US trade board rules against Chinese tire makers
June 22, 2009
The U.S. International Trade Commission issued a ruling against China''s tire manufacturers saying their increased exports are damaging U.S. tire makers, reported by the Associated Press. The 4-2 ruling against the Chinese tire makers marks a victory for the United Steelworkers union, which filed a complaint with the trade commission in April. The union argued that China has more than tripled its tire exports to the U.S. to 46 million tires between 2004 and 2008, putting more than 5,100 workers out of a job. The union said another 3,000 workers would lose their jobs by the end of the year and is urging President Barack Obama to cap Chinese tire imports at 21 million per year. Shanghai-based GITI Tire issued a statement saying it was "disappointed" with the decision. The company said U.S. tire makers have been scaling back their offerings in the low-cost tire segment; where Chinese tire makers now compete. "If there is a barrier placed on tires produced in China, we believe that U.S. manufacturers will simply increase importation of tires from other countries," the company said in a statement. The International Trade Commission ruling has no immediate repercussions, but the group is scheduled to meet again later this month to determine a recommendation to the White House on the issue.