RISK MANAGEMENT

Shanghai Pilot FTZ to Implement Trade Adjustment Assistance Program on July 15

Shanghai Pilot Free Trade Zone will implement the Trade Adjustment Assistance program on a trial basis from July 15.

The TAA program was first introduced in 1962 to reduce the damaging impact of imports felt by certain sectors of the US economy. It was then adopted by the EU, Japan, South Korea and other economies, officials said.

FTZ enterprises can apply for assistance if they suffer labor losses, shrinking sales, and falling share prices due to trade frictions. Government assistance is available if a company reports a 20 percent loss of employees in one year or a 10 percent loss for two consecutive years, or a 30 percent drop in outputs or sales.

The assistance comes in the form of financial and technological support for enterprises in marketing, product R&D and certification, technological upgrade, business consulting, employee training, export credit insurance, and supply chain management for a period of two years.

Trade friction is a common problem facing Chinese exporters. By the end of 2016, Shanghai companies were involved in more than 740 trade dispute cases with 445 cases ruled against them, according to official statistics.

 

Related Articles

Global economic confidence is at its highest since Q1 2009, said ACCA
Global debt hits record high and governments should prepare for storms loomin
China requires US sorghum importers to put up 176.8% deposit on shipments...
This is the third straight quarter that China reports a growth rate of 6.8%