The Federal Acquisition Regulation (FAR) is the central, standardised set of rules governing procurement by US federal agencies. It sets out how public contracts are awarded, what requirements apply, and how suppliers must qualify for tenders. Individual agencies have supplementary regulations – in the case of the General Services Administration (GSA), this is the GSAR (GSA Acquisition Regulation), which supplements the FAR with specific internal procurement rules.
Two FAR clauses in particular are crucial for assessing compliance with the Trade Agreements Act (TAA). Clause FAR 52.225-5 (Trade Agreements) defines which countries are considered eligible origins and when products are eligible for procurement under international trade agreements. It thus forms the legal basis for the so-called ‘Trade Agreements’ preference in US tenders. In addition, FAR 52.225-6 (Trade Agreements Certificate) regulates the mandatory declaration by suppliers, in which they must confirm whether the products offered originate from eligible or ineligible countries.
It is also important to note that the FAR list of countries is updated regularly and is based on international trade agreements. As a result, the classification of individual countries may change over time. Companies that regularly participate in US tenders must therefore monitor these changes on an ongoing basis to avoid compliance risks.
