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US Launches Global Washer Trade War
Today, the US means business; the clean laundry business. via Bloomberg:
- *COMMERCE DEPARTMENT ISSUES DECISION ON WASHERS IN STATEMENT
- U.S. FINDS DUMPING OF SOME LARGE WASHERS FROM MEXICO, S. KOREA
- *U.S. SETS DUTIES OF AS MUCH AS 82% KOREA-PRODUCED WASHERS
- *U.S. SETS DUTIES OF 72% ON MEXICO-PRODUCED WASHING MACHINES
FACT SHEET
Commerce Preliminarily Finds Dumping of Imports of Large Residential Washers from Mexico and the Republic of Korea
Commerce Preliminarily Finds Dumping of Imports of Large Residential Washers from Mexico and the Republic of Korea
- On July 30, 2012, the Department of Commerce (Commerce) announced its affirmative preliminary determinations and postponement of final determinations in the antidumping duty (AD) investigations of imports of large residential washers from Mexico and the Republic of Korea (Korea).
- For the purposes of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than fair value.
- Commerce preliminarily determined that Mexican and Korean producers/exporters sold large residential washers in the United States at dumping margins of 33.30 percent to 72.41 percent, and 9.62 percent to 82.41 percent, respectively.
- In the Mexico investigation, mandatory respondents Electrolux Home Products, Corp. NV/Electrolux Home Products De Mexico, S.A. de C.V. (Electrolux), Samsung Electronics Mexico S.A. de C.V. (Samsung), and Whirlpool International S. de R.L. de C.V. (Whirlpool) received preliminary dumping margins of 33.30 percent, 72.41 percent, and 72.41 percent, respectively. The margins for Samsung and Whirlpool were based on adverse facts available (AFA) because of their failure to cooperate in the investigation. All other Mexican producers/exporters received a preliminary dumping margin of 33.30 percent.
- In the Korea investigation, mandatory respondents, Daewoo Electronics Corporation (Daewoo), LG Electronics, Inc. (LG), and Samsung Electronics Co., Ltd. received preliminary dumping margins of 82.41 percent, 12.15 percent, and 9.62 percent, respectively. The margin for Daewoo was based on AFA because of its failure to cooperate in the investigation. All other Korean producers/exporters received a preliminary dumping margin of 11.36 percent.
- As a result of the preliminary affirmative determinations, Commerce will instruct U.S. Customs and Border Protection (CBP) to require a cash deposit based on these preliminary rates, adjusted for export subsidies, as appropriate, found in the preliminary determination of the companion Korea countervailing duty investigation. Pursuant to a change of practice announced in accordance with Commerce’s Trade Law Enforcement Initiative, for investigations based on petitions filed on or after November 2, 2011, Commerce now requires importers to post cash deposits rather than bonds to cover estimated duties between the preliminary determination and any subsequent order. (76 FR 61042, October 3, 2011)
- The petitioner for these investigations is Whirlpool Corporation (corporate headquarters in Benton Harbor, MI, with washing machine production in Clyde, OH).
- The merchandise subject to these investigations is all large residential washers and certain subassemblies thereof from Korea and Mexico. For purposes of these investigations, the term “large residential washers” denotes all automatic clothes washing machines, regardless of the orientation of U.S. Department of Commerce | International Trade Administration the rotational axis, except as noted below, with a cabinet width (measured from its widest point) of at least 24.5 inches (62.23 cm) and no more than 32.0 inches (81.28 cm). Excluded from the scope are stacked washer-dryers and commercial washers designed for the “pay per use” market. Also excluded from the scope are automatic clothes washing machines with a vertical rotational axis and a rated capacity of less than 3.70 cubic feet.
- Imports of the subject merchandise are provided for under the following categories of the Harmonized Tariff Schedule of the United States (HTSUS): HTSUS 8450.11.0040, 8450.11.0080, 8450.20.0090, 8450.90.2000, and 8450.90.6000). Some HTSUS subheadings include basket categories and may cover both subject and non-subject merchandise. These HTS numbers are provided for convenience and Customs purposes only; the written description of the scope is dispositive.
- n 2011, imports of large residential washers from Mexico and Korea were valued at an estimated $434 million and $569 million, respectively.
NEXT STEPS
Commerce is currently scheduled to make its final determinations for Mexico and Korea in December 2012.
If Commerce makes affirmative final determinations, and the U.S. International Trade Commission (ITC) makes affirmative final determinations that imports of large residential washers from Mexico and/or Korea materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD orders. If either Commerce or the ITC’s final determination is negative, no AD order will be issued. The ITC will make its final injury determinations in the Mexico and Korea investigations in January 2013.
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I thought the US would appreciate additional devices to wash the cocaine of our money bills.
"Fair Value" is best determined by keeping competition out...
Trade idea; long bureaucrats/short entreprenuers
Raise prices on household capital goods in a recession: GREAT IDEA!
We're from Washington, and we're here to help ... (make a bad situation worse).
Who cares.. they are all junk nowadays anyway.
It will all wash out in the end
From the title I thought this article was about the other kind of 'washers' ...
Like in that famous scene from Sam Peckinpah's 1969 'The Wild Bunch', after some of the gang get killed robbing a bank ...
And they open up the bags of 'loot' ... and one of the dumb gang members thinks they have stolen 'silver rings' ...
And the Ernest Borgnine character (RIP, Ernie) says, 'Silver rings, your butt! Them's WASHERS!'
'The Wild Bunch has a good laugh'
http://www.youtube.com/watch?v=yvEj8typz20
"Oh my, what a bunch. Big, tough one, eh ? Ha, ha, ha. Here you are, with a handful of holes, a thumb up your ass, and a big grin to pass the time of day with !"
http://wwwdelivery.superstock.com/WI/223/253/PreviewComp/SuperStock_253-...
Edmond "D.O.A." O'Brien was barely recognizable in this one...a fine actor...classic Peckinpah.
Anyone? Smoot-Hawley anyone? Anyone?
Buehler? Buehler?
long nudist resorts/ short rag trade
Trade war? We'll fight dirty.
So you wish to devaluate it completely?
Happy to keep my 1992 Kenmore washer operational.
Just spent $20 on a new fuse last year. The matching 1992 Kenmore dryer is still working just fine with a new thermal fuse and cleaned out the ductwork this past spring.
Same here, Sears made a good warshing machine back in the day.
Is this an indication of overstock? Can't bring out next year's turbo diesel powered, environmentally friendly models that don't wash worth a shit until you clear out the old ones.
Now the Maytag repairman will really be out of work.
Didn't Whirlpool move all their plants to Mexico, and now wants a tariff on Mexican-made washers not made by them? The irony.
Ah, NAFTA?
NAFTA was about getting cheap labor not about competing fairly... Why pay labor when you can pay a lobbyist?
Selling washers for less than fair value hurts the consumer how? Where can I get some of these below value washers before the government protects me from my own cost saving ignorance?
Well corporations are people too don't cha know. I believe GE is the consumer being hurt the most.
when a company can undercut the competition, and the competition goes out of business.. the following price increases to the products of the winner increase the size of your asshole by a margin of 200% beyond fair market price.
So what was your question again?
That assumes all competition goes bankrupt at the same, which just doesn't happen. At least I don't feel like I should pay insurance against such an occuring event.
it assumes that competition cannot compete, whether they exist temporarily as a start up or existed prior. The barrier to enter is too great. That's where one would hope anti-trust would come into play.... \_^oo^_/
Dude, there are 8 companies on that list. Are they all in cahoots?
...and do you think EVERYONE of them doesn't want to be the primary vendor in any market? really? You better open your eyes real fucking quick. These companies gun for the top the provider in ANY market, even if it's just regional.
Aside from that, Samsung is listed twice..
Is it bad a company try to be number one?? I guess I dont see your point. These compaies (7) are trying to sell below "fair market value". At what point do you conceed price fixing and just say "you know, thats a damn good price..."
It's bad when a company does immoral and unethical things to acquire the number one spot.. In that context, YES. Otherwise.. go for it and don't be evil. Did that scenario ever cross your mind or is that the first time you've heard of this concept?
Lol. So selling cheap washers is Evil. Lol.
Yep, and that coming from a self proclaimed libertarian. So many confused individuals...
You mention barrier of entry as a problem not caused by the governement in the first place and then move on on how the governement could solve the problem. Failed analysis in my book, but good enough for a cushy job at the Fed.
When the barrier of entry is created using unethical and immoral tactics, then yes.. some "entity" has to break that shit up. That entity just so happens to be our justice system which has an anti-trust law in place. So.. what's your point again?
Anti-trust laws were created by corporations to sue corporations. Not for the state to "clean up" markets as people are willing to think.
You're basically paying taxes for stuff that would happen in a free market anyways. It's like paying bureaucrats to enforce the law of gravity.
Leftist deluded fantasy.
How about some factual cases?
Find me one MBA course, book that preaches that as a successful strategy?
There isn't one.
99.9% of everything is not sold direct to the customer. Try telling Wal-Mart that you are going to, at a loss, sell to them and you don't want them to keep the difference. HA!
See if GM/FORD dealers don't gobble up the discount. Or anyone else in any product stream.
You are ignorant.
Leftist? is that how this lands? just because you don't agree, I'm INSTANTLY a lefty? for the record.. and you can look up my posts, I'm a libertarian. So you stick the attitude right up your ass.
But you sound pretty young.. I refer to you the creation of anti-trust laws as factual causality. Would we need them if this never happened?
Your logic playes out when there is a monopoly situation. With 8 competitors on the above list, do you really think your senario applies to this situation?
kool-aide.
If your materials are supplied by a handful of price-gunners, if your assembly houses are staffed by union workers, and if your credit is priced in dollars, you can very easily have a price-controlling regime. It is not a monopoly, it is a cartel, there is a difference. A cartel is far more insidious.
Cartels in the washer business.. who would have thought. I say let pay higher prices so we can starve these cartels!!!
Never seen anything like that with local gas stations.. mmm..mmm..nope.. never..
It does on a regional basis.. and there are 7. Samsung is listed twice.
Monopoly can only be sustained through government protection. Anti-trust laws are anti-competetive and protect, rather than prevent monopolies...as with all force, the outcome is the exact opposite of the stated intent.
High prices result in other entrepeneurs entering the market, in order to get their slice of that profit. Monopolies are not a natural state of free markets. If prices are too high, consumers choose other other products/methods. Demand destruction.
A 30 year old video of Ron Paul discussing the topic.
http://www.youtube.com/watch?v=8C4gRRk2i-M
Yes.. but they demand destruction AFTER the fact... so increases happen first and THEN the entities are broken. Ma Bell.
Ma Bell? That was one company!!!! there are 7 on that list. Are you trying to protect Whirlpool or are you interested in a cheaper washer? I think you are protectionist. Once again, I think the washer business has enough compitiion so that there is no danger in monopolistic practices. Ma Bell? Seriously? This is the washer business. Can we not have the option of buying cheaper washers??
EDIT: Maybe I am missing the /SARC. Sorry if I did. My bad.
What good is a cheap washer if you have no money(job) to pay for it? Put it on the card? If you scoff at Ma Bell then what about the American electronics industry that was destroyed by Japanese dumping. True the companies won civil suits after years of litigation, but what good does a court victory do after you've already gone out of business? You international free traders never learn. It doesn't work because countries cheat.
Someone gets it.. ^
I want inexpensive (not cheap) goods that are brought to the market in such a way as to not attempt to lie,cheat or steal the way to the top. In addition, I would like those goods not created in a country that unfairly competes with our labor here because they are willing or forced to live in slave like conditions. I have no problem with exceptionalism.. I do have a problem with excessively unfair advantages which will eventually hurt the labor force here.
Consumers may not be hurt buy the price of the washer but factor in the unemployment you pay for someone to sit idle and you will begin to understand the magnitude of the cost problem. Buy American and get Americans back to work..
less workers = more jobs available. I'm just sayin'.
Every single thing should be made in the county it is used in. This way there will always be unfathomable labor shortages. Every one will have a job, if not even three or more. Of course things will not be made, nor be
affordable.
Anyway, you let some Washington hack decide what YOU can or cannot buy with your money, and find you a job slapping on a wiring harness on driers all day. I'll buy what I want, working for who I want.
Curency wars>Trade wars>Shooting wars.
Do not pass go .
Correct, I'll only add that possession is the law as we are somewhere between the last two.
"For the purposes of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than fair value."
I thought that fair value was determined by an agreement between a willing buyer and a willing seller. What could I have been thinking?
Silly Dr, that's only in free markets
You're talking about a free market, as it is the case for example in Russia, China, North Korea.
The west does have a very comfortable socialisticly rigged market.
Love the sarcasim, what "free market"? Don't worry, once enough "mericans" are starving, they will build those machines for less.
lack of willing buyers == inventory build up == dumping == increase duties on merchandise == lack of willing buyers.
Is this an indication of where channel stuffing has taken place? Can wait for more items, already produced and sitting in a warehouse somewhere, to experience fire sale pricing.
This protects our $60 per hour assembly line workers (with full health benefits).
Trade tariffs and price controls are an old standby....Nixon used both generously in the early 1970's ...(until criminal acts forced him from office). Subsequent market forces crushed any beneficial effects from these measures if I remember correctly and severe inflation raged for years thereafter.
Willing buyers and willing sellers imply free will which, as we know, is superstitious nonsense thanks to the advertising industry.
This is why all power should be in the hands of the elite. One party or a fake( for the Muppets. ) two " party " racket..er...scheme ....er....system.
spindry ,rinse ...repeate ...looks like a ramp up at the close
As long as they don't change the LIBOR of Tide laundry detergent I'm still ok.
Whirlpool must have made a campaign contribution
the check just cleared.
So we are going to screw the public again to protect the non-existant domestic washer manufacturing base?
I LOVE government.
pods
"protect the non-existant domestic washer manufacturing base?"
after the wonderful NAFTA, CAFTA Ect made it so easy and profitable to export the jobs that had made them here
but the congress creeps made a fortune on that treasonous deal
Myth. There was less regulation as you go back in time. Mexico was always south of the border...
as stated above. Someone should ask where the US Whirpool plants were moved to. Some place South of here, I would guess.
It's a very good point. These jobs are long, long gone, so who is this for? It would seem pointless. GE is bringing appliance manufacturing back to appliance park in Louisville. We all know what kind of relationship that Inmelt has with the current administration. Is that a gift to GE? More crony capitalism?
Bullish for skidmarks
Yeah, free trade... Ahem, cui bono?
US citizen middle class...
Trickle up poverty..
Hey, speaking of washing, don't you have some laundry to finish?
Chop chop, Chang, back to work.
No tickee, no washee.
Deja Vu of the last "Great Depression" all over again. Yogi would be proud.
why would a bear be proud?
They're not. ...but Berras would be.
The Sucking Sound continues
HO HUM thread jack this is much more interesting looks to me like the FED wants to FORCE people into the markets. I would have expected ZH to be on top of this :)
What If There Was No Cash?
snip
"The reason this is a relevant thought-experiment is that the New York Fed, in a little-covered report issued last week, has recommended that investors in money market funds be prohibited from withdrawing 100% of their funds without significant advance notice."
in full
http://seekingalpha.com/article/760001-what-if-there-was-no-cash
Fed Weighs Cutting Interest On Banks’ Reserves After ECB Move
http://www.bloomberg.com/news/2012-07-30/fed-weighs-cutting-interest-on-banks-reserves-after-ecb-move.html
How Bernanke Can Get Banks Lending Again
"But suppose it doesn't work. Suppose the Fed cuts the IOER from 25 basis points to minus 25 basis points, and banks don't lend one penny more. In that case, the Fed stops paying banks almost $4 billion a year in interest and, instead, starts collecting roughly equal fees from banks. That would be almost an $8 billion swing from banks to taxpayers. There are worse things."
http://online.wsj.com/article/SB10000872396390444873204577537212738938798.html
Of course they won't lend. They'll just yank their funds and park them in gold and oil.
The very first thing I think of .. that Giant Sucking Sound. Tis why our wages will fall as their rise.
Isn't the "Commerce Department" an oxymoron?
Hey, it's perfectly Orwellian.
Defense department which only plans attacks, commerce department that forbids trade and health department that promotes burgers.
All your briefs are belong to us!!!
NAFTA?
Yeah, I'm wondering who the Mexican manufacturers are supposed to sue in a case like this.
let the nationalizations begin!
Wash, Rinse, Repeat.
Seems to me plowing all of the USA's food back into the ground due to the drought...and reported on by CNBC...is more important right now.
Only a freakn' idiot would vote to burn our food for fuel. Let those who advocated for E85 starve first.
First they 'invent' the washing machine, then they offshore it's production to Korea destroying their manufacturing base in the process and then they slap a tax on for them being imported again because they're too cheap and undermine their tax income. The world is getting more screwed up by the day.
You did not invent washing machine, government did it for you.
Long live the free market! bahaha
Dear Mr. Obama,
Keep on imposing import duties on everything - it will create massive inflation but the BLS can always adjust it to the value that Bernanke wants.
Sincerely,
Worst Vermin in Trolldom
" I regard the 9/11 conspiracy theories as a fantasy and a distraction from the real problems we face"
"The characters who infest their comment section (ZH) are some of the worst vermin in trolldom."
James Howard Kunstler
Thanks JK - I resemble that remark.
Sounds like an SEC or CFTC investigation.
A lot of sound and fury signifying nothing.
Insanity.
Only US citizens, only US citizens to come up with that stuff...
Another set of US citizens who think they deserve every single cent they make.
AnAnonymous, goofing off when he should be working:
Hey, you'd better have that US citizen laundry finished by 5 PM.
And remember, NO STARCH!
Ancient Chinese Secret, blitchez.
Smoot Hawley next
Shit, I need to arb this opportunity.
Gee i wonder which american made appliance companies have lobby groups.
I was hoping to get just one more cardboard box for another room to my abode. Will this adminstration do anything to fix the housing market?
This is unfair business practice which will lead to unfair amounts of people in tents and refrigerator boxes and should be illegal because washing machine boxes are just right for some.
The housing market is fixed, didn't you get the memo?
I meant the homeless housing market, i.e., cardboard boxes.
"If Commerce makes affirmative final determinations, and the U.S. International Trade Commission (ITC) makes affirmative final determinations that imports of large residential washers from Mexico and/or Korea materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD orders."
OK - as someone stated above - it ain't about the consumer. So it's about the industry aka corporations - who are people too so I've heard. Anyway...I am a bit hard pressed to think of any remaining washers-dryers manufactured in the good ole USA. Maybe GE, but that would be ironic since they are so good at offshoring stuff.
Who is the domestic industry?
Whirlpool, Benton Harbor, MI.
So now we cannot afford washing machines thanks to our wonderful govt. protecting union jobs. At some point the people will march, until then carry on.
My old washing machine seems broken, but continues to work. I think perhaps it is a zombie washing machine, much like this zombie economy.
Sounds like GE has been lobbying hard lately.
Okay let me get this straight. Whirlpool Corp. is the petitioner in a complaint against Whirlpool International.Am I reading that right? WTF?
A political game? Look we are working to protect the American worker.
http://www.huffingtonpost.com/jeff-m-fettig
Peace Doc !
"They didn't build that...."....so why should I pay for it at all?
Everyone of the people who made this rule, and the people who will enforce it, all need to get get off the government dole and get real jobs working in an appliance manufacturing plant.
I have a Maytag that was built in 1967. Still works great.
I have an Excelsior Wash Board made in 1927, still works great.
long tin, bitchez!
I can't seem to convince my wife to use a washboard. :-)
My wife has one hanging in the laundry, once I asked her why she doesn't use it and instead she showed me how the rug beater worked...
.
Try moving a new rock down to the side of the creek for her.
I have a washboard made of cloudy glass, mfg. date unknown.
I have a stream close to my house and a big flat rock.
Note to self:
Must buy more union votes
Barry Soetero
Thank god for Craigslist! Of course there are already mfg's that want to get it shutdown using some of the bad things that happened on CL as an excuse. That way you can't find used and have to buy new. No kidding, companies like MonsterCable have come right out and said it.
It doesn't matter though, they still can't seem to put the whole picture today and realize that people working for min wage or part time aren't buying your new, overpriced piece of plastic fucking garbage. And a lot of them have learned there lesson with finance now, have a broke POS in 3 years and be making payments for another 3 years after that.
Their greed created this mess, fuck every goddamn one of them raw with no reach around.
Tell Obama I have a washer made in 1958. Yeah, that's right my wife is still going strong in 2012. /s
Does she rinse?
Whirlpool, Electrolux, Maytag? These are American brands named after famous kings. What is going on here?
This will help keep inflation down... right?
Game on FiSHeS.
I can get dirtier than thou and live to prove it.
Looks like Obama is trying to look tough on trade issues.
But notice he doesn't touch CHina. Wouldn't dare.
The campaign analysts realize that all the plastic material components are likely manufactured in China. "Assembled in the USA from imported parts".
In this case there is an axis of three manufacturing regions trying to devour the smaller fish. US-China-Euro, they assemble to form a pretty much exclusive supply chain monoply for the western market. Between the three, they can either triangulate or control the price of the supply of raw materials, components, wip's and fg's. The US consumption cycle is self-devouring however, as a commenter pointed out, it's a Neo-Keynesian broken window, we'll pay you more dollars to build more expensive items for you to pay more for and so forth. The Chinese consumption cycle, well, you can build cities and you can build an extensive loaning network but you can't build solid buyers and you can't build their payments.
I can go on and on about how many ways this is tantamount to a clusterfork if applied to other areas. BTW we are in a price-fixing regime as in the 70's, I see the prices of goods all day and I don't believe my eyes.
O...HI....O
(article from 2009 but useful information)
http://www.cleveland.com/business/index.ssf/2009/09/clyde_ohio_stands_to...
A spike in appliance sales will drive manufacturers to increase their work forces. And Weaver, sitting in his second-floor office in the tidy municipal building on North Main Street, noted, "We're the capital of washing machine makers."
Clyde, a little-known manufacturing powerhouse 80 miles west of Cleveland, is home to what appliance giant Whirlpool Corp. says is the largest home washing machine and clothes dryer factory in the world.
Some 3,000 employees work there, making machines that the Benton Harbor, Mich., company markets as Whirlpool, Kenmore, Amana and other brands.
Other appliance-manufacturing businesses call Clyde home, too. Fischer Paykel Appliances, a New Zealand company with about 80 employees, makes its own major appliances there, as well as electric motors it supplies to the nearby Whirlpool plant.
And Revere Plastics Systems, a parts supplier, has a far larger production facility, employing 450 people who mold knobs, agitators, detergent dispensers and other plastic parts for the thousands of home laundry machines that ship from the Whirlpool factory every month.
+100 Jim in MN. Swing state politics. Ohio in play.
Jim in MN's comment should be included in the main post.
Maybe he found it and maybe he didn't. He makes an excellent political argument, but if a policy is passed that favors a swing state in the forest and no one hears it, then did it really happen? If and when the administration starts running 60 sec spots bragging about protectiing the washing machines of Ohio, then I'll agree that Jim in MN hit it on the head.
Double post
Ok, now how much did GE spend in lobbying per washing machine sold? How much did the consumer spend to have their selection of alternatives diminished?
I wonder why they are doing this. Is there an election coming up?
Jeff Immelt's deal no doubt.
Capitalism is going rampant in the US of A. *irony*