What Is Trade Adjustment Assistance?

In order to provide assistance to industries and workers caused by imports and reduce the impact and negative impact of trade on domestic industries, the United States introduced the Trade Expansion Act in 1962 and proposed a trade adjustment assistance program. Through a detailed discussion of the origin, development and content of the plan, China should learn from the experience of US trade adjustment assistance and combine China's national conditions to position China's trade adjustment assistance implementation goals to improve the competitiveness of trade-affected enterprises and the competitiveness of unemployed workers. Extend to provide cash and other assistance to eligible workers; in the implementation framework, take the province as the unit, and set up a specific trade adjustment assistance department under the Ministry of Finance (Office), which is responsible for reviewing, determining and issuing all trade adjustment assistance program assistance eligibility; Selective assistance for all workers participating in unemployment insurance to increase employment.

Trade adjustment plan

Right!

For damage caused by import

After World War II, when others

Since the development of the TAA plan, it has become increasingly mature and perfect.The goals of the plan have also increased during the development process.The only constant is the theoretical basis of the TAA plan, that is,

The development of the TAA plan has been quite complete until 2002, the most important sign is that the beneficiaries of the plan have expanded to farmers. According to the Trade Act of 2002, the TAA plan mainly includes three parts, namely the Workers Trade Adjustment Assistance Plan, the

The TAA plan has been developed in the United States for more than forty years and has basically been finalized. There is no doubt that the plan expenditure is not large (compared to the entire unemployment insurance system), but as a supplementary item of unemployment insurance, it focuses on protecting the people whose income has deteriorated due to trade, and has perfected the unemployment insurance system. As a socialist country, our country is the most faithful representative of the people's interests.In particular, our country is seeking more bilateral or multilateral trade agreements to strengthen links with the world.The impact of trade on certain domestic industries and groups is very large. The TAA plan undoubtedly propped up a protective net for free trade. However, considering that China's economic development level is still not high and the social security system is still in the construction period, it is too early to provide TAA plan assistance. Even so, we still need to supplement this lesson when the economy develops to a certain level in the future.

TAA Objective of China's TAA Plan in Trade Adjustment Plan .

The main motivation of the United States TAA plan is still to compensate workers who are unemployed or whose incomes have fallen due to trade. However, it has become more and more the new direction to enhance the reemployment competitiveness of workers and stimulate workers to find jobs quickly. China's economic development level is not high, and it is in a period of rapid development.It is not the same as the situation in the United States in 1962, and it is not comparable to the situation in the United States today. The competitiveness of affected enterprises and the competitiveness of unemployed workers will eventually be extended to provide cash and other assistance to eligible workers.

TAA Trade adjustment plan: the order and target positioning of China's TAA plan

Consistently, China's plan is to first implement the TAA plan for enterprises, to provide assistance to promising, temporarily weaker companies, and to support their development. From the framework of the US TAA plan, we can see that government expenditure in the corporate TAA plan is not large, but the benefits are very obvious.It is not only conducive to the growth of the overall economic output, but also can effectively adjust the economic structure.It can also provide employment for unemployed workers opportunity. After the economic development reached a high level, the workers' TAA plan was started, but the focus should be on training workers and providing employment guidance. In a considerable period of time, it is unrealistic to implement the agricultural TAA plan, but with the acceleration of urbanization and the development of our economy, the final realization of the agricultural TAA plan is also inevitable.

TAA Trade adjustment plan TAA plan execution possibility and management, implementation framework

In order to establish a TAA plan, the implementation and management of the TAA plan must first be established. The three branch plans of the US TAA plan belong to different departments, increasing operating costs, and these departments are not the actual providers of aid funds. In view of this, our country can take the province as the unit and set up a specific trade adjustment assistance department under the Ministry of Finance (Office) to be responsible for the review, determination and distribution of all TAA plan assistance eligibility.

The aid funds are shared by the province and the central government at the cost of five or five, so that the local finance department can be effectively restrained to help the enterprises and workers in the province to take fakes.

In addition, considering that China's workers do not have a strong sense of self-defense, enterprises can be unified to assist workers to apply for workers' TAA plan.

Trade adjustment plan unemployment insurance system should learn from US reemployment incentives

The United States TAA plan attaches great importance to worker training to encourage workers to find jobs quickly. In addition, a meaningful attempt is an optional TAA plan for older workers. This idea can be borrowed from China's entire unemployment insurance system. All workers participating in unemployment insurance will be given a selective assistance. If they find work within the prescribed time and the salary is lower than before, the government should provide some preferential treatment Assistance to compensate them for the loss of time they seek for work. The benefits of this are obvious.On the one hand, it reduces the government's burden of paying cash assistance in full while workers are unemployed (although it also increases the "concessional aid" expenditure, but overall reduces government expenditure), on the other hand, it stimulates The enthusiasm of workers for employment.

Notes:

Data of the United States Representative Office (US> House of Representatives) in 2003, see http://waysandmeans.house.gov/About.asp?section=23 for details.

Refers to employees of upstream and downstream enterprises.

(Author: Business School, Wuhan University, Wuhan 430072)