USITC Announces Remedy Proposals in its China Safeguard Investigation

June 29, 2009 - The U.S. International Trade Commission (USITC) today announced the remedy proposals it will forward to the President and the U.S. Trade Representative (USTR) in its China safeguard investigation concerning certain passenger and light truck tires from China.

Today's action follows the Commission's June 18, 2009, determination on market disruption in the investigation. Chairman Shara L. Aranoff and Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert voted in the affirmative, finding that certain passenger vehicle and light truck tires from China are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products. Vice Chairman Deanna Tanner Okun and Commissioner Daniel R. Pearson voted in the negative.

Chairman Shara L. Aranoff and Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert announced that they will propose that the President, for a three-year period, impose a duty, in addition to the current rate of duty, on imports of certain passenger vehicle and light truck tires from China. This duty would be 55 percent ad valorem in the first year, 45 percent ad valorem in the second year, and 35 percent ad valorem in the third year. They further announced that they will recommend that, if applications are filed, the President direct the U.S. Department of Labor and the U.S. Department of Commerce to provide expedited consideration of Trade Adjustment Assistance for firms and/or workers that are affected by subject imports.

Vice Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun announced that while they did not find market disruption to exist, they intend to submit views on this matter to the President, as has been done previously under Section 421 investigations. They will urge that no trade restricting action be taken. Rather, they will urge that the U.S. government be prepared to provide economic adjustment assistance to displaced tire workers. They noted that Trade Adjustment Assistance already has been provided to some tire industry workers and will recommend that the President utilize similar measures to help workers who find that their employment alternatives are changing.

The Commission will submit its report to the President and the USTR by July 9, 2009. The report will include the Commissioners' determination, views, and remedy proposals. The President, not the Commission, will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

The Commission's public report to the President, Certain Passenger Vehicle and Light Truck Tires from China (Inv. No. TA-421-007, USITC Publication 4085, July 2009), will contain the views of the Commissioners and information developed during the investigation. A copy may be requested after July 30, 2009, by emailing pubrequest@usitc.gov, calling 202-205-2000, or writing to the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205- 2104.