FAR Updates Trade Agreement Thresholds

Content

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 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. 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.

The United States Trade Representative has specified the following new thresholds:

| Trade agreement | Supply contract
(equal to orexceeding) | Service contract
(equal to orexceeding) | Construction Ccontract
(equal to orexceeding) |
| --- | --- | --- | --- |
| 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 Salvador, Guatemala, Honduras, and Nicaragua) | 105,767 | 105,767 | 6,683,000 |
| 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).

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:

Regulatory Text 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] Regulatory Text 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] Regulatory Text 3. In section 25.202 amend paragraph (c) by removing “$6,708,000” and adding “$6,683,000” in its place.

1. Amend section 25.402 in paragraph (b) by revising table 1 to read as follows:

25.402 General.

---

(b) * * *

| Trade agreement | Supply contract
(equal toor exceeding) | Service contract
(equal to orexceeding) | Construction contract
(equal toor 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 Salvador, Guatemala, Honduras, and Nicaragua) | 105,767 | 105,767 | 6,683,000 |
| 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] Regulatory Text 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] Regulatory Text 6. Amend section 25.1101 by—

a. Removing from paragraph (b)(1)(iii) “$102,280” and adding “$105,767” in its place; and

b. Removing from paragraph (b)(2)(iii) “$102,280” and adding “$105,767” in its place.

25.1102 [Amended] Regulatory Text 7. Amend section 25.1102 by—

a. Removing from the introductory text of paragraphs (a) and (c) “$6,708,000” and adding “$6,683,000” in their places; and

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

Regulatory Text 8. Amend section 52.204-8 by—

a. Revising the date of the provision; and

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)

---

1. Amend section 52.212-5 by—

a. Revising the date of the clause; and

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.

---

Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services

(MAR 2026)

---

1. Amend section 52.213-4 by—

a. Revising the date of the clause; and

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)

---

1. Amend section 52.222-19 by—

a. Revising the date of the clause; and

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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