Trade Adjustment Assistance

TAA for firms and workers is authorized by the 1974 Trade Act. TAA for firms is administered by Commerce; TAA for workers is administered by Labor. Eligible firms must show that increased imports of articles like or directly competitive with those produced by the firm contributed importantly to declines in its sales and/or production and to the separation or threat of separation of a significant portion of the firm’s workers. These firms receive help through Trade Adjustment Assistance Centers (TAACs), primarily in implementing adjustment strategies in production, marketing, and management. Eligible workers must be associated with a firm whose sales or production have decreased absolutely due to increases in like or directly competitive imported products resulting in total or partial separation of the employee and the decline in the firm’s sales or production. Assistance includes training, job search and relocation allowances, plus reemployment services for workers adversely affected by the increased imports.

Trade Adjustment Assistance Centers

TAACs are nonprofit, non-government organizations established to help firms qualify for and receive assistance in adjusting to import competition. TAACs are funded by the Commerce Department as a primary source of technical assistance to certified firms.

Trade and Development Agency

The TDA started within the Agency for International Development but was spun off as an independent agency in 1981. TDA offers tied aid and resembles Japan’s tied aid funding. The program provides project planning funding only for projects that are priorities of the host country and present a good opportunity for sales of U.S. goods and services.

Trade Balance. See: Balance of Payments

Trade Barriers

The United States Trade Representative classifies trade barriers into eight general categories: (1) import policies (tariffs and other import charges, quantitative restrictions, import licensing, and customs barriers); (2) standards, testing, labeling, and certification; (3) government procurement; (4) export subsidies; (5) lack of intellectual property protection; (6) service barriers; (7) investment barriers; and (8) other barriers (e.g., barriers encompassing more than one category or barriers affecting a single sector).

Trade Concordance

Trade concordance refers to the matching of Harmonized System (HS) codes to larger statistical definitions, such as the Standard Industrial Classification (SIC) code and the Standard Industrial Trade Classification (SITC) system. The Bureau of the Census, the United Nations, as well as individual Federal and private organizations, maintain trade concordances for the purpose of relating trade and production data.

Trade Mission

Generically, a trade mission is composed of individuals who are taken as a group to meet with prospective customers overseas. Missions visit specific individuals or places with no specific stage setting other than appointments. Appointments are made with government and/or commercial customers, or with individuals who may be a stepping stone to customers. ITA trade missions are scheduled in selected countries to help participants find local agents, representatives, and distributors, to make direct sales, or to conduct market assessments. Some missions include technical seminars to support sales of sophisticated products and technology in specific markets. hA missions include planning and publicity, appointments with qualified contacts and with government officials, market briefings and background information on contacts, as well as logistical support and interpreter service. Trade missions also are frequently organized by other Federal, State, or local agencies.

Trade Opportunities Program

The Trade Opportunities Program, TOPS, is an International Trade Administration service which provides sales leads from overseas firms seeking to buy or represent U.S. products and services. Through overseas channels, U.S. foreign commercial officers gather leads and details, including as specifications, quantities, end use, and delivery deadlines. TOPs are telexed to Washington and listed on the Commerce Department’s Economic Bulletin Board and redistributed by the private sector.

Trade Policy Committee

The TPC is a cabinet-level, interagency trade committee established by the Trade Expansion Act of 1962 (chaired by the USTR) to provide broad guidance on trade issues. The Committee was renewed by an Executive Order at the end of the Carter Administration. Toward the end of the first Reagan Administration, with much dissension over Japan policy between the TPC, the Senior Interagency Group (chaired by Treasury), and th~ other groups, the White House created the Economic Policy Council (EPC) in 1985 as a single forum to reduce tensions. The Trade Policy Review Group (TPRG) is a subcabinet group which meets about once a week. The TPRG is an ad hoc creation that was not established by law. TPRG membership is fairly fluid, so that agencies which want to participate in a particular discussion can sit at the table. The Trade Policy Staff Committee (TPSC) has met approximately once a year since 1988. TPSC was established by law to obtain advice from the private sector on topics such as retaliation; it generally serves as a paper clearance structure. Beneath the TPSC is a large number (between 60-to-100) of TPSC subcommittees. Subcommittees are not independent; they are established ad referendum, to deal with topics of interim interest and are sometimes no more than phone and fax lists of interested parties on a given issue.

Trade Promotion Coordinating Committee

The President established the TPCC in May 1990 to unify and streamline the government’s decentralized approach to export promotion. TPCC members include Commerce (as chair), State, Treasury, Agriculture, Defense, Energy, and Transportation, the 0MB, the USTR, the Council of Economic Advisers, Eximbank, the Overseas Private Investment Corporation, the U.S. Information Agency, the Agency for International Development, the Trade and Development Program, and the Small Business Administration.

Tramp Steamer

A ship not operating on regular routes or schedules.

Transit Zone

A port of entry in a coastal country that is established as a storage and distribution center for the convenience of a neighboring country lacking adequate port facilities or access to the sea. A zone is administered so that goods in transit to and from the neighboring country are not subject to the customs duties, import controls or many of the entry and exit formalities of the host country. A transit zone is a more limited facility than a free trade zone or a free port.

Transmittal Letter

A list of the particulars of the shipment and a record of the documents being transmitted together with instructions for disposition of documents. Any special instructions are also included.

Transparency

The extent to which laws, regulations, agreements, and practices affecting international trade are open, clear, measurable, and verifiable.

Trigger Price Mechanism

The TPM is an antidumping mechanism designed to protect U.S. industries from underpriced imports. First used in 1978 to protect the steel industry, the TPM is the price of the lowest cost foreign producer. Imports priced below the trigger price are assessed a duty equal to the difference between their price and the trigger price.

Trust Receipt

Release of merchandise by a bank to a buyer in which the bank retains the title to the merchandise. The buyer, who obtains the goods for manufacturing or sales purposes, is obligated to maintain the goods (or the proceeds from their sale) distinct from the remainder of his/her assets and to hold them ready for repossession by the bank.

Ultimate Consignee

The ultimate consignee is the person located abroad who is the true principal party in interest, receiving the export or reexport for the designated end-use.

Unfair Trade Practice

This term refers to any act, policy, or practice of a foreign government that: (a) violates, is inconsistent with, or otherwise denies benefits to the U.S. under any trade agreement to which the United Statesis a party; (b)is unjustifiable, unreasonable, or discriminatory and burdens or restricts United States commerce; or (c) is otherwise inconsistent with a favorable section 301 determination by the U.S. Trade Representative.

United Nations Conference on Trade and Development

UNCTAD was set up in December 1964 as a permanent organ of the UN General Assembly. UNCTAD promotes international trade and seeks to increase trade between developing countries and countries with different social and economic systems. UNCTAD also examines problems of economic development within the context of principles and policies of international trade and seeks to harmonize trade, development, and regional economic policies.

United States International Trade Commission. See: International Trade

Commission.

United States Price

In the context of dumping investigations, this term refers to the price at which goods are sold in the U.S. compared to their foreign market value. The comparisons are used in the process of determining whether imported merchandise is sold at less than fair value.

U.S. Principal Party In Interest (USPPI)

The person in the United States that receives the primary benefit monetary or otherwise of the export transaction.