Ruling Favors Domestic Tire Producers

June 18, 2009
International Trade Commission determines certain tires imported from China harm U.S. tire manufacturers; will recommend remedy

The U.S. International Trade Commission ruled in favor of domestic tire producers following an investigation involving certain passenger-vehicle and light-truck tires imported from China.

The quasi-judicial federal agency reached an affirmative determination, which means it found that certain passenger-vehicle and light-truck tires from China were being imported into the United States "in such increased quantities or under such conditions" as to harm domestic producers of like or competitive products, the ITC stated in a press announcement.

As a result of its affirmative determination, the ITC next will consider remedy. The commission is slated to provide its remedy proposal to President Barack Obama and U.S. Trade Representative Ron Kirk by July 9. The president makes the final decision about whether to provide relief to the U.S. industry and the type of relief that could be provided.

The Alliance for American Manufacturing expressed its pleasure in the ruling. "It's good news that the International Trade Commission voted in favor of the nation's tire manufacturers," said AAM Executive Director Scott Paul. "As with so many other manufactured products from China, its tire industry benefits from illegal government subsidies, labor exploitation, lax environmental standards and illegal currency manipulation."

The ITC determination was the result of a China safeguard investigation, spurred by Section 421 of the Trade Act of 1974. Section 421 was added by the U.S.-China Relations Act of 2000 and "implements a transitional bilateral safeguard provision" in the U.S. China agreement relating to China's accession to the World Trade Organization.

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