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Research on the Legal System of the Trade Adjustment Assistance

Author: YangGuangShi
Tutor: WenShuYing
School: Shanxi University
Course: International Law
Keywords: the trade adjustment assistance trade remedy trade liberalization
CLC: F752
Type: Master's thesis
Year: 2011
Downloads: 40
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Abstract


The legal system of trade adjustment assistance (TAA) is designed to provide government assistance for workers whose employment is due to the adverse impact of trade liberalization or economic globalization, to promote positive adjustment for declining firms or workers, and meanwhile to compensate for interest losses they suffer due to trade liberalization so as to realize the increases of whole social welfare, getting the injured or losers to support trade liberalization. Compared with traditional trade relief measures, this legal system has evolved into an institutionalized compensation mechanism for trade liberalization. This study, applying historical, comprehensive and comparative research method, comprehensively looks into the TAA legal system in the USA and Europe. The experience and enlightenment of the USA and Europe are of great strategic significance for China to build the TAA. At the end of the thesis, concrete legislative measures are proposed to construct the TAA with Chinese characteristics.In addition to introduction and conclusion, the thesis comprises of five parts:The first part is an introduction to the trade adjustment assistance. The TAA refers to a series of aid planning and measures aimed at helping enterprises and workers, who suffer from loss because of the trade liberalization, enhance their international competitiveness through self-adjustment. Compared with other relief measures, the TAA is featured in national welfare, fairness and gentleness. Though the TAA is different from traditional trade relief measures, its characteristics determine that it cannot replace other relief measures. They can only exist side by side, together promoting the perfection of legal system of trade assistance.The second part is an analysis to the US TAA institution. The TAA legal system has been successively affected by four major congressional trade acts: Trade Expansion Act of 1962, Trade Act of 1974, Omnibus Trade and Competitiveness Act of 1988 and Trade Act of 2002. It has become an important part of the US Trade Act. The US TAA consists of three parts:the TAA for workers, the TAA for firms and the TAA for farmers. From the perspective of development trend, TAA programs are facing such problems as how to differentiate adversely-affected job loss due to foreign trade from adversely-affected job loss not due to foreign trade, how to further expand eligibility standards and how to ensure capital sources, etc. As for TAA programs reform direction, two leading opinions have formed in the US, that is, perfection reform and fundamental reform.In the third part, the European TAA institution is analyzed. The European TAA, which has been successively affected by (EC) No.1927/2006 regulation, (EC) No.2008/0267 regulation and (EC) No.564/2009 regulation, has evolved into the global trade relief system with its own characteristics. The legal system is a "one-stop personalization service" for unemployed workers only. Nowadays the challenges faced by European TAA are reflected in setting the threshold for intervention criteria, the role disparities among member states and monitoring the running of fund. From the perspective of development trend, the legal system is still developing in the direction of further expanding the aid target and lowering the interference criteria.The fourth part is aimed at introducing the enlightenment of the US and European TAA institution on China, which can be summarized as follows: Firstly, the TAA is an inevitable choice of trade liberalization. Secondly, the TAA is an important measure for economy security. Thirdly, the TAA is the pressing need to perfect the Trade Relief Law System. Fourthly, the TAA is an important approach to safeguard the interests of firms and workersIn the fifth part, some concrete constructions are proposed to build TAA legal system. In current international trade situation, the legislative aims of the TAA legal system in our country should be anchored in enhancing the international competitiveness of traditional industry and new industry. The establishing of the TAA legal system should follow the principles of economical efficiency, national interests and legality. As for contents, they should include those for workers, firms and industries.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade
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