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Week Ending September 28, 2007

H.R.3375 To extend the trade adjustment assistance program under the Trade Act of 1974 for 3 months.

The Trade Act of 1974 section regarding assistance for workers is amended to provide that program through December 31, 2007.

The 1974 Act has been amended many times but the essence of the law is to provide relief for companies and workers who lose profits or wages due to unfair import competition with foreign countries with which the US has a trade agreement.

The purpose of the section of the Act that this bill amends is explained as such: “to provide adequate procedures to safeguard American industry and labor against unfair or injurious import competition, and to assist industries, firm, workers, and communities to adjust to changes in international trade flows.” Other factors leading to eligibility for compensation include loss of sales, increase of imports or another, competing US company has moved production to another country. Workers covered can include agricultural and oil industry workers.

The bill provides $4 million through December to aid businesses that see a decline in sales. $9 million goes to farmers and agribusinesses that saw a reduction in product prices less than 80% of the five year average price.

Ultimately, the bill authorizes unemployment benefits to anyone adversely affected who had worked the previous 26 weeks before the adverse action at a wage of $30 per day or more. The bill also provides for a health care tax credit and employment training if there is no similar work available and assures employment job search opportunities.

Sponsor:  Rep. Wally Herger (CA-2^nd)

Vote: Passed House by voice vote September 24, 2007. Passed Senate by Unanimous Consent September 25, 2007.

Cost to the taxpayers: “CBO estimates that implementing H.R. 3375 would increase discretionary spending for TAA for Firms by $4 million over the next two years. CBO estimates that enacting the bill also would increase mandatory spending by $9 million in fiscal year 2008, under the TAA for Farmers program. The costs of extending TAA for Workers are assumed in the current baseline; thus, we estimate no additional costs for that extension. In addition, the bill would affect direct spending and revenues for tax credits for health insurance, but those effects also are assumed in the current baseline. The net effects of the bill that are already assumed in the baseline would add $214 million to the deficit in 2008.”

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