TIA Opposes Petition to limit imports of Chinese-made tires.
Press Release Summary:
Regarding the proposal before the US International Trade Commission that would limit the import of Chinese-made passenger and light truck tires, the Tire Industry Association (TIA) issued a statement calling it well-intentioned but ineffective in preserving manufacturing jobs and potentially harmful to consumers. However, it was also reiterated that all tires, regardless of their country of origin, must be held to all applicable Federal Motor Vehicle Safety Standards.
Original Press Release:
Tire Industry Association Opposes Petition to Limit Imports of Chinese-Made Tires
Association releases statement; petition before U.S. International Trade Commission would harm consumers; association reiterates belief that all tires - regardless of origin- should be held to appropriate safety standards.
Bowie, MD - The Tire Industry Association (TIA), one of the leading global authorities on tires, today released a statement announcing their opposition to the proposal before the U.S. International Trade Commission (ITC) that would limit the import of Chinese-made passenger and light truck tires. The association feels strongly that this measure, despite being well-intentioned, would not help in the preservation of manufacturing jobs, and would be harmful to consumers, as these tires are often an affordable solution to those drivers with limited budgets. However, the association also reiterates its long-standing position that all tires - regardless of country of origin - must be held to all applicable Federal Motor Vehicle Safety Standards.
The United Steel Workers (USW), on April 20th, 2009, petitioned the United States International Trade Commission (USITC) to determine whether passenger and light truck tires manufactured in China are being imported in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the producers of like or directly competitive products. They are requesting the imposition of an import quota of 21 million tires (2005 levels) with an increase of five percent each year over a three-year period. This would reduce current imports by almost half. TIA is sympathetic to the loss of U.S. manufacturing jobs, but understands that this has occurred over the course of many years and under a multitude of trade policy initiatives, and this attempt - no matter how well-meaning - will not result in either an increase or a preservation of U.S. tire manufacturing jobs.
"TIA believes that the proposal before the ITC would be the worst of both worlds - no U.S. manufacturing jobs would be either saved or created, and consumers would be denied a source of affordable tires at a time in our economy when every penny counts," said TIA Executive Vice President Roy Littlefield. He went on to say, "Any reduction in the quantity of tires imported from China would be in and of itself disruptive, as no manufacturing uptick here in the U.S. would satisfy the shortage this measure would create. Instead, manufacturers would have to essentially ration their products, thus resulting in shortages, outages, and most likely, much higher tire prices."
The following is the complete statement:
Tire Industry Association Position on the United Steel Workers Petition Before the United States International Trade Commission Seeking an Import Quota on Chinese-made Tires
The United Steel Workers (USW), on April 20th, 2009, petitioned the United States International Trade Commission (USITC) to determine whether passenger and LT tires from China are being imported in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the producers of like or directly competitive products. They are requesting the imposition of an import quota of 21 million tires (2005 levels) with an increase of five percent each year over a three year period. This would reduce current imports by almost half. The Tire Industry Association (TIA) is sympathetic to the loss of U.S. manufacturing jobs, but understands that this has occurred over the course of many years and under a multitude of trade policy initiatives.
TIA believes that a reduction of this magnitude in the quantity of Chinese tires imported would itself create a market disruption, and cause very real harm to our member companies and the U.S. consumer. Our members, by directly importing or contracting with suppliers, are meeting the demands of a segment of the tire consumer market for lower-cost tires. No manufacturing uptick would satisfy this product segment, but instead could create a need for product allocation, resulting in shortages and outages. In the best of times such occurrences are troubling, but in today's climate could inflict severe financial harm on many retailers and on the motoring public.
TIA believes that the USITC has the ability to guard against foreign governments supporting the sales of below-cost products, and favors anti-dumping remedies when appropriate. In addition, TIA has long supported requiring that all Chinese tires adhere to applicable Federal Motor Vehicle Safety Standards.
TIA would ask the USITC to continue to support a free-trade policy, and reject the USW's effort to impose a protectionist policy.
Note: This position statement is available for download in the "News" section of www.tireindustry.org.
About TIA:
TIA is an international association representing all segments of the tire industry, including those that manufacture, repair, recycle, sell, service or use new or retreaded tires, and also those suppliers or individuals who furnish equipment, material or services to the industry. The Tire Industry Association (TIA) has a history that spans more than 80 years and includes several name changes. Originally known as the National Tire Dealers & Retreaders Association (NTDRA), the organization gave birth over the years to the American Retreaders Association (ARA) and the Tire Association of North America (TANA). ARA changed its name to the International Tire & Rubber Association (ITRA) and merged with TANA in 2002 to form the current Tire Industry Association (TIA), which now represents every interest in the tire industry.
