Trade Adjustment Assistance

… a core concept in Economic Analysis and Atlas102

LosingAGoodJobConcept description

Trade adjustment assistance is government financial and other assistance offered to individuals and firms affected by changes in trade patterns, particularly those associated with international agreements.

Almost all countries have such programs. In the United States, a program called Trade Adjustment Assistance (TAA) was introduced to deal with the impacts of trade liberalization in the 1960s.

Wikipedia describes this program as follows:

“Trade Adjustment Assistance (TAA) is a federal program of the United States government to act as a way to reduce the damaging impact of imports felt by certain sectors of the U.S. economy. The current structure features four components of Trade Adjustment Assistance: for workers, firms, farmers, and communities. Each cabinet-level department was tasked with a different sector of the overall Trade Adjustment Assistance program. The program for workers is the largest, and administered by the U.S. Department of Labor. The program for farmers is administered by the U.S. Department of Agriculture, and the firms and communities programs are administered by the U.S. Department of Commerce.

“… Supporters argue that free trade offers widespread benefits among consumers, workers and firms in the U.S. in terms of lower prices, higher efficiency and quality, and more jobs. They claim that gains from negotiated trade deals are large and widely distributed across sectors. … In order to achieve trade benefits, however, the U.S. economy must reallocate production factors between sectors. Thus, free trade also leads to costs associated with workers displaced by import competition and offshore outsourcing.”

Atlas topic, subject, and course

Trade, Adjustment, and Protectionism (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Wikipedia, Trade Adjustment Assistance, at https://en.wikipedia.org/wiki/Trade_Adjustment_Assistance, accessed 11 May 2016.

Page created by: Ian Clark, last modified 11 May 2016.

Image: Trade Adjustment Assistance in Washington State, at http://www.taa-washington.org/income-support/, accessed 11 May 2016.