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USW Applauds Preliminary Antidumping Duties Placed On Off-The-Road Tire Imports From China
For Immediate Release February 6, 2008
Washington, D.C. -- The United Steelworkers (USW) welcomed today’s preliminary decision to impose antidumping duties on new pneumatic off-the-road (OTR) tire imports from China announced by the U.S. Commerce Department.
“Today’s decision will help level the playing field for U.S. workers by requiring Chinese tire imports to be priced fairly,” said USW International President Leo W. Gerard. “This case shows the importance of vigorous enforcement of our trade laws as a first line of defense against unfair trade practices that harm American industries and jobs.”
The Commerce Department investigated four individual Chinese producers who received rates ranging from 11 to 52 percent. Other companies receiving separate rates are subject to a margin that reflects the weighted average of these individual rates, or 25 percent. For companies not entitled to individual rates, the country wide rate of 210 percent will apply. As a result of the determination, all importers of OTR tires from China will have to post a bond or cash deposit equal to the margin amounts pending the final determination this June.
The agency will now continue the proceeding by holding hearings, conducting verifications of information, and reaching a final determination by early June of this year. The International Trade Commission (ITC) will also investigate the issue of injury and reach a determination on that issue later.
“The USW will continue to be actively engaged in this ongoing investigation to ensure final margins accurately reflect the full scope of dumping that is occurring,” said Gerard. “We’ll be pushing China and its tire producers to cooperate with the investigation and asking the Commerce Department to fully and fairly enforce the law against dumped imports.”
The USW estimates it represents 70 percent of the domestic OTR tire makers with workers employed at Titan production plants employing about 1,355 workers in Des Moines, Iowa; Freeport, Ill.; and Bryan, Ohio; plus a total of about 4,215 employed at tire plants of Bridgestone-Firestone in Des Moines and Bloomington, Ill.; Denman Tire in Leavittsburg, Ohio; and Goodyear Tire and Rubber in Topeka, Kan., and Buffalo.
Off-the-road tires are designed for use on a broad array of agricultural, construction and industrial vehicles. Titan Tire Corporation, a U.S. producer, and the USW filed a petition in June of last year, alleging that the Chinese were dumping OTR tires and causing injury to U.S. producers and workers.
Dumping is selling imported goods in the U.S. at less than fair value. If both Commerce and the ITC issue final affirmative determinations, an antidumping duty order will be issued and future imports of the tires from China will be assessed with remedial duties to compensate for the unfair pricing. Titan and USW also filed a countervailing duty petition last June, saying that Chinese OTR tires were unfairly benefiting from subsidies. Commerce issued its affirmative preliminary determination in that proceeding in December. The two proceedings will now move ahead on the same schedule.
CONTACT: Gary Hubbard, USW (202) 778-4384; (202) 256-8125
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