US to Impose Duties on Chinese OTR Tyres

The US Department of Commerce has decided upon the implementation of countervailing duties on new OTR tyres imported from China, a move based upon assertions that the manufacturers of these products are financially benefiting from Chinese government subsidies. The Department found that OTR tyre manufacturers in China received subsidies including loans from government-owned banks, tax breaks, government grants, and access to low-cost rubber and land, with subsidy margins for Chinese tyremakers ranging from 2.38 to 6.59 per cent.

“Yesterday’s decision is just one step towards holding producers in China to the same standards as everyone else in the global economy,” said USW International president Leo W. Gerard. “U.S. workers have paid the price for China’s unfair government subsidies for too long. Today’s decision can help redress the unfair advantage that Chinese producers enjoy due to government subsidies in China.

“The USW will continue to be engaged with this investigation to ensure final margins accurately reflect the full scope of subsidies occurring in China,” Gerard added. “We’ll be pushing China and its tyre producers to cooperate with the investigation and provide complete and accurate information on their subsidy programs.”

The investigation was initiated in response to a petition filed jointly by Titan International, Bridgestone/Firestone, and Denman in June 2007.