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[House Report 107-244]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-244

======================================================================

 
         REAUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM

                                _______
                                

October 16, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Thomas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3008]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3008) to reauthorize the trade adjustment assistance 
program under the Trade Act of 1974, having considered the 
same, report favorably thereon without amendment and recommend 
that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Introduction.....................................................2
        A. Purpose and Summary...................................     2
        B. Background............................................     2
        C. Legislative History...................................     5
 II. Explanation of the Resolution....................................6
III. Votes of the Committee...........................................6
 IV. Budget Effect.....................................................
        A. Committee Estimate of Budgetary Effects...............     6
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures.........................................     7
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................     7
  V. Other Matters to be Discussed Under the Rules of the House.......9
        A. Committee Oversight Findings and Recommendations......     9
        B. Statement of General Performance Goals and Objectives.     9
        C. Constitutional Authority Statement....................     9
 VI. Changes in Existing Law Made by the Bill, as Reported............9
VII. Additional Views................................................12

                            I. INTRODUCTION

                         A. Purpose and Summary

    H.R. 3008 amends Chapter 2 of the Trade Act of 1974 for the 
purpose of reauthorizing trade adjustment assistance programs 
without change through September 30, 2003.

                             B. Background

Trade Adjustment Assistance Program for workers

    The general TAA program for workers (sections 221-250 of 
the Trade Act of 1974, as amended) consists of trade 
readjustment allowances (TRAs), employment services, training 
and additional TRA allowances while in training, and job search 
and relocation allowances for certified workers. The program is 
administered by the Employment and Training Administration 
(ETA) of the Department of Labor (DOL) through state agencies 
under cooperative agreements between each state and DOL. ETA 
processes petitions and issues certifications or denials of 
petitions by groups of workers for eligibility to apply for 
TAA. The state agencies act as federal agents in providing 
program information, processing applications, determining 
individual worker eligibility for benefits, issuing payments, 
and providing reemployment services and training opportunities.
    Certification of individual workers involves a two-step 
process: (1) certification by the Secretary of Labor that a 
petitioning group of workers in a particular firm is eligible 
to apply; and (2) approval by the state agency administering 
the program that the application for benefits of an individual 
worker is covered by a certification. The process is initiated 
when a group of three or more workers, their union, or 
authorized representative files a petition with the ETA for 
certification of group eligibility. The Secretary then must 
determine whether the following three conditions are met:
          (1) A significant number or proportion of the workers 
        in the firm or subdivision of the firm have been or are 
        threatened to be totally or partially laid off;
          (2) Sales and/or production of the firm or 
        subdivision have decreased absolutely; and
          (3) Increased imports of articles like or directly 
        competitive with articles produced by the firm or 
        subdivision of the firm have ``contributed 
        importantly'' to both the layoffs and the decline in 
        sales and/or production.
    The maximum amount of basic TRA benefits payable to a 
worker for the period covered by any certification is 52 times 
the TRA payable for a week of total unemployment minus the 
total amount of Unemployment Insurance (UI) benefits to which 
the worker was entitled in the benefit period when the first 
qualifying separation occurred. UI and TRA payments combined 
are limited to a maximum 52 weeks in all cases involving 
extended compensation benefits (e.g., a worker receiving 39 
weeks of UI regular and extended benefits could receive a 
maximum of 13 weeks of basic TRA benefits). TRA benefits are 
not payable to workers participating in on-the-job training. A 
worker is eligible for TRA benefits during the 104-week period 
that immediately follows the week in which a total qualifying 
separation occurs.
    A worker may receive up to 26 additional weeks of TRA 
benefits after collecting basic benefits (up to a total maximum 
of 78 weeks) if that worker is participating in approved 
training. To receive the additional benefits, the worker must 
apply for the training program within 210 days after 
certification or first qualifying separation, whichever date is 
later. Additional benefits may be paid only during the 26-week 
period that follows the last week of entitlement to basic TRA, 
or that begins with the first week of training if the training 
begins after the exhaustion of basic TRA.
    Training and other employment services and job search and 
relocation allowances are available through state agencies to 
certified workers whether or not they have exhausted UI 
benefits and become eligible for TRA payments. Employment 
services consist of counseling, vocational testing, job search 
and placement, and other supportive services provided for under 
any other federal law.
    Supplemental assistance is available to defray reasonable 
transportation and subsistence expenses for separate 
maintenance when training is not within the worker's commuting 
distance. Job search and relocation allowances are available to 
certified workers who cannot obtain suitable employment within 
their commuting area, are laid off, and who apply within 1 year 
after certification or last total layoff, whichever is later, 
or within 6 months after concluding training.
    Relocation allowances are available to certified workers 
laid off at time of relocation who have been able to obtain an 
offer of or actual suitable employment outside their commuting 
area. The allowance is equal to 90 percent of reasonable and 
necessary expenses for transporting the worker, family, and 
household effects, plus a lump sum payment of three times the 
worker's average weekly wage, up to a maximum amount of $800.
    The states are reimbursed from Treasury general revenues 
for benefit payments and other costs incurred under the 
program. For fiscal year 2001, $342 million has been 
appropriated for trade adjustment assistance.
            The NAFTA Worker Security Act
    Subchapter D of Chapter 2 (section 250) of Title II of the 
Trade Act of 1974 establishes a transitional adjustment 
assistance program under the North American Free Trade Act 
(NAFTA-TAA) for workers who may be adversely impacted by the 
NAFTA. Import-impacted workers may also petition for assistance 
under TAA but cannot obtain benefits under both programs.
    A group of workers (including workers in any agricultural 
firm or subdivision of an agricultural firm) are to be 
certified as eligible to apply for adjustment assistance if the 
Secretary determines that a significant number or proportion of 
the workers in the firm or subdivision of the firm have become 
or are threatened to become totally or partially separated, and 
either:
          (1) Sales and/or production of the firm or 
        subdivision have decreased absolutely, imports from 
        Mexico or Canada of articles like or directly 
        competitive with articles produced by such firm or 
        subdivision have increased, and the increase in imports 
        contributed importantly to the workers' separation or 
        threat of separation and to the decline in the sales or 
        production of the firm or subdivision; or
          (2) There has been a shift in production by the 
        workers' firm or subdivision to Mexico or Canada of 
        articles like or directly competitive with articles 
        produced by the firm or subdivision.
    A group of workers or their union or other duly authorized 
representative may file a petition for certification of 
eligibility to apply for NAFTA-TAA benefits with the governor 
of the state in which the workers' firm or subdivision is 
located. Upon receipt of the petition, the governor must notify 
the Secretary of Labor. Within 10 days thereafter, the governor 
must make a preliminary finding as to whether the petition 
meets the certification criteria and transmit the petition, 
together with a statement of the finding and reasons, to the 
Secretary of Labor for action. If the preliminary finding is 
affirmative, the governor will ensure that rapid response and 
basic readjustment services authorized under other federal laws 
are made available to the workers.
    Within 30 days after receiving the petition, the Secretary 
of Labor must determine whether the petition meets the 
certification criteria. Upon an affirmative determination, the 
Secretary will issue to workers covered by the petition a 
certification of eligibility to apply for comprehensive 
assistance. Upon denial of certification, the Secretary will 
review the petition to determine if the workers meet the 
requirements of the TAA program for certification.
    Certified workers under the NAFTA program receive 
employment services, training, trade readjustment allowances, 
and job search and relocation allowances in the same manner and 
to the same extent as workers covered under a TAA 
certification, with the following restrictions:
          (1) The total amount of payments for training costs 
        for any fiscal year may not exceed $30 million;
          (2) The Secretary of Labor cannot waive the training 
        requirement with respect to payments under NAFTA-TAA; 
        and
          (3) To receive TRA benefits, the worker must be 
        enrolled in a training program approved by the 
        Secretary by the later of the last day of the 16th week 
        of the worker's initial UI benefit period or the last 
        day of the 6th week after the week in which the 
        Secretary issues a certification covering the worker. 
        In extenuating circumstances, the Secretary may extend 
        the time for enrollment for not more than 30 days.
    The NAFTA-TAA program took effect on January 1, 1994, the 
date the NAFTA entered into force for the United States. For 
fiscal year 2001, $54 million has been appropriated for NAFTA 
transitional adjustment assistance.
            Trade Adjustment Assistance Program for firms
    Sections 251 through 264 of the Trade Act of 1974, as 
amended, contain the procedures, eligibility requirements, 
benefits and their terms and conditions, and administrative 
provisions of the trade adjustment assistance program for firms 
adversely impacted by increased import competition. The program 
is administered by the Economic Development Administration 
within the Department of Commerce. Amendments in 1986 
eliminated financial assistance (direct loan or loan guarantee) 
benefits, increased government participation in technical 
assistance, and expanded the criteria for firm certification.
    Program benefits consist exclusively of technical 
assistance for petitioning firms which qualify under a two-step 
procedure: (1) certification by the Secretary of Commerce that 
the petitioning firm is eligible to apply; and (2) approval by 
the Secretary of Commerce of the application by a certified 
firm for benefits, including the firm's proposal for economic 
adjustment. To certify a firm as eligible to apply for 
adjustment assistance, the Secretary must determine that three 
conditions are met:
          (1) A significant number or proportion of the workers 
        in the firm have been or are threatened to be totally 
        or partially laid-off;
          (2) Sales and/or production of the firm have 
        decreased absolutely, or sales and/or production that 
        accounted for at least 25 percent of total production 
        or sales of the firm during the 12 months preceding the 
        most recent 12-month period for which data are 
        available have decreased absolutely; and
          (3) Increased imports of articles like or directly 
        competitive with articles produced by the firm have 
        ``contributed importantly'' to both the layoffs and the 
        decline in sales and/or production.
    A certified firm may file an application with the Secretary 
of Commerce for trade adjustment assistance benefits at any 
time within two years after the date of the certification of 
eligibility. The application must include a proposal by the 
firm for its economic adjustment. The Secretary may furnish 
technical assistance to the firm in preparing its petition for 
certification and/or in developing a viable economic adjustment 
proposal. The Secretary approves the firm's application for 
assistance only if he determines that its adjustment proposal 
(a) is reasonably calculated to make a material contribution to 
the economic adjustment of the firm; (b) gives adequate 
consideration to the interests of the workers in the firm; and 
(c) demonstrates that the firm will make all reasonable efforts 
to use its own resources for economic development.
    The Secretary of Commerce also may provide technical 
assistance of up to $10 million annually per industry to 
establish industry-wide programs for new product or process 
development, export development, or other uses consistent with 
adjustment assistance objectives. The assistance may be 
furnished through existing agencies, private individuals, 
firms, universities, and institutions, and by grants, 
contracts, or cooperative agreements to associations, unions, 
or other non-profit organizations of industries in which a 
substantial number of firms or workers have been certified.
    Funds to cover all costs of the program are subject to 
annual appropriations to the EDA of the Department of Commerce 
from general revenues. For fiscal year 2001, $10 million was 
appropriated for the program.

                         C. Legislative History

Committee action

    H.R. 3008 was introduced on October 3, 2001, by 
Representatives Nancy Johnson, Jennifer Dunn, and Phillip 
English and was referred to the Committee on Ways and Means. On 
October 5, 2001, the Committee ordered favorably reported H.R. 
3008 to the House of Representatives by voice vote.

Legislative hearing and oversight

    The Committee held no hearing on reauthorization of the 
trade adjustment assistance programs. Numerous investigations 
by the U.S. General Accounting Office have been conducted on 
trade adjustment assistance programs in the past year. These 
investigations discuss the limitations of federal assistance, 
specifically, experiences of trade-impacted communities, the 
impact of assistance on firms, and the need for improvements to 
the trade assistance programs.

                    II. EXPLANATION OF THE PROVISION

Present law

    Section 245 of the Trade Act of 1974, as amended (19 U.S.C. 
2317), authorizes appropriations to the Department of Labor for 
the period beginning October 1, 1999 through September 30, 
2001, of such sums as may be necessary to administer the 
general TAA and NAFTA-related TAA programs of Chapter 2 of 
Title II of that Act. Section 250(d)(2) of the Trade Act of 
1974 caps the funding for NAFTA training programs for the 
period at $30,000,000.
    Section 256 of the Trade Act of 1974, as amended (19 U.S.C. 
2346(b)), authorizes appropriations to the Department of 
Commerce for the period beginning October 1, 1999, through 
September 30, 2001, of such sums as may be necessary to 
administer the TAA for firms program (Chapter 3 of Title II of 
the Trade Act of 1974, as amended).

Explanation of the provision

    The provision reauthorizes the three trade adjustment 
assistance programs by striking the termination date in the 
several statutory provisions of September 30, 2001, and 
replacing it with the new termination date of September 30, 
2003. The provision makes no changes to the program.

Effective date

    The provision would take effect on October 1, 2001.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of H.R. 3008.

                       MOTION TO REPORT THE BILL

    H.R. 3008, was ordered favorably reported without an 
amendment by voice vote and with a quorum being present.

                           IV. BUDGET EFFECTS

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made concerning the effects on the budget of this resolution, 
H.R. 3008 as reported: The Committee agrees with the estimate 
prepared by CBO which is included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that 
enactment of H.R. 3008 would have no effect on revenues.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the Congressional Budget Office, the following 
report prepared by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 12, 2001.
Hon. William ``Bill'' M. Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Thomas: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3008, a bill to 
reauthorize the Trade Adjustment Assistance program under the 
Trade Act of 1974.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Sadoti.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3008--A bill to reauthorize the Trade Adjustment Assistance under 
        the Trade Act of 1974

    Summary: H.R. 3008 would extend the Trade Adjustment 
Assistance (TAA) programs for workers and for firms through 
fiscal year 2003. These programs expired at the end of fiscal 
year 2001. Relative to current law, extending those programs 
would cost about $400 million a year for 2002 and 2003. 
However, the costs of extending TAA are assumed in CBO's 
estimates of baseline spending. Thus, enacting H.R. 3008 would 
have no effect on direct spending relative to the baseline.
    The bill also would authorize grants in 2002 and 2003 for 
trade adjustment assistance. Assuming appropriation of the 
necessary amounts, CBO estimates that making such grants would 
cost $18 million over the 2002-2006 period.
    H.R. 3008 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Under voluntary agreements with the Secretary of Labor, states 
administer the trade adjustment assistance and transitional 
adjustment assistance programs in a manner similar to that of 
their unemployment insurance programs. Benefits for those 
programs are funded entirely by the Federal government.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3008 is shown in the following table. 
The cost of this legislation falls within budget functions 450 
(community and regional development), 500 (education, training, 
employment, and social services), and 600 (income security).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2002      2003      2004      2005      2006      2007
----------------------------------------------------------------------------------------------------------------
                                      SPENDING SUBJECT TO APPROPRIATION \1\

Trade adjustment assistance for firms:
    Estimated authorization level...................        10        10         0         0         0         0
    Estimated outlays...............................         1         3         4         5         5         0
----------------------------------------------------------------------------------------------------------------
\1\ Although authorization for the TAA program expired at the end of fiscal year 2001, the costs of extending it
  are assumed in baseline as required under section 257 of the Balanced Budget and Emergency Deficit Control
  Act. H.R. 3008 would not increase costs relative to those already assumed in baseline: approximately $400
  million a year for 2002 and 2003.

Basis of estimate

    For this estimate, CBO assumes that H.R. 3008 will be 
enacted by November 1, 2001, and that the authorized amounts 
will be appropriated for each year.
            Spending subject to appropriation
    H.R. 3008 would authorize the Economic Development 
Administration (EDA) to make grants to firms for trade 
adjustment assistance and authorize the appropriation of such 
sums as necessary in 2002 and 2003 for such grants. Based on 
information from EDA, CBO estimates that this provision would 
authorize the appropriation of $10 million in fiscal years 2002 
and 2003 and would cost $18 million over the five-year period.
            Direct spending
    H.R. 3008 also would extend TAA and NAFTA TAA for workers 
through 2003. These programs extended unemployment compensation 
and training benefits for workers who lose their jobs as a 
result of increases in imports. CBO estimates that these 
programs would cost about $400 million each year--about two-
thirds of which would be extended unemployment benefits, with 
the remaining third in training benefits. The costs of these 
programs are assumed in baseline according to the rules 
established by the Balanced Budget and Emergency Deficit 
Control Act.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. Such 
procedures would apply to H.R. 3008 because it would extend TAA 
and NAFTA TAA. However, because that spending is already 
included in baseline projections, there is not additional cost 
for pay-as-you-go purposes.
    Estimated impact on State, local, and tribal governments: 
H.R. 3008 contains no intergovernmental mandates as defined in 
UMRA. Under voluntary agreements with the Secretary of Labor, 
States administer the trade adjustment assistance and 
transitional adjustment assistance programs in a manner similar 
to that of their unemployment insurance programs. Benefits for 
those programs are funded entirely by the federal government.
    Estimated impact on the private sector: This bill contains 
no private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal spending: Christina Hawley 
Sadoti; impact on State, local, and tribal governments: Leo 
Lex; impact on the private sector: Ralph Smith.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee, based on information from the Administration, 
concluded that it is appropriate and timely to consider the 
resolution as reported.

        B. Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee advises that the 
Administration has in place program goals and objectives, which 
have been reviewed by the Committee. The Committee finds that 
the Administration goals regarding reemployment of trade-
displaced workers are reasonable and being met. The Committee 
also notes the Administration's comment that there is 
substantial State involvement in implementing the programs, and 
the ability of the Administration to assess program goals and 
objectives depends upon data collection and reporting systems 
established by the States.

                 C. Constitutional Authority Statement

    With respect to clause 3(d)(1) of rule XIII of the Rules of 
the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article 1 of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States.'')

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

TRADE ACT OF 1974

           *       *       *       *       *       *       *

TITLE II--RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION

           *       *       *       *       *       *       *

CHAPTER 2--ADJUSTMENT ASSISTANCE FOR WORKERS

           *       *       *       *       *       *       *

Part II--Training, Other Employment Services, and Allowances

           *       *       *       *       *       *       *

Subchapter C--General Provisions

           *       *       *       *       *       *       *

SEC. 245. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated to 
the Department of Labor, for the period beginning [October 1, 
1998, and ending September 30, 2001,] October 1, 2001, and 
ending September 30, 2003, such sums as may be necessary to 
carry out the purposes of this chapter, other than subchapter 
D.
  (b) Subchapter D.--There are authorized to be appropriated to 
the Department of Labor, for the period beginning [October 1, 
1998, and ending September 30, 2001,] October 1, 2001, and 
ending September 30, 2003, such sums as may be necessary to 
carry out the purposes of subchapter D of this chapter.

           *       *       *       *       *       *       *

     Subchapter D--NAFTA Transitional Adjustment Assistance Program

SEC. 250. ESTABLISHMENT OF TRANSITIONAL PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Comprehensive Assistance.--Workers covered by 
certification issued by the Secretary under subsection (c) 
shall be provided, in the same manner and to the same extent as 
workers covered under a certification under subchapter A, the 
following:
          (1) Employment services described in section 235.
          (2) Training described in section 236, except that 
        notwithstanding the provisions of section 236(a)(2)(A), 
        the total amount of payments for training under this 
        subchapter for the period beginning [October 1, 1998, 
        and ending September 30, 2001] October 1, 2001, and 
        ending September 30, 2003, shall not exceed $30,000,000 
        for any fiscal year.

           *       *       *       *       *       *       *

CHAPTER 3--ADJUSTMENT ASSISTANCE FOR FIRMS

           *       *       *       *       *       *       *

SEC. 256. DELEGATION OF FUNCTIONS TO SMALL BUSINESS ADMINISTRATION; 
                    AUTHORIZATION OF APPROPRIATIONS.

  (a) * * *
  (b) There are hereby authorized to be appropriated to the 
Secretary for the period beginning [October 1, 1998, and ending 
September 30, 2001] October 1, 2001, and ending September 30, 
2003, such sums as may be necessary to carry out his functions 
under this chapter in connection with furnishing adjustment 
assistance to firms (including, but not limited to, the payment 
of principal, interest, and reasonable costs incident to 
default on loans guaranteed by the Secretary under the 
authority of this chapter), which sums are authorized to be 
appropriated to remain available until expended.

           *       *       *       *       *       *       *

CHAPTER 5--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

SEC. 285. TERMINATION.

    (a) * * *

           *       *       *       *       *       *       *

  (c)(1) Except as provided in paragraph (2), no assistance, 
vouchers, allowances, or other payments may be provided under 
chapter 2, and no technical assistance may be provided under 
chapter 3, after September 30, [2001] 2003.
  (2)(A) Except as provided in subparagraph (B), no assistance, 
vouchers, allowances, or other payments may be provided under 
subchapter D of chapter 2 after September 30, [2001] 2003.

           *       *       *       *       *       *       *

                         VII. ADDITIONAL VIEWS

    The trade adjustment assistance programs (TAA)--TAA for 
workers, North American Free Trade Agreement-TAA, and TAA for 
firms--are crucially important to America's workers and 
businesses. The TAA programs are integral pieces to a coherent 
trade policy. There are net benefits for society as a whole in 
expanded trade; it may also impose concentrated costs on 
workers and businesses in sectors that are adversely affected 
by increased imports. It is just plain irresponsible trade, 
economic, and social policy to ignore the needs of those 
farmers, workers, businesses, and communities adversely 
impacted by expanded trade. This is why it is important to 
shape our trade policies. It is also why there needs to be a 
truly effective Trade Promotion Authority.
    Although the current TAA programs have helped many workers 
and businesses adjust to the impacts of expanded trade, they 
have been seriously inadequate in many ways. The existing TAA 
eligibility requirements have not kept up with the changing 
times. TAA covers too few workers and fails to address major 
problems that workers and communities face. In the last year, 
the General Accounting Office released two reports on the TAA 
programs, including one this August, which identified 
structural and implementation problems that impede the 
effectiveness of the programs.
    In the face of these known deficiencies in the programs, 
Congress should pursue serious reform and needed enhancement. 
Among other improvements, Congress should expand the 
eligibility requirements so that a broader array of those 
impacted by trade are covered (including ``secondary'' workers, 
workers dislocated because their firm has moved production 
offshore, farmers, and truckers), fill in the existing gap in 
duration between income supports and training, provide greater 
coordination with other support services, provide ways to help 
workers retain their health insurance, establish a limited wage 
insurance program for older workers who need it most, and 
establish a program to help communities most impacted by trade 
to get back on their feet.
    The change in immediate national priorities in the wake of 
the tragic and despicable events of September 11th has made it 
difficult for Congress to bring the needed focus on significant 
reform of the TAA programs this year. We support H.R. 3008 
because the TAA programs need to be extended in the short term 
to ensure that benefits to impacted workers and firms are not 
cut off. We do not view this extension as an excuse to ignore 
the problems in the TAA programs, however, we will push for 
necessary reforms in weeks to come. The Chairman assured us 
that there would be an opportunity to do so, and we will pursue 
actively such opportunity.

                                   Sander Levin.
                                   Robert T. Matsui.
                                   Richard E. Neal.
                                   Charles B. Rangel.
                                   John Lewis.
                                   Earl Pomeroy.
                                   Xavier Becerra.

                                
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