US-based TIA opposes Chinese tyre quota

ERJ staff report (R&PN)

Bowie, Maryland -- The Tire Industry Association is joining some of its most prominent members in opposing the United Steelworkers' petition to the International Trade Commission to place a three-year quota on the import of Chinese passenger and light truck tyres.

“TIA would ask the ITC to continue to support a free-trade policy, and reject the USW's effort to impose a protectionist policy,” TIA said in a press release issued the day before the commission is set to vote on the USW petition.

While TIA is sympathetic to tyre workers, their job losses occurred over the course of many years and a multitude of trade policy initiatives, the association said, setting a quota of 21 million on Chinese tyre imports would cause great harm to both TIA member companies and their customers.

“Our members, by directly importing or contracting with suppliers, are meeting the demands of a segment of the tyre consumer market for lower-cost tyres,” TIA said. “No manufacturing uptick would satisfy this product segment, but instead could create a need for product allocation, resulting in shortages and outages.”

The USW, supported by members of Congress, sent its petition to the ITC April 20 and presented its case in a commission meeting June 2. Tyre dealers and distributors including Del-Nat Corp., Les Schwab Tire Centers Inc. and Tire Wholesalers Co. Ltd. presented testimony in opposition.

To date no US tyre makers have expressed an opinion on the petition. The USW claims the Chinese intimidated them into silence; the tyre dealers insist domestic tyre makers have no interest in the question because they don't compete in the lower-range tyre markets the Chinese manufacturers serve.

From Rubber & Plastics News (A Crain publication)

Press release from TIA