply contracts covered by trade agreements.

(b) The value of the acquisition is a determining factor in the applicability of trade agreements. Most of these dollar thresholds are subject to revision by the U.S. Trade Representative approximately every 2 years. The various thresholds are summarized as follows:

Table 1 to Paragraph (b)

Trade agreement Supply
contract
(equal to or
exceeding)
Service
contract
(equal to or
exceeding)
Construction
contract
(equal to or
exceeding)
WTO GPA$174,000$174,000$6,708,000
FTAs:
Australia FTA102,280102,2806,708,000
Bahrain FTA174,000174,00013,296,489
CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua)102,280102,2806,708,000
Chile FTA102,280102,2806,708,000
Colombia FTA102,280102,2806,708,000
Korea FTA100,000100,0006,708,000
Morocco FTA174,000174,0006,708,000
USMCA:
—Mexico102,280102,28013,296,489
Oman FTA174,000174,00013,296,489
Panama FTA174,000174,0006,708,000
Peru FTA174,000174,0006,708,000
Singapore FTA102,280102,2806,708,000
Israeli Trade Act50,000
[69 FR 77874, Dec. 28, 2004, as amended at 71 FR 219, Jan. 3, 2006; 71 FR 865, Jan. 5, 2006; 71 FR 20307, Apr. 19, 2006; 71 FR 36937, June 28, 2006; 71 FR 67777, Nov. 22, 2006; 72 FR 46358, Aug. 17, 2007; 73 FR 10963, Feb. 28, 2008; 73 FR 16747, Mar. 28, 2008; 74 FR 28428, June 15, 2009; 75 FR 38690, July 2, 2010; 77 FR 27550, May 10, 2012; 77 FR 69724, Nov. 20, 2012; 78 FR 80380, Dec. 31, 2013; 79 FR 24209, Apr. 29, 2014; 80 FR 81895, Dec. 31, 2015; 83 FR 3398, Jan. 24, 2018; 85 FR 2618, Jan. 15, 2020; 86 FR 74530, Dec. 30, 2021; 87 FR 73892, Dec. 1, 2022; 89 FR 13963, Feb. 23, 2024]
authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
cite as: 48 CFR 25.402