The Trade Agreements Act (TAA) is a significant Congressional legislation governing trade agreements between the United States and other countries under the Trade Act of 1974. According to the TAA, the U.S. government can only procure goods and services that are either manufactured in the United States or in TAA-designated countries.
A primary objective of the TAA is to promote fair and open international trade by restricting U.S. government procurement to domestically made products or those from designated countries. TAA-compliant products must be either manufactured or substantially transformed in the United States or a designated country. A TAA-designated country is one with which the United States has a trade agreement and is considered a reliable source for procurement.
Ensuring TAA compliance is the sole responsibility of contractors or suppliers. To confirm a product’s TAA compliance, it is advisable to request the manufacturer’s TAA compliance certifications, policies, or internal assessments.
TAA compliance supports American manufacturing jobs and bolsters the U.S. economy. By adhering to specific trade agreement standards, the Act ensures fair trade practices while fostering trust with the government. This trust enhances a contractor’s reputation and reliability, increasing their chances of securing government contracts.
ComplianceXL offers expert consulting services on Trade Agreements Act compliance. Leveraging ComplianceXL’s comprehensive compliance management platform, businesses can maintain an effective compliance data management strategy, supported by due diligence, supplier engagement, and accurate documentation.
FAQs:
1. What is TAA compliance?
TAA compliance means that a good or service is either manufactured or substantially transformed in the United States or a TAA-approved country.
2. Which countries are TAA-compliant?
TAA-compliant countries fall into four categories:
- World Trade Organization Government Procurement Agreement (WTO GPA) Countries
- Free Trade Agreement (FTA) Countries
- Least Developed Countries
- Caribbean Basin Countries
