Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues

Abstract

[Excerpt] Trade liberalization can enhance the economic welfare of all trade partners, but in adjusting to greater competition, many import-competing firms and workers face difficult problems. Since 1962, Congress has responded to these adjustment costs by authorizing trade adjustment assistance (TAA) programs for workers, firms, and farmers, and continues to monitor their performance and amend the governing legislation. This report discusses the Trade Adjustment Assistance for Firms (TAAF) program, which provides technical assistance to trade-affected firms to help them develop strategies to remain competitive in a dynamic international economy. The 113th Congress may consider reauthorizing legislation for all TAA programs given they are set to expire on December 31, 2013.