Importers challenge Titan/USW on OTR tire duties petition
Washington – Importers of OTR tires from China, India and Sri Lanka claim the Titan International Inc./United Steelworkers (USW) petition for import duties is a gross misinterpretation of the facts, saying a cyclical downturn in the original equipment OTR market, not increased imports from Asia, is responsible for Titan’s reduced OTR tire sales.
Additionally, they contend that lower raw materials costs – not increased imports – caused the decline in OTR tire prices in the US, according to testimony presented at a preliminary hearing at the International Trade Commission (ITC) in Washington 29 Jan.
Titan and the USW petitioned the ITC 8 Jan for antidumping and countervailing duties against mounted OTR tire imports from China, and both mounted and unmounted tires from India and Sri Lanka.
The situation is exactly the same now as then, according to Titan and the USW. Rising imports of the tires named in the new petition have seized market share and are driving down prices, production and employment in a declining market, they claim.
“The OTR tire industry provides high-paying, high-skilled jobs with family-supporting benefits,” said USW International Secretary-Treasurer Stan Johnson at the hearing. “All of that is now at risk because of these dumped and subsidized imports from China, India and Sri Lanka.”
Countering Titan’s position, Domenic Mazzola, vice president of engineering and OE sales at Alliance Tire Americas, said: “Titan’s dependence on the OE segment of this market has meant that they have suffered most from the downturn in demand at the OE level.”
Titan also made some errors in business strategy, according to Mazzola, such as its emphasis on low sidewall (LSW) tires.
“LSW technology is fairly old, but Titan has decided to push this technology as a distinguishing feature for its agricultural tire line, where the purported benefits of LSW technology are still questionable,” he said.
The Commerce Department is scheduled to vote on whether to institute its own investigation of the Chinese, Indian and Sri Lankan OTR tires on Wednesday, 3 Feb. The confidential reply briefs in the ITC case are due the same day, with public versions due 4 Feb. The ITC will vote 19 Feb on whether to pursue the investigation, and send its report on the vote to Commerce 22 Feb.
On the same day as the ITC hearing on OTR tires, the USW petitioned the agency for antidumping and countervailing duties against truck and bus tires imported from China.
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