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| TRADE ADJUSTMENT ASSISTANCE FOR FIRMS
Resources US Department of Commerce Economic Development Administration (EDA) The Trade Adjustment Assistance for Firms (TAA) program, which is authorized through the Trade Act of 1974, as amended, provides technical assistance to manufacturers or producers which have lost employment and sales or production due to increased import competition. EDA administers the TAA program through a national network of eleven Trade Adjustment Assistance Centers (TAACs). The TAAC aids a trade-injured firm, at no cost, in completing and submitting a petition to EDA for certification of eligibility and in applying for assistance under the TAA program. Once EDA certifies the firm as eligible under the TAA program, the TAAC helps the firm prepare an adjustment proposal. This document provides an objective analysis of the firm’s strengths, weaknesses and opportunities, and is a business recovery plan for the firm. The business plan components of the adjustment proposal identify specific technical assistance tasks, which when implemented will help the firm regain its economic competitiveness. These technical assistance tasks are customized to the specific needs of each individual firm. Under the TAA program, EDA shares the cost of adjustment proposal task implementation. For an adjustment proposal totaling $30,000 or less, EDA will provide 75% of the cost and the firm is responsible for the balance. For an adjustment proposal totaling over $30,000, EDA and the firm share the implementation costs evenly; EDA pays 50% of the total cost and the firm pays 50%. Due to limited program funding, EDA limits its share of technical assistance to a certified firm to $75,000.Typically the technical assistance is provided by a private sector consultant selected by the certified firm. Although a wide range of technical assistance tasks have been funded under the TAA program, the most commonly requested technical assistance activities have been market research (development of new marketing materials including e-commerce); identification of technology, computer systems and software to meet specific needs of the firm; and completion of a quality assurance program such as ISO-9000. See Trade Adjustment Centers For Firms. See Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues. This report by the Congressional Research Service last updated in January 2007 provides a wealth of information about the program and its impact on the business community it serves. The report is available on line at: http://www.nationalaglawcenter.org/assets/crs/RS20210.pdf. US Department of Labor US General Accounting Office |   |
