Trade Agreements Act, or TAA, is a crucial statute that holds significant influence over Multiple Award Schedule contracts. It primarily mandates contractors to supply to U.S. Government only those products that are either manufactured or “substantially transformed” within the U.S. or a TAA-designated country. This mandate thus ensures that U.S. Government primarily sources products from countries that adhere to Trade Agreements Act, thereby promoting fair and ethical international trade practices.
Covering a wide range of products and services, TAA significantly impacts the procurement process. It seeks to strike a balance between protecting domestic industries, encouraging international trade relationships, and ensuring quality and competitiveness in the products procured by the government. Contractors must be fully aware of TAA compliance when engaging in government contracting to avoid penalties and preserve their ability to participate in lucrative government contracts.
