Pneumatic Off-The-Road-Tires from India and Sri Lanka (Hearing)
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UNITED STATES INTERNATIONAL TRADE COMMISSION In the Matter of: ) Investigation Nos.: CERTAIN NEW PNEUMATIC OFF-THE-ROAD-TIRES ) 701-TA-552-553 AND FROM INDIA AND SRI LANKA ) 731--TA-1308 (FINAL) Pages: 1 - 261 Place: Washington, D.C. Date: Wednesday, January 4, 2016 Ace-Federal Reporters, Inc. Stenotype Reporters 1625 I Street, NW Suite 790 Washington, D.C. 20006 202-347-3700 Nationwide Coverage www.acefederal.com 1 1 UNITED STATES OF AMERICA 2 BEFORE THE 3 INTERNATIONAL TRADE COMMISSION 4 5 IN THE MATTER OF: ) Investigation Nos.: 6 CERTAIN NEW PNEUMATIC OFF-THE-ROAD ) 701-TA-552-553 AND 7 TIRES FROM INDIA AND SRI LANKA ) 731-TA-1308 (FINAL) 8 9 10 11 Main Hearing Room (Room 101) 12 U.S. International Trade 13 Commission 14 500 E Street, SW 15 Washington, DC 16 Wednesday, January 4, 2017 17 18 The meeting commenced pursuant to notice at 9:30 19 a.m., before the Commissioners of the United States 20 International Trade Commission, the Honorable Irving A. 21 Williamson, Chairman, presiding. 22 23 24 25 Ace‐Federal Reporters, Inc. 202‐347‐3700 2 1 APPEARANCES: 2 On behalf of the International Trade Commission: 3 Commissioners: 4 Chairman Irving A. Williamson (presiding) 5 Vice Chairman David S. Johanson 6 Commissioner Meredith M. Broadbent 7 Commissioner F. Scott Kieff 8 Commissioner Rhonda K. Schmidtlein 9 10 11 Staff: 12 William Bishop, Supervisory Hearings and Information 13 Officer 14 Sharon Bellamy, Records Management Specialist 15 16 Edward Petronzio, Investigator 17 Raymond Cantrell, International Trade Analyst 18 Lauren Gamache, Economist 19 Jennifer Brinckhaus, Accountant/Auditor 20 Nataline Viray-Fung, Attorney/Advisor 21 Elizabeth Haines, Supervisory Investigator 22 23 24 25 Ace‐Federal Reporters, Inc. 202‐347‐3700 3 1 Opening Remarks: 2 Petitioners (Terence P. Stewart, Stewart and Stewart) 3 Respondents (Eric C. Emerson, Steptoe & Johnson LLP) 4 5 In Support of the Imposition of Antidumping and 6 Countervailing Duty Orders: 7 Stewart and Stewart 8 Washington, DC 9 on behalf of 10 Titan Tire Corporation ("Titan") 11 United Steel, Paper and Forestry, Rubber, 12 Manufacturing, Energy, Allied Industrial and 13 Service Workers International Union, AFL-CIO, CLC ("USW") 14 Maurice M. Taylor, Jr., Chairman, Titan International 15 Inc. 16 Paul G. Reitz, President and Chief Executive Officer, 17 Titan International, Inc. 18 Paul Hawkins, Vice President, Sales, Titan 19 International Inc. 20 Greg Schoessler, Senior Controller, Titan 21 International, Inc. 22 Dennis Nutter, Field Sales Manager, Titan 23 Lester Brewer, General Manager, Des Moines, Titan 24 Mark Carpenter, Owner and President, Jerry's Tire 25 Stan Johnson, International Secretary-Treasurer, USW Ace‐Federal Reporters, Inc. 202‐347‐3700 4 1 Terence P. Stewart, Elizabeth J. Drake, Jennifer M. 2 Smith and Leah N. Scarpelli - Of Counsel 3 4 In Opposition to the Imposition of Antidumping and 5 Countervailing Duty Orders: 6 Steptoe & Johnson 7 Washington, DC 8 on behalf of 9 ATC Tires Private Ltd. ("ATC") 10 Alliance Tire Americas, Inc. ("ATA") 11 James Clark, President, ATA 12 Domenic Mazzola, Vice President, Engineering/OE Sales, 13 ATA 14 Bob Arnold, Vice President, Aftermarket Sales, ATA 15 Eric C. Emerson, Thomas J. Trendl and Gregory S. McCue 16 - Of Counsel 17 18 Arent Fox 19 Washington, DC 20 on behalf of 21 Balkrishna Industries Limited ("BKT") 22 B.K. Bansal, Director (Finance), BKT 23 Minoo Mehta, President, BKT Tires Inc. and BKT USA Inc. 24 Brian Robinson, Vice President, BKT Tires Inc. and BKT 25 USA Inc. Ace‐Federal Reporters, Inc. 202‐347‐3700 5 1 Matthew M. Nolan, John M. Gurley and Aman Kakar - Of 2 Counsel 3 4 Baker & McKenzie LLP 5 Washington, DC 6 on behalf of 7 Camso USA, Inc. 8 Camso Loadstar (Private) Limited 9 (collectively "Camso") 10 Robert Bulger, Vice President and General Manager, 11 Camso USA, Inc. 12 Catherine Conides, Vice President, Legal Affairs and 13 General Counsel, Camso Inc. 14 Thomas Van Ormer, Director of Purchasing, East Bay Tire 15 Co. 16 Kevin M. O'Brien and Christine M. Streatfeild - Of 17 Counsel 18 19 Rebuttal/Closing Remarks: 20 Petitioners (Elizabeth J. Drake, Stewart and Stewart) 21 Respondents (Matthew M. Nolan, Arent Fox LLP and Kevin M. 22 O'Brien, Baker & McKenzie LLP) 23 24 25 Ace‐Federal Reporters, Inc. 202‐347‐3700 6 1 I N D E X 2 Page 3 Opening Remarks: 4 Petitioners (Terence P. Stewart, Stewart and Stewart) 10 5 6 Respondents (Eric C. Emerson, Steptoe & Johnson LLP) 14 7 8 Maurice M. Taylor, Jr., Chairman, Titan 9 International Inc. 19 10 11 Paul G. Reitz, President and Chief Executive Officer, 12 Titan International, Inc. 24 13 14 Paul Hawkins, Vice President, Sales, Titan International 15 Inc. 28 16 17 Dennis Nutter, Field Sales Manager, Titan 32 18 19 Lester Brewer, General Manager, Des Moines, Titan 35 20 21 Mark Carpenter, Owner and President, Jerry's Tire 38 22 23 Stan Johnson, International Secretary-Treasurer, USW 41 24 25 Elizabeth Drake - Of Counsel 44 Ace‐Federal Reporters, Inc. 202‐347‐3700 7 1 I N D E X 2 Page 3 Matthew M. Nolan - Of Counsel 129 4 5 Brian Robinson, Vice President, BKT Tires Inc. and 6 BKT USA Inc. 132 7 8 Domenic Mazzola, Vice President, Engineering/OE 9 Sales, ATA 136 10 11 Eric C. Emerson - Of Counsel 142 12 13 Thomas J. Trendl - Of Counsel 148 14 15 Robert Bulger, Vice President and General Manager, Camso 16 USA, Inc. 155 17 18 Thomas Van Ormer, Director of Purchasing, East Bay 19 Tire Co. 162 20 21 B.K. Bansal, Director (Finance), BKT 167 22 23 Kevin M. O'Brien - Of Counsel 171 24 25 Ace‐Federal Reporters, Inc. 202‐347‐3700 8 1 I N D E X 2 Page 3 4 Rebuttal/Closing Remarks: 5 Petitioners (Elizabeth J. Drake, Stewart and Stewart) 247 6 7 Respondents (Kevin M. O'Brien, Baker & McKenzie LLP) 256 8 9 Matthew M. Nolan, Arent Fox LLP 257 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Ace‐Federal Reporters, Inc. 202‐347‐3700 9 1 P R O C E E D I N G S 2 9:30 a.m. 3 MR. BISHOP: Will the room please come to order? 4 CHAIRMAN WILLIAMSON: Good morning. On behalf 5 of the U.S. International Trade Commission, I welcome you to 6 this hearing on Investigation Nos. 701-TA-552 through 553 7 and 731-TA-1308 final, involving Certain New Pneumatic 8 Off-the-Road Tires from India and Sri Lanka. 9 The purpose of these investigations is to 10 determine whether an industry in the United States is 11 materially injured or threatened with material injury, or 12 the establishment of an industry in the United States is 13 materially retarded by reasons of imports of certain new 14 pneumatic off the road tires from India and Sri Lanka. 15 Schedules setting forth the presentation of this 16 hearing, notices of investigation and transcript order 17 forms are available at the public distribution table. All 18 prepared testimony should be given to the Secretary. Please 19 do not place testimony directly on the public distribution 20 table. 21 All witnesses must be sworn in by the Secretary 22 before presenting testimony. I understand that parties are 23 aware of the time allocations. Any questions regarding the 24 time allocations should be directed to the Secretary. 25 Speakers are reminded not to refer in their remarks or Ace‐Federal Reporters, Inc. 202‐347‐3700 10 1 answers to questions to business proprietary information. 2 Please speak clearly into the microphone and state your name 3 for the record for the benefit of the court reporter. If 4 you'll be submitting documents that contain information you 5 wish classified as Business Confidential, your request 6 should comply with Commission Rule 201.6. Mr. Secretary, 7 are there any preliminary matters? 8 MR. BISHOP: Yes Mr. Chairman. First, I would 9 note that all witnesses for today's hearing have been sworn 10 in. Second, with your permission, we will add to the 11 witness list today Greg Schoessler, Senior Controller for 12 Titan International Incorporated. There are no other 13 preliminary matters. 14 CHAIRMAN WILLIAMSON: Okay, very well. Good. 15 First, opening statement. 16 MR. BISHOP: Opening remarks on behalf of 17 Petitioners will be given by Terence P. Stewart, Stewart and 18 Stewart. 19 CHAIRMAN WILLIAMSON: Welcome Mr. Stewart, and 20 you may begin when you're ready. 21 OPENING STATEMENT OF TERENCE P. STEWART 22 MR. STEWART: Thank you Chairman Williamson, Vice 23 Chairman Johanson, Commissioners and staff, first Happy New 24 Year as you continue the second century of the Commission. 25 Petitioners in this case account for the vast majority of Ace‐Federal Reporters, Inc. 202‐347‐3700 11 1 the production in the United States of the domestic like 2 product. 3 Titan Tire is believed to be the nation's 4 largest OTR tire producer and the USW represents not only 5 workers at Titan's facilities but also at the two 6 Bridgestone facilities and the one Goodyear facility that 7 produce certain OTR tires. From the public prehearing staff 8 report and other record evidence submissions are clear. The 9 domestic industry has experienced declines in most of the 10 statutory factors the Commission looks at in trade remedy 11 cases. 12 By contrast, imports from India and Sri Lanka 13 collectively have increased both absolutely and relative to 14 domestic production in the 2013-2015 time period, and prior 15 to the preliminary affirmative countervailing duty 16 determinations in these cases in late June of this year.