USTR to hold hearing on Chinese tyre duties Aug. 7

ERJ staff report (TB)

Washington DC- The Office of the US Trade Representative will hold a public hearing Aug. 7 at its headquarters on the International Trade Commission's recommendation for stiff duties on Chinese passenger and light truck tyres.

On June 18, the ITC voted 4-2 that an upsurge in Chinese tyre imports is causing market disruption in the US tyre industry. On June 29, the majority voted to recommend three years of duties on Chinese tyres under Section 421 of the Trade Act. The duties, if President Obama chooses to approve them, would be 55 percent the first year, 45 percent the second and 35 percent the third.

The USTR hearing would be the final event in the investigation before President Obama's Sept. 17 deadline to rule on the ITC recommendation. If approved, the duties would go into effect Oct. 2.

The United Steelworkers union, which petitioned the ITC for relief under Section 421, is a staunch supporter of the proposed tariffs. “Our nation's job loss numbers at tyre factories dramatically understate the impact China's flooding imports have caused in the communities where our represented workers live,” wrote Leo W. Gerard, USW International president, in a letter to the USTR requesting to testify at the hearing.

Tyre dealers and distributors also are likely to appear at the hearing. At a June 2 hearing before the ITC, several dealers and distributors testified that Chinese tyre imports don't compete directly with the tyres currently manufactured in the US, and that punitive action against the Chinese would result only in shortages of low-cost tyres in the US.

From Tire Business (A Crain publication)