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Trade Adjustment Assistance
Published on AidPage by IDILOGIC on Jun 24, 2005
Possible 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 EDA funded Trade Adjustment Assistance Centers (TAACs). TAACs will assist firms, at no cost, in completing and submitting a petition to EDA. 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.
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