The US Trade Agreements Act: What You Need to Know

The US Trade Agreements Act (TAA) is a law that was enacted in 1979 to promote international trade and ensure that government purchases are made from US companies or from countries with whom the US has a trade agreement. The TAA applies to all federal agencies and their contractors and requires that they only procure products made in the US or in countries that have a trade agreement with the US.

The TAA ensures that the products purchased by the government are of high quality and have been produced under fair labor practices. The Act also ensures that US companies have a fair opportunity to compete for government contracts. Additionally, the TAA prohibits the use of certain products, such as those made by countries that are known to engage in unfair trade practices or use forced labor.

To comply with the TAA, companies must ensure that their products are made in the US or in a designated country with whom the US has a trade agreement. The designated countries are listed in the TAA and include countries such as Canada, Mexico, and Australia. Products that are made in other countries may still be eligible for government procurement if they are substantially transformed in the US.

The TAA has been updated several times since its inception, including most recently in 2015 when it was amended to include the Trade Preferences Extension Act of 2015. This amendment expanded the list of designated countries to include several African countries and extended the Generalized System of Preferences program that provides duty-free treatment for certain products from developing countries.

In addition to its impact on government procurement, the TAA has a significant impact on US companies that export their products. Companies that export products to countries with whom the US has a trade agreement can benefit from lower tariffs and reduced trade barriers. The TAA also encourages foreign investment in the US by providing a stable and predictable regulatory environment.

Overall, the US Trade Agreements Act plays a crucial role in promoting international trade and ensuring fair competition for government contracts. By adhering to the TAA, companies can benefit from increased access to government procurement opportunities and lower trade barriers in designated countries. As an SEO editor, it is crucial to understand the importance of the TAA and its role in promoting international trade.