July 7, 2016
By Stephanie West
Pittsburg, Penn – Leo W. Gerard, USW International President, said: “The federal determination confirms what our petitions alleged – that Chinese tire producers are receiving a wide array of government subsidies and exporting those subsidized tires to the United States.
Our members can compete against any producer in the world, but it is simply unacceptable to ask us to compete against the deep pockets of the Chinese government’s state-owned enterprises.”
He added, “Unfair truck tire imports from China have denied our domestic industry the opportunity to share in production and job increases in a period of robust demand growth. The United States imported over one billion dollars of truck tires from China last year, and each of those Chinese tires means one tire less made here in the U.S. by USW members.”
The chair of the union’s national rubber tire bargaining conference, USW International Secretary-Treasurer Stan Johnson, emphasized: “We have fought back against China’s predatory trade practices in nearly every part of the tire industry, including tires for passenger cars, light trucks, off-road vehicles, and now truck and bus tires.
“Again and again they have been shown to benefit from massive subsidies and to engage in widespread dumping in order to gain market share at the expense of American jobs. We will not rest until these unfair trade practices are remedied and our members have the chance to compete on a level playing field. Today’s decision is one more step in the right direction.”
The USW represents 6,000 workers at five facilities in the U.S. that account for more than two-thirds of domestic capacity to produce truck and bus tires. The tire production facilities are operated by Bridgestone-Firestone, Goodyear and Sumitomo, and they are located in LaVergne and Warren County, Tenn.; Buffalo, N.Y.; Danville, Va.; and Topeka, Kan.
Following today’s preliminary determination, importers will need to start posting cash deposits, or bonds to offset the subsidies that Chinese tire producers have received, at margins ranging from 17.06 to 23.38 percent. A preliminary antidumping determination in the case is due on August 26, and final determinations are expected in January of 2017.
*** The USW represents 850,000 workers in North America employed in many industries that include metals, rubber, chemicals, paper, oil refining and the service and public sectors.