Giti ‘disappointed’ with US anti-dumping/countervailing duty decision
Giti Tire has stated that the company “is very disappointed” with the recent US Department of Commerce (DoC) preliminary decision to impose 17.69 per cent tariffs on tyres produced by Giti in China for sale in the US. The Singapore-based manufacturer suggests that to do so is contrary to free market business:
“Giti is a private company which believes in free-market practices and competes fairly in the global tyre arena. The company’s success is attributed to free trade and fair competition as demonstrated by its successful sales in more than 100 countries in a highly-competitive global tyre industry. Giti believes that these preliminary duties do not reflect its actual circumstance. The company is seeking clarification from the DoC on its calculation and will continue to work with the department between now and the issuance of the final determination to ensure that Giti Tire’s actual circumstance is properly reflected in the department’s calculation.”
The second – and arguably strongest – plank of Giti’s argument against the duties is its commitment to investing both manufacturing and distributing tyres in the US. On 16 June 2014, Giti announced that it will invest more than US$560 million in building a manufacturing facility to serve the US market, creating 1,700 jobs in South Carolina. The company asserts this demonstrates a sustained and significant commitment to the US with no intention to harm the tire industry in the United States.
Giti Tire Group is headquartered in Singapore and has been operating in the tyre business since 1951. The group’s North American sales, marketing and distribution coampny, GITI Tire (USA) Ltd., is based in Rancho Cucamonga, California.