Rule2026-04912
Federal Acquisition Regulation: Trade Agreements Thresholds
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 13, 2026
Effective
March 13, 2026
Issuing agencies
Management and Budget OfficeFederal Procurement Policy OfficeDefense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
OFPP, DoD, GSA, and NASA (collectively referred to as the Federal Acquisition Regulatory Council, or FAR Council) are issuing a final rule amending the Federal Acquisition Regulation (FAR) to incorporate revised thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative.
Full Text
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<title>Federal Register, Volume 91 Issue 49 (Friday, March 13, 2026)</title>
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[Federal Register Volume 91, Number 49 (Friday, March 13, 2026)]
[Rules and Regulations]
[Pages 12488-12491]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04912]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22, 25, and 52
[FAC 2026-01, FAR Case 2025-007; Docket No. 2025-0007; Sequence No. 1]
RIN 9000-AO80
Federal Acquisition Regulation: Trade Agreements Thresholds
AGENCY: Office of Federal Procurement Policy (OFPP), Office of
Management and Budget (OMB); Department of Defense (DoD); General
Services Administration (GSA); and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
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SUMMARY: OFPP, DoD, GSA, and NASA (collectively referred to as the
Federal Acquisition Regulatory Council, or FAR Council) are issuing a
final rule amending the Federal Acquisition Regulation (FAR) to
incorporate revised thresholds for application of the World Trade
Organization Government Procurement Agreement and the Free Trade
Agreements, as determined by the United States Trade Representative.
DATES: Effective March 13, 2026.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
<a href="/cdn-cgi/l/email-protection#db9d9a89abb4b7b2b8a29bbca8baf5bcb4ad"><span class="__cf_email__" data-cfemail="10565142607f7c797369507763713e777f66">[email protected]</span></a> or call 202-969-4075. For information pertaining to
status or publication schedules, contact the Regulatory Secretariat
Division at 202-501-4755 or <a href="/cdn-cgi/l/email-protection#73342032211614201610331400125d141c05"><span class="__cf_email__" data-cfemail="b3f4e0f2e1d6d4e0d6d0f3d4c0d29dd4dcc5">[email protected]</span></a>. Please cite FAC 2026-01,
FAR Case 2025-007.
SUPPLEMENTARY INFORMATION:
I. Background
Approximately every two years, the trade agreements thresholds for
the World Trade Organization Government Procurement Agreement (WTO GPA)
and the free trade agreements (FTAs) are adjusted according to
predetermined formulae under the agreements. These thresholds are
effective as of January 1, 2026. On January 2, 2026, and February 3,
2026, (91 FR 188 and 91 FR 5019, respectively), the United States Trade
Representative (USTR) published new procurement thresholds.
[[Page 12489]]
The United States Trade Representative has specified the following
new thresholds:
----------------------------------------------------------------------------------------------------------------
Supply contract Service contract
Trade agreement (equal to or (equal to or Construction Ccontract
exceeding) exceeding) (equal to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA......................................... $174,000 $174,000 $6,683,000
FTAs:
Australia FTA............................... 105,767 105,767 6,683,000
Bahrain FTA................................. 174,000 174,000 13,749,689
CAFTA-DR (Costa Rica, Dominican Republic, El 105,767 105,767 6,683,000
Salvador, Guatemala, Honduras, and
Nicaragua).................................
Chile FTA................................... 105,767 105,767 6,683,000
Colombia FTA................................ 105,767 105,767 6,683,000
Korea FTA................................... 100,000 100,000 6,683,000
Morocco FTA................................. 174,000 174,000 6,683,000
USMCA:
--Mexico........................................ 105,767 105,767 13,749,689
Oman FTA........................................ 174,000 174,000 13,749,689
Panama FTA...................................... 174,000 174,000 6,683,000
Peru FTA........................................ 174,000 174,000 6,683,000
Singapore FTA................................... 105,767 105,767 6,683,000
Israeli Trade Act............................... 50,000 ................. ........................
----------------------------------------------------------------------------------------------------------------
II. Discussion and Analysis
This final rule implements the new thresholds in FAR subpart 25.4,
Trade Agreements, and other sections in the FAR that include trade
agreements thresholds (i.e., FAR 22.1503, 25.202, 25.402, 25.603,
25.1101, and 25.1102).
In addition, changes are required to the provision at FAR 52.204-8,
Annual Representations and Certifications, and the clause at FAR
52.222-19, Child Labor-Cooperation with Authorities and Remedies, with
conforming changes to the clause dates in FAR 52.212-5, Contract Terms
and Conditions Required to Implement Statutes or Executive Orders-
Commercial Products and Commercial Services, and FAR 52.213-4, Terms
and Conditions-Simplified Acquisitions (Other Than Commercial Products
and Commercial Services).
III. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is 41 U.S.C.
1707. Subsection (a)(1) of 41 U.S.C. 1707 requires that a procurement
policy, regulation, procedure, or form (including an amendment or
modification thereof) must be published for public comment if it
relates to the expenditure of appropriated funds and has either a
significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure, or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment,
because it only adjusts the thresholds according to predetermined
formulae to adjust for changes in economic conditions, thus maintaining
the status quo, without significant effect beyond the internal
operating procedures of the Government and without a significant cost
or administrative impact on contractors or offerors.
IV. Expected Impact of the Rule
This final rule will adjust the thresholds for application of the
WTO GPA and FTAs, as determined by the USTR. For acquisitions covered
by the WTO GPA or FTAs, the USTR has waived the Buy American statute
and other discriminatory provisions for eligible products. As a result,
eligible products and services will receive equal consideration with
domestic offers if the estimated value of the contract meets or exceeds
the new thresholds set by the USTR. This rule is not expected to
significantly impact domestic offerors or offerors covered by the WTO
GPA or a FTA because the threshold adjustments made under this rule
simply accommodate changes in economic conditions, while maintaining
the status quo.
V. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products (Including Commercially
Available Off-the-Shelf (COTS) Items) or for Commercial Services
This rule amends the FAR to make minor revisions in the thresholds
for application of the WTO GPA and the FTAs. The revisions do not add
any new burdens or, except for the thresholds changes themselves,
impact applicability of clauses and provisions at or below the
simplified acquisition threshold, to acquisitions of commercial
products (including commercially available off-the-shelf items), or to
acquisitions of commercial services.
VI. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
VII. Executive Order 14192
This rule is not an E.O. 14192 regulatory action because this rule
is not significant under E.O. 12866. Thus, this rule is considered
neither regulatory nor deregulatory for purposes of E.O. 14192.
VIII. Congressional Review Act
Pursuant to the Congressional Review Act, the FAR Council will send
this rule to each House of the Congress and to the Comptroller General
of the United States. The Office of Information and Regulatory Affairs
(OIRA) in the Office of Management and Budget has determined that this
rule does not meet the definition in 5 U.S.C. 804(2).
[[Page 12490]]
IX. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section III of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612) are
not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
X. Paperwork Reduction Act
This rule affects the information collection requirements in the
provisions at FAR 52.225-2, 52.225-4, 52.225-6, and 52.225-10, and the
clauses at FAR 52.225-9, 52.225-11, 52.225-21, and 52.225-23, currently
approved under OMB Control Number 9000-0024, entitled ``Buy American
Act, Trade Agreements, and Duty-Free Entry,'' in accordance with the
Paperwork Reduction Act (44 U.S.C. 3501-3521). The impact, however, is
negligible, because the threshold changes are in line with inflation
and maintain the status quo. As a result, there is no change to the
estimated burden.
List of Subjects in 48 CFR Parts 22, 25, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, OFPP, DoD, GSA, and NASA amend 48 CFR parts 22, 25, and
52 as set forth below:
0
1. The authority citation for 48 CFR parts 22, 25, and 52 continues to
read as follows:
Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C.
chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C.
3016); and 51 U.S.C. 20113.
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.1503 [Amended]
0
2. In section 22.1503 amend paragraph (b)(2) by removing ``$102,280''
and adding ``$105,767'' in its place.
PART 25--FOREIGN ACQUISITION
25.202 [Amended]
0
3. In section 25.202 amend paragraph (c) by removing ``$6,708,000'' and
adding ``$6,683,000'' in its place.
0
4. Amend section 25.402 in paragraph (b) by revising table 1 to read as
follows:
25.402 General.
* * * * *
(b) * * *
Table 1--to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
Supply contract Service contract
Trade agreement (equal to or (equal to or Construction contract
exceeding) exceeding) (equal to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA......................................... $174,000 $174,000 $6,683,000
FTAs:
Australia FTA............................... 105,767 105,767 6,683,000
Bahrain FTA................................. 174,000 174,000 13,749,689
CAFTA-DR (Costa Rica, Dominican Republic, El 105,767 105,767 6,683,000
Salvador, Guatemala, Honduras, and
Nicaragua).................................
Chile FTA................................... 105,767 105,767 6,683,000
Colombia FTA................................ 105,767 105,767 6,683,000
Korea FTA................................... 100,000 100,000 6,683,000
Morocco FTA................................. 174,000 174,000 6,683,000
USMCA:
--Mexico.................................... 105,767 105,767 13,749,689
Oman FTA.................................... 174,000 174,000 13,749,689
Panama FTA.................................. 174,000 174,000 6,683,000
Peru FTA.................................... 174,000 174,000 6,683,000
Singapore FTA............................... 105,767 105,767 6,683,000
Israeli Trade Act........................... 50,000 ................. ........................
----------------------------------------------------------------------------------------------------------------
25.603 [Amended]
0
5. Amend section 25.603 by removing from paragraph (c)(1)
``$6,708,000'' and adding ``$6,683,000'' in its place.
25.1101 [Amended]
0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(iii) ``$102,280'' and adding
``$105,767'' in its place; and
0
b. Removing from paragraph (b)(2)(iii) ``$102,280'' and adding
``$105,767'' in its place.
25.1102 [Amended]
0
7. Amend section 25.1102 by--
0
a. Removing from the introductory text of paragraphs (a) and (c)
``$6,708,000'' and adding ``$6,683,000'' in their places; and
0
b. Removing from paragraphs (c)(3) and (d)(3) ``$6,708,000'' and
``$13,296,489'' and adding ``$6,683,000'' and ``$13,749,689'' in their
places, respectively.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Amend section 52.204-8 by--
0
a. Revising the date of the provision; and
0
b. Removing from paragraph (c)(1)(xxi)(C) ``$102,280'' and adding
``$105,767'' in its place.
The revision reads as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
Annual Representations and Certifications (MAR 2026)
* * * * *
0
9. Amend section 52.212-5 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(32) ``(JAN 2025)'' and adding ``(MAR
2026)'' in its place.
The revision reads as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Products and Commercial Services.
* * * * *
[[Page 12491]]
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Products and Commercial Services (MAR
2026)
* * * * *
0
10. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(1)(iii) ``(JAN 2025)'' and adding ``(MAR
2026)'' in its place.
The revision reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Products and Commercial Services).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Products and Commercial Services) (MAR 2026)
* * * * *
0
11. Amend section 52.222-19 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (a)(2) ``$102,280'' and adding ``$105,767''
in its place.
The revision reads as follows:
52.222-19 Child Labor--Cooperation with Authorities and Remedies.
* * * * *
Child Labor--Cooperation With Authorities and Remedies (MAR 2026)
* * * * *
[FR Doc. 2026-04912 Filed 3-12-26; 8:45 am]
BILLING CODE 6820-61-P
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