Trade: A mixed bag of tricks and treats

19 years ago
By U.S. Rep. Mike Michaud
(D-Maine)

On Halloween this year, the House of Representatives offered the American people both a “trick” and a “treat.”
    The treat came in the form of passing legislation that will aid workers who lose their jobs because of our nation’s trade policies. The trick is that next week the House will consider the Peru Free Trade Agreement (FTA) – yet another trade agreement based on the failed NAFTA model – next week.
The treat is certainly a very good one. The worker relief bill, the Trade Adjustment Assistance (TAA) and Globalization Act, would offer much-needed assistance to families and workers who have been victims of the off-shoring of jobs and industries. It would expand unemployment, job training, and other benefits to help families make ends meet while they consider their next steps.
As we all know well, layoffs and closures have left too many Mainers with pink slips and too many communities with empty buildings. This bill is a great step forward that will help provide immediate relief.
The bill directly responds to one of the main concerns of laid off workers: their health care coverage.
Currently, the Health Care Tax Credit offered to workers who have lost their jobs due to trade covers 65 percent of health care costs. While this is a good benefit, it remains too expensive for workers and their families to take full advantage of. The statistics speak volumes – currently only 10 percent of eligible families take advantage of these benefits. This legislation increases the tax credit to cover up to 85 percent of out-of-pocket costs for health care, helping more families in tough situations afford health care coverage.
The bill would also expand TAA coverage beyond the manufacturing sector. Now service sector workers like computer programmers, call-center employees, and engineers who have also been victims of globalization policies will be covered by TAA.
The bill also substantially improves job training and education benefits for workers who want to move into other occupations. In fact, it doubles our current funding for job training. It also creates incentives to redevelop communities hit hard by the loss of manufacturing jobs.
These TAA improvements are all positive steps in the right direction. But at the end of the day, the passage of a new and improved TAA bill reveals the real effects of our current trade model – lost jobs and struggling American families.
While TAA certainly helps workers and their families, it does not fix our broken trade policies. Unfortunately, the Peru FTA that the House will be considering next week is a carbon copy of the same old trade policies that continue to fail thousands of American workers each year.
It’s time to change the NAFTA trade model. I believe in trade so long as it’s fair for our workers, and I will continue to fight in Congress for policies that will protect our economy here at home.