Weakened Dollar Causes Further Rise In TAA Thresholds
Client Alert | 1 min read | 01.04.10
Effective January 1, 2010, the U.S. Trade Representative has revised upward the contract dollar thresholds at which the Buy American Act restriction is waived for the supply of goods and services or construction material from "designated countries" (i.e., those countries that have signed the WTO Agreement on Government Procurement ("GPA") or other free trade agreement with the U.S.) (74 Fed. Reg. 68907, Dec. 29, 2009). Because the GPA thresholds are expressed in "Special Drawing Rights," the USTR adjusts the thresholds biennially and the U.S. dollar's continued weakness has resulted in the third straight increase, to $203,000 for goods and services and $7,804,000 for construction contracts.
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