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Standing up for American manufacturers (Rep. Tim Ryan)

by Ohio Dem. Rep. Tim Ryan - 06/03/09 11:56 AM ET

Yesterday, I testified before the U.S. International Trade Commission in support of a Section 421 petition against the flood of Chinese tires into the domestic market. From 2004-2008, we have experienced a surge of Chinese tires that is equal to an increase of nearly 300 percent in dollar terms, and over 200 percent by volume over 2003 levels. Meanwhile, U.S. production of tires has declined by 25 percent and four plants around the country have closed. This is compelling evidence that China is dumping tires into the U.S. domestic market—a clear violation of its World Trade Organization accession agreement.

Section 421 of the Trade Act of 1974 was amended by the US-China Relations Act of 2000. Section 421 sets a lower burden of proof for harm to a sector of the economy as a result of product dumping; further, the measure provides restrictions that apply specifically to imports from China. The ultimate decision on remedy remains with the President.

I am no stranger to Section 421 cases; in 2003, I testified in support of petitioners in a case involving welded non-alloy steel pipe. The ITC ruled in favor of the petitioner but, unfortunately, President Bush opted against giving relief. I hope for a better outcome from the Obama Administration in the event that the ITC rules favorably.

I am hoping that the Commission makes an affirmative determination that adopts the remedy recommended in the Petition. If the Commission rules thusly, I have faith that President Obama will act accordingly.