POLICY BRIEF 08-2

Strengthening Trade Adjustment Assistance

by Howard F. Rosen, Peterson Institute for International Economics

More than 40 years ago, Congress established the Trade Adjustment Assistance (TAA) program to provide assistance to workers and firms adversely affected by import competition. The program provides extended income maintenance and training to workers and technical assistance to firms. TAA was expanded in the 1970s and cut back during the 1980s. Provisions included in the Trade Act of 2002 breathed new life into the program. Eligibility criteria were extended to include secondary workers and workers who lose their jobs due to offshore shifts in production. A health insurance tax credit and wage insurance were added to the package of assistance for workers. TAA for Farmers and Fishermen was also created. Congress is currently considering further changes to the program, including covering service workers and expanding the health insurance tax credit and wage insurance. Many believe that expanding TAA is critical to winning congressional support for further trade liberalization.

View full document [pdf]

RELATED LINKS

Testimony: Designing a National Strategy for Responding to Economic Dislocation June 24, 2008

Policy Brief 01-2: A Prescription to Relieve Worker Anxiety March 2001

Testimony: Reforming Unemployment Insurance for the 21st Century Workforce March 15, 2007

Op-ed: Why a “Grand Deal” on Labor Could End Trade Talks March 12, 2007

Policy Brief 04-2: Labor Standards, Development, and CAFTA March 2004

Policy Brief 03-11: Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth December 2003

Policy Brief 00-6: The ILO and Enforcement of Core Labor Standards July 2000

Policy Brief 99-7: Trade and Income Distribution: The Debate and New Evidence September 1999

Working Paper 05-9: Tradable Services: Understanding the Scope and Impact of Services Outsourcing September 2005

Paper: Outsourcing--Stains on the White Collar? February 2004