The just-expired Section 421 tariff on imported China-produced consumer tires failed to save or add new tire worker jobs, TIA said in a statement issued Sept. 27.
At the same time, TIA said that its favors "free and open markets with level playing fields."
In its statement, TIA pointed to a report by the Peterson Institute for International Economics that claimed, “approximately 1,200 American jobs were saved as a result of the Chinese tire tariffs,” but, in fact, the tariff action by the Obama Administration “mostly benefited other tire exporting countries first and American manufacturers second.”
TIA reminded that at the time the Section 421 tariff schedule took effect in September 2009, executive vice president Roy Littlefield said, “The tire manufacturers made the decision years ago to shift production of these lower-cost tires out of the U.S. All this action will do is force the tire manufacturers to shift production of these lower-cost tires to other countries.”
That is exactly what happened, TIA said.
The association noted the recent call by the Administration for the World Trade Organization to investigate claims that the Chinese government was illegally supporting automakers and auto part companies exporting products to the U.S., and that “these companies received $1 billion in subsidies between 2009 and 2011.”
“Although this is a different animal from the Chinese tire tariff…it is a continuation of the on-going efforts of integrating the Asian giant into the world market,” TIA said. “This is happening by the fact that China is using the WTO to resolve disputes between itself and the U.S. In fact, the Chinese have submitted a countersuit to the WTO because of the Administration’s actions.”
“It is good that the Chinese government is using the WTO,” said Littlefield. “It is the proper mechanism for resolving such disagreements and they are establishing a good track record of complying with the WTO’s findings."