Trade Cases | April 29, 2010
USW Updates and Background on 421 China Tire Case
The United Steelworkers (USW) April 20, 2009, filed a major trade case at the U.S. International Trade Commission, challenging the flood of imported consumer tires from China that have led to thousands of job losses and a growing number of plant closings throughout the United States. Some of the workers affected are shown in the above photos: USW local union leaders who produce consumer tires.
(Page last updated April 13, 2010)
USW Report to President Obama - April 2010
Early Success of Section 421 Safeguard Relief to U.S. Consumer Tire Industry
Click here to download the letter USW International President Leo W. Gerard sent to President Obama talking about the union's report showing the success of the relief to the domestic tire industry.
SUMMARY OF LETTER: Gerard's letter to President Obama cites the union's six-month updated report from public data and industry analysts documenting early success of the Section 421 safeguard relief for the domestic tire industry. The tariff order was implemented on Sept. 11, 2009. The USW president said production has increased and utilization rates are moving higher toward full capacity. Employment in consumer and light truck tires has not only been maintained, but workers have been recalled. Gerard thanked President Obama for his decision and urged the Section 421 relief be continued for the full three-year period so the domestic tire industry and workers can have a fair opportunity to recover from the damage done by China's surge of consumer tires.
Click here to download the report.
SUMMARY OF USW REPORT: Charts from public data show China's exports to the US decreased significantly in October 2009 after the tariffs went into effect. This trend has continued into 2010, with the US share of China's exports dropping to 24% on a volume basis in February. Import Prices: From January to September 2009, imports from China averaged $38 per tire (on a landed cost duty paid basis). From October 2009 to January 2010, imports from China averaged $44 per tire. This is an increase of $6 per tire, or 16%. No where near the "doubling" from $200 to $400 for a set of four $50 tires claimed by opponents to the tariff.
President Obama Fulfills Trade Enforecement Pledge in USW's 421 case
Click here to access the Sept. 18, 2009 letter from USW President Gerard to Congress, suggesting the Sept. 11 decision by President Obama to enforce the recommendations of the trade commission and order tariffs on China passenger and light truck tire imports, signals a new assertiveness to act on behalf of domestic manufacturing.
Click here to download a Sept. 14, 2009 fact sheet explaining why threats of retaliation by China are unfounded, based on WTO rules.
Click here for the USW's Sept. 11, 2009, press release lauding President Obama's decision to enforce trade rules in the union's 421 case involving passenger tires imported from China.
Click here for the Sept. 11, 2009, U.S. Trade Representative's press release announcing the decision.
Letters to President Obama in Support of the ITC Recommendation under Section 421
• Rep. Peter Visclosky (D-IN)
• Rep. Tim Murphy (R-PA)
• Rep. Joe Wilson (R-SC)
• Rep. Robert Aderholt (R-AL)
• Rep. Mark Souder (R-IN)
• Rep. John Murtha (D-PA)
• Rep. Alan Mollohan (D-WV)
• Rep. Shelly Moore Capito (R-WV)
• Rep. Steven LaTourette (R-OH)
• Rep. Dennis Kucinich (D-OH)
• Rep. Bart Stupak (D-MI)
Letter of Support from International Association of Machinists and Aerospace Workers – R. Thomas Buffenbarger
USW President Gerard Urges Congress Add Voice on China Tire Imports Trade Case
Click here for a USW letter transmitted Aug. 31, 2009, to Congress saying now is the time to draw a line in the sand for enforcement of the nation’s trade laws and to urge President Obama to support an affirmative decision on relief in the trade case on surging imports of consumer tires from China.
Click here for a Aug. 19 summary of the USW’s responses to opponents’ arguments against relief from China tire imports as presented before the U.S. Trade Representative public hearing held Aug. 7, 2009.
Testimony from Aug. 7, 2009, U.S. Trade Representative Hearing
USW International President Leo W. Gerard calls for a remedy to help the U.S. tire industry and its workers combat the surge of tires imported from China. Click here for the testimony.
USW International Vice President Tom Conway refutes the opposition's claims in the case against the flood of imported Chinese tires. Click here for the testimony.
Former USW International Executive Ron Hoover makes the case in his U.S. Trade Representative testimony for retired tire workers and their families, explaining why a trade remedy can mean life or death for them. Click here for his testimony.
Dr. Kenneth R. Button, senior vice president at Economic Consulting Services, testifies that the proposed International Trade Commission remedy to help combat the flood of imported Chinese tires is good economics for the United States. Click here for his testimony.
Jim Wansley, former USW local union president at closed Goodyear plant in Tyler, Texas, testifies about the painful impact of a closed tire factory on workers, their families and their communities. Click here for his testimony.
Terence P. Stewart, managing partner at Stewart & Stewart, a lawfirm that specializes in global trade, testifies that it's time to follow the law, which was created to protect American companies and workers, because the evidence is so overwhelming in this case. Click here for the testimony.
Filing Documents Before USTR
Click here for the July 27, 2009, public version filing of written comments on remedy by the USW before the USTR in the Section 421 trade case on China tire imports.
Click Here for the December 13, 2010 press release about United States Trade Representative Ron Kirk announcement that a World Trade Organization (WTO) dispute settlement panel found in favor of the United States in a dispute brought by China challenging the imposition of additional duties on imports of Chinese tires under the transitional safeguard mechanism included in China’s Protocol of Accession to the WTO.
Click here for the September 11, 2009, press release about the USW Supporting the President’s Enforcement of Trade Laws.
Click here for the September 8, 2009, press release about the USW Urges White House to Address Current China Import Tire Spike.
Click here for the September 2, 2009, press release about the USW is confident Obama will will grant the U.S. tire industry meaningful relief from Chinese tire imports.
Click here for the July 27, 2009, press release about the USW’s requested appearance before USTR on China tire imports remedy.
Click here for the June 18,2009, press release lauding the 4-2 International Trade Commission ruling affirming the USW's unfair trade case.
Click here for a June 2, 2009, press release about the ITC hearing.
Click here for the April 20, 2009, press release about the USW's filing of the major 421 trade case.
Click here for background on the unfair trade issue and how it has impacted U.S. tire jobs.
Click here for a timeline of the USW's 421 case.
Click here for background on the U.S. International Trade Commission's remedy and the USW's recommendation.
Click here for responses to some of the common myths presented by Chinese tire producers and importers.
Click here to download a chart detailing: ‘2009 Passenger Car & Light Truck Tire Imports From China; Jan. 09 to Aug. 09
Click here to download a chart detailing the rapid increase in the imports of Chinese tires. (08/05/09)
Click here to download a chart detailing the job losses and other suffering the domestic tire injury has endured as a result of the influx of Chinese tires. (08/05/09)
Click here to download a chart explaining how tires imported from China were a direct cause of injury to the domestic industry. (08/05/09)
Click here to download a chart showing how the International Trade Commission's recommended remedy would have a positive impact on the economy, outweighing costs to consumers. (08/05/09)
Click here for some frequently asked questions and the USW's answers.
U.S. Tire Plant Shut Downs
Click here for a chart detailing U.S. tire plant shut downs.
Click here to read statements from Ohio Sen. Sherrod Brown, Arkansas Sen. Blanche Lincoln and others about the USW's case when it was filed.
Several members of Congress and the Senate reacted to the June 18 ITC ruling. Here are few links:
Click here for comments from other lawmakers, including Sen. Sherrod Brown, and U.S. Reps. Mark Souder, Carolyn Kilpatrick, Louise Slaughter, and House Ways and Means Committee Chairman Charles Rangel and Subcommittee Chairman Sander Levin.
Click here to read a July 24. 2009, letter from the United Auto Workers urging President Obama to apply the U.S. Trade Commission's recommendation in the 421 case.
Click here to read a July 27, 2009, letter from the Communications Workers of America urging President Obama to apply U.S. Trade Commission's recommendation in the 421 case.
Click here to read a July 16,2009, letter sent to President Obama signed by Sens. Evan Bayh, Sherrod Brown, Richard Burr, Robert Casey Jr., Kirsten Gillibrand, Kay Hagan, Lindsey Graham, Arlen Spector, Debbie Stabenow and Mark Warner. The letter urges President Obama to accept the U.S. International Trade Commission's recommendations for relief from a surge of tires imported from China.
Click here to read a letter sent to the U.S. International Trade Commission on June 24, 2009, by Michigan Sen. Debbie Stabenow. She calls on the ITC to support middle class U.S. jobs by enforcing trade rules.
Click here for testimony of USW International and Local officers before the International Trade Commission's June 2, 2009, hearing on the Chinese tire case.
Support Testimony Presented at ITC Hearing, Jun. 2, 2009:
Support Testimony Presented at ITC Hearing, Jun. 2, 2009:
Aderholt, Robert (R-AL). Click here for statement.
Bishop, Sanford (D-GA) Click here for statement. Cole, Tom (R-OK). Click here for statement.
Kilpatrick, Carolyn (D-MI)
Ryan, Tim (D-OH)
Sanford (D-GA) Click here for statement. Slaughter, Louise (D-NY)
Support Letters Submitted to ITC:
Burr, Richard (R-NC) Click here for statement.
Davis, Artur (D-AL) Click here for statement.
Durbin, Ricahard (D-Il) Click here for statement. Gillibrand, Kirsten (D-NY)
Gordon, Bart (D-TN). Click here for letter.
Graham, Lindsey (R-SC) Click here for statement.
Jenkins, Lynn (R-KS) Click here for statement.
Kissel, Larry (R-NC). Click here for letter.
McCotter, Thaddeus (R-MI) Click here for letter.
McIntyre, Mike (D-NC) Click here for statement.
Ryan, Tim (D-OH) Click here for statement. Souder, Mark (R-IN)
Shuster, Bill (R-PA). Click here for letter.
Tanner, John (D-TN) Click here for statement. Warner, Mark (R-VA)
Ohio Gov. Ted Strickland. Click here for letter.