In a letter to President Obama, David Hartquist, executive director of the Committee to Support U.S. Trade Laws (CSUSTL), encouraged the President to support a petition brought by the United Steelworkers union (USW) regarding imported tires from China.

This month, the President will determine what import relief to provide in response to the petition, brought under Section 421, on imports of passenger and light truck tires from China. The International Trade Commission, finding that imports of such tires have increased rapidly and caused injury to the domestic industry, recommended specific tariff relief for three years to remedy that injury.

"We write to underscore both the importance of Section 421 as a legitimate trade remedy, and to respectfully urge its application in appropriate cases," Hartquist said. "Campaign promises should be fulfilled and effective enforcement action taken to provide full relief where merited. This case is being watched closely to see whether Section 421 is an effective law or a dead issue."

Section 421 was enacted as a condition for China’s entry into the World Trade Organization (WTO) because WTO members, including the United States, were concerned that the severe economic distortions in China’s economy could readily result in damaging import surges once China acceded to the WTO. Consequently, the United States insisted on the ability to obtain relief through a China-specific safeguard mechanism so that U.S. industries and workers would not have to bear the brunt of China’s transition to a market-based economy. Section 421 was meant to be used to mitigate the harm that may occur when imports surges from China cause market disruption in the United States.

Hartquist also noted, "Other countries have invoked China-specific safeguards to provide relief from Chinese import surges, the previous Administration refused to do so, despite numerous recommendations from the ITC that relief was merited. We urge President Obama to take a different path."

In an official statement released today, Leo Gerard, international president of the United Steelworkers (USW) expressed confidence that President Obama will grant the U.S. tire industry meaningful relief from Chinese tire imports that have injured domestic production workers. Gerard said, "We don’t know what the USTR has recommended, but we do know the U.S. International Trade Commission (ITC) concluded that a large China tire import surge had injured domestic workers and relief should be granted."

Following an inter-agency review, the Office of the U.S. Trade Representative (USTR) was required to transmit today its report and recommendations to the White House on the level of relief for the domestic tire industry and its workers in the Section 421 case brought by the USW in April.

"President Obama will have the opportunity to let American workers know he will stand with them when trade distorting practices from China threaten American jobs and our industries," said Gerard. "This is the time and this is the case for the President to open the trade enforcement toolbox."

Gerard adds, "We are confident the President shares our values of promoting a rising standard of living for the American worker. This trade case gives him the chance to put into practice his pledge to level the playing field and give all Americans a chance to share in the benefits of balanced trade. Strong enforcement is the cornerstone of any new progressive trade policy that might be developed by this Administration."

Interest in the case has resulted in more than 30 members of Congress calling on President Obama to implement the tariff remedy recommended by the ITC, and more than 50,000 USW members have transmitted individual letters to the White House, urging the President to support the trade commission’s findings.

Under the Section 421 provision of the amended U.S. Trade Act of 1974, President Obama has until Sept. 17 to decide how to respond to today’s USTR recommendations for passenger and light truck tires.

According to records in the USW trade case, a massive 215 percent surge in passenger and light truck tire imports by volume, and an even greater 295 percent surge in value occurred during 2004-08. The result has been a loss of more than 8,100 domestic tire jobs by the end of 2009 from closed plants.

Thousands of additional jobs supported by the tire industry in communities across the country are at risk, and the health care protection for 35,000 retired tire workers and their families depends on the outcome of the President’s actions, according to the USW.

Should the president decide to apply import relief, it would go into effect by Oct. 2.