ITC Failed to Fully Consider COVID-19 Effects on Domestic Industry, Thai Tire Exporter Says

The International Trade Commission did not properly consider the effects of the COVID-19 pandemic on the domestic industry for passenger vehicle and light truck tires in a less than fair value investigation on passenger vehicle and light truck tires from South Korea, Taiwan, Thailand and Vietnam, Sumitomo Rubber (Thailand) Co. said in a Sept. 16 complaint at the Court of International Trade. Sumitomo argued that the commission "utterly failed" to consider the entire record showing that the imports did not adversely impact the domestic PVLT tire industry.

The ITC injury determination led to the imposition of the antidumping duty order on PVLT tires from Thailand. One of the commissioners, David Johanson, dissented from the decision, finding that no such injury to the domestic injury was caused by imports from Thailand because market share shifts towards imports would not have occurred had it not been for the COVID-19 pandemic. There were no adverse price effects on U.S. prices of the domestic like product "despite consistent price underselling by subject imports," and the deterioration of the domestic industry's financial performance was driven by declining domestic production, Johanson said.

Sumitomo leaned on Johanson's dissent in its complaint, arguing that (1) the commission "disregarded the continued profitability of the domestic industry, which itself belied the Commission's conclusion that the domestic industry was experiencing any level of material injury," (2) the commission didn't fully weight the effects of the pandemic, and (3) "the Commission only made a finding of underselling, without making express findings of either price depression or price suppression," as required by the law.