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Surge in Chinese tire imports threatening crucial domestic industry and manufacturing jobs in Fort Wayne area
For Immediate Release June 2, 2009
Washington – Senator Evan Bayh testified in a major international trade case today, urging the U.S. International Trade Commission (ITC) to help protect Fort Wayne-area workers whose jobs are threatened by a surge in Chinese tire imports.
At issue is whether the rise in Chinese tire imports constitutes unfair trade prohibited under Section 421 of U.S. international trade law and threatens to cause a market disruption for domestic tire producers. The ITC is considering a petition initiated by the United Steel Workers alleging that an increase in imported Chinese tires has caused a steep decline in U.S. production, sales, profitability and employment.
The dispute directly impacts approximately 1,300 workers currently employed at the Michelin North America Inc./BF Goodrich Tire Manufacturing plant in Woodburn, Indiana.
In urging the commission to consider the impact Chinese tire imports are having on domestic tire workers and manufacturers, Bayh said, “The facts are on their side. The law is on their side. Equity is on their side.”
Imports of passenger tires from China increased 215 percent in volume and 295 percent in dollar value from 2004 through 2008. While foreign producers experience rising sales in the United States, domestic manufacturers are suffering sharp declines. Specifically, from 2004 to 2008:
- Domestic tire production has plummeted 25 percent;
- Four U.S. tire manufacturing plants have closed because of unfair competition;
- Plant capacity utilization has declined 13 percent; and,
- Approximately 4,400 jobs have been lost.
In his testimony before the ITC, Bayh said, “These are troubling trends. If we fail to respond, I fear we will see more tire plants closed, more jobs lost, and more erosion of American manufacturing. This is of great concern to me as it is to the 1,300 workers at the Michelin/Goodrich tire plant near Fort Wayne. These workers have watched the adverse import trend from China and begun to wonder if their jobs are secure. In the midst of this serious recession, they are anxious about their employment prospects should these Chinese imports lead to the shuttering of their workplace.”
Bayh said Hoosier workers are not seeking special treatment by their government, just fair treatment and a firm application of trade laws.
“I believe in trade and the law of comparative advantage, but trade must be conducted in a fair manner based on U.S. and global rules,” he said. “When products are illegally traded, it is against the rules. When this happens, we should use remedies we and our trading partners have agreed upon and restore equity and balance in our commercial relationships.”
According to the Commerce Department, nearly 20 percent of all manufacturing workers in Indiana depend on exports for their jobs. In 2006, more than 5,000 companies exported goods from Indiana locations. The vast majority of those companies were small and medium-sized enterprises with fewer than 500 employees.
Bayh added, “Indiana’s workers, entrepreneurs, farmers, and creative geniuses can compete in growing markets around the world. To open more of these markets, in the past, I have supported a significant number of trade agreements.”
The commission expects to vote on the market disruption caused by Chinese tire imports on June 18. If the vote is affirmative, a remedy will be voted on June 29. The ITC will send a report to President Obama by July 9, and the president’s decision on a remedy is due in mid-September.
Contact: Brian Weiss - (202) 224-6807
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DISTRICT 7
