A Study on Trade Damage and Trade Adjustment Assistance(TAA)

Abstract

Purpose: This paper tries to evaluate Korea's Trade Adjustment Assistance (TAA) system and proposes measures to more faithfully implement amendments to the TAA legislation from 2022. Research design, data, and methodology: This paper focuses on the regulations related to the TAA system, and on the problems that may arise from the regulations. Results: TAA support is allowed only when damage caused by the opening of trade is proven and confirmed. But it is very difficult for most small and medium-sized companies to prove trade damage. Conclusions: While the TAA system is designed to support trade-damaged companies, it should also include policies that focus on restructuring the business of a damaged company.