FAR Rule Updates Trade Agreement Thresholds

Regulations.gov Proposed Rules

Published March 13th, 2026

Detected March 14th, 2026

Summary

The Federal Acquisition Regulatory Council has issued a final rule amending the Federal Acquisition Regulation (FAR) to adjust trade agreement thresholds. These adjustments are based on predetermined formulae under the World Trade Organization Government Procurement Agreement and Free Trade Agreements. The rule becomes effective on March 13, 2026.

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What changed

This final rule amends the Federal Acquisition Regulation (FAR) to adjust the thresholds for the World Trade Organization Government Procurement Agreement and Free Trade Agreements. These adjustments are determined by the United States Trade Representative according to predetermined formulae within the agreements. The rule is part of Federal Acquisition Circular (FAC) 2026-01 and is issued by OFPP, DoD, GSA, and NASA.

Regulated entities involved in government contracting must be aware of these updated thresholds, which take effect on March 13, 2026. Compliance with the revised thresholds is required for all applicable procurements on or after this date. Failure to adhere to the adjusted thresholds could result in non-compliance with trade agreements and potential procurement challenges.

What to do next

Review updated trade agreement thresholds in the Federal Acquisition Regulation.
Ensure procurement processes and systems reflect the new thresholds effective March 13, 2026.

Source document (simplified)

Content

ACTION:

Summary presentation of a final rule.

SUMMARY:

This document summarizes the Federal Acquisition Regulation (FAR) rules agreed to by OFPP, DoD, GSA, and NASA (collectively
referred to as the Federal Acquisition Regulatory Council) in this Federal Acquisition Circular (FAC) 2026-01. A companion
document, the Small Entity Compliance Guide (SECG), is published elsewhere in the Rules section of this issue of the
Federal Register
.

DATES:

For effective dates see the separate documents published in the rules section of this issue of the
Federal Register
.

ADDRESSES:

The FAC, including the SECG, is available at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT:

For clarification in relation to the FAR cases listed in the table below, contact FARPolicy@gsa.gov or call 202-969-4075. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division
at 202-501-4755 or GSARegSec@gsa.gov.

| Subject | FAR case |
| --- | --- |
| Trade Agreements Thresholds | 2025-007 |

SUPPLEMENTARY INFORMATION:

A summary for the FAR rule follows. For the actual revisions and/or amendments made by this FAR rule, refer to the specific
subject set forth in the document following this summary. FAC 2026-01 amends the FAR as follows:

Trade Agreements Thresholds (FAR Case 2025-007)

This final rule amends the Federal Acquisition Regulation to adjust the thresholds for application of the World Trade Organization
Government Procurement Agreement and the Free Trade Agreements as determined by the United States Trade Representative, according
to predetermined formulae under the agreements.

William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy. Federal Acquisition Circular (FAC) 2026-01 is issued under the authority of the Administrator for Federal Procurement Policy,
the Secretary of Defense, the Administrator of General Services, and the Administrator of National Aeronautics and Space Administration.

Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2026-01
is effective March 13, 2026.

Kevin R. Rhodes, Administrator for Federal Procurement Policy Office of Management and Budget. John M. Tenaglia, Principal Director, Defense Pricing, Contracting, and Acquisition Policy, Department of Defense. Jeffrey A. Koses, Senior Procurement Executive/Deputy CAO, Office of Acquisition Policy, U.S. General Services Administration. Marvin L. Horne, Acting Senior Procurement Executive/Deputy CAO, Assistant Administrator for Procurement, National Aeronautics and Space Administration. [FR Doc. 2026-04911 Filed 3-12-26; 8:45 am] BILLING CODE 6820-61-P