Final rule amends Federal Acquisition Regulation
On September 13, 2012, Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) posted a final rule in the Federal Register that amends the Federal Acquisition Regulation (FAR) to implement the U.S.-Korea Free Trade Agreement (FTA), which took effect on March 15, 2012. The Republic of Korea is already party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), but this trade agreement implements a lower procurement threshold.
The final rule adds the Republic of Korea to the definition of "Free Trade Agreement country" in multiple locations in the FAR. The Republic of Korea was already listed as a designated country because it is party to the WTO GPA. The excluded services for the Korea FTA are the same as for the WTO GPA. By implementation of this Korea FTA, eligible goods and services from Korea are now covered when valued at or above $100,000, rather than at or above the WTO GPA threshold of $202,000. The threshold for the Korea FTA for construction is the same as the threshold for the WTO GPA for construction.