Buy American Act

The Trade Agreements Act (TAA), Buy American Act (BAA), and Build America, Buy America Act (BABA) all aim to regulate procurement and promote domestic products, but they have distinct scopes and requirements. Here’s a breakdown of each:

Trade Agreements Act (TAA)

Scope: Applies to federal procurements involving international trade.
Requirements: Allows the U.S. government to procure products from designated countries that have trade agreements with the U.S. These products must be substantially transformed in a designated country.
Purpose: Ensures that the U.S. complies with international trade agreements and promotes fair competition among trading partners

Buy American Act (BAA)

Scope: Applies to direct federal procurement.
Requirements: Federal agencies must prefer U.S.-made products. For a product to qualify, it must be manufactured in the U.S., and a certain percentage of its components must also be U.S.-made. This percentage is set to increase to 75% by 2029.
Exceptions: Waivers can be granted if the cost of domestic products is unreasonable, if they are not available in sufficient quantity or quality, or if it is in the public interest.

Build America, Buy America Act (BABA)

Scope: Applies to federal financial assistance programs for infrastructure projects.
Requirements: Expands Buy America requirements to cover a broader range of infrastructure projects funded by federal financial assistance. This includes highways, bridges, public transit, water systems, and more.
Specifics: Requires that all iron, steel, manufactured products, and construction materials used in these projects be produced in the U.S. There are stricter requirements for the use of domestic materials compared to the BAA.

Key Differences

Application:

TAA focuses on international trade and allows procurement from designated countries.
BAA is focused on direct federal procurement.
BABA applies to infrastructure projects funded by federal financial assistance.

Material Requirements:

TAA requires substantial transformation in designated countries.
BAA requires a certain percentage of U.S.-made components.
BABA has stricter requirements for the use of domestic materials, especially for infrastructure projects

Buy American Act

Trade Agreements Act (TAA)

Buy American Act (BAA)

Build America, Buy America Act (BABA)

Key Differences

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