USW Wants USTR Appearance

The United Steelworkers (USW) union wants make its case for restricting Chinese tyre imports and has requested an appearance before the US Trade Representative (USTR) public hearing scheduled 7 August. The USW advocates strong enforcement of a US trade law. Last month, a majority vote of the ITC reportedly found that “tariff relief was needed to urgently reduce tire imports,” say the steelworkers. However, trade associations including the TIA have questioned the effectiveness of such measures.

USW President Leo W. Gerard said: “Our nation’s job loss numbers at tyre factories dramatically understate the impact China’s flooding imports have caused in the communities where our represented workers live. The consequences of lost tyre production jobs have extended to many thousands of other jobs in supporting industries and suppliers that have also been lost.”

The ITC commissioners recommended that tariffs be placed across the board on passenger and light truck tyres from China – 55 per cent in year one, 45 per cent in year two and 35 per cent in year three. According to the submission filed with the USTR, the USW will be asking the US 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 per cent duty advocated by the trade commission in the first year.

Gerard explained, “We are urging a higher tariff in the first year so US tyre workers get the full relief intended to prevent the undermining of any frontloading of inventories by importers or Chinese exporters who are dumping higher volumes of imports prior to the 17 September 2009 decision deadline by the President.”

According to the USW, consumer tyre imports from China increased 215 per cent by volume between 2004 and 2008. Chinese tyre producers have reportedly projected that additional eight million tyres will be imported between 2009 and 2010 over and above the 46 million tyres imported in the US last year.

USW data for 2004 to 2008 shows US tyre makers’ capacity is down 17.8 per cent, and production is down by 26.6 per cent. Employment reportedly reduced by 14.2 per cent along with reductions in hours worked and wages paid. Net domestic sales were down 28 per cent. As pointed out by the USW, the ITC commissioners who voted on the remedy were unanimous that there would be little adverse effect on US consumers from their recommended remedy.