U.S. Trade Commission Rules for USW in China Tire Import Case

by Mike Hall, Jun 18, 2009

The International Trade Commission (ITC) today ruled in favor of a trade petition filed in April by the United Steelworkers (USW) to slow a torrent of tire exports to the United States during the past several years. Those exports have cost thousands of U.S. jobs.

According to the USW petition, nearly 5,100 U.S. tire workers have lost their jobs as a result of massive erosion in the domestic market since 2004. The loss of jobs coincides with a huge surge in imports of consumer tires from China. Some 3,000 more jobs are slated to be lost by year’s end as three U.S. plants are threatened with closure.

In statement, USW President Leo W. Gerard says:

Our domestic industries cannot survive unless our government enforces the trade laws designed to curb and dissuade anti-competitive practices that cause market disruptions. We anticipate the remedies that will be delivered to President Obama will allow the time necessary to rebuild the U.S. tire industry.

Between 2004 and 2008, imports of consumer tires from China increased by 215 percent in volume and 295 percent by value. In 2008, China exported nearly 46 million consumer tires with a value of more than $1.7 billion to this country, making it the largest source of consumer tire imports.

The union’s petition sought to cap Chinese tire imports at 2005 levels with a 5 percent per year increase over the next three years. The final decision on whether or not to impose trade remedies is up to President Obama—who made a campaign pledge to enforce our trade laws more effectively.

The Alliance for American Manufacturing praised the ITC decision and says China’s tire industry, like most of that nation’s manufacturing sectors,

benefits from illegal government subsidies, labor exploitation, lax environmental standards, and illegal currency manipulation. As a result, U.S. producers, who play by the rules, can’t fairly compete. We’re hopeful the Obama administration will enforce the ITC’s wise ruling.

During a June hearing, Gerard told the ITC that the union has used every tool at its disposal to save the U.S. consumer tire industry from total collapse, including contract concessions, wage increase deferrals and improved productivity.

But all of these efforts aren’t worth a dime if the market is being pulled out right from under us. With a short period of relief, we can start to build a sustainable foundation for the future of the American tire industry and its workers.

At the same hearing, USW Vice President Tom Conway, chairman of the bargaining committee at Goodyear Tire & Rubber Co., said the company has warned the union since 2003 that low-cost imports were threatening its North American operations.

Our union has made painful sacrifices to keep our companies afloat in a sea of cheap imports from China. We have also worked hand-in-hand with our companies to ensure they keep investing in our facilities so we can stay on the cutting edge of technology and innovation.

For an in-depth look at the USW battle against unfair tire imports, click here.

Print This Article | E-Mail This Article |Comments (2)