Obama's Section 421 Decision on Tires Lauded by U.S. Apparel Industry

On September 11, 2009, President Barack Obama announced his decision to impose duties on passenger vehicle and light truck tires in the first-ever Section 421 investigation decided by his Administration.  The decision to impose duties was the first time a Section 421 investigation has resulted in the imposition of duties and sends a message to other U.S. industries about the President’s willingness to consider Section 421 cases. 

In the last issue of the Apparel Industry Alert, we explained that the President’s decision could encourage the U.S. apparel and textile industry to file its own Section 421 petition.  Yesterday, several influential U.S. apparel and textile industry executives were quoted responding to the case:

The September 15, 2009 issue of Women’s Wear Daily quoted Cass Johnson, President of the National Council of Textile Organizations, saying, “We review the [import] numbers every month and continually review our options.  This decision means that 421 is a viable option.”

Auggie Tantillo, Executive Director of the American Manufacturing Trade Action Coalition, was also quoted.  He said, “Clearly this creates a legitimate discussion within various sectors, including the textile sector, about the credibility of a 421 case.  The U.S. industry will be fully examining those options.”

The National Council of Textile Organizations and other U.S. domestic producers are monitoring imports and preparing for some type of trade remedy investigation.  It is important that foreign producers and importers begin to prepare now to defend their interests in a trade remedy investigation.  If you would like to obtain a copy of prior alerts about steps that companies can take to prepare for a trade remedy case, please feel free to contact Eric Emerson or Tom Trendl.