Federal Acquisition Regulation: Trade Agreements Thresholds
The FAR Council issued a final rule updating the Trade Agreements thresholds, which determine which contracts are subject to trade agreements. The new thresholds increase from $194,000 to $200,000 for most acquisitions, and from $7,008,000 to $7,164,000 for construction. This affects small business set-asides, defense contractors, and GSA schedule holders by potentially changing the applicability of trade agreements and the use of set-asides.
Aforeworn detected this change in the Government Contracting (SAM/FAR) space on July 14, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Medium urgency. Small business set-asides, defense contractors, GSA schedule holders, federal grant recipients should confirm how it applies to their specific situation before acting. There is a time constraint attached: Effective date: March 13, 2026. Immediate action recommended for contracts not yet awarded.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Government Contracting (SAM/FAR) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The dollar thresholds for application of trade agreements under the FAR have been increased. The new thresholds are $200,000 for supplies/services and $7,164,000 for construction, up from $194,000 and $7,008,000 respectively.
Who it affects
Small business set-asides, defense contractors, GSA schedule holders, federal grant recipients
What you must do
Review current and upcoming contracts to determine if the new thresholds affect the applicability of trade agreements or set-aside eligibility. Update internal compliance checklists and procurement procedures accordingly.
Deadline
Effective date: March 13, 2026. Immediate action recommended for contracts not yet awarded.
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