Free guide · Trade Agreements Act · FAR 25.003 & 25.402 · Checked 27 October 2026
Can the government buy it?
On federal contracts covered by the Trade Agreements Act, a product has to be made in the US or in a designated country. Taiwan is designated. China and Vietnam are not. Pick the country where your product is made to see where it stands.
How TAA works
Three questions decide it.
The Trade Agreements Act of 1979 lets federal agencies buy foreign products only from countries that give US firms reciprocal access to their own government markets. Below the threshold, the Buy American Act applies instead.
- 1 · Is the buy covered?Supply and service contracts at or above $174,000 (WTO GPA, calendar years 2026 and 2027; FAR 25.402) are covered. GSA Multiple Award Schedule contracts carry the Trade Agreements clause, so schedule products must comply on every order, large or small.
- 2 · Where is it made?Origin is where the product was last substantially transformed into a new article with a new name, character or use. Final assembly or re-boxing alone usually does not move origin. CBP issues final determinations on request.
- 3 · Is that country designated?US-made and designated country end products qualify. Everything else is excluded from the covered buy, however good the price.
The designated country list
FAR 25.003, as of 27 October 2026.
Four groups. A country in any one of them is designated. The list changes when agreements change, so check acquisition.gov before you bid.
WTO Government Procurement Agreement
Free Trade Agreement countries
Least developed countries
Caribbean Basin countries
Sources
- FAR 25.003 Definitions (designated country)
- FAR 25.402 General (thresholds)
- Federal Register, 13 March 2026: Trade Agreements Thresholds, effective 1 January 2026
- 19 CFR Part 177, Subpart B: CBP government procurement final determinations
A guide, not legal advice. The contracting officer, the solicitation and any CBP final determination govern a real bid.
Why this matters to a sourcing plan
Same product, different answer, depending on the factory’s country.
Many products sold to federal buyers are tooled and molded in Asia. If the work is substantially transformed in China or Vietnam, the product cannot go on a GSA schedule or into a covered contract. Made in Taiwan, the same product can. Jack runs tooling and production with qualified partner factories in Taiwan and Vietnam, and plans origin up front when a program is headed for government buyers.
What is a TAA designated country?
A country whose end products the US government may buy on contracts covered by the Trade Agreements Act. FAR 25.003 lists them: World Trade Organization Government Procurement Agreement (WTO GPA) countries, Free Trade Agreement countries, least developed countries and Caribbean Basin countries.
Is Taiwan TAA compliant?
Yes. Taiwan is a WTO GPA party, listed in FAR 25.003 as 'the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)'. A product substantially transformed in Taiwan is a designated country end product.
Are China and Vietnam TAA compliant?
No. Neither China nor Vietnam is on the FAR 25.003 designated country list, so their end products cannot be offered on TAA-covered contracts. India, Malaysia, Thailand, Indonesia and the Philippines are not on the list either.
What is the TAA threshold for 2026?
$174,000 for supply and service contracts covered by the WTO GPA, effective 1 January 2026 for calendar years 2026 and 2027 (FAR 25.402, as updated in the Federal Register on 13 March 2026). Some Free Trade Agreements have lower thresholds.
Do GSA schedules require TAA compliance?
Yes. GSA Multiple Award Schedule contracts include the Trade Agreements clause, so every product offered on a schedule must be a US-made or designated country end product, whatever the size of an individual order.
How is country of origin decided for TAA?
By substantial transformation: the country where the item became a new and different article of commerce with a new name, character or use. Simple assembly, packaging or re-labeling usually does not change origin. CBP issues final determinations on request.
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Related
Selling to the government and making it in Asia?
Send the part and the contract it is headed for. Jack will tell you plainly whether a Taiwan program fits, and what moving the tooling would take.
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