WASHINGTON, D.C. - Ways and Means Committee Chairman Charles B. Rangel (D-NY) and Ways and Means Trade Subcommittee Chairman Sander Levin (D-MI), issued the following statement after the United States International Trade Commission (ITC) affirmatively determined that a surge of Chinese tire imports is disrupting the U.S. market, harming U.S. manufacturers and workers.
“While I am not pleased to see the U.S. tire industry struggling to compete against surging Chinese tire imports, I am glad that Congress had the foresight to enact a safeguard measure designed to address such situations," said Chairman Rangel. “Democrats support shaping trade and the safeguard mechanism is an important element of our trade policy."
“The Section 421 safeguard mechanism was an important provision governing China’s accession to the WTO. It was designed to address a key concern - that surges of Chinese imports would push U.S. companies out of the market," said Subcommittee Chairman Levin. “The ITC has made its finding in the tires case. I believe that, unlike the Bush Administration, President Obama will decide the safeguard case on the merits, not on an ideological rejection of import relief."
The Section 421 safeguard mechanism authorizes the independent ITC to determine if imports from China are causing material injury to U.S. industry and, if so, to allow the President to provide temporary relief from imports. While President Bush was in office, the ITC determined that the requirements for relief had been satisfied on four different occasions. Nevertheless, in all four cases, the President exercised discretion, and refused to provide relief to the petitioners.
After today’s affirmative decision, the ITC will recommend a remedy and transmit its report to the President and the U.S. Trade Representative by July 9, 2009. The President will then be required to request consultations with the Chinese to remedy the market disruption. If no agreement is reached, then the President must determine what action to take by September.
U.S. imports of Chinese tires have been increasing since 2004, even as domestic tire production and employment have fallen. U.S. tire plants have closed, and U.S. tire producers have announced more coming closures. The workers producing these tires have filed for relief from market disruption due to the surge in Chinese tire imports.
