DATE: February 21, 2002

SUBJECT: Procurement Thresholds for Implementation of the Trade Agreements Act and the North American Free Trade Agreement

SOURCE: Federal Register, February 21, 2002, Vol. 67, No. 35, page 8057

AGENCIES: Office of the U.S. Trade Representative (USTR)

ACTION: Notice

SYNOPSIS: The USTR has decided to adjust the U.S. dollar thresholds for the application of the Trade Agreements Act of 1979 (TAA) and the North American Free Trade Agreement (NAFTA).

EDITOR'S NOTE: For more on the application of the TAA and NAFTA to federal acquisitions, see Federal Acquisition Regulation (FAR) Subpart 25.4, Trade Agreements.

For more on the previous adjustments to the TAA and NAFTA in 2000, see the March 31, 2000, FEDERAL CONTRACTS DISPATCH "Procurement Thresholds for Implementation of Trade Agreements Act."

EFFECTIVE DATE: January 1, 2002.

FOR FURTHER INFORMATION CONTACT: Karissa Kovner, USTR Director for International Procurement Negotiations, Office of the U.S. Trade Representative, 600 17th Street, NW, Washington, DC 20508; 202-395-3063.

SUPPLEMENTAL INFORMATION: The TAA exempts products of "designated countries" (see FAR 25.003, Definitions) from the application of the Buy American Act (see FAR Subpart 25.1, Buy American Act -- Supplies, and FAR Subpart 25.2, Buy American Act -- Construction Materials) in acquisitions over certain thresholds. NAFTA does the same for products from Canada and Mexico.

The USTR is required to adjust the thresholds about every two years to reflect the value of the U.S. dollar against the currencies of other nations. The last time the thresholds were adjusted was effective January 1, 2000. The following are the thresholds, as revised by the USTR effective January 1, 2002:



EDITOR'S NOTE: The NAFTA threshold for Canadian products remains $25,000. Also, some agencies (such as the Power Marketing Administration of the Department of Energy, the Bureau of Reclamation of the Department of the Interior, and the Federal Aviation Administration of the Department of Transportation) have unique thresholds. Paragraph (b) of FAR 25.400, Scope of Subpart, says to "see agency regulations."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.