Senator Specter on Import Relief for Tire Workers

Washington, D.C. -- June 18, 2009 -- U.S. Senator Arlen Specter (D-Pa.) said today that the International Trade Commission should recommend robust import relief following its conclusion announced this morning that a surge of imports of tires from China has injured domestic tire industry workers.

“I am pleased that the ITC, after examining the data and facts in the United Steelworkers’ petition, arrived at the conclusion that imports of Chinese-made tires have hammered this sector of the American economy. The next logical step is that import relief is warranted and needed,” Specter said. “I urge the ITC and President Obama to move decisively to assist workers in Pennsylvania and other states who have been buffeted by a major increase in tire imports from China over the last five years.”

The petition was the subject of a public hearing at the ITC on June 2, at which Sen. Specter testified on behalf of workers at the Specialty Tires of America facility in Indiana, Pennsylvania. The ITC determined in a 4-2 ruling that a surge of imports of passenger vehicle and light truck tires imported from China between 2004 and 2008 led to sharp declines in domestic production and job losses that exceed 5,000 and are expected to grow without relief.

The investigation is being conducted under Section 421 of the Trade Act of 1974. The 421 safeguard, as it is sometimes called, was created in 2000 as part of the process of bringing China into the World Trade Organization. Under Section 421, companies or groups of workers can petition the government with evidence that import surges are having an adverse effect on them and seek import relief. In this case, the USW is requesting an import quota that would begin at 21 million consumer passenger tires – the 2005 import level. The quota would then increase by five percent per year over three years. This would give U.S. producers a chance to adjust and compete in the years to come.

Since the ITC determined that injury has occurred, it will vote on a remedy on June 29. Following that step, the ITC will present its report and recommendation to President Obama on July 9. The President’s decision for a remedy is due in mid-September.

Source: Senator Arlen Specter