The Trade Agreements Act (TAA) Threshold Explained

The Trade Agreements Act (TAA) is a federal law that governs the procurement of goods and services by the US government. This law requires that all goods and services procured by the US government must be manufactured or substantially transformed in the United States or a designated country. The TAA threshold is an important aspect of this law and one that many businesses must be aware of to ensure compliance with government procurement regulations.

The TAA threshold is the dollar amount at which the Trade Agreements Act applies to government procurement contracts. The current threshold for TAA compliance is $182,000 for supplies and services and $7,008,000 for construction projects. This means that any contract for goods or services above these thresholds must comply with the TAA requirements.

The TAA threshold applies to all government agencies and their contractors, including those in the private sector. Compliance with the TAA can be achieved by importing goods from designated countries, such as Canada, Mexico, and certain countries in Europe and Asia, or by manufacturing the goods domestically.

It is important to note that the TAA threshold may change over time as the federal government adjusts its procurement policies. Businesses that work with the government should stay up-to-date on any changes to the TAA threshold and adjust their procurement practices accordingly.

In conclusion, the TAA threshold is an important aspect of government procurement regulations that businesses must be aware of when working with the government. By ensuring compliance with the TAA requirements, businesses can access lucrative government contracts while also supporting US manufacturing and trade policies.