Government Contracts Blog
Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=66584e7e-592a-43a5-b1c3-7ba6884822fe
Government Contracts Blog Government Contracts Blog
Posted at 10:12 10:12 AM AM on 6, 2009 2009 by by Sheppard Sheppard Mullin Mullin Posted at on July July 6,
Country Origin Countryofof Origin "Made Taiwan" Will Will Soon Soon Be TAA "MadeInIn Taiwan" BeCompliant TAA Compliant China to Dawdle ChinaContinues Continues to Dawdle Costa andand Oman also Recognized CostaRica, Rica,Peru, Peru, Oman also Recognized 2009, Taiwan Taiwan (aka Chinese Chinese Taipei) Taipei) took the On June June 16, 2009, the penultimate penultimate step step in in acceding acceding to to the the World Trade Organization's Government Procurement Agreement (WTO GPA), which will World Trade Government Procurement Agreement (WTO GPA), which will under the the Federal FederalAcquisition Acquisition Regulation eventually grant Taiwan "free "free trade trade partner" status under (FAR) and allow companies selling to the U.S. Government to deliver (FAR) and allow companies selling to the U.S. Government to deliver products products that that are are expected to to be be complete complete by by July 15, manufactured in in Taiwan. Taiwan. The Theaccession accession process process is expected 15, 2009. After that date, date, and andonce oncethe theFAR FARisisupdated updatedaccordingly, accordingly,"Made "MadeininTaiwan" Taiwan"will will finally finally an approved approved country country of of origin origin for be an for products products and and services services delivered to to the the U.S. U.S. Government. Government.
Taiwan's Taiwan'sAccession Accession Process Process accessionto tothe theGPA GPAbegan beganinin2002 2002when whenTaiwan Taiwanformally formally joined joined the the WTO. WTO. Shortly Taiwan's accession thereafter, Taiwan submitted a proposal to accede to the GPA, allowing other foreign thereafter, Taiwan submitted a proposal to accede to the GPA, allowing other foreign countries countries market, while while simultaneously the opportunity to compete in Taiwan's public procurement market, permitting same countries' countries'foreign foreign procurement procurementmarkets markets–- including including permitting Taiwan Taiwan to to compete compete in in those those same coveted U.S. U.S. market, market,which which is is valued valued at at more morethan than$200 $200billion. billion. In May 2009, Taiwan's the much coveted legislature approved Taiwan's GPA proposal. And on June 8, 2009, 2009, Taiwan's Taiwan's President PresidentMa Ma YingYingformally finalized proposal,forwarding forwarding itit to the the WTO WTO in Geneva for final final jeou formally finalizedthe the accession accession proposal, Geneva for papers were were received received by by the the WTO WTO on June June 16, 16, 2009, 2009, triggering triggering aa approval. Taiwan's Taiwan's accession accession papers mandatory 30-day waiting period, after which will be which time time the the accession accession will be completed.
Effective will have Effective July July 15, 15, 2009, Taiwan will have formally formallyacceded acceded to the WTO GPA, granting Taiwan accessto to U.S. U.S. procurement procurement markets. markets. For For supply supply or service contracts valued at $194,000 or more, access and for construction contracts valued at $7,443,000 "Made and for construction contracts valued at $7,443,000 or or more, more, products products or or services services that that are are "Made Agreements Act Act (19 U.S.C. §§ in Taiwan" Taiwan"will willsoon soonbe beconsidered consideredthe the same same under under the Trade Agreements §§ 2501-2581) as as products products or or services servicesthat thatare are"Made "Madeininthe theU.S.A." U.S.A." (Click (Click here for our previous discussion on on the theWTO WTO GPA GPA and and the theTAA). TAA). discussion
China's China's Long Long Process Process Continues
Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=66584e7e-592a-43a5-b1c3-7ba6884822fe
While Taiwan's still eager While Taiwan'saccession accession is is welcome welcome news, news, many many companies companies are are still eager for for updates updates on on China's status. While China is a member of the WTO, it has not yet acceded to the terms of the China's status. While China is a member of the WTO, it has not yet acceded to the terms of the remains "in "in process," process," as asitit is is currently currently revising GPA. China's China's status status remains revising its its proposals proposals to to the the WTO. WTO. Many Many in in the the international international community community are are frustrated with how slowly slowlyChina China isis proceeding proceeding process –- China to proceed proceed "as "assoon soonas aspossible" possible"when whenititjoined joined the theWTO WTO in through the the process China agreed agreed to formal GPA GPA proposal to the the WTO WTO until 2001 but did not present present aa formal until December December 2007. This 2007 proposal was considered considered "disappointing" "disappointing" by China to proposal was by many many commentators, commentators, who who encouraged encouraged China to revise it promptly. promptly.To Todate, date,China Chinahas has not notpresented presented an an updated updated revision, although although Chinese Chinese officials officialscontinue continueto toassure assure the the international international community communitythat thataccession accession to to the the GPA GPA remains remains aa priority. Exactly priority. Exactlywhen whenChina China will willcomplete completethis thisprocess process is is unclear. unclear. However, for for the the immediate future, "Made in China" remains a "Scarlet Letter" marking for most federal in China" remains for most PerhapsTaiwan's Taiwan's recent recentsteps stepswill will spur China to action. procurements. Perhaps
Other Other Free Free Trade Trade Agreements Agreements In In addition addition to to the the welcome welcome news news regarding regarding Taiwan, Taiwan, the the FAR FARwas was recently recentlyamended amended to to recognize recognize number of of other (FTAs) that 74 aa number other free free trade trade agreements agreements (FTAs) that have have been been recently recently approved. approved. See See 74 Federal Register 28426. Under the new rules, products and services from Costa Rica, Peru, and Federal Register 28426. Under the new rules, products and services from Costa Rica, Peru, Oman are approved "designated "designated countries" countries" under under the theTAA. TAA. Oman are considered approved
Conclusion recent FTA FTA changes (including Taiwan's pending pending accession accessiontotothe theWTO WTOGPA) GPA) will will be The recent changes (including be implemented under under the the regulations regulations based basedon onthe thefollowing followingTAA TAA dollar thresholds: dollar thresholds:
Trade Agreement WTO GPA FTAs (including (including Taiwan) Taiwan)
Supplies
Services
Construction
$194,000 $194,000
$194,000 $194,000
$7,443,000 $7,443,000
67,826 67,826
67,826 67,826
7,443,000 7,443,000
Oman FTA
194,000 194,000
194,000 194,000
8,817,449 8,817,449
Peru FTA
194,000 194,000
194,000 194,000
7,443,000 7,443,000
CAFTA CAFTA FTA FTA (Central (Central American FTA) (including Costa Rica)
Authored by: David David S. S. Gallacher (202) 218-0033 [email protected]
Government Contracts Blog Government Contracts Blog
Posted at 10:12 10:12 AM AM on 6, 2009 2009 by by Sheppard Sheppard Mullin Mullin Posted at on July July 6,
Country Origin Countryofof Origin "Made Taiwan" Will Will Soon Soon Be TAA "MadeInIn Taiwan" BeCompliant TAA Compliant China to Dawdle ChinaContinues Continues to Dawdle Costa andand Oman also Recognized CostaRica, Rica,Peru, Peru, Oman also Recognized 2009, Taiwan Taiwan (aka Chinese Chinese Taipei) Taipei) took the On June June 16, 2009, the penultimate penultimate step step in in acceding acceding to to the the World Trade Organization's Government Procurement Agreement (WTO GPA), which will World Trade Government Procurement Agreement (WTO GPA), which will under the the Federal FederalAcquisition Acquisition Regulation eventually grant Taiwan "free "free trade trade partner" status under (FAR) and allow companies selling to the U.S. Government to deliver (FAR) and allow companies selling to the U.S. Government to deliver products products that that are are expected to to be be complete complete by by July 15, manufactured in in Taiwan. Taiwan. The Theaccession accession process process is expected 15, 2009. After that date, date, and andonce oncethe theFAR FARisisupdated updatedaccordingly, accordingly,"Made "MadeininTaiwan" Taiwan"will will finally finally an approved approved country country of of origin origin for be an for products products and and services services delivered to to the the U.S. U.S. Government. Government.
Taiwan's Taiwan'sAccession Accession Process Process accessionto tothe theGPA GPAbegan beganinin2002 2002when whenTaiwan Taiwanformally formally joined joined the the WTO. WTO. Shortly Taiwan's accession thereafter, Taiwan submitted a proposal to accede to the GPA, allowing other foreign thereafter, Taiwan submitted a proposal to accede to the GPA, allowing other foreign countries countries market, while while simultaneously the opportunity to compete in Taiwan's public procurement market, permitting same countries' countries'foreign foreign procurement procurementmarkets markets–- including including permitting Taiwan Taiwan to to compete compete in in those those same coveted U.S. U.S. market, market,which which is is valued valued at at more morethan than$200 $200billion. billion. In May 2009, Taiwan's the much coveted legislature approved Taiwan's GPA proposal. And on June 8, 2009, 2009, Taiwan's Taiwan's President PresidentMa Ma YingYingformally finalized proposal,forwarding forwarding itit to the the WTO WTO in Geneva for final final jeou formally finalizedthe the accession accession proposal, Geneva for papers were were received received by by the the WTO WTO on June June 16, 16, 2009, 2009, triggering triggering aa approval. Taiwan's Taiwan's accession accession papers mandatory 30-day waiting period, after which will be which time time the the accession accession will be completed.
Effective will have Effective July July 15, 15, 2009, Taiwan will have formally formallyacceded acceded to the WTO GPA, granting Taiwan accessto to U.S. U.S. procurement procurement markets. markets. For For supply supply or service contracts valued at $194,000 or more, access and for construction contracts valued at $7,443,000 "Made and for construction contracts valued at $7,443,000 or or more, more, products products or or services services that that are are "Made Agreements Act Act (19 U.S.C. §§ in Taiwan" Taiwan"will willsoon soonbe beconsidered consideredthe the same same under under the Trade Agreements §§ 2501-2581) as as products products or or services servicesthat thatare are"Made "Madeininthe theU.S.A." U.S.A." (Click (Click here for our previous discussion on on the theWTO WTO GPA GPA and and the theTAA). TAA). discussion
China's China's Long Long Process Process Continues
Document hosted at http://www.jdsupra.com/post/documentViewer.aspx?fid=66584e7e-592a-43a5-b1c3-7ba6884822fe
While Taiwan's still eager While Taiwan'saccession accession is is welcome welcome news, news, many many companies companies are are still eager for for updates updates on on China's status. While China is a member of the WTO, it has not yet acceded to the terms of the China's status. While China is a member of the WTO, it has not yet acceded to the terms of the remains "in "in process," process," as asitit is is currently currently revising GPA. China's China's status status remains revising its its proposals proposals to to the the WTO. WTO. Many Many in in the the international international community community are are frustrated with how slowly slowlyChina China isis proceeding proceeding process –- China to proceed proceed "as "assoon soonas aspossible" possible"when whenititjoined joined the theWTO WTO in through the the process China agreed agreed to formal GPA GPA proposal to the the WTO WTO until 2001 but did not present present aa formal until December December 2007. This 2007 proposal was considered considered "disappointing" "disappointing" by China to proposal was by many many commentators, commentators, who who encouraged encouraged China to revise it promptly. promptly.To Todate, date,China Chinahas has not notpresented presented an an updated updated revision, although although Chinese Chinese officials officialscontinue continueto toassure assure the the international international community communitythat thataccession accession to to the the GPA GPA remains remains aa priority. Exactly priority. Exactlywhen whenChina China will willcomplete completethis thisprocess process is is unclear. unclear. However, for for the the immediate future, "Made in China" remains a "Scarlet Letter" marking for most federal in China" remains for most PerhapsTaiwan's Taiwan's recent recentsteps stepswill will spur China to action. procurements. Perhaps
Other Other Free Free Trade Trade Agreements Agreements In In addition addition to to the the welcome welcome news news regarding regarding Taiwan, Taiwan, the the FAR FARwas was recently recentlyamended amended to to recognize recognize number of of other (FTAs) that 74 aa number other free free trade trade agreements agreements (FTAs) that have have been been recently recently approved. approved. See See 74 Federal Register 28426. Under the new rules, products and services from Costa Rica, Peru, and Federal Register 28426. Under the new rules, products and services from Costa Rica, Peru, Oman are approved "designated "designated countries" countries" under under the theTAA. TAA. Oman are considered approved
Conclusion recent FTA FTA changes (including Taiwan's pending pending accession accessiontotothe theWTO WTOGPA) GPA) will will be The recent changes (including be implemented under under the the regulations regulations based basedon onthe thefollowing followingTAA TAA dollar thresholds: dollar thresholds:
Trade Agreement WTO GPA FTAs (including (including Taiwan) Taiwan)
Supplies
Services
Construction
$194,000 $194,000
$194,000 $194,000
$7,443,000 $7,443,000
67,826 67,826
67,826 67,826
7,443,000 7,443,000
Oman FTA
194,000 194,000
194,000 194,000
8,817,449 8,817,449
Peru FTA
194,000 194,000
194,000 194,000
7,443,000 7,443,000
CAFTA CAFTA FTA FTA (Central (Central American FTA) (including Costa Rica)
Authored by: David David S. S. Gallacher (202) 218-0033 [email protected]
