Senator Bayh on ITC Ruling Against Chinese Tire Dumping

Beijing’s actions pose unfair threat to workers in Fort Wayne area

June 18, 2009 -- Washington -- Senator Evan Bayh praised the U.S. International Trade Commission (ITC) today for determining that China is illegally dumping imported tires into the American market, causing a market disruption that should be remedied by U.S. government action.

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The ruling will help workers at domestic tire manufacturers like the BF Goodrich Tire Manufacturing/Michelin North America Inc. plant in Woodburn, Indiana. The ITC was considering a petition initiated by the United Steel Workers alleging that an increase in imported Chinese tires has caused a steep decline in U.S. production, sales, profitability and employment.

“Indiana can compete with any country in the world when there’s a level playing field,” Bayh said. “Allowing the Chinese to flood our markets with products in violation of our trade laws is bad policy and needlessly puts American workers at a competitive disadvantage.

“I applaud the International Trade Commission for recognizing that the troubling employment and production declines in our domestic tire manufacturing industry are directly related to the surge in imported passenger tires from China. I urge President Obama to act immediately to implement a strong remedy that protects the hard-working Hoosiers at the BF Goodrich/Michelin plant.”

Earlier this month, Bayh testified before the ITC and urged commissioners to consider the impact Chinese tire imports are having on domestic tire workers and manufacturers in Indiana and across the country.

Imports of passenger tires from China increased 215 percent in volume and 295 percent in dollar value from 2004 through 2008. While foreign producers experience rising sales in the United States, domestic manufacturers are suffering sharp declines. Specifically, from 2004 to 2008:

* Domestic tire production has plummeted 25 percent;
* Four U.S. tire manufacturing plants have closed because of unfair competition;
* Plant capacity utilization has declined 13 percent; and,
* Approximately 4,400 jobs have been lost.

As a result of today’s 4-2 ruling, the ITC will announce a remedy on June 29, 2009. The commission will send its report, including its remedy proposal, to the president and the U.S. trade representative by July 9, 2009. The president will make the final decision concerning whether to provide import relief to the industry and the type and duration of any such relief.

Source: Senator Evan Bayh