Free Trade Should be Fair Trade

Statement

International trade opens new markets for U.S. products and supports good-paying jobs in the United States. Likewise, international trade presents goods and services to U.S. employers and consumers that fuel commerce and choice. I push for new trade agreements, like the pending agreements with Korea, Colombia, and Panama, to present new opportunities for U.S. farmers, manufacturers, and the services industry, including energy, financial and insurance firms.

Trade is supposed to be a two-way street. But sometimes a U.S. company is harmed by the improper actions of trade partners under international rules. A company based in another country might flood the U.S. market with products that are unfairly subsidized by their governments and whose price tags for consumers are artificially low. In those situations, the U.S. company has remedies at its disposal. The Whirlpool Corp. is using those remedies to fight what it sees as inappropriate competition from Korea and Mexico on certain refrigerators sold in the United States.

In March, Whirlpool petitioned the U.S. International Trade Commission for an investigation of the sale of refrigerators from Korean companies Samsung Electronics and LG Electronics in the United States at an inappropriate discount. Whirlpool alleged that the companies have received substantial unfair subsidies from the Korean government in the past few years, injuring U.S.-based producers as a result.

So far, the trade commission has ruled in favor of Whirlpool, saying there is a "reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of bottom mount combination refrigerator-freezers from Korea that are allegedly subsidized and from Korea and Mexico that are allegedly sold in the United States at less than fair value."

The trade commission and the U.S. Department of Commerce agreed to continue their investigation. If they determine definitively that Korea and Mexico have sold unfairly subsidized products at inappropriately low prices in the United States, they could impose tariffs to make up for the unfair practices. Determinations are expected later this year.

This week, I wrote to the Commerce secretary and asked him to give all due consideration to Whirlpool's case. I didn't take a position, but the evidence looks strong on Whirlpool's side.

U.S. industry can compete with any industry in the world if the playing field is fair. American companies have the backing and the resources of the U.S. government behind them in trade disputes. Companies should assert themselves against underhanded practices from other countries.

Whirlpool has 23,500 employees in the United States, including 2,200 employees in Iowa. That includes its Amana manufacturing operations and product development center, its North Liberty distribution center, and its Newton parts manufacturing operation. It's good to see a fight under way on their behalf.

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