Tire manufacturers seek gov't help vs cheap imports.

(From Philippine Daily Inquirer)

Byline: Michelle V. Remo

LOCAL tire manufacturers are prodding the government to ask the World Trade Organization to look into the possible granting of huge subsidies by the governments of Indonesia, China and India to their tire exporters.

The Tire Manufacturers Association of the Philippines (TMAP) said the "very low" cost of tires from these countries could indicate their governments were breaching the principle of fair trade under the WTO through the granting of export subsidies.

Bernardo de Pedro, TMAP executive director, said in an interview that imported truck tires from China were valued at only $10 each; India, $25; and Indonesia, $39. He said these prices were even lower than the cost of raw materials in the international market which was pegged at $79. He added that the prices of imported tires even included accessories, such as inner tube and flap.

"This is the reason our industry is badly hurt by imports coming from those countries. How can they price their products at levels even lower than the cost of raw materials?" De Pedro asked.

He said the tough competition with imported tires was threatening the viability of the two remaining tire manufacturers in the country-Goodyear Philippines and Yokohama. He said the industry might soon depend solely on imported tires if the problems the industry faces were ...