National College Players Association - United Steelworkers

China has lost its appeal to the WorldTrade Organization (WTO) overimport relief granted to Americantire industry workers by PresidentObama, who acted on a petition filed by theUSW in 2009.In a clear victory for the USW, a WTOappeals panel on Labor Day affirmed tariffsimposed by President Obama, saying theUnited States “acted consistently” with internationallaw in imposing them on Chinesepassenger and light truck tires.International President Leo W. Gerardcalled the ruling “good news” for workersand said the tariffs have had the intendedpositive effect on U.S. industry and jobs.The tariffs have stemmed the hemorrhagingof jobs and investment that the flood ofChinese imports caused. They have helpedthe industry regain its footing, retool andexpand, providing a rare bright spot in thestruggling economy.“Investments in U.S. tire manufacturingare up, jobs have been created and ourcompanies are shipping more tires to consumers,”Gerard said. “While we still need toaccelerate the nation’s economic recovery, theeconomic benefits of the trade relief are clearand indisputable.”China argued that the three-year tariff approvedby the president in 2009 under Section421 of U.S. Trade Act of 1974 was protectionistand would hurt the Chinese industry.Section 421 was added by Congress asan amendment to the Trade Act as part of thedeal granting China WTO membership. Itacts as a temporary safeguard for workers andindustry against import surges.The tariffs were placed in each of threeyears after public hearings were held beforethe U.S. International Trade Commission(ITC) in response to the USW petition, filedon behalf of members employed in tire plants.Gerard commended President Obama andU.S. Trade Representative Ron Kirk for usingAmerica’s trade laws to fight China’s claimsbefore the WTO.“This represents an important victory forAmerica’s workers and benefits passengerand light truck tire producers operating here,”Gerard said. “It should signal that enforcingour trade laws is a vital part of an economicprogram to revitalize the economy andstrengthen manufacturing.”Kirk called the WTO panel ruling a “majorvictory” for the United States.“We have said all along that our impositionof duties on Chinese tires was fullyconsistent with our WTO obligations. It issignificant that the WTO panel has agreedwith us, on all grounds,” Kirk said.This win and another earlier ruling involvingthe use of antidumping and countervailingduties demonstrates, Kirk said, that theObama administration is strongly committedto using and defending trade remedy laws toaddress harm to workers and industries.The tire tariffs continue to restrainChinese tire imports. In 2010, Chinese tireimports were 34 percent lower than in 2008,the year before the USW filed its petition.And imports were down another 12 percent inthe first six months of 2011.The industry and its workers have experiencedsignificant improvement in terms ofproduction and sales of tires.Some manufacturers have failed to takefull advantage of the improved environmentfor domestic tire manufacturing followingimport relief. One company, Goodyear Tireand Rubber, decided to close a productivefacility in Union City, Tenn., but overall reinvestmentsand expansions have demonstratedimport relief is working.Companies including Goodyear and CooperTire have reported significantly highersales revenues for the second quarter of 2011,compared to the second quarter of 2010.In response to improved conditions, theindustry has invested in new capacity.Bridgestone-Firestone announced in Augustthat it was investing $135 million to create120 jobs in a plant in Aiken County, S.C.Cooper invested some $30 million in itsFindlay, Ohio, plant in 2010, and ContinentalTire completed a $224 million expansion of aplant in Mt. Vernon, Ill. Continental has alsostarted work on a new tire plant.According to the USW and tire industryreports, U.S. companies are hiring. Michelin,according to a public fact sheet, employsnearly 300 more workers in their U.S. plantsproducing passenger car and light truck tiresin 2010 than in 2008.U.S. government statistics also showthat employment in the overall tire industry,which had declined by more than 25 percentbetween January 2005 and September 2009,has stabilized significantly since PresidentObama imposed the Section 421 tariffs.The Section 421 relief continues to provideimportant benefits to workers employedin the U.S. passenger car and light truck tireindustry, and the union believes improvementswill continue as the market enters thethird year of the special tariffs.28 USW@Work • Fall 2011