ABSTRACT
In the aftermath of North American Free Trade Agreement, and the pending arrival of Free Trade Agreement (FTA), Trade Adjustment Assistance (TAA) for distressed United States industries has become a necessary, if not sufficient, policy to relieve the adverse impacts of displaced businesses and workers due to import competition. TAA petitions have been filed with the United States Department of Labor by the steel, paper and publishing, footwear, pharmaceutical, garment, and automobile industries. Israel FTA have competed away benefits of the domestic footwear, textile and wearing apparels, and other American industries. Imports are therefore seen as a causal link to TAA benefits. The TAA program began in 1962, when United States firms and workers suffered transitional injury due to the impact of increased imports. The small import impact may be attributed to the pharmaceutical companies' longstanding wariness towards foreign competition, which led them to utilize other strategies such as drug licensing.
