The World Trade Organization (WTO) has upheld President Obama’s decision to
provide relief for American tire industry workers under Section 421 of U.S.
trade law against “surging imports from China” of passenger and light truck
tires following a petition filed by the United Steelworkers (USW) in 2009.
Today’s ruling by the WTO Appellate Body comes as good news for America’s
workers on Labor Day,” USW International President Leo Gerard said. “The WTO
reaffirmed that President Obama’s decision to stand up for America’s workers
against the flood of passenger and light truck tire imports from China were
legal and justified.”
“Since relief was granted by the President, the law has had its intended
effect,” Gerard added. “Investments in U.S. tire manufacturing are up, jobs
have been created and our companies are shipping more tires to consumers.
While we still need to accelerate our nation’s economic recovery, the
economic benefits of the trade relief are clear and indisputable.”
“President Obama and the (U.S. Trade Representative) need to be commended
for using America’s trade laws as they were intended, and fighting China’s
claims before the WTO,” Gerard said. “This represents an important victory
for America’s workers and the resulting benefits for passenger and light
truck tire producers operating here. It should signal that enforcing our
trade laws is a vital part of an economic program to revitalize the economy
and strengthen manufacturing.”
The tariffs were placed in each of three years by the President after public
hearings before the U.S. International Trade Commission (ITC) in response to
a petition filed in April 2009 by the USW on behalf of its members employed
in tire plants throughout the country, the USW said. “Chinese tire imports
were shown to have surged to record levels in the five years prior to the
filing of the petition, causing significant market disruption.”
The tariffs continue to have restraining effects on Chinese tire imports. In
2010, Chinese tire imports were 34 percent lower compared to 2008, the year
before the USW filed its petition. And imports were down another 12 percent
in the first six months of 2011, compared to the same period in 2010.
Currently, the industry and its workers have experienced significant
improvement in terms of production and sales of tires in the U.S. market.
Companies such as Goodyear Tire and Rubber and Cooper Tire have reported
significantly higher sales revenues for the second quarter of 2011, compared
to the second quarter of 2010, the USW said.
In response to these improved market conditions, the industry has invested
significantly in new capacity. Bridgestone-Firestone announced last month
that it was investing $135 million to create 120 jobs in a plant in Aiken
County, S.C. Cooper Tire invested some $30 million in its Findlay, Ohio,
plant in 2010, and Continental Tire completed a $224 million expansion of
its plant in Mt. Vernon, Ill. Continental Tire has just started work on a
new green field tire plant, the USW said.
“The USW acknowledged that some manufacturers have failed to take full
advantage of the improved environment for domestic tire manufacturing
following import relief, citing at least one company that decided to close a
productive facility, but overall the re-investments and expansions have
demonstrated import relief is working,” the USW noted.
According to the USW and tire industry reports, U.S. companies are hiring.
In a public fact sheet, Michelin employs nearly 300 more workers in their
U.S. plants producing passenger car and light truck tires in 2010, compared
U.S. government statistics also show that employment in the overall tire
industry, which had declined by more than 25 percent between January 2005
and September 2009, has stabilized significantly since President Obama
imposed the Section 421 tariffs nearly two years ago.
The USW said Section 421 relief continues to provide important benefits to
workers employed in the U.S. passenger car and light truck tire industry.
The union strongly believes improvements will continue as the market enters
the third year of the special tariffs.
More about the USW Section 421 trade case filing is available at