Trade Adjustment Assistance - TAA

AAA

DEFINITION of 'Trade Adjustment Assistance - TAA'

An unemployment assistance program offered in the United States to workers who have lost jobs due to the effects of international trade, specifically increased imports. The Trade Adjustment Assistance (TAA) program provides job training and employment search services, as well as income and insurance assistance. In order to qualify for assistance, a group of workers must file a petition (or have one filed on their behalf) indicating that they have lost their jobs or have had reduced hours as the result of foreign trade. The program is administered by the Office of Trade Adjustment Assistance (OTAA).

INVESTOPEDIA EXPLAINS 'Trade Adjustment Assistance - TAA'

The legislation and program were desinged to reduce the impact on the U.S. job market due to the rise of globalization. There have been additional related programs such as the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was a result of the worldwide economic downturn stemming from the 2007-2009 financial crisis. As companies closed down production and manufacturing and moved the jobs offshore, some unemployed persons found themselves lacking the skills for other job types while simultaneously experiencing mortgage defaults and credit problems. Fewer than 100,000 individuals were using the program as of 2011.

RELATED TERMS
  1. Trade Adjustment Allowance

    A federal government subsidy paid to individuals who have lost ...
  2. Trade Liberalization

    The removal or reduction of restrictions or barriers on the free ...
  3. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  4. World Trade Organization - WTO

    An international organization dealing with the global rules of ...
  5. General Agreement On Tariffs And ...

    A treaty created following the conclusion of World War II. The ...
  6. Protectionism

    Government actions and policies that restrict or restrain international ...
RELATED FAQS
  1. How can I hedge my portfolio to protect from a decline in the food and beverage sector?

    The food and beverage sector exhibits greater volatility than the broader market and tends to suffer larger-than-average ... Read Full Answer >>
  2. How attractive is the food and beverage sector for a growth investor?

    The food and beverage sector is attractive for a growth investor. The sector's high degree of volatility means it tends to ... Read Full Answer >>
  3. What techniques are most useful for hedging exposure to the insurance sector?

    Investing style determines the best hedging techniques for the insurance sector. This sector comprises three segments, two ... Read Full Answer >>
  4. How can I hedge my portfolio to protect from a decline in the retail sector?

    The retail sector provides growth investors with a great opportunity for better-than-average gains during periods of market ... Read Full Answer >>
  5. What options strategies are best suited for investing in the retail sector?

    Retail is a broad sector whose seven discrete segments all exhibit greater volatility than the broader market. The sector ... Read Full Answer >>
  6. What techniques are most useful for hedging exposure to the utilities sector?

    Utilities is one of the most stable sectors in the market. As such, its primary appeal to investors is its resistance to ... Read Full Answer >>
Related Articles
  1. Economics

    Exploring The Current Account In The Balance Of Payments

    Learn how a country's current account balance reflects the country's economic health.
  2. Professionals

    Sell Your Skills, Not Your Degree

    If you want to switch careers, you may not have to go back to school to do it.
  3. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  4. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  5. Retirement

    How Unemployment Affects You (Even If You're Working)

    Rebounding from a stint of unemployment can be a frustrating thing to do. These tips should soften the blow.
  6. Economics

    Do Cheap Imported Goods Cost Americans Jobs?

    Flooding the market with cheap products can mean job losses and even market collapse - but dumping isn't as threatening as it seems.
  7. Mutual Funds & ETFs

    ETF Analysis: Direxion Daily Energy Bull 3X

    Learn more about one of Direxion Fund's high-risk, high-reward energy plays: the Direxion Shares Funds Trust 3X exchange-traded fund.
  8. Economics

    Will the Selloff in China Hurt the Global Economy?

    Though China is the world’s second largest economy, its volatility in the stock market is unlikely to have an impact on the global or Chinese economy.
  9. Fundamental Analysis

    Trading With Stage Analysis

    Stage analysis offers market participants a powerful tool to identify current market conditions and make rapid adjustments to strategies.
  10. Investing Basics

    What is Meant by Implied Volatility?

    The estimated volatility of a security's price.

You May Also Like

Hot Definitions
  1. Dog And Pony Show

    A colloquial term that generally refers to a presentation or seminar to market new products or services to potential buyers.
  2. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  3. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  4. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  5. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  6. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!