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Free Trade Theory And How It Effects My Job

1253 words - 6 pages

My organization is not competitive and has no opportunity in regards to Free Trade. However, Free Trade does impact the businesses I assist in relation to Government Contracting.
Any business doing government contracting has to be aware of the “Buy American Act.” (BAA) This act restricts the purchase of supplies that are not domestic end products for use within the United States. A foreign end product may be purchased if the contracting officer determines that the price of the lowest domestic offer is unreasonable or if another exception applies. The (BAA) is a preference for American goods designed to protect domestic labor. It was enacted in 1933 and has been amended four times. ...view middle of the document...

The BAA uses a two part test to define a domestic end product or domestic construction material. Meaning manufactured in the US and using a formula based on the cost of domestic components. The component test has been waived for procurement of commercially available of the shelf items. Under the trade agreements, the test to determine country of origin is substantial transformation or, transforming an article into a new and different article of commerce with a name and character or use distinct form the original article. The place of manufacture” means the place where an end product is assembled out of components, or otherwise made or processed from raw materials into the finished product that is to be provided to the Government. If a product is disassembled and reassembled, the place of reassembly is not the place of manufacture. When using funds appropriated under the American Recovery and Reinvestment Act (ARRA) of 2009, the definition of domestic manufactured construction material requires manufacture in the “US but does not include a requirement with regard to the origin of the components. If construction material consists predominantly of iron or steel, the iron or steel must be produced in the US.
The following table illustrates comprehensive procedures for offer evaluation and examples. The World Trade Organization Government Procurement Agreement (WTO GPA) and each Free Trade Agreement (FTA) there is a US schedule that lists services that are excluded from the agreement in procurements by the US. Procurement of the following services are excluded from coverage by the US schedule of the WTO GPA or a FTA as indicted in the table:
The Service (Federal Service Codes from the Federal Procurement Data System Product/Service Code Manual are indicated in parentheses for some services.) WTO GPA and KOREA FTA Bahrain FTA, CAFTA-DR, Chile FTA, Colombia FTA, NAFTA, Oman FTA, Panama FTA, and Peru FTA Singapore FTA Australia and Morocco FTA
(1) All services purchased in support of military services overseas. X X X X
(2)(i) Automatic data processing (ADP) telecommunications and transmission services (D304), except enhance (i.e., value-added) telecommunications services X X
(2)(ii) ADP teleprocessing and timesharing services (D305), telecommunication network management services (D316), automated news services, data services or other information services (D317), and other ADP and telecommunications services (D399). X X
(2)(iii) Basic telecommunications network services (i.e., voice telephone services, packet-switched data transmission services, circuit-switched data transmission services, telex services, telegraph services, facsimile services, and private leased circuit services, but not information services, as defined in 47 U.S.C. 153(20) * * X X
(3) Dredging X X X X
(4)(i) Operation and management contracts of certain Government or privately owned facilities used for Government purposes, including Federally Funded...

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