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September 17, 2014 02:00 AM

USW seeks expedited decision on China duties

Tire Business staff
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    WASHINGTON (Sept. 17, 2014) — Citing “critical circumstances,” the United Steelworkers union (USW) and its attorneys have petitioned Commerce Secretary Penny Pritzker for expedited action on the USW's countervailing duties case against imports of passenger and light truck tires from China.

    In its Sept. 12 filing, the USW cited Commerce Department regulations stating that, when critical circumstances exist, the agency need not wait for a preliminary determination of subsidies to issue a preliminary critical circumstances determination.

    The facts of the case, the USW said, show “there is a reasonable basis to believe or suspect ‘critical circumstances' exist” demonstrating severe material injury to the domestic tire industry. It urged Commerce to make a preliminary critical circumstances determination as soon as possible, but no later than the Nov. 21 deadline for the preliminary determination of subsidies.

    The “massive increase” in Chinese tire imports in the past three years — 15 percent or more over a “relatively short period,” by Commerce Department convention — are more than enough to prove critical circumstances, the USW said.

    In June and July 2014 alone, it said, imports of passenger and light truck from China into the U.S. averaged 6.1 million units per month, a 26.5-percent increase over the 4.82 million average in the March-May 2014 period.

    Commerce Department photo

    Commerce Department Secretary Penny Pritzker

    At the same time, imports from all other countries fell, the USW's petition shows.

    There was no word from the USW on when it expected a reply from Commerce, and attorneys for various Chinese tire makers and importers could not be reached immediately for comment.

    The USW petitioned the ITC and Commerce June 3 for antidumping and countervailing duties against Chinese tires, under Sections 701 and 731 of the Trade Act.

    Between September 2009 and September 2012, the Obama administration levied elevated tariffs against Chinese tires under Section 421 of the Trade Act. Since the end of those tariffs, the USW alleged, imports of tires from China to the U.S. have skyrocketed.

    The ITC voted 6-0 on Aug. 15 that there is “a reasonable indication” that Chinese tire imports are causing material injury to the U.S. tire industry.

    On Sept. 15, 31 U.S. senators sent a joint letter to Secretary Pritzker, supporting the USW's petitions for duties.

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