Trade Adjustment Assistance - TAA


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).

BREAKING DOWN '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.

  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. General Agreement On Tariffs And ...

    A treaty created following the conclusion of World War II. The ...
  5. World Trade Organization - WTO

    An international organization dealing with the global rules of ...
  6. Protectionism

    Government actions and policies that restrict or restrain international ...
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. Investing Basics

    3 Key Signs Of A Market Top

    When stocks rise or fall, the financial fate of investors change, as well. There are certain signs that can reveal a stock’s course, and investors don’t need to be experts to spot them.
  8. Mutual Funds & ETFs

    7 Very Affordable ETFs: Should You Invest?

    If you prefer low-cost ETFs, here are seven that should be good bets in a bull market.
  9. Investing Basics

    How to Updgrade Your Portfolio in a Down Market

    While it may be tempting to sell when the market turns downward, your long-term results may be better if you leave your money and ride it out.
  10. Mutual Funds & ETFs

    ETF Analysis: Direxion Daily Healthcare Bull 3X

    Learn about the Direxion Daily Healthcare Bull. This is a leveraged ETF that tracks the health care sector, which is a leader in this bull market.
  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 >>

You May Also Like

Hot Definitions
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  2. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  3. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  4. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  5. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  6. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
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!