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News Foreign Policy Jobs Trade Friday, Jul 15 2011

Romney Attacked Obama For Being Soft On Chinese Trade, Yet Opposes Steel And Tire Tariffs

Jul 15, 2011

Romney attacked Obama for being soft on Chinese trade

Romney Accused Obama Of Not Taking China “To The Mat” On Trade. According to the Eagle Tribune, “He also was critical of Obama over trade with China.’ The President said he would take China to the mat,’ Romney said. ‘He’s been taken to the door mat instead. I won’t let that happen.’” [Eagle Tribune, 7/15/11]

Romney opposed steel and tire tariffs on china

Romney Opposed Bush Chinese Steel Tariffs And Obama’s Chinese Tire Tariffs. According to the Club for Growth, “In his recent book, Romney also voiced his opposition to President Bush’s steel tariff decision and President Obama’s decision to impose tariffs on foreign tires.” [Club For Growth, 2012 Presidential White Paper #5, 6/7/11]

Romney: Obama’s Defense Of American Tire Companies Is “Decidedly Bad For The Nation.” In his book, Romney criticized Obama’s tariff on Chinese tires, saying “President Obama’s action to defend American tire companies from foreign competition may make good politics by repaying unions for their support of his campaign, but it is decidedly bad for the nation and our workers.” [No Apology, 2010]

Obama tire tariffs saved jobs

Obama Imposed Tariffs On Chinese Tires Because The Market Disruption Cost 5000 American Jobs. According to the Washington Post, “In one of his first major decisions on trade policy, President Obama opted Friday to impose a tariff on tires from China, a move that fulfills his campaign promise to “crack down” on imports that unfairly undermine American workers but risks angering the nation’s second-largest trading partner. The decision is intended to bolster the ailing U.S. tire industry, in which more than 5,000 jobs have been lost over the past five years as the volume of Chinese tires in the market has tripled.” [Washington Post, 9/12/09]

The U.S. International Trade Commission Found That China Was Disrupting U.S. Tire Production. According to the USITC, “The U.S. International Trade Commission (ITC) today announced its determination in its China safeguard investigation involving certain passenger vehicle and light truck tires. The Commission made an affirmative determination, 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. Chairman Shara L. Aranoff and Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert voted in the affirmative. Vice Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun voted in the negative.” [ITC, 6/18/09]

Denman Tire In Leavittsburg, Ohio Laid Off Employees As A Result Of Chinese Competition. According to the Buisness Journal Daily, “Denman Tire laid off 50 of its 300 employees in March. The company cited stiff competition from foreign competitors that have dumped tires, rubber and other products in the U.S. market, and Denman has found itself forced to purchase supplies form China.” [Business Journal Daily, 9/13/2006]

Denman Outsourced To China, Mexico and India. The Division of Trade Adjustment Assistance certified that workers at Denman Tire suffered job loss because of a shift in production to India and China in 2008. [TAA Decision 72818, 2/5/10]

The Federal Division Of Trade Adjustment Assistance Certified That Jobs At Cooper Tire In Findlay, Ohio Were Lost In 2008 As A Result Of Chinese Imports. According to the Division of Trade Adjustment Assistance, “The investigation revealed that the preponderance of declines in employment at the subject firm is related to a shift in production of light truck, SUV, and passenger tires to China.   Furthermore, it is likely that imports of like or directly competitive articles will increase.” [TAA Decision 65889, 5/28/09]

The Federal Division Of Trade Adjustment Assistance Also Found That Cooper Tire Jobs Were Lost In Camden, NJ, Moraine, OH And Cedar Rapids, IA. In separate determinations, the Division of Trade Adjustment Assistance found that workers in Camden, NJ, Moraine, OH and Cedar Rapids, IA lost their jobs as a result of Chinese tire imports. [TAA Decision 72948, 4/26/10TAA Decision 71658, 8/27/09]

United Steel Workers: Tire Tariffs Led To The Creation Of At Least 595 Jobs, Including 100 New Workers At Cooper Tire In Findlay, Ohio. According to a press release from the USW, “’There is no doubt that the relief authorized by the President has reversed the massive decline in domestic production,’ said USW International Vice President Tom Conway, who heads negotiations with Goodyear. ‘Goodyear plants producing 421 subject tires hired 130 new workers in 2010 and are working an average of 20 percent overtime. Cooper Tire in Texarkana, Ark., has 250 new hourly hires. The plant is running seven days a week and production is up around 20 percent,’ he said. The impact at Michelin plants manufacturing covered tires under BF Goodrich and Uniroyal brands is similar. Operations now run seven days a week; overtime is up to 15 percent, and 115 new production workers have been hired since the start of 2010. At Cooper Tire & Rubber in Findlay, Ohio, 100 new hourly employees have been hired since the relief went into effect; operations have returned to a seven-day work schedule; and production has increased 20 percent.” [PR Newswire, 9/1/10]

US Tariffs On Chinese Tires Were Upheld By The WTO After China Appealed. According to the Congressional Research Service, “In a report issued December 13, 2010, the WTO panel rejected all of China’s claims. Although  other WTO members also invoked the China-specific safeguard, China had not challenged action taken by a WTO member under this provision before initiating its dispute with the United States and thus this was the first panel to review such a special safeguard action against Chinese  goods.” [CRS, “Chinese Tire Imports: Section 421 Safeguards and the World Trade Organization (WTO)” 1/31/01]

Published: Jul 15, 2011

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