At
the urging of U.S. Senator Kirsten Gillibrand, today the International
Trade Commission (ITC) determined that a surge of imports of tires from
China has injured domestic tire industry workers and recommend a
remedy. In April, Senator Gillibrand called on the ITC to hold a
hearing on this issue and in May expressed her support for the
petition, urging action to help preserve the jobs of close to 1,000
workers at the Goodyear-Dunlop facility in Western New York.
“I
am pleased to see that the ITC has determined that an import surge of
tires from China is adversely affecting the domestic industry,” Senator
Gillibrand said. “Over the last four years, tire
imports from China have increased by more than 200 percent in volume
and close to 300 percent in value. This dramatic increase in imports –
close to 46 million tires – has disrupted the market for many of our
domestic tire manufacturers, affecting jobs in New York and across the
country. It is important that the ITC remains engaged to fairly enforce
our trade agreements and provide relief for our workers.”
Section
421 of the Trade Act of 1974, allows companies or workers to petition
for import relief when they can demonstrate that a surge in a
particular product from China has caused or threatens to cause injury.
This safeguard mechanism was created in 2000 as part of the process of
bringing China into the World Trade Organization, and was agreed to in
both China and the United States.
In
its petition in this case, the USW demonstrated how imports of
passenger vehicle and light truck tires from China between 2004 and
2008 led to sharp declines in domestic production and over 5,000 job
losses. The petition presented data illustrating there was a 215
percent increase in imports by volume and a 295 percent increase in
imports in terms of dollar value over the five-year period from 2003 to
2008. The petition laid out convincing evidence that the import surge
has led to sharp declines in domestic production and job losses that
exceed 5,000 and are expected to grow unless import controls are put in
place.
The
ITC will vote on an appropriate remedy on June 29, after which it will
present its report and recommendation to the President by July 9. The
President, in consultation with cabinet and administration officials,
will then be required to issue a decision on a remedy by
mid-September.