The United Steelworkers (USW) is welcoming the U.S. Commerce Department’s preliminary decision to impose antidumping duties on new pneumatic off-the-road (OTR) tire imports from China.

“Today’s decision will help level the playing field for U.S. workers by requiring Chinese tire imports to be priced fairly,” USW International President Leo Gerard said in a statement released on Wednesday. “This case shows the importance of vigorous enforcement of our trade laws as a first line of defense against unfair trade practices that harm American industries and jobs.”

The Commerce Department investigated four individual Chinese producers who received rates ranging from 11 to 52 percent, the statement said. Other companies receiving separate rates are subject to a margin that reflects the weighted average of these individual rates, or 25 percent. For companies not entitled to individual rates, the country-wide rate of 210 percent will apply. As a result of the determination, all importers of OTR tires from China will have to post a bond or cash deposit equal to the margin amounts pending the final determination this June.

The Commerce Department will now continue the proceeding by holding hearings, verifying information, and reaching a final determination by early June, the statement said. The International Trade Commission (ITC) will also investigate the issue of injury and reach a determination on that issue later.

“The USW will continue to be actively engaged in this ongoing investigation to ensure final margins accurately reflect the full scope of dumping that is occurring,” Gerard said. “We’ll be pushing China and its tire producers to cooperate with the investigation and asking the Commerce Department to fully and fairly enforce the law against dumped imports.”

The USW represents around 70 percent of the domestic OTR tire makers.

Off-the-road tires are designed for use on a broad array of agricultural, construction, and industrial vehicles. Titan Tire Corporation, a U.S. producer, and the USW filed petition in June 2007 alleging that the Chinese are dumping OTR tires and causing injury to U.S. workers and producers.

Dumping is selling imported good in the U.S. at less than fair value. If both the Commerce Department and the ITC issue final affirmative determinations, an antidumping duty order will be issued and future imports of the tires from China will be assessed with remedial duties to compensate for the unfair pricing. Titan and USW also filed a countervailing duty petition in June 2007, saying that Chinese OTR tires were unfairly benefiting from subsidies, and the Commerce Department issued its affirmative preliminary determination in that proceeding in December.

Posted 2/7/2008