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What Does TAA Compliant Mean?
Last Updated: 06/28/2010
What exactly is TAA and do i have to be compliant. The definition of TAA or Trade Agreement Act was enacted July 26, 1979. This Trade Agreement Act was implemented with rules that govern trade agreements negotiated between the U.S. and other countries.

The main purposes of the Trade Agreement Act or TAA are:
  • 1. To help implement the approved trade agreements stated in the Trade Act of 1974.
  • 2. To facilitate in the growth and help maintain an open world trading system;
  • 3. To help the United States promote and expand opportunities for trade commerce internationally.
  • 4. To help improve the rules of international trading and to enforce the rules stated in the act.

The Trade Agreement Act was developed mainly for restricting procurement of certain goods and services for federal contracts. So the general meaning of TAA Compliant is: a product that is made in the United States or a "Designated Country". Only government or affiliated entities with federal contracts have to abide by the TAA restrictions. There are some countries that have negotiated a free trade agreement. Here are some examples that have a free trade agreement, Mexico, Canada, Australia and Singapore.

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