UNITED STATES DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-98,211

KWS SERVICES NORTH AMERICA LLC

A WHOLLY OWNED SUBSIDIARY OF KWS SEEDS INC.

BLOOMINGTON, MINNESOTA

Negative Determination Regarding Eligibility

To Apply For Worker Adjustment Assistance

And Alternative Trade Adjustment Assistance

TRADE ADJUSTMENT ASSISTANCE

In accordance with Section 223 of the Trade Act of 1974, as
amended (the Act), 19 U.S.C. § 2273, the Department of Labor
(Department) herein presents the results of an investigation
regarding certification of eligibility to apply for worker adjustment
assistance.

Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b) of
Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department to issue a certification for workers under Section 222(a)
of the Act, 19 U.S.C. § 2272(a), the following three criteria must be
met:

(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm, or
an appropriate subdivision of the firm, have become totally
or partially separated, or are threatened to become totally
or partially separated.

(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:

(A) Increased Imports Path:

(i) sales or production, or both, at the workers' firm must
have decreased absolutely, AND

(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and

(iii) the increase described in clause (ii) contributed
importantly to such workers' separation or threat of
separation and to the decline in the sales or production of
such firm or subdivision.

(B) Shift in Production Path:

(i) there has been a shift in production by such workers' firm
or subdivision to a foreign country of articles like or
directly competitive with articles which are produced by
such firm or subdivision; and

(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a free
trade agreement with the United States;

(II)the country to which the workers' firm has shifted
production of the articles is a beneficiary country under
the Andean Trade Preference Act, African Growth and
Opportunity Act, or the Caribbean Basin Economic Recovery
Act; or

(III)there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a certification for workers under
Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers of a
Supplier or a Downstream Producer, the following criteria must be
met:

(1) a significant number or proportion of the workers in the
workers' firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;

(2) the workers' firm is a Supplier or Downstream Producer to a
firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production is
related to the article that was the basis for such
certification; and

(3) either

(A) the workers' firm is a supplier and the component parts
it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers' firm; or

(B) a loss of business by the workers' firm with the firm
described in paragraph (2) contributed importantly to the
workers' separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms "Supplier" and "Downstream Producer."

The investigation was initiated in response to a Trade
Adjustment Assistance for Workers (TAA) and Alternative Trade
Adjustment Assistance (ATAA) petition dated March 1, 2022 and filed
on March 2, 2022 by a State Workforce Agency on behalf of former
workers of KWS Services North America LLC, a wholly owned
subsidiary of KWS Seeds Inc., Bloomington, Minnesota (hereafter
referred to as the "group of workers"). In accordance with 20 C.F.R.
618.110 group of workers is defined as, ""¦including teleworkers and
staffed workers." The workers' firm is engaged in activities related
to the supply of administrative business services. The petition
alleges that worker separations, or threats thereof, were due to a
shift in the supply of information technology services to Germany.

In order to be considered eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, the group of
workers seeking certification (or on whose behalf certification is
being sought) must work for a "firm" or appropriate subdivision that
produces an article. The definition of a firm includes an individual
proprietorship, partnership, joint venture, association, corporation
(including a development corporation), business trust, cooperative,
trustee in bankruptcy, and receiver under decree of any court.

Per 20 C.F.R. 618.110, Article means "a tangible good or an
intangible good sold or produced by a firm. The good must be the
subject of the sale or production, and not an object that is produced
incidentally to the sale or production. An article can be measured in
individual production units or commercial production units, such as
with commodities. Sale of an article is the means by which revenue is
generated, accumulated, or calculated."

The investigation revealed that the workers' firm is not
"BetaSeed" and is not a sugar beet seed supplier, as indicated in
the petition.

The investigation revealed that the workers' firm does not
produce an article within the meaning of Section 222(a) or Section
222(b) of the Act; rather, KWS Services North America LLC is engaged
in activities related to the supply of administrative business
services.

ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE

In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
(ATAA), the group of workers must be certified eligible to apply for
Trade Adjustment Assistance (TAA). Because the group of workers are
denied eligibility to apply for TAA, the group of workers cannot be
certified eligible for ATAA.

Conclusion

After careful review of the facts obtained in the investigation,
I determine that all workers of KWS Services North America LLC, a
wholly owned subsidiary of KWS Seeds Inc., Bloomington, Minnesota,
are denied eligibility to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, and are also denied eligibility
to apply for Alternative Trade Adjustment Assistance under Section
246 of the Trade Act of 1974.

Signed in Washington, D.C., this 6th day of April, 2022



/s/ Del-Min Amy Chen
_______________________
DEL-MIN AMY CHEN

Certifying Officer, Office of

Trade Adjustment Assistance