Congress of tfje Untteb States*
`House of EepreSentattbes
`
`September 7, 2017
`
`The Honorable Rhonda K. Schmidtlein
`Chairman
`U.S. International Trade Commission
`500 E Street, SW
`Washington, D.C. 20436
`
`RE:
`
`Investigation No. TA-201-76 (Large Residential Washers)
`
`Dear Chairman Schmidtlein:
`
`We write to express our concerns regarding the International Trade Commission's Section 201
`"global safeguards" investigation into large residential washing machines imported into the United
`States. While we understand the complex nature of the current proceeding, we emphasize that it is an
`extraordinary step to grant an industry protection from fairly
`traded imports. Before taking such a
`step, we urge the Commission to consider carefully the risks of significant, negative, and unintended
`consequences for consumers, competition, and job-producing investments in the United States that
`could result if the petitioner, the Whirlpool Corporation, secures the relief it seeks.
`
`In this investigation, Whirlpool seeks protection from fairly traded imports of washers.
`Whirlpool is seeking this protection even though it remains profitable, and even though the U.S.
`residential washing machines market has grown by 35 percent over the past five years. Moreover,
`Whirlpool has brought a petition that seeks to restrict imports of large residential washers and select
`parts into the U.S. market. This appears to be a different position than Whirlpool took during the 2006
`acquisition of its largest rival, Maytag Corporation, when it told federal regulators that competition
`from Samsung and LG was critical to preventing the expanded Whirlpool from controlling a
`substantial portion o f t he domestic washers market.
`
`Whirlpool's 2006 justification for its Maytag acquisition turned out to be accurate in at least
`one respect. TheU.S. residential washing machine market is now more competitive. U.S. consumers
`benefit from that competition with greater choice of innovative and stylish washers, thanks in large
`part to the emergence of producers like Samsung and LG. New innovations are rapidly coming to
`market, and consumers have access to a broad spectrum of products and brands at differing price
`points.
`
`The thriving U.S. washers market also is spurring additional direct foreign investment in new
`American manufacturing capabilities, as evidenced by Samsung's recent announcement that it will
`open a state-of-the-art manufacturing facility in Newberry, South Carolina. Once online by 2018,
`Samsung's new facility will manufacture washing machines and other residential appliances for the
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`U.S. market. Samsung estimates that it will invest roughly $400 million in the local economy through
`this facility and will create approximately 1,000 new jobs in the first two years. If Whirlpool succeeds
`in blocking Samsung's parts imports, this expansion could be jeopardized.
`
`Unfortunately, the 201 petition invites undue risks in the existing residential washers market
`that could reduce consumer choice, curb innovation, and jeopardize the expansion of a growing
`domestic manufacturing workforce. If this case were to reach the President's desk, the President
`would be faced with deciding whether to impose potentially harmful trade remedies. The Commission
`should carefully consider these negative impacts as it pursues this investigation.
`
`Sincerely,
`
`Ralph No#man
`Member of Congress
`
`Leonard Lance
`Member of Congress
`
`Albio Sires
`Member of Co/fgress
`
`Bill Pascrell, Jr.
`Member of Congress
`
`)sh (jpottheimer
`/lembei ofConmess
`
`Michael T. McCaul
`Member of Congress
`
`Cc:
`The Honorable David S. Johanson, Vice Chairman, U.S. International Trade Commission
`The Honorable Irving A. Williamson, Commissioner, U.S. International Trade Commission
`The Honorable Meredith M. Broadbent, Commissioner, U.S. International Trade Commission
`The Honorable Robert Lighthizer, U.S. Trade Representative, Executive Office o f t he President
`The Honorable Gary Cohn, Chairman, National Economic Council, Executive Office ofthe President
`The Honorable Wilbur Ross, Secretary, U.S. Department of Commerce
`The Honorable Kevin Brady, Chairman, House Committee on Ways and Means
`The Honorable Richard Neal, Ranking Member, House Committee on Ways and Means
`The Honorable Orrin Hatch, Chairman, Senate Committee on Finance
`The Honorable Ron Wyden, Ranking Member, Senate Committee on Finance
`
`