New Continental Tire Plant Demonstrates Why Enforcing Trade Laws Works

Posted by scapozzola on 04/29/2011

In September, 2009 the Obama Administration imposed duties on surging imports of subsidized tires from China.  The three-year plan was designed to provide relief for U.S. tire manufacturers under Section 421 of U.S. trade law, the first time the law had been used since its inception.

Only one year after the import duties were applied, a study by the Alliance for American Manufacturing (AAM) found that the U.S. tire industry had already reversed a significant decline.  Sales were up, and workers were being hired.

The latest demonstration of the effectiveness of the 421 ruling is that Continental AG plans to build a new consumer tire manufacturing plant in the United States.  The company says the planned plant will help cover rising tire demand in North America:

These plans are further proof for the depth of the turnaround that the Passenger and Light Truck Tires Division has achieved in the Americas region by means of determination and perseverance.

Modern Tire Dealer reports that "a site selection committee has been formed, and is in the early stages of analyzing possible sites. Continental tentatively hopes to have a site selected by the end of the third quarter of this year."

Bottom Line: Enforcing U.S. trade law works.  Click here to read the full report on relief for the U.S. tire industry.

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