2026-04912: Federal Acquisition Regulation: Trade Agreements Thresholds

Federal Register, Volume 91 Issue 49 (Friday, March 13, 2026) [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 [www.gpo.gov] [FR Doc No: 2026-04912] ----------------------------------------------------------------------- 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. -----------------------------------------------------------------------

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 [email protected] or call 202-969-4075. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755 or [email protected]. 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