Content provided by the Catalog of Federal Domestic Assistance
11.313 Trade Adjustment Assistance
ECONOMIC DEVELOPMENT ADMINISTRATION, DEPARTMENT OF COMMERCE
Trade Act of 1974, Title II, Public Law 93-618, as amended, 88 Stat. 1978, 19 U.S.C. 2341-2343.
To provide trade adjustment assistance to firms and industries adversely affected by increased imports.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
Under Chapter 3 of Title II, of the Trade Act of 1974, as amended, a firm may petition the Economic Development Administration (EDA) of the Department of Commerce for certification as being impacted by import competition. Interested firms that believe they meet this requirement may contact EDA or one of the 12 EDA funded Trade Adjustment Assistance Centers (TAACs). TAACs will assist firms, at no cost, in completing and submitting a petition to EDA's Planning and Development Assistance Division (PDAD). Before a firm receives technical assistance under the program, the firm must have an adjustment plan approved by EDA. Usually the adjustment proposal, which includes an unbiased diagnostic of the firm's strengths, weaknesses, opportunities and threats, is prepared by the TAAC in cooperation with the firm. The adjustment proposal also identifies technical assistance tasks, which when implemented, will guide the firm toward economic recovery. The adjustment proposal must also demonstrate that the implementation of the technical assistance tasks has a reasonable chance helping the firm recover. The firm must pay at least 25 percent of the TAAC's cost of the preparation of the adjustment proposal. After a firm's adjustment proposal is accepted by EDA, the firm is authorized to apply for technical assistance to implement the recovery strategy. The technical assistance is usually provided by a private consultant, who is jointly hired by the certified firm and the TAAC. The certified firm and the TAAC each typically pay one half of the consultant's fee. The TAAC's total share of technical assistance for a firm, however, is generally limited to $75,000. Organizations representing trade-injured industries are eligible under the Trade Act to EDA for industry-wide assistance. However, since fiscal year 1996 EDA has allocated all of the program funds to support the activities of the national TAAC network. The only recent exception was assistance to the Alaskan Salmon industry, which was funded under a special appropriation for fiscal year 1999.
Applicant Eligibility: The statute (19 U.S.C. ss 2343 (b)) provides that grants may be awarded to "intermediary organizations (including Trade Adjustment Assistance Centers)" to provide assistance to trade-injured firms. For an industry association or other organizations to be eligible for industry assistance, evidence must be submitted demonstrating that the industry faces import competition and includes a substantial number of Trade Act certified firms or worker groups.
Formula and Matching Requirements: Federal funds can be used by TAACs for up to 100 percent of administrative expenses in providing technical assistance to firms. The Federal share of implementation assistance to firms is usually 50 percent and normally does exceed $75,000 per firm. Generally, a minimum of 50 percent share (half of which must be in cash) is required for industry assistance cooperative agreements.
POST ASSISTANCE REQUIREMENTS:
Reports: Periodic reporting of operating results and progress, financial statements, and summary of funds spent.
Account Identification: 13-2050-0-1-452.
In fiscal year 2001, the TAACs provided assistance to firms as follows: 179 firms were certified eligible to receive trade adjustment assistance, 118 adjustment proposals were accepted.
REGULATIONS, GUIDELINES, AND LITERATURE:
Copies of pertinent regulations, guidelines, a TAA information package, and forms are available from the Planning and Development Assistance Division, the Trade Adjustment Assistance Centers (TAACs), or their website, www.taacenters.org.
Regional or Local Office:
EXAMPLES OF FUNDED PROJECTS:
There are 12 funded Trade Adjustment Assistance Centers (TAACs), which cover the 50 States and the District of Columbia. The TAACs receive cooperative agreement to help firms become certified and receive trade adjustment assistance. Common types of technical assistance firms receive under the program include market research, quality assurance completion (ISO-9000 designation, for example) and management information systems guidance. Industries have been aided in developing new manufacturing machines and procedures, technological innovations, expanding exporting opportunities, marketing studies, product diversification, etc.
CRITERIA FOR SELECTING PROPOSALS:
TAAC funding priority is given to existing TAACs which have successfully carried out previous cooperative agreements. Industries must have a substantial number of TAA certified firms and have developed a proposal providing meaningful near-term benefit to their industry to receive assistance.