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President Obama Stands up for Fair Trade

September 14, 2009

In a victory for supporters of fair trade policies, President Barack Obama announced on September 11 that he would enforce existing trade laws in response to surging imports of low-cost tires from China.

“This was the first major trade test for President Obama, and he passed with flying colors,” said International President Edwin D. Hill. “By standing up for our trade laws, he is making clear the need to level the economic playing field for America’s workers.”

Last summer, the International Trade Commission found China guilty of violating a provision of the Trade Act, which empowers the United States’ government to impose tariffs on surging imports that were shown to be endangering the future of an American industry and artificially disrupting the market.

Obama announced that he would levy tariffs of up to 35 percent on Chinese tires in response to the imports.

The case was first brought before the ITC by the United Steelworkers union, which represents tire workers who have seen their jobs imperiled due to a flood of cheap Chinese tires.

According to Washington Post columnist Harold Meyerson, between 2004 and 2008, tire imports from China increased by 215 percent, while tire production in the U.S. declined by 27 percent. The trade imbalance with China reached a record $268 billion in 2008.

“By artificially devaluing its currency and strong governmental support of its own manufacturing sector, China has an economic leg up that puts American companies and workers at a disadvantage,” Hill said. “We need our leaders to enforce our trade laws so we don’t face the global marketplace with one hand tied behind our backs.”

Click here to download a copy of President Obama's Sept. 11, 2009, proclamation.

Photo used under a Creative Commons license from user Mykl Roventine.