Comment from Lawrence Lavigne, Foreign Tire Sales, Inc.

October 26, 2009 PUBLIC COMMENT BY FOREIGN TIRE SALES, INC. DOCKET NO. WTO/DS399/1 AND USTR-2009-0035 (74 FR. 50997) Foreign Tire Sales, Inc. (“FTS”), an importer of tires from China (among other countries), urges the US trade representative to engage in meaningful and sincere negotiations with the Peoples Republic of China on the issue of the tariffs placed on Certain passenger car tires imported from China. FTS further urges the USTR to recommend to President Obama that the tariffs be lifted or substantially reduced. The decision to place the tariffs on these products was wholly the result of US politics and the administration’s giving in to special interests ie. the United Steel Workers. In the short time that the tariffs have been in place, many of the prognostications of the opponents of the trade remedy are becoming reality. Increased prices across the board have occurred. This includes tires that are not manufactured in China. It also includes price increases in tier 1 and tier two tires. Customers are reporting shortages of some sizes. This will continue and become worse. Reductions in force, salary reductions and other adverse personnel actions in various industries that are involved in the importation of Chinese tires are being seen. US jobs in the tire manufacturing industries are neither being saved nor created. The USW achieved its goal of saving US tire manufacturing jobs that might have been lost in the future by negotiating job preservation in the master contracts with the domestic manufacturers. Hence, the prime purpose of the tariffs have been met in a far less draconian manner than the tariffs impose. China is correct that the tariffs are not justified as an emergency action. The tariffs were imposed as imports of Chinese tires were actually declining. That in conjunction with the US job preservation achieved by the USW through contract negotiation negate any trade emergency that might have arguably existed when the USW filed its section 421 petition. The unattended consequence of the tariffs is to have raised the prices on the consumer level which has resulted in people delaying tire replacement longer resulting in the use of unsafe, worn out tires. This will have severe safety implications. The imposition of the tariffs has had some heretofore undisclosed problems. The scope of the tariffs at issue has caused confusion in the determination of what is included. Even recent updated definitions do not cover the issues. For example, certain radial tires designated “LT” which would appear to be subject to the tariff may contain 14 plys making them truck or special trailer tires not subject to the tariff. Other tire classifications may cause similar problems. There are many other reasons why the tariffs should not have been imposed. China has reacted swiftly and angrily. Industries that were not involved in the tariff debate are finding themselves drawn into the dispute as China seeks trade remedies against certain US products. Respectfully submitted, Lawrence N. Lavigne Vice President/General Counsel