Committee Urges Obama to Support USW Petition

In a letter to President Obama, David Hartquist, executive director of the Committee to Support US Trade Laws (CSUSTL), encouraged the President to support a petition brought by the United Steelworkers union.

This month, the President will determine what import relief to provide in response to the petition, brought under Section 421, on imports of passenger and light truck tyres from China. The International Trade Commission, finding that imports of such tyres have increased rapidly and caused injury to the domestic industry, recommended specific tariff relief for three years to remedy that injury.

“We write to underscore both the importance of Section 421 as a legitimate trade remedy, and to respectfully urge its application in appropriate cases,” Hartquist said. “Campaign promises should be fulfilled and effective enforcement action taken to provide full relief where merited. This case is being watched closely to see whether Section 421 is an effective law or a dead issue.”

Section 421 was enacted as a condition for China’s entry into the World Trade Organization because WTO Members, including the United States, were concerned that the severe economic distortions in China’s economy could readily result in damaging import surges once China acceded to the WTO. Consequently, the United States insisted on the ability to obtain relief through a China-specific safeguard mechanism so that US industries and workers would not have to bear the brunt of China’s transition to a market-based economy. Section 421 was meant to be used to mitigate the harm that may occur when imports surges from China cause market disruption in the United States.

Hartquist also noted, “other countries have invoked China-specific safeguards to provide relief from Chinese import surges, the previous Administration refused to do so, despite numerous recommendations from the ITC that relief was merited. We urge President Obama to take a different path.” (Tire Review)