Class Deviation 2020-O0019
United States-Mexico-Canada Agreement Revision 2

Effective January 1, 2022, this class deviation revises and supersedes the class deviation issued on August 14, 2020. The revision is necessary to update the trade agreements thresholds as published by the U.S. Trade Representative in the Federal Register, to be effective January 1, 2022. The thresholds are subject to revision every two years, according to predetermined formulae established under the agreements to account for changes in economic conditions.

This class deviation implements the United States-Mexico-Canada Agreement (USMCA), as enacted by Congress in the United States-Mexico-Canada Agreement Implementation Act (Pub. L. 116-113). The USMCA supersedes the North American Free Trade Agreement (NAFTA). Chapter 13 of the USMCA (government procurement) applies only to the United States and Mexico; as a result, Canada is no longer a Free Trade Agreement country.

Contracting officers shall comply with the following deviations from the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) that implement the USMCA:

  • References in the FAR and DFARS to NAFTA and 19 U.S.C. 3301 note are replaced by references to the USMCA and 19 U.S.C. chapter 29 (sections 4501-4732), respectively.
  • “Canada” is removed from all listings of Free Trade Agreement countries in the FAR and DFARS, to include Table 1 at FAR 25.402(b), where Canada’s unique threshold of $25,000 is no longer applicable.

Contracting officers shall use the provisions and clauses in attachments 1 through 7 of this deviation, as prescribed in the attachments, in lieu of the following FAR and DFARS provisions and clauses:

  • FAR 52.222-19, Child Labor—Cooperation with Authorities and Remedies (attachment 1).
  • FAR 52.225-11, Buy American—Construction Materials Under Trade Agreements (Basic and Alternate I) (attachment 2).
  • DFARS 252.225-7013, Duty-Free Entry (attachment 3).
  • DFARS 252.225-7017, Photovoltaic Devices, and DFARS 252.225-7018, Photovoltaic Devices—Certificate (attachment 4).
  • DFARS 252.225-7021, Trade Agreements (Basic and Alternate II) (attachment 5).
  • DFARS 252.225-7035, Buy American—Free Trade Agreements—Balance of Payments Program Certificate (Basic and Alternates II, IV, and V), and DFARS 252.225-7036, Buy American—Free Trade Agreements—Balance of Payments Program (Basic and Alternates II, IV, and V) (attachment 6).
  • DFARS 252.225-7045, Balance of Payments Program—Construction Material Under Trade Agreements (Basic and Alternates I, II, and III) (attachment 7).

Contracting officers shall not use the following clauses:

  • DFARS 252.225-7035, Buy American—Free Trade Agreements—Balance of Payments Program Certificate—Alternates I and III.
  • DFARS 252.225-7036, Buy American—Free Trade Agreements—Balance of Payments Program—Alternates I and III.

In lieu of the threshold at FAR 22.1503(b)(1), the requirements of FAR subpart 22.15 that result from the appearance of any end product on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor ( do not apply to a solicitation or contract if the identified country of origin on the List is Canada, and the anticipated value of the acquisition is $183,000 or more. The requirements of FAR 27.204-1, Patented Technology under the North American Free Trade Agreement, and the associated emergency acquisition flexibility at FAR 18.120 are no longer applicable or authorized. Contracting officers are advised to consult with legal counsel when questions arise with regard to the use of patented technology under the USMCA.

This class deviation remains in effect until incorporated in the FAR and DFARS or otherwise rescinded.

Effective Date: January 1, 2022 (7 months ago)
Expire Date: None Given
Official Documents: Memo
Official Attachments: 1 2 3 4 5 6 7
This is not a government website. Visitors should not rely upon information contained on this website as a substitute for consulting official government publications.1