WASHINGTON (May 8, 2008) — Goodyear has voiced opposition to waiving duties on Indonesian radial tire imports, as outlined in a recent International Trade Commission advisory report to the Office of the U.S. Special Trade Representative.
The ITC periodically does reports for USTR on the probable economic effects of waiving limits on duty-free treatment of certain imported goods under the Generalized System of Preferences. In the report released in April, one of the products considered was pneumatic rubber radial tires from Indonesia.
The Indonesian Tire Manufacturers Association asked for the waiver, arguing that the Indonesian tire industry employs 70,000 semi-skilled workers and accounts for 70 percent of Indonesia's consumption of natural rubber.
Goodyear, however, argued that Indonesian tire exports to the U.S. have nearly tripled in two years—from $55.3 million in 2005 to $152.5 million in 2007—and those tires are generally less expensive than comparable tires made in the U.S. Indonesia has 11 tire plants, one of which is operated by Goodyear, P.T. Goodyear Indonesia.
An ITC spokeswoman said USTR will decide how, if at all, to act on the information provided in the report.