| Employment Department Programs |
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| Trade Act/NAFTA |
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Program Description
Prior to the passage of the Trade Adjustment Reform Act of 2002, the Trade Act
and North American Free Trade Act (NAFTA) provided training allowances and
re-employment assistance to workers affected by shift in production to Mexico or Canada or imports from other countries.
New Legislation
When the President signed into law the Trade Adjustment Reform Act of 2002 on
August 6, 2002, the NAFTA and Trade Act programs were consolidated into one program and NAFTA was repealed.
The new legislation expands eligibility to more worker groups and increases existing
benefits. Workers must still be affected by imports but the shift in production language
will now include any country the US negotiates a trade agreement with.
Many of the new provisions will be available to worker groups covered by petitions
filed on or after November 4, 2002 and certified by the Department of Labor (DOL). Services and benefits available through the "old" NAFTA and Trade Act law will still be
available for petitions filed and certified prior to November 4, 2002.
Service Delivery
The Trade Act and NAFTA budgets provide administrative funding to field office
representatives located in Employment Department offices and One-Stop locations
throughout Oregon. Representatives provide services, depending on the level of need, to
trade-affected workers in their area.
NAFTA Program and administrative funding will continue to be available to serve participants still covered by NAFTA petitions filed prior to November 4, 2002.
Funding
Since the demand for services fluctuates depending on labor market conditions, the federal funding strategy is to fund states based on projected need. However, in practice, the DOL actually funds states after they have obligated dollars to pay for retraining
and other services under Trade Act and NAFTA.
Current Funding Situation
On August 30, 2002, a Notice of Obligation from DOL for $4,042,626 for Trade Act program and administrative funding through a National Emergency Grant (NEG)
was received by the Department of Community Colleges and Workforce Development
(DCCWD). An Interagency Agreement is in place to allow the Employment Department to administer these funds to provide services to Trade Act eligible workers. With this funding we were able to lift the suspension of the approval and funding of new training plans, modifications to existing training plans, job search and relocation requests. When the NEG funds are exhausted, we will process a funding request of regular Trade Act dollars.
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