[Congressional Record Volume 151, Number 100 (Thursday, July 21, 2005)]
[Senate]
[Pages S8669-S8672]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself and Mr. Coleman):
  S. 1444. A bill to amend the Trade Act of 1974 to provide for 
alternative means of certifying workers for adjustment assistance on an 
industry-wide basis; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to introduce the Trade 
Adjustment Assistance for Industries Act.
  I have long been a champion for our Trade Adjustment Assistance 
program, what we call ``TAA.''
  For more than 40 years, TAA has been providing retraining, income 
support, and other benefits to workers who lose their jobs due to 
trade. The program has a critical mission: to give trade-impacted 
workers the skills they need to find new jobs and prosper in growing 
sectors of the economy.
  Maintaining a well-trained workforce is key to our Nation's long-term 
competitiveness and economic health. And helping those few who lose out 
from our trade policy choices is key to maintaining public support for 
trade liberalization.
  In the Trade Act of 2002, I spearheaded the most comprehensive 
expansion and overhaul of the TAA program since 1974. We expanded the 
kinds of workers who are eligible for TAA benefits. We extended the 
training benefit to make it more effective and enhanced funding for 
training. We added new benefits like wage insurance and the health 
coverage tax credit. We also streamlined the application process to get 
workers enrolled and retraining sooner.
  TAA is a lifeline for those who enter the program. Participating 
workers in Montana tell me that TAA has made it possible for them to 
make a new start. It gives them hope that they can do something more 
than merely survive a plant closure.
  One of the industries in Montana that has had all too much experience

[[Page S8670]]

with the TAA program is softwood lumber. Our softwood lumber industry 
has been battered for years by imports of dumped and subsidized lumber 
from Canada. Over time, and despite decades of litigation, these unfair 
trading practices have taken their toll.
  Since 1999, workers from at least 24 Montana lumber mills have 
applied for TAA certification. An additional 11 petitions were filed 
under the now-repealed NAFTA-TAA program.
  What surprises me is not that so many Montana lumber workers have 
applied for TAA--but the inconsistent treatment of their petitions. Of 
the 24 Montana lumber companies that petitioned for TAA, 16 were 
approved and 8 were denied. Under the NAFTA-TAA program, 6 petitions 
were approved, and 5 were denied.
  These results do not make sense. These mills are all competing in the 
same market. They are all competing against dumped and subsidized 
imports from Canada that drive down prices until U.S. producers cannot 
survive. The International Trade Commission found that Canadian imports 
injure or threaten injury to the entire domestic softwood lumber 
industry. And yet, somewhere between a third and a half of Montana 
workers laid off in the industry were left to fend for themselves, 
while the others had the chance to participate in TAA.
  So why are some workers getting TAA and others being turned down? The 
answer lies in the way the Department of Labor reviews petitions. Under 
current law, petitions have to be filed and reviewed on a plant-by-
plant basis and in a total vacuum.
  In effect, the Labor Department puts on blinders. It does not 
consider whether the International Trade Commission has found injury to 
the industry from imports. It does not ask whether imports are leading 
to job losses nationwide. It does not examine whether entire 
occupational categories are being offshored.
  Instead, it just asks an individual plant whether it or its customers 
are buying more imports. If that one plant submits the wrong 
information, or its customers deny buying imports, its workers lose 
out--while similar workers up the road get the benefits they deserve.
  The plight of softwood lumber illustrates why, in some cases, plant-
by-plant certification is not the best policy. And lumber workers are 
not alone. A similarly checkered record of certifications and denials 
affects other industries, like textiles and small electronics. Simply 
put, there are some industries where the trade-related displacements 
are clearly national in scope.
  The industries are easy to identify. They experience multiple plant 
closures covering multiple states in a relatively short period. They 
are often industries seeking or receiving relief under trade remedy 
laws.
  In these cases, it makes no sense to consider petitions one plant 
closure at a time. That creates the risk of inconsistent results for 
similarly situated workers. And it makes the Department of Labor 
investigate the same situation over and over again--even when the 
International Trade Commission, or another Federal agency, has already 
made a thorough injury investigation.
  What would make more sense is a way to certify workers on an 
industry-wide basis or on the basis of occupational classification in 
cases where the trade-related layoffs are national in scope. That is 
what this legislation does.
  I should note that, in one rare circumstance, the President already 
has the authority to certify workers for TAA on an industry-wide and 
nationwide basis. When the President grants a remedy in a global 
safeguard case--what we call section 201--he has the option of 
certifying all workers in the affected industry for TAA.

  To my knowledge, this option has been used only once, by President 
Reagan, in a case involving the footwear industry. In that case, 
workers laid off from individual footwear plants did not need to 
petition the Department of Labor for a determination that their job 
losses were import-related. All each worker had to do was go to a 
designated office in his State and prove that he lost a job in the 
footwear industry within the applicable time period.
  Normally, there are two steps needed to qualify for TAA under current 
law. First, the Department of Labor has to certify that a particular 
layoff is trade-related. That certification covers all the workers laid 
off at a single plant. Second, each individual worker affected by that 
layoff has to prove that he or she satisfies a list of criteria to 
qualify for benefits, such as 2 years' employment at the firm and 
eligibility for unemployment insurance. In the footwear case, workers 
were spared the first, group eligibility step and moved right to the 
second step.
  To me, this model makes a lot of sense. If you believe in the purpose 
of TAA, it makes sense to make it as easy as possible for qualifying 
workers to access benefits.
  This bill achieves that goal in two ways.
  First, it makes industry-wide TAA certification automatic in cases 
where the President, the International Trade Commission, or another 
qualified Federal agency has already determined that imports are having 
an injurious effect. If workers lose their jobs in an industry covered 
by a global or bilateral safeguard or an antidumping or countervailing 
duty order, within a set period of time, they do not need to file a 
petition for TAA. Instead, they can proceed directly to the second step 
of demonstrating their individual eligibility and enrolling through the 
one-stop centers in their states.
  Second, the bill permits, but does not require, the Secretary of 
Labor to make her eligibility determination on an industry-wide or 
occupation-wide basis in other circumstances that suggest a plant-by-
plant approach is not appropriate. Such circumstances would include 
cases where the Secretary has received three or more petitions from 
workers at different plants in the same industry within a 6 month 
period. It would also include cases where the Senate Finance Committee 
or the House Ways and Means Committee passes a resolution requesting an 
industry-wide investigation. In these cases, the Secretary may certify 
workers in an entire industry only if she determines that the statutory 
eligibility criteria are satisfied on an industry-wide basis.
  Now that I have described what this bill does, I think it is 
important to emphasize some things that it does not do:
  It does not change the eligibility criteria or make any new 
categories of workers eligible for TAA.
  It does not make TAA benefits available to workers who quit their 
jobs or are fired for cause.
  It does not change the type or amount of benefits an eligible worker 
can receive.
  What it does is create a fair, predictable, and efficient way to make 
eligibility determinations where industry-wide effects are obvious.
  We owe our trade-affected workers a fair chance to train for the jobs 
of the future and get back into the workforce. And we owe our employers 
and our economic future well-trained workers.
  We already have a program designed to do just that. We should be 
doing everything we can to make sure that TAA benefits reach every 
qualified worker who needs them. This change is long overdue.
  I want to thank Senator Coleman for joining me in introducing this 
important legislation. He has been a strong partner in the quest to 
make TAA work for every American who needs it.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1444

         Be it enacted by the Senate and House of Representatives 
     of the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Trade Adjustment Assistance 
     for Industries Act of 2005''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Trade Adjustment Assistance assists workers and 
     agricultural commodity producers who lose their jobs for 
     trade-related reasons to retrain, gain new skills, and find 
     new jobs in growing sectors of the economy.
       (2) The total cost of providing adjustment assistance 
     represents a tiny fraction of the gains to the United States 
     economy as a whole that economists attribute to trade 
     liberalization.
       (3) In circumstances where, due to changes in market 
     conditions caused by the implementation of bilateral or 
     multilateral free

[[Page S8671]]

     trade agreements, unfair trade practices, unforeseen import 
     surges, and other reasons, import competition creates 
     industry-wide effects on domestic workers or agricultural 
     commodity producers, the current process of assessing 
     eligibility for trade adjustment assistance on a plant-by-
     plant basis is inefficient and can lead to unfair and 
     inconsistent results.

     SEC. 3. OTHER METHODS OF REQUESTING INVESTIGATION.

       Section 221 of the Trade Act of 1974 (19 U.S.C. 2271) is 
     amended--
       (1) by adding at the end the following:
       ``(c) Other Methods of Initiating a Petition.--Upon the 
     request of the President or the United States Trade 
     Representative, or the resolution of either the Committee on 
     Ways and Means of the House of Representatives or the 
     Committee on Finance of the Senate, the Secretary shall 
     promptly initiate an investigation under this chapter to 
     determine the eligibility for adjustment assistance of--
       ``(1) a group of workers (which may include workers from 
     more than one facility or employer); or
       ``(2) all workers in an occupation as that occupation is 
     defined in the Bureau of Labor Statistics Standard 
     Occupational Classification System.'';
       (2) in subsection (a)(2), by inserting ``or a request or 
     resolution filed under subsection (c),'' after ``paragraph 
     (1),''; and
       (3) in subsection (a)(3), by inserting ``, request, or 
     resolution'' after ``petition'' each place it appears.

     SEC. 4. NOTIFICATION.

       Section 224 of the Trade Act of 1974 (19 U.S.C. 2274) is 
     amended to read as follows:

     ``SEC. 224. NOTIFICATIONS REGARDING AFFIRMATIVE 
                   DETERMINATIONS AND SAFEGUARDS.

       ``(a) Notifications Regarding Chapter 1 Investigations and 
     Determinations.--Whenever the International Trade Commission 
     makes a report under section 202(f) containing an affirmative 
     finding regarding serious injury, or the threat thereof, to a 
     domestic industry, the Commission shall immediately--
       ``(1) notify the Secretary of Labor of that finding; and
       ``(2) in the case of a finding with respect to an 
     agricultural commodity, as defined in section 291, notify the 
     Secretary of Agriculture of that finding.
       ``(b) Notification Regarding Bilateral Safeguards.--The 
     International Trade Commission shall immediately notify the 
     Secretary of Labor and, in an investigation with respect to 
     an agricultural commodity, the Secretary of Agriculture, 
     whenever the Commission makes an affirmative determination 
     pursuant to one of the following provisions:
       ``(1) Section 421 of the Trade Act of 1974 (19 U.S.C. 
     2451).
       ``(2) Section 312 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 312 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 312 of the United States-Singapore Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(5) Section 312 of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(6) Section 302(b) of the North American Free Trade 
     Agreement Implementation Act (19 U.S.C. 3352(b)).
       ``(7) Section 212 of the United States-Jordan Free Trade 
     Agreement Implementation Act (19 U.S.C. 2112).
       ``(c) Agricultural Safeguards.--The Commissioner of Customs 
     shall immediately notify the Secretary of Labor and, in the 
     case of an agricultural commodity, the Secretary of 
     Agriculture, whenever the Commissioner of Customs assesses 
     additional duties on a product pursuant to one of the 
     following provisions:
       ``(1) Section 202 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(2) Section 202 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 201(c) of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 309 of the North American Free Trade 
     Agreement Implementation Act (19 U.S.C. 3358).
       ``(5) Section 301(a) of the United States-Canada Free Trade 
     Agreement Implementation Act of 1988 (19 U.S.C. 2112 note).
       ``(6) Section 404 of the United States-Israel Free Trade 
     Agreement Implementation Act (19 U.S.C. 2112 note).
       ``(d) Textile Safeguards.--The President shall immediately 
     notify the Secretary of Labor whenever the President makes a 
     positive determination pursuant to one of the following 
     provisions:
       ``(1) Section 322 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(2) Section 322 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 322 of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 322 of the United States-Singapore Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(e) Antidumping and Countervailing Duties.--Whenever the 
     International Trade Commission makes a final affirmative 
     determination pursuant to section 705 or section 735 of the 
     Tariff Act of 1930 (19 U.S.C. 1671d or 1673d), the Commission 
     shall immediately notify the Secretary of Labor and, in the 
     case of an agricultural commodity, the Secretary of 
     Agriculture, of that determination.''.

     SEC. 5. INDUSTRY-WIDE DETERMINATION.

       Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is 
     amended by adding at the end the following:
       ``(e) Investigation Regarding Industry-Wide 
     Certification.--If the Secretary receives a request or a 
     resolution under section 221(c) on behalf of workers in a 
     domestic industry or occupation (described in section 
     221(c)(2)) or receives 3 or more petitions under section 
     221(a) within a 180-day period on behalf of groups of workers 
     in a domestic industry or occupation, the Secretary shall 
     make an industry-wide determination under subsection (a) of 
     this section with respect to the domestic industry or 
     occupation in which the workers are or were employed. If the 
     Secretary does not make certification under the preceding 
     sentence, the Secretary shall make a determination of 
     eligibility under subsection (a) with respect to each group 
     of workers in that domestic industry or occupation from which 
     a petition was received.''.

     SEC. 6. COORDINATION WITH OTHER TRADE PROVISIONS.

       (a) Industry-Wide Certification Based on Global 
     Safeguards.--
       (1) Recommendations by itc.--
       (A) Section 202(e)(2)(D) of the Trade Act of 1974 (19 
     U.S.C. 2252(e)(2)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (B) Section 203(a)(3)(D) of the Trade Act of 1974 (19 
     U.S.C. 2253(a)(3)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (2) Assistance for workers.--Section 203(a)(1)(A) of the 
     Trade Act of 1974 (19 U.S.C. 2253(a)(1)(A)) is amended to 
     read as follows:
       ``(A) After receiving a report under section 202(f) 
     containing an affirmative finding regarding serious injury, 
     or the threat thereof, to a domestic industry--
       ``(i) the President shall take all appropriate and feasible 
     action within his power; and
       ``(ii)(I) the Secretary of Labor shall certify as eligible 
     to apply for adjustment assistance under section 223 workers 
     employed in the domestic industry defined by the Commission 
     if such workers become totally or partially separated, or are 
     threatened to become totally or partially separated, not 
     earlier than 1 year before, or not later than 1 year after, 
     the date on which the Commission made its report to the 
     President under section 202(f); and
       ``(II) in the case of a finding with respect to an 
     agricultural commodity as defined in section 291, the 
     Secretary of Agriculture shall certify as eligible to apply 
     for adjustment assistance under section 293 agricultural 
     commodity producers employed in the domestic production of 
     the agricultural commodity that is the subject of the finding 
     during the most recent marketing year.''.
       (b) Industry-Wide Certification Based on Bilateral 
     Safeguard Provisions or Antidumping or Countervailing Duty 
     Orders.--
       (1) In general.--Subchapter A of chapter 1 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by 
     inserting after section 224 the following new section:

     ``SEC. 224A. INDUSTRY-WIDE CERTIFICATION WHERE BILATERAL 
                   SAFEGUARD PROVISIONS INVOKED OR ANTIDUMPING OR 
                   COUNTERVAILING DUTIES IMPOSED.

       ``(a) In General.--
       ``(1) Mandatory certification.--Not later than 10 days 
     after the date on which the Secretary of Labor receives a 
     notification with respect to the imposition of a trade 
     remedy, safeguard determination, or antidumping or 
     countervailing duty determination under section 224 (a), (b), 
     (c), (d), or (e), the Secretary shall certify as eligible for 
     trade adjustment assistance under section 223(a) workers 
     employed in the domestic production of the article that is 
     the subject of the trade remedy, safeguard determination, or 
     antidumping or countervailing duty determination, as the case 
     may be, if such workers become totally or partially 
     separated, or are threatened to become totally or partially 
     separated not more than 1 year before or not more than 1 year 
     after the applicable date.
       ``(2) Applicable date.--In this section, the term 
     `applicable date' means--
       ``(A) the date on which the affirmative or positive 
     determination or finding is made in the case of a 
     notification under section 224 (a), (b), or (d);
       ``(B) the date on which a final determination is made in 
     the case of a notification under section 224(e); or
       ``(C) the date on which additional duties are assessed in 
     the case of a notification under section 224(c).
       ``(b) Qualifying Requirements for Workers.--The provisions 
     of subchapter B shall apply in the case of a worker covered 
     by a certification under this section or section 223(e), 
     except as follows:
       ``(1) Section 231(a)(5)(A)(ii) shall be applied--
       ``(A) by substituting `30th week' for `16th week' in 
     subclause (I); and
       ``(B) by substituting `26th week' for `8th week' in 
     subclause (II).
       ``(2) The provisions of section 236(a)(1) (A) and (B) shall 
     not apply.''.
       (2) Agricultural commodity producers.--Chapter 6 of title 
     II of the Trade Act of 1974

[[Page S8672]]

     (19 U.S.C. 2401 et seq.) is amended by striking section 294 
     and inserting the following:

     ``SEC. 294. INDUSTRY-WIDE CERTIFICATION FOR AGRICULTURAL 
                   COMMODITY PRODUCERS WHERE SAFEGUARD PROVISIONS 
                   INVOKED OR ANTIDUMPING OR COUNTERVAILING DUTIES 
                   IMPOSED.

       ``(a) In General.--Not later than 10 days after the date on 
     which the Secretary of Agriculture receives a notification 
     with respect to the imposition of a trade remedy, safeguard 
     determination, or antidumping or countervailing duty 
     determination under section 224 (b), (c), or (e), the 
     Secretary shall certify as eligible for trade adjustment 
     assistance under section 293(a) agricultural commodity 
     producers employed in the domestic production of the 
     agricultural commodity that is the subject of the trade 
     remedy, safeguard determination, or antidumping or 
     countervailing duty determination, as the case may be, during 
     the most recent marketing year.
       ``(b) Applicable Date.--In this section, the term 
     `applicable date' means--
       ``(1) the date on which the affirmative or positive 
     determination or finding is made in the case of a 
     notification under section 224(b);
       ``(2) the date on which a final determination is made in 
     the case of a notification under section 224(e); or
       ``(3) the date on which additional duties are assessed in 
     the case of a notification under section 224(c).''.
       (c) Technical and Conforming Amendments.--
       (1) Training.--Section 236(a)(2)(A) is amended by striking 
     ``$220,000,000, and inserting ``$440,000,000''.
       (2) Table of contents.--The table of contents for title II 
     of the Trade Act of 1974 is amended--
       (A) by striking the item relating to section 224 and 
     inserting the following:

``Sec. 224. Notifications regarding affirmative determinations and 
              safeguards.'';

       (B) by inserting after the item relating to section 224, 
     the following:

``Sec. 224A. Industry-wide certification based on bilateral safeguard 
              provisions invoked or antidumping or countervailing 
              duties imposed.'';

       and
       (C) by striking the item relating to section 294, and 
     inserting the following:

``Sec. 294. Industry-wide certification for agricultural commodity 
              producers where safeguard provisions invoked or 
              antidumping or countervailing duties imposed.''.

     SEC. 7. REGULATIONS.

       The Secretary of the Treasury, the Secretaries of 
     Agriculture and Labor, and the International Trade Commission 
     may promulgate such regulations as may be necessary to carry 
     out the amendments made by this Act.
                                 ______