NAFTA was expected to benefit all three nations by making it less expensive for them to trade with each other. However, there have been some drawbacks to the agreement, in Mexico, farmers have been negatively impacted by the decrease in the demand for Mexican grown corn. In the United States, the export of manufactured goods increased, however, manufacturing jobs decreased completely decimating some industrial cities. Canada has experienced the greatest benefits from NAFTA with employment steadily increasing since it was signed into law.
The North American Free Trade Act-Transitional Adjustment Assistance program was created by the United States Department of Labor. The program helps workers who have been negatively affected by the NAFTA trade agreement resulting in the loss of their jobs as a result of trade to Canada or Mexico or by production shifting out of the country. The program extends a rapid response to the needs of these displaced workers and extends basic readjustment services to them.
Benefits of the NAFTA-TAA program include reemployment services, training, income support, and job search and relocation services. Affected workers who apply for NAFTA-TAA benefits may receive career counseling and job placement services as well as up to 104 weeks of approved training in occupational skills or basic educational improvement. The NAFTA-TAA does not provide funding for higher education. The NAFTA-TAA provides cash payments to displaced workers after their unemployment insurance expires providing an additional 52 weeks of assistance. Further, the NAFTA-TAA will provide funds to displaced workers who seek to relocate to look for or start a new job.
A worker displaced for plant closure or other factors created either directly or indirectly by the North American Free Trade Agreement must apply by petition with a group of three or more workers, their employer, their union, or a community-based organization. The petition must then be mailed to the United States Department of Labor and a decision is made within 30 days.