POLICY BRIEF 08-2

Strengthening Trade Adjustment Assistance

by Howard F. Rosen, Peterson Institute for International Economics

January 2008

Howard F. RosenMore 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

Working Paper 14-6: Wages and Labor Market Slack: Making the Dual Mandate Operational September 2014
Revised November 13, 2014

Working Paper 14-2: Labor Market Slack in the United Kingdom July 2014

Working Paper 13-7: How to Measure Underemployment? August 2013

Article: When It Comes to Globalization, Listen to the American People April 18, 2011

Op-ed: Taxing China's Assets: How to Increase US Employment Without Launching a Trade War April 25, 2011

Op-ed: Trade: An Opportunity About to Be Lost? May 20, 2011

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

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

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

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

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



© 2014 Peter G. Peterson Institute for International Economics. 1750 Massachusetts Avenue, NW.
Washington, DC 20036. Tel: 202-328-9000 Fax: 202-659-3225 / 202-328-5432
Site development and hosting by Digital Division