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Strengthening Trade Adjustment Assistance

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  • Howard F. Rosen

    () (Peterson Institute for International Economics)

Abstract

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.

Suggested Citation

  • Howard F. Rosen, 2008. "Strengthening Trade Adjustment Assistance," Policy Briefs PB08-2, Peterson Institute for International Economics.
  • Handle: RePEc:iie:pbrief:pb08-2
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    Cited by:

    1. Lee, Yu Na & Chau, Nancy & Just, David, 2014. "The Trade Adjustment Assistance (TAA) Program for Farmers in the U.S.: Role of Incentives in Program Participation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 176205, Agricultural and Applied Economics Association.
    2. Robert Z. Lawrence & Tyler Moran, 2016. "Adjustment and Income Distribution Impacts of the Trans-Pacific Partnership," Working Paper Series WP16-5, Peterson Institute for International Economics.
    3. Hillebrand Evan E & Lewer Joshua J. & Zagardo Janice Turtora, 2011. "Backtracking from Globalization," Global Economy Journal, De Gruyter, vol. 10(4), pages 1-19, January.

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