FAR 25.400—Scope of subpart.
Plain-English Summary
FAR 25.400 defines the scope of Subpart 25.4, which is the part of the FAR that tells agencies when and how to apply U.S. trade agreement policies in federal acquisitions. It identifies the specific trade agreements and trade-related programs covered by the subpart: the WTO Government Procurement Agreement (WTO GPA), a list of named free trade agreements (including USMCA for U.S.-Mexico procurement coverage, Chile, Singapore, Australia, Morocco, CAFTA-DR, Bahrain, Oman, Peru, Korea, Colombia, and Panama), the least developed country designation under the Trade Agreements Act for acquisitions covered by the WTO GPA, the Caribbean Basin Trade Initiative, the Israeli Trade Act, and the Agreement on Trade in Civil Aircraft. The section also points readers to agency-specific regulations for trade agreements that apply only within particular agencies. In practice, this section is a gateway provision: it does not itself set the detailed evaluation or solicitation rules, but it tells contracting personnel which acquisitions are subject to the trade agreements framework and therefore may require special product eligibility determinations, solicitation clauses, and source selection treatment. For contractors, it signals when foreign end products may be treated as eligible because of a covered agreement, and when agency-specific rules may add another layer of requirements. For contracting officers, it is the starting point for deciding whether a procurement falls under the FAR trade agreements regime or under a separate agency implementation.
Key Rules
Subpart applies to covered acquisitions
This subpart governs acquisitions that are covered by the listed trade agreements and trade-related programs. If an acquisition falls within one of these coverage categories, the policies and procedures in Subpart 25.4 apply.
WTO GPA coverage
The subpart applies to acquisitions covered by the World Trade Organization Government Procurement Agreement, as approved by Congress in the Uruguay Round Agreements Act. This is the core multilateral trade agreement referenced by the section.
Named free trade agreements
The subpart covers acquisitions under the listed FTAs, including USMCA procurement coverage for the United States and Mexico, and the Chile, Singapore, Australia, Morocco, CAFTA-DR, Bahrain, Oman, Peru, Korea, Colombia, and Panama agreements. Each agreement is included only to the extent its procurement commitments apply.
Least developed country designation
For acquisitions covered by the WTO GPA, products from countries designated as least developed countries by the U.S. Trade Representative are treated under the trade agreements framework. This expands eligibility in covered procurements beyond the core GPA parties.
Caribbean Basin Trade Initiative
For WTO GPA-covered acquisitions, end products or construction material that receive duty-free entry from designated Caribbean Basin beneficiary countries are treated as eligible products, except for Panama. This is a special eligibility rule tied to the USTR determination.
Israeli Trade Act coverage
The subpart also applies to the U.S.-Israel Free Trade Area Agreement as implemented through the Israeli Trade Act. This means procurements covered by that agreement are subject to the trade agreements policies in this subpart.
Civil aircraft agreement
The Agreement on Trade in Civil Aircraft is included through the USTR waiver of the Buy American statute. Where applicable, acquisitions for civil aircraft are treated under the trade agreements framework implemented by the Trade Agreements Act.
Agency-specific trade agreements
If a trade agreement is unique to a particular agency, this section does not list it; instead, users must consult the agency’s own regulations. The FAR recognizes that some trade agreement rules are implemented outside the general FAR text.
Responsibilities
Contracting Officer
Determine whether the acquisition is covered by one or more of the listed trade agreements or trade-related programs, and then apply Subpart 25.4 and any relevant agency-specific regulations. The contracting officer must also recognize when a procurement is outside this scope and when another agency rule may control.
Agency
Issue and maintain any agency-specific regulations for trade agreements that are unique to that agency. Agencies must ensure their supplemental rules are consistent with the FAR framework and identify when special coverage applies.
Contractor
Understand whether a solicitation or contract is subject to trade agreement coverage, because that affects product eligibility, country-of-origin treatment, and whether foreign end products may be considered acceptable. Contractors should review both FAR coverage and any agency-specific rules that may apply.
U.S. Trade Representative
Make the determinations and waivers referenced in this section, including least developed country designations, Caribbean Basin Trade Initiative treatment, and the civil aircraft waiver framework. These determinations drive which products or countries receive eligibility under the trade agreements regime.
Congress
Approve the trade agreements and implementing statutes referenced in the section, which provide the legal authority for applying these procurement policies in federal acquisitions.
Practical Implications
This section is a coverage map, not the full rulebook. Contracting officers still need to check the detailed solicitation and evaluation provisions in Subpart 25.4 and any applicable agency supplements.
A common mistake is assuming all foreign products are treated the same. Eligibility depends on whether the procurement is covered by a specific agreement and whether the product or country falls within that agreement’s scope.
USMCA coverage here is limited to procurement between the United States and Mexico; it is not a blanket rule for all USMCA parties in every procurement context.
The Caribbean Basin rule has an important exception for Panama, so users should not assume all Caribbean Basin beneficiary countries are treated identically.
Agency-specific trade agreement rules can override the practical workflow for a particular department or independent agency, so users should always check the agency supplement before finalizing a solicitation or evaluation approach.
Official Regulatory Text
(a) This subpart provides policies and procedures applicable to acquisitions that are covered by- (1) The World Trade Organization Government Procurement Agreement (WTO GPA), as approved by Congress in the Uruguay Round Agreements Act (Public Law 103-465); (2) Free Trade Agreements (FTA), consisting of- (i) USMCA (United States-Mexico-Canada Agreement, as approved by Congress in the United States-Mexico-Canada Agreement Implementation Act (Government Procurement Agreement applicable only to the United States and Mexico) ( Pub. L. 116-113 ) ( 19 U.S.C. chapter 29 (sections 4501-4732)); (ii) Chile FTA (the United States-Chile Free Trade Agreement, as approved by Congress in the United States-Chile Free Trade Agreement Implementation Act of 1993 (Pub. L. 108-77) ( 19 U.S.C. 3805 note)); (iii) Singapore FTA (the United States-Singapore Free Trade Agreement, as approved by Congress in the United States-Singapore Free Trade Agreement Implementation Act (Pub. L. 108-78) ( 19 U.S.C. 3805 note)); (iv) Australia FTA (the United States-Australia Free Trade Agreement, as approved by Congress in the United States-Australia Free Trade Agreement Implementation Act (Pub. L. 108-286) ( 19 U.S.C. 3805 note)); (v) Morocco FTA (The United States-Morocco Free Trade Agreement, as approved by Congress in the United States-Morocco Free Trade Agreement Implementation Act (Pub. L. 108-302) ( 19 U.S.C. 3805 note)); (vi) CAFTA-DR (The Dominican Republic-Central America-United States Free Trade Agreement, as approved by Congress in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (Pub. L. 109-53) ( 19 U.S.C. 4001 note)); (vii) Bahrain FTA (the United States-Bahrain Free Trade Agreement, as approved by Congress in the United States-Bahrain Free Trade Agreement Implementation Act (Pub. L. 109-169) ( 19 U.S.C. 3805 note)); (viii) Oman FTA (the United States-Oman Free Trade Agreement, as approved by Congress in the United States-Oman Free Trade Agreement Implementation Act (Pub. L. 109-283) ( 19 U.S.C. 3805 note)); (ix) Peru FTA (the United States-Peru Trade Promotion Agreement, as approved by Congress in the United States-Peru Trade Promotion Agreement Implementation Act (Pub. L. 110-138) ( 19 U.S.C. 3805 note)); (x) Korea FTA (the United States–Korea Free Trade Agreement Implementation Act (Pub. L. 112-41) ( 19 U.S.C. 3805 )); (xi) Colombia FTA (the United States–Colombia Trade Promotion Agreement Implementation Act (Pub. L. 112-42) ( 19 U.S.C. 3805 note)); and (xii) Panama FTA (the United States-Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) ( 19 U.S.C. 3805 note)); (3) The least developed country designation made by the U.S. Trade Representative, pursuant to the Trade Agreements Act ( 19 U.S.C. 2511(b)(4) ), in acquisitions covered by the WTO GPA; (4) The Caribbean Basin Trade Initiative (CBTI) (determination of the U.S. Trade Representative that end products or construction material granted duty-free entry from countries designated as beneficiaries under the Caribbean Basin Economic Recovery Act ( 19 U.S.C. 2701 , et seq .), with the exception of Panama, must be treated as eligible products in acquisitions covered by the WTO GPA); (5) The Israeli Trade Act (the U.S.-Israel Free Trade Area Agreement, as approved by Congress in the United States-Israel Free Trade Area Implementation Act of 1985 ( 19 U.S.C. 2112 note)); or (6) The Agreement on Trade in Civil Aircraft (U.S. Trade Representative waiver of the Buy American statute for signatories of the Agreement on Trade in Civil Aircraft, as implemented in the Trade Agreements Act of 1979 ( 19 U.S.C. 2513 )). (b) For application of the trade agreements that are unique to individual agencies, see agency regulations.