Does NAFTA apply?
No. The Buy America regulations are exempt from the North American Free Trade Agreement (NAFTA). Chapter 10 of NAFTA deals with government procurements, and specifically exempts from its application: non-contractual agreements or any form of government assistance, including cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and government provision of goods and services to persons or state, provincial and regional governments. (Emphasis added) NAFTA, Part four, Chapter ten, Section A, Article 1001, Part 5(a). Additionally, the Statement of Administrative Action that accompanied the NAFTA Implementation Act also expressly stated that the rules of Chapter 10 of NAFTA do not apply to certain kinds of purchases by the U.S. government, among them procurements funded by federal grants, such as those made by FTA. H.R. Doc. No. 103-159, Vol. 1, 103rd Cong., 1st Sess. 584-585 (1993). Therefore, manufacture in either Mexico or Canada is NOT considered domesti
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