The USW advocates strong enforcement of a U.S. trade law at a timely moment during the opening by President Obama of the U.S.-China Strategic and Economic Dialogue in Washington.
Last month, a majority vote of the ITC found that tariff relief was needed to urgently reduce tire imports. The ITC commissioners who found market disruption recommended that tariffs be placed across the board on passenger and light truck tires from China: 55% in year one, 45% in year two and 35% in year three.
According to the submission filed with the USTR, the USW will be asking the U.S. interagency group reviewing the remedy to be recommended to President Obama that the ITC proposal should be supported. In addition, the USW wants the remedy modified upwards – above the 55% duty advocated by the trade commission in the first year.
Under the Section 421 trade law provision for this case, the effective date of any remedy provided by the President would be Oct. 2, 2009.
USW data for 2004-08 shows the domestic industry has suffered massive injury. Capacity by the tire companies is down 17.8%, and production is down by 26.6%. Employment has been reduced by 14.2% along with reductions in hours worked and wages paid. Net domestic sales were down 28%, according to the USW.
As pointed out by the USW, the ITC commissioners who voted on the remedy were unanimous that there would be little adverse effect on U.S. consumers from their recommended remedy.
For more information on the USW’s Section 421 trade case against Chinese tire imports: www.usw.org/tires. (Tire Review/Akron)
