By Kang Seung-woo
The U.S. International Trade Commission (ITC) has begun a safeguard investigation into Whirlpool’s allegations that washers imported from Samsung Electronics and LG Electronics are hurting domestic manufacturers.
However, the two Korean companies disagree with their American rival, claiming that U.S. consumers will eventually fall victim to the measure.
Plus, it might not be easy for the U.S. government to side with U.S.-based Whirlpool as the ITC believes the case is “extraordinarily complicated.”
On May 31, Whirlpool filed a petition against Samsung and LG, saying they have repeatedly relocated their washer manufacturing facilities to avoid trade sanctions, and the ITC instituted a 120-day investigation as of June 5.
The trade commission said it started investigating “to determine whether large residential washers are being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry that produces items like or directly competitive with the imported items.”
The ITC plans to hold a hearing on Sept. 7 and make its determination by Oct. 5. The probe can be extended for an additional 30 days.
A safeguard case requires the ITC to determine whether increased imports are a substantial cause of serious injury to a U.S. industry. If the ITC finds that injury occurred, the President of the United States has the discretion to impose a remedy after receiving a recommendation from the ITC. However, a safeguard investigation does not require a finding of dumping.
Samsung denied the Whirlpool accusation.
“Samsung employs thousands of people in the U.S. We have invested more than $27 billion in factories, R&D and design centers for decades across the country, and we will continue to invest in our presence here,” Samsung Electronics America said in a statement.
“Consumers buy Samsung washing machines because of our design and innovation, and now they stand to lose the most by this filing, with the potential for limited choices, higher prices and stunted innovation.”
LG also said that it will aggressively defend this case.
“We plan to stress that our exported washers have not caused serious damage to the U.S. industry and the safeguard measure will adversely affect the U.S. consumers and retail industry,” LG said in a statement.