Chinese Tyres Makers “Disappointed” By US Trade Ruling

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By Denna Bowman

China’s largest tyres manufacturer has expressed “disappointment” at a “protectionist” decision to recommend imposing extra duties on Chinese-made vehicle tyres.

Vic Delorio, executive vice president of GITI Tyre, spoke out yesterday after the US International Trade Commission (ITC) announced its recommendations.

He said: “We are disappointed that four of the six ITC Commissioners today felt compelled to take a decidedly protectionist path and recommended that the US government impose an additional duty against economy tyres made in China.

“The proposed remedy if enacted will not help US workers. Chinese-made tyres have filled a market void created when US manufacturers abandoned the economy segment of the mass market.”

The ruling came as a result of the petition filed by the United Steelworkers union which claimed the surge of cheap Chinese tyres flooding into the US was harming the domestic industry.

They had called on the ITC to impose a quota on the number of tyres imported.

However, four of the six Commissioners appeared to support their case, but proposed duties instead of quotas on the Chinese tyres of up to 55% in the first year; of 45% in the second year; and of 35% in the third.

The ITC decision is not binding and President Barack Obama has until September 2009 to decide whether or not to act on its advice.  

Mr Delorio also said the ITC remedy “will not help US workers. We look forward to working with the Obama administration on this issue as it reviews the commission’s work. The administration has a broader set of responsibilities and a wider vantage point.”

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