US International Trade Commission blames China for tyre dumping

THE US International Trade Commission voted four-to two that China has been flooding the US market with inexpensive tyres, resulting in a "disrupted" American tyre market.

The ITC is now expected to devise a countervailing measure against China to the Obama administration, but the president is under no obligation to impose it.

The ITC is a quasi-judicial federal agency providing trade expertise to both the legislative and executive branches of government as well as determining the impact of imports on US industries.

The plaintiff, the United Steelworkers, argued that more than 5,100 American workers have lost jobs because of low-price Chinese tyres, which grew by 215 percent in volume from 2004 to 2008. The union said that the surge of 46 million tyres cost the US$1.7 billion in 2008 alone. It cited tyre plant closings in the US by Goodyear, Continental Tire, and Bridgestone/Firestone.

But the Chinese argued that no tyre maker had joined the union complaint and that US producers long stopped making cheaper "tier three" tyres before Chinese manufacturers moved into the field, reported Newark's Journal of Commerce.

In another development, China rejected accusations of protectionism in its $585 billion stimulus package. While Foreign Ministry spokesman Qin Gang conceded that official documents ordered Chinese government offices to "buy China", he also said:

"The purpose of issuing the notice is to ensure a fair and competitive market," Mr Qin said, adding that the notice complied with China's government procurement law of 2002 and with common international procurement practices, and that foreign enterprises and products would face no discrimination.

On June 1, the National Development and Reform Commission (NDRC) issued a notice that said that government investment projects should purchase domestically made products unless those products cannot be obtained in China. The notice also said that purchases of imports must be approved by relevant government agencies.

 

(Source: News and Data Online)