The U.S. International Trade Commission (ITC) has unanimously determined that large residential washing machines are being imported into the United States at such increased quantities that they have caused serious injury to domestic producers.
The U.S. International Trade Commission (ITC) has unanimously determined that large residential washing machines are being imported into the United States at such increased quantities that they have caused serious injury to domestic producers.
The ITC’s determination was part of a rarely used investigative mechanism, known as section 201. Authorized under the 1974 Trade Act, section 201 allows the commission to determine if a domestic industry is harmed by imports and then make recommendations for a remedy to the president.
Remedies may include an increase in import duties, quotas and tariff-rate quotas, trade adjustment assistance, or any combination of these actions. President Trump will make the final decision whether to provide relief to the U.S. washer industry, in this case, and what type of relief, including with respect to imports from countries in U.S. free trade agreements, should be applied.
Section 201 remedies last no longer than four years and are eligible for an additional four years, if necessary.
The ITC took up this section 201 investigation as part of a petition filed by Benton Harbor, Mich.-based Whirlpool Corp. on June 5.
Whirlpool praised the ITC’s Oct. 5 decision to continue with the remedy phase of the section 201 investigation as a step in the right direction. “This vote sets the stage for the administration to put in place an effective remedy to create a level playing field for American workers and manufacturers,” said Jeff M. Fettig, Whirlpool’s chairman, in a statement.
While data has shown that U.S. imports of South Korean washers, namely those manufactured by Samsung and LG, are up substantially in recent years, section 201 requires that commercial washer imports from all known sources be included in the investigation results.
Whirlpool has accused Samsung and LG, specifically, of “country hopping” to avoid U.S. antidumping duties.
The company cited that when the U.S. government found that South Korean washers were unlawfully dumping washers in the United States, Samsung and LG moved their production to China. In late 2015, Whirlpool filed a new petition to address this concern.
“In reaction, Samsung and LG immediately began stockpiling product into the United States and moving their production again—this time to factories in Vietnam and Thailand,” the company said.
“Earlier this year, the U.S. government issued a new antidumping order against Samsung and LG in China. But the two companies already had made great strides in their second end run around U.S. trade laws and have continued their assault on American manufacturers and workers,” Whirlpool said.
Samsung called the ITC’s section 201 decision “disappointing,” adding that “restrictions on imports of Samsung washing machines will negatively affect American consumers by limiting choices, raising prices, and offering less innovative washing machines.”
Samsung highlighted its commitment to establishing its North American home appliance manufacturing facility in South Carolina.
“We urge the commission to consider carefully how potential remedies might hinder the establishment and operations of this facility and affect American consumers,” the company said.
To continue its investigation with respect to washer import remedies, the ITC will hold a public hearing on Oct. 19. The commission will submits its final report to the president by Dec. 4.
This is the second section 201 determination undertaken by the ITC this year.
In late September, the commission unanimously determined that imports of electricity-generating solar panels are entering the United States at such increased volumes that they are unfairly harming domestic manufacturers of these products.
That ITC determination was made in response to an investigation initiated by the commission on May 17. The petitioner for the investigation was filed by Suniva, which was subsequently supported by SolarWorld Americas.
The commission held a public hearing regarding remedies for the U.S. solar panel manufacturing industry on Oct. 3 and plans to submit its report containing its injury determination, remedy recommendations, other findings to President Trump by Nov. 13.
ITC: U.S. awash in laundry machine imports
