As a general rule, the TAA prohibits the acquisition of “products from a foreign country or another” that is not a party to the WTO Agreement or that has otherwise been “designated” by the President for the purposes of the TAA. 19 U.S.C§ 2512 (a) (1). The TAA`s country of origin test defines “a product of a country” as follows: it is relatively rare for the United States Court of Appeals for the Federal Circuit to consider the Trade Agreements Act, as it applies to federal government contracts. Before we get into the case, a bit of background on the Trade Agreements Act (TAA). In general, where the TAA applies to a U.S. government contract, the contractor may supply a product from another country if that country has a free trade agreement with the United States. In other words, the U.S. Government will not discriminate against the products of its free trade partners when it purchases supplies in certain circumstances (for example. B the contract is above the threshold for application of the TAA). The second of these statutes is the TAA. The TAA was designed to encourage foreign countries to enter into reciprocal trade agreements on government procurement. These agreements prohibit foreign countries from discriminating against products made in America and prohibit the United States from discriminating against products of foreign origin. By law, countries that have such agreements and do not discriminate against products made in the United States can compete with non-discriminatory conditions to obtain a U.S.
government. At the same time, products from countries that have not concluded such trade agreements are excluded from government procurement. Countries that have concluded such agreements are designated as parties to the World Trade Organization (“WTO”) agreement. . But not all countries have a free trade agreement with the United States, including, very importantly, countries like China and India. Therefore, if a contractor offers the U.S. government a good manufactured in India, for example, that good would not comply with the TAA and the contractor would not be able to deliver that good for public procurement. The Trade Agreements Act 1979 (TAA), Pub.L. 96-39, 93 Stat.
144, promulgated July 26, 1979, codified as 19 U.S.C ch. 13 (19 U.S.C§ 2501-2581), is an act of Congress that regulates trade agreements negotiated between the United States and other countries under the Trade Act of 1974. It provided modalities for the implementation of the Tokyo Round of the General Agreement on Tariffs and Trade. The Trade Agreements Act (TAA) is a federal law applicable to all Federal Supply Schedule (FSS) contracts. it prohibits federal authorities from acquiring products manufactured in certain countries. The TAA may limit the purchase of goods and services for federal contracts if the program management office decides to verify compliance with the TAA. In many ways, the TAA replaces the Buy American Act because the TAA authorizes the president to waive the Buy American Act under certain conditions. Subsection 25.4 of the Federal Acquisition Regulations (FAR) contains guidelines for compliance with the TAA.  In general, a product is TAA compliant when manufactured in the United States or a “designated country”. Among the designated countries, non-compliance with the TAA may result in a False Claims Act lawsuit by the U.S. government, which can impose considerable damages on companies that allegedly defrauded government agencies. In fiscal year 2017 just, there were a total of 799 cases of FCAs, resulting in $3.7 billion in federal clawbacks.