Title 19 — Customs DutiesRelease 119-73
§2512 Authority to encourage reciprocal competitive procurement practices
Title 19 › Chapter CHAPTER 13— - TRADE AGREEMENTS ACT OF 1979 › Subchapter SUBCHAPTER I— - GOVERNMENT PROCUREMENT › § 2512
Summary
The President must block the government from buying products covered by the Agreement if those products come from a country that is not officially designated under the law, once any related waiver first takes effect. The ban does not apply if no U.S. or otherwise eligible offers are made, or if U.S. or eligible offers are not enough to meet the government’s needs. The President may also take other steps he thinks are needed to promote fair, reciprocal buying. The President can lift the ban for a country that promises to use open, competitive buying rules like the Agreement and that enforces strong anti‑bribery rules. He can let agency heads give case‑by‑case waivers when it is in the national interest, and the Secretary of Defense can waive the ban for countries that make a reciprocal deal with the Defense Department. By July 1, 1981, the President must report to the House Committees on Ways and Means and on Government Operations, and to the Senate Committees on Finance and on Governmental Affairs, about how developed countries’ refusals to cover major government buyers affect the U.S. economy and related issues. That report must study options to win fair treatment, including banning purchases by U.S. entities not covered by the Agreement and changing how chapter 83 of title 41 applies. The President must consult with the public, industry, and labor and share nonconfidential information with the advisory committees under section 2155. By October 1, 1981, he must send another report on steps to get reciprocity with major industrial countries. If new laws are needed, he must send a bill on or after January 1, 1982, after consulting the relevant congressional committees and giving them a draft. The committees should consider the bill promptly.
Full Legal Text
Title 19, §2512
Customs Duties — Source: USLM XML via OLRC
(a)(1)Subject to paragraph (2), the President, in order to encourage additional countries to become parties to the Agreement and to provide appropriate reciprocal competitive government procurement opportunities to United States products and suppliers of such products—
(A)shall, with respect to procurement covered by the Agreement, prohibit the procurement, after the date on which any waiver under section 2511(a) of this title first takes effect, of products—
(i)which are products of a foreign country or instrumentality which is not designated pursuant to section 2511(b) of this title, and
(ii)which would otherwise be eligible products; and
(B)may, with respect to procurement covered by the Agreement, take such other actions within the President’s authority as the President deems necessary.
(2)Paragraph (1) shall not apply in the case of procurements for which—
(A)there are no offers of products or services of the United States or of eligible products; or
(B)the offers of products or services of the United States or of eligible products are insufficient to fulfill the requirements of the United States Government.
(b)Notwithstanding subsection (a), but in furtherance of the objective of encouraging countries to become parties to the Agreement and provide appropriate reciprocal competitive government procurement opportunities to United States products and suppliers of such products, the President may—
(1)waive the prohibition required by subsection (a)(1) on procurement of products of a foreign country or instrumentality which has not yet become a party to the Agreement but—
(A)has agreed to apply transparent and competitive procedures to its government procurement equivalent to those in the Agreement, and
(B)maintains and enforces effective prohibitions on bribery and other corrupt practices in connection with its government procurement;
(2)authorize agency heads to waive, subject to interagency review and general policy guidance by the organization established under section 1872(a) of this title, such prohibition on a case-by-case basis when in the national interest; and
(3)authorize the Secretary of Defense to waive, subject to interagency review and policy guidance by the organization established under section 1872(a) of this title, such prohibition for products of any country or instrumentality which enters into a reciprocal procurement agreement with the Department of Defense.
(c)(1)On or before July 1, 1981, the President shall report to the Committee on Ways and Means and the Committee on Government Operations of the House of Representatives and to the Committee on Finance and the Committee on Governmental Affairs of the Senate on the effects on the United States economy (including effects on employment, production, competition, costs and prices, technological development, export trade, balance of payments, inflation, and the Federal budget) of the refusal of developed countries to allow the Agreement to cover the entities of the governments of such countries which are the principal purchasers of goods and equipment in appropriate product sectors.
(2)The report required by paragraph (1) shall include an evaluation of alternative means to obtain equity and reciprocity in such product sectors, including (A) prohibiting the procurement of products of such countries by United States entities not covered by the Agreement, and (B) modifying the application of chapter 83 of title 41. The report shall include an analysis of the effect of such alternative means on the United States economy (including effects on employment, production, competition, costs and prices, technological development, export trade, balance of payments, inflation, and the Federal budget), and on successful negotiations on the expansion of the coverage of the Agreement pursuant to section 2514(a) and (b) of this title, other trade negotiating objectives, the relationship of the Federal Government to State and local governments, and such other factors as the President deems appropriate.
(3)In the preparation of the report required by paragraph (1) and the evaluation and analysis required by paragraph (2), the President shall consult with representatives of the public, industry, and labor, and make available pertinent, nonconfidential information obtained in the course of such preparation to the advisory committees established pursuant to section 2155 of this title.
(d)(1)On or before October 1, 1981, the President shall prepare and transmit to the congressional committees referred to in subsection (c)(1) a report which describes the actions he deems appropriate to establish reciprocity with major industrialized countries in the area of Government procurement.
(2)(A)If the President determines that any changes in existing law or new statutory authority are required to authorize or to implement any action proposed in the report submitted under paragraph (1), he shall, on or after January 1, 1982, submit to the Congress a bill to accomplish such changes or provide such new statutory authority. Prior to submitting such a bill, the President shall consult with the appropriate committees of the Congress having jurisdiction over legislation involving subject matters which would be affected by such action, and shall submit to such committees a proposed draft of such bill.
(B)The appropriate committee of each House of the Congress shall give a bill submitted pursuant to subparagraph (A) prompt consideration and shall make its best efforts to take final committee action on such bill in an expeditious manner.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification In subsec. (c)(2)(B), “chapter 83 of title 41” substituted for “title III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly referred to as the Buy American Act” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
Amendments
1994—Subsec. (a). Pub. L. 103–465, § 343(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “With respect to procurement covered by the Agreement, the President, in order to encourage additional countries to become parties to the Agreement and to provide appropriate reciprocal competitive government procurement opportunities to United States products and suppliers of such products— “(1) shall prohibit the procurement, after the date on which any waiver under section 2511(a) of this title first takes effect, of products (A) which are products of a foreign country or instrumentality which is not designated pursuant to section 2511(b) of this title, and (B) which are products covered under the Agreement for procurement by the United States; and “(2) may take such other actions within his authority as he deems necessary.” Subsec. (b). Pub. L. 103–465, § 343(b)(2), inserted concluding provisions. Subsec. (b)(1). Pub. L. 103–465, § 343(b)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “delay, for a period not to exceed two years, the prohibition of procurement, required pursuant to subsection (a)(1) of this section, of products of a foreign country or instrumentality which is not designated pursuant to section 2511(b) of this title, except that no such delay shall be granted with respect to the procurement of products of any major industrial country;”. 1993—Subsec. (a)(1). Pub. L. 103–182 substituted “are products covered under the Agreement for procurement by the United States” for “would otherwise be eligible products”.
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004. Committee on Government Operations of House of Representatives treated as referring to Committee on Government Reform and Oversight of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Government Reform and Oversight of House of Representatives changed to Committee on Government Reform of House of Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999. Committee on Government Reform of House of Representatives changed to Committee on Oversight and Government Reform of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Congress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023.
Effective Date
of 1994 Amendment Pub. L. 103–465, title III, § 344, Dec. 8, 1994, 108 Stat. 4955, provided that: “(a) In General.—Except as provided in subsection (b), the
Amendments
made by this subtitle [subtitle E (§§ 341–344 of title III of Pub. L. 103–465, amending this section and sections 2513 to 2515, 2517, and 2518 of this title, repealing section 2516 of this title, and amending provisions set out as a note under section 903 of Title 7, Agriculture] take effect on the date on which the Agreement on Government Procurement referred to in section 101(d)(17) [19 U.S.C. 3511(d)(17)] enters into force with respect to the United States [Jan. 1, 1995]. “(b) section 342(g).—The
Amendments
made by section 342(g) [amending provisions set out as a note under section 903 of Title 7] take effect on the date on which the WTO Agreement enters into force with respect to the United States [Jan. 1, 1995].”
Effective Date
of 1993 AmendmentAmendment by Pub. L. 103–182 effective on the date the North American Free Trade Agreement enters into force with respect to the United States (Jan. 1, 1994), see section 381(e) of Pub. L. 103–182, formerly set out as a note under section 2511 of this title.
Executive Documents
Delegation of Functions Functions of President under this section delegated to United States Trade Representative, with authority delegated to Secretary of Defense to waive the prohibitions contained in subsec. (b)(3), see section 1–201 of Ex. Ord. No. 12260, Dec. 31, 1980, 46 F.R. 1653, set out as a note under section 2511 of this title.
Reference
Citations & Metadata
Citation
19 U.S.C. § 2512
Title 19 — Customs Duties
Last Updated
Apr 6, 2026
Release point: 119-73