XL EagleTAA (Trade Agreements Act)
TAA stands for Trade Agreements Act. The Trade Agreements Act lets the U.S. honor international trade deals in government buying. For covered purchases above a dollar threshold that is adjusted every two years, agencies may buy only U.S.-made products or products from 'designated countries,' which are mostly countries with trade agreements with the United States.
A product's origin is decided by where it was made or 'substantially transformed' into a new item. Some major manufacturing countries, including China and India, are not designated countries. GSA Schedule contracts generally require TAA-compliant products regardless of the order size.
Why it matters to a small contractor
If you resell equipment, electronics, or tools, TAA can knock out many common products. Before you offer an item on a schedule or a large supply buy, ask the manufacturer for its country of origin in writing.
Example
A small reseller wants to list a popular power tool on its GSA Schedule. The tool is made in a country that is not designated, so they choose a comparable model made in Mexico, which is a designated country.
TAA: common questions
What does TAA compliant mean?
It means the product was made or substantially transformed in the United States or a designated country. Products from non-designated countries are not compliant.
Is China a TAA designated country?
No. Products made in China are not TAA compliant. India is also not a designated country.
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