A World Trade Organization (WTO) appeal panel’s decision
upholding tariffs on tires imported from China is
drawing praise from the United Steelworkers Union (USW),
which had filed the original case.
“The WTO reaffirmed that President Obama’s decision to
stand up for America’s workers against the flood of
passenger and light truck tire imports from China were
legal and justified,” reports USW President Leo W.
Gerard.
“Since relief was granted by the President, the law has
had its intended effect,” he says. “Investments in U.S.
tire manufacturing are up, jobs have been created and
our companies are shipping more tires to consumers.
While we still need to accelerate our nation’s economic
recovery, the economic benefits of the trade relief are
clear and indisputable.”
Gerard goes on to note that “this represents an
important victory for America’s workers and the
resulting benefits for passenger and light truck tire
producers operating here. It should signal that
enforcing our trade laws is a vital part of an economic
program to revitalize the economy and strengthen
manufacturing.”
Tire tariffs “continue to have restraining effects on
Chinese tire imports,” he says. In 2010, Chinese tire
imports were 34 percent lower compared to 2008, the year
before the USW filed its petition. And imports were down
another 12 percent in the first six months of 2011,
compared to the same period in 2010.
“Currently, the industry and its workers have
experienced significant improvement in terms of
production and sales of tires in the U.S. market.
Companies such as Goodyear Tire and Rubber and Cooper
Tire have reported significantly higher sales revenues
for the second quarter of 2011, compared to the second
quarter of 2010,” Gerard says.
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“In response to these improved market conditions, the
industry has invested significantly in new capacity.
Bridgestone-Firestone announced last month that it was
investing $135 million to create 120 jobs in a plant in
Aiken County, S.C. Cooper Tire invested some $30 million
in its Findlay, Ohio plant in 2010, and Continental Tire
completed a $224 million expansion of its plant in Mt.
Vernon, Ill. Continental Tire has just started work on a
new green field tire plant,” he adds.
Gerard says “some manufacturers have failed to take full
advantage of the improved environment for domestic tire
manufacturing following import relief.” He cites “at
least one company that decided to close a productive
facility, but overall the re-investments and expansions
have demonstrated import relief is working.”
U.S. companies are hiring, according to Gerard.
“Michelin employs nearly 300 more workers in their U.S.
plants producing passenger car and light truck tires in
2010, compared to 2008,” he adds.
“U.S. government statistics also show that employment in
the overall tire industry, which had declined by more
than 25 percent between January 2005 and September 2009,
has stabilized significantly since President Obama
imposed the Section 421 tariffs nearly two years ago,”
he says.
“In sum, the tariffs not only stemmed the hemorrhaging
of jobs and investment that the flood of Chinese imports
caused – they helped the industry regain its footing,
retool, and expand, providing a rare bright spot in our
struggling economy,” says Gerard.
For more information, visit www.usw.org.