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Friday, May 20, 2011

White House ties passage of free trade agreements to renewal of Trade Adjustment Assistance Program

The White House has said it will not seek Congressional approval of free trade agreements with Colombia, Panama and South Korea unless Republicans agree to reauthorize the Trade Adjustment Assistance (TAA) program that expired earlier this year.

The TAA program was expanded during the recession to make more displaced workers who lost their jobs to foreign competition eligible for expanded unemployment assistance and job training programs.

“The expanded TAA program has helped retrain tens of thousands of workers laid off as a result of globalization and it should have never been allowed to expire," said Michigan Rep. Sander Levin (D), who held a summit on TAA earlier this month in Macomb County.

"Republicans should renew it immediately. Workers have already begun to feel the consequence of Republicans’ inaction, as the Department of Labor earlier this month issued its first denials for assistance as a result of the expiration."

Republicans have refused to continue the program citing its cost, although several business groups, including the U.S. Chamber of Commerce, sent a letter this month to Congressional leaders urging them to reauthorize the TAA program in order to clear the way for passage of the free trade agreements.

According to Megan Piwowar, spokesman for House Ways and Means Chairman David Camp (R-Mich.), "Chairman Camp wants to see all three trade agreements readied for Congressional consideration by July 1 to increase U.S. exports, create much-needed jobs, and prevent the U.S. from losing more market share to our competitors abroad." she said.

Piwowar added, "In addition, Chairman Camp looks forward to continuing to work to find a bipartisan path forward in the House and Senate to advance the other elements of the U.S. trade agenda, among them our preferences programs, trade adjustment assistance, World Trade Organization accessions, and ongoing and new trade negotiations."

House Democrats are pushing for a five-year extension of the expanded TAA program, which covered service workers in addition to factory workers, and gave laid-off workers more time to receive such benefits. 

Republicans are calling the demands "extortion."

Until a deal is reached, the free trade agreements remain stalled.

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