WASHINGTON — Rep. Tom Cole testified Tuesday in favor of a quota on Chinese tire imports, arguing that a flood of tires from the Asian country threatens jobs at two tire plants in his district.
Cole, R-Moore, told the International Trade Commission that he was a strong advocate for free trade but that China is obligated to follow rules established when it was made part of the World Trade Organization.
Cole blamed the 2006 closure of the Bridgestone/Firestone plant in Oklahoma City on Chinese imports. That closure meant the loss of more than 1,400 jobs.
If trade rules aren’t enforced, 4,200 more jobs at the Goodyear plant in Lawton and the Michelin factory in Ardmore could be lost, Cole said.
"During a deep recession, I think it both unfair and reckless to sit back and watch people lose their jobs when there are legitimate ways to prevent that,” Cole said at a hearing here.
The United Steelworkers filed a petition in April asking the International Trade Commission to limit Chinese imports of passenger and light truck tires to 21 million, which could be raised in small increments after that. In 2008, according to the union, there were 46 million tires worth $1.7 billion imported from China
Imports grew by 215 percent in volume from 2004 to 2008, union leaders said. In that same time period, 5,100 domestic workers’ jobs were eliminated at four tire plants, including the one in Oklahoma City, according to the union.
The union claims the imports have disrupted the domestic market. If the International Trade Commission agrees and votes on a remedy — which may include a quota — President Barack Obama would have to approve it.
Opponents of the petition say the increase in imports stems largely from the decision by domestic manufacturers to stop making cheap replacement tires because there was more profit in premium tires.
GITI Tire Investment Co., the largest producer of tires in China, argued to the commission in a brief that the closing of the Oklahoma City plant was the result of Bridgestone’s "decision to stop production of low-cost tires.”
And, GITI argues some current problems in the domestic industry are the result of the recession.
Cole said in an interview that "free trade doesn’t mean a free-for-all” and that the federal government should be enforcing the rules on the books.
He said it appears that China is violating rules negotiated after that country was "given unfettered access to the richest market in the world.”
A decision from the trade commission is expected later this month.
from the oklahoman
Cole, R-Moore, told the International Trade Commission that he was a strong advocate for free trade but that China is obligated to follow rules established when it was made part of the World Trade Organization.
Cole blamed the 2006 closure of the Bridgestone/Firestone plant in Oklahoma City on Chinese imports. That closure meant the loss of more than 1,400 jobs.
If trade rules aren’t enforced, 4,200 more jobs at the Goodyear plant in Lawton and the Michelin factory in Ardmore could be lost, Cole said.
"During a deep recession, I think it both unfair and reckless to sit back and watch people lose their jobs when there are legitimate ways to prevent that,” Cole said at a hearing here.
The United Steelworkers filed a petition in April asking the International Trade Commission to limit Chinese imports of passenger and light truck tires to 21 million, which could be raised in small increments after that. In 2008, according to the union, there were 46 million tires worth $1.7 billion imported from China
Imports grew by 215 percent in volume from 2004 to 2008, union leaders said. In that same time period, 5,100 domestic workers’ jobs were eliminated at four tire plants, including the one in Oklahoma City, according to the union.
The union claims the imports have disrupted the domestic market. If the International Trade Commission agrees and votes on a remedy — which may include a quota — President Barack Obama would have to approve it.
Opponents of the petition say the increase in imports stems largely from the decision by domestic manufacturers to stop making cheap replacement tires because there was more profit in premium tires.
GITI Tire Investment Co., the largest producer of tires in China, argued to the commission in a brief that the closing of the Oklahoma City plant was the result of Bridgestone’s "decision to stop production of low-cost tires.”
And, GITI argues some current problems in the domestic industry are the result of the recession.
Cole said in an interview that "free trade doesn’t mean a free-for-all” and that the federal government should be enforcing the rules on the books.
He said it appears that China is violating rules negotiated after that country was "given unfettered access to the richest market in the world.”
A decision from the trade commission is expected later this month.
from the oklahoman
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