Bob Ulrich

Editor

Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993. He has won numerous awards for editorial and feature writing, including five gold medals from the International Automotive Media Association. Bob earned a B.A. in English literature from Ohio Northern University and has a law degree from the University of Akron.

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Chinese tire tariff opponent has advice for President Obama

By: Bob Ulrich

Now we wait. United States Trade Representative Ron Kirk has given President Barack Obama his office’s recommendations on the Chinese tire import case. The president has until Sept. 17 to make a final ruling.

For more information on this issue, read Managing Editor Lori Mavrigian’s latest blog entry, “Decision on Chinese tire imports will have far-reaching impact.”

The U.S. International Trade Commission (ITC) had recommended extremely high additional tariffs on Chinese passenger and light truck tire imports following a Section 421 petition by the United Steelworkers (USW). To date, here are some of the reported on-the-record supporters and opponents of the 1) tariffs specifically or 2) the restriction of Chinese consumer tire imports in general.

Supporters: USW; National Cotton Council and National Farmers Union; Senators Arlen Specter, Sherrod Brown, Evan Bayh and Robert Casey.

Opponents: American Coalition for Free Trade (Dunlap & Kyle Co., Del-Nat Tire Corp, American Omni Trading Co., Hercules Tire & Rubber Co., Orteck Global Supply & Distribution Co., GITI Tire (USA) Ltd. and Foreign Tire Sales Inc.); Toyo Tire Holdings of Americas Inc.; Tire Group International Inc.; Tire Wholesalers Co. Inc.; Cooper Tire & Rubber Co.; China Rubber Industry Association; Tyson Foods Inc. and Hormel Foods Corp.

One of the opponents of the tariffs, the China Rubber Industry Association (CRIA), recently sent me its opinion on the issue. The association is made up of more than 200 organizations “spanning all aspects of rubber production, including tires, hoses, belts, etc.,” says Marina Maric, a spokesperson for the CRIA.

Hangzhou Zhongce Rubber Co. Ltd., Shangdong Linglong Rubber Group Co. Ltd. and Shandong Triangle Tire Co. Ltd. are among the CRIA’s members.

According to Maric, the CRIA is a “social organization” founded by national rubber enterprises and institutes “based on the principle of free will and equality.” It is approved and registered by the Ministry of Civil Affairs of the People’s Republic of China.

Its business role is to help its members “convey their desires and requirements” when needed; protect their legal rights and interests; and promote the constitution of the People’s Republic of China. “It's also a bridge between central government and (business) enterprises.” (See http://www.cria.org.cn/criawebsite/english/aboutus.htm.)

Here are excerpts from the CRIA’s official position on the situation.

“Will President Obama maintain his liberal posture on relations with China, fostering increasing cooperation and guaranteeing American-made products and services further access to China’s soon-to-be largest consumer market in the world, or will narrow, shortsighted and protectionist special interests redefine the Administration’s ‘China policy’ moving forward? Soon, we’ll know….

”We urge President Obama to make a principled choice to reject this restrictive effort to subvert trade law and make China a scapegoat. China had no part in the process that led U.S. tire manufacturers to decide over a decade ago to stop manufacturing entry-level tires in the U.S. These same companies have made clear that they still have no plans to manufacture entry-level tires in the U.S. Their decision to abandon entry-level manufacturing allowed others from around the world to fill this void….

“President Obama affirmed at the G-20 summit that the last thing the world needs is a rise in protectionism. Now is the time for the President to make a clear statement that the world can depend on strong bilateral trading relations between the world’s two most important economies and on deepening cooperation between the two countries on a wide range of global issues.”

Let me know what you think.

Related Topics: Chinese imports, International Trade Commission, President Obama, USW

comments

1. Tobey | September 08, 2009 at 03:49PM
   i think that the union needs to get on the same pay as the rest of us in the USA and maybe some factories in the USA can be profitable and we don`t lose jobs to other countries. Quit blaming every one else and start looking at themselves.

2. rnk krishnan | September 08, 2009 at 04:02PM
   given that all imported tyres have to comply to FMVSS standards and there is a level playing field , it is better to leave it to the consumer to choose the tyre he wants and not go for protectionism from a great country like USA which stands for open competition in all fields and that is why it is still respected despite economic slow down . it should continue to guide other nations and offer all cooperation as it used to do and not look for short time gains -

3. Tim | September 10, 2009 at 11:28AM
   It is not free trade when the labor costs are not the same. Would you work for $100 a month? Yes the unions have priced themselves out of the labor market but lets be honest our goverment is no help to the people who really pay them. Through free trade acts and the lowering of duties for goods that were once made in the USA, they have given into Corp. America and China.